Shares of Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) experienced a sharp 40.07% decline in after-hours trading on Thursday, following the release of disappointing first-quarter 2025 financial results and revised revenue guidance.

The clinical-stage biotechnology company reported a quarterly loss of $0.36 per share, significantly missing the analyst consensus estimate of $0.24 per share. Despite showing a 14.29% improvement from the $0.42 per share loss in the same period last year, the wider-than-expected loss rattled investors. Revenue for the quarter came in at $49.32 million, falling short of analyst expectations of $81.70 million by 39.63%. However, this still represented a substantial increase from the $715,000 reported in the same quarter of the previous year.

Adding to investor concerns, Iovance Biotherapeutics revised its fiscal year 2025 total product revenue guidance to a range of $250 million to $300 million. This adjustment likely contributed to the severe stock price reaction, as markets often respond negatively to lowered future expectations. The company's net loss for the quarter stood at $116.163 million, with an operating loss of $121.221 million, underscoring the ongoing challenges in its path to profitability. As biotechnology investors closely monitor cash burn rates and paths to market for novel therapies, these results appear to have shaken confidence in Iovance's near-term prospects.