Xencor Reports 87% Revenue Decline and Increased Net Loss in Q1 2026

Xencor, Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenues of $4.5 million, a decrease of approximately 87% compared to $32.7 million in the same period of 2025. This drop was primarily attributed to reduced revenue from collaboration and licensing agreements, particularly with Alexion Pharmaceuticals and Incyte Corporation. The company recognized only $1.5 million in non-cash royalty revenue from Alexion, down from $15.5 million in the prior year, following a dispute regarding royalty payments for U.S. sales of Ultomiris. Additionally, milestone revenues, which had contributed $14.5 million in the previous year, were absent in the current quarter.

Operating expenses for Xencor also increased, totaling $82.4 million for the first quarter of 2026, compared to $75.9 million in the same period last year. The rise in expenses was driven by higher research and development costs, which amounted to $64.7 million, up from $58.6 million in 2025. This increase reflects the company's ongoing commitment to advancing its clinical programs, including several trials for its XmAb drug candidates. The net loss attributable to Xencor for the quarter was $128.9 million, or $1.71 per share, compared to a net loss of $48.4 million, or $0.66 per share, in the prior year.

In terms of operational developments, Xencor continues to focus on its clinical-stage pipeline, which includes five ongoing studies for various XmAb drug candidates targeting cancer and autoimmune diseases. The company is actively enrolling patients in these trials, which are critical for advancing its product candidates toward potential commercialization. As of March 31, 2026, Xencor's total assets were reported at $736.8 million, a decrease from $875.5 million at the end of 2025, primarily due to cash outflows and reduced marketable securities.

The company has also made strategic moves to enhance its financial position, including the filing of a universal shelf registration statement that allows for the potential offering of various securities over the next three years. As of the end of the first quarter, Xencor had $541.8 million in cash, cash equivalents, and marketable debt securities, down from $610.8 million at the end of 2025. The company believes that its current financial resources are sufficient to fund operations through at least the next twelve months, although it acknowledges the uncertainty surrounding future revenue from collaborations and product development.

Looking ahead, Xencor's management remains focused on executing its clinical development strategy while navigating the challenges posed by market conditions and ongoing disputes with partners. The company is committed to advancing its pipeline and exploring opportunities for collaboration to optimize its development efforts. However, the timing and success of these initiatives remain contingent on various factors, including regulatory approvals and market acceptance of its product candidates.