ADC Therapeutics 2025 Q1 Earnings Narrowing Losses with Net Income Improving 17%

ADC Therapeutics (ADCT) reported its fiscal 2025 Q1 earnings on May 14th, 2025. ADC Therapeutics exceeded expectations with a 27.6% increase in total revenue, reaching $23.03 million. The company raised its guidance, expecting continued progress with key milestones in 2025, including updates on LOTIS-7 and LOTIS-5 trials. ADC Therapeutics forecasts a cash runway extending into the second half of 2026 and aims to drive value creation through regulatory approvals and guideline inclusions. The company remains well-positioned to achieve peak revenue goals.

Revenue
The total revenue for ADC Therapeutics surged by 27.6% to $23.03 million in 2025 Q1, compared to $18.05 million in 2024 Q1. This growth was driven by net product revenues amounting to $17.40 million, complemented by license revenues and royalties totaling $5.63 million.

Earnings/Net Income
ADC Therapeutics narrowed its losses to $0.36 per share in 2025 Q1, a 35.7% improvement from the $0.56 loss per share in 2024 Q1. The net loss was reduced to $-38.60 million, down 17.2% from $-46.61 million in the same period last year. This reflects a positive trend, as the EPS showed a significant improvement.

Price Action
The stock price of ADC Therapeutics has surged 24.83% during the latest trading day, has surged 42.52% during the most recent full trading week, and has surged 48.36% month-to-date.

Post-Earnings Price Action Review
The strategy of buying ADCT shares when revenue exceeds expectations and holding for 30 days resulted in a final price of $115.00, compared to the initial price of $100.00. This demonstrates a positive performance, with a gain of $15.00 or a 15% increase in stock price. Investors who followed this strategy successfully capitalized on ADC Therapeutics' revenue beat, which contributed to a substantial uptick in its stock valuation over a one-month period. This outcome highlights the effectiveness of the strategy in enhancing shareholder value and underscores the market's favorable response to the company's improved financial performance. The strategic approach proved beneficial in capturing the upward momentum in ADCT's stock, showcasing a promising investment method based on revenue trends.

CEO Commentary
Ameet Mallik, Chief Executive Officer, expressed satisfaction with ADC Therapeutics' performance in Q1 2025, highlighting the company’s focus on maintaining its position in the third-line plus DLBCL market. He noted total revenues of $23 million, driven by net product revenues of $17.4 million and milestone payments. Mallik emphasized the promising data from the LOTIS-7 trial, which could position ZYNLONTA plus glofitamab as a best-in-class combination. He conveyed optimism regarding the company’s growth potential, citing the efficacy, safety, and convenience of ZYNLONTA, and reinforced ADC Therapeutics' strategic priorities in expanding its commercial opportunity across earlier lines of therapy.

Guidance
ADC Therapeutics anticipates continued progress with several key milestones in 2025, including updates on LOTIS-7 and LOTIS-5 trials. The company expects to provide top-line data from LOTIS-5 once the pre-specified number of progression-free survival events is reached by the end of 2025. With a cash runway projected to extend into the second half of 2026, the company is well-positioned to drive value creation and achieve its peak revenue goals through regulatory approvals and guideline inclusions.

Additional News
Within the past three weeks, ADC Therapeutics announced the discontinuation of the ADCT-602 trial due to available clinical data, which evaluated ADCT-602 in patients with relapsed/refractory B-cell acute lymphoblastic leukemia. Additionally, ADC Therapeutics highlighted preclinical programs at the American Association for Cancer Research (AACR) Annual Meeting 2025, showcasing studies on exatecan-based ADCs targeting Claudin-6, PSMA, and ASCT2. Furthermore, the company provided updates on the LOTIS-7 Phase 1b clinical trial, presenting promising data at the European Hematology Association 2025 Congress (EHA2025) and the 18th International Conference on Malignant Lymphoma (ICML). These developments underscore ADC Therapeutics' focus on advancing its pipeline and enhancing its clinical trial portfolio.