Xilio Therapeutics, Inc. (XLO) Reports Q2 Loss, Misses Revenue Estimates

Financial Performance - Xilio Therapeutics reported a quarterly loss of $0.16 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.08, and improved from a loss of $0.24 per share a year ago [1] - The company posted revenues of $8.08 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 10.38%, and showing significant growth from year-ago revenues of $2.36 million [2] - Over the last four quarters, Xilio Therapeutics has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates [2] Stock Performance - Xilio Therapeutics shares have declined approximately 25.2% since the beginning of the year, contrasting with the S&P 500's gain of 10% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $25.56 million, and for the current fiscal year, it is -$0.23 on revenues of $103.74 million [7] - The trend of estimate revisions for Xilio Therapeutics was unfavorable prior to the earnings release, which may impact future stock movements [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Xilio Therapeutics belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could be a useful metric for investors [5]