Xencor Reports 17.4% Revenue Growth in Q3 2025, Net Loss Improves

Xencor, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $20.999 million, a 17.4% increase from $17.796 million in the same period last year. For the nine months ending September 30, 2025, revenue surged to $97.339 million, compared to $57.700 million for the same period in 2024. This growth was primarily driven by increased royalty revenues from collaborations with Alexion Pharmaceuticals and Incyte Corporation, which contributed $18.703 million and $2.295 million, respectively, in the latest quarter. Despite the revenue increase, Xencor reported a net loss of $6.027 million for the quarter, a significant improvement from the $47.442 million loss in Q3 2024.

Operating expenses for the third quarter decreased to $68.518 million from $72.993 million in the prior year, reflecting a reduction in research and development costs, which fell to $54.367 million from $58.226 million. The decrease in R&D expenses was attributed to lower stock-based compensation and reduced costs associated with winding down certain programs. General and administrative expenses remained relatively stable at $14.151 million compared to $14.767 million in the previous year. The overall operating loss for the quarter was $47.519 million, an improvement from the $55.197 million loss reported in Q3 2024.

In terms of operational developments, Xencor has made significant strides in its clinical programs, with ongoing Phase 1 and Phase 2 studies for several XmAb drug candidates targeting various cancers and autoimmune diseases. The company is currently enrolling patients in four clinical studies, including XmAb819 for clear cell renal cell carcinoma and XmAb541 for ovarian cancer. The company also reported a successful merger with Gale Therapeutics, which was completed in January 2025, allowing Xencor to consolidate its operations and eliminate noncontrolling interests.

As of September 30, 2025, Xencor's total assets stood at $868.811 million, down from $951.945 million at the end of 2024. The decrease was primarily due to a reduction in cash and cash equivalents, which fell to $28.291 million from $40.875 million. The company’s liabilities also decreased to $243.495 million from $277.919 million, reflecting a reduction in accounts payable and accrued expenses. Xencor's employee headcount remained stable, supporting its ongoing clinical and operational activities.

Looking ahead, Xencor anticipates continued revenue growth driven by milestone payments and royalties from its collaborations. The company expects to maintain sufficient liquidity to fund its operations through at least the next twelve months, bolstered by its cash reserves and marketable securities totaling $633.9 million as of September 30, 2025. However, the company acknowledges the inherent uncertainties in achieving future milestones and the potential impact of market conditions on its financial performance.