ALX Oncology Narrows Q3 Loss Amidst R&D Cost Cuts

TL;DR

**ALXO is burning through cash, but at a slower rate, and they'll need more money soon to keep the lights on and trials running.**

AI Summary

ALX Oncology Holdings Inc. reported a net loss of $22.144 million for the three months ended September 30, 2025, a 27.9% improvement from the $30.707 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $78.847 million, a 25.4% reduction from $105.687 million in 2024. Research and development expenses significantly decreased to $17.441 million for the quarter, down from $26.471 million in Q3 2024, and to $59.351 million for the nine months, down from $92.841 million in the prior year. General and administrative expenses also saw a slight decrease. The company's total assets declined from $147.775 million at December 31, 2024, to $82.723 million at September 30, 2025, primarily due to a substantial reduction in short-term investments from $110.190 million to $37.184 million. Cash and cash equivalents increased from $17.567 million to $23.442 million. The company acknowledges it will incur additional losses and requires further capital, intending to raise funds through equity sales, debt financings, or strategic alliances, while believing existing capital will fund operations for at least the next twelve months.

Why It Matters

ALX Oncology's reduced net loss and R&D expenses signal a potential shift in operational strategy, which could impact investor confidence and future drug development timelines. The significant decrease in short-term investments, while cash increased, suggests a reallocation of capital that investors should scrutinize for its long-term implications on liquidity and funding for clinical trials. For employees, continued losses and the need for additional capital could create uncertainty regarding job security and future growth opportunities. The competitive landscape in oncology demands continuous R&D investment, and ALXO's reduced spending might affect its ability to bring novel therapies to market against larger, better-funded competitors, ultimately impacting patients awaiting new treatments.

Risk Assessment

Risk Level: high — The company reported an accumulated deficit of $699.969 million as of September 30, 2025, and has not generated product revenues, indicating a high reliance on external financing. Total assets decreased significantly from $147.775 million to $82.723 million within nine months, primarily due to a $73.006 million reduction in short-term investments, highlighting a shrinking capital base. The filing explicitly states, "there can be no assurance that the Company will be successful in acquiring additional funding at levels sufficient to fund its operations or on terms acceptable to the Company," which is a direct going concern risk.

Analyst Insight

Investors should exercise extreme caution and consider ALX Oncology a highly speculative investment. Monitor closely for announcements regarding new financing rounds or strategic partnerships, as the company's ability to fund future operations and clinical trials is contingent on securing additional capital. Evaluate the impact of reduced R&D spending on their pipeline's progress and competitive positioning.

Financial Highlights

debt To Equity

0.85

revenue

$0

operating Margin

N/A

total Assets

$82.723M

total Debt

$10.112M

net Income

-$22.144M

eps

-$0.41

gross Margin

N/A

cash Position

$23.442M

revenue Growth

N/A

Key Numbers

• $22.144M — Net Loss (Q3 2025) (27.9% decrease from $30.707M in Q3 2024)
• $78.847M — Net Loss (9 Months 2025) (25.4% decrease from $105.687M in 9 Months 2024)
• $17.441M — R&D Expenses (Q3 2025) (34.1% decrease from $26.471M in Q3 2024)
• $59.351M — R&D Expenses (9 Months 2025) (36.1% decrease from $92.841M in 9 Months 2024)
• $82.723M — Total Assets (Sep 30, 2025) (44.0% decrease from $147.775M at Dec 31, 2024)
• $37.184M — Short-term Investments (Sep 30, 2025) (66.3% decrease from $110.190M at Dec 31, 2024)
• $23.442M — Cash and Cash Equivalents (Sep 30, 2025) (33.4% increase from $17.567M at Dec 31, 2024)
• $699.969M — Accumulated Deficit (Sep 30, 2025) (Increased from $621.122M at Dec 31, 2024)
• $65.162M — Net Cash Used in Operating Activities (9 Months 2025) (27.5% decrease from $89.866M in 9 Months 2024)
• 54,218,001 — Common Stock Outstanding (Oct 31, 2025) (Increased from 53,052,912 at Dec 31, 2024)

Key Players & Entities

• ALX ONCOLOGY HOLDINGS INC. (company) — Registrant and clinical-stage biotechnology company
• $22.144 million (dollar_amount) — Net loss for the three months ended September 30, 2025
• $30.707 million (dollar_amount) — Net loss for the three months ended September 30, 2024
• $78.847 million (dollar_amount) — Net loss for the nine months ended September 30, 2025
• $105.687 million (dollar_amount) — Net loss for the nine months ended September 30, 2024
• $17.441 million (dollar_amount) — Research and development expenses for Q3 2025
• $26.471 million (dollar_amount) — Research and development expenses for Q3 2024
• $147.775 million (dollar_amount) — Total assets as of December 31, 2024
• $82.723 million (dollar_amount) — Total assets as of September 30, 2025
• $699.969 million (dollar_amount) — Accumulated deficit as of September 30, 2025

FAQ

Risk Factors

• Going Concern and Need for Additional Capital [high — financial]: The company has incurred significant net losses and an accumulated deficit of $699.969 million as of September 30, 2025. It acknowledges it will incur further losses and requires additional capital, which it plans to raise through equity sales, debt financings, or strategic alliances. Existing capital is projected to fund operations for at least the next twelve months.
• Dependence on Key Personnel and Research Success [high — operational]: As a clinical-stage oncology company, ALX Oncology's success is heavily reliant on its ability to attract and retain qualified scientific and management personnel. Furthermore, the development of its product candidates, particularly ALX148, depends on successful clinical trials and regulatory approvals, which are inherently uncertain and subject to significant risks.
• Drug Development and Regulatory Approval Risks [high — regulatory]: The development of pharmaceutical products is a lengthy, expensive, and uncertain process. ALX Oncology faces risks associated with the design and conduct of clinical trials, the interpretation of trial results, and the ability to obtain regulatory approval from bodies like the FDA. Delays or failures in these stages can significantly impact the company's prospects.
• Competition in the Oncology Market [medium — market]: The oncology market is highly competitive, with numerous companies developing therapies for similar indications. ALX Oncology competes with established pharmaceutical companies and emerging biotechs. The success of competitors' products or the emergence of superior treatments could adversely affect its market position and commercial viability.
• Significant Decrease in Total Assets and Investments [medium — financial]: Total assets decreased by 44.0% from $147.775 million at December 31, 2024, to $82.723 million at September 30, 2025. This was largely driven by a 66.3% reduction in short-term investments, from $110.190 million to $37.184 million, indicating a strategic shift or utilization of cash.
• Reduced Operating Expenses [medium — financial]: The company has significantly reduced its operating expenses, with R&D expenses down 34.1% to $17.441 million in Q3 2025 and 36.1% for the nine months to $59.351 million. General and administrative expenses also saw a decrease. While this improves the net loss, it may also reflect a scaling back of development activities.

Industry Context

ALX Oncology operates in the highly competitive and capital-intensive oncology drug development sector. The industry is characterized by long development cycles, high R&D costs, and significant regulatory hurdles. Success hinges on innovative science, robust clinical trial data, and effective commercialization strategies. Key trends include the rise of targeted therapies, immunotherapies, and personalized medicine approaches.

Regulatory Implications

As a clinical-stage biopharmaceutical company, ALX Oncology is subject to stringent regulations by health authorities like the FDA. The path to drug approval is complex and requires extensive clinical trials demonstrating safety and efficacy. Any delays, adverse findings in trials, or failure to gain regulatory approval for its lead candidate, ALX148, would have severe consequences.

What Investors Should Do

1. Monitor cash burn rate and runway: With a cash position of $23.442 million and a stated need for future capital, investors should closely track the company's ability to secure additional funding and manage its operating expenses.
2. Evaluate R&D pipeline progress: Key to ALX Oncology's future is the successful advancement of its drug candidates through clinical trials. Investors should monitor trial results and regulatory updates for ALX148.
3. Assess competitive landscape: The oncology market is crowded. Investors should evaluate ALX Oncology's competitive positioning against other therapies in development for similar indications.
4. Analyze capital raising activities: The company's stated intention to raise funds through equity or debt means potential dilution for existing shareholders or increased financial leverage.

Key Dates

• 2025-09-30: End of Third Quarter 2025 — Reported net loss of $22.144 million and total assets of $82.723 million. Cash and cash equivalents stood at $23.442 million.
• 2025-12-31: End of Fiscal Year 2024 — Reported total assets of $147.775 million, with short-term investments at $110.190 million and cash at $17.567 million.

Glossary

Accumulated deficit

The cumulative net losses of a company since its inception, minus any net profits. It represents the total amount of money a company has lost over its lifetime. (Indicates the company's historical unprofitability, with a significant accumulated deficit of $699.969 million as of September 30, 2025.)

Research and development (R&D) expenses

Costs incurred by a company in the process of developing new products or services, or improving existing ones. For biotech and pharma, this includes clinical trials, drug discovery, and regulatory submissions. (A key expense for ALX Oncology, which has seen a significant decrease in Q3 2025 to $17.441 million, down from $26.471 million in Q3 2024.)

Short-term investments

Investments that are expected to be converted into cash within one year. These are typically highly liquid assets. (A substantial portion of ALX Oncology's assets, which decreased significantly from $110.190 million at year-end 2024 to $37.184 million at September 30, 2025.)

Going concern

An accounting assumption that a business will continue to operate for the foreseeable future. If there are substantial doubts about a company's ability to continue as a going concern, it must be disclosed. (The company's need for additional capital and history of losses raise substantial doubt about its ability to continue as a going concern.)

Year-Over-Year Comparison

Compared to the prior year, ALX Oncology has significantly reduced its net loss, with Q3 2025 losses down 27.9% to $22.144 million and nine-month losses down 25.4% to $78.847 million. This improvement is largely driven by a substantial decrease in R&D expenses, which fell by 34.1% in Q3 and 36.1% for the nine months. Total assets have also decreased by 44.0%, primarily due to a significant reduction in short-term investments, while cash and cash equivalents have increased by 33.4%.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share ALXO The Nasdaq Global Se

Filing Documents

• alxo-20250930.htm (10-Q) — 3029KB
• alxo-ex31_1.htm (EX-31.1) — 18KB
• alxo-ex31_2.htm (EX-31.2) — 19KB
• alxo-ex32_1.htm (EX-32.1) — 11KB
• alxo-ex32_2.htm (EX-32.2) — 11KB
• 0001193125-25-272281.txt ( ) — 10361KB
• alxo-20250930.xsd (EX-101.SCH) — 1101KB
• alxo-20250930_htm.xml (XML) — 1951KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Comprehensive Loss 7 Condensed Consolidated Statements of Stockholders' Equity 8 Condensed Consolidated Statements of Cash Flows 10 Notes to Condensed Consolidated Financial Statements 11 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 33 Item 4

Controls and Procedures

Controls and Procedures 34 PART II OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 35 Item 1A

Risk Factors

Risk Factors 35 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 82 Item 3 Defaults Upon Senior Securities 82 Item 4 Mine Safety Disclosures 82 Item 5 Other Information 82 Item 6 Exhibits 83

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) ALX ONCOLOGY HOLDINGS INC. Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share and per share amounts) September 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 23,442 $ 17,567 Short-term investments 37,184 110,190 Prepaid expenses and other current assets 5,890 6,595 Total current assets 66,516 134,352 Property and equipment, net 1,351 2,905 Long-term investments 5,838 3,524 Other assets 9,018 6,994 Total assets $ 82,723 $ 147,775 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 6,583 $ 4,497 Payable and accrued liabilities due to related party — 149 Term loan, current 4,348 435 Accrued expenses and other current liabilities 16,791 13,419 Total current liabilities 27,722 18,500 Term loan, non-current 5,764 9,469 Other non-current liabilities 4,437 6,188 Total liabilities 37,923 34,157 Commitments and contingencies (Note 12) Stockholders' equity Common stock, $ 0.001 par value; 1,000,000,000 shares authorized as of September 30, 2025 and December 31, 2024; 53,577,566 and 53,052,912 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 54 53 Additional paid-in capital 744,672 734,412 Accumulated other comprehensive income 43 275 Accumulated deficit ( 699,969 ) ( 621,122 ) Total stockholders' equity 44,800 113,618 Total liabilities and stockholders' equity $ 82,723 $ 147,775 See accompanying notes to these condensed consolidated financial statements (unaudited). 5 ALX ONCOLOGY HOLDINGS INC. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Operating expenses:

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View this 10-Q filing on SEC EDGAR