ADC Therapeutics (NYSE:ADCT) is one of the best growth stocks to buy right now. On March 10, ADC Therapeutics reported its financial and operational results for Q4 and the full-year 2025, highlighting upcoming clinical milestones for its lead product, ZYNLONTA. The company recorded Q4 net product revenue of $22.3 million and full-year revenue of $73.6 million, driven by stable demand and higher selling prices. With $261.3 million in cash and cash equivalents as of December 31, 2025, the company expects its ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39071 ADC Therapeutics SA (Exact name of registrant as specified in its charter) Switzerland Not Applicable (State ...

Core Insights - ADC Therapeutics is focusing on expanding ZYNLONTA while significantly reducing costs, with a strategy that includes multiple clinical and regulatory catalysts expected in 2026 and 2027 [4][5][15] Financial Performance - In Q4 2025, net product revenue was $22.3 million, an increase from $16.4 million in Q4 2024, while full-year net product revenue reached $73.6 million, compared to $69.3 million in 2024 [12][14] - The company reported a Q4 GAAP net loss of $6.4 million, improving from a net loss of $30.7 million in Q4 2024, and a full-year net loss of $142.6 million, down from $157.8 million in 2024 [14] - Total operating expenses were $41.0 million in Q4 and $202.9 million for the full year, with adjusted operating expenses down 15% and 6% year-over-year, respectively [13] Strategic Focus - The company has implemented a plan for optimized lifecycle management of ZYNLONTA, including the Phase III LOTIS-5 study and the bispecific combination study LOTIS-7 [3][5] - ADC Therapeutics has reduced its operating cost structure by approximately 50% as part of its restructuring efforts [3][5] Clinical Programs - Management emphasized the expansion into second-line-plus DLBCL as a primary growth opportunity, with LOTIS-5 top-line data expected in Q2 2026 [7][18] - In LOTIS-5, an overall response rate of 80% and a complete response rate of 50% were reported, supporting the potential for a regimen combining ZYNLONTA with rituximab [8] - LOTIS-7 has expanded target enrollment to approximately 100 patients, with a reported 90% best overall response rate and a 78% complete response rate [9] Balance Sheet and Future Outlook - The company ended 2025 with $261.3 million in cash and cash equivalents, up from $250.9 million at the end of 2024, supported by $100 million and $60 million PIPE financings [15] - Management believes it has laid the foundation for multiple anticipated value-creating catalysts ahead, with a strengthened cash runway supporting execution for potential growth beginning in 2027 [15]

Core Insights - ADC Therapeutics has set a peak revenue target for ZYNLONTA between $600 million and $1 billion as it advances clinical trials LOTIS-5 and LOTIS-7 [2] Management Strategy - CEO Ameet Mallik emphasized a strategic focus on ZYNLONTA, which includes optimized life cycle management and the advancement of clinical trials [2] - The company aims to reduce operating costs by concentrating its efforts on ZYNLONTA and related trials [2]

Financial Data and Key Metrics Changes - In Q4 2025, net product revenues were $22.3 million, up from $16.4 million in Q4 2024, indicating a strong performance [21] - For the full year 2025, net product revenues reached $73.6 million, compared to $69.3 million in 2024, showing stability in revenue generation [21] - Total operating expenses for Q4 2025 were $41 million, while for the full year, they were $202.9 million, reflecting a disciplined approach to cost management [21][22] - The net loss for Q4 2025 was $6.4 million, significantly reduced from a loss of $30.7 million in Q4 2024 [22][23] Business Line Data and Key Metrics Changes - The focus on ZYNLONTA has led to a refined go-to-market model, maintaining its position in the third-line plus DLBCL setting despite increased competition from bispecific therapies [5][6] - The company anticipates significant growth opportunities in the second-line plus DLBCL setting with LOTIS-5, expecting to share top-line data in Q2 2026 [8][10] Market Data and Key Metrics Changes - The treatment landscape for DLBCL is evolving, with a current 60/40 split between complex therapies and broadly accessible therapies, impacting market dynamics [15] - The company estimates that achieving a 10% market share in the second-line setting could translate to an additional $200 million to $300 million in revenue [20] Company Strategy and Development Direction - The strategic plan focuses on optimizing lifecycle management for ZYNLONTA, including advancing LOTIS-5 and initiating LOTIS-7 [5][6] - The company aims to establish ZYNLONTA as a backbone therapy in DLBCL, targeting peak annual revenues of $600 million to $1 billion with regulatory approvals and compendia listings [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's path forward, highlighting a strengthened balance sheet and a cash runway expected to last into 2028 [10][24] - The anticipated data catalysts in 2026 are expected to drive significant long-term growth, particularly with the LOTIS-5 and LOTIS-7 trials [25][26] Other Important Information - The company has successfully reduced its operating cost structure by approximately 50%, enhancing its strategic flexibility [5][6] - The amendment to the royalty purchase agreement with HealthCare Royalty reflects the company's confidence in ZYNLONTA's long-term value [9][10] Q&A Session Summary Question: How are PFS events tracking for LOTIS-5? - Management is confident in the Q2 timing for the top-line readout and will share primary and secondary endpoints at that time [29][30] Question: Is the $200-$300 million opportunity for LOTIS-5 conservative? - Management believes the profile seen in the safety run-in supports a meaningful role in the second-line plus DLBCL market, with potential for higher peak sales depending on clinical outcomes [34][35] Question: What is the expected R&D spend moving forward? - R&D expenses are expected to decrease in 2026 and 2027, assuming the current number of trials remains stable [42][44] Question: How will capital allocation priorities be managed? - The company is focused on driving ZYNLONTA growth and has allocated capital for ongoing trials and pre-launch activities [48][50] Question: What is the current commercial run rate for ZYNLONTA? - The company has maintained its market share despite increased competition, with expectations for significant sales growth following LOTIS-5 approval [58][59]

Financial Data and Key Metrics Changes - ZYNLONTA net product revenues in Q4 2025 were $22.3 million, up from $16.4 million in Q4 2024, with full-year revenues at $73.6 million compared to $69.3 million in 2024 [21][22] - Total operating expenses were $41 million for Q4 2025 and $202.9 million for the full year, with adjusted operating expenses down 15% for Q4 and 6% for the full year compared to the previous year [21][22] - The net loss for Q4 2025 was $6.4 million, significantly reduced from a net loss of $30.7 million in Q4 2024, while the full-year net loss was $142.6 million compared to $157.8 million in 2024 [22][23] Business Line Data and Key Metrics Changes - The company focused on ZYNLONTA, optimizing lifecycle management and advancing clinical trials such as LOTIS-5 and LOTIS-7, which are expected to drive future growth [5][6] - The performance in Q4 was strong, driven by variability in customer ordering patterns and activation of new accounts, indicating a positive trend in sales [8] Market Data and Key Metrics Changes - The company anticipates a peak annual U.S. revenue opportunity for ZYNLONTA of $600 million to $1 billion, contingent on regulatory approval and compendia inclusion [7][11] - The treatment landscape for DLBCL is evolving, with a current 60/40 split between complex therapies and broadly accessible therapies, indicating a competitive market environment [15] Company Strategy and Development Direction - The strategic plan focuses on establishing ZYNLONTA as a backbone therapy in DLBCL, with significant patient benefits expected in indolent lymphomas [6][11] - The company aims to maintain a strong market position despite increased competition from bispecific therapies, leveraging its differentiated clinical profile [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving key milestones in 2026, including top-line data for LOTIS-5 and further data for LOTIS-7, which are critical for future growth [25][26] - The company believes it has laid a solid foundation for long-term growth, with a strengthened balance sheet and a cash runway extending into 2028 [10][24] Other Important Information - The company has made significant progress in reducing operating costs by approximately 50% while enhancing its leadership and talent across the organization [5][6] - An amendment to the royalty purchase agreement with HealthCare Royalty has provided greater strategic flexibility for the company [10] Q&A Session Summary Question: How are PFS events tracking for LOTIS-5? - Management is confident in the Q2 timing for the top-line readout and will share primary and secondary endpoints at that time [29][30] Question: Is the $200-$300 million opportunity for LOTIS-5 conservative? - Management believes the profile seen in the safety run-in supports a meaningful role in the second-line DLBCL market, with potential for higher peak sales depending on clinical outcomes [34][35] Question: What is the expected R&D spend moving forward? - R&D expenses are expected to decrease in 2026 and 2027, assuming the current number of trials remains stable [42][44] Question: How should capital allocation priorities be viewed? - The company is focused on driving ZYNLONTA growth and has allocated capital for ongoing trials and pre-launch activities, with strategic flexibility provided by the amended royalty agreement [48][50] Question: What is the current commercial run rate for ZYNLONTA? - The company has maintained its market share despite increased competition, with expectations for significant sales growth following LOTIS-5 approval [58][59]

Financial Data and Key Metrics Changes - In Q4 2025, net product revenues were $22.3 million, up from $16.4 million in Q4 2024, indicating a significant increase [23] - For the full year 2025, net product revenues reached $73.6 million, compared to $69.3 million in 2024, showing stable performance [23] - Total operating expenses for Q4 2025 were $41 million, while for the full year, they were $202.9 million, reflecting a disciplined cost management approach [23] - The net loss for Q4 2025 was $6.4 million, a significant improvement from a net loss of $30.7 million in Q4 2024 [25] - The full year net loss was $142.6 million, down from $157.8 million in 2024, primarily due to reduced R&D expenses [25] Business Line Data and Key Metrics Changes - The company focused on ZYNLONTA, achieving a stable revenue stream in the third-line plus DLBCL setting, with a strong Q4 performance driven by new account activations [5][9] - The strategic reprioritization led to a reduction in operating costs by approximately 50%, enhancing the company's financial flexibility [5][8] Market Data and Key Metrics Changes - The company anticipates a peak annual revenue opportunity of $600 million to $1 billion for ZYNLONTA, contingent on regulatory approval and compendia inclusion [7][12] - The treatment landscape for DLBCL is evolving, with a current 60/40 split between complex therapies and broadly accessible therapies, indicating a competitive market environment [16] Company Strategy and Development Direction - The strategic plan focuses on optimizing lifecycle management for ZYNLONTA, including advancing LOTIS-5 and initiating LOTIS-7 [5][6] - The company aims to establish ZYNLONTA as a backbone therapy in second-line plus DLBCL, while also expanding into indolent lymphomas [6][12] - The management emphasized the importance of maintaining a strong cash position to support ongoing and future clinical trials [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant long-term growth starting in 2027, driven by anticipated data catalysts and regulatory approvals [28] - The company remains optimistic about the potential for ZYNLONTA to reach a broader patient population through expanded indications [12][19] Other Important Information - The company ended 2025 with a cash balance of $261 million, providing a cash runway into 2028 [26] - An amendment to the royalty purchase agreement with HealthCare Royalty was made, enhancing strategic flexibility [11] Q&A Session Summary Question: How are PFS events tracking for LOTIS-5? - Management is confident in the Q2 timing for the top-line readout and will share primary and secondary endpoints at that time [30][31] Question: Is the $200-$300 million opportunity for LOTIS-5 conservative? - Management believes the profile seen in the safety run-in supports a meaningful role in second-line plus DLBCL, with potential for higher sales if the clinical profile is favorable [35][36] Question: What is the expected R&D spend going forward? - R&D expenses are expected to decrease in 2026 and 2027, assuming the current number of trials remains stable [43][45] Question: How should capital allocation priorities be viewed? - The company is focused on driving ZYNLONTA growth and has allocated capital for ongoing trials and pre-launch activities [48][51] Question: What is the current commercial run rate for ZYNLONTA? - Management is pleased with maintaining market share despite increased competition and anticipates significant sales growth with LOTIS-5 approval [60][61]

4Q FY 2025 Earnings Call March 10, 2026 Agenda 01 Business Update Ameet Mallik Chief Executive Officer 02 Financial Update Pepe Carmona Chief Financial Officer 03 Q&A 2 Forward-Looking Statements This presentation and any accompanying oral presentation have been prepared by ADC Therapeutics SA ("ADC Therapeutics", "we" or "us") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by th ...

Financial Performance - Fourth quarter 2025 net product revenue was approximately $22.3 million, and full year revenue was $73.6 million, compared to $16.4 million and $69.3 million for the same periods in 2024, reflecting a quarter-over-quarter increase driven by variability in customer ordering[8] - Product revenues for Q4 2025 reached $22,312,000, a 36% increase from $16,386,000 in Q4 2024[36] - Total revenue for the year 2025 was $81,357,000, compared to $70,837,000 in 2024, reflecting a 15% growth[36] - The net loss for the fourth quarter 2025 was $6.4 million, or $0.04 per share, compared to a net loss of $30.7 million, or $0.29 per share in the same period of 2024[14] - The net loss for Q4 2025 was $6,409,000, significantly improved from a net loss of $30,727,000 in Q4 2024[36] - The adjusted net loss for the twelve months ended December 31, 2025, was $91,675,000, a decrease from $111,379,000 in 2024, reflecting a reduction of approximately 17.7% year-over-year[41] - The net loss per share, basic and diluted, for the twelve months ended December 31, 2025, was $1.12, down from $1.62 in 2024, showing a 30.9% improvement[41] Research and Development - Research and Development (R&D) expenses decreased to $18.2 million for the fourth quarter and $104.0 million for the full year 2025, down from $27.1 million and $109.6 million in 2024, primarily due to reduced spending on discontinued programs[9] - Research and development expenses for the year 2025 were $104,005,000, a slight decrease from $109,633,000 in 2024[36] - The company plans to assess regulatory and compendia strategies for ongoing investigator-initiated trials evaluating ZYNLONTA in additional B-cell malignancies[7] Cash and Liquidity - Cash and cash equivalents as of December 31, 2025, were $261.3 million, up from $250.9 million at the end of 2024, providing a cash runway expected to last at least into 2028[16] - The company anticipates a cash runway extending at least to 2028, assuming minimum liquidity requirements are maintained[34] - Cash and cash equivalents increased to $261,338,000 as of December 31, 2025, up from $250,867,000 in 2024[38] Operating Expenses - Total operating expenses for the fourth quarter 2025 were $41.0 million, down from $49.3 million in the same period of 2024, with adjusted total operating expenses at $39.4 million compared to $46.6 million in 2024[13] - Operating expenses decreased by 17% in Q4 2025 to $40,977,000 from $49,346,000 in Q4 2024[40] Strategic Initiatives - The company amended its HealthCare Royalty financing agreement, reducing the change of control payment from $750 million to $150 million through the end of 2027[17] - The company is undergoing a strategic reprioritization and restructuring plan approved by the Board of Directors on June 11, 2025, aimed at improving operational efficiency[41] - Restructuring charges for the twelve months ended December 31, 2025, amounted to $7,365,000, with no charges reported in 2024, highlighting a new strategic initiative[41] - Impairment charges for the twelve months ended December 31, 2025, were $5,755,000, with no charges in 2024, indicating asset write-downs associated with restructuring efforts[41] Clinical Trials - LOTIS-5 Phase 3 topline results are anticipated in the second quarter of 2026, with full results expected by the end of 2026, and potential regulatory approval in mid-2027[4] - The LOTIS-7 trial reported an 89.8% best overall response rate and a 77.6% complete response rate among 49 efficacy evaluable patients[5] Shareholder Information - Share-based compensation expense for the three months ended December 31, 2025, was $1,937,000, compared to $2,779,000 in 2024, representing a decrease of 30.3%[41] - The weighted average shares outstanding, basic and diluted, increased to 127,067,540 for the twelve months ended December 31, 2025, from 97,159,966 in 2024, reflecting a 30.7% increase[41]

Core Insights - ADC Therapeutics reported financial results for Q4 and full year 2025, highlighting a net product revenue of approximately $22.3 million for Q4 and $73.6 million for the full year, showing an increase from $16.4 million and $69.3 million in 2024 respectively [1][2] - The company anticipates topline data from the LOTIS-5 Phase 3 trial in Q2 2026, with full results expected by the end of 2026, and potential regulatory approval in mid-2027 [1][2] - Cash and cash equivalents stood at $261.3 million as of December 31, 2025, providing a cash runway expected to last at least into 2028 [1][2] Financial Performance - Q4 2025 net product revenue was $22.3 million, up from $16.4 million in Q4 2024, while full year revenue increased to $73.6 million from $69.3 million [1][2] - R&D expenses decreased to $18.2 million for Q4 2025 from $27.1 million in Q4 2024, and full year R&D expenses were $104.0 million compared to $109.6 million in 2024 [1][2] - The net loss for Q4 2025 was $6.4 million, or $0.04 per share, significantly reduced from a net loss of $30.7 million, or $0.29 per share in Q4 2024 [2][4] Operational Updates - The LOTIS-5 trial is expected to provide topline results in Q2 2026, with a supplemental Biologics License Application (sBLA) submission planned for mid-2027, assuming positive results [1][2] - The LOTIS-7 trial is ongoing, with data expected by the end of 2026, showing an 89.8% overall response rate and a 77.6% complete response rate in preliminary results [1][2] - Ongoing investigator-initiated trials are expected to yield data on ZYNLONTA's efficacy in treating additional B-cell malignancies between late 2026 and mid-2027 [1][2] Strategic Developments - An amendment to the HealthCare Royalty financing agreement was made in February 2026, reducing the change of control payment significantly, which enhances strategic flexibility for the company [2][4] - The company raised $150.8 million through PIPE financing in 2025, strengthening its cash position [2][4] - ADC Therapeutics continues to focus on innovation in antibody drug conjugates, with ZYNLONTA being a key product in its portfolio [1][2]