ADC Therapeutics 2025 Q3 Earnings Narrows Losses Amid Revenue Decline

ADC Therapeutics (ADCT) reported fiscal 2025 Q3 earnings on Nov 10, 2025, with results beating analyst expectations for net income despite a revenue decline. The company narrowed its net loss by 6.8% year-over-year and secured $60 million in financing to extend its cash runway. Guidance remains aligned with prior expectations, focusing on clinical trial milestones and regulatory advancements for ZYNLONTA.

Revenue

ADC Therapeutics’ total revenue decreased by 11.0% to $16.43 million in Q3 2025, driven by lower sales volumes. Product revenues accounted for the majority at $15.75 million, while license revenues and royalties contributed $677,000. The decline reflects challenges in maintaining sales momentum despite price increases.

Earnings/Net Income

The company reduced its net loss to $40.97 million ($0.30 per share) in Q3 2025, a 28.6% improvement from $43.97 million ($0.42 per share) in Q3 2024. While this marks progress, ADC Therapeutics has sustained losses for four consecutive years, underscoring ongoing financial pressures.

Price Action

ADCT’s stock rose 4.47% on the latest trading day but fell 8.28% month-to-date, reflecting mixed investor sentiment post-earnings.

Post-Earnings Price Action Review

A strategy of buying ADCT shares on revenue announcement dates and holding for 30 days showed average gains of 12.5% in backtests, though with a maximum drawdown of 10.8%. This suggests the stock’s volatility can be managed while capturing momentum from positive earnings events.

CEO Commentary

CEO Ameet Mallik highlighted the $60 million PIPE financing as a strategic win, enabling ZYNLONTA’s commercial expansion. The CEO emphasized advancing the drug into earlier therapy lines for lymphoma, supported by upcoming data from LOTIS-7 and LOTIS-5 trials. Confidence in ZYNLONTA’s growth and operational efficiency remains strong.

Guidance

ADC Therapeutics expects LOTIS-7 data by year-end 2025, LOTIS-5 topline results in 1H 2026, and potential sBLA submission for ZYNLONTA in 2L+ DLBCL if trials are positive. The $60 million financing extends cash runway to 2028, aligning with strategic priorities.

Additional News

ADC Therapeutics secured $60 million in financing led by TCGX, extending its cash runway to 2028 and supporting ZYNLONTA’s commercial expansion. The CEO reiterated ZYNLONTA’s peak U.S. revenue potential of $600M–$1B. Phase 2 trial data for ZYNLONTA in follicular lymphoma showed an 83.6% complete response rate. The company also announced IND-enabling activities for a PSMA-targeting ADC to conclude by late 2025.

Key Financials and Operational Highlights

• Revenue Decline: Q3 2025 revenue fell 11.0% to $16.43 million, driven by lower sales volumes.

• Loss Reduction: Net loss improved to $40.97 million ($0.30/share) from $43.97 million ($0.42/share) year-over-year.

• Financing: $60 million PIPE financing strengthens balance sheet and funds ZYNLONTA expansion.

• Clinical Catalysts: LOTIS-7 data expected by year-end 2025; LOTIS-5 topline results in 1H 2026.

• Cash Runway: Extended to 2028 post-financing, supporting strategic priorities.

Analyst Outlook

Analysts maintain a “strong buy” rating, with a median 12-month price target of $7.50 (46.1% above the Nov 7 closing price). The stock’s volatility and clinical milestones position it for long-term growth if trials meet expectations.

Conclusion

ADC Therapeutics navigated a revenue decline while reducing losses and securing critical financing. With key clinical data pending and a strengthened balance sheet, the company remains focused on ZYNLONTA’s expansion and regulatory milestones, offering both near-term catalysts and long-term growth potential.