Wed, May 14, 7:55 PM (38 days ago)
**XBiotech Inc. (XBIT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** XBiotech reported no revenue for Q1 2025, consistent with previous quarters. - **Net Loss:** The company incurred a net loss of $10.9 million, slightly higher than the $10.0 million loss in Q1 2024. - **Profit Margins:** Not applicable due to lack of revenue. - **Cash Flow:** Operating activities used $6.7 million in cash, while investing and financing activities used $10.3 million and provided $10.0 million, respectively. The net change in cash and cash equivalents was a decrease of $16.8 million. - **Earnings Changes:** The net loss per share was $0.36, compared to $0.33 in Q1 2024. **Quarterly Performance Discussion:** - **Operating Expenses:** Research and development (R&D) expenses increased by 18% to $11.6 million, primarily due to a $4.0 million bonus to the CEO and stock-based compensation. General and administrative expenses rose by 88% to $1.9 million, also driven by the CEO's bonus and stock-based compensation. - **Other Income:** Interest income decreased to $1.5 million, while other income included a $995,000 cancellation of a penalty by the Canada Revenue Agency. - **Liquidity:** As of March 31, 2025, XBiotech had $155.9 million in cash and cash equivalents, down from $201.0 million in Q1 2024. **Trends & Uncertainties:** - XBiotech expects to continue incurring significant operating losses as it advances its drug candidates through clinical trials. - The company's liquidity depends on future collaboration or product sales and financing transactions. - XBiotech believes its current cash position will enable it to achieve several major inflection points, including completion of clinical studies with lead product candidates. **Future Operations Impact:** - XBiotech plans to continue investing in R&D and general and administrative expenses to support its drug development pipeline. - The company expects to incur increasing operating losses as it advances its drug candidates through clinical trials. - XBiotech's ability to generate revenue and achieve profitability depends on the successful development and commercialization of its product candidates.