Xencor (XNCR) came out with a quarterly loss of $0.41 per share versus the Zacks Consensus Estimate of a loss of $0.78. This compares to a loss of $1.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +47.44%. A quarter ago, it was expected that this biotech developing antibodies for severe autoimmune/allergic diseases and cancer would post a loss of $0.63 per share when it actually produced a loss of $0.66, delivering a surpr ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Xencor, Inc. (Exact name of registrant as specified in its charter) Delaware 20-1622502 (State or other jurisdiction of inco ...

Exhibit 99.1 Xencor Reports Second Quarter 2025 Financial Results PASADENA, Calif.--August 6, 2025-- 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 second quarter ended June 30, 2025 and provided recent business and clinical program updates. "Xencor is focused on execution of our clinical studies, evaluating four wholly owned XmAb® drug candidates in cancer a ...

XmAb® Fc Domain Technology - Xencor's XmAb® Fc domains augment native immune functions, preserve half-life, stability and production of antibodies[4] - XmAb® Fc domains are 99.5% identical to natural antibodies and can be easily substituted into any antibody[9] - Xencor has over 500 issued and pending patents worldwide related to XmAb® Fc domains[4] Bispecific Antibody Pipeline - Xencor has 6 XmAb bispecific antibodies in Phase 1 clinical studies[4] - XmAb23104 (PD-1 x ICOS) entered Phase 1 in May 2019, and XmAb22841 (CTLA-4 x LAG-3) initiation was anticipated in Q2 2019[4,39] - Novartis has a co-development and ex-U.S license for XmAb14045 (CD123 x CD3)[4] - Amgen's AMG 424 (CD38 x CD3) is in Phase 1 study in myeloma, and AMG 509 (Undisclosed x CD3) is advancing in prostate cancer[4,11,44] IL-15 Cytokine Program - Genentech has a co-development collaboration with Xencor for novel IL-15 cytokines[4] - The collaboration includes $120 million upfront and up to $160 million in XmAb24306 development milestone payments, and up to $180 million for each new IL-15 program[42] - The first IND submission for XmAb24306 is planned for H2 2019[4,42] Clinical Programs and Partnerships - Xencor has 13 XmAb clinical programs ongoing internally or with partners, including tafasitamab/MOR208 (Morphosys) in Phase 3 and Ultomiris™ (Alexion) approved in the U.S for the treatment of adult patients with PNH[4,11] - In a Phase 1 study of XmAb14045 in relapsed/refractory AML, 28% of evaluable patients achieved either complete remission (CR) or CR with incomplete hematologic recovery (CRi) at 2 highest initial doses (1.3 and 2.3 mcg/kg weekly)[29,34] Financial Status - Xencor had $650.5 million in cash at March 31, 2019, providing runway beyond 2024[46]

Core Viewpoint - Xencor reported a quarterly loss of $0.66 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.63, but an improvement from a loss of $1.11 per share a year ago [1][2] Financial Performance - The company posted revenues of $32.73 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 48.38% and significantly up from $12.81 million in the same quarter last year [3] - Xencor has surpassed consensus revenue estimates three times over the last four quarters [3] Stock Performance - Xencor shares have declined approximately 63.2% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.67 on revenues of $18.77 million, and for the current fiscal year, it is -$2.92 on revenues of $81.09 million [8] - The trend of estimate revisions for Xencor is mixed, which could change following the recent earnings report [7] Industry Context - The Medical - Drugs industry, to which Xencor belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Xencor reported Q1 2025 revenues of $32.7 million and a net loss of $48.4 million, a significant improvement from the prior year, with total assets at $904.7 million [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $904.7 million as of March 31, 2025, primarily due to reduced marketable debt securities, while liabilities and equity also declined Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $39,675 | $40,875 | | Marketable debt securities (current & long-term) | $653,836 | $665,804 | | Total assets | $904,689 | $951,945 | | **Liabilities & Equity** | | | | Total liabilities | $264,815 | $277,919 | | Liabilities related to sales of future royalties | $154,379 | $163,606 | | Total stockholders' equity | $639,874 | $677,611 | [Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2025 revenues more than doubled to $32.7 million, narrowing the operating loss to $43.2 million and significantly improving net loss to $48.4 million Q1 2025 vs Q1 2024 Performance (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$32,732** | **$15,997** | | Research and development | $58,578 | $56,873 | | General and administrative | $17,337 | $13,787 | | **Operating Loss** | **($43,183)** | **($54,663)** | | Asset impairment charges | ($4,865) | ($20,650) | | **Net Loss Attributable to Xencor** | **($48,418)** | **($73,440)** | | Net Loss Per Share (basic and diluted) | ($0.66) | ($1.20) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly decreased to $16.2 million in Q1 2025, resulting in a net decrease in cash of $1.3 million for the quarter Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($16,220) | ($56,859) | | Net cash provided by investing activities | $13,668 | $32,318 | | Net cash provided by financing activities | $1,249 | $1,787 | | **Net decrease in cash** | **($1,303)** | **($22,754)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail revenue recognition from collaborations, a $4.9 million asset impairment, the $154.4 million royalty liability, and ongoing patent litigation Q1 2025 Revenue by Partner (in thousands) | Partner | Revenue | Notes | | :--- | :--- | :--- | | Alexion | $15,469 | Non-cash royalty revenue for Ultomiris® | | Incyte | $15,263 | Includes $12.5M milestone and non-cash royalties for Monjuvi® | | Vir Bio | $2,000 | Milestone payment for tobevibart | | **Total** | **$32,732** | | - The company recorded a **$4.9 million** asset impairment charge in Q1 2025 related to its decision to pause further development of certain programs and reallocate resources[56](index=56&type=chunk) - In November 2023, the company sold rights to future royalties for Ultomiris and Monjuvi to OMERS. This transaction is accounted for as debt, with a remaining liability of **$154.4 million** as of March 31, 2025[59](index=59&type=chunk)[60](index=60&type=chunk)[64](index=64&type=chunk) - Xencor is a party to a patent infringement lawsuit initiated by Merus N.V. in August 2024. The company believes it has strong defenses but cannot guarantee a favorable outcome[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's clinical pipeline, significant Q1 2025 revenue increase driven by milestones, rising R&D expenses, and a strong liquidity position expected to fund operations into 2028 - The company's clinical pipeline is focused on advancing multiple drug candidates, including XmAb819 (renal cell carcinoma), XmAb541 (ovarian cancer), and XmAb942 (inflammatory bowel disease)[99](index=99&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk) Q1 2025 vs Q1 2024 Operating Results (in thousands) | Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $32,732 | $15,997 | $16,735 | | R&D Expenses | $58,578 | $56,873 | $1,705 | | G&A Expenses | $17,337 | $13,787 | $3,550 | | Operating Loss | ($43,183) | ($54,663) | $11,480 | - The increase in revenue for Q1 2025 was primarily due to a **$12.5 million** milestone from Incyte and a **$2.0 million** milestone from Vir Bio[112](index=112&type=chunk)[115](index=115&type=chunk)[126](index=126&type=chunk) - As of March 31, 2025, the company had **$693.5 million** in cash, cash equivalents, and marketable debt securities and believes these resources will fund operations into 2028[134](index=134&type=chunk)[140](index=140&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in the company's exposure to market risk have occurred since the prior fiscal year-end - There have been no material changes in the Company's exposure to market risk from the end of the previous fiscal year[143](index=143&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were ineffective as of March 31, 2025, due to material weaknesses in accounting for royalties and tax legislation, with a remediation plan underway - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2025[145](index=145&type=chunk) - The ineffectiveness was due to material weaknesses in controls related to accounting for the sale of future royalties (a non-routine transaction) and the evaluation of tax legislation[145](index=145&type=chunk) - Management has implemented a remediation plan that includes engaging third-party advisors for complex transactions and enhancing internal review processes[146](index=146&type=chunk)[147](index=147&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) Xencor is involved in a patent infringement lawsuit initiated by Merus N.V., asserting strong defenses against the allegations - Xencor is being sued by Merus N.V. for alleged patent infringement related to its antibody technologies[153](index=153&type=chunk) - Xencor has responded by filing a motion to dismiss and challenging the validity of the patents in question before the U.S. Patent and Trademark Appeal Board[153](index=153&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company faces increased risks from unfavorable global economic and political conditions, supply chain disruptions, and potential delays from government agency disruptions - The company's business is susceptible to unfavorable global economic conditions, political disruptions, and changes in international trade policy, which could strain suppliers and weaken demand[155](index=155&type=chunk)[156](index=156&type=chunk) - Disruptions at the FDA and other government agencies, caused by factors like budget issues or personnel shortages, could delay the review and approval of new products, negatively impacting the business[158](index=158&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section is not applicable for the current reporting period - Not applicable[159](index=159&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated Rule 10b5-1 or other trading arrangements during the quarter[162](index=162&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents and officer certifications - Lists all exhibits filed with the report, including officer certifications (31.1, 31.2, 32.1) and iXBRL data files (101, 104)[163](index=163&type=chunk)

[First Quarter 2025 Financial Results and Business Update](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results%20and%20Business%20Update) Xencor reported strong Q1 2025 financial results, advanced key programs, and provided positive financial guidance [Key Highlights & Management Commentary](index=1&type=section&id=Key%20Highlights%20%26%20Management%20Commentary) Xencor reported positive XmAb942 Phase 1 results supporting 12-week dosing for Phase 2b, and announced a key executive transition - Interim Phase 1 results for XmAb942 (anti-TL1A) support a 12-week subcutaneous maintenance dosing regimen, a potential improvement over first-generation anti-TL1A antibodies[2](index=2&type=chunk)[3](index=3&type=chunk) - A Phase 2b study of XmAb942 in ulcerative colitis, named XENITH-UC, is on track to be initiated in the second half of **2025**[2](index=2&type=chunk)[3](index=3&type=chunk) - Nancy Valente, M.D., Chief Development Officer, will retire from her role and transition to a senior advisor position in June **2025**[2](index=2&type=chunk)[3](index=3&type=chunk) - The company plans to advance an XmAb TL1A x IL23p19 bispecific antibody candidate into Phase 1 trials in **2026**[3](index=3&type=chunk) [Recent Program Updates](index=1&type=section&id=Recent%20Program%20Updates) Xencor provided program updates, including XmAb942's Phase 1 data supporting 12-week dosing and advancing a novel bispecific antibody - **XmAb942 (Xtend™ TL1A):** Interim Phase 1 results from a dose-escalation study in healthy volunteers showed the antibody was well tolerated and has an estimated human half-life of over **71 days**[5](index=5&type=chunk) - The Phase 2b XENITH-UC study will be a randomized, double-blind, placebo-controlled trial in patients with moderate-to-severe ulcerative colitis[6](index=6&type=chunk) - **XmAb TL1A x IL23p19:** A bispecific antibody targeting two inflammatory pathways is in lead selection, with GMP production campaigns initiated. First-in-human studies are expected to begin in **2026**[6](index=6&type=chunk) [Recent Partnership Developments](index=2&type=section&id=Recent%20Partnership%20Developments) Xencor recognized **$12.5 million** from Incyte and **$2.0 million** from Vir Biotechnology in Q1 2025 from key partnership milestones - **Incyte Corporation:** Earned a **$12.5 million** regulatory milestone payment after the FDA accepted for review a supplemental BLA for tafasitamab in relapsed or refractory follicular lymphoma[11](index=11&type=chunk) - **Vir Biotechnology, Inc.:** Earned a **$2.0 million** development milestone payment following the initiation of a Phase 3 study of tobevibart (using XmAb Fc technologies) for chronic hepatitis delta[11](index=11&type=chunk) [Additional Corporate Updates & Financial Guidance](index=2&type=section&id=Additional%20Corporate%20Updates%20%26%20Financial%20Guidance) Xencor appointed a new board member and projected **$535 million to $585 million** cash by year-end 2025, funding operations into **2028** - In March, Todd Simpson, former CFO at Seagen, was appointed to Xencor's board of directors[8](index=8&type=chunk) - The company expects to end **2025** with cash, cash equivalents, and marketable debt securities between **$535 million** and **$585 million**[8](index=8&type=chunk) - The current cash position is anticipated to fund research and development programs and operations into **2028**[8](index=8&type=chunk) [Financial Results for the First Quarter Ended March 31, 2025](index=2&type=section&id=Financial%20Results%20for%20the%20First%20Quarter%20Ended%20March%2031%2C%202025) Xencor's Q1 2025 revenue more than doubled to **$32.7 million**, narrowing net loss to **$48.4 million**, and maintaining **$693.5 million** in cash First Quarter Financial Performance | Financial Metric | Q1 2025 ($M) | Q1 2024 ($M) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | 32.7 | 16.0 | +104.4 | | **R&D Expenses** | 58.6 | 56.9 | +3.0 | | **G&A Expenses** | 17.3 | 13.8 | +25.4 | | **Net Loss** | (48.4) | (73.4) | +34.1 (Loss Reduced) | | **Net Loss Per Share** | (0.66) | (1.20) | +45.0 (Loss Reduced) | Selected Balance Sheet Data | Balance Sheet Item | March 31, 2025 ($M) | December 31, 2024 ($M) | | :--- | :--- | :--- | | **Cash, cash equivalents and marketable debt securities** | 693.5 | 706.7 | - The increase in R&D expenses was primarily due to increased spending on XmAb819 (ENPP3 x CD3), XmAb541 (CLDN6 x CD3), and XmAb657 (CD19 x CD3) programs[12](index=12&type=chunk) - The decrease in 'Other expense, net' to **$5.1 million** from **$19.5 million** in Q1 2024 was primarily due to lower asset impairment charges[13](index=13&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The company's financial statements detail its balance sheet position and operational performance for the first quarter of 2025 [Selected Consolidated Balance Sheet Data](index=5&type=section&id=Selected%20Consolidated%20Balance%20Sheet%20Data) As of March 31, 2025, Xencor reported total assets of **$904.7 million**, liabilities of **$264.8 million**, and **$693.5 million** in cash and equivalents Selected Consolidated Balance Sheet Data (in thousands) | (in thousands) | March 31, 2025 (Unaudited, $ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | **Cash, cash equivalents and marketable debt securities** | 693,511 | 706,679 | | **Total assets** | 904,689 | 951,945 | | **Total liabilities** | 264,815 | 277,919 | | **Total stockholders' equity** | 639,874 | 674,026 | [Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q1 2025, Xencor reported **$32.7 million** revenue, **$43.2 million** operating loss, and **$48.4 million** net loss, or **$(0.66)** per share Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended March 31, 2025 ($ thousands) | Three Months Ended March 31, 2024 ($ thousands) | | :--- | :--- | :--- | | **Revenue** | 32,732 | 15,997 | | **Total operating expenses** | 75,915 | 70,660 | | **Operating loss** | (43,183) | (54,663) | | **Net loss attributable to Xencor, Inc.** | (48,418) | (73,440) | | **Net loss per share (Basic and Diluted)** | (0.66) | (1.20) | | **Weighted-average shares outstanding** | 73,667,179 | 61,212,324 |

Forward-Looking Statements Certain statements contained in this presentation, other than statements of historical fact, may constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding Xencor's development plans and timelines; potential regulatory actions; expected use of cash resources; the timing and results of clinical trials; the plans and objectives of management for future operat ...

Xencor (XNCR) Update / Briefing April 29, 2025 05:00 PM ET Speaker0 Welcome to today's R and D call hosted by Xencor. At this time, all participants are in a listen only mode. After the speakers' presentation, we will conduct a question and answer session. I will now turn the call over to your host, Charles Lyles, Senior Director of Corporate Communications and Investor Relations. Speaker1 Thank you, and good afternoon. Earlier today, we issued a press release announcing positive interim results from our Ph ...

Group 1 - Xencor (XNCR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3] - The Zacks rating system is based on changes in earnings estimates, which are tracked through a consensus measure from sell-side analysts, reflecting the company's earnings outlook [2][6] - The upgrade suggests that Xencor's improving earnings outlook could lead to increased buying pressure and a rise in stock price [3][5] Group 2 - The correlation between earnings estimate revisions and stock price movements is strong, particularly due to institutional investors who adjust their valuations based on these estimates [4][6] - Xencor is projected to earn -$2.87 per share for the fiscal year ending December 2025, representing a year-over-year change of 19.8%, with a 21.3% increase in the Zacks Consensus Estimate over the past three months [8] - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10]