Alector (ALEC) Q1 2025 Earnings
How Did ALEC Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.56%.
Did ALEC Beat Earnings? Q1 2025 Results
Yes. Alector reported Q1 2025 earnings of $-0.41 a share on May 8, 2025, beating the $-0.46 consensus estimate by 10.9%. Revenue was $3.7M against a $4.3M estimate.
Alector delivered a mixed first quarter for 2025, beating on the bottom line while falling short on revenue, as the wind-down of key collaboration obligations continued to reshape its financials. The neurodegenerative disease-focused biotech posted a loss of $0.41 per share, ahead of the consensus estimate of $0.46 by 10.87%, but quarterly collaboration revenue dropped sharply to $3.67 million, a 76.9% decline from a year ago and below the $4.25 million analyst estimate, driven largely by the completion of performance obligations tied to the AL002 program. Reduced R&D spending, which fell to $33.64 million from $45.17 million in Q1 2024, helped cushion the earnings impact even as net loss widened modestly to $40.47 million. With $354.55 million in cash and investments expected to sustain operations into the second half of 2027, the company reiterated full-year collaboration revenue guidance of $5 million to $15 million, keeping investor focus squarely on topline data from the pivotal INFRONT-3 Phase 3 trial of latozinemab in FTD-GRN, anticipated in Q4 2025.
- Collaboration revenue decline driven by satisfaction of AL002 program and latozinemab FTD-C9orf72 Phase 2 trial performance obligations in Q4 2024
- R&D expense decrease driven by reduced AL002 program spending and lower personnel costs from reductions in force
- Other income, net of $4.2 million partially offset operating losses
“With cash runway extending into the second half of 2027, Alector is advancing a portfolio of drug candidates toward novel as well as validated targets for people living with neurodegenerative diseases. We remain on track to report topline results from the pivotal INFRONT-3 Phase 3 trial of latozinemab in frontotemporal dementia with a granulin gene mutation in the fourth quarter of 2025, and we have completed enrollment in the PROGRESS-AD Phase 2 trial of AL101/GSK4527226 in early Alzheimer's disease. This progress reinforces our commitment to developing meaningful therapies for people living with neurodegeneration.”
Alector CEO, on the earnings call
What Was Alector's Outlook in Q1 2025?
Management reiterated full-year 2025 guidance: collaboration revenue of $5 million to $15 million, total R&D expenses of $175 million to $185 million, and total G&A expenses of $55 million to $65 million. Cash, cash equivalents, and investments of $354.6 million are expected to fund operations into the second half of 2027. Topline data from the pivotal INFRONT-3 Phase 3 trial of latozinemab in FTD-GRN remains on track for Q4 2025.
ALEC YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.7M | $15.9M | −76.9% |
| Operating Income | −$44.7M | −$45.7M | −2.3% |
| Net Income | −$40.5M | −$46.1M | −12.2% |
ALEC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.