IDEAYA Biosciences, Inc. (IDYA) Income Statement

The extreme revenue spike in 2025Q3, followed by a collapse to $10.9 million in 2025Q4 and $8.9 million in 2026Q2, underscores the lumpy nature of collaboration income. This pattern suggests that growth is not organic or sustainable but dependent on discrete partnership events, making forward revenue projections highly uncertain. Investors should monitor the frequency and size of future milestones to assess whether the company can generate consistent top-line growth.

The near-100% gross margin is an accounting artifact of collaboration revenue, which carries negligible COGS, but it does not translate into profitability. Operating margins have been consistently negative, ranging from -8.7% to -20.6% over the past year, indicating that the company's cost structure is dominated by R&D and SG&A. This disparity suggests that gross margin is not a meaningful indicator of underlying profitability for this pre-commercial biotech.

The company's operating leverage is negative, with R&D expenses rising steadily from $42.8 million in 2024Q1 to $108.7 million in 2026Q2, while revenue has not kept pace outside of milestone quarters. This indicates that IDEAYA is intentionally scaling its clinical pipeline, but the lack of recurring revenue means operating losses are widening. The trend suggests that the company is prioritizing clinical advancement over near-term cost efficiency, which may be appropriate for a development-stage firm but heightens cash burn.

The cost structure is heavily weighted toward R&D, which is typical for a clinical-stage biotech but raises concerns about expense discipline. R&D spending has more than doubled from $42.8 million in 2024Q1 to $108.7 million in 2026Q2, reflecting the expansion of multiple clinical programs. SG&A has also grown steadily, suggesting increased corporate overhead, but the primary driver of cash burn remains the clinical pipeline. Investors should monitor whether R&D intensity translates into successful data readouts that justify the escalating costs.

The 2025Q3 quarter represents a clear inflection point, as it was the only period in the last ten quarters with positive operating and net income. This was likely due to a significant upfront or milestone payment from a partnership, which masked the underlying operating losses. The subsequent quarters reverted to losses, indicating that the inflection was not a structural change but a one-time event. This highlights the company's dependence on external partnerships for financial viability and the need for sustained clinical progress to achieve long-term profitability.