Xilio Therapeutics, Inc. (XLO)·Q2 2025 Earnings Summary

Executive Summary

• Xilio reported Q2 2025 collaboration and license revenue of $8.08M, up from $2.36M in Q2 2024, and net loss of $15.84M (EPS -$0.16) vs. $13.93M (EPS -$0.24) a year ago; cash rose to $121.6M, extending runway to the end of Q3 2026 .
• Against S&P Global consensus, revenue was essentially in line at $8.08M vs. $8.21M* (slight miss), while EPS missed at -$0.16 vs. -$0.08* as R&D stepped up for vilastobart and early-stage programs; 2 estimates covered both revenue and EPS* (bolded miss) .
• Pipeline progressed: updated Phase 2 vilastobart+atezolizumab data at ASCO (preliminary 26% ORR in heavily pre-treated MSS CRC without liver mets, differentiated safety); XTX301 Phase 1 enrollment progress with Gilead; masked T cell engager DC nominations on track for 2H25 .
• Capital strengthened via a June public offering ($50M gross) with additional potential $100M if Series B/C warrants are exercised in cash through 2026; warrant terms allow cancellations offset by non-dilutive capital, supporting flexibility (stock reaction catalyst: funding runway extension, optionality on proceeds) .

Note: A Q2 2025 earnings call transcript was not available in our sources; synthesis relies on company press releases and SEC 8-K materials. No earnings-call Q&A could be reviewed .

What Went Well and What Went Wrong

• What Went Well

  • Updated Phase 2 vilastobart data showed preliminary 26% ORR in late-line MSS CRC patients without liver metastases with “deep and durable responses” and “meaningfully differentiated safety and tolerability,” reinforcing the platform’s masking approach; management reiterated partnering discussions to accelerate development .
  • Capital runway extended to end of Q3 2026 on $121.6M cash and the June financing; company retains upside from potential $100M additional warrant exercises through 2026, providing optionality without near-term dilution if cancelled against non-dilutive capital .
  • Continued clinical execution: XTX301 completed Phase 1A monotherapy dose escalation enrollment; Phase 1B expansion ongoing with Gilead partnership, supporting broader pipeline momentum .

• What Went Wrong

  • EPS missed consensus materially at -$0.16 vs. -$0.08*, driven by higher R&D related to vilastobart, early-stage programs, and XTX501 IND-enabling activities; G&A also rose YoY on professional fees, though sequentially lower vs. Q1 .
  • Introduction of a sizable common stock warrant liability ($38.55M) on the balance sheet adds potential fair value P&L volatility (albeit a small Q2 impact), and underscores capital-structure complexity post-offering .
  • Despite revenue growth YoY, net loss widened YoY to $15.84M as operating expenses increased; scale remains tied to collaboration accounting while product revenue is not yet present .

Financial Results

Q2 headline comparison vs prior year and prior quarter:

Q2 2025 vs S&P Global consensus:

Liquidity and balance sheet:

Margins (S&P Global):

KPIs and operating highlights:

Estimates marked with * are Values retrieved from S&P Global.

Guidance Changes

No revenue, margin, OpEx, OI&E or tax guidance provided; disclosures focus on cash runway and program timelines .

Earnings Call Themes & Trends

Note: No Q2 earnings call transcript available in our sources; trends derived from Q4’24, Q1’25, and Q2’25 press materials .

Management Commentary

• “We believe our masked T cell engager molecules have the potential to be best-in-class, and we anticipate nominating our first development candidates for our wholly owned programs later this year… we are very encouraged by the clinical progress for XTX301… and we look forward to providing a program update in the near-term.” – René Russo, Pharm.D., President & CEO .
• “We also recently reported updated Phase 2 combination data for vilastobart at ASCO… [which] provide further clinical validation for our proprietary masking technology and approach.” .
• “Xilio continues to engage strategic partners on potential opportunities to accelerate and expand further development for vilastobart.” .

Q&A Highlights

• No Q2 2025 earnings call transcript or Q&A session was available in our document sources. Commentary reflects press release and 8-K disclosures .

Estimates Context

• Q2 revenue of $8.08M was slightly below S&P Global consensus of $8.21M*; Q2 EPS of -$0.16 missed consensus of -$0.08*; two estimates covered both metrics* (suggests limited sell-side coverage and higher variance) .
• Given higher R&D tied to vilastobart clinical work and early-stage pipeline, sell-side models may need to reflect elevated OpEx run-rate vs. Q1 and the effects of collaboration revenue recognition cadence (AbbVie and Gilead) .

Estimates marked with * are Values retrieved from S&P Global.

Key Takeaways for Investors

• Pipeline readthrough: ASCO vilastobart data continue to support efficacy and safety differentiation in MSS CRC combos, reinforcing the masking platform’s clinical validation and the partnering narrative (stock catalyst on additional data flow) .
• Funding de-risked: $121.6M cash and extended runway through Q3’26 plus potential $100M from warrant exercises provides flexibility to prosecute multiple programs and bridge to 2026 milestones .
• Expense trajectory: R&D intensity stepped up in Q2 to drive pivotal-enabling data packages and IND-enabling work (XTX501); monitor spending discipline vs. milestones as collaboration revenue timing can be uneven .
• Near-term catalysts: 2H25 masked T cell engager DC nominations (PSMA, CLDN18.2), potential further vilastobart data in 1H26, and XTX301 program updates with Gilead (events that can move sentiment) .
• EPS sensitivity: With modest estimates coverage and collaboration accounting, quarterly EPS can be volatile; the presence of warrant liabilities introduces potential non-cash fair value noise (though Q2 impact was small) .
• Strategic option value: Active partner outreach on vilastobart plus AbbVie collaboration broaden optionality for non-dilutive capital and accelerated development pathways .