Xencor (NASDAQ: XNCR) Q1 loss widens as revenue and royalties fall
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Xencor, Inc. reported significantly weaker first-quarter 2026 results. Revenue was $4.5 million, down sharply from $32.7 million a year earlier, reflecting lower collaboration and royalty income and a one-time $6.6 million reduction for disputed Alexion royalties.
The company recorded a net loss attributable to Xencor of $128.9 million, or $(1.71) per share, compared with a $48.4 million loss, or $(0.66) per share, in 2025, driven by higher R&D spending and $50.8 million of other expense from unrealized losses on an equity security. Xencor ended March 31, 2026 with $541.8 million in cash, cash equivalents and marketable debt securities and expects to finish 2026 with $380–$400 million, providing cash runway into mid-2028 while advancing multiple oncology and autoimmune programs.
Positive
- Strong liquidity and runway: Cash, cash equivalents and marketable debt securities were $541.8 million at March 31, 2026, and the company expects to end 2026 with $380–$400 million, funding operations and R&D programs into mid-2028.
Negative
- Sharp revenue decline and wider loss: Q1 2026 revenue fell to $4.5 million from $32.7 million, and net loss widened to $128.9 million from $48.4 million, hurt by a $6.6 million royalty reduction and higher other expense from unrealized equity losses.
Insights
Q1 2026 shows sharply lower revenue and a much larger net loss.
Xencor generated Q1 2026 revenue of $4.5 million versus $32.7 million a year earlier, mainly from non-cash royalties. Results include a one-time $6.6 million royalty reduction tied to disputed U.S. sales from Alexion, which depressed reported revenue.
Net loss widened to $128.9 million, or $(1.71) per share, from $48.4 million, or $(0.66). The company cites higher research and development spending of $64.7 million and a much larger $50.8 million other expense line, primarily from unrealized losses on an equity security, as key drivers.
Management guides to ending 2026 with $380–$400 million in cash, cash equivalents and marketable debt securities and indicates this should fund operations into mid-2028. Multiple clinical milestones are targeted for 2H26–2027, including Phase 1 data for XmAb819 and progress in the Phase 2b XENITH-UC study of XmAb942.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $4.5 million
Revenue prior-year quarter: $32.7 million
Net loss attributable to Xencor: $128.9 million
+5 more
8 metrics
Revenue
$4.5 million
Three months ended March 31, 2026
Revenue prior-year quarter
$32.7 million
Three months ended March 31, 2025
Net loss attributable to Xencor
$128.9 million
Three months ended March 31, 2026
Net loss per share (diluted)
$(1.71)
Three months ended March 31, 2026
Cash, cash equivalents and marketable debt securities
$541.8 million
As of March 31, 2026
Expected year-end 2026 cash range
$380–$400 million
Company financial guidance for 2026 year-end
Research and development expenses
$64.7 million
Three months ended March 31, 2026
Total other expense
$50.8 million
Three months ended March 31, 2026, mainly unrealized equity losses
Key Terms
non-cash royalty revenue, Phase 2b, blinded interim analysis, terminal half-life, +2 more
6 terms
non-cash royalty revenue financial
"Revenue earned in the first quarter of 2026 was primarily non-cash royalty revenue from Incyte and Alexion"
Phase 2b medical
"XENITH-UC Study, a global Phase 2b study of XmAb942 in ulcerative colitis"
Phase 2b is a stage in the development of a new medicine or treatment where researchers test its effectiveness and safety in a larger group of people. This step helps determine whether the treatment works well enough to move forward and if it has manageable side effects, which is important for investors because successful results can lead to potential approval and market opportunity.
blinded interim analysis medical
"Enrollment expectations support a XENITH-UC blinded interim analysis around year-end 2026"
terminal half-life medical
"The estimated terminal half-life of 74 days supports the single subcutaneous injection 12-week dosing interval"
Terminal half-life is the time it takes for the amount of a drug in the body to fall by half during the final, slow phase of its elimination — like how long a slowly leaking tank takes to lose half its water. Investors care because it shapes how often patients must take the drug, how long effects and side effects last, and therefore influences dosing convenience, trial length, safety profiles and commercial attractiveness.
bispecific antibody medical
"XmAb412 (TL1A x IL23p19), a novel bispecific antibody format using the XenLock platform"
A bispecific antibody is a specially designed protein that can attach to two different targets at the same time. Think of it as a custom-made connector that brings two things together—such as a disease cell and an immune system component—helping the body fight illnesses more effectively. For investors, understanding bispecific antibodies is important because they represent innovative therapies that could lead to new treatments and potentially lucrative market opportunities.
marketable debt securities financial
"cash, cash equivalents and marketable debt securities totaled $541.8 million as of March 31, 2026"
Marketable debt securities are loans a company has made to others or government entities that it can quickly sell on public markets, such as bonds, notes, or short-term paper. They act like cash that earns interest but can be converted to cash fast — think of them as a company’s ‘liquid savings’ in the form of tradable IOUs. Investors watch them because their size and quality show how easily a company can meet obligations and how much investment risk sits in its short-term portfolio.
Earnings Snapshot
Revenue: $4.5 million · Guidance included
Q1 2026
Revenue
$4.5 million
Net loss attributable to Xencor, Inc.
$128.9 million
Net loss per share (diluted)
$(1.71)
Guidance
Xencor expects to end 2026 with $380–$400 million in cash, cash equivalents and marketable debt securities and to fund operations into mid-2028.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________________________
FORM 8-K
___________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
___________________________________________________
(Exact name of registrant as specified in its charter)
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| (Address of principal executive offices) | (Zip Code) | |||||||
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
___________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2026, Xencor, Inc. (the “Company”) announced its financial results for the first quarter ended March 31, 2026 in the press release attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in “Item 2.02. Results of Operations and Financial Condition” of this Current Report on Form 8-K and in Exhibit 99.1 attached hereto is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit No. | Description | ||||
| 99.1 | Press Release issued by Xencor, Inc. on May 6, 2026. | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL). | ||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 6, 2026 | XENCOR, INC. | |||||||
| By: | /s/ Celia Eckert | |||||||
| Celia Eckert | ||||||||
| General Counsel & Corporate Secretary | ||||||||
3
Exhibit 99.1
Xencor Reports First Quarter 2026 Financial Results
-- XmAb819 clear cell renal cell carcinoma (ccRCC) expansion cohort results to be presented at a medical conference in 2H26 --
-- XmAb412 (TL1A x IL23p19) first-in-human healthy participant study on-track for 3Q26 start --
-- Plamotamab and XmAb657 autoimmune studies on-track for 2H26 progress update --
PASADENA, Calif.--May 6, 2026-- 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 first quarter ended March 31, 2026.
“Xencor continues to execute across our wholly owned clinical pipeline, with significant progress in both oncology and autoimmune disease. We look forward to presenting expansion cohort data from our Phase 1 study of XmAb819 for the treatment of advanced clear cell renal cell carcinoma at a medical meeting in the second half of 2026, which will help support the initiation of our first pivotal study planned for 2027,” said Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor.
“Our TL1A pipeline continues to advance with strong enrollment in the global Phase 2b XENITH-UC Study of XmAb942 in ulcerative colitis supported by investigator enthusiasm for its potential best-in-class profile in moderately to severely active ulcerative colitis. We expect to complete a blinded interim analysis around year-end 2026 and complete the primary endpoint analysis for the study’s 12-week induction period during the second half of 2027. We also look forward to initiating the first-in-human study of XmAb412, our novel TL1A x IL23p19 bispecific antibody, in the third quarter of 2026. XmAb412 utilizes our novel XenLock™ Fab domain platform, which enables multi-specific biologics designed to address the very stringent requirements for high potency, long half-life and low immunogenicity in the treatment of autoimmune and inflammatory disease.”
Wholly Owned Pipeline Overview
XmAb819 (ENPP3 x CD3), a first-in-class, tumor-targeted T-cell engaging XmAb® 2+1 bispecific antibody in development for patients with advanced clear cell renal cell carcinoma (ccRCC).
•Xencor plans to present expansion cohort data from the ongoing Phase 1 study to define a recommended Phase 3 target dose at a medical conference in 2H26 and support initiation of a pivotal study of XmAb819 in ccRCC planned for 2027.
•Tumor expansion cohorts in ENPP3+ colorectal cancer (CRC), non-small cell lung cancer (NSCLC) and papillary renal cell carcinoma (pRCC) are open to enrollment.
•Xencor plans to initiate a sub-study in patients with advanced ccRCC who have not previously received treatment with a tyrosine kinase inhibitor (TKI) in 3Q26.
XmAb541 (CLDN6 x CD3), a first-in-class, tumor-targeted T-cell engaging XmAb 2+1 bispecific antibody in Phase 1 clinical development for patients with advanced gynecologic and germ cell tumors.
•Xencor plans to present Phase 1 dose-escalation data to define a recommended Phase 3 target dose in 2H26 and evaluate plans for a pivotal study of XmAb541 during 2027.
•Additionally, Xencor is initiating a new clinical study to evaluate the combination of XmAb541 and XmAb808 (B7H3 x CD28) for patients with CLDN6+ high-grade serous ovarian cancer. XmAb808 is a bispecific antibody designed to provide conditional co-stimulation of T cells. Xencor presented a poster characterizing preclinical combinations of XmAb808 with multiple CD3 T cell engaging bispecific antibodies, including XmAb541, at the American Association for Cancer Research Annual Meeting in April 2026.
XmAb942 (Xtend™ anti-TL1A), a potential best-in-class, high-potency, extended half-life antibody in development for patients with inflammatory bowel disease.
•Xencor is conducting the XENITH-UC Study, a global Phase 2b study of XmAb942 in ulcerative colitis (UC). XENITH-UC is a randomized, double-blind, placebo-controlled trial in patients with moderately to severely active UC, whose disease has progressed after at least one conventional or advanced therapy.
•Xencor presented final results from the Phase 1 dose-escalation study of XmAb942 in healthy participants at Digestive Disease Week® (DDW) in May 2026. All dose levels and routes of administration were well tolerated. XmAb942’s immunogenicity profile supports best-in-class drug exposure, and no impacts of anti-drug antibodies on safety or tolerability or on the population pharmacokinetic model were observed. The estimated terminal half-life of 74 days supports the single subcutaneous injection 12-week dosing interval used during the maintenance treatment period in XENITH-UC.
•Enrollment expectations support a XENITH-UC blinded interim analysis around year-end 2026 and reaching the primary endpoint of the 12-week induction period during the second half of 2027. The primary endpoint is percentage of patients achieving clinical remission defined by the modified Mayo score at week 12.
XmAb412 (TL1A x IL23p19), a novel bispecific antibody format using the XenLock™ platform for dual targeting of inflammatory pathways in autoimmune and inflammatory disease.
•Xencor presented preclinical characterization of XmAb412 at DDW in May 2026. XmAb412 robustly suppresses both TL1A and IL-23 inflammatory pathways and is predicted to have a human half-life between 60 and 70 days. XmAb412 supports high-concentration, low viscosity and citrate-free formulation suitable for subcutaneous dosing.
•Xencor plans to initiate a first-in-human study of XmAb412 in 3Q26.
Plamotamab (CD20 x CD3), a clinical-stage, B-cell depleting bispecific T-cell engager in Phase 1 development for patients with rheumatoid arthritis (RA), who have progressed through prior standard-of-care treatment.
•Xencor plans to provide an update on progress achieved in the Phase 1b study of plamotamab in RA in 2H26.
XmAb657 (CD19 x CD3), a clinical-stage, potent, extended half-life B-cell depleting bispecific T-cell engager in Phase 1 dose escalation, enrolling healthy participants and patients with idiopathic inflammatory myopathies (IIM).
•Xencor plans to provide an update on progress achieved in the Phase 1 study of XmAb657 in 2H26.
Financial Guidance: Based on current operating plans, Xencor expects to end 2026 with between $380 million and $400 million in cash, cash equivalents and marketable debt securities, and to have sufficient cash resources to fund research and development programs and operations into mid-2028.
Financial Results for the First Quarter Ended March 31, 2026
Cash, cash equivalents and marketable debt securities totaled $541.8 million as of March 31, 2026, compared to $610.8 million as of December 31, 2025.
Revenue for the first quarter ended March 31, 2026 was $4.5 million, compared to $32.7 million for the same period in 2025. Revenue earned in the first quarter of 2026 was primarily non-cash royalty revenue from Incyte and Alexion, compared to the same period in 2025, which was primarily non-cash royalty revenue from Alexion and Incyte and milestone revenue from Incyte and Vir. Revenue for the first quarter ended March 31, 2026 includes a one-time $6.6 million reduction due to royalties on disputed U.S. sales due from Alexion.
Research and development (R&D) expenses for the first quarter ended March 31, 2026 were $64.7 million, compared to $58.6 million for the same period in 2025. Increased R&D spending for the first quarter of 2026 compared to 2025 is primarily due to increased spending on pipeline programs, partially offset by reduced lower stock-based compensation expense.
General and administrative (G&A) expenses for the first quarter ended March 31, 2026 were $17.7 million, compared to $17.3 million for the same period in 2025. G&A spending for the first quarter 2026 compared to 2025 remained relatively consistent.
Other expense, net, for the first quarter ended March 31, 2026 was $50.8 million, compared to $5.1 million for the same period in 2025. Increased other expense, net, for the first quarter of 2026, compared to 2025, is primarily due to unrealized losses on an equity security.
Net loss attributable to Xencor for the first quarter ended March 31, 2026 was $128.9 million, or $(1.71) on a fully diluted per share basis, compared to net loss of $48.4 million, or $(0.66) on a fully diluted per share basis, for the same period in 2025.
Upcoming Investor Conference
Company management will present at the BofA Securities Health Care Conference on Tuesday, May 12, 2026 at 3:00 p.m. PDT. A live webcast of the presentation will be available under “Events & Presentations” in the Investors section of the Company’s website located at www.xencor.com. A replay of the event will be available on the Xencor website for at least 30 days following the presentation.
About Xencor
Xencor is a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of patients with cancer and autoimmune diseases. More than 20 candidates engineered with Xencor's XmAb® technology are in clinical development, and multiple XmAb medicines are marketed by partners.
Xencor’s XmAb engineering technology enables small changes to a protein’s structure that result in new mechanisms of therapeutic action. For more information, please visit www.xencor.com.
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not purely statements of historical fact, and can generally be identified by the use of words such as “potential,” “can,” “will,” “plan,” “may,” “could,” “would,” “expect,” “anticipate,” “seek,” “look forward,” “believe,” “committed,” “investigational,” “indicates,” “supports,” and similar terms, or by express or implied discussions relating to Xencor’s business, including, but not limited to, statements regarding our expectations regarding regulatory and partnership milestone achievements, clinical pipeline advancements, planned receipt and presentations of clinical data, including the expected timing thereof, and planned and ongoing clinical trials, including the expected timing thereof, projected financial resources and financial guidance, including estimated cash, cash equivalents and marketable debt securities at year end and cash runway for research and development programs and operations, expectations for and estimates of future royalty revenues, the quotations from Xencor's president and chief executive officer, and other statements that are not purely statements of historical fact. Such statements are made on the basis of the current beliefs, expectations, and assumptions of the management of Xencor and are subject to significant known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements and the timing of events to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such risks include, without limitation, the risks associated with the process of discovering, developing, manufacturing and commercializing drugs that are safe and effective for use as human therapeutics, the ability of publicly disclosed preliminary clinical trial data to support continued clinical development and regulatory approval for specific treatments, the risk of loss of key members of management, the risk that the fair value of our marketable equity securities will decline and the risks, uncertainties and other factors described under the heading “Risk Factors” in Xencor's Annual Report on Form 10-K for the year ended December 31, 2025 as well as Xencor's subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Xencor undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.
Contacts
For Investors:
Charles Liles
cliles@xencor.com
(626) 737-8118
For Media:
Cassidy McClain
Inizio Evoke
cassidy.mcclain@inizioevoke.com
(619) 694-6291
| Xencor, Inc. | |||||||||||
| Selected Consolidated Balance Sheet Data | |||||||||||
| (in thousands) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (unaudited) | |||||||||||
| Cash, cash equivalents and marketable debt securities | $ | 541,770 | $ | 610,833 | |||||||
| Other current assets | 98,478 | 164,590 | |||||||||
| Other long-term assets | 96,598 | 100,072 | |||||||||
| Total assets | $ | 736,846 | $ | 875,495 | |||||||
| Liabilities related to the sales of future royalties | $ | 108,534 | $ | 119,749 | |||||||
| Other current liabilities | 47,047 | 52,640 | |||||||||
| Non-current lease and other liabilities | 65,632 | 67,519 | |||||||||
| Total liabilities | 221,213 | 239,908 | |||||||||
| Total stockholders' equity | 515,633 | 635,587 | |||||||||
| Total liabilities and stockholders’ equity | $ | 736,846 | $ | 875,495 | |||||||
| Xencor, Inc. | |||||||||||
| Consolidated Statements of Operations and Comprehensive Loss | |||||||||||
| (in thousands, except per share amounts) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Unaudited) | |||||||||||
| Revenue | |||||||||||
| Collaborations, milestones, and royalties | $ | 4,516 | $ | 32,732 | |||||||
| Operating expenses: | |||||||||||
| Research and development | 64,669 | 58,578 | |||||||||
| General and administrative | 17,709 | 17,337 | |||||||||
| Total operating expenses | 82,378 | 75,915 | |||||||||
| Operating loss | (77,862) | (43,183) | |||||||||
| Total other expense | (50,774) | (5,082) | |||||||||
| Loss before income tax expense and noncontrolling interest | (128,636) | (48,265) | |||||||||
| Income tax expense | 280 | 367 | |||||||||
| Net loss including noncontrolling interest | (128,916) | (48,632) | |||||||||
| Net loss attributable to noncontrolling interest | — | (214) | |||||||||
| Net loss attributable to Xencor, Inc. | $ | (128,916) | $ | (48,418) | |||||||
| Net loss per share attributable to Xencor, Inc. (basic and diluted) | $ | (1.71) | $ | (0.66) | |||||||
| Weighted-average shares used in calculating net loss per share (basic and diluted) | 75,247 | 73,667 | |||||||||
| Other comprehensive income (loss): | |||||||||||
| Net unrealized (loss) gain on marketable debt securities | $ | (1,549) | $ | 1,018 | |||||||
| Comprehensive loss | (130,465) | (47,614) | |||||||||
| Less: comprehensive loss attributable to the noncontrolling interest | — | (214) | |||||||||
| Comprehensive loss attributable to Xencor, Inc. | $ | (130,465) | $ | (47,400) | |||||||
FAQ
How did Xencor (XNCR) perform financially in Q1 2026?
Xencor reported Q1 2026 revenue of $4.5 million, down from $32.7 million a year earlier. Net loss attributable to Xencor widened to $128.9 million, or $(1.71) per share, compared with a $48.4 million loss, or $(0.66), in Q1 2025.
What drove the decline in Xencor (XNCR) revenue this quarter?
Revenue fell mainly because collaboration and royalty income dropped and Xencor recorded a one-time $6.6 million reduction for royalties on disputed U.S. sales due from Alexion, which reduced reported non-cash royalty revenue in the quarter.
Why did Xencor’s (XNCR) net loss increase in Q1 2026?
Net loss increased primarily due to higher research and development expenses of $64.7 million and a sharp rise in other expense to $50.8 million, which the company attributes mainly to unrealized losses on an equity security.
What is Xencor’s (XNCR) cash position and runway after Q1 2026?
Xencor held $541.8 million in cash, cash equivalents and marketable debt securities at March 31, 2026. The company expects to end 2026 with $380–$400 million, which it believes will fund operations and research programs into mid-2028.
What key clinical milestones did Xencor (XNCR) highlight in this update?
Xencor plans to present XmAb819 Phase 1 expansion cohort data for clear cell renal cell carcinoma in 2H26, start a first-in-human study of XmAb412 in Q3 2026, and conduct a blinded interim analysis of the XENITH-UC Phase 2b study around year-end 2026.