EyePoint Pharmaceuticals (NASDAQ: EYPT) shares tumbled 5.88% in pre-market trading on Wednesday following the release of disappointing second-quarter financial results. The clinical-stage biopharmaceutical company, focused on developing treatments for serious retinal diseases, reported a significant revenue decline and increased losses.

For Q2 2025, EyePoint posted total revenue of $5.3 million, down 44% from $9.5 million in the same period last year. This fell short of analyst expectations of $6.16 million. The company's net loss widened to $59.4 million, or $0.85 per share, compared to a loss of $30.8 million, or $0.58 per share, in Q2 2024. The increased loss was primarily attributed to higher clinical trial costs for its DURAVYU Phase 3 trials in wet AMD.

Despite the weak quarterly performance, EyePoint highlighted progress in its clinical programs, including completed enrollment for two Phase 3 trials of DURAVYU in wet AMD. The company maintains a strong cash position of $256 million, which it believes will fund operations into 2027, beyond the expected topline data readouts for its key trials in 2026. However, investors appear concerned about the growing losses and revenue decline, leading to the pre-market stock drop.