Xencor Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 25 February 2026: press release. Guidance figures: 2 new, 1 kept. The quarter’s numbers.

Key takeaways

Fourth quarter revenue fell sharply: Fourth quarter total revenue was $28.2 million, against $52.8 million a year earlier. Full year revenue was $125.6 million, up from $110.5 million. Source
Full year revenue rose on partner deals: The full year increase was primarily driven by revenue recognition associated with Alexion and Incyte license agreements. Source
R&D spend rose on pipeline programs: Full year R&D expenses were $239.4 million, against $227.7 million, partly offset by lower stock-based compensation. Fourth quarter R&D was $64.8 million. Source
Year-end 2025 cash lower than 2024: Cash, cash equivalents and marketable debt securities were $610.8 million at December 31, 2025, against $706.7 million a year earlier, in line with the January preliminary figure. Source
XmAb819 dose expansion enrolling: The dose-expansion portion of the XmAb819 Phase 1 study is enrolling, and dose optimization continues. Expansion cohorts in CRC, NSCLC and pRCC are now open. Source
Xtend patent extends Ultomiris royalties: U.S. Patent 12,492,253 extends the term into December 2028. Management anticipates low-single digit royalties on Ultomiris net sales in the United States through that date. Source

“Xencor’s lead oncology drug candidate is XmAb819, a novel first-in-class T-cell engager that could offer a much-needed new therapeutic modality for patients with advanced clear cell renal cell carcinoma (ccRCC).”
Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor

Guidance

Area	Period	Figure	Against last quarter
Year-end cash, cash equivalents and marketable debt securities Source	year-end 2026	$400 million to $430 million	New
Cash runway Source	through 2028	through 2028	Kept
Royalty revenue above OMERS caps Source	extended patent term through 2028	$100 million to $120 million in aggregate	New

What changed from last quarter

New guidance: Year-end 2026 cash range of $400 million to $430 million added. The January release gave only a preliminary year-end 2025 cash figure of about $611 million. Source
New guidance: Royalty revenue estimate above OMERS caps added for the extended patent term through 2028. Source
New: U.S. Patent 12,492,253, covering the Xtend Fc domain, was issued in December 2025. The January release did not mention it. Source
New: Tumor expansion cohorts in CRC, NSCLC and pRCC are now open to enrollment. The January release planned to initiate them during 2026. Source
New: Poster on preclinical combinations of XmAb808 with CD3 bispecific antibodies planned for 1H26. The January release did not list XmAb808. Source

Results and revenue drivers

Fourth quarter revenue fell sharply: Fourth quarter total revenue was $28.2 million, against $52.8 million a year earlier. Full year revenue was $125.6 million, up from $110.5 million. Source
Full year revenue rose on partner deals: The full year increase was primarily driven by revenue recognition associated with Alexion and Incyte license agreements. Source
Net loss smaller on other income: Net loss attributable to Xencor was $6.7 million, or $(0.09) per diluted share, in the fourth quarter, against $45.6 million, or $(0.62), a year earlier. Other income was driven by equity securities gains. Source

Operating costs

R&D spend rose on pipeline programs: Full year R&D expenses were $239.4 million, against $227.7 million, partly offset by lower stock-based compensation. Fourth quarter R&D was $64.8 million. Source
G&A held roughly flat: G&A was $63.6 million for the full year, against $61.2 million, and $17.0 million in the fourth quarter, against $14.9 million. Source

“In 2026, we plan to present additional key clinical data and progress updates as we also advance XmAb541 and our ongoing B-cell depleting autoimmune programs, respectively.”
Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor

Cash position and balance sheet

Year-end 2025 cash lower than 2024: Cash, cash equivalents and marketable debt securities were $610.8 million at December 31, 2025, against $706.7 million a year earlier, in line with the January preliminary figure. Source
Royalty liabilities declined year on year: Liabilities related to the sales of future royalties were $76.5 million long-term at December 31, 2025, down from $115.2 million. Stockholders' equity was $635.6 million, against $674.0 million. Source

Oncology pipeline: XmAb819 and XmAb541

XmAb819 dose expansion enrolling: The dose-expansion portion of the XmAb819 Phase 1 study is enrolling, and dose optimization continues. Expansion cohorts in CRC, NSCLC and pRCC are now open. Source
Earlier ccRCC response rate reported: In the January release, 25% of 20 efficacy-evaluable patients at predicted dose levels achieved a partial response, with a 70% disease control rate.

“Building on the early success in ccRCC, we recently opened additional dose expansion cohorts in other tumor types that have high ENPP3 expression: colorectal cancer, non-small cell lung cancer and papillary renal cell carcinoma.”
Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor

Autoimmune and inflammatory bowel disease programs

XENITH-UC enrollment progressing: Management said enrollment is progressing in the Phase 2b XENITH-UC study of XmAb942 in ulcerative colitis, with a progress update planned around year-end 2026. Source
XmAb412 first-in-human planned 2H26: XmAb412, a TL1A x IL23p19 bispecific, is planned to enter first-in-human study in 2H26. The company says it avoids dosing and formulary complexity of two separate drugs. Source
B-cell depleting programs updates planned: Plamotamab in Phase 1b for rheumatoid arthritis and XmAb657 in Phase 1 for idiopathic inflammatory myopathies are to have progress updates in 2H26. Source

Patent term and royalty income

Xtend patent extends Ultomiris royalties: U.S. Patent 12,492,253 extends the term into December 2028. Management anticipates low-single digit royalties on Ultomiris net sales in the United States through that date. Source
Earlier exclusivity extensions secured abroad: Regulatory extensions of exclusivity were previously secured in several EU countries, Japan and Australia. Source

Corporate priorities and 2026 timing

2026 priorities set in January: The January release said 2026 would bring key clinical data as oncology programs move toward late-stage development and autoimmune programs show proof-of-concept data.
Partner programs carry expected milestones: More than 20 candidates are in clinical development, and partners market multiple XmAb medicines. The January release anticipated updates on partner program milestones. Source

Coming up, as management said on 25 February 2026

XmAb819 dose-expansion data in 2H26: Management aims to present dose-expansion data for XmAb819 at a medical meeting in the second half of 2026. Source
XmAb819 pivotal study planned for 2027: A pivotal study of XmAb819 in ccRCC is planned to start during 2027. Source
XmAb942 healthy-volunteer results at DDW: Final Phase 1 healthy-volunteer results for XmAb942 to be presented as a poster at Digestive Disease Week, May 2-5, 2026. Source
XENITH-UC progress update at year-end: An update on progress in the XENITH-UC study of XmAb942 is planned around year-end 2026. Source
XmAb412 first-in-human study in 2H26: Initiation of a first-in-human study of XmAb412 is planned for the second half of 2026. Source
XmAb808 poster planned for 1H26: A poster on preclinical combinations of XmAb808 with CD3 engagers is planned at a medical meeting in the first half of 2026. Source

Figures management reported

Figure	Reported
R&D expense, full year 2025 Source	$239.4 million
Patent term, U.S. Patent 12,492,253 Source	Term extends into December 2028
Royalty revenue above OMERS caps, estimated Source	$100 million to $120 million

Risks management discussed

Demand: The royalty revenue estimate above OMERS caps rests on consensus sales forecasts for Ultomiris. Source

Earlier plans management reported on

On track: The company said it is on track to present these results at DDW in May 2026. Source
On track: The company said it is on track to present the XmAb412 preclinical characterization poster at DDW in May 2026. Source
Not stated: The CEO framed presenting dose-expansion data at a medical meeting in 2H26 as a goal. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Xencor Reports Fourth Quarter and Full Year 2025 Financial Results

-- XmAb819, novel first-in-class ENPP3 x CD3 T-cell engaging bispecific antibody, Phase 1 dose expansion in CRC, NSCLC and pRCC open to enrollment; on track to present clinical data to support a recommended Phase 3 dose in ccRCC in 2H26 --

-- Final results from healthy-volunteer study of Xmb942, Xtend™ TL1A antibody, and preclinical characterization of XmAb412, TL1A x IL23p19 XmAb® bispecific antibody, to be presented at DDW 2026 --

PASADENA,

Calif.--Feb. 25, 2026-- Xencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of cancer and autoimmune diseases, today reported financial results for the fourth quarter and full year ended December 31, 2025.

“Xencor’s lead oncology drug candidate is XmAb819, a novel first-in-class T-cell engager that could offer a much-needed new therapeutic modality for patients with advanced clear cell renal cell carcinoma (ccRCC). Excitement from the clinical community on our initial data from the dose-escalation study presented during ENA 2025 supports achieving our goal of presenting dose-expansion data during a medical meeting in the second half of 2026 and our plans to initiate a pivotal study during 2027,” said Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor. “Building on the early success in ccRCC, we recently opened additional dose expansion cohorts in other tumor types that have high ENPP3 expression: colorectal cancer, non-small cell lung cancer and papillary renal cell carcinoma.”

“In 2026, we plan to present additional key clinical data and progress updates as we also advance XmAb541 and our ongoing B-cell depleting autoimmune programs, respectively. Our TL1A pipeline in inflammatory bowel disease continues to advance, as well. We are making great progress with enrollment in our Phase 2b XENITH-UC study of XmAb942 and are excited to begin the first-in-human study of XmAb412, our novel TL1A x IL23p19 bispecific antibody in the second half of 2026. We are proud of our execution across an evolved clinical pipeline and of the Xencor team’s focus on designing proteins to deliver novel medicines for patients.”

Wholly Owned Pipeline Overview

XmAb819 (ENPP3 x CD3), a first-in-class, tumor-targeted T-cell engaging XmAb® 2+1 bispecific antibody in development for patients with advanced clear cell renal cell carcinoma (ccRCC). The dose-expansion portion of the ongoing Phase 1 study is enrolling patients and dose-optimization continues. Tumor expansion cohorts in colorectal cancer (CRC), non-small cell lung cancer (NSCLC) and papillary renal cell carcinoma (pRCC) are now open to enrollment. Xencor plans to present new clinical data to support a recommended Phase 3 dose in 2H26 and initiate a pivotal study of XmAb819 in ccRCC during 2027.
XmAb541 (CLDN6 x CD3), a first-in-class, tumor-targeted T-cell engaging XmAb 2+1 bispecific antibody in Phase 1 clinical development for patients with advanced gynecologic and germ cell tumors. Xencor plans to present new clinical data to support a

recommended Phase 3 dose in 2H26 and evaluate plans for a pivotal study of XmAb541 during 2027.

XmAb942 (Xtend™ anti-TL1A), a potential best-in-class, high-potency, extended half-life antibody in development for patients with inflammatory bowel disease. Xencor is conducting the global XENITH-UC Study, a Phase 2b study of XmAb942 in ulcerative colitis (UC). XENITH-UC is a randomized, double-blind, placebo-controlled trial in patients with moderate-to-severe UC, whose disease has progressed after at least one conventional or advanced therapy. Xencor is on-track to present final results from the Phase 1 study of XmAb942 in healthy volunteers in a poster titled “XmAb942, a Potential Best-in-class, Long-acting Anti-TL1A Antibody for the Treatment of Inflammatory Bowel Disease: Phase 1 Final Results” at Digestive Disease Week® (DDW), being held May 2-5, 2026 in Chicago and online, and to provide an update on progress achieved in the XENITH-UC study around year-end 2026.
XmAb412 (TL1A x IL23p19), a bispecific antibody for dual targeting of important inflammatory pathways in autoimmune and inflammatory disease, while avoiding the complexities of dosing and formulary access for two separate TL1A and IL23 targeted drugs. Xencor is on track to present the preclinical characterization of XmAb412 in a poster titled “Discovery and Characterization of XmAb412: A Novel, High-Affinity, Anti-TL1A x Anti-IL23 Native-like Bispecific Antibody With Extended Half-life for the Treatment of Inflammatory Bowel Disease” at DDW in May 2026 and to initiate a first-in-human study of XmAb412 in 2H26.
Plamotamab (CD20 x CD3), a clinical-stage, B-cell depleting bispecific T-cell engager in Phase 1 development for patients with rheumatoid arthritis (RA), who have progressed through prior standard-of-care treatment. Xencor plans to provide an update on progress achieved in the Phase 1b study of plamotamab in RA in 2H26.
XmAb657 (CD19 x CD3), a clinical-stage, potent, extended half-life B-cell depleting bispecific T-cell engager in Phase 1 development for patients with idiopathic inflammatory myopathies (IIM). Xencor plans to provide an update on progress achieved in the Phase 1 study of XmAb657 in 2H26.
XmAb808 (B7-H3 x CD28), a bispecific antibody designed to provide conditional co-stimulation of T cells when also bound to tumor cells. Xencor plans to present a poster characterizing preclinical combinations of XmAb808 with multiple CD3 T cell engaging bispecific antibodies at a medical meeting in 1H26.

Xtend U.S. Patent Term Extension: In December 2025, Xencor announced the issuance of U.S. Patent 12,492,253, which covers Xencor’s Xtend Fc domain for extending the half-life of antibodies targeting C5, with a term that extends into December 2028. Xencor anticipates receiving low-single digit royalties on net sales of Ultomiris® (ravulizumab-cwvz), an anti-C5 antibody engineered with a licensed Xtend Fc domain, into December 2028 in the United States. Ultomiris is a drug being developed and commercialized by Alexion Pharmaceuticals, Inc., and is a registered trademark of Alexion. Xencor previously secured regulatory extensions of exclusivity in several EU countries, Japan and Australia. Based upon consensus sales forecasts, Xencor estimates recognizing potential royalty revenue in excess of the caps under its royalty agreement with OMERS in the range of $100 million to $120 million in aggregate for the extended patent term through 2028.

Financial Guidance: Based on current operating plans, Xencor expects to end 2026 with between $400 million and $430 million in cash, cash equivalents and marketable debt securities, and to have sufficient cash resources to fund research and development programs and operations through 2028.

Financial Results for the Fourth Quarter and Full Year Ended December 31, 2025

Cash, cash equivalents, and marketable debt securities totaled $610.8 million as of December 31, 2025 compared to $706.7 million as of December 31, 2024.

Total revenue for the fourth quarter ended December 31, 2025 was $28.2 million compared to $52.8 million for the same period in 2024. Revenue for the full year ended December 31, 2025 was $125.6 million compared to $110.5 million for the same period in 2024. The increase in revenue in 2025 compared to 2024 was primarily driven by revenue recognition associated with Alexion and Incyte license agreements.

Research and development (R&D) expenses for the fourth quarter ended December 31, 2025 were $64.8 million compared to $51.1 million for the same period in 2024. R&D expenses for the full year ended December 31, 2025 were $239.4 million compared to $227.7 million for the same period in 2024. Increased R&D expenses in 2025 compared to 2024 were primarily driven by higher external and internal costs associated with pipeline programs, partially offset by lower stock-based compensation expense.

General and administrative (G&A) expenses for the fourth quarter ended December 31, 2025 were $17.0 million compared to $14.9 million for the same period in 2024. G&A expenses for the full year ended December 31, 2025 were $63.6 million compared to $61.2 million for the same period in 2024. G&A expenses in 2025 compared to 2024 remained relatively consistent.

Other income, net for the fourth quarter ended December 31, 2025 was $49.4 million compared to other expense, net of $31.4 million for the same period in 2024. Other income, net for the full year ended December 31, 2025 was $87.9 million compared to other expense, net of $56.5 million in the same period in 2024. Other income, net, in 2025 compared to other expense, net, in 2024 was primarily driven by a combination of realized and unrealized gains from marketable equity securities.

Net loss attributable to Xencor for the fourth quarter ended December 31, 2025 was $6.7 million or $(0.09) on a fully diluted per share basis compared to net loss of $45.6 million or $(0.62) on a fully diluted per share basis, for the same period in 2024. For the full year ended December 31, 2025 net loss attributable to Xencor was $91.9 million or $(1.24) on a fully diluted per share basis compared to net loss of $232.6 million or $(3.58) on a fully diluted per share basis, for the same period in 2024.

About Digestive Disease Week®

Digestive Disease Week® (DDW) is the largest international gathering of physicians, researchers, and academics in the fields of gastroenterology, hepatology, endoscopy, and gastrointestinal surgery. Jointly sponsored by the American Association for the Study of Liver Diseases (AASLD), the American Gastroenterological Association (AGA), the American Society for Gastrointestinal Endoscopy (ASGE), and the Society for Surgery of the Alimentary Tract (SSAT), DDW is an in-person and online meeting.

Digestive Disease Week® is a registered trademark of DDW, LLC.

About Xencor

Xencor is a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of patients with cancer and autoimmune diseases. More than 20 candidates engineered with Xencor's XmAb® technology are in clinical development, and multiple XmAb medicines are marketed by partners.

Xencor's XmAb engineering technology enables small changes to a protein’s structure that result in new mechanisms of therapeutic action. For more information, please visit www.xencor.com.

Forward-Looking Statements

Forward-looking statements notice

Certain statements contained in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not purely statements of historical fact, and can generally be identified by the use of words such as “potential,” “can,” “will,” “plan,” “may,” “could,” “would,” “expect,” “anticipate,” “seek,” “look forward,” “believe,” “committed,” “investigational,” “indicates,” “supports,” and similar terms, or by express or implied discussions relating to Xencor’s business, including, but not limited to, statements regarding our expectations regarding regulatory and partnership milestone achievements, clinical pipeline advancements , planned receipt and presentations of clinical data, including the expected timing thereof, and planned and ongoing clinical trials, including the expected timing thereof, projected financial resources and financial guidance, including estimated cash, cash equivalents and marketable debt securities at year end and cash runway for research and development programs and operations, expectations for and estimates of future royalty revenues, the quotations from Xencor's president and chief executive officer, and other statements that are not purely statements of historical fact. Such statements are made on the basis of the current beliefs, expectations, and assumptions of the management of Xencor and are subject to significant known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements and the timing of events to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such risks include, without limitation, the risks associated with the process of discovering, developing, manufacturing and commercializing drugs that are safe and effective for use as human therapeutics, the ability of publicly disclosed preliminary clinical trial data to support continued clinical development and regulatory approval for specific treatments, the risk of loss of key members of management, the risk that the fair value of our marketable equity securities will decline and the risks, uncertainties and other factors described under the heading “Risk Factors” in Xencor's Annual Report on Form 10-K for the year ended December 31, 2025 as well as Xencor's subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Xencor undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.

	December 31,
	2025	2024
Xencor, Inc.
Selected Consolidated Balance Sheet Data
(in thousands)
Cash, cash equivalents and marketable debt securities - current	$435,231	$449,846
Other current assets	164,590	127,755
Marketable debt securities - long term	175,602	256,833
Other long-term assets	100,072	117,511
Total assets	$875,495	$951,945
Total current liabilities	$95,907	$87,432
Liabilities related to the sales of future royalties - long term	76,482	115,159
Other long-term liabilities	67,519	75,328
Total liabilities	239,908	277,919
Total stockholders' equity	635,587	674,026
Total liabilities and stockholders’ equity	$875,495	$951,945

	Three Months Ended December 31,				Year Ended December 31,
	2025		2024		2025		2024
Xencor, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share amounts)
Revenue
Collaborations, milestones, and royalties	$28,237		$52,794		$125,576		$110,493
Operating expenses:
Research and development	64,824		51,056		239,434		227,686
General and administrative	17,041		14,916		63,644		61,215
Total operating expenses	81,865		65,972		303,078		288,901
Operating loss	(53,628)		(13,178)		(177,502)		(178,408)
Total other income (expense)	49,362		(31,405)		87,869		(56,515)
Loss before income tax expense and noncontrolling interest	(4,266)		(44,583)		(89,633)		(234,923)
Income tax expense	2,387		1,617		2,504		1,617
Net loss including noncontrolling interest	(6,653)		(46,200)		(92,137)		(236,540)
Net loss attributable to noncontrolling interest	-		(647)		(214)		(3,922)
Net loss attributable to Xencor, Inc.	$(6,653)		$(45,553)		$(91,923)		$(232,618)
Net loss per share attributable to Xencor, Inc. (basic and diluted)	$(0.09)		$(0.62)		$(1.24)		$(3.58)
Weighted-average shares used in calculating net loss per share (basic and diluted)		74,586		73,176		74,239		65,041
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on marketable debt securities	418		(2,464)		2,239		(1,954)
Comprehensive loss	(6,235)		(48,664)		(89,898)		(238,494)
Less: comprehensive loss attributable to the noncontrolling interest	-		(647)		(214)		(3,922)
Comprehensive loss attributable to Xencor, Inc.	$(6,235)		$(48,017)		$(89,684)		$(234,572)

Contacts
For Investors: Charles Liles cliles@xencor.com (626) 737-8118
For Media: Cassidy McClain Inizio Evoke cassidy.mcclain@inizioevoke.com (619) 694-6291