How PSTV (Plus Therapeutics) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a biotech company like PSTV makes money is essential for investors and anyone interested in the business of biotechnology. In this post, we break down PSTV's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick PSTV Overview

PSTV operates as a clinical-stage biopharmaceutical company focused on developing novel therapies for unmet medical needs, particularly in oncology and infectious diseases. Revenue comes primarily from other income sources such as grants, collaborations, or milestone payments typical in biotech pre-commercial stages. With no reported total revenue in Q3 2025, PSTV relies on non-operating income to fund operations amid ongoing R&D investments.

Revenue Breakdown

• Total Revenue (Q3 2025): $0 (+0% YoY)
  • No segment breakdowns available due to zero reported revenue.
  • Growth is powered by strategic partnerships and grant funding, enabling R&D continuity without product sales.

Gross Profit and Margins

• Gross Profit: N/A (N/A gross margin)
  • Cost of Revenue: $0 (+0% YoY)
  • PSTV maintains N/A margins due to pre-revenue biotech model focused on development rather than production.
• Most costs come from operating expenses, with no cost of revenue as there are no sales.

Operating Income and Expenses

• Operating Income: -$5.879M (N/A YoY, N/A margin)
• Operating Expenses: $5.879M (+11.9% YoY)
  • R&D: $2.436M (-14.8% YoY, 0.0% of revenue) — investments in clinical trials and drug development pipelines
  • SG&A: $3.443M (+43.6% YoY, 0.0% of revenue) — general administrative costs including legal, compliance, and overhead for a growing biotech firm
  • PSTV continues to prioritize innovation while expanding operations to advance its pipeline toward potential commercialization.

Net Income

• Pre-Tax Income: N/A (+N/A YoY, N/A margin)
• Income Tax: $0 (N/A effective tax rate)
• Net Income: $4.423M (+53.9% YoY, 0.0% net margin)
• PSTV converts a significant portion of other income into profit due to non-operating gains offsetting operating losses.

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What Drives PSTV's Money Machine?

• Other income: 100% of reported positive flows / $4.423M from "Other" income category
• R&D efficiency: Reduced 14.8% YoY spend signals cost discipline amid clinical progress
• Pipeline investments: Heavy focus on drug candidates in oncology and infectious diseases
• Future growth areas: Commercialization of lead therapies, though not yet profitable

Visualizing PSTV's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant operating losses, other income of $4.423M drives positive net income.

Key Takeaways

• PSTV's money comes overwhelmingly from other income sources like grants or milestones
• High gross and net margins illustrate the power of PSTV's asset-light biotech model
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by clinical pipeline advancements and partnerships

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FAQ About PSTV's Income Statement

1. What is the main source of PSTV's revenue in 2025?

PSTV generates over 100% of its revenue from other income sources such as grants, collaborations, or milestones. No traditional product revenue reported in Q3 2025.

2. How profitable is PSTV in Q3 2025?

PSTV reported net income of $4.423M in Q3 2025, with a net margin of approximately 0.0%, reflecting strong profitability driven by non-operating other income offsetting operating losses.

3. What are the largest expense categories for PSTV?

The biggest expenses on PSTV's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $2.436M in Q3 2025, as PSTV prioritizes clinical trials and pipeline development.

4. Why does the core business operate at a loss?

The core operations, despite generating $0 in revenue, posted an operating loss of over $5.879M in Q3 2025. This is because PSTV aggressively invests in R&D and SG&A for growth, believing these will drive long-term value—even if unprofitable today.

5. How does PSTV's effective tax rate compare to previous years?

PSTV's effective tax rate in Q3 2025 was N/A, consistent with previous years. This low rate is primarily due to operating loss positions and biotech tax incentives.