Executive Summary

Q2 2025 results were in line on EPS (per S&P “Primary EPS”) but missed materially on revenue vs consensus; collaboration revenue was $3.06M vs $6.06M consensus and net loss was $24.3M; cash/equivalents were $77.0M with runway into mid-2026, aided by cost actions and July debt payoff .
Strategic progress: >45 patients enrolled across two Emi‑Le post‑topo‑1 TNBC expansion cohorts; management reiterated initial expansion data in 2H 2025 and highlighted encouraging efficacy signals in B7‑H4‑high TNBC and ACC‑1 from prior datasets .
Corporate actions: 1‑for‑25 reverse split effective July 25; Nasdaq bid price compliance regained; ~$17.9M debt repaid in July; $15M GSK milestone achieved in July (payment due in Q3) .
Stock reaction catalysts near term: 2H 2025 Emi‑Le expansion readout (dose A vs B, durability with proteinuria mitigation), initial pharmacodynamic STING activation data for XMT‑2056, and regulatory dialogue on potential randomized design in post‑topo‑1 TNBC .

What Went Well and What Went Wrong

What Went Well

Emi‑Le clinical momentum and enrollment: >45 TNBC patients enrolled across two expansion cohorts; initial expansion data targeted for 2H 2025 . CEO: “We look forward to reporting initial clinical data from these expansion cohorts later this year.”
Compelling prior signals in target populations: B7‑H4‑high, post‑topo‑1 TNBC showed 29% ORR and median PFS ~16 weeks at intermediate doses; ACC‑1 cohort showed 56% ORR as of Mar 8 cutoff in dose‑escalation/backfill data .
Balance sheet de‑risking and visibility: Cash/equivalents $77.0M at 6/30; debt fully repaid in July; runway into mid‑2026; $15M GSK milestone achieved in July (payable in Q3) .

What Went Wrong

Revenue miss and continued operating losses: Q2 collaboration revenue $3.06M (y/y +33%) but below consensus; net loss ($24.3M) flat y/y despite restructuring expenses ($3.9M) .
Restructuring charges and opex headwinds: $3.9M restructuring expense in Q2 tied to workforce reduction (55% announced in May) to focus on Emi‑Le; R&D $16.2M and G&A $7.4M remain meaningful vs small revenue base .
Safety/operational risk to monitor: proteinuria mitigation and treatment interruptions remain a focal point; management expects 2H data to address ability to keep patients on therapy at higher dose B .

Financial Results

Note: Q2 2025 per-share metrics are post 1‑for‑25 reverse split; Q1 and Q4 figures in press releases were pre‑split, but S&P “Primary EPS” actuals reflect split-adjusted values. We anchor estimate comparisons on S&P consensus.

Financial summary (USD unless noted):

Metric	Q4 2024	Q1 2025	Q2 2025
Collaboration Revenue ($M)	$16.361	$2.754	$3.056
Net Loss ($M)	$(14.117)	$(24.123)	$(24.296)
GAAP EPS (reported in PR)	$(0.11)	$(0.19)	$(4.87)
Net Income Margin %	(−86.3%) (computed from −$14.117M, $16.361M)	(−876%) (computed from −$24.123M, $2.754M)	(−795%) (computed from −$24.296M, $3.056M)

Consensus vs actuals (S&P Global; Primary EPS and Revenue):

Metric	Q4 2024 Consensus	Q4 2024 Actual (S&P)	Q1 2025 Consensus	Q1 2025 Actual (S&P)	Q2 2025 Consensus	Q2 2025 Actual (S&P)
Revenue ($)	$7.712M*	$16.361M*	$6.049M*	$2.754M*	$6.057M*	$3.056M*
Primary EPS	$(3.8125)*	$(2.75)*	$(4.8214)*	$(4.75)*	$(4.0725)*	$(4.082)*

Values retrieved from S&P Global.*

Operating detail (USD):

Line Item	Q2 2024	Q2 2025
Collaboration Revenue ($M)	$2.293	$3.056
R&D Expense ($M)	$17.2	$16.2
G&A Expense ($M)	$10.5	$7.4
Restructuring Expense ($M)	—	$3.9
Net Loss ($M)	$(24.3)	$(24.3)

Balance sheet and cash flow KPIs:

KPI	Q4 2024	Q1 2025	Q2 2025
Cash & Equivalents ($M)	$134.6	$102.3	$77.0
Net Cash Used in Ops ($M)	$(19.3) (Q4)	$(29.3)	$(22.6)
Total Liabilities ($M)	$154.2	$—	$137.7
Debt Repayment (post‑Q2)	—	—	~$17.9M paid July 2025
Cash Runway	Into 2026	Into mid‑2026	Into mid‑2026

Segment breakdown: Not applicable (collaboration revenue only) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash runway	Operating plan	Into mid‑2026 (Q1)	Into mid‑2026 (reiterated)	Maintained
Emi‑Le expansion data	Timing	Initial data in 2H 2025 -	Initial data in 2H 2025	Maintained
XMT‑2056 data	Timing	Initial PD STING activation data in 2025	Initial PD STING activation data in 2H 2025	Clarified window
Debt	Balance	Debt outstanding (pre‑July)	~$17.9M debt paid in July 2025 (post‑Q2)	Improved balance sheet
Nasdaq compliance	Listing	Non‑compliant pre‑split	Compliance regained Aug 11, 2025	Resolved

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Emi‑Le efficacy in post‑topo‑1 TNBC	ORR 29% in B7‑H4‑high TNBC at intermediate doses; initial expansion begun	>45 pts enrolled; 2H readout; dose A (67.4 mg/m2 Q4W) vs dose B (80 mg/m2 Q4W with loading)	Building dataset; approaching dose selection
ACC‑1 signal	Early strong activity (56% ORR) in escalation/backfill	Reinforced interest; additional backfill patients enrolled	Positive signal persistence
Proteinuria mitigation	Amendment #5 implemented in early 2025	Expect 2H data to show fewer interruptions and ability to maintain therapy at dose B	Risk being actively managed
Market opportunity	Post‑topo‑1 TNBC population expected to expand (ASCENT‑3/4)	Framed EMi‑Le as non‑topo‑1 option in 2L+; discussed randomized design merits	Thesis strengthening
Cost/actions & runway	Strategic restructuring (55% workforce reduction) to extend runway	Runway into mid‑2026; debt payoff; $15M GSK milestone achieved (payable Q3)	Improved financial flexibility
XMT‑2056 (HER2)	Dose escalation; plan for PD data in 2025	Enrollment improved; PD STING activation data planned 2H 2025; $15M GSK milestone in July	Incremental progress

Management Commentary

“These presentations highlighted Emi‑Le’s encouraging clinical activity in patients with TNBC post‑topo‑1 treatment and those with adenoid cystic carcinoma type 1 (ACC‑1).… We look forward to reporting initial clinical data from these expansion cohorts later this year.” — Martin Huber, M.D., CEO
“We ended [Q2] with $77,000,000 in cash… In July, we paid approximately $17,900,000 to pay off our debt facility. We continue to expect that our capital resources will enable us to support our current operating plan commitments into mid‑2026.” — Brian DeSchuytner, CFO/COO
On benchmarks for TNBC: “Standard of care… is a five percent response rate and a six to seven week PFS… if you have [~16 weeks PFS] and a response rate in the 20s… you would beat the standard of care… fairly readily.” — Martin Huber

Q&A Highlights

2H data scope/expectations: Dataset will include both dose A and B; longer follow‑up for A; sufficient dose B data to assess efficacy/safety/durability; ~40–50% expected B7‑H4‑high share .
Efficacy bar: Management cited SoC benchmarks (ORR ~5%, PFS ~6–7 weeks); believes 20%+ ORR and ~16 weeks PFS would comfortably beat SoC in randomized setting .
Proteinuria mitigation: Amendment #5 introduced prophylactic ACE/ARB and allowed continued dosing for isolated albuminuria; 2H data expected to show fewer interruptions at higher dose .
Phase 3 path/design: Preference for randomized trial in post‑topo‑1 setting to broaden eligibility, use PFS OS endpoints, and avoid confirmatory study; majority of U.S. 2L/3L TNBC is post‑topo‑1 .
XMT‑2056: Enrollment improved; $15M development milestone achieved with GSK; planning PD STING activation data this year; specifics confidential .

Estimates Context

Q2 2025 vs consensus: Revenue $3.06M vs $6.06M consensus (miss); Primary EPS $(4.082) vs $(4.073) consensus (slight miss). Company reported GAAP EPS $(4.87) (post‑split); S&P “Primary EPS” actuals differ due to methodology/shares normalization . Values retrieved from S&P Global.*
Trend: Q1 2025 was a revenue miss but EPS slight beat vs S&P; Q4 2024 was a clear revenue and EPS beat vs S&P, driven by collaboration revenue timing . Values retrieved from S&P Global.*

Key Takeaways for Investors

Near-term catalyst risk/reward centers on 2H 2025 Emi‑Le expansion data (dose selection, durability, mitigation success) — data meeting management’s ORR/PFS bars in B7‑H4‑high post‑topo‑1 TNBC could materially re‑rate expectations .
The strategic setup is cleaner: debt repaid, runway into mid‑2026, headcount reduction/rationalized spend increase survival to pivotal planning; $15M GSK milestone provides incremental non‑dilutive funding .
Clinical narrative is coalescing around a sizable, expanding post‑topo‑1 TNBC addressable market where non‑topo‑1 mechanisms may be advantaged; management is already speaking to randomized design considerations .
Watch for confirmation that dose B maintains dosing with fewer interruptions and improves efficacy vs dose A; mitigation success is a pivotal driver of go‑forward dose and registrational readiness .
Collaboration optionality remains: JJ/ Merck KGaA research collaborations ongoing; GSK option on XMT‑2056 progressing; additional milestones could extend runway further .
Technical/structural: 1‑for‑25 reverse split executed; Nasdaq compliance regained — removes listing overhang but does not alter clinical/financing dependencies .
Trading stance into 2H data: Binary‑leaning setup with asymmetric upside if ORR/PFS materially exceed SoC benchmarks in B7‑H4‑high; downside if mitigation fails to sustain dosing or efficacy lags prior signals .

Notes on reverse split and comparability:

Q2 2025 PR per‑share amounts are split‑adjusted; earlier PRs used pre‑split shares. S&P “Primary EPS” actuals for all quarters are split‑adjusted, enabling cleaner consensus comparisons. Press‑release EPS for Q1/Q4 maps to S&P actuals when multiplied by 25 (e.g., $(0.19) → $(4.75); $(0.11) → $(2.75)) .

References:

Q2 2025 8‑K/Press Release and financials
Q2 2025 Earnings Call Transcript
Q1 2025 8‑K/Press Release and financials
Q4 2024 8‑K/Press Release and financials
Additional Q2 press releases: ASCO dataset (June 2) and restructuring (May 6)