Xencor 2025 Q1 Earnings Misses Targets as Net Income Improves 34.4%

Xencor(XNCR) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Xencor's Q1 2025 earnings revealed a quarterly loss of $0.66 per share, slightly missing the Zacks Consensus Estimate of a loss of $0.63 per share. The company exceeded revenue expectations, reporting $32.73 million, surpassing the Zacks Consensus Estimate by a significant margin. Looking forward, Xencor anticipates ending 2025 with cash ranging from $535 million to $585 million, in line with previous guidance. Despite missing EPS expectations, the revenue beat and stable cash guidance highlight the company’s potential for strategic growth.

Revenue

The total revenue of Xencor increased by 104.6% to $32.73 million in 2025 Q1, up from $16 million in 2024 Q1.

Earnings/Net Income

Xencor narrowed losses to $0.66 per share in 2025 Q1 from a loss of $1.20 per share in 2024 Q1 (45.0% improvement). Meanwhile, the company successfully narrowed its net loss to $-48.63 million in 2025 Q1, reducing losses by 34.4% compared to the $-74.12 million net loss reported in 2024 Q1. The EPS reflects a moderate improvement in financial performance.

Price Action

The stock price of Xencor has dropped 6.72% during the latest trading day, has plummeted 27.54% during the most recent full trading week, and has tumbled 8.11% month-to-date.

Post-Earnings Price Action Review

Investors employing the strategy of buying Xencor (XNCR) shares after a revenue increase quarter-over-quarter and holding for 30 days have seen a mere 0.10% return over the past five years. This performance has significantly underperformed the benchmark, which achieved an 84.08% return. The strategy's Sharpe ratio stands at 0.00, indicating no risk-adjusted returns. Furthermore, the strategy suffered a maximum drawdown of -16.79%, highlighting its high risk and negative returns during market downturns. The combination of minimal gains and substantial risk suggests reconsideration of this strategy in favor of more stable investment approaches.

CEO Commentary

Xencor's President and Chief Executive Officer, Bassil Dahiyat, Ph.D., highlighted the promising interim Phase 1 results for XmAb942, indicating its potential as a high-potency anti-TL1A antibody with a convenient 12-week dosing regimen for ulcerative colitis patients. He expressed confidence in initiating the Phase 2b XENITH-UC study later this year and advancing an XmAb TL1A x IL23p19 bispecific antibody into Phase 1 in 2026. Dr. Dahiyat emphasized that the company will continue to provide updates across its oncology and autoimmune pipelines throughout 2025, reflecting an optimistic outlook for ongoing developments.

Guidance

Xencor anticipates ending 2025 with cash and cash equivalents between $535 million and $585 million. The company expects to initiate the Phase 2b XENITH-UC study for XmAb942 in the second half of 2025 and plans to advance the XmAb TL1A x IL23p19 bispecific antibody candidate into Phase 1 trials in 2026. The emphasis on strategic clinical development and financial stability underscores the company's commitment to its growth trajectory and market positioning.

Additional News

Xencor recently appointed Todd Simpson to its board of directors, bringing extensive experience in finance and operations strategy. Additionally, Nancy Valente, M.D., will transition from her role as chief development officer to a senior advisory position in June 2025, after reshaping the clinical strategy for oncology programs. The company also earned milestone payments from Incyte Corporation and Vir Biotechnology, showcasing progress in partnerships. These developments highlight Xencor's strategic moves in leadership and partnerships, aiming to enhance its clinical and financial positioning in the industry.