ALX Oncology Holdings Inc (NASDAQ:ALXO) Reports Wider-Than-Expected Q3 2025 Loss Amid Promising Clinical Data

ALX Oncology Holdings Inc (NASDAQ:ALXO) has reported its financial results for the third quarter of 2025, revealing a net loss that came in wider than analyst expectations. The clinical-stage biotech company continues to burn cash as it advances its pipeline of novel cancer therapies, though it maintains a cash runway extending into early 2027.

Earnings and Revenue Versus Estimates

For the quarter ended September 30, 2025, ALX Oncology reported a non-GAAP net loss of $19.6 million, or a loss of $0.41 per share. This result fell short of the consensus analyst estimate, which had projected a smaller loss of $0.374 per share. The company reported no revenue for the quarter, which was in line with analyst expectations of $0.0 million.

The financial performance underscores the company's ongoing clinical-stage status, where significant revenue generation typically awaits regulatory approvals and commercial product launches. The wider-than-expected loss reflects the continued investment required to fund its extensive clinical trial programs.

Market Reaction and Financial Position

The market's reaction to the earnings report appears mixed. In pre-market trading, the stock showed a notable gain of over 2.5%. This positive movement in the immediate aftermath suggests that investors may be focusing on developmental progress rather than the quarterly loss. However, this short-term uptick contrasts with the stock's performance over the past month, which has seen a decline of over 39%.

Key financial metrics from the quarter include:

• Cash and Investments: $66.5 million as of September 30, 2025.
• Cash Runway: The company believes its current resources are sufficient to fund operations into the first quarter of 2027.
• R&D Expenses: Decreased to $17.4 million from $26.5 million in the prior-year period, primarily due to reduced stock-based compensation and clinical development costs.
• Net Loss: GAAP net loss was $22.1 million, an improvement from a net loss of $30.7 million in Q3 2024.

Pipeline and Corporate Highlights

The earnings release was accompanied by significant updates on ALX Oncology's clinical pipeline, which likely contributed to investor sentiment. The most compelling data came from the ASPEN-06 trial in HER2-positive gastric cancer, where the company's lead candidate, evorpacept, demonstrated substantial benefit in a specific patient population.

Key clinical and corporate developments include:

• ASPEN-06 Gastric Cancer Data: An analysis showed that in patients with high CD47 expression, evorpacept in combination therapy achieved a 65.0% objective response rate, compared to 26.1% for the control regimen. The duration of response was three times longer (25.5 months vs. 8.4 months).
• ASPEN-09 Breast Cancer Trial: The Phase 2 trial remains on track to begin enrollment in the fourth quarter of 2025, with interim data expected in Q3 2026. This trial will evaluate efficacy by CD47 expression levels.
• ALX2004 ADC Program: Enrollment is ongoing in the Phase 1 trial for this EGFR-targeted antibody-drug conjugate. The trial has cleared its first dose level, and initial safety data is expected in the first half of 2026.
• Leadership Appointment: The company appointed board member Dr. Barbara Klencke as interim Chief Medical Officer.

Looking Ahead

While the company did not provide a specific financial outlook for the coming quarters in its release, the provided analyst estimates offer a glimpse into expectations. For the full year 2025, analysts estimate a loss of $1.77 per share. For the fourth quarter of 2025, the consensus estimate projects a loss of $0.32 per share. The company's primary focus remains on achieving key clinical milestones, which will be the main drivers of value creation for the foreseeable future.

For a more detailed breakdown of historical earnings and future analyst estimates for ALX Oncology, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in ALXO. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.