ADC Therapeutics Reports 8.2% Revenue Growth but Increases Net Loss in Q2 2025

ADC Therapeutics SA reported its financial results for the second quarter of 2025, revealing a total revenue of $18.8 million, a rise of 8.2% from $17.4 million in the same period last year. The increase was driven by a 6.2% growth in product revenues, which reached $18.1 million, and a significant surge in license revenues and royalties, which jumped to $754,000 from $380,000. Despite this revenue growth, the company recorded a net loss of $56.6 million, compared to a loss of $36.5 million in the prior year, reflecting a 55% increase in losses attributed to higher operating expenses and restructuring costs.

Operating expenses for the quarter totaled $63.0 million, a 35.6% increase from $46.5 million in the previous year. This rise was largely due to $13.1 million in restructuring, impairment, and related costs associated with the company's strategic restructuring plan, which includes a workforce reduction of approximately 30% and the closure of its UK facility. Research and development expenses also increased by 23.9% to $30.1 million, driven by costs related to ongoing clinical trials for ZYNLONTA and the development of a new prostate-specific membrane antigen-targeting ADC.

In terms of operational metrics, ADC Therapeutics reported cash and cash equivalents of $264.6 million as of June 30, 2025, an increase from $250.9 million at the end of 2024. The company completed a private placement in June 2025, raising $100 million in gross proceeds, which will support its ongoing operations and development efforts. The company’s total liabilities stood at $520.7 million, slightly down from $524.6 million at the end of 2024, while shareholders' equity improved to a deficit of $199.2 million from $202.6 million.

Looking ahead, ADC Therapeutics is focused on expanding the market for ZYNLONTA, which has received multiple regulatory approvals, including from the FDA and the European Commission. The company plans to continue its clinical trials and is optimistic about the potential for increased revenues from its flagship product. However, it also acknowledges the need for additional capital to fund its operations and execute its business strategy, particularly in light of the ongoing restructuring efforts and the competitive landscape in the biopharmaceutical industry.