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XI

Xencor Inc (XNCR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue of $43.61M and EPS of $(0.41) materially beat S&P Global consensus ($22.59M revenue, $(0.68) EPS), driven by a $25M Incyte regulatory milestone and higher non-cash royalties; net loss narrowed to $(30.83)M from $(67.34)M YoY .*
  • Management raised year-end 2025 cash guidance floor to $555–$585M (from $535–$585M in Q1), citing operating discipline and partnership inflows; cash was $663.8M at 6/30/25, funding runway “into 2028” .
  • Pipeline execution advanced: Phase 2b XENITH-UC study of anti-TL1A XmAb942 initiated; plamotamab RA proof-of-concept authorized; oncology TCEs (XmAb819, XmAb541) continue dose escalation, with initial XmAb819 data targeted for 4Q25 .
  • Stock-relevant catalysts: Incyte’s Monjuvi FL approval and milestone, near-term initial data readout for XmAb819, and the start of XENITH-UC (anti-TL1A class seen as high-uptake by GI specialists per company materials) .

What Went Well and What Went Wrong

What Went Well

  • “On-track to present preliminary safety and efficacy from XmAb819 in advanced clear cell renal cell carcinoma later this year,” with continued progression of XmAb819 and XmAb541 in dose-escalation studies .
  • Anti-TL1A program momentum: Phase 2b XENITH-UC initiated; Phase 1 data in healthy volunteers showed >71-day half-life supporting q12w maintenance dosing, reinforcing differentiation vs first-generation anti-TL1A .
  • Partnership leverage and financial upside: FDA approval of Monjuvi in FL triggered a $25M milestone; Q2 revenue benefitted from milestones and royalties, creating an estimates beat and narrower loss .

What Went Wrong

  • Continued operating losses: Operating loss of $(33.17)M and net loss of $(30.83)M, reflecting heavy R&D investment in multiple TCE programs and autoimmune studies .
  • Autoimmune scale-up increases cost load: R&D spend was $61.67M in Q2 (flat YoY), with higher spending on XmAb819/541/657 offset by wind-down of terminated programs; G&A decreased YoY but remained $15.12M .
  • Earnings call transcript not available for Q2 2025, limiting insight into real-time Q&A and any intra-quarter guidance nuances; reliance on press releases/presentation for qualitative context .

Financial Results

Core P&L and Cash Metrics

Metric ($USD Millions unless noted)Q4 2024Q1 2025Q2 2025
Revenue$52.79 $32.73 $43.61
Operating Loss$(13.18) $(43.18) $(33.17)
Other Income (Expense)$(31.40) $(5.08) $2.10
Net Loss$(45.55) $(48.42) $(30.83)
EPS (Basic & Diluted)$(0.62) $(0.66) $(0.41)
Cash & Marketable Debt Securities (Period-End)$706.70 $693.50 $663.80
Weighted Avg Shares (Millions)73.18 73.67 74.28

Q2 YoY Comparison (Q2 2025 vs Q2 2024)

MetricQ2 2024Q2 2025YoY Change
Revenue ($USD Millions)$23.91 $43.61 +$19.70 (primarily Incyte milestone + royalties)
R&D ($USD Millions)$61.53 $61.67 +$0.14 (mix shift to 819/541/657)
G&A ($USD Millions)$17.75 $15.12 −$2.63 (lower stock comp)
Other Inc/(Exp) ($USD Millions)$(13.41) $2.10 +$15.51 (unrealized equity gains)
Net Loss ($USD Millions)$(67.34) $(30.83) +$36.51 (narrowed loss)
EPS ($)$(1.09) $(0.41) +$0.68

Actuals vs Estimates (S&P Global)

MetricQ4 2024 ActualQ4 2024 Consensus*Q1 2025 ActualQ1 2025 Consensus*Q2 2025 ActualQ2 2025 Consensus*
Revenue ($USD Millions)$52.79 $17.14*$32.73 $24.78*$43.61 $22.59*
EPS ($)$(0.62) $(0.80)*$(0.66) $(0.55)*$(0.41) $(0.68)*

Values retrieved from S&P Global. The asterisk denotes S&P Global consensus figures without document citations.*

KPIs (Expense and Operating Drivers)

KPI ($USD Millions)Q4 2024Q1 2025Q2 2025
R&D Expense$51.06 $58.58 $61.67
G&A Expense$14.92 $17.34 $15.12
Total Operating Expenses$65.97 $75.92 $76.78
Cash Guidance (Year-End)$535–$585 $535–$585 $555–$585

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Year-End 2025 Cash, Cash Equivalents & Marketable Debt SecuritiesFY 2025$535–$585M (Q1 2025) $555–$585M (Q2 2025) Raised lower bound by $20M
Funding RunwayMulti-yearInto 2028 (Q1 2025) Into 2028 (Q2 2025) Maintained

No revenue, margin, OpEx, OI&E, tax rate, or dividend guidance was provided in the Q2 release; guidance centered on cash runway .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Anti-TL1A XmAb942 (IBD)Initiated FIH dosing; initial SAD readout planned 1H25; Phase 2 start in 2H25 . Interim Phase 1 showed >71-day half-life; Phase 2b XENITH-UC planned; high potency/maintenance q12w positioning .Phase 2b XENITH-UC initiated; presentation highlights high potency, q12w maintenance, and GI survey support; model predicts >90–99% TL1A suppression across doses .Strengthening execution; differentiation narrative building
Oncology TCEs (XmAb819/541)XmAb819 Phase 1 ongoing with 2H25 data; XmAb541 Phase 1 dose escalation ongoing .Continuing dose escalation; initial XmAb819 data targeted for 4Q25; selective designs emphasized .Progressing toward first clinical data
Partnerships & MilestonesAmgen/Novartis milestones in Q4; Monjuvi/Ultomiris royalties .Monjuvi FL approval → $25M milestone; non-cash royalties from Alexion/Incyte boosted revenue .Upside realized; recurring royalty tailwinds
Autoimmune Expansion (Plamotamab, XmAb657)Plamotamab RA PoC planned 1H25; XmAb657 FIH planned 2H25 .Plamotamab RA PoC authorized and starting; XmAb657 FIH on track for 2H25 .Execution commencement
Org/LeadershipCFO-strengthening board addition in Q1 (Todd Simpson); CDO transitioning to senior advisor .Board augmented with Dr. Raymond Deshaies (former Amgen SVP R&D), bolstering discovery/engineering pedigree .Enhanced governance/R&D leadership
Financial Discipline & RunwayYear-end 2024 cash $706.7M; 2025 cash guidance $535–$585M .Q2 end cash $663.8M; 2025 cash raised to $555–$585M; runway into 2028 .Improved outlook (lower bound increase)

Management Commentary

  • “Xencor is focused on execution of our clinical studies… evaluating four wholly owned XmAb drug candidates… We are on-track to present preliminary safety and efficacy from XmAb819… later this year.” — Bassil Dahiyat, Ph.D., President & CEO .
  • “Recently presented interim Phase 1 results support XmAb942… every 12-week subcutaneous dosing… We are on track to initiate the Phase 2b XENITH-UC… later this year.” — Bassil Dahiyat, Ph.D. .
  • “We began rebalancing our pipeline… to leverage our protein engineering strengths and reduce exposure to biological uncertainties—changes we believe increase our overall opportunities for clinical success.” — Bassil Dahiyat, Ph.D. .

Q&A Highlights

  • Earnings call transcript for Q2 2025 was not available in our document set; qualitative insights rely on the 8-K and corporate presentation .
  • Clarifications from release: revenue drivers were primarily Incyte milestone ($25M) and non-cash royalties (Alexion, Incyte); other income improved on unrealized equity gains; G&A down on lower stock comp .
  • No adjustments to revenue/margin guidance were provided; cash guidance was tightened (higher floor) .

Estimates Context

  • Q2 2025 actuals beat consensus materially: Revenue $43.61M vs $22.59M*, EPS $(0.41) vs $(0.68), reflecting milestone timing and royalty accruals; Q1 2025 also exceeded revenue consensus ($32.73M vs $24.78M) though EPS missed slightly vs consensus .*
  • Expect upward revisions to near-term revenue estimates where milestone probability-weighting was conservative; EPS estimates may shift with realized other income and lower G&A .*

Values retrieved from S&P Global. The asterisk denotes S&P Global consensus figures without document citations.*

Key Takeaways for Investors

  • Q2 execution and milestone timing delivered a clear beat; near-term catalysts (XmAb819 initial data in 4Q25; XENITH-UC underway) can sustain investor interest and re-rate clinical probability-of-success .
  • Anti-TL1A program differentiation (q12w maintenance, high potency) positions XmAb942 competitively in a growing IBD class; clinical validation in UC is pivotal for medium-term value creation .
  • Partnership economics matter: Incyte’s Monjuvi approval unlocked $25M and royalty tailwinds, adding non-dilutive capital; continued partner progress can smooth quarterly volatility .
  • Operating discipline evidenced by raised 2025 cash floor and runway into 2028; sustained R&D investment remains high but targeted to TCE/autoimmune programs with nearer-term readouts .
  • Without an earnings call transcript, monitor upcoming conference appearances for incremental disclosures; corporate presentation provides detailed program design/positioning .
  • Trading: Expect estimate revisions upward for revenue and narrowed losses; stock could react to 4Q25 oncologic data readouts and UC Phase 2b enrollment/operational updates, as narrative shifts from platform to clinical proof .
  • Risk: Clinical readout timing/execution, regulatory variability, and dependence on milestone/royalty timing may drive quarter-to-quarter volatility despite ample cash runway .