Xilio Therapeutics Reports $8.1 Million Revenue for Q2 2025, Despite Operating Losses

Xilio Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated total revenue of $8.1 million for the quarter, a substantial increase from $2.4 million in the same period last year, primarily driven by collaboration and license revenue recognized under agreements with AbbVie and Gilead. For the first half of 2025, total revenue reached $11 million, compared to $2.4 million for the first half of 2024. Despite this revenue growth, Xilio continued to incur substantial operating losses, reporting a net loss of $15.8 million for the quarter and $29.1 million for the six months, although these figures represent improvements from losses of $13.9 million and $31.1 million, respectively, in the prior year.

The company’s operating expenses also increased, totaling $22.5 million for the quarter, up from $17.1 million a year earlier. This rise was attributed to higher research and development costs, which increased to $15.3 million from $11.2 million, reflecting ongoing clinical development activities for its product candidates, particularly vilastobart. General and administrative expenses also rose to $7.1 million, up from $5.8 million, driven by increased personnel-related costs and professional fees. The company did not incur any restructuring expenses in the latest quarter, contrasting with $0.1 million in the previous year.

In terms of strategic developments, Xilio completed a follow-on public offering in June 2025, raising $50 million in gross proceeds. This offering included prefunded warrants and common stock warrants, which, if exercised, could provide an additional $100 million by the end of 2026. The company’s cash and cash equivalents stood at $121.6 million as of June 30, 2025, a significant increase from $55.3 million at the end of 2024, bolstered by the proceeds from the public offering. However, Xilio noted that it expects to continue incurring operating losses and negative cash flows for the foreseeable future, raising concerns about its ability to sustain operations without additional capital.

Operationally, Xilio is advancing its clinical-stage product candidates, including vilastobart and XTX301, through various trials. The company is also leveraging its proprietary tumor-activation platform to develop additional preclinical programs. As of June 30, 2025, Xilio had a total of 51.8 million shares outstanding, an increase from 45.8 million at the end of 2024, reflecting the issuance of new shares in connection with its financing activities. The company’s workforce was reduced by 21% in March 2024 as part of a restructuring effort, which has since stabilized.

Looking ahead, Xilio anticipates that its existing cash reserves will be sufficient to fund operations through the third quarter of 2026. However, the company emphasized the need for additional capital to support ongoing research and development activities and to address the uncertainties surrounding its future financial condition. The management indicated that it may pursue various avenues for raising funds, including the exercise of warrants, milestone payments from collaborations, and potential new equity offerings.