Arcellx 2025 Q3 Earnings Widen Net Loss by 115.6% Despite Cash Runway to 2028

Arcellx (ACLX) reported Q3 2025 results that missed revenue estimates and widened losses, though the company reaffirmed its cash runway through 2028. The stock’s post-earnings price action showed mixed short-term volatility, while analysts remain divided on long-term potential.

Revenue

Arcellx’s total revenue plummeted 81.0% year-over-year to $4.95 million in Q3 2025, driven entirely by collaboration revenue from a related party. , primarily due to the completion of the iMMagine-1 trial. The absence of other revenue streams underscored the company’s reliance on partnership income.

Earnings/Net Income

, representing a 115.6% increase from $25.87 million in the same period of 2024. Earnings per share (EPS) turned to a loss of $0.99, . The deteriorating profitability reflects ongoing R&D and commercial readiness costs, despite slight R&D expense reductions.

Post-Earnings Price Action Review

The strategy of buying Arcellx shares on the date of its revenue raise and holding for 30 days yielded positive returns over the past three years, . This suggests that investors leveraging revenue raises as a signal have historically benefited, though recent price action has been volatile, .

CEO Commentary

Leadership emphasized progress in cell therapy programs for cancer and incurable diseases, noting reduced collaboration revenue due to the iMMagine-1 trial’s completion. While R&D expenses declined slightly, G&A costs rose to $31.6 million, driven by commercial readiness and personnel expenses. Management remains confident in $576.0 million in cash reserves to fund operations through 2028.

Guidance

Arcellx confirmed its cash runway will extend into 2028, citing current balances of $576.0 million in cash, cash equivalents, and marketable securities. The company did not provide specific revenue or EPS guidance but reiterated commitments to advancing cell therapy pipelines and managing operational costs.

Additional News

Recent analyst activity highlights mixed sentiment: Canaccord Genuity raised its price target to $130 (44.04% upside) with a “buy” rating, while Weiss Ratings issued a “sell (D-).” Institutional ownership increased, with CWM LLC and PNC Financial boosting stakes. Insider sales, , contrasted with net inflows from institutional investors.

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