XNCR · Xencor, Inc.

Xencor's first quarter 2026 results reflect a significant net loss of $128.9 million, or $(1.71) per diluted share, compared to a net loss of $48.4 million, or $(0.66) per share, in the same period last year. The widening loss was driven by a sharp decline in revenue to $4.5 million from $32.7 million, which included a one-time $6.6 million reduction due to royalties on disputed U.S. sales from Alexion. Revenue in the prior year period also benefited from milestone payments from Incyte and Vir. Operating expenses increased modestly, with R&D spending rising to $64.7 million from $58.6 million, reflecting higher investment in pipeline programs, partially offset by lower stock-based compensation. G&A expenses remained relatively flat at $17.7 million. The most significant swing was in other expense, net, which totaled $50.8 million compared to $5.1 million in the prior year, primarily due to unrealized losses on an equity security. Despite the operating loss, Xencor maintains a strong balance sheet with $541.8 million in cash, cash equivalents, and marketable debt securities as of March 31, 2026, down from $610.8 million at year-end 2025. The company expects to end 2026 with between $380 million and $400 million in cash, providing runway into mid-2028. Management highlighted several upcoming catalysts, including expansion cohort data for XmAb819 in ccRCC and dose-escalation data for XmAb541 in 2H26, as well as the initiation of the first-in-human study for XmAb412 in 3Q26. The XENITH-UC Phase 2b study of XmAb942 is progressing with a blinded interim analysis expected around year-end 2026 and primary endpoint readout in 2H27. These milestones are critical for advancing Xencor's wholly owned pipeline and supporting potential pivotal studies in 2027.