Xilio Therapeutics 2025 Q3 Earnings Net Loss Widens Despite 742.5% Revenue Surge

Xilio Therapeutics (XLO) reported fiscal 2025 Q3 earnings on Nov 13, 2025, showcasing a 742.5% year-over-year revenue surge to $19.07 million but widening net losses. The stock’s post-earnings price action revealed volatility, while clinical and partnership progress underscored long-term potential.

Revenue

Collaboration and license revenue surged to $19.07 million, accounting for the entire $19.07 million total revenue, a 742.5% increase from $2.26 million in 2024 Q3. This growth was driven by strategic partnerships, including milestone payments from Gilead and AbbVie, which significantly bolstered the company’s financial position.

Earnings/Net Income

Xilio narrowed its per-share loss to $0.11 from $0.22 (50.0% improvement), but net losses widened to $16.29 million, a 16.2% increase from $14.02 million in 2024 Q3. Despite EPS improvement, the net loss expansion reflects higher R&D spending and operational costs.

Post-Earnings Price Action Review

A backtested strategy of buying XLO shares on revenue raises and holding for 30 days yielded a 20.7% return over 36 months but exhibited 30.5% volatility. Quarterly performance varied: Q3 2023 saw a 25% gain from a revenue beat, while Q2 2024 dropped 15% amid market corrections. Clinical milestones, like the 40% ORR in MSS mCRC trials, and regulatory updates were key drivers, though market sentiment and sector trends caused sharp swings.

CEO Commentary

René Russo highlighted progress in masked immunotherapy pipelines, including vilastobart’s 40% ORR in MSS mCRC and efarindodekin alfa’s favorable safety profile. The CEO emphasized advancing XTX501 toward an IND submission by mid-2026 and pursuing partnerships for combination therapies.

Guidance

Xilio expects cash runway through Q1 2027, supported by $103.8 million in cash as of Sept 30, 2025. Key milestones include submitting an IND for XTX501 by mid-2026 and advancing two masked T cell engager programs into IND-enabling studies by 2027.

Additional News

1. Collaboration Expansion: Xilio secured a $75 million transition fee option with Gilead for efarindodekin alfa and received $17.5 million in milestone payments.

2. Clinical Updates: Phase 2 vilastobart data demonstrated a 40% ORR in MSS mCRC patients with high plasma TMB, while efarindodekin alfa showed tolerability at high doses.

3. Regulatory Filings: The 10-Q report highlighted a $30.15 million operating loss improvement and $45.40 million net loss, attributed to R&D investments.

Analyst Outlook

Xilio’s stock, down 19% year-to-date, faces mixed sentiment. While two analysts rate it a “strong buy,” its Zacks Rank #3 (Hold) reflects cautious optimism. Near-term focus remains on clinical data releases, IND submissions, and partnership developments.