DAWN earnings analysis
What we found in DAWN's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Day One Biopharmaceuticals announced a definitive merger agreement with Servier on March 6, 2026 and reports improving operating performance through 2025, but remains loss-making and cash flow negative. Quarterly trends show revenue rising to $54.0M and operating loss narrowing to -51.1% in 2025Q4, while the company posted a net loss of $107.322M for 2025. Management used equity repricing and equity plan capacity to retain staff and approved above-target bonuses (110% company performance multiplier) for 2025.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strategic transaction announced (Merger with Servier)
- The company disclosed that on March 6, 2026, Servier Pharmaceuticals LLC and related parties "entered into an Agreement and Plan of Merger" providing for the merger in which the Company will become a wholly owned subsidiary of Servier (filing: "on March 6, 2026, Servier Pharmaceuticals LLC ... entered into an Agreement and Plan of Merger").
- Improving operating performance in 2025
- Operating margin improved through 2025 from -133.5% in 2025Q1 to -51.1% in 2025Q4 while quarterly revenue rose from $31M in 2025Q1 to $54M in 2025Q4 (table: 2025Q1 revenue $31M / op % -133.5%; 2025Q4 revenue $54M / op % -51.1%).
- Company achieved 2025 corporate goals; bonuses paid
- The Compensation Committee approved a company performance multiplier of 110% and paid the CEO an annual bonus of $536,250 for 2025 (filing: "company performance multiplier of 110%"; "Jeremy Bender ... Actual Bonus $536,250").
- Material equity retention action (repricing)
- The board approved an option repricing on October 7, 2025 that reduced Eligible Options’ exercise price to $8.99 as of the Repricing Effective Date (Nov 6, 2025); Dr. Bender held 2,676,134 Eligible Options affected (filing: "the exercise price of all Eligible Options ... was reduced to $8.99"; "Dr. Bender ... held an aggregate of 2,676,134 Eligible Options").
- Public market value and outstanding shares
- The aggregate market value of common equity held by non-affiliates was approximately $567.0 million as of June 30, 2025, and the company reported 103,334,169 shares outstanding as of April 15, 2026 (filing: "approximately $567.0 million" and "The number of shares ... as of April 15, 2026 was 103,334,169").
- Equity plan capacity available / automatic increases
- As of December 31, 2025 there were 5,000,589 shares available under the 2021 EIP (and the reserve "increased automatically by 5,190,514 on January 1, 2026") and 3,240,075 shares available under the 2021 ESPP (and the reserve "increased automatically by 1,038,102 shares on January 1, 2026") (filing: "there were 5,000,589 shares ... under the 2021 EIP"; "there were 3,240,075 shares ... under the 2021 ESPP").
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Transaction / change-of-control costs and acceleration
- The announced merger creates potential change-in-control payments: the table estimates a CEO total payout on a change-of-control qualifying termination of $5,521,209 (filing table: "Total($)" for Jeremy Bender under Change-of-Control = $5,521,209) and up to $4,389,000 for the Head of R&D (Michael Vasconcelles) (filing table: total = $4,389,000).
- Persistent net losses
- The company reported a net loss of $107,322,000 for 2025, following net losses of $95,496,000 in 2024 and $188,917,000 in 2023 (filing: PvP table "Net Income (Loss) ($)" shows 2025: (107,322,000), 2024: (95,496,000), 2023: (188,917,000)).
- Negative and volatile cash flow / burn
- Free cash flow was significantly negative across 2025 quarters: -$59M in 2025Q1, -$25M in 2025Q2, -$6M in 2025Q3 and -$14M in 2025Q4 (quarterly table: FCF -$59M, -$25M, -$6M, -$14M respectively), underscoring ongoing cash consumption despite margin improvement.
- Revenue volatility (quarterly spikes)
- Quarterly revenue has been uneven (e.g., a $94M quarter in 2024Q3 versus $8M in 2024Q2 and $29M in 2024Q4), demonstrating material quarter-to-quarter volatility (quarterly table: 2024Q2 $8M; 2024Q3 $94M; 2024Q4 $29M).
- Governance / employee morale risk from option repricing
- The October 7, 2025 repricing reduced exercise prices to $8.99 for Eligible Options (Repricing Effective Date Nov 6, 2025), affecting large option pools (e.g., original exercise prices ranged up to $23.41 and many insiders held millions of Eligible Options) which could create shareholder governance concerns (filing: "original exercise prices ranging from $11.87 to $23.41" and Eligible Options counts cited for NEOs).
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.21
- Gross margin
- 88.7%
- Operating margin
- -51.1%
What they said about what is next.
The 10-K/A does not provide numeric annual financial guidance; the MD&A/Compensation sections discuss 2026 only qualitatively. Annual outlook and numeric guidance are deferred to the company’s earnings press release and call (no explicit revenue or EPS guidance in this filing).
The filing reads about the same as the one before it.
What came before.
- 10-K · February 24, 2026
- Day One (DAWN) converted to a commercial-stage oncology company with FDA approval and U.S. launch of OJEMDA (tovorafenib) and supportive long‑term FIREFLY‑1 data (ORR 53%, median DOR 19.4 months, median PFS 16.6…
- 10-Q · November 4, 2025
- Day One reported total revenue of $39.8M in 3Q25, down vs $93.8M in 3Q24 driven by a drop in license revenue; product sales increased to $38.5M. The company posted a loss from operations of $24.3M (operating margin…
- 10-Q · August 5, 2025
- Revenue grew materially as OJEMDA commercialization scaled: total revenue for Q2 2025 was $33,908,000 vs $8,192,000 in Q2 2024. Operating loss narrowed to $(34,974,000) from $(114,807,000) a year earlier, but net loss…
- 10-Q · May 6, 2025
- Day One reported first-quarter 2025 total revenue of $30.761M (product revenue $30.503M) following the commercial launch of OJEMDA, with a strong gross margin (~90.6%) but a continued operating loss of $41.067M and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing DAWN makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever