ADC Therapeutics Reports Second Quarter 2026 Financial Results and Provides Operational Updates
Rhea-AI Summary
ADC Therapeutics (NYSE: ADCT) reported Q2 2026 net product revenue of $18.6 million (vs. $18.1 million in Q2 2025) and net loss of $16.6 million (vs. $56.6 million). License revenue was $0.6 million. Total operating expenses fell 29% to $44.7 million, driven mainly by lower R&D.
The company completed enrollment of the 100-patient LOTIS-7 trial of ZYNLONTA plus glofitamab and plans Breakthrough Therapy designation submissions. After an FDA pre-sBLA meeting raised benefit-risk concerns about the LOTIS-5 confirmatory trial, ADC Therapeutics is reassessing the regulatory path. Cash and equivalents were $219.1 million, with an expected runway at least into 2028. A strategic reorganization, including a 17% workforce reduction, is expected to deliver about $10 million in annualized cost savings.
Positive
- Net product revenue up to $18.6m in Q2 2026 vs. $18.1m in 2025
- Total operating expenses reduced 29% YoY to $44.7m in Q2 2026
- Net loss cut to $16.6m in Q2 2026 from $56.6m in 2025
- Adjusted total operating expenses down 22% YoY to $37.2m in Q2 2026
- Cash and cash equivalents of $219.1m with runway expected at least into 2028
- 17% workforce reduction expected to generate ~$10m annualized cost savings
- LOTIS-7 trial fully enrolled with 100 patients; data submitted to ASH and BTD planned
Negative
- ZYNLONTA LOTIS-5 raised FDA concerns on benefit-risk and clinical benefit verification
- License revenue for H1 2026 down to $1.4m from $6.4m in 2025
- Cost of product sales up to $2.3m in Q2 2026 from $0.8m in 2025
- Ongoing net losses of $16.6m in Q2 and $49.5m for H1 2026
- Workforce reduction of ~17% and related severance costs of $2.7m in Q2 2026
News Explained
The FDA’s pre-sBLA feedback leaves ADC Therapeutics assessing the regulatory path for LOTIS-5 because of stated benefit-risk concerns tied to an imbalance in Grade 5 events and marginal treatment benefit; ZYNLONTA remains available under accelerated approval as monotherapy in 3L+ DLBCL.
Market reaction after 2Q26 earnings report: ADCT -5.68%
Following this news, ADCT has declined 5.68%, reflecting a notable negative market reaction. The stock is currently trading at $1.16. Trading volume is exceptionally heavy at 60.7x the average, suggesting significant selling pressure.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 04 | Q1 earnings report | Positive | -3.9% | Quarterly results included revenue, loss, cash, and upcoming clinical milestones. |
| Mar 10 | FY2025 earnings report | Positive | +13.5% | Full-year results included revenue, cash, royalty financing, and clinical development milestones. |
| Nov 10 | Q3 earnings report | Positive | +4.2% | Results included revenue, financing proceeds, clinical response data, and development updates. |
| Aug 12 | Q2 earnings report | Positive | +9.7% | Results included clinical data, financing, revenue, restructuring, and cash runway updates. |
| May 14 | Q1 earnings report | Positive | +37.1% | Results included LOTIS-7 response data, revenue, cash, and program discontinuation. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events were followed by positive 24-hour reactions in four of five observations, with one negative divergence.
Key Terms
pfs medical
breakthrough therapy designation regulatory
non-gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second quarter 2026 net product revenue of
Company evaluating regulatory path for ZYNLONTA® to obtain full approval and advance into earlier lines of DLBCL following
Company to host conference call today at 8:30 a.m. EDT
LAUSANNE,
ZYNLONTA® commercial performance as a monotherapy in 3L+ diffuse large B-cell lymphoma (DLBCL) in the second quarter of 2026 continued to be broadly in line with recent quarters. Abstracts for
Recently, the Company held a pre-supplemental Biologics License Application (sBLA) meeting with the
"We are pleased by our second quarter performance, which reflects continued commercial momentum and strong operational discipline through ongoing cost reduction efforts. Over the course of this year, we have released
"As we work to advance ZYNLONTA into earlier lines of DLBCL, we remain confident that ZYNLONTA will continue to play a meaningful role for patients with B-cell malignancies, in the 3L+ DLBCL setting, and through potential compendia inclusion starting in 2027," said Mohamed Zaki, M.D., Ph.D., Chief Medical Officer of ADC Therapeutics. "We look forward to the presentation of the
Second Quarter 2026 Operational Updates and Upcoming Milestones
The Company recently held a pre-sBLA meeting with the FDA. During this meeting, the FDA noted substantial concerns regarding the benefit-risk or verification of clinical benefit observed in this trial based on the imbalance in Grade 5 events, when assessed in the context of a marginal treatment benefit. Following this meeting, the Company is assessing the best regulatory path forward and plans to provide an update on regulatory strategy and timing in the near future. ZYNLONTA remains available under accelerated approval as a monotherapy in 3L+ DLBCL and the Company plans to continue to commercialize in this setting.
The Company submitted
Announced strategic reorganization to support ZYNLONTA growth opportunities and regulatory priorities. ADC Therapeutics implemented an approximately 17 percent workforce reduction globally and estimates that the reorganization will generate annualized estimated cost savings of approximately
Investigator-Initiated trials (IITs) evaluating ZYNLONTA in additional B-cell malignancies continue to advance. The University of Miami Sylvester Comprehensive Cancer Center-led multi-center Phase 2 trials of ZYNLONTA in combination with rituximab to treat r/r follicular lymphoma (FL) and ZYNLONTA as a monotherapy to treat marginal zone lymphoma (MZL) are ongoing. Updated MZL data were submitted to ASH and the Company anticipates presentation of this data before the end of the year, with publication and compendia submission to follow. The Company also anticipates presentation of updated FL data in Q2 2027. The Company intends to assess potential regulatory pathways and plans to submit for BTD for MZL.
Second Quarter 2026 Financial Results
Product Revenues: Net product revenues were
License Revenues and Royalties: License revenue and royalties were
Cost of Product Sales: Cost of product sales was
Research and Development (R&D) Expense: R&D expense was
Selling and Marketing (S&M) Expense: S&M expense was
General & Administrative (G&A) Expense: G&A expense was
Restructuring, impairment and other related costs: In connection with the strategic reorganization and workforce reduction announced in June 2026, we incurred employee severance and related benefit costs of
Total Operating Expenses and Adjusted Total Operating Expenses: Total operating expenses were
Net Loss and Adjusted Net Loss: Net loss for the second quarter and six months ended June 30, 2026, was
Cash and Cash Equivalents: As of June 30, 2026, cash and cash equivalents were
Conference Call Details
ADC Therapeutics management will host a conference call and live audio webcast to discuss first quarter 2026 financial results and provide a company update today at 8:30 a.m. EDT. To access the conference call, please register here. Registrants will receive the dial-in number and unique PIN. It is recommended that you join 10 minutes before the event, though you may pre-register at any time. A live webcast of the call will be available under "Events & Presentations" in the Investors section of the ADC Therapeutics website at ir.adctherapeutics.com. The archived webcast will be available for 30 days following the call.
About ADC Therapeutics
ADC Therapeutics (NYSE: ADCT) is a commercial-stage global leader and pioneer in the field of antibody drug conjugates (ADCs), transforming treatment for patients through our focused portfolio with ZYNLONTA® (loncastuximab tesirine-lpyl).
ADC Therapeutics' CD19-directed ADC ZYNLONTA received accelerated approval by the FDA and conditional approval from the European Commission for the treatment of relapsed or refractory diffuse large B-cell lymphoma after two or more lines of systemic therapy. ZYNLONTA is also in development in combination with other agents and in earlier lines of therapy.
Headquartered in Lausanne (Biopôle),
Use of Non-GAAP Financial Measures
In addition to financial information prepared in accordance with
Adjusted total operating expenses
Adjusted net loss
Adjusted net loss per share
Management uses such measures internally when monitoring and evaluating our operational performance, generating future operating plans and making strategic decisions regarding the allocation of capital. We believe that these adjusted financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and facilitate operating performance comparability across both past and future reporting periods. These non-GAAP measures have limitations as financial measures and should be considered in addition to, and not in isolation or as a substitute for, the information prepared in accordance with GAAP. When preparing these supplemental non-GAAP measures, management typically excludes certain GAAP items that management does not believe are indicative of our ongoing operating performance. Furthermore, management does not consider these GAAP items to be normal, recurring cash operating expenses; however, these items may not meet the GAAP definition of unusual or non-recurring items. Since non-GAAP financial measures do not have standardized definitions and meanings, they may differ from the non-GAAP financial measures used by other companies, which reduces their usefulness as comparative financial measures. Because of these limitations, you should consider these adjusted financial measures alongside other GAAP financial measures.
The following items are excluded from adjusted total operating expenses:
Share-Based Compensation Expense: We exclude share-based compensation expense from our adjusted financial measures because share-based compensation expense, which is non-cash, fluctuates from period to period based on factors that are not within our control, such as our stock price on the dates share-based grants are issued. Share-based compensation expense has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy.
Restructuring, Impairment and Other Related Costs: We exclude from our adjusted financial measures costs associated with our execution of certain strategies and initiatives to streamline operations, achieve targeted cost reductions or reprioritize research and development activities. These costs may include employee severance, contract termination costs, facility closing and exit costs, asset impairment charges (which are non-cash) and other costs that we believe do not represent the performance of our business or have a direct correlation to our ongoing or future business operations.
The following items are excluded from adjusted net loss and adjusted net loss per share:
Share-Based Compensation Expense: We exclude share-based compensation expense from our adjusted financial measures because share-based compensation expense, which is non-cash, fluctuates from period to period based on factors that are not within our control, such as our stock price on the dates share-based grants are issued. Share-based compensation expense has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy.
Certain Other Items: We exclude certain other significant items that we believe do not represent the performance of our business from our adjusted financial measures. Such items are evaluated by management on an individual basis based on both quantitative and qualitative aspects of their nature. While not all-inclusive, examples of certain other significant items excluded from our adjusted financial measures would be: restructuring, impairment and other related costs, changes in the fair value of warrant obligations and the effective interest expense associated with the senior secured term loan facility and the effective interest expense and cumulative catch-up adjustments associated with the deferred royalty obligation under the royalty purchase agreement with HealthCare Royalty Partners.
See the attached Reconciliation of GAAP Measures to Non-GAAP Measures for explanations of the amounts excluded and included to arrive at the non-GAAP financial measures.
About ZYNLONTA®
ZYNLONTA® is a CD19-directed antibody drug conjugate (ADC). Once bound to a CD19-expressing cell, ZYNLONTA is internalized by the cell, where enzymes release a pyrrolobenzodiazepine (PBD) payload. The potent payload binds to DNA minor groove with little distortion, remaining less visible to DNA repair mechanisms. This ultimately results in cell cycle arrest and tumor cell death.
The U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) have approved ZYNLONTA (loncastuximab tesirine-lpyl) for the treatment of adult patients with relapsed or refractory (r/r) large B-cell lymphoma after two or more lines of systemic therapy, including diffuse large B-cell lymphoma (DLBCL) not otherwise specified (NOS), DLBCL arising from low-grade lymphoma and also high-grade B-cell lymphoma. The trial included a broad spectrum of heavily pre-treated patients (median three prior lines of therapy) with difficult-to-treat disease, including patients who did not respond to first-line therapy, patients refractory to all prior lines of therapy, patients with double/triple hit genetics and patients who had stem cell transplant and CAR-T therapy prior to their treatment with ZYNLONTA. This indication is approved by the FDA under accelerated approval and in the European Union under conditional approval based on overall response rate and continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial. Please see full prescribing information including important safety information about ZYNLONTA at www.ZYNLONTA.com.
ZYNLONTA is also being evaluated as a therapeutic option in combination studies in other B-cell malignancies and earlier lines of therapy.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify forward-looking statements by terminology such as "may", "will", "should", "would", "expect", "intend", "plan", "anticipate", "believe", "estimate", "predict", "potential", "seem", "seek", "future", "continue", or "appear" or the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to certain risks and uncertainties that can cause actual results to differ materially from those described. Factors that may cause such differences include, but are not limited to: the adequacy of the LOTIS-5 clinical trial data to support full regulatory approval and our ability to maintain accelerated approval in the United States and foreign jurisdictions for our product; our ability to identify and execute on potential regulatory and compendia pathways; the timing, content and outcome of meetings with and feedback or other communications provided by regulatory authorities including U.S. FDA including our ability to adequately address the serious concerns related to the LOTIS-5 trial results raised by the FDA at the recent pre-sBLA submission meeting; the timing, submission and outcome of an sBLA related to LOTIS-5 and potential approval; the actual and perceived benefit-risk profile for ZYNLONTA® as studied in the LOTIS-5 trial; the assessment of the data from LOTIS-5 study, including additional analyses of outcomes observed for safety, efficacy and within key geographic regions and across certain patient sub-populations; the path for full regulatory approval for ZYNLONTA® in the United States and foreign jurisdictions and into earlier lines of therapy; whether future LOTIS-7 results will be consistent with or different from the prior disclosure, the timing, results and publication of the full LOTIS-7 trial data and potential compendia inclusion; future regulatory strategy for a Phase 3 trial for the combination of ZYNLONTA® plus glofitamab; our expected revenue growth in 2027 and the Company's ability to sustain or grow ZYNLONTA® revenue in the future; our expected cash runway into at least 2028 which assumes use of the minimum liquidity amount required to be maintained under its loan agreement covenants; our ability to comply with the terms of our indebtedness; changes in our regulatory and commercial strategy; the ability of our partners to commercialize ZYNLONTA® in foreign markets, the timing and amount of future revenue and payments to us from such partnerships and their ability to obtain or maintain regulatory approval for ZYNLONTA® in foreign jurisdictions; the timing and results of the Company's clinical trials; the timing, publication and results of investigator-initiated trials including those studying FL and MZL and the potential regulatory and/or compendia strategy and the future opportunity; the timing and outcome of regulatory submissions for the Company's products or product candidates; actions by the FDA or foreign regulatory authorities; projected revenue and expenses; the Company's indebtedness, including HealthCare Royalty Management and Blue Owl and Oaktree facilities, and the restrictions imposed on the Company's activities by such indebtedness, the ability to comply with the terms of the various agreements and repay such indebtedness and the significant cash required to service such indebtedness; the Company's ability to obtain financial and other resources for its research, development, clinical, and commercial activities; and the uncertainties of international trade policies, including tariffs, sanctions, trade barriers and most favored nation drug pricing and the potential impact they may have on our business, financial condition, and results of operations. Additional information concerning these and other factors that may cause actual results to differ materially from those anticipated in the forward-looking statements is contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K and in the Company's other periodic and current reports and filings with the U.S. Securities and Exchange Commission. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, achievements or prospects to be materially different from any future results, performance, achievements or prospects expressed in or implied by such forward-looking statements. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document.
ADC Therapeutics SA Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except for share and per share data)
| ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Revenue | ||||||||
Product revenues, net | $ 18,634 | $ 18,085 | $ 38,667 | $ 35,489 | ||||
License revenues and royalties | 614 | 754 | 1,432 | 6,383 | ||||
Total revenue, net | 19,248 | 18,839 | 40,099 | 41,872 | ||||
Operating expense | ||||||||
Cost of product sales | (2,349) | (836) | (5,964) | (2,897) | ||||
Research and development | (17,366) | (30,090) | (37,243) | (59,018) | ||||
Selling and marketing | (12,572) | (10,147) | (25,280) | (20,700) | ||||
General and administrative | (9,701) | (8,822) | (19,597) | (18,777) | ||||
Restructuring, impairment and other related costs | (2,674) | (13,091) | (2,674) | (13,091) | ||||
Total operating expense | (44,662) | (62,986) | (90,758) | (114,483) | ||||
Loss from operations | (25,414) | (44,147) | (50,659) | (72,611) | ||||
Other income (expense) | ||||||||
Interest income | 1,819 | 1,934 | 3,813 | 3,988 | ||||
Interest expense | (13,508) | (12,997) | (25,857) | (25,227) | ||||
Other, net | 20,538 | (182) | 23,170 | 21 | ||||
Total other income (expense), net | 8,849 | (11,245) | 1,126 | (21,218) | ||||
Loss before income taxes | (16,565) | (55,392) | (49,533) | (93,829) | ||||
Income tax expense | — | (1,254) | — | (1,419) | ||||
Net loss | $ (16,565) | $ (56,646) | $ (49,533) | $ (95,248) | ||||
Net loss per share | ||||||||
Net loss per share, basic and diluted | $ (0.11) | $ (0.50) | $ (0.32) | $ (0.86) | ||||
Weighted average shares outstanding, basic and | 155,016,023 | 113,743,358 | 154,581,598 | 110,490,935 | ||||
ADC Therapeutics SA Condensed Consolidated Balance Sheets (Unaudited) (in thousands)
| ||||
June 30, 2026 | December 31, 2025 | |||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ 219,107 | $ 261,338 | ||
Accounts receivable, net | 28,035 | 29,117 | ||
Inventory | 4,932 | 4,184 | ||
Prepaid expenses | 5,380 | 5,612 | ||
Other current assets | 4,253 | 6,084 | ||
Total current assets | 261,707 | 306,335 | ||
Non-current assets | ||||
Inventory, long-term | 15,328 | 14,301 | ||
Operating lease right-of-use assets | 1,101 | 1,297 | ||
Other long-term assets | 1,243 | 1,217 | ||
Total assets | $ 279,379 | $ 323,150 | ||
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ 12,761 | $ 9,175 | ||
Accrued expenses and other current liabilities | 67,391 | 57,988 | ||
Senior secured term loans, current portion | 6,180 | 3,000 | ||
Total current liabilities | 86,332 | 70,163 | ||
Deferred royalty obligation, long-term | 299,543 | 322,525 | ||
Senior secured term loans, long-term | 110,437 | 112,452 | ||
Warrant obligations | 4,159 | — | ||
Operating lease liabilities, long-term | 946 | 1,034 | ||
Other long-term liabilities | 6,167 | 2,810 | ||
Total liabilities | 507,584 | 508,984 | ||
Total shareholders' (deficit) equity | (228,205) | (185,834) | ||
Total liabilities and shareholders' (deficit) equity | $ 279,379 | $ 323,150 | ||
ADC Therapeutics SA Reconciliation of GAAP Measures to Non-GAAP Measures (Unaudited) (in thousands, except for share and per share data)
| |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2026 | 2025 | Change | % Change | 2026 | 2025 | Change | % Change | |||||||
Total operating | $ 18,324 | (29) % | $ (114,483) | (21) % | |||||||||||
Adjustments: | |||||||||||||||
Share-based | 4,767 | 2,062 | 2,705 | 131 % | 7,976 | 4,483 | 3,493 | 78 % | |||||||
Restructuring | 2,674 | 6,677 | (4,003) | (60) % | 2,674 | 6,677 | (4,003) | (60) % | |||||||
Impairment | — | 6,414 | (6,414) | (100) % | — | 6,414 | (6,414) | (100) % | |||||||
Adjusted total | $ 10,612 | (22) % | (17) % | ||||||||||||
Three Months Ended | Six Months Ended | ||||||
in thousands (except for share and per share data) | 2026 | 2025 | 2026 | 2025 | |||
Net loss | $ (16,565) | $ (56,646) | $ (49,533) | $ (95,248) | |||
Adjustments: | |||||||
Share-based compensation expense (i) | 4,767 | 2,062 | 7,976 | 4,483 | |||
HCR warrants obligation, change in fair value income (ii) | (14,367) | — | (16,594) | — | |||
Effective interest expense on senior secured term loan | 4,383 | 4,274 | 8,005 | 8,059 | |||
Deferred royalty obligation interest expense (iv) | 9,125 | 8,723 | 17,852 | 17,168 | |||
Deferred royalty obligation cumulative catch-up | (6,329) | (184) | (6,401) | (196) | |||
Restructuring charges (v) | 2,674 | 6,677 | 2,674 | 6,677 | |||
Impairment charges (vi) | — | 6,414 | — | 6,414 | |||
Adjusted net loss | $ (16,312) | $ (28,680) | $ (36,021) | $ (52,643) | |||
Net loss per share, basic and diluted | $ (0.11) | $ (0.50) | $ (0.32) | $ (0.86) | |||
Adjustment to net loss per share, basic and diluted | — | 0.25 | 0.09 | 0.38 | |||
Adjusted net loss per share, basic and diluted | $ (0.11) | $ (0.25) | $ (0.23) | $ (0.48) | |||
Weighted average shares outstanding, basic and diluted | 155,016,023 | 113,743,358 | 154,581,598 | 110,490,935 | |||
(i) | Share-based compensation expense represents the cost of equity awards issued to our directors, management and employees. The fair value of awards is computed at the time the award is granted and is recognized over the requisite service period less actual forfeitures by a charge to the statement of operations and a corresponding increase in additional paid-in capital within equity. These accounting entries have no cash impact.
|
(ii) | Change in the fair value of the HCR warrants obligation results from the valuation at the end of each accounting period. There are several inputs to these valuations, but those most likely to result in significant changes to the valuations are changes in the value of the underlying instrument (i.e., changes in the price of our common shares) and changes in expected volatility in that price. These accounting entries have no cash impact.
|
(iii) | Effective interest expense on senior secured term loans relates to the increase in the value of our loans in accordance with the amortized cost method.
|
(iv) | Deferred royalty obligation interest expense relates to the accretion expense on our deferred royalty obligation pursuant to the royalty purchase agreement with HCR and cumulative catch-up adjustments related to changes in the expected payments to HCR based on a periodic assessment of our underlying revenue projections.
|
(v) | Restructuring charges consist primarily of employee severance costs associated with the strategic reorganization and workforce reduction announced on June 24, 2026; and restructuring and impairment costs consist of employee severance, contract termination costs and other costs associated with the close down of the
|
(vi) | Impairment charges consist of write-downs of long-lived and prepaid assets associated with the 2025 Restructuring. These accounting entries have no cash impact. |
CONTACT:
Investors and Media
Nicole Riley
ADC Therapeutics
Nicole.Riley@adctherapeutics.com
+1 862-926-9040
View original content to download multimedia:https://www.prnewswire.com/news-releases/adc-therapeutics-reports-second-quarter-2026-financial-results-and-provides-operational-updates-302850226.html
SOURCE ADC Therapeutics SA