Companies /Healthcare

Alector Inc

NASDAQ: ALEC Biotechnology
$2.17
▲ $0.03 (+1.36%) today
Markets open · 9:48am ET

Q3 2025 Earnings

Reported Nov 6, 2025, 4:12pm ET · SEC source
$-0.34
Beat +17.66%
EPS · est. $-0.41
$3.3M
Miss −6.52%
Revenue · est. $3.5M
−0.9%
Trailing market
ALEC vs S&P since report
7 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−9%−6%−3%0Nov 6Nov 7report 4:12pm ETearnings+0.1%−1.5%
−9%−6%−3%0Nov 6Nov 7earnings+0.1%−1.5%
ALEC −1.5%S&P 500 +0.1%
−9%−6%−3%0Nov 6Nov 7report 4:12pm ETearnings−0.3%−1.5%
−9%−6%−3%0Nov 6Nov 7earnings−0.3%−1.5%
ALEC −1.5%NASDAQ −0.3%
−6%0+6%+12%Nov 5Nov 14report 4:12pm ETearnings+0.1%−4.6%
−6%0+6%+12%Nov 5Nov 14earnings+0.1%−4.6%
ALEC −4.6%S&P 500 +0.1%
−6%0+6%+12%Nov 5Nov 14report 4:12pm ETearnings−0.5%−4.6%
−6%0+6%+12%Nov 5Nov 14earnings−0.5%−4.6%
ALEC −4.6%NASDAQ −0.5%
−1.54%
Day of report
+2.34%
Next session
−3.13%
One week
+1.56%
30 days

S&P 500 over the same 30 days: +2.47%.

Did ALEC Beat Earnings? Q3 2025 Results

Alector posted a mixed third quarter for fiscal 2025, delivering a narrower-than-expected loss while falling short on revenue against a backdrop of significant pipeline turbulence. The neuroscience-focused biotech reported a net loss of $0.34 per share, beating the consensus estimate of $0.41 by 17.66%, as aggressive cost-cutting drove R&D expenses down to $29.35 million from $48.00 million a year ago. Revenue, however, came in at $3.26 million, missing the $3.49 million estimate by 6.52% and collapsing 78.8% year-over-year, largely because collaboration milestones tied to the AL002 program and the latozinemab FTD-C9orf72 trial were fulfilled in late 2024. The Phase 3 INFRONT-3 failure for latozinemab, which triggered a roughly 47% workforce reduction in October and prompted at least one analyst downgrade, now defines the company's reset moment. Management reiterated full-year guidance of $13 million to $18 million in collaboration revenue and expects its $291.11 million cash position to fund operations through 2027, while pivoting toward its ABC brain-delivery platform and targeting IND filings for AL137 in 2026 and AL050 in 2027.

Key Takeaways
  • Revenue decline driven by completion of AL002 and latozinemab FTD-C9orf72 performance obligations in Q4 2024
  • R&D expense reduction from wind-down of AL002 program and headcount reductions
  • G&A expense decrease from absence of prior-year right-of-use asset and leasehold improvement impairment charges and personnel cost reductions

“We are well-resourced to advance our portfolio of innovative drug candidates for the treatment of neurodegenerative diseases, with a sharpened focus on our differentiated Alector Brain Carrier (ABC) platform. ABC represents an important driver of innovation, with the versatility to deliver antibodies, enzymes and nucleic acid to the brain. Our ABC-enabled programs have demonstrated robust brain penetration through peripheral dosing, favorable safety, and good pharmacokinetics. We are advancing AL137, our ABC-enabled anti-amyloid beta antibody, AL050, our ABC-enabled GCase enzyme replacement therapy, and ADP064, our ABC-enabled Tau siRNA, toward IND-enabling studies, with IND submissions targeted in 2026 and 2027.”

Alector CEO, on the earnings call

Forward Guidance & Outlook

Alector reiterated its 2025 full-year guidance: collaboration revenue of $13 million to $18 million, total R&D expenses of $130 million to $140 million, and total G&A expenses of $55 million to $65 million. Management anticipates its current cash position of $291.1 million will fund operations through 2027, supported by the approximately 47% reduction in force implemented in October 2025. An independent interim analysis for the PROGRESS-AD Phase 2 trial of nivisnebart in early Alzheimer's disease is planned for the first half of 2026. IND filings are targeted for AL137 in 2026 and AL050 in 2027.

ALEC YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$-40,000,000$-20,000,000$0$15.3M$3.3MRevenue$-30,738,047$-37,608,000Operating Income$-29,406,226$-34,667,000Net 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.