NextCure Reports $26.8 Million Net Loss and Financial Challenges in Latest 10-Q Filing

NextCure, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $26.8 million for the quarter, compared to a loss of $15.4 million in the same period last year, marking a 74% increase in losses year-over-year. For the first half of 2025, the net loss was $37.8 million, up from $32.5 million in the first half of 2024. The increase in losses is attributed primarily to heightened research and development expenses, which surged to $24.1 million in the second quarter, up from $12.4 million in the prior year, largely due to costs associated with a new licensing agreement with Hainan Simcere Zaiming Pharmaceutical Co., Ltd.

The company’s total operating expenses for the second quarter reached $27.3 million, a significant rise from $16.5 million in the same quarter of 2024. This increase was driven by a combination of higher research and development costs and a slight decrease in general and administrative expenses, which fell to $3.2 million from $4.1 million. The accumulated deficit as of June 30, 2025, stood at $417.9 million, reflecting the ongoing financial strain as the company continues to invest heavily in its clinical programs without generating revenue from product sales.

In terms of strategic developments, NextCure executed a reverse stock split on July 14, 2025, in an effort to comply with Nasdaq listing requirements after its stock price fell below the minimum threshold. The company also entered into a licensing agreement with Zaiming, which includes an upfront payment of $12 million and potential milestone payments totaling up to $166.5 million for product development. This agreement is expected to enhance NextCure's product pipeline, particularly with the development of the antibody-drug conjugate SIM0505.

Operationally, NextCure's cash and cash equivalents decreased significantly to $4.9 million as of June 30, 2025, down from $27.7 million at the end of 2024. The company reported total current assets of $40 million, a sharp decline from $71.8 million at the end of the previous fiscal year. The company anticipates that its existing cash reserves will be sufficient to fund operations into mid-2026, but it has acknowledged substantial doubt about its ability to continue as a going concern without raising additional capital.

Looking ahead, NextCure plans to continue advancing its clinical programs, particularly LNCB74 and SIM0505, while seeking partnerships and financing to support its operations. The company is focused on completing key milestones in its clinical trials and aims to provide updates on its progress by the end of 2025. However, the need for substantial additional funding remains a critical concern, as the company has not yet generated any revenue from product sales and continues to incur significant operating losses.