Xilio Therapeutics (XLO) Q2 2026 earnings summary

Executive summary

• Focused on developing masked immuno-oncology therapies, including XTX501 (bispecific PD-1/masked IL-2), masked T cell engagers, and efarindodekin alfa (masked IL-12), with multiple programs in preclinical and clinical stages.

• Received FDA clearance for IND application of XTX501, with Phase 1/2 trial initiation planned for H2 2026 and initial data expected H2 2027.

• Advancing IND-enabling studies for masked T cell engager programs targeting CLDN18.2 and PSMA+STEAP1, with IND submissions anticipated in H2 2027.

• Strategic partnerships with AbbVie and Gilead have provided significant upfront and milestone payments, supporting ongoing R&D and clinical activities.

• No product sales revenue to date; all revenue is from collaboration and license agreements.

Financial highlights

• Collaboration and license revenue was $18.7M for Q2 2026, up from $8.1M in Q2 2025; $31.3M for the six months ended June 30, 2026, up from $11.0M year-over-year.

• Net loss for Q2 2026 was $6.4M, a significant improvement from $15.8M in Q2 2025; net loss for the six months ended June 30, 2026 was $15.9M, improved from $29.1M year-over-year.

• Cash and cash equivalents as of June 30, 2026 were $136.0M.

• Research and development expenses for the six months ended June 30, 2026 were $34.4M, up from $23.6M year-over-year; Q2 2026 R&D expenses decreased to $14.6M from $15.3M in Q2 2025.

• General and administrative expenses for the six months ended June 30, 2026 were $14.6M, down from $15.6M year-over-year; Q2 2026 G&A expenses increased to $7.6M from $7.1M in Q2 2025.

Outlook and guidance

• Existing cash and equivalents, plus a $6.0M milestone from AbbVie, expected to fund operations into Q1 2028, excluding potential warrant exercises and additional milestones.

• Up to $36.2M in additional gross proceeds possible in 2026 if all Series C warrants are exercised.

• Up to $31.0M in near-term milestones and option extension fees could be achieved under the AbbVie collaboration through H1 2027.

• IND submissions for CLDN18.2 and PSMA+STEAP1 programs planned for H2 2027.

• No revenue from product sales expected for several years; continued operating losses anticipated.