Xilio Therapeutics (XLO 2.10%), a clinical-stage biotechnology company developing tumor-activated immuno-oncology therapies, reported its Q2 2025 results on August 14, 2025. The company reported collaboration and license revenue (GAAP) of $8.1 million, up sharply from $2.4 million (GAAP) in Q2 2024 but missed the analyst consensus of $8.21 million (GAAP) by 1.3%. Net loss was $15.8 million, as research and development expense continued to rise. Despite this, Xilio ended the quarter with $121.6 million in cash and cash equivalents, more than double its balance at year-end 2024. The period highlights rapid advancement of the clinical pipeline, key partnership developments, and though operating losses (GAAP net loss) also increased.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.16) | $(0.08) | $(0.24) | N/A |
| Revenue (GAAP) | $8.1 million | $8.21 million | $2.4 million | 245.8% |
| Research & Development Expenses | $15.3 million | $11.2 million | 36.6% | |
| General & Administrative Expenses | $7.1 million | $5.8 million | 22.4% | |
| Cash and Cash Equivalents | $121.6 million(as of June 30, 2025) | N/A | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
About Xilio Therapeutics and Recent Focus Areas
Xilio Therapeutics focuses on developing immuno-oncology treatments using its platform for tumor-activated or "masked" drugs. This approach aims to activate therapies specifically within tumors, limiting the unwanted effects often seen with cancer immunotherapies. The flagship products in its pipeline are vilastobart, an anti-CTLA-4 antibody, and XTX301, a tumor-activated version of interleukin-12 (IL-12).
Over the past year, the company’s attention has been on clinical progress for these core candidates. Phase 2 data for vilastobart in microsatellite stable colorectal cancer (MSS CRC), reported in Q2 2025, and Phase 1 data for XTX301 in advanced tumors, reported in Q4 2024, are central to its strategy. The effectiveness of this tumor-localized platform, strong strategic industry partnerships, and robust intellectual property protection are all key success factors. Xilio’s business also depends heavily on maintaining collaborations with pharmaceutical partners like Roche, Gilead, and AbbVie.
Quarterly Developments: Pipeline Momentum and Finances
During Q2 2025, Xilio reported a substantial increase in collaboration and license revenue (GAAP), primarily from ongoing agreements with Gilead and AbbVie. Although its $8.1 million in collaboration and license revenue (GAAP) came in just below estimates, This represented more than a threefold increase over the same period last year. Collaboration and license revenue for the quarter was recognized in connection with the company’s collaborations with AbbVie and Gilead.
The company’s lead product, vilastobart (anti-CTLA-4 antibody), produced meaningful clinical updates. At the May 2025 ASCO meeting, updated Phase 2 trial results in metastatic MSS CRC (patients without liver metastases) showed a preliminary 26% objective response rate. These responses were described as deep and durable, Xilio plans further data updates in the first half of 2026.
XTX301, its tumor-activated IL-12 product, completed enrollment in the Phase 1A monotherapy dose escalation cohort as of Q2 2025, with additional dose expansion underway. Other pipeline assets, including XTX501, a masked PD-1/IL-2 bispecific antibody, and several masked T cell engager programs, made progress toward investigational new drug applications. The company expects to nominate a T cell engager development candidate in Q3 2025.
Financially, driven by a 36% increase in research and development spending compared to Q2 2024 as it ramped up enrollment and prepared for future clinical milestones: General and administrative costs rose by over 22% compared to Q2 2024, reflecting higher personnel and professional expenses. Net loss (GAAP) increased to $15.8 million, compared to $13.9 million for Q2 2024. Weighted average common shares outstanding, basic and diluted, grew significantly from 57,760,178 in Q2 2024 to 96,447,672 in Q2 2025, indicating dilution from recent capital raises. Notably, Xilio closed a follow-on public offering in June 2025, receiving initial gross proceeds of approximately $50.0 million before deducting underwriting discounts, commissions, and offering expenses, with warrants for an additional $100.0 million in potential future funding by the second half of 2026. This boosted the cash balance to $121.6 million as of Q2 2025, with total assets increasing from $71.1 million at year-end to $133.8 million. However, new warrant liabilities emerged on the balance sheet as of June 30, 2025 as a result of this financing.
Strategic Partnerships and Intellectual Property
Strategic partnerships played a prominent role in Q2 2025, with new collaborations and payments from Gilead and AbbVie. In March 2024, Xilio signed an exclusive license for the XTX301 program with Gilead. The agreement with AbbVie, announced in Q1 2025, leverages Xilio’s platform to discover and develop new tumor-activated immunotherapies, and the company received $52.0 million in total upfront payments.
Analysts view these agreements as critical for funding ongoing clinical development and for validation by established industry players. The collaboration structure also sets up the possibility of future milestone payments, as Xilio remains eligible for up to $2.1 billion in contingent payments plus royalties if certain project goals are met under its collaboration agreement with AbbVie. These partnerships, along with existing relationships with Roche, position the company to distribute risk and access additional resources beyond its own in-house efforts.
Xilio’s proprietary platform and intellectual property estate continued to expand. The company reported ongoing work in multiple T cell engager targets and plans to file new investigational new drug (IND) applications in 2026 and 2027. Protecting these candidate molecules and platform inventions remains central to Xilio’s competitive positioning in immuno-oncology.
No dividends were declared for the period, consistent with a biotech firm focused on research and development. XLO does not currently pay a dividend.
Looking Ahead: Financial Outlook and Key Milestones
Management stated that its cash resources as of June 30, 2025, are expected to last through Q3 2026, supporting advancement of key clinical programs. Xilio’s financial position was reinforced by the recent financing activity, but ongoing development costs and possible future share dilution via warrants remain important considerations for investors tracking the company’s capital needs.
No specific revenue or expense guidance was issued for upcoming periods. Investors will want to watch for additional clinical data from vilastobart in MSS CRC, including updated Phase 2 results expected at the ASCO Annual Meeting in Q2 2025 and further data anticipated in the first half of 2026, as well as progress in early-stage masked T cell engager development and updates on partnership milestones in the quarters ahead. The company’s business model remains reliant on advancement and validation of its clinical pipeline and the continued support from strategic collaborators. Xilio's continued financial performance will depend on managing expenses, securing additional funding, and achieving trial milestones in both clinical and preclinical programs.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
