CytomX Therapeutics (NASDAQ:CTMX) Announces Earnings Results

Key Points

• CytomX missed quarterly expectations: The company reported a loss of $0.09 per share versus the consensus loss estimate of $0.08, while revenue of $1.42 million fell well short of the $12.39 million forecast.
• Varseta-M development is advancing: Dose-optimization enrollment is complete, with broader monotherapy data expected by year-end 2026 and a potential registrational study targeted for the first half of 2027. The program is also expanding into earlier-line colorectal cancer and additional gastrointestinal cancers.
• Cash resources support the pipeline, but safety remains a risk: A $37 million Regeneron payment lifted pro forma cash to approximately $367 million, extending the runway into at least the second half of 2028. However, diarrhea—particularly potentially high Grade 3 rates—could limit Varseta-M’s use in earlier treatment lines.

CytomX Therapeutics (NASDAQ:CTMX - Get Free Report) posted its earnings results on Thursday. The biotechnology company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.01), Zacks reports. CytomX Therapeutics had a negative net margin of 435.21% and a negative return on equity of 45.40%. The firm had revenue of $1.42 million during the quarter, compared to analyst estimates of $12.39 million.

Here are the key takeaways from CytomX Therapeutics' conference call:

• Varseta-M dose-optimization enrollment is complete, with a 113-patient Phase I study ongoing; CytomX expects to report broader monotherapy data, including initial progression-free and overall-survival information, by year-end 2026 and start a potential registrational study in the first half of 2027.
• The company is expanding Varseta-M into earlier-line colorectal cancer through bevacizumab and 5-FU/leucovorin combinations, with initial combination data expected in the first half of 2027 and a goal of replacing irinotecan in second-line treatment.
• CytomX is broadening Varseta-M into gastric/GEJ, pancreatic, and biliary tract cancers through new Phase I expansion cohorts, potentially positioning the drug as a pan-gastrointestinal ADC.
• CytomX received a $37 million Regeneron payment in July for two additional collaboration targets, taking pro forma cash to approximately $367 million; management projects cash runway into at least the second half of 2028.
• Diarrhea remains a key development risk for Varseta-M, particularly if Grade 3 rates trend toward the high end of the company’s 10%–20% risk-benefit range, which could affect its movement into earlier treatment lines despite reported improvement with loperamide and budesonide prophylaxis.

CytomX Therapeutics Trading Up 2.7%

Shares of NASDAQ CTMX traded up $0.09 during midday trading on Friday, reaching $3.46. 2,461,314 shares of the stock were exchanged, compared to its average volume of 3,128,085. The stock has a 50 day moving average price of $3.35 and a 200-day moving average price of $4.27. The company has a market capitalization of $588.86 million, a P/E ratio of -6.92 and a beta of 2.12. CytomX Therapeutics has a 52-week low of $1.72 and a 52-week high of $8.21.

Analysts Set New Price Targets

Several research firms recently commented on CTMX. Wolfe Research began coverage on shares of CytomX Therapeutics in a research report on Tuesday, May 19th. They issued an "outperform" rating and a $6.00 price objective on the stock. HC Wainwright dropped their target price on shares of CytomX Therapeutics from $17.00 to $11.00 and set a "buy" rating for the company in a report on Monday, May 11th. Zacks Research upgraded shares of CytomX Therapeutics from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 21st. Wall Street Zen raised shares of CytomX Therapeutics from a "strong sell" rating to a "sell" rating in a report on Saturday, May 9th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of CytomX Therapeutics in a research report on Tuesday, June 16th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $12.10.

Institutional Trading of CytomX Therapeutics

Hedge funds have recently bought and sold shares of the company. Wells Fargo & Company MN raised its holdings in CytomX Therapeutics by 83.2% in the 4th quarter. Wells Fargo & Company MN now owns 6,605 shares of the biotechnology company's stock valued at $28,000 after acquiring an additional 3,000 shares during the last quarter. Hsbc Holdings PLC acquired a new stake in shares of CytomX Therapeutics during the fourth quarter worth $52,000. Bank of Nova Scotia purchased a new stake in shares of CytomX Therapeutics in the fourth quarter valued at $58,000. Invesco Ltd. purchased a new stake in shares of CytomX Therapeutics in the second quarter valued at $32,000. Finally, Paces Ferry Wealth Advisors LLC acquired a new position in CytomX Therapeutics in the fourth quarter valued at $63,000. Institutional investors and hedge funds own 67.77% of the company's stock.

About CytomX Therapeutics

CytomX Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of next-generation therapeutics based on its proprietary Probody® platform. The company engineers masked antibody prodrugs that remain inactive in healthy tissue but are selectively activated in the tumor microenvironment. This approach is designed to enhance the safety and tolerability of antibody-based therapies, particularly those targeting immuno-oncology pathways.

At the core of CytomX's pipeline is Pacmilimab (CX-072), an anti–PD-L1 Probody therapeutic currently undergoing clinical evaluation for multiple solid tumor indications.

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