XNCR

Xencor is a clinical-stage biotech monetizing its XmAb Fc engineering platform through partner royalties (Ultomiris/Alexion: $70.1M FY25; Monjuvi/Incyte: $10.2M FY25) and milestone payments (Amgen $30M, Incyte $12.5M+$25M+$4M in FY25). The MD&A makes clear that essentially all FY25 revenue is partner-derived — license, milestone, and non-cash royalty streams — not product sales. Top-line grew 13.7% to $126M and FY25 net loss narrowed 60.5% to -$91.9M, helped by an $87.9M swing in 'other income (expense), net' that includes mark-to-market on marketable equity securities; the operating loss itself barely moved (-$177.5M vs -$178.4M). Strip out the non-operating swing and the underlying P&L is essentially unchanged year-over-year.

The balance sheet is the strongest part of the story but is also the clock. Equity of $636M and liabilities/equity of 0.38x look healthy, but cash and equivalents are only $54.1M against R&D of $239M and operating cash burn of -$135M in FY25. Current portion of debt is $43.3M with another $76.5M long-term. The 10-K explicitly warns Xencor 'will require additional financing' and that raising funds 'may be dilutive' or require relinquishing rights — shares are already up 4.1% YoY and retained earnings are -$796M. Most of the $600M in current assets is presumably marketable securities (consistent with the FY25 'other income' gain), which extends runway but exposes the company to market risk.