Xilio Therapeutics reported a net loss of $16.3 million for the third quarter of 2025, a widening of $2.3 million from the $14.0 million loss recorded in the same period last year. The increase in loss is largely attributable to a non‑cash charge related to the remeasurement of warrant liabilities and higher research and development expenses as the company pushes its pipeline forward.
Revenue for the quarter totaled $19.07 million, beating the consensus estimate of $18.64 million by $0.43 million, or 2.3 %. The lift was driven almost entirely by collaboration revenue, which surged to $19.1 million from $2.3 million in Q3 2024. The jump reflects the recognition of milestone payments under agreements with AbbVie and Gilead, underscoring the value of Xilio’s partnership strategy.
The company reaffirmed that its cash and cash equivalents as of September 30, 2025 will support operations through the first quarter of 2027. This extended runway is a positive signal of financial stability, but the filing also contains a “substantial doubt” about Xilio’s ability to continue as a going concern, highlighting the need for additional financing or a successful commercialization of its pipeline to sustain long‑term viability.
Management emphasized the progress in its clinical programs, noting that Phase 2 data for vilastobart showed a 40 % objective response rate in heavily pre‑treated metastatic colorectal cancer patients with high tumor mutational burden and no liver metastases. Efarindodekin alfa’s Phase 1 monotherapy data also demonstrated promising anti‑tumor activity and tolerability, while XTX501 is moving toward an IND submission in mid‑2026. The CEO stated that the company remains focused on executing across its clinical programs and advancing its masked T‑cell engager platform into IND‑enabling studies.
Guidance for the remainder of 2025 remains unchanged, with the company maintaining its revenue outlook and reaffirming the cash runway. The guidance signals confidence in the continued momentum of its partnership agreements and pipeline milestones, but the going‑concern disclosure tempers optimism, indicating that the company’s financial health remains contingent on future funding or product success.
Overall, Xilio’s Q3 results illustrate a company that is generating significant partnership revenue while investing heavily in its pipeline, resulting in a widening loss and a cautious outlook. The company’s ability to navigate the next 18 months will hinge on securing additional capital and translating its clinical progress into commercial success.
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