Xoma (XOMA) AI Stock Analysis

• Market Cap: $392.73M
• Dividend Yield: N/A
• Average Volume (3M): 53.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 118.02%
• EPS Growth: N/A
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.70
• Shares Outstanding: 12,087,719
• 10 Day Avg. Volume: 49,949
• 30 Day Avg. Volume: 53,642
• PEG Ratio: 0.38
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 10.79
• P/FCF Ratio: -22.33
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 10.58
• Enterprise Value/Gross Profit: 11.28
• Enterprise Value/Ebitda: 47.81
• 1Y Price Target: $52.50
• Price Target Upside: 63.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $35.00 ▲(8.93% Upside)

Xoma's overall stock score is primarily influenced by its financial performance, which shows strong profitability but is offset by high leverage and cash flow concerns. Technical analysis indicates mixed signals, with bearish momentum prevailing. The valuation suggests the stock may be overvalued, further impacting the score.

Positive Factors

Strong Profitability Margins

Xoma's strong profitability margins indicate efficient cost management and effective use of resources, which can support sustainable growth and resilience in the competitive biotechnology sector.

Strategic Acquisitions

The acquisition of LAVA Therapeutics expands Xoma's portfolio and enhances its strategic positioning in the biotechnology market, potentially driving long-term growth through increased product offerings and market reach.

Revenue Growth

Consistent revenue growth, albeit modest, demonstrates Xoma's ability to maintain market presence and adapt to industry changes, supporting long-term business sustainability.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting Xoma's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Declining Cash Flow

A significant decline in cash flow growth suggests potential liquidity issues, which could hinder Xoma's operational flexibility and ability to fund future projects.

Operational Challenges

Fluctuating EBIT and EBITDA margins indicate operational challenges that could affect profitability and efficiency, requiring strategic adjustments to maintain competitive advantage.

Xoma Business Overview & Revenue Model

Company Description

XOMA Royalty Corp. operates as a biotechnology royalty aggregator in Europe, the United States, and the Asia Pacific. The company engages in helping biotech companies for enhancing human health. It acquires the potential future economics associated with pre-commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. The company focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners. It has a portfolio with approximately 70 assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.

How the Company Makes Money

Xoma generates revenue primarily through collaborations and licensing agreements with larger pharmaceutical companies, which pay for the rights to develop and commercialize Xoma's proprietary products. The company's revenue model includes upfront payments, milestone payments tied to the achievement of specific development or regulatory goals, and royalties on sales of partnered products. Additionally, Xoma may engage in research and development services for partners, further contributing to its income. Significant partnerships with established pharmaceutical firms enhance Xoma's revenue potential and enable it to access resources and expertise necessary for advancing its product pipeline.

Xoma Financial Statement Overview

Summary

Xoma's financial performance is mixed. While there is revenue growth, significant challenges exist with profitability and cash flow management. The company relies heavily on debt, which is risky without improved margins. Strategic cost management is crucial for stability.

Income Statement

Xoma's income statement reflects significant volatility and challenges in profitability. The TTM (Trailing-Twelve-Months) shows a negative EBIT and EBITDA margin, indicating operational inefficiencies. However, there is a marked revenue growth from the previous year, suggesting potential for recovery if costs are managed. The negative net profit margin underscores ongoing profitability issues.

Balance Sheet

Xoma's balance sheet shows moderate financial health. The debt-to-equity ratio is relatively high, suggesting a significant reliance on debt financing. However, the equity ratio remains solid, indicating that a substantial portion of assets is financed by equity. The return on equity is negative, reflecting the company's current unprofitability.

Cash Flow

Cash flow analysis indicates ongoing challenges with negative free cash flow. The operating cash flow to net income ratio suggests that cash outflows are greater than net losses. Nonetheless, there is a slight improvement in free cash flow growth rate, which could be a positive sign if sustained over time.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.11M	28.49M	4.76M	6.03M	38.16M	29.39M
Gross Profit	44.16M	28.28M	4.62M	5.75M	37.99M	29.21M
EBITDA	10.42M	-5.42M	-22.56M	-16.84M	16.52M	13.81M
Net Income	19.34M	-13.82M	-40.83M	-17.10M	15.80M	13.30M
Balance Sheet
Total Assets	263.15M	221.28M	234.30M	140.38M	166.56M	125.28M
Cash, Cash Equivalents and Short-Term Investments	92.00M	105.18M	153.45M	58.16M	94.10M	84.22M
Total Debt	131.91M	119.20M	124.45M	34.00K	229.00K	21.26M
Total Liabilities	155.19M	139.36M	145.58M	16.37M	24.69M	38.86M
Stockholders Equity	107.96M	81.92M	88.72M	124.01M	141.88M	86.42M
Cash Flow
Free Cash Flow	5.39M	-13.77M	-18.18M	-28.13M	-3.82M	8.88M
Operating Cash Flow	5.39M	-13.75M	-18.16M	-12.88M	22.68M	10.09M
Investing Cash Flow	-4.89M	-28.26M	-711.00K	-20.22M	-26.50M	-209.00K
Financing Cash Flow	-16.76M	-11.13M	120.59M	-4.45M	12.84M	19.79M

Xoma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XOMA, the sentiment is Negative. The current price of 32.13 is below the 20-day moving average (MA) of 32.76, below the 50-day MA of 34.93, and above the 200-day MA of 28.15, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 30.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XOMA.

Xoma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INBX	55 Neutral	$1.22B	―	-144.07%	―	―	―
GLUE	52 Neutral	$1.05B	52.95	9.28%	―	1112.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XOMA	51 Neutral	$392.73M	-21.06	16.22%	―	118.02%	―
OCGN	45 Neutral	$446.60M	―	-289.93%	―	14.26%	-23.34%
CRVS	41 Neutral	$684.83M	―	-35.82%	―	―	79.27%
RAPT	39 Underperform	$936.63M	―	-85.37%	―	―	50.23%

Xoma Corporate Events

Xoma Corp. Reports Strong Turnaround in Q3 Earnings

Xoma Corp., a biotech royalty aggregator, focuses on acquiring economic rights to future milestone and royalty payments from partnered therapeutic candidates in the biotech sector. In its latest earnings report, Xoma Corp. reported a significant turnaround with a net income of $14.1 million for the third quarter of 2025, compared to a net loss of $17.2 million in the same period last year. The company’s revenue more than doubled to $9.4 million, driven by increased income from purchased receivables and strategic acquisitions. Key financial highlights include a substantial gain from acquisitions and a reduction in operating expenses, contributing to the positive financial performance. Looking ahead, Xoma Corp. remains optimistic about its financial health, supported by a strong cash position and a strategic focus on expanding its portfolio of royalty rights, which is expected to drive future growth.

Xoma Announces $125 Million Sales Agreements

On October 3, 2025, XOMA Royalty Corporation entered into two ‘at the market’ sales agreements to offer and sell up to $75 million in common stock through Leerink Partners LLC and up to $50 million in depositary shares through H.C. Wainwright & Co., LLC. These agreements allow XOMA to sell shares directly on Nasdaq or other trading markets, with the intention of using proceeds for acquiring additional royalty and milestone revenue streams, working capital, and general corporate purposes. Both agreements allow for termination by either party and include customary representations, warranties, and indemnification rights.

The most recent analyst rating on (XOMA) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.

Xoma Completes Acquisition of HilleVax

XOMA Royalty Corporation, a company involved in royalty management, completed its acquisition of HilleVax, Inc. on September 17, 2025. The acquisition was executed through a merger agreement, where XOMA’s subsidiary merged with HilleVax, making it a wholly owned subsidiary of XOMA. The transaction involved a tender offer for HilleVax’s shares, which included a cash payment and a contingent value right. This strategic move positions XOMA to potentially enhance its market presence and operational capabilities.

The most recent analyst rating on (XOMA) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.