ALX Oncology Holdings Inc (NASDAQ:ALXO) Reports Q2 2025 Results with Wider Loss but Strong Clinical Progress

ALX ONCOLOGY HOLDINGS INC (NASDAQ:ALXO) reported its second-quarter 2025 financial results, posting a net loss of $25.9 million, or $0.49 per share, compared to a net loss of $39.4 million, or $0.76 per share, in the same period last year. The company reported no revenue, in line with analyst expectations, as it remains a clinical-stage biotech firm with no commercialized products.

Earnings and Revenue vs. Estimates

• Reported EPS: -$0.49 vs. estimated EPS: -$0.459 (wider loss than expected).
• Reported Revenue: $0.0 vs. estimated Revenue: $0.0 (in line).

The wider-than-expected loss did not trigger a sharp negative reaction in after-hours trading, with shares declining only -2.24% post-release. This muted reaction suggests investors may be more focused on clinical progress than short-term financials.

Key Highlights from the Press Release

1. Clinical Advancements:

   • Evorpacept (CD47 inhibitor): Data from the ASPEN-06 trial in HER2+ gastric cancer showed CD47 expression as a predictive biomarker. Patients with high CD47 levels had a 65% objective response rate (ORR) when treated with evorpacept plus standard therapy, versus 26% in the control group.
   • ASPEN-Breast Trial Update: The study design was amended to a single-arm format, with an interim readout expected in Q3 2026.
   • ALX2004 (EGFR-targeted ADC): Phase 1 trial enrollment is on track to begin in August 2025, with initial safety data expected in H1 2026.

2. Financial Position:

   • Cash reserves of $83.5 million, extending the runway into Q1 2027.
   • R&D expenses decreased to $18.0 million (from $34.7 million YoY) due to reduced clinical trial material manufacturing and pipeline prioritization.

3. Leadership Changes:

   • Dr. Daniel Curran was appointed to the Board of Directors, bringing extensive drug development and corporate strategy experience.

Market Reaction & Outlook

Despite the wider loss, ALX Oncology’s stock has shown resilience, gaining +31.08% over the past month ahead of the earnings release. The lack of a steep sell-off post-earnings suggests investors remain optimistic about:

• The potential of evorpacept in biomarker-selected populations.
• Upcoming clinical milestones in breast cancer and ALX2004.

Analyst estimates for Q3 2025 project a loss of -$0.377 per share, with no revenue expected. Full-year 2025 estimates anticipate a loss of -$1.82 per share, reflecting the company’s continued investment in clinical trials.

Conclusion

ALX Oncology’s earnings report underscores its focus on clinical execution rather than near-term profitability. The market’s tempered reaction indicates that investors are weighing the company’s long-term potential in oncology over short-term financial metrics.

For more detailed earnings and estimates, visit ALX Oncology’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.