[Management View]
Seres Therapeutics reported a notable shift to positive net income from continuing operations, driven by the gain on the sale of Voust. The company is focused on advancing SER-155, its lead investigational oral live biotherapeutic for the prevention of bloodstream infections in adults undergoing allo HSCT, into a Phase II study. Management emphasized the potential of SER-155 to transform patient outcomes and highlighted the significant commercial opportunity across various medically vulnerable populations.

[Outlook]
Seres expects to fund operations through 2026 based on its current cash position and operating plans. The company anticipates obtaining meaningful placebo-controlled clinical results from a planned interim analysis within twelve months of study initiation, contingent on securing additional capital. Significant near-term pipeline news flow is anticipated from both the SER-155 Phase II interim analysis and the Memorial Sloan Kettering investigator-sponsored study addressing iREC with expected readout in early 2026.

[Financial Performance]
Seres reported net income from continuing operations of $8.2 million in Q3 2025, reversing a $51 million net loss in 2024. This was driven by a $27.2 million gain on the sale of Voust, including a $25 million payment from Nestlé, which offset a $22.5 million loss from operations. R&D expenses were $12.6 million, down from $16.5 million in 2024, reflecting reduced personnel expenses, platform investment, and clinical spending after SER-155 Phase Ib completion. G&A expenses were $9.5 million versus $12.7 million in Q3 2024, driven predominantly by lowered personnel and IT-related costs. Cash and cash equivalents stood at $47.6 million as of September 30, 2025.

[Q&A Highlights]
Question 1: You have some really interesting commentary on this IST at Sloan Kettering for immune checkpoint-related enterocolitis. I wonder if you could just talk to us a little bit more about anything you can tell us regarding the study design. And also how you view the commercial opportunity there.

Answer: MSK initiated this study and we're pleased to be looking at one of what could be potentially many different applications for SER-155. To elaborate a little bit more on the design of the study, iREC is one of the most frequent and severe immune-related adverse events that patients experience in immune checkpoint inhibitor therapy. Up to 50% of patients can experience iREC. The study is a small Phase I open-label study. The readout from this study is expected to occur in early 2026 and will be comprised primarily of safety data, drug pharmacology data, and diarrhea symptom response data. Our hope is that we could see an impact on the diarrhea symptoms without needing additional immunosuppressive therapy medications. This would be a very meaningful finding. Regarding the commercial opportunity, iREC is a very common side effect of a very commonly used class of medications across many tumor types in oncology. Trudanet sales last year were almost $30 billion, highlighting the large market scope for iREC indications.

Question 2: Maybe just a couple on the potential partnership deals. Can you talk a little bit about, you know, how much capital you would need to get to that initial SER-155 data, within the twelve months of study initiation. And then I guess secondly, anything that you can do to kinda convey confidence that you'll be able to achieve something within the next six months within your targeted cash runway. And then maybe last, if you're able to comment there, obviously, was a report during the quarter that Nestle made a takeout offer. Are you able to comment on if that was authentic and maybe why that wasn't an appropriate choice at that time?

Answer: Importantly, that interim analysis twelve months after the study start will allow us a capital-efficient and timely recovery of data. As to the specific capital needs, we haven't guided on that other than to say that the timing of that and the way that we've designed the study, we do feel that we'll get meaningful safety and efficacy data given the patient count in this study at that IA point. We continue to make obtaining partnerships or another source of capital as our highest priority for SER-155, our lead candidate. So we are continuing to have interactions and looking at a variety of different sources from which that capital could be obtained. With respect to your last question, we just make it a practice not to comment on rumors.

[Sentiment Analysis]
The tone of the management was optimistic and focused on strategic priorities, emphasizing the potential of SER-155 and the importance of securing additional capital. Analysts showed interest in the clinical progress and commercial opportunities, particularly regarding the investigator-sponsored study at Sloan Kettering and potential partnership deals.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|---------------------------|---------------|---------------|
| Net Income from Operations| $8.2 million | -$51 million |
| R&D Expenses | $12.6 million | $16.5 million |
| G&A Expenses | $9.5 million | $12.7 million |
| Cash and Cash Equivalents | $47.6 million | N/A |

[Risks and Concerns]
Funding-Dependent Clinical Progression: Initiation of the SER-155 Phase II study is contingent on securing additional capital. Workforce Reduction: The company reduced its workforce by approximately 25% during Q3 2025 as a cost-saving measure to extend its cash runway, indicating near-term operating constraints.

[Final Takeaway]
Seres Therapeutics demonstrated a significant turnaround in financial performance, driven by strategic asset sales and cost reduction measures. The company is focused on advancing its lead candidate, SER-155, into Phase II trials, contingent on securing additional funding. The management's emphasis on strategic partnerships and the promising clinical data from ongoing studies highlight the potential for future growth and value creation. Investors should monitor the company's progress in securing capital and advancing its clinical pipeline, particularly the SER-155 program.