ADC Therapeutics 2025 Q2 Earnings Deeper Losses Amid Revenue Growth

ADC Therapeutics reported its Q2 2025 earnings on August 12, 2025. The company posted an 8.2% increase in total revenue to $18.84 million, but its net loss widened significantly to $56.65 million, or $0.50 per share, from $36.54 million, or $0.38 per share, in the prior-year quarter. The results highlight continued financial pressure despite top-line growth.

Revenue
ADC Therapeutics generated $18.84 million in total revenue for Q2 2025, reflecting an 8.2% increase compared to $17.41 million in the same period of 2024. Product revenues accounted for the bulk of the top-line performance, with net product sales reaching $18.09 million. The company also earned $754,000 in license and royalty income, contributing to the overall revenue growth.

Earnings/Net Income
The company’s earnings deteriorated significantly in the quarter. ADC Therapeutics posted a net loss of $56.65 million, or $0.50 per share, a 55.0% increase in losses compared to $36.54 million, or $0.38 per share, in Q2 2024. The widening loss reflects ongoing R&D and restructuring expenses. The EPS performance was notably negative, underscoring financial challenges.

Price Action
Following the earnings report, ADCT stock surged 9.29% in the latest trading day and rose 6.52% for the week. However, the stock declined 6.67% month-to-date, indicating mixed investor sentiment in the near term.

Post-Earnings Price Action Review
Despite the revenue increase, a post-earnings trading strategy of buying ADCT shares on the report date and holding for 30 days underperformed significantly over the past three years, returning -70.41% versus 46.32% for the benchmark. The strategy showed no drawdowns but also failed to capture gains, resulting in a CAGR of -34.32% and an excess return of -116.74%. This suggests that the market may not be rewarding the company’s operational improvements with positive share performance.

CEO Commentary
Ameet Mallik, CEO & Director, highlighted strong operational performance in Q2 2025, with $18.1 million in net product revenues. He emphasized encouraging clinical data for ZYNLONTA plus glofitamab in DLBCL, including a 93.3% overall response rate and 86.7% complete response rate. The CEO outlined key strategic moves, including shutting down the U.K. facility, reducing the workforce by 30%, and focusing on ZYNLONTA and the PSMA-targeting ADC. Mallik expressed confidence in ZYNLONTA’s potential to reach peak U.S. revenues of $600 million to $1 billion through expanded indications and compendia listings.

Guidance
ADC Therapeutics expects several catalysts in 2025 and 2026, including top-line results from the LOTIS-5 trial by late 2025 and a potential BLA submission in early 2026. The company also plans to finalize IND-enabling activities for its PSMA-targeting ADC by year-end. Cash runway is expected to last into 2028, despite a Q2 2025 net loss of $56.6 million driven by restructuring and R&D costs. Non-GAAP operating expenses totaled $47.8 million.

Additional News
In Nigeria, political and economic developments dominated recent headlines. The Accountant General of Nasarawa State denied allegations of political involvement ahead of the 2027 general elections. Meanwhile, fuel consumption in June 2025 dropped to 1.44 billion litres, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Cattle breeders in Oyo State threatened to halt livestock sales over anti-grazing laws, while police in Kano and Edo states mandated peace accords ahead of by-elections.

Nigerian Correctional Service revealed a severe mental health crisis in its facilities, with 8,244 inmates suffering from mental illness. The Nigerian Air Force reported over 1,500 operational flight hours and the elimination of 592 terrorists in Borno State. Internationally, Schneider Electric was named the world’s most sustainable company, while Israel announced plans for a new offensive in Gaza.