XNCRMEDIUM SIGNALFINANCIAL10-K

Xencor's net loss narrowed meaningfully and revenue grew modestly, but the company remains deeply cash-flow negative with a notably shrinking accounts receivable balance signaling potential revenue quality questions ahead.

The substantial improvement in net loss and a reduction in operating cash outflow from approximately -$202M to -$135M suggest Xencor is trending in a more favorable direction operationally, though the company remains far from profitability. The decline in accounts receivable by roughly half warrants scrutiny — it could reflect faster collections or, alternatively, a reduction in near-term revenue activity that may pressure future top-line results. Investors should monitor whether the 13.7% revenue growth is sustainable given the receivables contraction and continued cash burn.

Comparing 2026-02-25 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

Revenue grew modestly by 13.7% to $125.6M, while the net loss narrowed substantially — a meaningful positive signal for a clinical-stage biopharmaceutical company still investing heavily in its pipeline. Operating cash outflow improved by approximately one-third, and the company's cash position rose to $54.1M while total liabilities declined by 13.7% to $239.9M, collectively painting a picture of gradual financial stabilization. However, accounts receivable fell by more than half to $29.3M and capital expenditures were cut nearly in half, suggesting a more conservative near-term operating posture that investors should watch closely in the context of future revenue visibility.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+60.5%
-$232.6M→-$91.9M

Net income grew 60.5% — bottom-line growth signals improving overall business health.

Accounts Receivable
Balance Sheet
-51.8%
$60.8M→$29.3M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Capital Expenditure
Cash Flow
-48.3%
$6.1M→$3.1M

Capex reduced 48.3% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Operating Cash Flow
Cash Flow
+33.2%
-$202.2M→-$135.1M

Operating cash flow surged 33.2% — exceptional cash generation, highest quality earnings signal.

Cash & Equivalents
Balance Sheet
+32.3%
$40.9M→$54.1M

Cash position surged 32.3% — strong cash generation or capital raise providing significant financial cushion.

Interest Expense
P&L
+23.1%
$13K→$16K

Interest costs rose 23.1% — monitor debt levels and coverage ratio in rising rate environment.

Revenue
P&L
+13.7%
$110.5M→$125.6M

Revenue growing 13.7% — solid top-line momentum, watch margins for quality of growth.

Total Liabilities
Balance Sheet
-13.7%
$277.9M→$239.9M

Liabilities reduced 13.7% — deleveraging improves balance sheet strength and financial flexibility.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-27
ADDED
The number of outstanding shares of the registrant s common stock, par value $0.01 per share, as of February 17, 2026 was 73,338,642 .
Any statements contained in this Annual Report on Form 10-K except for historical information, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, may be deemed to be forward-looking statements.
Without limiting the generality of the foregoing, words such as may, might, will, expect, believe, anticipate, goal, endeavor, strive, intend, plan, project, could, estimate, target, forecast, or continue or the negative of these words or other variations thereof or comparable terminology are intended to identify forward-looking statements.
Factors that may cause or contribute to such differences include, but are not limited to, those discussed in more detail in Item 1A.
Readers should carefully review these risks, as well as the additional risks described in other documents the Company files from time to time with the Securities and Exchange Commission (the SEC ).
In light of the significant risks and uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that such results will be achieved, and readers are cautioned not to place undue reliance on such forward-looking information.
Statements made herein are as of the date of the filing of this Annual Report on Form 10-K with the SEC and should not be relied upon as of any subsequent date.
Except as may be required by law, the Company disclaims any intent to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
We use our protein engineering capabilities to design new technologies and XmAb drug candidates with improved properties and multi-target mechanisms of action.
These Fc domains provide specific features such as bispecific structure and extended half-life and serve as the scaffolds for our XmAb drug candidates.
REMOVED
The number of outstanding shares of the registrant s common stock, par value $0.01 per share, as of February 14, 2025 was 70,461,934 .
All statements contained in this Annual Report other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements.
We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business.
Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved.
These statements, which represent our current expectations or beliefs concerning various future events, may contain words such as may, will, expect, anticipate, intend, plan, believe, estimate or other words indicating future results.
Given these uncertainties, you should not place undue reliance on these forward-looking statements.
We qualify all of our forward-looking statements by these cautionary statements.
We use our protein engineering capabilities to design new technologies and XmAb drug candidates with improved properties.
Our protein engineering capabilities allow us to continually explore new functionality in the Fc region, which provides us with opportunities to: Engineer new drug candidates and advance them through clinical development; Create new technology platforms; and Provide collaboration and licensing opportunities with partners for application of our technologies, access to our technologies, access to our drug candidates, or combinations of each.
Our Strategy Our goal is to become a leading biopharmaceutical company that develops and commercializes engineered biologic medicines to treat patients with severe and life-threatening diseases with unmet medical needs.
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