Xilio Therapeutics' Q2 Earnings Show Promising Pipeline Progress and Strong Financial Position

Xilio Therapeutics reported Q2 earnings with significant pipeline progress and financial results. The company announced a 26% objective response rate in a Phase 2 trial for vilastobart, demonstrating its potential as a combination therapy for metastatic colorectal cancer. Xilio also reported a substantial increase in collaboration and license revenue, driven by partnerships with AbbVie and Gilead, and completed a successful public offering, bolstering its cash reserves to $121.6 million. Despite a net loss of $15.8 million for the quarter, the company remains optimistic about its cash runway extending through Q3 2026.

Xilio Therapeutics, Inc. (Nasdaq: XLO) reported its fiscal 2025 Q2 earnings on August 14, 2025, highlighting significant pipeline progress and financial results. The company announced a 26% objective response rate in a Phase 2 trial for vilastobart, demonstrating its potential as a combination therapy for metastatic colorectal cancer. Additionally, Xilio reported a substantial increase in collaboration and license revenue, driven by partnerships with AbbVie and Gilead, and completed a successful public offering, bolstering its cash reserves to $121.6 million. Despite a net loss of $15.8 million for the quarter, the company remains optimistic about its cash runway extending through Q3 2026.

Key Financial Highlights

- Revenue Growth: Xilio posted a 243.0% year-over-year increase in total revenue, reaching $8.08 million in 2025 Q2, compared to $2.36 million in 2024 Q2. This sharp growth reflects progress in the company’s pipeline and strategic partnerships [1].
- Earnings Per Share (EPS): The company narrowed its per-share loss to $0.16 in 2025 Q2 from $0.24 in 2024 Q2, representing a 33.3% improvement in EPS. However, the net loss widened to $15.84 million from $13.93 million in the prior year, a 13.8% increase, highlighting the continued heavy investment in research and development [1].
- Collaboration and License Revenue: Total revenue of $11.0 million was driven by collaboration and license revenue from agreements with AbbVie and Gilead [2].
- Cash Reserves: Xilio's cash runway is estimated to extend through the end of Q3 2026, with $121.6 million in cash and cash equivalents as of June 30, 2025 [3].

Pipeline and Business Updates

- Vilastobart: Updated Phase 2 data presented at the 2025 ASCO Annual Meeting showed additional anti-tumor activity and a generally well-tolerated safety profile. Vilastobart is being evaluated in combination with atezolizumab in a Phase 1C combination dose escalation and a Phase 2 clinical trial for metastatic microsatellite stable colorectal cancer. The data demonstrated a preliminary 26% objective response rate in heavily pre-treated metastatic MSS CRC patients without liver metastases [3].
- XTX301: XTX301 is an investigational tumor-activated IL-12 designed to potently stimulate anti-tumor immunity and reprogram the TME of poorly immunogenic “cold” tumors towards an immunogenic state. The company is advancing this program in partnership with Gilead [3].
- Masked T Cell Engager Molecules: Xilio anticipates nominating its first development candidates for its wholly owned masked T cell engager programs in the second half of 2025 [3].

Outlook

Despite missing revenue estimates for four consecutive quarters and providing no future guidance, Xilio remains focused on its pipeline and strategic positioning. The company's CEO, René Russo, emphasized the company’s strong pipeline progress and strategic positioning after recent financing. Russo highlighted the development of masked T cell engager molecules, with first development candidates expected in 2025, and noted encouraging updates for XTX301 in partnership with Gilead [1].

Conclusion

Xilio Therapeutics reported mixed financial results for Q2 2025, with significant revenue growth and improved EPS, but a widening net loss. The company's pipeline progress, particularly the promising Phase 2 data for vilastobart, offers potential long-term growth opportunities. Despite the financial challenges, Xilio's strong cash position and strategic partnerships position it for continued clinical development and potential future success.

References

[1] https://www.ainvest.com/news/xilio-therapeutics-2025-q2-earnings-improved-eps-wider-net-loss-2508/
[2] https://www.tradingview.com/news/tradingview:824d6333f0a0a:0-xilio-therapeutics-inc-sec-10-q-report/
[3] https://www.biospace.com/press-releases/xilio-therapeutics-announces-pipeline-and-business-updates-and-second-quarter-2025-financial-results