Xencor Inc. reported its third‑quarter 2025 earnings on November 5, 2025, showing revenue of $21.0 million—an 18% year‑over‑year increase from $17.8 million in Q3 2024—while net loss attributable to Xencor narrowed to $6.0 million from a $46.3 million loss in the same period a year earlier. Cash, cash equivalents and marketable securities stood at $633.9 million as of September 30, 2025, down from $706.7 million at the end of 2024.
The company’s earnings beat consensus expectations by $0.64 per share, as the reported EPS of $‑0.08 surpassed the analyst consensus of $‑0.72. The beat was largely driven by a $41.5 million surge in other income—primarily unrealized gains on marketable securities—compared with $7.8 million in Q3 2024. Revenue, however, missed consensus estimates of $25.66 million to $27.15 million, falling short by $4.66 million to $6.15 million. The shortfall reflects a lower than expected royalty income from partners Alexion and Incyte, which, while still a primary revenue driver, did not reach the higher range projected by analysts.
Quarter‑over‑quarter comparisons show that Q2 2025 revenue was $43.6 million and the company posted a net loss of $0.41 million per share, indicating a significant acceleration in revenue growth and a reduction in loss intensity. The decline in research and development expenses to $54.4 million from $58.2 million in Q3 2024 was attributed to lower stock‑based compensation and the winding down of certain programs, which helped offset the higher royalty income.
Management reiterated its guidance, projecting that cash, cash equivalents and marketable securities will end 2025 between $570 million and $590 million, providing a runway to fund research and development through 2028. The company highlighted clinical milestones, noting that the first patient in its Phase 2b XENITH‑UC study of XmAb942 for ulcerative colitis and the first patient in a Phase 1b study of plamotamab for rheumatoid arthritis were dosed. It also confirmed plans to initiate first‑in‑human studies of XmAb657 in the second half of 2025 and the TL1A × IL‑23p19 bispecific XmAb412 in 2026.
Analyst consensus estimates for the quarter were $‑0.72 per share for EPS and $25.66 million to $27.15 million for revenue. The EPS beat and revenue miss underscore the company’s reliance on non‑operational gains to improve profitability, while the guidance signals confidence in maintaining a strong cash position and continued investment in its pipeline.
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