Companies /Healthcare

Alector Inc

NASDAQ: ALEC Biotechnology
$2.14
▲ $0.00 (+0.00%) today
Markets closed · 8:56am ET

Q1 2025 Earnings

Reported May 8, 2025, 4:10pm ET · SEC source
$-0.41
Beat +10.87%
EPS · est. $-0.46
$3.7M
Miss −13.55%
Revenue · est. $4.3M
+32.8%
Beating market
ALEC vs S&P since report
7 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+6%+12%+18%May 8May 9report 4:10pm ETearnings−0.2%+12.5%
0+6%+12%+18%May 8May 9earnings−0.2%+12.5%
ALEC +12.5%S&P 500 −0.2%
0+6%+12%+18%May 8May 9report 4:10pm ETearnings−0.1%+12.5%
0+6%+12%+18%May 8May 9earnings−0.1%+12.5%
ALEC +12.5%NASDAQ −0.1%
0+9%+18%May 7May 16report 4:10pm ETearnings+4.8%+17.3%
0+9%+18%May 7May 16earnings+4.8%+17.3%
ALEC +17.3%S&P 500 +4.8%
0+9%+18%May 7May 16report 4:10pm ETearnings+6.3%+17.3%
0+9%+18%May 7May 16earnings+6.3%+17.3%
ALEC +17.3%NASDAQ +6.3%
+12.50%
Day of report
+2.56%
Next session
+4.27%
One week
+39.32%
30 days

S&P 500 over the same 30 days: +6.56%.

Did ALEC Beat Earnings? Q1 2025 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$-40,000,000$-20,000,000$0$15.9M$3.7MRevenue$-45,728,463$-44,695,000Operating Income$-46,078,789$-40,471,000Net Income
$-40,000,000$-20,000,000$0RevenueOperating IncomeNet Income

ALEC Revenue by Segment

Collaboration Revenue

Figures from SEC filings and company reports. Not investment advice.