Cash balance & runway
Tempest’s Q2 2025 release shows the company ended the quarter with approximately $45 million in cash and cash equivalents, down from roughly $55 million at the end of Q1 2025. The reduction in cash primarily reflects continued R&D spend on its lead oncology candidates and the settlement of a small portion of its convertible debt. Because the cash burn rate for the quarter was roughly $10 million, management now projects a runway of about 12 months of operating cash, down from the ~15‑month runway that analysts were using at the start of the year.
Trading implications
The modest contraction in cash and the corresponding shortening of the cash runway are not unexpected for a clinical‑stage biotech that is still in heavy development phases. However, the runway still exceeds a year, which keeps the company safely above the typical “<12‑month” liquidity risk threshold that often triggers a short‑sell catalyst for similar small‑cap biotech stocks. Investors should focus on upcoming data readouts (e.g., the Phase 2 readout expected in Q4 2025) and any potential financing announcements (e.g., equity or partnership funding) that could replenish the balance sheet. Technically, the stock has been consolidating near its 50‑day moving average; a breakout above the recent high could signal a rally on the news of a solid cash runway, whereas a break below the 200‑day line would suggest the market is pricing in a potential financing dilution. In the short term, the stock appears poised for a neutral‑to‑slightly‑bullish stance—maintain a watch‑list position and consider buying on dips if the upcoming trial results are favorable, but stay alert for any news that could further strain cash (e.g., unexpected trial setbacks or delays in funding).