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Revolution Medicines, Inc. (RVMD)
:RVMD
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Revolution Medicines
(NASDAQ:RVMD)
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Rating:52Neutral
Price Target:―
Revolution Medicines has a moderate overall score primarily due to financial challenges such as declining revenues and persistent net losses, common in biotech firms. The technical analysis indicates a bearish trend, and the valuation remains unattractive with a negative P/E ratio. However, the positive strides in the RAS(ON) inhibitor pipeline and strong liquidity position partially offset these challenges, as highlighted in the recent earnings call.
Positive Factors
Strong Financial Position
A robust cash reserve ensures financial stability and supports long-term R&D activities, providing a buffer against operational uncertainties.
Advancements in RAS(ON) Inhibitor Pipeline
Progress in the RAS(ON) inhibitor pipeline strengthens Revolution Medicines' competitive position in precision oncology, potentially leading to future revenue streams.
Strategic Collaborations
Strategic partnerships enhance drug development capabilities and market reach, fostering innovation and potential revenue through shared resources and expertise.
Negative Factors
Declining Revenue
A consistent decline in revenue indicates challenges in monetizing R&D investments, which could impact long-term financial sustainability and growth potential.
Increased Net Loss
Rising net losses reflect escalating operational costs, which may pressure cash reserves and necessitate additional funding, impacting financial health.
Negative Cash Flow
Persistent negative cash flow highlights difficulties in generating operational cash, potentially limiting investment in R&D and necessitating external financing.
Revolution Medicines (RVMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.87B
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth-100.00%
EPS Growth-44.24%
CountryUS
Employees616
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.61
Shares Outstanding193,319,810
10 Day Avg. Volume2,363,631
30 Day Avg. Volume2,224,127
Financial Highlights & Ratios
PEG Ratio1.69
Price to Book (P/B)3.24
Price to Sales (P/S)0.00
P/FCF Ratio-12.92
Enterprise Value/Market Cap0.60
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-17.76
Enterprise Value/Ebitda-6.90
Forecast
1Y Price Target
$79.76Price Target Upside29.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)-5.36
Revenue Forecast (FY)$5.87M
Revolution Medicines Business Overview & Revenue Model
Company DescriptionRevolution Medicines, Inc. (RVMD) is a biotechnology company that operates in the pharmaceutical sector, focusing on the discovery and development of novel targeted therapies for cancer. The company is particularly known for its precision oncology approach, targeting specific genetic mutations and pathways that drive cancer growth and progression. Revolution Medicines' core products are centered around inhibiting critical signaling pathways, such as the RAS and mTOR pathways, which are implicated in various types of cancers.
How the Company Makes MoneyRevolution Medicines generates revenue primarily through strategic collaborations, research and development partnerships, and milestone payments from other pharmaceutical companies. The company enters into agreements with larger pharmaceutical firms to co-develop and commercialize its drug candidates, often receiving upfront payments, research funding, and future royalties on sales of successfully developed products. Additionally, Revolution Medicines may also benefit from licensing agreements, wherein it grants other companies the rights to use its proprietary technologies or compounds in exchange for licensing fees.
Revolution Medicines Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong progress in clinical programs and regulatory achievements for daraxonrasib, as well as a solid financial position supported by strategic partnerships. However, these positive developments were somewhat offset by increased operating expenses and significant net losses.Q3-2025 Updates
Positive Updates
Positive Clinical Progress with Daraxonrasib
Daraxonrasib showed compelling clinical activity in pancreatic cancer, with an objective response rate of 47% as monotherapy and 55% when combined with chemotherapy. Disease control rates were 89% and 90% respectively.
Regulatory Achievements for Daraxonrasib
Daraxonrasib received three special designations from the FDA, including Breakthrough Therapy Status, Orphan Drug Designation, and a Commissioner's National Priority Voucher.
Strong Financial Position
Ended Q3 2025 with $1.93 billion in cash and investments, with an additional $1.75 billion in future committed capital from a partnership with Royalty Pharma.
Expansion and Strengthening of Global Operations
Key appointments across commercialization functions, including new regional leaders in the U.S. and European regions, as well as a new Chief Development Officer.
Promising Developments in Non-Small Cell Lung Cancer
Elironrasib demonstrated a confirmed objective response rate of 42% and a disease control rate of 79% in heavily pretreated non-small cell lung cancer patients.
Negative Updates
Increased Operating Expenses
R&D expenses increased to $262.5 million, up from $151.8 million in the previous year, primarily due to clinical trial-related and manufacturing expenses.
Significant Net Loss
Reported a net loss of $305.2 million for Q3 2025, compared to $156.3 million for the same period in 2024, driven by higher operating expenses.
Company Guidance
During the Q3 2025 earnings call, Revolution Medicines provided several key metrics as part of their guidance. They reiterated their 2025 financial guidance, projecting a full-year GAAP net loss between $1.03 billion and $1.09 billion, which includes estimated non-cash stock-based compensation expense between $115 million and $130 million. Research and development (R&D) expenses for Q3 2025 were reported at $262.5 million, a significant increase from $151.8 million in Q3 2024, primarily due to clinical trial-related expenses and manufacturing costs for their three clinical-stage programs, particularly daraxonrasib. General and administrative (G&A) expenses rose to $52.8 million in Q3 2025 from $24.0 million in Q3 2024, driven by increases in personnel-related expenses and commercial preparation activities. Revolution Medicines ended Q3 with $1.93 billion in cash and investments, including a $250 million royalty monetization tranche from Royalty Pharma and an additional $1.75 billion in future committed capital under the arrangement.Revolution Medicines Financial Statement Overview
Summary
Revolution Medicines faces significant financial challenges with declining revenues and persistent losses, common in the biotechnology industry due to high R&D costs and long product development cycles. While the balance sheet reflects strong liquidity and low leverage, the cash flow statement highlights the need for efficient cash management to sustain operations.Income Statement
Revolution Medicines shows a declining revenue trend over the past five years, with a significant drop to zero revenue in the most recent year. Margins, including gross profit and net income, are negative, reflecting substantial losses and indicating challenges in achieving profitability.45
Neutral
Balance Sheet
The company has maintained a strong cash position with negative net debt, suggesting adequate liquidity. However, the consistent high levels of net losses are concerning. The debt-to-equity ratio remains low, indicating conservative leverage, which is positive for financial stability.60
Neutral
Cash Flow
Cash flows remain negative with increasing operating and free cash flow deficits, suggesting ongoing challenges in generating positive cash flow from operations. However, substantial financing activities have bolstered cash reserves, which can support operations in the short term.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 11.58M | 35.38M | 29.39M | 42.98M |
| Gross Profit | -397.65M | -592.23M | -399.66M | -217.69M | -157.56M | -89.27M |
| EBITDA | -1.02B | -589.02M | -456.68M | -248.62M | -179.75M | -101.91M |
| Net Income | -960.98M | -600.09M | -436.37M | -248.71M | -187.09M | -108.16M |
Balance Sheet | ||||||
| Total Assets | 2.25B | 2.56B | 2.06B | 811.93M | 737.99M | 567.40M |
| Cash, Cash Equivalents and Short-Term Investments | 1.93B | 2.29B | 1.85B | 644.94M | 577.05M | 440.74M |
| Total Debt | 158.46M | 135.84M | 87.94M | 64.20M | 66.63M | 32.66M |
| Total Liabilities | 655.02M | 293.10M | 235.51M | 126.74M | 135.42M | 92.72M |
| Stockholders Equity | 1.60B | 2.27B | 1.83B | 685.19M | 602.57M | 474.68M |
Cash Flow | ||||||
| Free Cash Flow | -777.08M | -567.74M | -358.30M | -235.22M | -153.71M | -103.00M |
| Operating Cash Flow | -761.79M | -557.44M | -350.57M | -224.40M | -147.18M | -100.06M |
| Investing Cash Flow | -349.73M | -554.39M | -342.60M | -24.12M | -142.12M | -234.23M |
| Financing Cash Flow | 1.13B | 959.41M | 1.23B | 301.43M | 294.18M | 422.78M |
Revolution Medicines Technical Analysis
Positive
61.38
Price Trends
48.63
Positive
43.00
Positive
41.10
Positive
Market Momentum
3.67
Negative
78.83
Negative
77.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVMD, the sentiment is Positive. The current price of 61.38 is above the 20-day moving average (MA) of 55.48, above the 50-day MA of 48.63, and above the 200-day MA of 41.10, indicating a bullish trend. The MACD of 3.67 indicates Negative momentum. The RSI at 78.83 is Negative, neither overbought nor oversold. The STOCH value of 77.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RVMD.
Revolution Medicines Risk Analysis
Revolution Medicines disclosed 83 risk factors in its most recent earnings report. Revolution Medicines reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Revolution Medicines Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.06B | 83.48 | 16.47% | ― | 17.92% | -26.13% | |
57 Neutral | $12.00B | ― | -39.99% | ― | 20.39% | 34.00% | |
52 Neutral | $11.87B | ― | -60.76% | ― | -100.00% | -44.24% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $5.92B | ― | -29.71% | ― | 74.86% | -13.23% | |
50 Neutral | ― | ― | ― | ― | 99.19% | 48.43% | |
50 Neutral | $5.28B | ― | -20.83% | ― | ― | -5.21% |
* Healthcare Sector Average
RVMD
Revolution Medicines
61.01
0.57
0.94%
CORT
Corcept Therapeutics
73.72
14.12
23.69%
IONS
Ionis Pharmaceuticals
73.55
34.36
87.68%
BPMC
Blueprint Medicines
129.46
28.63
28.39%
LEGN
Legend Biotech
31.80
-8.23
-20.56%
PCVX
Vaxcyte
41.65
-65.02
-60.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.