Xilio Therapeutics Reports $18.7M Revenue for Q2 2026, Net Loss of $6.4M

Xilio Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company generated total revenue of $18.7 million for the quarter, a substantial increase from $8.1 million in the same period last year, primarily driven by collaboration and license revenue from agreements with AbbVie and Gilead. For the first half of 2026, total revenue reached $31.3 million, compared to $11.0 million for the first half of 2025. Despite this revenue growth, Xilio continued to incur losses, reporting a net loss of $6.4 million for the second quarter and $15.9 million for the first half of 2026, although these figures represent improvements from losses of $15.8 million and $29.1 million, respectively, in the prior year.

The company’s operating expenses for the second quarter were $22.2 million, slightly down from $22.5 million in the same quarter of 2025. Research and development expenses decreased to $14.6 million from $15.3 million year-over-year, while general and administrative expenses rose to $7.6 million from $7.1 million. The decrease in R&D expenses was attributed to reduced clinical development activities for certain programs, while the increase in G&A expenses was driven by higher personnel-related costs and professional fees.

Xilio's balance sheet as of June 30, 2026, showed total assets of $154.3 million, with cash and cash equivalents amounting to $136.0 million. The company’s total liabilities decreased significantly to $82.0 million from $119.4 million at the end of 2025, primarily due to a reduction in deferred revenue and accrued expenses. The company’s stockholders’ equity increased to $72.3 million, reflecting the issuance of common stock and prefunded warrants during the period.

Strategically, Xilio has made progress in its clinical programs, including the advancement of its bispecific PD-1/masked IL-2 therapy, XTX501, which is set to enter a Phase 1/2 clinical trial in the second half of 2026. The company also achieved a $6.0 million development milestone under its collaboration with AbbVie, which was recorded as a receivable. Looking ahead, Xilio anticipates that its existing cash and cash equivalents, along with potential future milestone payments, will be sufficient to fund operations into early 2028. However, the company acknowledges the need for additional capital to support ongoing research and development activities and to navigate the uncertainties inherent in the biotechnology sector.