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XI

Xencor Inc (XNCR)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 EPS significantly beat consensus on non-operating gains: GAAP EPS of $(0.08) vs S&P Global consensus $(0.67), driven by $41.5M of other income (unrealized gains on marketable equity securities) . Revenue of $21.0M missed consensus $28.7M, reflecting lumpy non-cash royalty/milestone timing .
  • Cash guidance raised again: year-end 2025 cash, cash equivalents and marketable debt securities guided to $570–$590M (from $555–$585M in Q2 and $535–$585M in Q1), with runway into 2028 .
  • Pipeline momentum: initial Phase 1 data for XmAb819 (ENPP3 x CD3) showed 25% PR rate within target dose range in heavily pre-treated ccRCC; Phase 3 dose selection expected in 2026 with pivotal start in 2027. XmAb541 (CLDN6 x CD3) showed early responses; autoimmune programs advanced (first patient dosed in XENITH-UC Phase 2b; first RA patient dosed with plamotamab) .
  • Stock reaction catalysts ahead: continued 819/541 dose-escalation and expansion readouts, autoimmune readouts and partner programs (Amgen xaluritamig in Phase 3; Astellas ASP2138 planning registrational studies; Zenas obexelimab pivotal readouts around YE 2025–mid-2026) .

What Went Well and What Went Wrong

What Went Well

  • EPS beat was substantial: net loss narrowed to $6.0M (EPS $(0.08)) versus $(46.3)M (EPS $(0.72)) YoY; other income of $41.5M drove the improvement .
  • Oncology TCEs delivered compelling signals: XmAb819 showed 25% PR and 70% DCR within target dose range; no treatment-related ICANS; low Grade 3 CRS when correct priming dose used .
  • Strengthening guidance and runway: YE25 cash guidance increased to $570–$590M; runway into 2028 maintained .

“Xencor’s two novel, first-in-class, CD3 T-cell engaging bispecific antibodies, XmAb819 and XmAb541, have demonstrated compelling clinical data… We expect to identify recommended Phase 3 doses during 2026 to support initiation of pivotal studies during 2027.” — Bassil Dahiyat, Ph.D., President & CEO .

What Went Wrong

  • Revenue miss vs consensus: $21.0M actual vs $28.7M* estimate; quarterly revenue primarily non-cash royalties and milestone timing, which can be volatile .
  • Operating performance still loss-making: operating loss of $(47.5)M; EBIT margin remained deeply negative on a small revenue base despite YoY opex reductions .
  • R&D remains heavy though trending down QoQ: R&D was $54.4M (vs $61.7M in Q2), reflecting spend on advancing multiple programs .

Financial Results

Quarterly trend

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$32.7 $43.6 $21.0
GAAP Diluted EPS$(0.66) $(0.41) $(0.08)
EBIT Margin %-131.93%*-76.07%*-226.29%*
Net Income Margin %-147.92%*-70.69%*-28.70%*
R&D Expense ($USD Millions)$58.6 $61.7 $54.4
G&A Expense ($USD Millions)$17.3 $15.1 $14.2
Other Income (Expense), net ($USD Millions)$(5.1) $2.1 $41.5
Cash, Cash Equivalents & Marketable Debt Securities ($USD Millions, end of period)$693.5 $663.8 $633.9

Note: Asterisked values retrieved from S&P Global.

Q3 context (YoY and sequential)

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$17.8 $43.6 $21.0
GAAP Diluted EPS$(0.72) $(0.41) $(0.08)

Q3 2025 vs S&P Global consensus

MetricQ3 2025 ActualQ3 2025 ConsensusSurprise
Revenue ($USD Millions)$21.0 $28.71*-$7.71M (-26.8%)
GAAP EPS$(0.08) $(0.67)*+$0.59

Note: Asterisked values retrieved from S&P Global.

KPIs and notes:

  • Total operating expenses: $68.5M in Q3 2025 vs $73.0M in Q3 2024 .
  • Weighted-average shares: 74.4M in Q3 2025 vs 64.0M in Q3 2024 .
  • Liabilities related to sales of future royalties (LT): $87.8M at 9/30/25 .

Segment/Revenue composition: Company reports a single revenue line “Collaborations, milestones, and royalties,” primarily non-cash royalties from Alexion and Incyte in Q3 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
YE2025 Cash, Cash Equivalents & Marketable Debt SecuritiesFY2025$555–$585M (Q2 guide) ; $535–$585M (Q1 guide) $570–$590M Raised vs Q2; raised vs Q1
Cash runwayMulti-yearInto 2028 (Q1/Q2) Into 2028 Maintained

No revenue, margin, opex, OI&E or tax-rate guidance provided in-company materials for Q3. Guidance relates to balance sheet liquidity and runway .

Earnings Call Themes & Trends

Note: No Q3 2025 earnings-call transcript was available in our document set as of Nov 20, 2025; themes reflect company press releases and 8-K commentary.

TopicQ1 2025 (prior)Q2 2025 (prior)Q3 2025 (current)Trend
Oncology TCEs (XmAb819 – ENPP3 x CD3)Program progressing; data in 2H25 On-track to present initial dose-escalation data later in 2025 Initial data: 25% PR, 70% DCR in target dose range; Ph3 dose selection in 2026; pivotal in 2027 Improving evidence, timeline clarity
Oncology TCEs (XmAb541 – CLDN6 x CD3)Ongoing dose-escalation Characterization of target dose levels anticipated in 2025 Early efficacy: confirmed PRs (1 ovarian, 2 germ cell) in recent cohort Early signal emerging
Autoimmune (XmAb942 – anti-TL1A)>71-day half-life; supports Q12W maintenance; Phase 2b in 2H25 Phase 2b XENITH-UC initiated First UC patient dosed; enrollment ongoing Executing to plan
Autoimmune B-cell depletion (plamotamab; RA)—Regulatory authorization in June; PoC RA study approved First RA patient dosed; enrollment ongoing Advancing early clinical
PartnershipsIncyte $12.5M milestone; Vir $2.0M milestone Incyte $25M milestone; Monjuvi FL approval Amgen Ph3 xaluritamig; Astellas ASP2138 early data; Zenas Phase 2 positive; equity stake in Zenas Broadening external catalysts
Financials/liquidityYE25 cash $535–$585M; runway into 2028 YE25 cash $555–$585M; runway into 2028 YE25 cash $570–$590M; runway into 2028 Guide trending higher

Management Commentary

  • “We expect to identify recommended Phase 3 doses during 2026 to support initiation of pivotal studies during 2027.” — Bassil Dahiyat, Ph.D., President & CEO .
  • “XmAb819 demonstrated compelling anti-tumor activity and a well-tolerated safety profile… We are confident that we will be able to select a recommended Phase 3 dose during 2026 to support the initiation of our first pivotal study in advanced ccRCC during 2027.” — Bassil Dahiyat, Ph.D. .
  • Autoimmune execution: first patient dosed in XENITH-UC (XmAb942) and in RA study (plamotamab), with plans to start XmAb657 (CD19 TCE) by YE25 and XmAb412 (TL1A x IL23p19) in 2026 .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available in our document set as of Nov 20, 2025; therefore, Q&A highlights and any guidance clarifications from the call could not be reviewed. We will update this section upon transcript availability.

Estimates Context

  • Q3 2025: Revenue $21.0M vs S&P Global consensus $28.7M* (miss), EPS $(0.08) vs S&P Global consensus $(0.67)* (beat). The EPS beat was principally non-operating, driven by $41.5M of other income (unrealized gains on marketable equity securities) .
  • Prior quarters for context: Q1 revenue $32.7M vs $24.8M*; EPS $(0.66) vs $(0.55). Q2 revenue $43.6M vs $22.6M; EPS $(0.41) vs $(0.68)*. Variability largely reflects milestone and non-cash royalty recognition .

Note: Asterisked values retrieved from S&P Global.

Key Takeaways for Investors

  • EPS beat quality is low from a core-ops perspective; it was driven by unrealized gains in marketable equity securities, which are inherently volatile and not reflective of operating trends .
  • Revenue volatility persists given reliance on non-cash royalties and milestones; the Q3 revenue miss underscores quarter-to-quarter lumpiness .
  • Oncology TCE pipeline de-risking: XmAb819 and XmAb541 are showing early efficacy; 819’s 2026 Ph3 dose selection and 2027 pivotal start provide a clearer regulatory path and potential medium-term value inflection .
  • Autoimmune portfolio execution: first dosing in the XENITH-UC Phase 2b TL1A trial and RA PoC with plamotamab demonstrate steady advancement; additional program starts (XmAb657 in 2025, XmAb412 in 2026) add breadth .
  • Liquidity position strengthened: YE25 cash guidance raised to $570–$590M with runway into 2028, supporting continued clinical investment without near-term capital needs .
  • External optionality: multiple partner programs progressing (Amgen’s xaluritamig in Phase 3; Astellas’ ASP2138 eyeing registrational start; Zenas obexelimab readouts near-term), creating potential for milestones and future royalties .
  • Trading setup: Watch for additional 819/541 expansion data, autoimmune enrollment progress, and partner catalysts; EPS may normalize as other income reverts, so focus on revenue/milestone cadence and opex discipline for core trend assessment .

Citations:

  • Q3 2025 8-K press release, financials, programs, and guidance .
  • Q2 2025 8-K press release, financials, programs, and guidance .
  • Q1 2025 8-K press release, financials, programs, and guidance .
  • XmAb819 initial data press release (AACR-NCI-EORTC) .
  • XmAb819 presentation announcement (AACR-NCI-EORTC) .
  • Partner and ecosystem context (Amgen, Astellas, Zenas, Vir) .

Notes:

  • Asterisked values retrieved from S&P Global.