Day One Biopharmaceuticals (NASDAQ:DAWN) Shares Gap Down on Disappointing Earnings

Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $12.02, but opened at $10.90. Day One Biopharmaceuticals shares last traded at $11.0480, with a volume of 798,541 shares trading hands.

The company reported ($0.21) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.17) by ($0.04). Day One Biopharmaceuticals had a negative return on equity of 32.05% and a negative net margin of 113.53%.The firm had revenue of $53.72 million during the quarter, compared to the consensus estimate of $49.81 million.

Day One Biopharmaceuticals News Summary

Here are the key news stories impacting Day One Biopharmaceuticals this week:

• Positive Sentiment: Record revenue and revenue beat: Q4 product revenues and full‑year receipts accelerated (Q4 net product revenues reported at $52.8M; FY net product revenues $155.4M) and overall Q4 revenue of $53.72M topped analyst estimates. This top‑line strength is the main positive catalyst. Day One Reports Fourth Quarter and Full Year 2025 Financial Results and Reaffirms 2026 Outlook and Revenue Guidance
• Positive Sentiment: Reaffirmed and growth‑oriented 2026 guidance: management reiterated 2026 U.S. net product revenue guidance of $225–$250M and highlighted the Mersana acquisition (adds Emi‑Le into early clinical development), supporting a growth narrative beyond current OJEMDA™ sales. Day One Reports Fourth Quarter and Full Year 2025 Financial Results and Reaffirms 2026 Outlook and Revenue Guidance
• Neutral Sentiment: Investor materials and management commentary available: the earnings slide deck, press release and full earnings call/transcript were posted for deeper diligence — useful for assessing product adoption, gross margin trajectory and commercialization expenses but not immediate market drivers. View Press Release / Slide Deck
• Neutral Sentiment: Transcript coverage: multiple transcripts (Seeking Alpha, InsiderMonkey) provide Q&A details on commercial rollout, supply and competition; these are helpful for modeling but require parsing for any near‑term changes to guidance assumptions. Day One Biopharmaceuticals, Inc. (DAWN) Q4 2025 Earnings Call Transcript
• Negative Sentiment: EPS miss and continued losses: reported EPS was −$0.21, missing consensus (−$0.17); the company still shows negative net margins and ROE, which keeps profitability timelines uncertain and could constrain valuation multiples until quarters of sustained margin improvement arrive. Day One Biopharmaceuticals Q4 2025 Earnings Highlights

Analyst Upgrades and Downgrades

DAWN has been the topic of several research analyst reports. JPMorgan Chase & Co. upped their price objective on Day One Biopharmaceuticals from $26.00 to $27.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Wedbush upped their price target on shares of Day One Biopharmaceuticals from $29.00 to $30.00 and gave the stock an “outperform” rating in a report on Wednesday. Zacks Research raised shares of Day One Biopharmaceuticals from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. HC Wainwright decreased their price objective on shares of Day One Biopharmaceuticals from $25.00 to $22.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Needham & Company LLC dropped their target price on shares of Day One Biopharmaceuticals from $18.00 to $17.00 and set a “buy” rating on the stock in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $26.14.

Insider Buying and Selling at Day One Biopharmaceuticals

In related news, insider Lauren Merendino sold 5,814 shares of Day One Biopharmaceuticals stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $11.60, for a total transaction of $67,442.40. Following the transaction, the insider directly owned 60,157 shares of the company’s stock, valued at $697,821.20. This trade represents a 8.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Adam Dubow sold 6,395 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $11.60, for a total transaction of $74,182.00. Following the completion of the transaction, the insider directly owned 72,694 shares of the company’s stock, valued at $843,250.40. This trade represents a 8.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 36,461 shares of company stock worth $422,948. 6.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in DAWN. AIGH Capital Management LLC purchased a new position in Day One Biopharmaceuticals in the third quarter valued at about $10,719,000. AlphaQuest LLC lifted its position in shares of Day One Biopharmaceuticals by 1,065.6% during the third quarter. AlphaQuest LLC now owns 185,006 shares of the company’s stock valued at $1,304,000 after buying an additional 169,134 shares during the last quarter. Schroder Investment Management Group bought a new stake in shares of Day One Biopharmaceuticals in the 2nd quarter valued at about $1,171,000. Geode Capital Management LLC boosted its holdings in shares of Day One Biopharmaceuticals by 11.2% in the 2nd quarter. Geode Capital Management LLC now owns 1,712,429 shares of the company’s stock valued at $11,132,000 after buying an additional 171,964 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd grew its position in shares of Day One Biopharmaceuticals by 71.7% in the 2nd quarter. Dynamic Technology Lab Private Ltd now owns 83,223 shares of the company’s stock worth $541,000 after buying an additional 34,766 shares during the last quarter. 87.95% of the stock is currently owned by hedge funds and other institutional investors.

Day One Biopharmaceuticals Stock Performance

The firm’s 50 day moving average is $10.63 and its 200 day moving average is $8.74. The stock has a market cap of $1.15 billion, a P/E ratio of -7.29 and a beta of -1.26.

About Day One Biopharmaceuticals

Day One Biopharmaceuticals, Inc (NASDAQ: DAWN) is a clinical-stage biopharmaceutical company focused on the discovery and development of targeted therapies for oncology. The company employs a precision medicine approach, leveraging biomarker-driven strategies to identify patient populations most likely to respond to its investigational compounds. By concentrating on well-validated molecular drivers of cancer, Day One seeks to deliver first-in-class or best-in-class therapies with the potential for meaningful clinical benefit.

The company’s pipeline includes several small-molecule candidates in various stages of development.