Zymeworks (NASDAQ:ZYME) Announces Earnings Results, Misses Estimates By $0.20 EPS

Zymeworks (NASDAQ:ZYME) announced its quarterly earnings data on Monday. The company reported ($0.55) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.35) by ($0.20), FiscalAI reports. Zymeworks had a negative return on equity of 24.85% and a negative net margin of 76.56%.The business had revenue of $2.52 million during the quarter, compared to analysts’ expectations of $21.78 million. During the same quarter last year, the company posted ($0.31) EPS. Zymeworks’s revenue for the quarter was down 91.9% compared to the same quarter last year.

Here are the key takeaways from Zymeworks’ conference call:

• Zymeworks highlighted strong phase 3 HERIZON‑GEA‑01 results for zanidatamab (median PFS >1 year; median OS >2 years) and said Jazz expects to submit a U.S. supplemental BLA in Q1 2026 with potential approval/launch in H2 2026, supporting broader commercial upside.
• The company closed a unique $250 million non‑recourse royalty‑backed note with Royalty Pharma that securitizes only 30% of Ziihera royalties (Zymeworks retains 70%), providing low‑cost, non‑dilutive capital to fund share buybacks and selective acquisitions.
• Zymeworks stands to receive substantial future payments tied to Ziihera — up to about $1.5 billion in regulatory and commercial milestones plus tiered royalties (Jazz: 10%–high teens up to $2B then 20%; BeiGene: mid‑single to mid‑double up to $1B then 19.5%) — representing material upside if approvals and sales materialize.
• FY2025 results showed revenue growth to $106M and a narrower net loss ($81.1M) with $270.6M cash on hand and management forecasting a cash runway beyond 2028 assuming the $440M GEA milestone and the royalty note, but that runway and upside remain contingent on partner regulatory approvals and future milestones.

Zymeworks Stock Performance

NASDAQ:ZYME opened at $24.45 on Wednesday. The stock has a 50-day simple moving average of $23.85 and a two-hundred day simple moving average of $20.95. The firm has a market capitalization of $1.83 billion, a PE ratio of -22.64 and a beta of 1.23. Zymeworks has a 52-week low of $9.03 and a 52-week high of $28.49.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on ZYME shares. Leerink Partners boosted their price target on Zymeworks from $52.00 to $58.00 and gave the stock an “outperform” rating in a research note on Tuesday. B. Riley Financial restated a “buy” rating and issued a $40.00 target price (up from $30.00) on shares of Zymeworks in a report on Friday, November 21st. Zacks Research downgraded shares of Zymeworks from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 26th. Wall Street Zen cut Zymeworks from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Finally, Citigroup began coverage on Zymeworks in a research note on Wednesday, December 3rd. They issued an “outperform” rating on the stock. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $35.70.

More Zymeworks News

Here are the key news stories impacting Zymeworks this week:

• Positive Sentiment: Leerink Partners raised its price target to $58 and maintained an “outperform” rating, supporting upside expectations. Leerink Partners price target raise
• Positive Sentiment: Stifel Nicolaus increased its target to $47 and reiterated a “buy” rating, signaling strong analyst conviction. Stifel Nicolaus price target raise
• Positive Sentiment: Zymeworks entered a $250 million agreement with Royalty Pharma, converting clinical/royalty value into near-term funding and de‑risking parts of the pipeline. Zymeworks and Royalty Pharma enter into $250 million deal
• Positive Sentiment: Management outlined roughly $1.5B in milestone potential and signaled a milestone‑driven expansion through 2028, which supports future cash flow expectations tied to partnered assets. Zymeworks outlines $1.5B milestone potential
• Positive Sentiment: Company commentary and coverage highlight zanidatamab results as the basis for pivoting toward a royalty‑focused model, which investors view as a lower‑risk, capital‑efficient path. Zymeworks Leans On Zanidatamab Results To Build Royalty Focused Model
• Neutral Sentiment: Analysts’ consensus sits at an average “Moderate Buy,” reflecting mixed but generally constructive analyst positioning. Analysts give Zymeworks a Moderate Buy
• Negative Sentiment: Q4 2025 results disappointed: Zymeworks reported a larger loss (‑$0.55 EPS) and revenue far below estimates (material year‑over‑year decline), underscoring near‑term operating weakness and negative margins. Zymeworks Q4 loss lags revenue estimates

Insider Buying and Selling

In other news, CEO Kenneth Galbraith sold 54,343 shares of Zymeworks stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $25.10, for a total transaction of $1,364,009.30. Following the transaction, the chief executive officer directly owned 158,286 shares of the company’s stock, valued at $3,972,978.60. The trade was a 25.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul Andrew Moore sold 20,110 shares of Zymeworks stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $25.10, for a total transaction of $504,761.00. Following the transaction, the insider directly owned 31,212 shares in the company, valued at $783,421.20. This represents a 39.18% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 187,933 shares of company stock valued at $4,673,716 in the last 90 days. Corporate insiders own 33.51% of the company’s stock.

Institutional Trading of Zymeworks

Institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd purchased a new position in Zymeworks in the 4th quarter worth approximately $55,000. Quarry LP bought a new position in shares of Zymeworks during the 3rd quarter valued at approximately $50,000. Tower Research Capital LLC TRC lifted its position in Zymeworks by 29.6% during the second quarter. Tower Research Capital LLC TRC now owns 4,947 shares of the company’s stock valued at $62,000 after purchasing an additional 1,131 shares during the last quarter. Brooklyn Investment Group bought a new position in shares of Zymeworks in the 4th quarter valued at about $214,000. Finally, VARCOV Co. bought a new stake in shares of Zymeworks in the 4th quarter valued at approximately $259,000. Hedge funds and other institutional investors own 92.89% of the company’s stock.

Zymeworks Company Profile

Zymeworks Inc is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. The company specializes in engineered antibody and protein therapeutics designed to address a range of unmet medical needs in oncology and other serious diseases. Through its proprietary platforms, Zymeworks aims to create novel bispecific and multispecific molecules that can simultaneously engage multiple targets and recruit immune effector functions to enhance potency and specificity.

At the core of Zymeworks’ innovation is its Azymetric™ bispecific antibody platform, which enables the design of asymmetrical bispecific antibodies with controlled assembly and high stability.