Sign in

You're signed outSign in or to get full access.

MI

MACROGENICS INC (MGNX)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered a material beat vs Street: revenue of $72.84M vs $25.60M consensus and diluted EPS of $0.27 vs -$0.44 consensus, driven by $50M Sanofi milestones and stronger contract manufacturing revenue *. Management extended cash runway guidance into late 2027, aided by $75M non-dilutive payments expected in Q4 (Sanofi $50M; Gilead $25M) .
  • Strategic realignment: company discontinued lorigerlimab development in prostate cancer based on interim LORIKEET data failing to meet rPFS target, while continuing the LINNET Phase 2 monotherapy study in ovarian and clear cell gynecologic cancers .
  • ADC portfolio progressed: Phase 1 dose escalation for MGC026 completed with dose expansion initiated; MGC028 Phase 1 ongoing; MGC030 IND planned for 2026 .
  • Partnership momentum: Gilead licensed an additional preclinical T-cell engager program (triggering $25M) and Sanofi’s global TZIELD approvals triggered $50M milestones; MacroGenics remains eligible for up to ~$1.93B in future milestones combined .
  • Near-term catalysts likely center on receipt of $75M non-dilutive payments, ADC readouts, and evolving lorigerlimab strategy, while the exit from prostate cancer removes an overhang tied to LORIKEET risk .

What Went Well and What Went Wrong

What Went Well

  • Significant non-dilutive cash inflows secured: “we secured $75 million in additional non-dilutive partnership payments, which we expect to receive during the fourth quarter,” and extended runway into late 2027 .
  • Partnership expansion with Gilead on novel T-cell engager platform; new license triggered $25M, and three programs now advancing under the collaboration .
  • ADC pipeline advancement: completed Phase 1 dose escalation and initiated expansion cohorts for MGC026; MGC028 Phase 1 ongoing; MGC030 IND planned for 2026 .
  • Management tone confident: “laser-focused on building shareholder value” and positioning for success in 2026 and beyond .

What Went Wrong

  • Portfolio setback: LORIKEET interim data indicated lorigerlimab combo will not reach rPFS primary endpoint in mCRPC; development in prostate cancer discontinued .
  • Revenue mix volatility: YoY total revenue declined to $72.84M from $110.71M, reflecting lumpy milestone recognition (Incyte-related in 2024 vs Sanofi-related in 2025) .
  • Cost of manufacturing services increased with higher CDMO volume ($11.59M vs $1.70M YoY), adding near-term pressure on gross contribution from this line item .

Financial Results

Headline P&L and EPS vs prior periods and Street

MetricQ1 2025Q2 2025Q3 2025
Total Revenue ($USD)$13.19M $22.24M $72.84M
Diluted EPS ($USD)-$0.65 -$0.57 $0.27
Net Income ($USD)-$41.04M -$36.25M $16.82M
Income from Operations ($USD)-$42.62M -$36.76M $18.64M
Street Revenue Consensus ($USD)$9.59M*$28.06M*$25.60M*
Street EPS Consensus ($USD)-$0.72*-$0.47*-$0.44*

Values marked with * retrieved from S&P Global.

Revenue Breakdown

Revenue ComponentQ1 2025Q2 2025Q3 2025
Collaborative & other agreements ($USD)$7.04M $6.87M $53.00M
Product sales, net ($USD)$0.00M $0.00M $0.00M
Contract manufacturing ($USD)$6.15M $15.37M $19.84M
Government agreements ($USD)$0.00M $0.00M $0.00M
Total Revenues ($USD)$13.19M $22.24M $72.84M

Operating Expense Components

Expense LineQ1 2025Q2 2025Q3 2025
R&D ($USD)$39.70M $40.79M $32.71M
SG&A ($USD)$10.72M $9.30M $9.91M
Cost of manufacturing services ($USD)$5.40M $8.91M $11.59M
Interest & other income ($USD)$1.68M $1.41M $1.53M
Interest & other expense ($USD)$0.09M $0.80M $3.34M

Balance Sheet KPIs

MetricQ1 2025 (Mar 31)Q2 2025 (Jun 30)Q3 2025 (Sep 30)
Cash, cash equivalents & marketable securities ($USD)$154.14M $176.49M $146.40M
Total Assets ($USD)$224.57M $245.42M $270.76M
Deferred Revenue ($USD)$71.56M $63.62M $66.14M
Total Stockholders’ Equity ($USD)$79.12M $46.62M $67.00M
Shares Outstanding63,090,323 63,205,703 63,258,532

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayCompanyInto H2 2026 (Q1) Through H1 2027 (Q2) Raised
Cash RunwayCompanyThrough H1 2027 (Q2) Into late 2027 (Q3) Raised
Partner Milestone ReceiptsQ4 2025Not previously specified (Q2)$75.0M expected (Sanofi $50.0M; Gilead $25.0M) New/Added
Lorigerlimab in Prostate (mCRPC)PortfolioClinical update H2’25 (Q1/Q2) Discontinued in mCRPC based on LORIKEET interim data Lowered/Ended
Lorigerlimab in Ovarian/CCGCProgramOngoing Phase 2 (Q1/Q2) Continue LINNET; update by mid-2026 Clarified timeline
MGC026 (ADC)ProgramDose escalation ongoing; expansion expected H2’25 (Q2) Dose escalation completed; expansion initiated Progressed
MGC030 (ADC)ProgramIND planned for 2026 (Q1/Q2) IND planned for 2026 Maintained

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was found; company did not host a call in Q1 2025 . Themes reflect press releases and reported materials.

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Lorigerlimab strategyQ1: LINNET first patient dosed; LORIKEET update H2’25 . Q2: reiterated priorities, update expected .mCRPC development discontinued; LINNET continues with mid-2026 update .Pivot away from prostate; focus on gynecologic cancers
ADC pipeline (MGC026/028/030)Q1/Q2: Phase 1 programs ongoing; expansion for MGC026 expected H2’25; MGC030 IND in 2026 .MGC026 dose escalation completed; expansion initiated; MGC028 ongoing; MGC030 IND 2026 .Execution progress; timelines maintained/advanced
Partnerships (Gilead/Sanofi)Q1: Anticipated TZIELD decisions H2’25; eligibility for milestones . Q2: Royalty deal on ZYNYZ; strong milestone eligibility .Gilead licenses additional program ($25M); TZIELD approvals trigger $50M; expedited U.S. review .Strengthened monetization; expanded pipeline via partners
Financial runwayQ1: runway into H2’26 . Q2: runway through H1’27 .runway into late 2027; $75M expected Q4 .Improving runway profile
Manufacturing/CDMOQ1/Q2: rising contract manufacturing revenue .Higher CDMO revenue; higher cost of services .Scale-up with margin pressure
RegulatoryQ1: TZIELD sBLA timelines; SCAC update . Q2: EU/China decisions anticipated H2’25 .UK/China approvals realized; U.S. expedited review .Positive regulatory momentum (partnered assets)

Management Commentary

  • “we secured $75 million in additional non-dilutive partnership payments, which we expect to receive during the fourth quarter… we extended our relationship with Gilead to include a preclinical program based on our novel T-cell engager platform” — Eric Risser, President & CEO .
  • “we have decided not to pursue further development of lorigerlimab in prostate cancer… we remain committed to exploring lorigerlimab’s potential in ovarian and other gynecologic cancers and continue to enroll patients in the Phase 2 LINNET study” — Eric Risser .
  • “Our team continues to be laser-focused on building shareholder value… position the company for success in 2026 and beyond” — Eric Risser .
  • Q2 strategic frame: “drive MacroGenics to become an even more focused and capital-efficient biotechnology company as we advance our pipeline” — Eric Risser .

Q&A Highlights

  • Q3 2025: No earnings call transcript available; Q1 2025 explicitly noted no conference call .
  • As such, no Q&A guidance clarifications beyond press release content; key updates provided via 8-K include lorigerlimab portfolio decision, ADC program progress, partnership payments, and extended cash runway .

Estimates Context

  • Q3 2025: Revenue $72.84M vs Street $25.60M*; EPS $0.27 vs Street -$0.44* — a major beat on both lines, driven by $50M Sanofi milestones and robust CDMO revenue *.
  • Q2 2025: Revenue $22.24M vs Street $28.06M* (miss); EPS -$0.57 vs Street -$0.47* (miss) *.
  • Q1 2025: Revenue $13.19M vs Street $9.59M* (beat); EPS -$0.65 vs Street -$0.72* (beat) *.

Values marked with * retrieved from S&P Global.

Estimates vs Actuals Detail

MetricQ1 2025Q2 2025Q3 2025
Revenue Consensus ($USD)$9.59M*$28.06M*$25.60M*
Revenue Actual ($USD)$13.19M $22.24M $72.84M
EPS Consensus ($USD)-$0.72*-$0.47*-$0.44*
EPS Actual ($USD)-$0.65 -$0.57 $0.27
# of EPS Estimates6*7*7*
# of Revenue Estimates6*6*6*

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Q3 printed a decisive beat across revenue and EPS; milestone timing and CDMO activity drove upside. Expect near-term positive sentiment tied to non-dilutive $75M receipts and extended runway into late 2027 .
  • Portfolio de-risking: exiting mCRPC removes LORIKEET overhang; focus shifts to ovarian/gynecologic opportunity set where management remains constructive, with a mid-2026 LINNET update marker .
  • ADC pipeline execution is central to the medium-term thesis; watch MGC026 expansion cohort data and continued MGC028 progress for proof-of-concept signals .
  • Partnership optionality is meaningful: Gilead expansion and TZIELD’s regulatory progress build a milestone pipeline and potential royalty economics; $1.6B+ of future milestones (Gilead programs) and $330M+ tied to TZIELD remain long-term levers .
  • Revenue composition is inherently lumpy (milestones, CDMO), implying quarter-to-quarter volatility; investors should anchor on cash runway, program milestones, and ADC readouts rather than near-term linearity .
  • Watch operating expense trajectory: R&D down in Q3 as programs transition; SG&A disciplined post-MARGENZA; cost of manufacturing services up with CDMO scale—margin dynamics will hinge on mix and milestone timing .
  • Trading lens: beat-and-raise-like profile on runway, plus $75M imminent cash inflows and pipeline focus, are constructive catalysts; absence of call Q&A increases reliance on upcoming conference appearances and future program disclosures .