ADC Therapeutics Q1 2026 Earnings Report

ADC Therapeutics EPS Results

• Actual EPS: -$0.21
• Consensus EPS: -$0.19
• Beat/Miss: Missed by -$0.02
• One Year Ago EPS: -$0.36

ADC Therapeutics Revenue Results

• Actual Revenue: $20.85 million
• Expected Revenue: $19.99 million
• Beat/Miss: Beat by +$864.00 thousand
• YoY Revenue Growth: N/A

ADC Therapeutics Announcement Details

• Quarter: Q1 2026
• Date: 5/4/2026
• Time: Before Market Opens
• Conference Call Date: Monday, May 4, 2026
• Conference Call Time: 8:30AM ET

ADC Therapeutics (NYSE:ADCT) is a clinical-stage biopharmaceutical company focused on the discovery and development of highly targeted antibody-drug conjugates (ADCs) designed to treat hematological malignancies such as non-Hodgkin lymphoma and acute myeloid leukemia. By marrying the specificity of monoclonal antibodies with potent cytotoxic payloads, the company aims to maximize tumor cell eradication while limiting off-target toxicity.

At the core of ADC Therapeutics’ portfolio is loncastuximab tesirine-lpyl, a CD19-directed ADC that received accelerated approval from the U.S. Food and Drug Administration for the treatment of adults with relapsed or refractory large B-cell lymphoma. In addition to this approved asset, the company’s pipeline features multiple next-generation ADC candidates targeting novel antigens, several of which are advancing through late-stage clinical trials.

Founded in 2012 as a spin-out from Heidelberg University, ADC Therapeutics is headquartered in Lausanne, Switzerland, with additional offices in London and New York. Its global footprint spans Europe and North America, encompassing clinical research sites and manufacturing partnerships that support multi-regional trials and scaled production of its specialized conjugates.

The company is led by a management team with deep expertise in antibody engineering, oncology drug development and regulatory affairs. Through collaborations with academic institutions and industry partners, ADC Therapeutics seeks to accelerate its translational research efforts and bring innovative ADC therapies to patients battling blood cancers.

ADC Therapeutics Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: We expect the LOTIS‑5 top‑line readout before the end of June; the company is currently blinded and, if positive, plans an sBLA by year‑end with potential Compendia inclusion and a regulatory approval pathway into 2027.
• Neutral Sentiment: Q1 net product revenues were $20.0 million versus $17.4 million a year ago, driven mainly by quarter‑to‑quarter ordering variability with management saying underlying demand remains broadly stable.
• Positive Sentiment: On a non‑GAAP basis ADC reduced total operating expenses by 13% year‑over‑year and ended Q1 with $231 million in cash, which management says provides runway at least into 2028.
• Positive Sentiment: Management reiterated plans to expand ZYNLONTA into earlier DLBCL lines and indolent lymphomas—LOTIS‑7 enrollment is expected to complete in Q2 with full data by year‑end and IIT data due end‑2026 to mid‑2027—and projects potential peak U.S. revenues of $600M–$1B assuming approvals and Compendia listings.

Presentation

[Operator]

Good morning, ladies and gentlemen, and welcome to the ADC Therapeutics Q1 2026 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, May 4, 2026. I would now like to turn the conference over to Nicole Riley, Head of Investor Relations and Corporate Communications. Please go ahead.

[Nicole Riley, Head of Investor Relations and Corporate Communications at ADC Therapeutics]

Thank you, operator. Today, we issued a press release announcing our first quarter 2026 financial results and business updates. This release and the slides we will use in today's presentation are available on the Investors section of the ADC Therapeutics website. I'm joined on today's call by our Chief Executive Officer, Ameet Mallik, who will discuss our operational performance and recent business highlights, followed by our Chief Financial Officer, Pepe Carmona, who will review our first quarter 2026 financial results. We will then open the call to questions. Before we begin, I would like to remind listeners that some of the statements made during this conference call will contain forward-looking statements within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

[Nicole Riley, Head of Investor Relations and Corporate Communications at ADC Therapeutics]

These forward-looking statements are subject to certain known and unknown risks and uncertainties, and actual results, performance, and achievements could differ materially. They are identified and described in the accompanying slide presentation and in the company's filings with the SEC, including Form 10-K, 10-Q and 8-K. ADC Therapeutics is providing this information as of today's date and does not undertake any obligation to update any forward-looking statements contained in this conference call as a result of new information, future events or circumstances, except as required by law. The company cautions investors not to place undue reliance on these forward-looking statements. Today's presentation also includes non-GAAP financial reporting. These non-GAAP measures should be considered in addition to, and not in isolation or as a substitute for the information prepared in accordance with GAAP.

[Nicole Riley, Head of Investor Relations and Corporate Communications at ADC Therapeutics]

You should refer to the company's first quarter 2026 earnings release for information and reconciliation of historical non-GAAP measures to the comparable GAAP financial measures. I will now turn the call over to our CEO, Ameet Mallik. Ameet.

[Ameet Mallik, CEO at ADC Therapeutics]

Thank you, Nicole. We continue to make good progress in the first quarter of 2026 as we advance towards multiple important milestones for ZYNLONTA over the remainder of the year, beginning with the expected LOTIS-5 top-line readout in the second quarter. From a commercial perspective, we continue to focus on execution and delivering on our commercial strategy, maintaining ZYNLONTA as a differentiated treatment option for third-line plus DLBCL patients. First quarter net product revenues were $20.0 million as compared to the prior year's first quarter net product revenues of $17.4 million. The increase was driven primarily by normal quarter-to-quarter variability in customer ordering with underlying demand broadly stable.

[Ameet Mallik, CEO at ADC Therapeutics]

Looking toward the second-line plus setting where we believe the largest growth opportunity lies, for LOTIS-5, our phase III confirmatory trial of ZYNLONTA plus rituximab, we expect to share top-line data before the end of June, potentially bringing us another step closer to providing this combination to significantly more patients. While this timeline is rapidly approaching, I do wanna highlight that we are currently still blinded to the data. Turning to LOTIS-7, we expect to complete enrollment of approximately 100 patients at the selected dose level of ZYNLONTA plus ofatumumab in the second quarter, with full data anticipated by year-end.

[Ameet Mallik, CEO at ADC Therapeutics]

In indolent lymphomas, we continue to anticipate data publication between the end of 2026 and mid-2027 from the multicenter investigator-initiated trials of ZYNLONTA in combination with rituximab to treat relapsed or refractory follicular lymphoma and of ZYNLONTA as a monotherapy to treat relapsed or refractory marginal zone lymphoma. We continue to pay close attention in the quarter to managing our cost base and optimizing our balance sheet. On a non-GAAP basis, we reduced our total operating expenses by 13% versus Q1 2025, and we ended the first quarter of 2026 with a healthy cash balance of $231 million. This maintains our expected cash runway at least into 2028, enabling us to deliver against our strategy.

[Ameet Mallik, CEO at ADC Therapeutics]

We are building off the well-established role of ZYNLONTA as a single-agent therapy in third-line plus DLBCL, where ZYNLONTA has a profile of rapid, deep, and durable efficacy, as well as manageable safety with simple and convenient administration. We believe the relative stability we've seen in net product revenues over multiple quarters demonstrates that ZYNLONTA has a clear place in this market. This is just a starting point as we believe in the potential for ZYNLONTA to reach significantly more patients by expanding use into earlier lines of therapy in DLBCL and into indolent lymphomas. The data we've seen across these settings so far have been consistently encouraging, with the potential to be highly differentiating.

[Ameet Mallik, CEO at ADC Therapeutics]

Through expansion into these settings in DLBCL and into indolent lymphomas, we are confident that ZYNLONTA has the potential to reach peak annual revenues of $600 million-$1 billion in the U.S., assuming both compendia listing and regulatory approval. The upcoming LOTIS-5 trial readout, if positive, will begin to unlock the value of our lifecycle management efforts with ZYNLONTA. Taken together with the upcoming data expected from LOTIS-7 and the indolent lymphoma studies, we expect to accelerate our revenue growth trajectory starting in 2027. I would like to turn the call over to Pepe Carmona, our CFO, who will discuss financial results for the first quarter. Pepe.

[Pepe Carmona, CFO at ADC Therapeutics]

Thank you, Ameet. On the financial front, ZYNLONTA net product revenues in the first quarter of 2026 were $20 million as compared to $17.4 million in the same quarter in 2025. Licensing revenues and royalties were lower this year due to a $5 million milestone we received from our partner in the prior year period. Cost product sales increased by $1.6 million to $3.6 million for the three months ended March 31st, 2026. This increase reflects a shift in the allocation of certain personnel costs due to a change in focus from research and development activities to commercial manufacturing activities. Total operating expenses were $46.1 million for the first quarter. On a non-GAAP basis, total adjusted operating expenses were $42.9 million for the quarter.

[Pepe Carmona, CFO at ADC Therapeutics]

Total adjusted operating expenses were down by 13% over the prior year period, primarily driven by lower R&D expenses. As Ameet noted, we're managing our costs carefully, and we remain disciplined in our capital allocation towards potential value creation while driving efficiencies. On a GAAP basis, we reported a net loss of $33 million for the first quarter of 2026, or $0.21 per basic and diluted share, as compared to a net loss of $38.6 million or $0.36 per basic and diluted share for the same period in 2025. On a non-GAAP basis, the adjusted net loss was $19.7 million for the first quarter of 2026, as compared to a net loss of $24 million for the same period in 2025.

[Pepe Carmona, CFO at ADC Therapeutics]

The lower net loss on both GAAP and non-GAAP basis was primarily due to reduced R&D expenses. The year-over-year reductions on a per-share basis were additionally impacted by the higher number of weighted average shares outstanding. You can find the reconciliation of GAAP to non-GAAP measures for the first quarter in the accompanying financial tables of the press release issued earlier today and in the appendix of this presentation. At the end of the first quarter, we had cash and cash equivalents of $231 million, as compared to $261.3 million as of December 31st, 2025. This provide us with an expected cash runway at least into 2028. Turning to upcoming milestones, we expect to have multiple data catalysts during the remainder of 2026 across the ZYNLONTA program.

[Pepe Carmona, CFO at ADC Therapeutics]

First, we expect to share the top-line data for LOTIS-5 before the end of June, with publication of full results anticipated by the year-end. As Ameet noted, we're currently blinded to the data. Until the top-line data has been presented, we will remain in a blackout period, which means we may need to cancel our participation in any conferences as well as meetings with investors and analysts. Assuming the results are positive, we plan to submit a supplemental Biologics License Application to the FDA by year-end, with potential publication and Compendia inclusion in the first half of 2027 and confirmatory approval to follow thereafter. With LOTIS-7, we're on track to complete enrollment in the second quarter. We plan to share the next update with full data at a medical meeting by the end of 2026.

[Pepe Carmona, CFO at ADC Therapeutics]

In addition, assuming positive results, we plan to pursue compendia inclusion as well as assess a regulatory strategy. With indolent lymphomas, we expect the lead investigator to share additional data at medical conferences between the end of 2026 and mid-2027, and we plan to assess regulatory and compendia strategies once sufficient data are available. I will now turn the call back over to Ameet.

[Ameet Mallik, CEO at ADC Therapeutics]

Thank you, Pepe. To close, I am pleased with our start to 2026. We have achieved solid commercial performance while maintaining our strict capital discipline as we look forward to multiple anticipated value-creating catalysts, beginning with the expected LOTIS-5 readout. We are excited about delivering on our strategy and confident we can drive significant potential long-term growth starting in 2027. We can now open the line for questions. Operator?

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your touch tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Your first question comes from Maury Raycroft with Jefferies. Your line is now open.

[Maury Raycroft, Analyst at Jefferies]

Hi. Good morning. Congrats on the progress and thanks for taking my question. You mentioned on the call that you remain blinded to the data. Can you clarify if the database is locked at this point and when you reach the 262 events? From a process standpoint, can you say what's happening currently and what are the drivers that will allow you to unblind the data?

[Ameet Mallik, CEO at ADC Therapeutics]

Yeah, thanks for the question. What I can tell you is we're on track to be able to read the data. We're completely blinded to the data, so I don't know any information yet. As soon as the database gets locked and we do the statistical analysis, we'll then be able to disclose top-line data. We're not at that point yet.

[Maury Raycroft, Analyst at Jefferies]

Got it. Understood.

[Ameet Mallik, CEO at ADC Therapeutics]

We are on track to basically share the data this quarter.

[Maury Raycroft, Analyst at Jefferies]

Got it. Okay. For when you reach the 262 events, is there anything more on that you're saying from a timing perspective?

[Ameet Mallik, CEO at ADC Therapeutics]

Yeah. We're not commenting on exactly, you know, when we're hitting the events. What I can tell you is, we're on track to, you know, to basically to get to the top-line results this quarter, in the second quarter.

[Maury Raycroft, Analyst at Jefferies]

Okay. Okay, understood. Maybe one other quick question. Following the site-level interventions you implemented to address the early dropout and censoring, do you have any perspective potentially from the IDMC to provide any indication that censoring rates improved after those changes? I guess any more color on that could be helpful.

[Ameet Mallik, CEO at ADC Therapeutics]

I can't comment further. What I can tell you is the last IDMC look, which was from a safety standpoint, was last fall. Again, that the recommendation was to proceed as is. There's been any other looks from the IDMC at the data.

[Maury Raycroft, Analyst at Jefferies]

Understood. Okay. Thanks for taking my questions.

[Ameet Mallik, CEO at ADC Therapeutics]

Yeah. Thank you so much. Appreciate it.

[Operator]

Your next question comes from Michael Schmidt with Guggenheim. Your line is now open.

[Michael Schmidt, Senior Analyst and Senior Managing Director at Guggenheim]

Oh, hey, guys. Good morning. Thanks for taking my questions. I had a couple. Maybe first, commercially, the $20 million in 1Q, it's about 15% growth annually. I know you mentioned ordering pattern, but it just seems a more growth than we've seen in recent quarters. Just curious if there's anything else going on in terms of driving more volume, perhaps in the approved indication in the market. Then the other question I just had on LOTIS-5. You know, great to hear that the data is still on track for this quarter. Could you just comment on how much of the result you'll be able to disclose in a top-line announcement?

[Michael Schmidt, Senior Analyst and Senior Managing Director at Guggenheim]

Will you be able to share things like median PFS or perhaps, hazard ratios, et cetera, in the, in the top-line release? Thanks so much.

[Ameet Mallik, CEO at ADC Therapeutics]

Yeah. Thanks, Michael. First in sales, as you recall, Q3 was quite low, and Q4 was quite strong. We have $16.8 million, then $22.3 million. Now we're at $20 million. I think it's too soon to call a change in trend, to be honest right now. I think what we're seeing is, you know, definitely very good execution. We're happy that we've been able to maintain, you know, our share despite, you know, a very competitive environment. There is quarter-to-quarter variability. As we saw, like Q3 was one of the lowest quarters, and then Q4 was one of the higher quarters in the last couple years. I think after two quarters in that $20 million+ range, it's encouraging, but too soon to call a trend.

[Ameet Mallik, CEO at ADC Therapeutics]

I think if this continues, that may cause us to sort of change where we think the range is going to be. I think at this point, just given the variability we've seen in the last couple of years, I think we're still in the range of normal demand within the, you know, patterns of customer ordering, variability. With regards to LOTIS-5, yeah, we plan to share all the relevant information on the primary endpoints, of course, like median PFS, hazard ratio, any information that we have on key secondary endpoints, as well as top-line safety data. We do want to make sure that the disclosure is clear with the information that we have and well understood what the result is.

[Ameet Mallik, CEO at ADC Therapeutics]

At the same time, you know, a lot of sub-analyses and other things that are typically less relevant for a top-line result, but critical for, let's say, a medical conference or publication, those would be details that would come later in the year.

[Michael Schmidt, Senior Analyst and Senior Managing Director at Guggenheim]

Thank you.

[Ameet Mallik, CEO at ADC Therapeutics]

Yeah. Thanks, Michael.

[Operator]

Your next question comes from Eric Schmidt with Cantor. Your line is now open.

[Eric Schmidt, Analyst at Cantor]

Thanks for a very efficient call. A couple of questions for me also on LOTIS-5. First, with regard to, procedures, do I take Pepe's comments to mean that you're now entering the quiet period? Is that starting after today?

[Ameet Mallik, CEO at ADC Therapeutics]

We started actually a quiet period. We have to do earnings, of course, but we haven't been engaging with analysts or investors since April 1. For the whole quarter until we disclose the data. Yeah.

[Eric Schmidt, Analyst at Cantor]

Thank you. Ameet, on the information that you'll be able to disclose with regard to the top-line data for LOTIS-5 this quarter, will we get some thoughts on how survival is trending? I know the trial's primary endpoint is PFS and you're well-powered there. Wondering if you'll be able to provide color on OS trends, and then if you know at this point how many OS events or how mature the OS data might be at the time of the PFS top-line look. Thanks.

[Ameet Mallik, CEO at ADC Therapeutics]

In addition to PFS, which obviously will be mature, we will give the information that we have on overall survival. Whether it's mature or it's a trend, we will provide the information that we have on overall survival as well as the other key secondary endpoints as well, like response rate, duration of response. We plan to share all the information we have. I can't comment right now on how many events we have with regards to overall survival, what I can tell you is, You know, with whatever information we have, we will make it part of the disclosure.

[Eric Schmidt, Analyst at Cantor]

Maybe just one modeling note for Pepe. The change that we saw, from personnel from R&D into cost of goods. Is that an ongoing transition? Are we expecting costs to be inflated in subsequent quarters as well?

[Pepe Carmona, CFO at ADC Therapeutics]

It is gonna continue throughout all quarters from now on. It's a reallocation of those expenses into cost of goods and we capitalize one time inventory, but the cost of goods are gonna increase because of this fixed cost and now it's getting allocated. Yeah.

[Eric Schmidt, Analyst at Cantor]

Thank you very much.

[Operator]

Ladies and gentlemen, as a reminder, should you have a question, please press star one. Your next question comes from Sudan Loganathan with Stephens. Your line is now open.

[Sudan Loganathan, Managing Director at Stephens]

Hi. Good morning. Appreciate taking the question. My first one, wanted to ask, you know, will you believe the immediate impacts post the LOTIS-5 top line results in the second quarter, you know, could be, you know, as for instance, if it is positive, good PFS readout, you know, how this may change, how ZYNLONTA is prescribed or viewed in the second half of this year, even prior to compendia listing? Secondly, just wanted to ask even, push over to the IITs, you know, how does that add some incremental value, you know, over the, like, next year or two? Thanks.

[Ameet Mallik, CEO at ADC Therapeutics]

Sure. Yeah. Once we get to the top line readout, assuming it's positive, we then would work to go down two paths. One is to prepare the sBLA submission. That typically takes four to five months. We expect to have that certainly before the end of this year. That could lead to an approval thereafter next year. In addition, we plan to submit to a medical congress and publication by the end of this year to be able to share the full details of result. That would be the basis that we would submit to compendia, we expect that we could get compendia inclusion sometime in the first part of next year, an approval sometime thereafter in 2027. We don't expect any revenue impact this year.

[Ameet Mallik, CEO at ADC Therapeutics]

We expect this year to be largely in line with what the previous years are and only see a revenue trajectory increase next year. As you know, we'll only start promoting the product once we have formal approval sometime around the middle of next year. Your second question was around the IITs, correct?

[Sudan Loganathan, Managing Director at Stephens]

Yeah, yeah.

[Ameet Mallik, CEO at ADC Therapeutics]

Okay. With the IITs, we have both marginal zone and the follicular lymphoma IITs. Both of those, the data on the full study will be disclosed sometime between the end of this year and the middle of next year. We expect publications to happen around that same time and then to be submitted for compendia inclusion after that. In addition, we're evaluating the regulatory approach for that we would take in indolent lymphomas when we move forward in parallel.

[Sudan Loganathan, Managing Director at Stephens]

Great. I appreciate the details and looking forward to the readout.

[Ameet Mallik, CEO at ADC Therapeutics]

Yeah. Thank you.

[Operator]

No further questions at this time. I will now turn the call over to Ameet Mallik for closing remarks.

[Ameet Mallik, CEO at ADC Therapeutics]

Thank you all for joining the call today and for your continued support. We look forward to keeping you updated on our progress and look forward to speaking soon. Operator, you may now end the call. Thank you.

[Operator]

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating. In that say, please disconnect your lines.

Participants

Executives

• Ameet Mallik, CEO
• Nicole Riley, Head of Investor Relations and Corporate Communications
• Pepe Carmona, CFO

Analysts

• Eric Schmidt, Analyst at Cantor
• Maury Raycroft, Analyst at Jefferies
• Michael Schmidt, Senior Analyst and Senior Managing Director at Guggenheim
• Sudan Loganathan, Managing Director at Stephens