VKTX Stock Faces Headwinds After Q3 Disappointment: What's Next for Viking Therapeutics?

Viking Therapeutics stock has struggled to gain momentum following its latest quarterly results, with shares posting a modest 1% gain over the past month—a performance that trails behind broader market indices. As investors reassess the company’s near-term prospects, key questions loom about whether the biotech name can recover or if further weakness awaits.

The Q3 Numbers Tell a Cautionary Tale

The most recent quarter revealed significant operational challenges for Viking. The company posted a loss of $0.81 per share, substantially worse than analyst expectations of $0.70. This represents a marked deterioration from the $0.22 per share loss reported in the prior-year quarter, signaling accelerating cash burn as the company pushes through its development pipeline.

Adding to investor concerns, Viking Therapeutics remains a pre-revenue biotech with no approved medicines currently generating sales. The company’s entire value proposition hinges on successful clinical execution—making quarterly spending patterns and cash management critical metrics for shareholders.

Where the Money Is Going

Research and development expenditures surged to $90.0 million in Q3, a dramatic jump from $22.8 million a year ago. This 295% increase reflects intensified investment in clinical trial operations and manufacturing scale-up for the company’s candidate drugs, alongside higher staffing costs as the organization expands.

On the bright side, general and administrative expenses declined approximately 38% year-over-year to $8.6 million, benefiting from reductions in legal fees, patent costs, and equity compensation charges.

The Cash Position Matters

As of late September 2025, Viking Therapeutics held $715 million in cash, short-term investments, and equivalents—down from $808 million three months prior. While the company maintains adequate liquidity to fund operations, the quarterly burn rate suggests investors should monitor the cash runway closely.

Analyst Sentiment Has Shifted Negative

Since the earnings announcement, the investment community has grown more cautious. Consensus estimates have been revised downward by approximately 19.23%, signaling diminishing confidence in near-term catalysts.

Where Analysts Stand

The company’s VGM composite score sits at F, reflecting poor fundamental metrics on growth prospects. The Momentum Score registers a D, while the Value Score lands at C—placing it in the middle percentile. Overall, these ratings suggest a Hold rating from the Zacks Rank system, implying investors should expect market-level returns over the coming quarters.

The Bottom Line

Viking Therapeutics faces a period of uncertainty as reduced analyst expectations and accelerating cash burn create headwinds for the stock. Without positive clinical trial developments or strategic milestones, expect continued pressure on sentiment and valuation.