Foghorn Therapeutics (FHTX) has posted its FY 2025 results with Q4 revenue of US$9.2 million and a basic EPS loss of US$0.34, alongside a trailing twelve month revenue base of US$30.9 million and EPS of US$1.18 in losses. Over recent quarters the company has seen revenue move from US$5.9 million in Q1 2025 to US$9.2 million in Q4, while quarterly EPS losses have ranged between US$0.25 and US$0.34. This sets the scene for investors to weigh the revenue run rate against ongoing net losses. Overall, margins remain firmly in loss making territory, so the key question from this print is whether the current revenue profile is enough to eventually narrow those losses.

With the numbers on the table, the next step is to see how this revenue growth and loss profile lines up with the main market narratives around Foghorn, and where the latest results might support or challenge those views.

US$30.9 million trailing revenue against US$74.3 million annual loss

• Over the last twelve months to Q4 FY 2025, Foghorn generated US$30.9 million in revenue while recording a net loss of US$74.3 million and a basic EPS loss of US$1.18.
• General market opinion often highlights the forecast 27.19% annual revenue growth, and this data shows why that view focuses on the top line, but the current loss level is still heavy:
  • On a quarterly basis, revenue moved from US$5.95 million in Q1 FY 2025 to US$9.25 million in Q4, yet net losses stayed large at US$21.66 million in Q4 versus US$18.83 million in Q1.
  • With trailing revenue of US$30.9 million and a trailing net loss of US$74.3 million, the business is still spending far more than it is bringing in. This keeps profitability concerns front and center even as growth forecasts remain strong.

Curious how numbers like Foghorn’s growing revenue base and ongoing losses shape real investor stories and debates? Curious how numbers become stories that shape markets? Explore Community Narratives

Losses per share steady around US$0.25 to US$0.34 each quarter

• Across FY 2025, basic EPS losses ranged from US$0.25 in Q3 to US$0.34 in Q4, with Q1 and Q2 also in a similar band at roughly US$0.30 per share.
• Bears often focus on the idea that Foghorn is unprofitable and forecast to remain unprofitable over the next three years, and the EPS pattern here reinforces that concern:
  • Net losses per quarter stayed between US$15.85 million and US$21.66 million in FY 2025, so there is no sign in these figures of earnings moving toward break even.
  • The trailing twelve month EPS loss of US$1.18, compared with US$1.58 a year earlier, still leaves shareholders facing a sizeable per share loss despite the revenue base growing over that same horizon.

Skeptics point to these recurring losses and ask what would need to change before the story shifts. 🐻 Foghorn Therapeutics Bear Case

13.5x P/S and negative equity highlight balance sheet pressure

• The stock trades on a P/S of 13.5x compared with a peer average of 11.6x and a US biotech industry average of 12.4x, while the company also reports negative shareholders’ equity.
• Bullish investors often lean on the combination of faster expected revenue growth and analyst upside, and the valuation and balance sheet figures here both support and challenge that stance:
  • Revenue is forecast to grow at 27.19% per year versus 10.4% for the broader US market, which helps explain why the shares sit at a premium P/S multiple.
  • At the same time, negative equity and ongoing annual losses of US$74.3 million mean that, even with analysts expecting the share price to move closer to an implied target of US$11.44 from the current US$4.92, the valuation is being asked to carry both growth expectations and clear financial risks.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Foghorn Therapeutics's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this mix of growth hopes and ongoing losses feels finely balanced, it is a good time to review the numbers yourself and weigh the trade offs. You can see both sides of the story in our breakdown of 2 key rewards and 3 important warning signs.

See What Else Is Out There

Foghorn’s heavy annual loss of US$74.3 million, negative equity and steady quarterly EPS losses highlight meaningful balance sheet strain and funding risk for shareholders.

If that level of pressure feels uncomfortable, shift your focus toward companies with stronger cushions by checking out our solid balance sheet and fundamentals stocks screener (41 results) that can better handle tough periods.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.