ADC Therapeutics SA (ADCT)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 revenue was $16.43M, driven by net product revenues of $15.75M; GAAP EPS was -$0.30 and adjusted EPS was -$0.19, reflecting lower R&D and G&A expenses year over year .
• EPS beat S&P Global consensus (-$0.36*), while revenue was slightly below consensus ($16.79M*); Q2 saw a revenue beat and slight EPS miss, and Q1 was a clean beat on both metrics (see Estimates Context) *.
• Balance sheet strengthened via a $60M PIPE financing closed in October, implying pro forma cash of ~$292.3M and expected runway into 2028, positioning for LOTIS-7/LOTIS-5 catalysts and commercial investment .
• Near-term catalysts: a LOTIS-7 corporate update before year-end 2025, and LOTIS-5 topline in 1H 2026; publication/compendia inclusion targeted 1H 2027, with IND-enabling completion for PSMA ADC by end-2025 .

Values retrieved from S&P Global*

What Went Well and What Went Wrong

What Went Well

• “The successful completion of our most recent PIPE financing strengthens our balance sheet and provides the resources to further invest in ZYNLONTA… We look forward to multiple upcoming clinical catalysts…” — CEO Ameet Mallik .
• Adjusted total operating expenses fell 12% YoY in Q3 ($45.0M vs $51.2M), and adjusted EPS improved YoY to -$0.19 from -$0.28, evidencing cost discipline .
• Updated FL Phase 2 IIT data: ORR 98.2%, CR 83.6%, 12‑month PFS 93.9%, with safety consistent with ZYNLONTA’s profile ; continued enrollment toward 100 patients .

What Went Wrong

• Product revenue declined to $15.75M from $18.02M YoY due to lower sales volume (partially offset by price and gross-to-net favorability); total revenue fell to $16.43M from $18.46M YoY .
• GAAP net loss remained large at -$41.0M, with significant interest expense ($13.4M) and restructuring/impairment costs incurred during the 2025 restructuring .
• Cash decreased to $234.7M at quarter-end (from $264.6M in Q2), reflecting operating needs prior to the October PIPE; deferred royalty obligation increased to $340.2M .

Financial Results

Income Statement Highlights (Quarterly)

Operating Expenses (Quarterly)

Margins (Quarterly)

Values retrieved from S&P Global*

Cash and Liquidity

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We continue to believe that through expansion into these settings, ZYNLONTA has the potential to reach peak annual revenues of $600 million-$1 billion in the U.S.” — CEO Ameet Mallik .
• “We plan to provide a clinical update on all efficacy-evaluable patients with a minimum of six months of follow-up… before the end of the year.” — CFO Pepe Carmona .
• “The combination [ZYNLONTA + glofitamab] demonstrated clinically meaningful benefit with an ORR of 93.3% and CR of 86.7% across 30 efficacy-evaluable patients.” — CEO Ameet Mallik .
• “The decrease in net loss for the quarter is primarily attributable to lower R&D and G&A expenses.” — CFO Pepe Carmona .

Q&A Highlights

• LOTIS-7 enrollment/data cadence: Management confirmed accelerated enrollment post EHA/ICML; year-end update will include patients with ≥6 months follow-up; target remains ~100 patients .
• Revenue ramp post approvals/compendia: Ramp expected primarily in first two years post-approval/compendia inclusion (targeting 1H 2027 for LOTIS-5 and LOTIS-7 outcomes) .
• Frontline DLBCL: Frontline is a high bar; any pursuit would likely require a partner; focus remains on 2L+ settings for combinations .
• Adoption across settings: LOTIS-7 not purely academic; use expected in academic and sophisticated community centers; LOTIS-5 addresses accessibility where bispecifics are unsuitable/unavailable .
• Share sensitivity and pricing mechanics: Each share point in 2L (~12k patients) or 3L+ (~6k patients) multiplied by 5–6 cycles and net pricing in low-$20k per vial can materially scale revenue; LOTIS-5 could take ZYNLONTA from ~$70M run rate to just over $200M at ~10% 2L share .

Estimates Context

• Q3: EPS beat by ~$0.06 vs consensus; revenue miss by ~$0.37M. Q2: revenue beat by ~$0.98M, EPS miss by ~$0.02. Q1: revenue beat by ~$5.32M, EPS beat by ~$0.04 *.
  Why: Q3 revenue softness tied to lower sales volume, partially offset by price and gross-to-net; EPS improvement driven by lower R&D and G&A and non-GAAP adjustments (share-based comp, interest accretion, restructuring/impairment) .

Values retrieved from S&P Global*

Key Takeaways for Investors

• Near-term stock catalysts: LOTIS-7 corporate update before year-end 2025 and clear 1H 2026 topline for LOTIS-5; compendia/approval pathways targeted 1H 2027 .
• Cash runway into 2028 bolstered by $60M PIPE (pro forma cash ~$292.3M), enabling investment in commercial expansion and pivotal data generation .
• Q3 execution: Adjusted OpEx down 12% YoY and adjusted EPS improved despite lower revenue; cost discipline is translating to better non-GAAP loss metrics .
• Commercial thesis: Dual-path strategy (LOTIS-7 in complex segment, LOTIS-5 in broadly accessible segment) aims to expand patient reach and extend duration of therapy, with management quantifying revenue leverage per share point in 2L/3L+ .
• Indolent lymphomas optionality: Strong FL/MZL IIT data supports potential compendia/regulatory paths; uptake expected to be more pronounced in MZL given higher unmet need and less competition .
• Estimate trajectory: Watch for EPS resilience from OpEx control vs revenue variability; Q3 showed an EPS beat despite revenue softness driven by volume dynamics *.
• Risk monitors: Interest burden and deferred royalty accretion remain material; track restructuring execution and any regulatory feedback, plus adoption trends for bispecific combinations in community settings .

Appendix: Non-GAAP Adjustments and Definitions

• Adjusted EPS and Adjusted Total Operating Expenses exclude share-based compensation, restructuring/impairment, effective interest on term loans, deferred royalty obligation interest/catch-up, and warrant fair value changes, among other significant items; reconciliations provided in Q3 press release .