Key Highlights

  • Revenue for the third quarter reached USD 116.5 million, compared with USD 21.0 million a year earlier, with Royalty income accounting for USD 87.5 million after rising from USD 21.0 million.
  • Income attributable to the company came in at USD 39.4 million, or USD 0.50 a diluted share, after a year-earlier net loss of USD 6.0 million, or USD 0.08.
  • The Alexion agreement on U.S. Ultomiris royalties is worth USD 105.0 million overall, and USD 77.4 million of it was booked as royalty Revenue this quarter.
  • Holdings of USD 610.8 million at year-end 2025 had shrunk to USD 555.7 million in cash, equivalents and marketable Debt securities by September 30, 2026.

Alexion Settlement Drives a USD 95.5 Million Revenue Jump

Xencor (NASDAQ:XNCR) submitted its quarterly filing on November 4, 2026. Top-line revenue grew USD 95.5 million to USD 116.5 million, made up of USD 29.0 million in milestone payments and USD 87.5 million in royalties. Alexion's March 4, 2026 position that it owed no further U.S. royalties on Ultomiris led the company to reduce that royalty figure to zero during the first quarter. A July 29, 2026 accord settled the matter, granting USD 105.0 million payable in two USD 52.5 million halves. The first arrived in August 2026, while the second falls due within 14 days after the first anniversary. Recognition split into USD 27.6 million in the second quarter and USD 77.4 million in the third, and ex-U.S. royalties remain in place.

Spending Rises Even as Quarterly Operating Income Turns Positive

The company develops antibody medicines for cancer and autoimmune conditions through its XmAb technology. Research and Development outlays increased to USD 84.3 million from USD 54.4 million, whereas general and administrative costs dropped to USD 9.4 million from USD 14.2 million. The result was operating income of USD 22.9 million, a turnaround from a USD 47.5 million operating loss a year before. Other income, net, fell to USD 16.4 million from USD 41.5 million. Since the settlement was a one-off item, the nine-month picture matters: that period still shows a net loss of USD 111.2 million, or USD 1.47 a share, compared with USD 85.3 million, or USD 1.15.

XmAb819 Response Data and Cash Runway

Lead oncology candidate XmAb819 produced five confirmed partial responses among 11 evaluable patients in the 400 mcg/kg intravenous group, equating to a 45.5% confirmed response rate by investigator review, based on data cut off October 1, 2026. Regulatory engagement with the FDA regarding a potential Accelerated Approval route is slated for the first half of 2027. XmAb541 recorded response rates near 14% for ovarian cancer and 28% for germ cell tumors, though reversible hearing Impairment capped higher dosing. Management expects present funds to cover operations for no less than twelve months. The filing flags small cohort sizes, possible clinical setbacks and reliance on partner milestones as risks.

Where Things Stand

Mainly a one-time catch-up. Xencor (NASDAQ:XNCR) recognized USD 77.4 million of Alexion settlement money as royalty revenue this quarter, which produced the USD 39.4 million profit. The nine-month net loss of USD 111.2 million indicates this quarter does not reflect the underlying trend. Upcoming markers include the second USD 52.5 million payment, further XmAb819 data during the first half of 2027 and the FDA discussion planned for that window.