Macrogenics' Q3 Profit Plunges Amid Revenue Decline, Cash Burn Accelerates

TL;DR

MGNX's cash is burning fast, and declining revenue means they'll need to raise more capital soon, likely diluting shareholders.

AI Summary

MACROGENICS INC reported a net income of $16.822 million for the three months ended September 30, 2025, a significant decrease from $56.309 million in the same period of 2024. For the nine months ended September 30, 2025, the company posted a net loss of $60.465 million, widening from a $51.545 million loss in the prior year. Total revenues declined to $72.839 million for the quarter, down from $110.708 million, primarily due to a drop in collaborative and other agreements revenue from $101.408 million to $53.003 million and the absence of product sales, which were $4.161 million in Q3 2024. However, contract manufacturing revenue increased substantially to $19.836 million from $4.573 million. Research and development expenses decreased to $32.709 million from $40.543 million for the quarter, and selling, general and administrative expenses also fell to $9.905 million from $14.104 million. The company's cash and cash equivalents decreased from $182.840 million at December 31, 2024, to $80.129 million at September 30, 2025, with net cash used in operating activities totaling $124.061 million for the nine-month period. A new liability of $70.256 million related to future royalties was recorded, stemming from the sale of future royalty rights.

Why It Matters

MACROGENICS INC's substantial decline in net income and accelerating cash burn for the nine months ended September 30, 2025, signals increased financial pressure for investors. The significant drop in collaborative revenue and the cessation of product sales, despite growth in contract manufacturing, highlight challenges in its core business model and reliance on partnerships. This could impact the company's ability to fund its extensive pipeline of product candidates, including lorigerlimab and MGC026, potentially delaying clinical trials or requiring further dilutive financing. Competitors in the biopharmaceutical space, particularly those developing antibody-based therapeutics for cancer, may gain an advantage if MACROGENICS INC struggles to advance its programs, affecting future market share and innovation in cancer treatment.

Risk Assessment

Risk Level: high — The company reported a net loss of $60.465 million for the nine months ended September 30, 2025, and net cash used in operating activities of $124.061 million, significantly depleting cash and cash equivalents from $182.840 million to $80.129 million. This rapid cash burn, coupled with a substantial decrease in collaborative revenue from $105.180 million to $66.915 million year-over-year, indicates a high risk to liquidity and future operations.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to MGNX given the rapid cash burn and declining core revenues. Monitor closely for any announcements regarding new collaborations or financing rounds, as further equity offerings could lead to significant dilution.

Financial Highlights

debt To Equity

3.04

revenue

$72.839M

operating Margin

25.6%

total Assets

$270.763M

total Debt

$203.762M

net Income

$16.822M

eps

$0.27

gross Margin

N/A

cash Position

$80.129M

revenue Growth

-34.2%

Revenue Breakdown

Key Numbers

• $16.822M — Net income (Q3 2025) (Decreased from $56.309M in Q3 2024)
• $(60.465M) — Net loss (YTD Q3 2025) (Widened from $(51.545M) in YTD Q3 2024)
• $72.839M — Total revenues (Q3 2025) (Decreased from $110.708M in Q3 2024)
• $53.003M — Collaborative and other agreements revenue (Q3 2025) (Decreased from $101.408M in Q3 2024)
• $19.836M — Contract manufacturing revenue (Q3 2025) (Increased from $4.573M in Q3 2024)
• $80.129M — Cash and cash equivalents (Sept 30, 2025) (Decreased from $182.840M at Dec 31, 2024)
• $(124.061M) — Net cash used in operating activities (YTD Q3 2025) (Increased from $(29.966M) in YTD Q3 2024)
• $70.256M — Liability related to future royalties (Sept 30, 2025) (New liability recorded from sale of future royalty rights)
• $32.709M — Research and development expenses (Q3 2025) (Decreased from $40.543M in Q3 2024)
• 63,258,532 — Shares outstanding (Nov 7, 2025) (Increased from 62,819,857 at Dec 31, 2024)

Key Players & Entities

• MACROGENICS INC (company) — biopharmaceutical company
• TerSera Therapeutics, LLC (company) — partner for MARGENZA
• Gilead Sciences, Inc. (company) — collaborator for MGD024
• FDA (regulator) — U.S. Food and Drug Administration
• MARGENZA (product) — approved anti-HER2 monoclonal antibody
• ZYNYZ (product) — approved anti-PD-1 mAb
• TZIELD (product) — approved anti-CD3 mAb
• lorigerlimab (product) — proprietary bispecific DART molecule in clinical development
• MGC026 (product) — proprietary ADC in clinical development
• MGD024 (product) — bispecific DART antibody developed with Gilead

FAQ

Risk Factors

• Deteriorating Cash Position [high — financial]: Cash and cash equivalents decreased from $182.840 million at December 31, 2024, to $80.129 million at September 30, 2025. This, coupled with $124.061 million in net cash used in operating activities for the nine months ended September 30, 2025, indicates a significant burn rate and potential future liquidity concerns.
• New Royalty Liability [high — financial]: The company recorded a new liability of $70.256 million related to future royalties stemming from the sale of future royalty rights. This represents a significant financial obligation that will impact future cash flows.
• Widening Net Loss [medium — financial]: The net loss for the nine months ended September 30, 2025, widened to $60.465 million from $51.545 million in the prior year. This trend, despite reduced R&D and SG&A expenses, suggests underlying profitability challenges.
• Declining Collaborative Revenue [medium — market]: Collaborative and other agreements revenue dropped from $101.408 million in Q3 2024 to $53.003 million in Q3 2025. This significant decrease highlights a potential slowdown in partnership activities or reduced contributions from existing collaborations.
• Dependence on Product Development and Approvals [high — operational]: As a biopharmaceutical company, MacroGenics' success is heavily reliant on the successful development, regulatory approval, and commercialization of its product candidates, such as lorigerlimab, MGC026, and MGC028. Delays or failures in these processes pose a significant risk.
• FDA Approval and Post-Market Surveillance [medium — regulatory]: The company has three products approved by the FDA (MARGENZA, ZYNYZ, TZIELD). However, ongoing regulatory compliance, potential post-market issues, and the approval process for new candidates present continuous regulatory risks.
• Contract Manufacturing Reliance [low — operational]: While contract manufacturing revenue increased substantially to $19.836 million, this also indicates a reliance on external clients for a significant portion of revenue, which can be subject to client-specific risks and demand fluctuations.
• Decreased R&D and SG&A Expenses [low — financial]: R&D expenses decreased to $32.709 million and SG&A expenses fell to $9.905 million in Q3 2025 compared to the prior year. While this reduces immediate cash burn, it could also signal a slowdown in pipeline advancement or market penetration efforts.

Industry Context

MacroGenics operates in the highly competitive biopharmaceutical industry, focusing on oncology therapeutics. The industry is characterized by long development cycles, significant R&D investment, and stringent regulatory hurdles. Key trends include the rise of targeted therapies, antibody-drug conjugates (ADCs), and multi-specific antibodies, areas where MacroGenics has focused its proprietary platforms.

Regulatory Implications

As a biopharmaceutical company with FDA-approved products and ongoing clinical trials, MacroGenics faces significant regulatory oversight. Compliance with cGMP standards for its manufacturing facility and adherence to FDA guidelines for drug development and approval are critical. Any regulatory setbacks or delays in approvals for its pipeline candidates could have severe financial and operational consequences.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing a significant decrease in net income and revenue, and a substantial increase in net cash used in operating activities.
• 2025-12-31: End of Fiscal Year 2024 — Baseline for comparison of cash and cash equivalents, which decreased from $182.840M to $80.129M by Q3 2025.
• 2024-09-30: End of Q3 2024 — Prior year comparable period, showing higher net income ($56.309M) and revenue ($110.708M), but also lower contract manufacturing revenue and no royalty liability.
• 2000-01-01: Company Inception — Marks the beginning of the company's operations and accumulation of over $1.6 billion in non-dilutive funding from collaborations.

Glossary

Antibody-drug conjugates (ADCs)

A type of targeted therapy that uses an antibody to deliver a potent chemotherapy drug directly to cancer cells. (MacroGenics is developing ADCs like MGC026 and MGC028, which are key components of their pipeline.)

DART and TRIDENT molecules

Proprietary antibody technology platforms developed by MacroGenics for creating multi-specific antibodies. (These platforms are fundamental to the company's ability to generate innovative product candidates like lorigerlimab.)

cGMP

Current Good Manufacturing Practice, a system for ensuring that products are consistently produced and controlled according to quality standards. (Indicates MacroGenics operates a commercial-scale manufacturing facility adhering to strict regulatory standards.)

Non-dilutive funding

Funding that does not require the company to issue equity, such as revenue from collaborations or licensing agreements. (MacroGenics has received over $1.6 billion in non-dilutive funding, which is crucial for financing its R&D without diluting existing shareholders.)

Liability related to future royalties

A financial obligation representing the company's commitment to pay a portion of future royalty revenue to a third party, often arising from the sale of royalty rights. (A new $70.256 million liability was recorded, impacting the company's financial position and future cash flows.)

Accumulated deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. (MacroGenics has a significant accumulated deficit of $1.230 billion as of September 30, 2025, typical for development-stage biopharmaceutical companies.)

Contract manufacturing

Providing manufacturing services for other companies' products. (MacroGenics generates revenue by offering its manufacturing capabilities to collaborators and third parties.)

Marketable securities

Investments in stocks, bonds, or other financial instruments that can be readily bought or sold in the open market. (An increase in marketable securities from $18.827M to $66.268M suggests a strategic allocation of cash.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, MacroGenics Inc. has experienced a significant downturn in financial performance. Total revenues for the nine months ended September 30, 2025, decreased to $108.273 million from $130.609 million in 2024, primarily driven by a sharp decline in collaborative and other agreements revenue and the absence of product sales. While operating expenses, including R&D and SG&A, have been reduced, the net loss has widened to $60.465 million from $51.545 million. The company's cash position has also deteriorated substantially, and a new, significant royalty liability has been introduced.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share MGNX Nasdaq Global Select Ma

Filing Documents

• mgnx-20250930.htm (10-Q) — 915KB
• exhibit31-1q32025.htm (EX-31.1) — 9KB
• exhibit31-2q32025.htm (EX-31.2) — 9KB
• exhibit32-1q32025.htm (EX-32.1) — 4KB
• exhibit32-2q32025.htm (EX-32.2) — 4KB
• 0001125345-25-000108.txt ( ) — 5455KB
• mgnx-20250930.xsd (EX-101.SCH) — 40KB
• mgnx-20250930_cal.xml (EX-101.CAL) — 48KB
• mgnx-20250930_def.xml (EX-101.DEF) — 211KB
• mgnx-20250930_lab.xml (EX-101.LAB) — 536KB
• mgnx-20250930_pre.xml (EX-101.PRE) — 375KB
• mgnx-20250930_htm.xml (XML) — 708KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets at September 30, 2025 (unaudited) and December 31, 2024 Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended Septem ber 30, 2025 and September 30, 2024 (unaudited) Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2025 and September 30, 2024 (unaudited) Consolidated Statements of Cash Flows for the ni ne months ended Sept ember 30, 2025 and September 30, 2024 (unaudited)

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited)

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Controls and Procedures

Item 4. Controls and Procedures

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings

Risk Factors

Item 1A. Risk Factors

Other Information

Item 5. Other Information

Exhibits

Item 6. Exhibits

Signatures

Signatures

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements that may relate to our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. Many of these statements appear, in particular, under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q. Forward-looking statements can often be identified by the use of terminology such as "subject to", "believe", "anticipate", "plan", "expect", "intend", "estimate", "project", "may", "will", "should", "would", "could", "can", the negatives thereof, variations thereon and similar expressions, or by discussions of strategy. All forward-looking statements, including, without limitation, our examination of historical operating trends, are based upon our current expectations and various assumptions. We believe there is a reasonable basis for our expectations and beliefs, but they are inherently uncertain. We may not realize our expectations, and our beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements. The following uncertainties and factors, among others (including those set forth under "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and "Part II, Item 1A. Risk Factors" of this Quarterly Report on Form 10-Q), could affect future performance and cause actual results to differ materially from those matters expressed in or implied by forward-looking statements: our plans to develop and commercialize our product candidates; the outcomes of our ongoing and planned clinical trials and the tim

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MACROGENICS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) September 30, 2025 December 31, 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 80,129 $ 182,840 Marketable securities 66,268 18,827 Accounts receivable 69,230 4,309 Inventory, net 8,750 — Prepaid expenses and other current assets 7,714 11,514 Total current assets 232,091 217,490 Property, equipment and software, net 13,975 18,100 Operating lease right-of-use assets 23,305 24,509 Other non current assets 1,392 1,556 Total assets $ 270,763 $ 261,655 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 5,940 $ 5,013 Accrued expenses and other current liabilities 23,087 29,334 Deferred revenue 10,302 16,319 Lease liabilities 5,141 4,864 Total current liabilities 44,470 55,530 Liability related to future royalties 70,256 — Deferred revenue, net of current portion 55,840 55,503 Lease liabilities, net of current portion 31,868 32,597 Other non current liabilities 1,328 1,968 Total liabilities 203,762 145,598 Stockholders' equity: Common stock, $ 0.01 par value -- 125,000,000 shares authorized, 63,258,532 and 62,819,857 shares outstanding at September 30, 2025 and December 31, 2024, respectively 633 628 Additional paid-in capital 1,296,546 1,285,143 Accumulated other comprehensive income 5 4 Accumulated deficit ( 1,230,183 ) ( 1,169,718 ) Total stockholders' equity 67,001 116,057 Total liabilities and stockholders' equity $ 270,763 $ 261,655 See notes to consolidated financial statements. 1 MACROGENICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) (in thousands, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues: Collaborative and other agreements $ 53,003 $ 101,408 $ 66,915 $ 105,180 Product sales, net — 4,161 — 14,270 Contract manufact

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Nature of Operations Description of the business MacroGenics, Inc. (the Company) is incorporated in the state of Delaware. The Company is a biopharmaceutical company focused on developing innovative antibody-based therapeutics for the treatment of cancer. The Company generates its pipeline of product candidates from its proprietary suite of antibody technology platforms. The Company is currently developing therapeutics utilizing multiple modalities, including antibody-drug conjugates (ADCs) and multi-specific antibodies (which are referred to as DART and TRIDENT molecules). The combination of the Company's technology platforms and antibody engineering expertise has allowed the Company to generate promising product candidates – three of which have received marketing approval by the U.S. Food and Drug Administration (FDA) – and to enter into several strategic collaborations with global biopharmaceutical companies. These collaborations have provided the Company with over $ 1.6 billion of non-dilutive funding since its inception in 2000, and have enabled the Company to leverage the additional expertise of its collaborators to advance the development of multiple partnered product candidates. In addition, the Company operates a commercial-scale cGMP antibody manufacturing facility in its Maryland headquarters to support its clinical programs. The Company also provides outsourced contract development and manufacturing services to its collaborators and other third parties for commercial and clinical products to offset a portion of the operating costs of this facility. The Company is currently advancing three proprietary product candidates in clinical development: lorigerlimab, a bispecific DART molecule that targets checkpoint inhibitors PD-1 and CTLA-4; MGC026, an ADC that targets B7-H3 and delivers a novel topoisomerase 1 inhibitor (TOP1i)-based linker-payload, and MGC028, an ADC that targets ADAM9 and deliver