Executive Summary

Q3 2025 EPS beat while revenue modestly missed: EPS of $0.34 loss vs S&P Global consensus -$0.41 (beat), revenue $3.26M vs $3.58M est. (miss). Cost discipline continued with lower OpEx and narrower YoY net loss. (Estimates from S&P Global)
Strategic pivot following latozinemab’s Phase 3 failure in FTD-GRN: Alector and GSK will discontinue the OLE/continuation studies; company implemented a ~47% workforce reduction to refocus on highest-priority ABC-enabled programs and extend runway through 2027.
Pipeline highlights: Selected lead ABC-enabled candidates AL137 (anti-amyloid beta) and AL050 (GCase ERT) advancing to IND-enabling; nivisnebart (AL101) Phase 2 in early AD on track for an independent interim analysis in 1H26.
Liquidity: Cash, cash equivalents and investments of $291.1M at 9/30/25; ATM proceeds of ~$14.7M in Sept and ~$5.3M in Oct; management reiterates runway through 2027.
FY25 guidance maintained from Q2: collaboration revenue $13–18M, R&D $130–140M, G&A $55–65M. Guidance was raised/lowered from Q1 levels and then maintained in Q3.

What Went Well and What Went Wrong

What Went Well
- EPS beat consensus as OpEx declined vs last year; net loss narrowed YoY to $(34.7)M from $(42.2)M. “We are well-resourced to advance our portfolio…with a sharpened focus on our ABC platform.” – CEO Arnon Rosenthal.
- Clear pipeline prioritization and IND timelines: AL137 targeting 2026 IND; AL050 targeting 2027; ABC siRNA programs advancing.
- Liquidity preserved and extended: $291.1M cash/investments; ATM usage adds flexibility; runway through 2027 reaffirmed.
What Went Wrong
- Revenue miss vs consensus and sharp YoY revenue decline due to completion of prior performance obligations (AL002, FTD-C9orf72); Q3 collaboration revenue $3.26M vs $15.34M YoY. (Consensus from S&P Global)
- Latozinemab Phase 3 failure eliminated a key late-stage asset; OLE/continuation study discontinued—negative pipeline inflection.
- Significant restructuring (~47% RIF) necessary to refocus post-readout; underscores pipeline transition risk and dependency on emerging ABC assets.

Financial Results

Quarterly trend (oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2025
Collaboration Revenue ($USD Millions)	$3.674	$7.874	$3.260
Net Loss ($USD Millions)	$(40.471)	$(30.524)	$(34.667)
Diluted EPS ($)	$(0.41)	$(0.30)	$(0.34)
R&D Expense ($USD Millions)	$33.641	$27.611	$29.350
G&A Expense ($USD Millions)	$14.728	$14.401	$11.518
Total Operating Expenses ($USD Millions)	$48.369	$42.012	$40.868
Loss from Operations ($USD Millions)	$(44.695)	$(34.138)	$(37.608)
Cash, Cash Equivalents & Investments ($USD Millions, period-end)	$354.6	$307.3	$291.1

Q3 2025 vs prior year and estimates

Metric	Q3 2024	Q2 2025	Q3 2025 (Actual)	Q3 2025 Consensus	Beat/Miss
Revenue ($USD Millions)	$15.342	$7.874	$3.260	$3.5848	Miss
Diluted EPS ($)	$(0.43)	$(0.30)	$(0.34)	$(0.4129)	Beat

Note: Consensus estimates and # of estimates sourced from S&P Global: EPS mean -$0.4129 (7 est.), Revenue mean $3.5848M (5 est.); actuals shown above. Values retrieved from S&P Global.

Segment breakdown: Alector operates in a single segment; no segment revenue disclosure.

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Deferred Revenue ($USD Millions, period-end)	$192.158	$182.272	$179.012
Shares Used in EPS (basic & diluted)	99.398M	100.372M	102.598M
Workforce Actions	13% RIF announced Mar-2025	—	~47% RIF announced Oct-2025

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Collaboration Revenue	FY 2025	$5–15M (Q1 guide, May 8)	$13–18M (updated Q2, maintained Q3)	Raised in Q2, Maintained in Q3
R&D Expense	FY 2025	$175–185M (Q1)	$130–140M (updated Q2, maintained Q3)	Lowered in Q2, Maintained in Q3
G&A Expense	FY 2025	$55–65M (Q1)	$55–65M (updated Q2, maintained Q3)	Maintained

Earnings Call Themes & Trends

Note: A Q3 earnings call transcript was not available in our document set. The company filed an 8-K referencing the press release; no transcript retrieved.

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
ABC platform & brain delivery	Advancing ABC-enabled anti-amyloid (ADP037-ABC), GCase ERT (ADP050-ABC), and anti-tau siRNA (ADP064-ABC); 2026 clinical entry targeted.	Selected lead candidates AL137 (anti-amyloid) and AL050 (GCase ERT); IND-enabling underway; siRNA programs (tau, alpha-syn, NLRP3) advancing.	Accelerating/focused
PGRN franchise (nivisnebart/AL101)	PROGRESS-AD Phase 2 enrollment completed; SAP amended (INFRONT-3 reference) in Q2; interim analysis planned 1H26.	Phase 2 ongoing; independent interim analysis confirmed for 1H26.	Steady execution
Latozinemab (AL001)	Phase 3 readout anticipated mid-Q4 2025 (Q2 press).	Phase 3 did not show clinical benefit; discontinuation of OLE/continuation studies.	Negative inflection
Cash runway	Runway “into the second half of 2027” (Q1, Q2).	Runway “through 2027”; ATM proceeds in Sept/Oct add flexibility.	Maintained runway
Workforce & OpEx	13% RIF (Mar-2025).	~47% RIF (Oct-2025) to focus resources on priority programs.	Cost reset
Regulatory & clinical design	SAP amendment to include plasma PGRN as co-primary for INFRONT-3 (Q2).	No new regulatory process changes disclosed; 10-Q reiterates program statuses. –	Stable

Management Commentary

“We are well-resourced to advance our portfolio of innovative drug candidates for the treatment of neurodegenerative diseases, with a sharpened focus on our differentiated Alector Brain Carrier (ABC) platform.” – Arnon Rosenthal, Ph.D., CEO.
“Our ABC-enabled programs have demonstrated robust brain penetration through peripheral dosing, favorable safety, and good pharmacokinetics.” – Arnon Rosenthal, Ph.D.
On pipeline momentum (Q2 for context): “This technology is designed to deliver therapeutic cargos…across the blood-brain barrier…we’re progressing brain-penetrant candidates, including our anti-amyloid beta antibody and anti-tau siRNA for Alzheimer’s disease, as well as our engineered GCase enzyme replacement therapy for Parkinson’s disease.” – Sara Kenkare-Mitra, Ph.D., President & Head of R&D.

Q&A Highlights

A Q3 earnings call transcript could not be located in the available filings/transcripts repository; the company filed an 8-K referencing the press release, but no transcript was retrievable in our tools. Key clarifications instead come from the Q3 press release and 10-Q regarding the latozinemab discontinuation, restructuring, and ABC pipeline prioritization.

Estimates Context

Q3 2025 vs S&P Global consensus: EPS -$0.34 vs -$0.4129 (beat), Revenue $3.26M vs $3.5848M (miss); 7 EPS estimates, 5 revenue estimates. Values retrieved from S&P Global.

Metric	Q3 2025 Actual	Q3 2025 Consensus	# of Estimates
Diluted EPS ($)	$(0.34)	$(0.4129)	7
Revenue ($USD Millions)	$3.260	$3.5848	5

Note: Estimates from S&P Global.

Key Takeaways for Investors

Near-term narrative reset: latozinemab Phase 3 failure removes a late-stage asset, but ABC-enabled programs (AL137, AL050, siRNAs) now anchor the story with upcoming IND-enabling milestones into 2026–2027.
Cost discipline and portfolio focus should extend runway through 2027 despite lower near-term collaboration revenue; monitor execution on RIF savings and OpEx trajectory.
PROGRESS-AD (nivisnebart) remains the key clinical catalyst (independent interim analysis 1H26); external benchmarking to evolving AD standard-of-care will be important.
Revenue variability persists given collaboration accounting; investors should focus on pipeline milestones, deferred revenue trends, and potential future business development.
Equity financing optionality remains via ATM; dilution risk balanced by liquidity and cost actions.
One-segment model simplifies analysis; success now hinges on ABC translation from preclinical robustness to human proof-of-concept.

Supporting detail and additional relevant press releases in Q3 2025

Latozinemab Phase 3 topline: increased plasma PGRN but no clinical benefit on co-primary CDR plus NACC FTLD-SB; secondary biomarkers (fluid, vMRI) unaffected; safety acceptable; OLE and continuation discontinued.
Corporate actions: ~47% workforce reduction to focus resources and extend runway; press release details Q3 OpEx and restructuring rationale.

Appendix: Source documents used

Q3 2025 press release (Nov 6, 2025): financial results, portfolio update, guidance.
Q3 2025 Form 10-Q (Nov 6, 2025): detailed financials, cash flows, collaboration accounting, restructuring. –
Q2 2025 press release (Aug 7, 2025): prior-quarter comparables, guidance update.
Q1 2025 press release (May 8, 2025): prior-quarter comparables, initial FY25 guidance.
Latozinemab Phase 3 topline press (Oct 21, 2025).

8-K referencing results press release:

Alector, Inc. (ALEC)·Q3 2025 Earnings Summary