ALX Oncology Holdings Inc. reported its fourth‑quarter and full‑year 2025 financial results, posting a net loss of $22.8 million for the quarter and $101.7 million for the year, a 22% and 24% improvement respectively over the same periods in 2024. The company’s earnings per share were $‑0.42, missing the consensus estimate of $‑0.37 by $0.05. Revenue for the quarter and the year was $0, in line with expectations for a pre‑revenue, clinical‑stage company.
The EPS miss reflects the company’s continued heavy investment in clinical development, even as it has reduced research and development expenses to $77 million in 2025 from $116.4 million in 2024. The reduction in R&D spending helped narrow the net loss, but the high cost of advancing two lead candidates—evorpacept and ALX2004—kept earnings negative. The company’s guidance indicates that the $150 million registered equity offering, of which $140.4 million was net proceeds, will extend its cash runway through the first half of 2028, providing a financial cushion for upcoming clinical milestones.
Revenue remained flat at $0, meeting the consensus estimate of $0. As a pre‑revenue company, ALX Oncology’s focus is on clinical progress rather than sales, and the zero revenue figure is typical for its stage of development. The company’s guidance for the next fiscal year remains unchanged, with no new revenue projections announced.
The company’s net loss narrowed from $134.9 million in 2024 to $101.7 million in 2025, a 24% improvement, driven largely by the reduction in R&D expenses and the cash infusion from the equity offering. The extended runway to mid‑2028 gives management flexibility to pursue key data readouts for evorpacept and ALX2004 without immediate liquidity pressure.
Management highlighted progress in both clinical programs. CEO Jason Lettmann said, “Through strong execution of our targeted clinical development strategy in 2025, we have positioned ourselves to achieve multiple significant catalysts in the clinical programs for evorpacept and ALX2004, two potentially best‑ and first‑in‑class agents, in the coming 12 to 18 months.” Chief Medical Officer Barbara Klencke added, “These new findings support a CD47‑dependent, HER2‑driven biology for evorpacept. Going forward, we believe that a biomarker‑driven approach incorporating CD47 expression may optimize patient selection for evorpacept combinations with HER2‑targeted agents.”
Investors reacted with a mixed response. The EPS miss prompted initial pre‑market concerns, but optimism around the equity raise and the company’s clinical progress tempered the reaction, leading to a balanced overall sentiment among market participants.
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