Allogene 2025 Q3 Earnings Narrows Loss by 37.5% to $-41.4M

Allogene Therapeutics (ALLO) reported its fiscal 2025 Q3 earnings on Nov 6, 2025, with results showing improved financial performance despite sustained losses. The company beat GAAP EPS estimates by $0.03, and operating expenses declined year-over-year, reflecting cost management efforts. Guidance indicated a cash runway extending into 2027, aligning with strategic advancements in pivotal trials like ALPHA3 and RESOLUTION.

Revenue

Allogene’s total revenue remained stable at $0 in 2025 Q3, unchanged from the prior year period.

Earnings/Net Income

Allogene narrowed its losses to $0.19 per share in Q3 2025, a 40.6% improvement from $0.32 in Q3 2024. The company reduced its net loss to $-41.40 million, a 37.5% decrease from $-66.29 million in the prior-year quarter. While this reflects progress in cost control, sustained losses over four years highlight ongoing financial challenges. The 37.5% reduction in net loss and 40.6% EPS improvement indicate progress in cost management and operational efficiency.

Price Action

The stock price of Allogene has dropped 4.98% during the latest trading day, has tumbled 13.22% during the most recent full trading week, and has plummeted 22.22% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Allogene (ALLO) shares on the date of quarterly earnings releases and holding for 30 days resulted in a significant loss. The 30-day holding period yielded an average return of -4.95%, with a maximum return of -1.63% and a minimum return of -6.68%. This indicates that this strategy was not profitable over the past three years, and it underperformed the market, as evidenced by the negative returns. Conclusion: Based on the backtest, the strategy of buying ALLO shares on the earnings release date and holding for 30 days has been unsuccessful, resulting in substantial losses. This approach may not be a viable option for investors looking to capitalize on the company's earnings announcements.

CEO Commentary

David Chang, M.D., Ph.D., CEO of Allogene, emphasized the transformative potential of allogeneic CAR T (AlloCAR T™) in redefining access to cell therapy, enabling earlier treatment, and simplifying delivery across diverse care settings. He highlighted insights from ex vivo manufacturing, which enhances consistency, safety, and quality in cell therapy production. Strategic priorities include advancing pivotal trials like ALPHA3 in LBCL and RESOLUTION in autoimmune disease, leveraging Dagger® technology to reduce lymphodepletion, and positioning Allogene as a scalable leader in allogeneic therapies. The CEO expressed optimism about the paradigm shift toward off-the-shelf treatments, underscoring progress beyond incremental improvements and aligning with market trends toward MRD-guided interventions.

Guidance

Allogene expects cash runway to extend into 2H 2027, with a projected $150M decrease in cash, cash equivalents, and investments for 2025. GAAP operating expenses are anticipated at ~$230M, including $45M in non-cash stock-based compensation. The company outlined milestones: futility analysis for ALPHA3 in 1H 2026, RESOLUTION trial proof-of-concept data in 1H 2026, and continued development of ALLO-316 in RCC. Forward-looking statements include no guarantees on trial timelines, regulatory approvals, or financial targets, with risks tied to clinical delays, manufacturing challenges, and third-party dependencies.

Additional News

Allogene’s licensor, Cellectis, faces a U.S. patent lawsuit, potentially impacting IP rights for its AlloCAR T™ platform. The company expanded its collaboration with Foresight Diagnostics to develop an MRD assay for cema-cel in the EU, UK, and Australia. Analysts maintain a “buy” rating, with a median price target of $7.50, 85% above the November 5 closing price.

Allogene Therapeutics, Inc. (ALLO) is advancing pivotal trials for cemacabtagene ansegedleucel (cema-cel) in LBCL and autoimmune diseases, positioning itself as a leader in scalable allogeneic therapies. The ALPHA3 trial, evaluating cema-cel as a first-line consolidation treatment, is expected to yield futility analysis in 1H 2026. Meanwhile, the RESOLUTION trial for ALLO-329 in autoimmune diseases is enrolling patients, with proof-of-concept data anticipated in 2026. The company’s focus on MRD-guided interventions aligns with evolving oncology standards, though risks from clinical and regulatory hurdles persist.