Xencor Inc. reported a net loss of $91.9 million for the full year 2025, translating to a diluted earnings per share of $(1.24). The loss narrowed sharply from the $232.6 million loss ($3.58 EPS) recorded in 2024, reflecting a significant improvement in the company’s financial performance. Total revenue for the year rose 14.5% to $125.6 million, driven by milestone payments from partners such as Alexion and Incyte. In the fourth quarter, revenue fell 46% to $28.2 million, a decline largely attributable to the lumpy nature of partner‑dependent milestone payments and a lower milestone from the Alexion partnership compared with the prior year’s $52.8 million.
Xencor’s quarterly earnings per share of $(0.09) beat the consensus estimate of $(0.64) by $0.55, a substantial margin that underscores the company’s ability to manage costs and benefit from one‑time gains. The beat was largely driven by a shift from other expense to other income, with gains from marketable equity securities offsetting operating losses and improving the bottom line.
The revenue miss of $6.58 million (28.2 million versus the $21.62 million estimate) reflects the volatility of the partner‑dependent model. While milestone payments from Alexion and Incyte contributed to the year‑to‑year growth, the fourth‑quarter decline was due to a lower milestone from Alexion and a smaller payment from Incyte compared with the same quarter in 2024.
Other income, net, swung from a $1.1 million expense in 2024 to a $2.3 million income in 2025, largely driven by gains from marketable equity securities. This shift helped narrow the net loss and contributed to the EPS beat. R&D expenses increased in both the quarter and the year, indicating continued investment in the XmAb 2+1 bispecific platform and other pipeline candidates, but the company’s cash position remains robust.
Xencor guided that it will end 2026 with $400 million to $430 million in cash, cash equivalents and marketable debt securities, providing a runway through 2028. Management highlighted ongoing clinical development of its XmAb 2+1 bispecific platform and upcoming data presentations in 2026. "Xencor's lead oncology drug candidate is XmAb819, a novel first‑class T‑cell engager that could offer a much‑needed new therapeutic modality for patients with advanced clear cell renal cell carcinoma (ccRCC). Excitement from the clinical community on the initial data from the dose‑escalation study presented during ENA 2025 supports achieving our goal of presenting dose‑expansion data during a medical meeting in the second half of 2026 and our plans to initiate a pivotal study during 2027," said President and CEO Bassil Dahiyat. "Building on the early success in ccRCC, we recently opened additional dose expansion cohorts in other tumor types that have high ENPP3 expression: colorectal cancer, non‑small cell lung cancer and papillary renal cell carcinoma. In 2026, we plan to present additional key clinical data and progress updates as we also advance XmAb541 and our ongoing B‑cell depleting autoimmune programs, respectively. Our TL1A pipeline in inflammatory bowel disease continues to advance, as well. We are making great progress with enrollment in our Phase 2b XENITH‑UC study of XmAb942 and are excited to begin the first‑in‑human study of XmAb412, our novel TL1A x IL23p19 bispecific antibody in the second half of 2026. We are proud of our execution across an evolved clinical pipeline and of the Xencor team's focus on designing proteins to deliver novel medicines for patients."
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