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…
Earnings analysis · 10-K
DAWN earnings analysis
Filed April 17, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.21
What stood out
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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").
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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%).
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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").
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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").
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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").
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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").
What to watch
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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).
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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)).
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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.
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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).
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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).
Management's outlook
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).
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.