CytomX (CTMX) Q2 Revenue Drops 26%

Key Points

• GAAP revenue for Q2 2025 fell short of analyst estimates and Revenue dropped approximately 25.7% year-over-year and missed analyst estimates in Q2 2025.

• Operating losses narrowed sharply compared to Q2 2024, driven by significant cost reductions.

• Pipeline highlights included positive Phase 1 data for lead candidate CX-2051 in advanced colorectal cancer.

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CytomX Therapeutics (NASDAQ:CTMX), a biotechnology company focused on developing targeted oncology therapies, reported its second quarter 2025 results on August 7, 2025. In the period, the most significant developments included a year-over-year decline in GAAP revenue, improvements in cost discipline, and notable progress in the clinical pipeline, especially for its lead candidate, CX-2051. Reported GAAP revenue of $18.658 million narrowly missed analyst expectations of $18.767 million, while Diluted earnings per share (GAAP) were $(0.00), better than the estimated $(0.06) and last year's $(0.08). While the top-line GAAP revenue was weaker than expected, cost controls, reduced operating expenses, and a successful $100 million equity raise significantly improved the company’s financial position.

Source: Analyst estimates for the quarter provided by FactSet.

Company Overview and Strategic Focus

CytomX Therapeutics is a clinical-stage biotechnology firm aiming to develop oncology therapies that are selectively activated in tumors to minimize side effects. The company’s core technology, called the PROBODY platform, uses conditionally activated biologics to direct antibody-based therapies to cancer cells while reducing their action in normal tissues.

Recently, CytomX has concentrated on clinical advancement for its most promising drug candidates, with a primary focus on CX-2051 for colorectal cancer and CX-801 for melanoma. Collaboration with major pharmaceutical partners and careful management of its intellectual property portfolio remain important to its continued progress. The success of ongoing clinical trials and revenue from partnerships are considered critical measures of success for the business.

Quarter in Review: Financial and Pipeline Developments

GAAP revenue was $18.7 million, a decline from $25.1 million in Q2 2024 and just short of analyst consensus. This decrease followed the completion of certain partnership performance obligations, including the end of some collaboration activities with Bristol Myers Squibb and lower revenue from Amgen and Moderna-linked projects. These drops reflect a reliance on milestone payments and program-based collaboration revenue, which can fluctuate sharply quarter to quarter.

The company’s cost-saving measures led to a sharp drop in operating expenses, which fell to $19.9 million from $33.6 million a year ago, based on GAAP results. This drop was driven by restructuring steps taken earlier in 2025, due to a one-time milestone payment of $5 million to Immunogen for the first patient dosed in Phase 1 with CX-2051, and the halting of further investment in the CX-904 program. The slimmer expense structure meant that operating losses narrowed significantly.

Pipeline progress was a standout feature in the quarter. CX-2051, an antibody drug conjugate that targets EpCAM and delivers a chemotherapy agent to tumor cells, produced positive interim data in its Phase 1 study in advanced colorectal cancer. Dose expansion cohorts at multiple levels began, with more data covering approximately 70 patients expected in the first quarter of 2026. Preparations for a Phase 2 study are planned for the first half of next year, and management signaled the potential for new combination studies in 2026. The CX-801 program, a PROBODY interferon alpha-2b therapy for cancer, continues dose escalation work and expects its first biomarker and translational research data in late 2025, with combination trials using KEYTRUDA, a leading immuno-oncology therapy, also underway.

Several partnership and collaboration efforts remain core to CytomX’s strategy. Research continued in partnership with Astellas, Amgen, Regeneron, Moderna, and Bristol Myers Squibb, among others. The report highlighted a milestone achieved in the Astellas collaboration and encouraging preclinical data for a collaborative project with Moderna on a masked IL-12 molecule. The reliance on these partnerships both diversifies risk and brings external expertise, though declining collaboration revenue showed the risk if major programs are paused, completed, or experience budget constraints.

The financial position was boosted by a $100 million capital raise, increasing the company’s cash, cash equivalents, and investments to $158.1 million as of June 30, 2025. Management expects this cash level to support operations into the second quarter of 2027. No material one-time expenses beyond what has been noted for restructuring and cost reduction were disclosed.

CTMX does not currently pay a dividend.

Looking Ahead: Management Outlook and Key Watch Items

Management did not offer explicit revenue or earnings guidance for the upcoming quarters. The most concrete projection shared was an expected cash runway through the second quarter of 2027, which is lengthy for a company at this stage.

Investors and observers will be watching closely for more clinical updates, particularly the next significant update from the CX-2051 colorectal cancer program in the first quarter of 2026. Other planned milestones include the start of Phase 2 studies for CX-2051 and anticipated data from initial combination studies using CX-801 and KEYTRUDA in 2026. Key risks to monitor include the outcome of these pipeline trials, renewal or expansion of collaboration partnerships, and the company’s ability to maintain cost controls and manage its reliance on partnership-driven revenue streams.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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