Shares of Day One Biopharmaceuticals Inc. (NASDAQ: DAWN) tumbled 11.34% in after-hours trading on Tuesday, despite the company reporting better-than-expected earnings per share for the second quarter of 2025. The sharp decline highlights investors' concerns over missed revenue targets and ongoing net losses.
Day One reported a quarterly loss of $(0.29) per share, surpassing analyst expectations of $(0.35) by 17.14%. However, this still represents a significant increase in losses compared to the same period last year when the company reported a loss of $(0.05) per share. More importantly, the biopharmaceutical firm's quarterly sales of $33.908 million fell short of the analyst consensus estimate of $35.926 million by 5.62%, despite showing a substantial year-over-year increase of 313.92%.
The company's net income for the quarter remained negative at $30.322 million, raising concerns about its path to profitability. While Day One provided guidance for its flagship product Ojemda, projecting full-year 2025 net product revenue between $140 to $150 million, it seems the market was looking for stronger overall performance and a clearer route to positive earnings. The after-hours plunge suggests that investors are reassessing the company's growth trajectory and financial health in light of these mixed results.