ALX Oncology Reports $22.1 Million Net Loss in Q3 2025, Reduces Operating Expenses by 31%

ALX Oncology Holdings Inc. reported a net loss of $22.1 million for the third quarter of 2025, a decrease from the $30.7 million loss recorded in the same period of 2024. For the nine months ending September 30, 2025, the company’s net loss was $78.8 million, down from $105.7 million in the prior year. The reduction in losses is attributed to a significant decrease in operating expenses, which fell by 31% to $22.5 million for the quarter, compared to $32.6 million in the previous year. This decline was primarily driven by a 34% reduction in research and development expenses, which totaled $17.4 million, as the company streamlined its clinical trial activities and reduced workforce costs.

In terms of financial position, ALX Oncology's total assets decreased to $82.7 million as of September 30, 2025, down from $147.8 million at the end of 2024. The decline in total assets was largely due to a reduction in short-term investments, which fell from $110.2 million to $37.2 million. The company’s cash and cash equivalents increased to $23.4 million, up from $17.6 million at the end of 2024, reflecting a net increase in cash flow from investing activities. However, the accumulated deficit rose to $700 million, indicating ongoing challenges in achieving profitability.

Strategically, ALX Oncology is advancing its clinical pipeline, focusing on its lead product candidate, evorpacept, which is currently in multiple clinical trials, including a Phase 2 study for HER2-positive breast cancer. The company has also initiated a Phase 1 trial for its second candidate, ALX2004, an EGFR-targeted antibody-drug conjugate. The company’s operational focus has shifted to optimizing its resources for these key programs, which may enhance its market position in the oncology sector.

The company’s workforce reduction and cost management strategies have contributed to a more favorable financial outlook, although ALX Oncology acknowledges the need for additional capital to support ongoing research and development efforts. Management anticipates that existing cash resources will sustain operations into early 2027, but recognizes the necessity of raising further funds through equity offerings or strategic partnerships to continue advancing its clinical programs. The company remains committed to its goal of developing innovative therapies for cancer treatment, despite the financial hurdles it faces.