ALX Oncology Reports $25.9 Million Net Loss in Q2 2025, Focuses on Clinical Pipeline

ALX Oncology Holdings Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $25.9 million, a 34% decrease from the $39.4 million loss recorded in the same period of 2024. For the first half of 2025, the company reported a net loss of $56.7 million, down from $75.0 million in the prior year. The reduction in losses is attributed to a significant decrease in operating expenses, which totaled $26.6 million for the quarter, a 36% decline compared to $41.5 million in Q2 2024. This decrease was primarily driven by a 48% reduction in research and development expenses, which fell to $18.0 million from $34.7 million year-over-year.

The company’s total assets decreased to $95.3 million as of June 30, 2025, down from $147.8 million at the end of 2024. This decline was largely due to a reduction in short-term investments, which dropped from $110.2 million to $60.0 million. Cash and cash equivalents increased slightly to $19.3 million from $17.6 million, reflecting a net increase in cash flow of $1.7 million for the first half of the year. The accumulated deficit also widened to $677.8 million, up from $621.1 million at the end of 2024.

Strategically, ALX Oncology has focused on advancing its clinical pipeline, particularly its lead product candidate, evorpacept, which is currently undergoing multiple clinical trials. The company has also initiated the development of ALX2004, an epidermal growth factor receptor-targeted antibody-drug conjugate, which is expected to enter Phase 1 trials in August 2025. The company’s operational metrics indicate a streamlined focus on its core product candidates, with a reduction in workforce contributing to lower personnel costs.

In terms of financing, ALX Oncology has raised a total of $643.5 million since its inception, with recent funding efforts including an at-the-market equity offering that generated $30.0 million in net proceeds. The company has also entered into a loan agreement for a secured term loan facility of up to $100 million, of which $10 million has been drawn. However, the company did not draw down on an additional $40 million available under the loan agreement by the deadline, limiting its access to future funding.

Looking ahead, ALX Oncology anticipates continued operating losses as it invests in the development of its product candidates. The company expects to incur significant expenses related to ongoing clinical trials and regulatory approvals. Management has indicated that additional capital will be necessary to support its business plan, and it is exploring various financing options, including equity offerings and strategic partnerships. The company believes its existing capital resources will be sufficient to fund operations into the first quarter of 2027, but acknowledges the need for future funding to sustain its development efforts.