IDEAYA Biosciences (IDYA) Is Up 6.3% After Swing to Quarterly Profitability and Revenue Growth - What's Changed

• IDEAYA Biosciences, Inc. reported earnings for the third quarter and nine months ended September 30, 2025, showing quarterly revenue of US$207.83 million and net income of US$119.24 million, a turnaround from a net loss in the previous year.
• This marks a significant improvement in profitability, with basic earnings per share rising to US$1.35 for the quarter, compared to a loss per share of US$0.60 a year earlier.
• We'll explore how returning to quarterly profitability shapes IDEAYA Biosciences' investment narrative and future business outlook.

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What Is IDEAYA Biosciences' Investment Narrative?

To be a shareholder in IDEAYA Biosciences, you have to believe in the company's ability to turn scientific progress, especially in rare oncology indications, into sustained financial performance. The latest earnings report, highlighting a sharp swing to profitability this quarter, directly challenges prior assumptions that IDEAYA would remain unprofitable for years. This news could spark a re-evaluation of both short-term catalysts, such as upcoming clinical milestones for darovasertib, and key risks like high spending on drug development and the expense premium relative to sales. The impressive quarterly profit was significantly boosted by a licensing deal, and it remains to be seen whether future quarters can maintain this momentum or if earnings volatility will return. For now, while long-term drivers remain rooted in the clinic, this financial surprise has shifted the near-term conversation and could influence sentiment as analysts and investors adjust their expectations.

But with profitability driven by a major one-off deal, earnings visibility is still a risk to watch. Insights from our recent valuation report point to the potential overvaluation of IDEAYA Biosciences shares in the market.

Exploring Other Perspectives

Across the Simply Wall St Community, two investor-driven fair value estimates range from US$48.88 to a very large US$617.80 per share. While some see robust upside, your outlook will depend on how you weigh near-term profit swings against uncertain future growth. Different perspectives can reshape your interpretation of risk and momentum.

Explore 2 other fair value estimates on IDEAYA Biosciences - why the stock might be worth just $48.88!

Build Your Own IDEAYA Biosciences Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your IDEAYA Biosciences research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free IDEAYA Biosciences research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IDEAYA Biosciences' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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