Xencor (XNCR) AI Stock Analysis

• Market Cap: $870.53M
• Dividend Yield: N/A
• Average Volume (3M): 623.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: 38.16%
• EPS Growth: 48.43%
• Country: US
• Employees: 250
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.09
• Shares Outstanding: 73,338,640
• 10 Day Avg. Volume: 900,057
• 30 Day Avg. Volume: 623,592
• PEG Ratio: 0.19
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 9.05
• P/FCF Ratio: -8.22
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 8.51
• Enterprise Value/Gross Profit: 9.09
• Enterprise Value/Ebitda: -22.65
• 1Y Price Target: $26.39
• Price Target Upside: 122.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -2.84
• Revenue Forecast (FY): $124.45M

• Rating: 43 Neutral
• Price Target: $11.50 ▼(-3.12% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by weak financial performance (sharp revenue decline to $0 in 2025, heavy losses, and ongoing cash burn). Technicals also remain bearish with negative momentum and price below key moving averages. Valuation is constrained by losses (negative P/E), and recent corporate events add uncertainty via collaboration and royalty headwinds, partially offset by stated liquidity runway.

Positive Factors

Balance-sheet strength

Low leverage and a sizable equity/cash asset base provide durable financial flexibility across the next 2–6 months. This supports continued R&D spend, funds operations without immediate dilution, and reduces near-term refinancing pressure versus peers with weaker balance sheets.

Partnering-driven business model

A partnership-and-licensing model supplies milestone, upfront and royalty streams that can fund development without relying on product sales. Structurally this provides multiple non-dilutive funding levers and strategic tie-ins to large pharma, sustaining operations over the medium term.

Engineered-antibody platform

Proprietary Fc-engineering and bispecific antibody capabilities create a durable competitive advantage: they enable multiple programs, licensing opportunities, and technical differentiation that can drive partnership interest and recurring royalties if candidates progress.

Negative Factors

Revenue and profitability deterioration

A collapse to reported $0 revenue and sustained large losses materially weaken the company's ability to self-fund development. Over the next several months this undermines margin recovery prospects and elevates execution risk absent material new contract or milestone receipts.

Persistent cash burn

Large, sustained negative operating and free-cash-flow increases dependence on external financing or milestone receipts. Even with near-term runway, continued cash burn raises the probability of future dilution or constrained program funding within a 2–6 month horizon if expected inflows don't materialize.

Partnership and royalty uncertainty

A formalized Genentech wind-down and a U.S. royalty dispute with Alexion reduce expected future cash inflows and raise legal/contract risk. This structurally increases revenue volatility and weakens the reliability of partnership-derived funding over the medium term.

Xencor Business Overview & Revenue Model

Company Description

Xencor, Inc., a clinical stage biopharmaceutical company, focuses on the discovery and development of engineered monoclonal antibody and cytokine therapeutics to treat patients with cancer and autoimmune diseases. The company provides Sotrovimab that targets the SARS-CoV-2 virus; Ultomiris for the treatment of patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome; and Monjuvi for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. It develops Plamotamab, a tumor-targeted antibody, which is in Phase I clinical trial to treat non-Hodgkin lymphoma; Vudalimab, a bispecific antibody, which is in Phase II clinical trial to treat metastatic castration-resistant prostate cancer and other solid tumor types; and Tidutamab that is in Phase II clinical trial to treat neuroendocrine tumors. The company is also developing XmAb306, which is in Phase I clinical trial to treat solid tumors; XmAb104 and XmAb841, which are in Phase I clinical trial to treat patients with selected solid tumors; XmAb564 that is in Phase I clinical trial to treat autoimmune diseases; AMG 509, which is in Phase I clinical trial to treat prostate cancer; XmAb819 for patients with renal cell carcinoma; and Novartis XmAb. It develops VIR-3434, which is in Phase II clinical trial for patients with hepatitis B virus infection; VIR-2482 that is in Phase 1/2 clinical trial to trat influenza A; VIR-7832, which is in Phase 1b/2a trial to treat mild-to-moderate COVID-19; and BMS-986414 + BMS-986413 is in Phase 2/3 NIH ACTIV-2 trial in treating COVID-19. The company develops AIMab7195 to reduce blood serum levels of IgE that mediates allergic responses and allergic disease; Obexelimab to treat autoimmune disease; and Xpro1595 to treat patients with Alzheimer's disease, mild cognitive impairment, and depression. It has a license agreement with Caris Life Sciences. Xencor, Inc. was incorporated in 1997 and is headquartered in Monrovia, California.

How the Company Makes Money

Xencor generates revenue primarily through partnerships and collaborations with other pharmaceutical companies, whereby it licenses its proprietary XmAb technology for the development of new therapeutics. These partnerships often involve upfront payments, milestone payments as the partnered products progress through clinical development, and royalties on future sales. In addition, Xencor may also receive research funding from partners to support the development of collaborative projects. The company's revenue model is heavily reliant on the success of its clinical trials and the commercialization of its partnered products.

Xencor Financial Statement Overview

Summary

Operating results are very weak: revenue deteriorated sharply (including $0 reported revenue in 2025) with sustained, large net losses and deeply negative margins since 2022. Cash flow reinforces the risk, with significant operating and free-cash-flow burn from 2023–2025, despite a relatively strong, low-leverage balance sheet that provides some near-term flexibility.

Income Statement

Profitability and growth have deteriorated meaningfully. Revenue fell from $275.1M (2021) to $164.6M (2022), recovered modestly in 2023, then declined again in 2024 and dropped to $0 in 2025 (annual report), driving large losses (net income: -$55.2M in 2022 to -$133.1M in 2023, -$232.6M in 2024, and -$91.9M in 2025). Margins were solid in 2021 but have been deeply negative since 2022, indicating the cost structure is not supported by the current revenue base.

Balance Sheet

The balance sheet remains a relative strength. Leverage is low-to-moderate with debt-to-equity improving to ~0.11 in 2025 from ~0.34 in 2024, supported by a sizable equity base ($635.6M in 2025) and substantial assets ($875.5M). The key weakness is persistent value erosion from losses, reflected in negative returns on equity across 2022–2025, which could pressure equity over time if profitability does not improve.

Cash Flow

Cash generation is weak and volatile. Operating cash flow was positive in 2022 (+$24.5M) but turned meaningfully negative in 2023–2025 (-$77.9M, -$202.2M, and -$135.1M), with free cash flow also consistently negative and worsening in 2023–2025. While free cash flow has generally moved in line with reported losses (free cash flow roughly matching net loss in recent years), the ongoing cash burn increases dependence on financing and raises execution risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	125.58M	110.49M	174.62M	164.58M	275.11M
Gross Profit	115.06M	110.49M	174.62M	164.58M	275.11M
EBITDA	-46.98M	-186.17M	-101.96M	-45.70M	90.14M
Net Income	-91.92M	-232.62M	-133.13M	-55.18M	82.63M
Balance Sheet
Total Assets	875.50M	951.95M	952.69M	846.27M	838.21M
Cash, Cash Equivalents and Short-Term Investments	547.73M	497.77M	593.73M	623.06M	334.11M
Total Debt	187.75M	231.95M	83.43M	59.63M	33.97M
Total Liabilities	239.91M	277.92M	283.56M	118.77M	104.71M
Stockholders Equity	635.59M	677.61M	668.80M	727.50M	733.50M
Cash Flow
Free Cash Flow	-138.27M	-208.28M	-96.37M	-18.92M	-32.83M
Operating Cash Flow	-135.12M	-202.19M	-77.93M	24.48M	-16.85M
Investing Cash Flow	139.99M	-7.87M	-110.56M	-119.72M	-46.25M
Financing Cash Flow	8.23M	197.15M	188.72M	5.70M	43.04M

Xencor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XNCR, the sentiment is Neutral. The current price of 11.87 is below the 20-day moving average (MA) of 11.94, below the 50-day MA of 12.85, and above the 200-day MA of 11.54, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XNCR.

Xencor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	61 Neutral	$2.19B	-8.98	13.28%	―	1128.17%	―
RLAY	60 Neutral	$1.81B	-6.61	-43.17%	―	-16.50%	33.02%
DNTH	54 Neutral	$3.42B	―	-28.57%	―	-42.64%	-39.78%
MRVI	53 Neutral	$933.15M	-3.61	-51.07%	―	-30.56%	48.79%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AUTL	51 Neutral	$431.15M	-1.37	-63.76%	―	407.86%	30.35%
XNCR	43 Neutral	$870.53M	-42.71	-14.58%	―	38.16%	48.43%

Xencor Corporate Events

Xencor, Genentech to End Protein Therapeutics Collaboration

Xencor, Inc., a biopharmaceutical developer of engineered protein therapeutics, has relied on collaborations with major pharma companies to advance candidates such as cytokine-Fc fusion proteins. Its business model emphasizes partnering for late-stage development and commercialization in key therapeutic areas.

On March 4, 2026, Xencor disclosed that Genentech, a unit of Roche, will terminate their collaboration and license agreement, effective September 4, 2026, after Roche had already removed the joint drug efbalropendekin alfa from its development pipeline in January 2025. Xencor had stopped cost-sharing in the first half of 2024 by opting out of co-development, leaving Genentech solely responsible for development activities, so the administrative termination largely formalizes a wind-down that was already reflected in operations and pipeline expectations.

The most recent analyst rating on (XNCR) stock is a Sell with a $10.50 price target. To see the full list of analyst forecasts on Xencor stock, see the XNCR Stock Forecast page.

Xencor Updates Outlook Amid Ultomiris Royalty Dispute

On March 2, 2026, Alexion Pharmaceuticals, Inc., licensee of Xencor’s XmAb Fc technology for Ultomiris, told Xencor it would no longer pay royalties on U.S. sales of the drug, while continuing to pay royalties on sales outside the United States. Xencor disputes Alexion’s position, is evaluating its options, and had previously forecast an additional $100 million to $120 million in U.S. Ultomiris royalties through 2028 tied to a recently issued U.S. patent.

Following the change in royalty expectations, Xencor updated its financial guidance but maintained that, based on current plans, it expects to end 2026 with $380 million to $400 million in cash, cash equivalents and marketable debt securities. The company said this liquidity should be sufficient to fund its research and development programs and operations into mid-2028, suggesting a solid near- to medium-term operating runway despite the U.S. Ultomiris royalty dispute.

The most recent analyst rating on (XNCR) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Xencor stock, see the XNCR Stock Forecast page.