Scholar Rock Holding Corp (SRRK) shares tumbled 6.68% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results. The clinical-stage biopharmaceutical company reported a wider-than-expected net loss, disappointing investors and triggering a sell-off.

The company announced a net loss of $0.98 per share for Q2, significantly missing the FactSet consensus estimate of a $0.66 loss. This represents a substantial increase from the $0.60 per share loss reported in the same period last year. Scholar Rock's net loss widened to $110 million, with no revenue recorded for the quarter. The deeper losses were primarily attributed to increased research and development costs, which rose by $20 million due to higher drug supply manufacturing expenses and employee-related costs.

Despite the disappointing quarterly results, Scholar Rock emphasized its strong cash position. The company reported approximately $295 million in cash, cash equivalents, and marketable securities as of June 30, 2025. Management expressed confidence that this cash reserve would support its commercial and development programs into 2027. However, this long-term outlook did little to assuage investor concerns in the short term, as reflected in the pre-market stock price decline.