ADC Therapeutics 2025 Q3 Earnings Narrowed Losses and Extended Cash Runway

ADC Therapeutics reported Q3 2025 results that beat expectations on net income, with a 6.8% reduction in losses to $-40.97 million, and maintained a cash runway through 2028 via a $60 million financing. The CEO highlighted progress in ZYNLONTA trials and a $600M–$1B peak revenue outlook, while analysts remain bullish despite revenue declines.

Revenue

ADC Therapeutics’ total revenue declined 11.0% to $16.43 million in Q3 2025, driven by weaker sales volumes. Product revenues, the company’s core segment, fell to $15.75 million, while license and royalty income contributed $677,000. The decline reflects reduced demand despite higher pricing, underscoring ongoing commercial challenges.

Earnings/Net Income

The company narrowed its net loss to $-40.97 million ($0.30 per share) in Q3 2025, a 6.8% improvement from $-43.97 million ($0.42 per share) in Q3 2024. While losses persist, the 28.6% EPS improvement signals progress in cost management and operational efficiency, offering a modest positive signal amid sustained financial pressures.

Post-Earnings Price Action Review

The strategy of buying ADC Therapeutics shares on revenue announcement days and holding for 30 days historically yielded an average gain of 12.5%, though with a maximum drawdown of 10.8%. Recent price action showed a 4.47% intraday gain and an 8.28% monthly decline, reflecting mixed investor sentiment. The backtest highlights the stock’s volatility but suggests that strategic timing around earnings events could capture positive momentum, particularly as clinical milestones approach.

CEO Commentary

CEO Ameet Mallik emphasized ZYNLONTA’s commercial and clinical progress, including $15.8 million in net product revenues and key trial updates in DLBCL and indolent lymphomas. The $60 million financing extended the cash runway to 2028, enabling investment in ZYNLONTA’s expansion and pipeline development. The company remains optimistic about $600M–$1B peak U.S. sales, driven by second-line DLBCL and indolent lymphoma market opportunities.

Guidance

Management outlined key milestones, including H1 2026 top-line results from LOTIS-5 and potential BLA submission by H1 2027. LOTIS-7 interim data is expected by year-end 2025, with full results in H1 2027. Capital discipline and extended cash runway support ZYNLONTA’s regulatory and commercial ambitions, aligning with long-term revenue growth targets.

Additional News

ADC Therapeutics secured a $60 million private placement led by TCGX, extending its cash runway to 2028 and bolstering its balance sheet. The company also filed a 10-Q report detailing Q3 2025 operations and highlighted positive Phase II trial results for ZYNLONTA in follicular lymphoma, showing a 98.2% overall response rate. These updates underscore clinical progress and investor confidence despite ongoing losses.