Xencor Reports 82.6% Revenue Growth to $43.6 Million in Q2 2025

Xencor, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $43.6 million for the three months ended June 30, 2025, compared to $23.9 million for the same period in 2024. This represents an increase of 82.6%. For the first half of 2025, revenues totaled $76.3 million, up from $39.9 million in the prior year, marking a 91.3% increase. The revenue growth was primarily driven by milestone payments and royalties from collaborations with Alexion and Incyte, including a $25 million milestone payment from Incyte following FDA approval of a supplemental biologics license application.

Despite the revenue growth, Xencor reported an operating loss of $33.2 million for the second quarter of 2025, an improvement from a loss of $55.4 million in the same quarter of 2024. The total operating expenses decreased slightly to $76.8 million from $79.3 million year-over-year. The company’s net loss attributable to Xencor, Inc. was $30.8 million, or $0.41 per share, compared to a net loss of $67.3 million, or $1.09 per share, in the prior year quarter. The reduction in losses reflects improved operational efficiency and increased revenue generation.

Strategically, Xencor has made notable advancements, including the completion of a merger with Gale Therapeutics, which was finalized on January 20, 2025. This merger allows Xencor to consolidate its operations and streamline its focus on developing engineered antibody therapeutics. The company is actively conducting Phase 1 clinical trials for several drug candidates, including XmAb819 and XmAb541, targeting various cancers and autoimmune diseases. The company also reported a significant increase in its employee headcount, reflecting its commitment to expanding its research and development capabilities.

Operationally, Xencor's cash and cash equivalents, along with marketable debt securities, totaled $663.8 million as of June 30, 2025, down from $706.7 million at the end of 2024. The company experienced a net cash increase of $3.5 million during the first half of 2025, a significant improvement compared to a decrease of $23 million in the same period of 2024. This positive cash flow is attributed to milestone payments and effective management of operating expenses. Xencor continues to evaluate its financial position and expects its current resources to support operations through at least the next twelve months.

Looking ahead, Xencor remains focused on advancing its clinical programs and expects to continue receiving milestone payments from its collaborations. The company is also assessing the impact of recent tax legislation on its financial condition. While it has not yet generated revenue from product sales, Xencor is optimistic about its pipeline and the potential for future commercialization of its drug candidates. The company is committed to maintaining a strong internal control environment and is actively working to address previously identified material weaknesses in its financial reporting processes.