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ALX Oncology Holdings (ALXO)
NASDAQ:ALXO
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ALX Oncology Holdings
(NASDAQ:ALXO)
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Rating:61Neutral
Price Target:
$2.00
▼(-6.10% Downside)
Action:ReiteratedDate:02/04/26
The score is held back primarily by weak financial performance (no revenue, large losses, and heavy cash burn despite lower debt). Offsetting this, technicals are constructive with price above major moving averages and positive momentum, while recent updates point to encouraging clinical progress and improved funding via a sizeable equity raise. Valuation remains challenged due to negative earnings and no dividend support.
Positive Factors
Biomarker-driven efficacy of evorpacept
Demonstrated biomarker-linked efficacy (CD47 expression) materially de-risks development and supports a precision-medicine pathway. A validated predictive biomarker can improve trial success, speed regulatory review, and enable targeted commercial positioning, increasing long-term probability of a viable product.
Pipeline diversification with ALX2004 ADC progress
Advancement of an EGFR-targeted ADC alongside evorpacept spreads program risk and creates multiple value pathways. Early absence of DLT in Phase I supports continued development, potentially creating optionality for partnerships or later-stage programs independent of the lead asset's outcome.
Material equity raise strengthens funding
A sizable underwritten financing materially improves near- to medium-term funding for clinical programs, reducing immediate financing risk. This funding enables execution of ongoing trials and strategic optionality over the next 2-6 months, increasing probability programs reach meaningful inflection points.
Negative Factors
No revenue and high cash burn
As a pre-revenue biotech ALX relies on financing to fund R&D. Persistent negative operating cash flow and near-term free-cash-flow deficits mean continued dilution or partnerships are required. This structural cash burn constrains runway and strategic flexibility absent clinical or partnership milestones.
Contracting equity base reduces balance-sheet cushion
A sharply smaller equity and asset base limits the company’s ability to absorb clinical setbacks or extend development timelines without dilution. Weaker balance-sheet cushion raises cost of capital and narrows strategic options for licensing, M&A, or self-funding later-stage programs.
Market positioning uncertainty and ADC safety risk
Competitive dynamics (no clear SOC post-ENHERTU) create commercialization uncertainty for evorpacept. Separately, historical EGFR-ADC toxicity is a program-level risk for ALX2004. Together they represent durable execution and market-adoption risks that could slow approvals or limit addressable patient populations.
ALX Oncology Holdings (ALXO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$279.45M
Dividend YieldN/A
Average Volume (3M)670.12K
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue GrowthN/A
EPS Growth31.98%
CountryUS
Employees65
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.42
Shares Outstanding131,197,110
10 Day Avg. Volume555,214
30 Day Avg. Volume670,121
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.77
Price to Sales (P/S)0.00
P/FCF Ratio-0.71
Enterprise Value/Market Cap0.35
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda-0.92
Forecast
1Y Price Target
$5.00Price Target Upside134.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.88
Revenue Forecast (FY)N/A
ALX Oncology Holdings Business Overview & Revenue Model
Company DescriptionALX Oncology Holdings Inc., a clinical-stage immuno-oncology company, focuses on developing therapies for patients fighting cancer. Its lead product candidate is ALX148, a CD47 blocking therapeutic that is in Phase 1b/2 clinical trial used for the treatment of myelodysplastic syndromes; and for the treatment of acute myeloid leukemia and non-Hodgkin's lymphoma, as well as a range of solid tumor indications, including head and neck squamous cell carcinoma, human epidermal growth factor receptor 2 (HER2) positive gastric/gastroesophageal junction carcinoma, HER2-expressing breast cancer, and other solid tumors. The company's pre-clinical products include ALTA-002, a SIRPa TRAAC that offers ways to engage the innate and adaptive immune response to cancer. ALX Oncology Holdings Inc. has a collaboration agreement with Merck for a Phase 2 trial evaluating ALX148 in combination with pembrolizumab with and without chemotherapy in patients with head and neck cancer; Zymeworks on a Phase 1 trial evaluating ALX148 with the HER2-targeting bispecific antibody zanidatamab in patients with HER2-expressing breast cancer and other solid tumors; and Tallac Therapeutics for the development, manufacturing and commercialization of a novel class of cancer immunotherapeutics. It also has a license agreement with Selexis SA and Crystal Bioscience, Inc. The company was founded in 2015 and is headquartered in South San Francisco, California.
How the Company Makes MoneyALX Oncology primarily makes money through partnerships and collaborations with other pharmaceutical companies, aiming to co-develop and commercialize its lead product candidate, evorpacept. Revenue is also generated from milestone payments and licensing fees associated with these partnerships. Additionally, the company may earn income from grants or funding to support its research and development activities. As a clinical-stage company, ALX Oncology's revenue model is heavily reliant on the successful progress and eventual approval of its therapies, leading to potential future sales.
ALX Oncology Holdings Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasizes multiple encouraging clinical signals for evorpocept (EVO) — including biomarker‑driven responses across gastric, breast and NHL settings — and steady clinical progress for the ALX 2004 ADC. The company materially strengthened its balance sheet with a recent equity financing providing runway through 2028 and reduced quarterly operating losses year‑over‑year. Key risks remain: several datasets are early and small, biomarker cut‑point and prevalence uncertainty prompted an upsizing of ASPEN, safety and therapeutic window for the ADC must be confirmed clinically, and several important readouts are still 12–18 months away. Overall, positive clinical validation and a strong financing event outweigh the staging‑related uncertainties.Q4-2025 Updates
Positive Updates
Robust clinical data validating CD47 biomarker
Multiple independent datasets (gastric, breast, NHL) demonstrate CD47 as a predictive biomarker for evorpocept (EVO). In HER2-positive gastric cancer CD47-high subgroup, response rate was 65% vs 26% control (delta ~39%), median PFS 18.4 vs 7.0 months (HR 0.39), median OS 17 vs ~10 months (HR 0.7), and median duration of response >2 years (>3x control). In a small HER2-positive breast combo cohort (n=9 confirmed HER2), response rate was 56% with median PFS 7.4 months; responders were predominantly CD47 overexpressors.
Strong activity in hematologic malignancies
In treatment‑naive, first‑line indolent non‑Hodgkin’s lymphoma patients treated with EVO + R‑squared, complete response (CR) rate reached 92%, described as almost double the CR rate seen with R‑squared alone, supporting broad potential of EVO in heme malignancies when combined with Fc‑active antibodies.
ALX 2004 (EGFR ADC) progressing through dose escalation
ALX 2004 cleared the first two dose cohorts and is dosing at 4 mg/kg in phase 1 (dose escalation + expansion). Preclinical data show potent, dose‑dependent antitumor activity across EGFR expression levels and relevant mutations, with no EGFR‑related skin toxicity or interstitial lung disease seen in GLP nonhuman primate tox studies. Full dose‑escalation safety data expected in 2H 2026.
Large financing strengthens balance sheet and runway
Completed an equity financing with gross proceeds of $150,000,000 and net proceeds of $140,400,000. Company had $48.3M cash & investments at 12/31/2025 pre‑financing and states the post‑financing cash position is sufficient to fund operations through 2028, enabling delivery of multiple near‑term data readouts.
Operational focus and clear near‑term milestones
Management prioritizing execution on two lead programs (EVO and ALX 2004). Key guided milestones: full biomarker analysis from the danitatumab combo at ESMO Breast (May 2026), ALX 2004 dose‑escalation safety data (2026), and top‑line ASPEN breast data from 80 patients (mid‑2027).
Reduced quarterly GAAP net loss year‑over‑year
GAAP net loss for the quarter was $22.8M ($0.42 per share) vs $29.2M ($0.55) year‑ago — a decrease of approximately 22% in dollars and ~24% on a per‑share basis, attributed to lower stock compensation, personnel costs, and reduced preclinical spending after pipeline prioritization.
Expansion and biomarker‑driven refinement of ASPEN‑9
Phase 2 ASPEN‑9 breast trial upsized from 80 to up to 120 patients and primary endpoint updated to response rate in CD47‑high patients to increase power for selecting a predictive CD47 cut point; top‑line readout for 80 patients still guided to mid‑2027.
Negative Updates
Early‑stage data in small cohorts
Key supportive datasets include small sample sizes (e.g., n=9 in the late‑line HER2 breast cohort), which increases uncertainty and requires larger, confirmatory data to validate signal sizes and biomarker cut points.
Biomarker prevalence and cutoff uncertainty
Management upsized the ASPEN trial to ensure adequate numbers of CD47‑high patients, reflecting uncertainty around the optimal IHC cutoff and prevalence in post‑in‑HER2 breast population; while literature suggests ~40–57% may be CD47‑high, the exact cut point must be defined prospectively and could influence regulatory discussions.
Timing and long readout intervals
Top‑line efficacy readout for 80 ASPEN patients is not expected until mid‑2027 (long lead time). Full ALX 2004 dose‑escalation safety data is expected in 2H 2026, meaning several important catalysts are spaced across 12–18 months.
Ongoing safety monitoring and ADC class risk
Although preclinical NHP tox did not show ILD or significant skin toxicity for ALX 2004, ADCs and topoisomerase I payloads have class risks (ILD, skin tox) that require careful clinical monitoring; clinical tolerability and the true therapeutic window remain to be confirmed in humans.
Reliance on financing to fund operations
Prior to the February financing, cash & investments were $48.3M at quarter end — a modest balance that made the subsequent $140.4M net raise necessary to secure runway through 2028. Dependence on capital markets remains a business risk until programs achieve de‑risking clinical milestones.
Continuing GAAP losses and no commercial revenue
Company reported continued quarterly GAAP net loss ($22.8M) and remains pre‑revenue, relying on R&D progress and financing to achieve value‑creating inflection points.
Regulatory and sequencing uncertainties in post–in‑HER2 setting
Evolving treatment landscape after approval of in‑HER2 creates uncertainty around optimal sequencing of therapies and potential impacts on enrollment, comparator performance benchmarks, and regulatory strategy; companion diagnostic development is underway but not yet finalized.
Company Guidance
Management gave specific financial and clinical guidance: as of 12/31/2025 cash, cash equivalents and investments totaled $48.3M pre‑financing and the company closed a $150.0M equity financing (net proceeds $140.4M), which management says provides runway through 2028; GAAP net loss for Q4 2025 was $22.8M ($0.42/share) versus $29.2M ($0.55/share) in Q4 2024. Key clinical milestones and timelines include the full biomarker analysis from the phase 1/2 danitatumab+EVO study at ESMO Breast in May 2026, ALX‑2004 dose‑escalation safety data (after clearing 1 mg/kg and 2 mg/kg and currently dosing 4 mg/kg) anticipated in 2026 with dose‑escalation readout in 2H‑2026, and top‑line data from 80 patients in the phase 2 ASPEN breast trial expected mid‑2027 (trial expanded from 80 to up to 120 patients and primary endpoint updated to response rate in CD47‑high patients); management noted >750 patients treated with EVO to date and reiterated the objective to have both programs ready for pivotal studies by the end of 2026 and to deliver meaningful readouts over the next 12–18 months.ALX Oncology Holdings Financial Statement Overview
Summary
Financial fundamentals remain weak for a development-stage biotech: no meaningful revenue (TTM revenue 0), large losses (TTM net income -$108.0M), and significant cash burn (TTM FCF -$97.4M). Offsetting positives include narrowing losses versus prior years and reduced debt (down to $4.3M TTM), but the shrinking equity/asset base signals limited balance-sheet cushion.Income Statement
Operating performance remains deeply negative with no meaningful revenue base in the most recent periods (including TTM (Trailing-Twelve-Months) revenue of 0). Losses are sizable, with TTM net income of -$108.0M and negative operating profit, reflecting continued R&D and operating spend without offsetting commercial income. A positive is that losses have narrowed versus 2023 (annual net loss improved from -$160.8M in 2023 to -$134.9M in 2024 and -$108.0M in TTM (Trailing-Twelve-Months)), but profitability is still far from breakeven.12
Very Negative
Balance Sheet
Leverage is modest and improving, with total debt down to $4.3M in TTM (Trailing-Twelve-Months) from $17.0M+ in 2023–2024, and a manageable debt-to-equity level (0.25 in TTM (Trailing-Twelve-Months)). However, the equity base has contracted sharply over time (from $429.8M in 2020 to $44.8M in TTM (Trailing-Twelve-Months)), alongside a smaller asset base ($82.7M TTM (Trailing-Twelve-Months) vs. $242.6M in 2023), indicating sustained burn and reduced balance-sheet cushion. Returns on equity are also strongly negative in recent periods due to ongoing losses.46
Neutral
Cash Flow
Cash generation remains a key weakness: TTM (Trailing-Twelve-Months) operating cash flow is -$97.2M and free cash flow is -$97.4M, meaning the business is still consuming significant cash to fund operations. Free cash flow improved versus 2024 (from -$122.4M to -$97.4M), but the reported free-cash-flow growth is negative in TTM (Trailing-Twelve-Months), highlighting continued volatility. Cash burn broadly tracks net losses (free cash flow to net income ~1x), which is typical for a pre-revenue biotech, but still implies ongoing financing needs if revenue does not ramp.18
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.18M |
| Gross Profit | 0.00 | -872.00K | -836.00K | 0.00 | -736.00K | 107.00K |
| EBITDA | -105.59M | -132.25M | -158.40M | -122.84M | -83.42M | -43.46M |
| Net Income | -108.01M | -134.85M | -160.81M | -123.48M | -83.46M | -45.74M |
Balance Sheet | ||||||
| Total Assets | 82.72M | 147.78M | 242.55M | 306.49M | 380.18M | 436.05M |
| Cash, Cash Equivalents and Short-Term Investments | 60.63M | 127.76M | 182.74M | 266.21M | 363.67M | 434.22M |
| Total Debt | 4.35M | 16.98M | 17.20M | 10.43M | 742.00K | 0.00 |
| Total Liabilities | 37.92M | 34.16M | 52.84M | 43.02M | 17.13M | 6.21M |
| Stockholders Equity | 44.80M | 113.62M | 189.71M | 263.46M | 363.05M | 429.85M |
Cash Flow | ||||||
| Free Cash Flow | -97.43M | -122.36M | -131.64M | -90.65M | -73.02M | -38.32M |
| Operating Cash Flow | -97.21M | -121.91M | -130.36M | -89.22M | -68.10M | -38.29M |
| Investing Cash Flow | 104.54M | 86.26M | 44.66M | -235.42M | -4.92M | 610.00K |
| Financing Cash Flow | 12.00K | 30.82M | 59.29M | 9.86M | 2.47M | 462.88M |
ALX Oncology Holdings Technical Analysis
Positive
2.13
Price Trends
1.76
Positive
1.62
Positive
1.23
Positive
Market Momentum
0.11
Positive
51.22
Neutral
18.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALXO, the sentiment is Positive. The current price of 2.13 is below the 20-day moving average (MA) of 2.30, above the 50-day MA of 1.76, and above the 200-day MA of 1.23, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 18.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALXO.
ALX Oncology Holdings Risk Analysis
ALX Oncology Holdings disclosed 84 risk factors in its most recent earnings report. ALX Oncology Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ALX Oncology Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $279.45M | -0.60 | -118.95% | ― | ― | 31.98% | |
57 Neutral | $262.77M | -2.38 | -33.68% | ― | ― | 69.30% | |
53 Neutral | $142.34M | -1.36 | -63.41% | ― | -87.59% | 11.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | $61.77M | -1.58 | ― | ― | ― | ― | |
40 Underperform | $6.09M | ― | -247.78% | ― | ― | 2.26% |
* Healthcare Sector Average
ALXO
ALX Oncology Holdings
2.13
0.82
62.60%
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0.92
-0.29
-23.97%
QNCX
Quince Therapeutics
0.11
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ADAG
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3.02
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CNTX
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ALX Oncology Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
ALX Oncology announces major underwritten public equity offering
Positive
Jan 30, 2026
On January 30, 2026, ALX Oncology priced an underwritten public offering of 76,979,112 shares of common stock at $1.57 per share and pre-funded warrants to purchase 18,574,120 shares at $1.569 per warrant, for expected gross proceeds of approximately $150 million before fees, with the deal scheduled to close on or about February 2, 2026, subject to customary conditions. Led by new investors RA Capital Management and TCGX and joined by a roster of prominent new and existing healthcare investors, the financing strengthens ALX Oncology’s balance sheet and is expected to fund continued clinical development of evorpacept and the ALX2004 program, as well as working capital and general corporate purposes, potentially reinforcing the company’s position in the competitive immuno-oncology and antibody-drug conjugate landscape.
The most recent analyst rating on (ALXO) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on ALX Oncology Holdings stock, see the ALXO Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
ALX Oncology Highlights Biomarker Data and Cash Position
Positive
Jan 30, 2026
On January 30, 2026, ALX Oncology reported new data from a Phase 1b/2 trial of its CD47 inhibitor evorpacept in combination with Jazz Pharmaceuticals’ Ziihera (zanidatamab-hrii) in heavily pretreated patients with metastatic HER2-positive breast cancer, showing that higher CD47 expression was associated with response, reinforcing CD47 as a predictive biomarker as previously observed in HER2-positive gastric cancer. The company also disclosed preliminary, unaudited figures indicating it held approximately $48.3 million in cash, cash equivalents, and investments as of December 31, 2025, while stressing that these estimates are subject to change pending completion of its year-end close and audit, signaling both scientific momentum for its biomarker-driven development strategy and a constrained but defined financial runway for ongoing clinical programs.
The most recent analyst rating on (ALXO) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on ALX Oncology Holdings stock, see the ALXO Stock Forecast page.
Business Operations and StrategyRegulatory Filings and Compliance
ALX Oncology Expands Inducement Equity Plan for Hiring
Positive
Jan 21, 2026
Effective January 21, 2026, ALX Oncology Holdings Inc.’s board amended its 2025 Inducement Equity Incentive Plan to increase the total number of shares of common stock reserved for issuance under the plan to 2,800,000, including an additional 1,300,000 shares. The expanded inducement plan, adopted without stockholder approval in line with Nasdaq listing rules, continues to mirror the company’s main equity incentive plan in structure and change‑of‑control treatment, and is designed to issue equity awards solely to new hires or rehires as a material inducement to employment, underscoring the company’s intention to use equity compensation more extensively in talent recruitment and retention.
The most recent analyst rating on (ALXO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ALX Oncology Holdings stock, see the ALXO Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.