Q3 FY2026
Filed Nov 9, 2026Xenon reports Q3 2026 net loss of $110.4 million, no revenue, and azetukalner NDA for focal seizures submitted in September 2026
The company reports regulatory and pipeline progress (NDA submitted for focal seizures, X-NOVA2 enrollment complete, positive Phase 1 pain data) and cash of $1,153.5 million with runway into 2029. Net loss rose versus the prior-year quarter, operating expenses grew in both research and development and general and administrative, revenue was nil, and the filing discloses a voluntary pause on new enrollment in the MDD and BPD Phase 3 studies.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026 (three months ended Sept 30)GAAP | nil (printed as a dash) | – | – |
| Research and development expenses, Q3 2026GAAP | $95.6M | – | – |
| General and administrative expenses, Q3 2026GAAP | $24.4M | – | – |
| Total operating expenses, Q3 2026GAAP | $120.1M | – | – |
| Loss from operations, Q3 2026GAAP | −$120.1M | – | – |
| Other income, Q3 2026GAAP | $11.5M | – | – |
| Loss before income taxes, Q3 2026GAAP | −$108.6M | – | – |
| Income tax recovery (expense), Q3 2026GAAP | −$1.84M | – | – |
| Net loss, Q3 2026GAAP | $110.4M | – | – |
| Net loss per common share, basic and diluted, Q3 2026GAAP | $(1.11) | – | – |
| Comprehensive loss, Q3 2026GAAP | −$112.8M | – | – |
| Revenue, nine months ended Sept 30, 2026GAAP | nil (printed as a dash) | – | – |
| Research and development expenses, nine months ended Sept 30, 2026GAAP | $283.4M | – | – |
| General and administrative expenses, nine months ended Sept 30, 2026GAAP | $72.17M | – | – |
| Total operating expenses, nine months ended Sept 30, 2026GAAP | $355.6M | – | – |
| Loss from operations, nine months ended Sept 30, 2026GAAP | −$355.6M | – | – |
| Other income, nine months ended Sept 30, 2026GAAP | $30.76M | – | – |
| Loss before income taxes, nine months ended Sept 30, 2026GAAP | −$324.8M | – | – |
| Income tax recovery (expense), nine months ended Sept 30, 2026GAAP | 1,313 recovery (in thousands of U.S. dollars) | – | – |
| Net loss, nine months ended Sept 30, 2026GAAP | −$323.5M | – | – |
| Net loss per common share, basic and diluted, nine months ended Sept 30, 2026GAAP | $(3.38) | – | – |
| Comprehensive loss, nine months ended Sept 30, 2026GAAP | −$328.9M | – | – |
| Cash, cash equivalents and marketable securities, as of Sept 30, 2026other | $1.15B | – | – |
Capital returns
- The filing does not report share repurchases or dividends for the period.
What drove it
- Research and development expenses rose, which the company attributes primarily to the ongoing azetukalner Phase 3 clinical studies in MDD and BPD, manufacturing activities to support potential commercialization and launch readiness of azetukalner, the ongoing XEN1720 Phase 1 clinical study, and increased personnel-related costs from higher headcount and stock-based compensation.
- General and administrative expenses rose, which the company attributes primarily to personnel-related costs from higher headcount and stock-based compensation, and to increased professional and consulting fees.
- Other income rose, which the company attributes primarily to higher interest income.
- The company attributes the increase in net loss primarily to higher research and development expenses, higher general and administrative expenses, partially offset by higher interest income.
- Revenue was nil in Q3 2026 and in the prior-year quarter, and the nine-month revenue was nil compared with 7,500 thousand in the prior-year nine months.
Concerns
- Net loss increased from $90.9 million to $110.4 million in the quarter, and the nine-month net loss rose from (240,649) thousand to (323,473) thousand, per the statement of operations.
- The company reports no revenue in the quarter or the nine months ended September 30, 2026.
- The company announced in September that it had initiated a voluntary pause on new patient enrollment in the ongoing Phase 3 clinical studies of azetukalner in MDD and BPD. Patients currently enrolled remain active.
- The filing provides no quarterly or annual guidance figures for revenue, expenses or cash burn.
What to watch
- Topline data readout from Phase 3 X-NOVA2 in MDD, now expected in December 2026.
- FDA review of the azetukalner New Drug Application for focal seizures submitted in September 2026.
- Initiation of the Phase 3b/4 X-FIRST study, planned for Q1 2027.
- Initiation of Phase 2 proof-of-concept studies for XEN1701 and XEN1120 in acute pain, expected in H1 2027.
- Completion of X-TOLE3 enrollment outside of Japan, expected in 2026, and multiple data presentations at the American Epilepsy Society 2026 Annual Meeting, December 4-8, 2026.
- Status of the voluntary enrollment pause in the MDD and BPD Phase 3 studies.
- Phase 1b data from the Neurocrine Biosciences collaboration on NBI-921355, expected in 2027.
Balance sheet and cash flow
- Cash, cash equivalents and marketable securities were $1,153.5 million as of September 30, 2026, compared to $586.0 million as of December 31, 2025, as stated in the release text.
- Balance sheet table (in thousands of U.S. dollars), September 30, 2026 versus December 31, 2025: Cash, cash equivalents and marketable securities (current) 950,798 versus 548,886; Marketable securities, non-current 202,680 versus 37,152; Total assets 1,199,875 versus 633,163; Total liabilities 53,493 versus 51,403; Shareholders' equity 1,146,382 versus 581,760.
- Company states that, based on current operating plans, it anticipates having sufficient cash to fund operations into 2029.
- As of September 30, 2026, there were 98,275,278 common shares and 1,507,885 pre-funded warrants outstanding.
- Operating cash flow and free cash flow are not reported in the filing.
Analysis
Xenon reported no revenue for the third quarter of 2026 and a net loss of $110.4 million, against a net loss of $90.9 million in the third quarter of 2025. Research and development expenses were $95.6 million (prior year $77.1 million) and general and administrative expenses were $24.4 million (prior year $19.3 million). Other income of $11.5 million (prior year $6.1 million) partly offset the higher operating costs, and the company attributes that increase to higher interest income. Net loss per share was $(1.11) on a weighted-average share count that the statements show rising from 79,247,976 to 99,765,663 in the prior-year comparison, so the share base also changed over the period.
On the nine-month view, total operating expenses reached 355,550 thousand against 270,803 thousand, with research and development at 283,377 thousand (prior 213,239 thousand) and general and administrative at 72,173 thousand (prior 57,564 thousand). Nine-month revenue was nil compared with 7,500 thousand in the prior-year period, so the prior-year comparison includes a revenue line that is absent this year. Net loss for the nine months was (323,473) thousand against (240,649) thousand.
The company's explanation for higher research and development spending points to the azetukalner Phase 3 studies in MDD and BPD, manufacturing for potential launch readiness, the XEN1720 Phase 1 study, and personnel costs. Management's explanation for the general and administrative increase cites headcount, stock-based compensation and professional fees. The filing does not disclose operating cash flow, free cash flow or guidance figures, so the cost trend cannot be set against forecast spending.
Balance sheet and liquidity: cash, cash equivalents and marketable securities were $1,153.5 million at September 30, 2026, up from $586.0 million at December 31, 2025, and total assets rose to 1,199,875 thousand from 633,163 thousand. Shareholders' equity rose to 1,146,382 thousand from 581,760 thousand. The company states that its current operating plans fund operations into 2029. The filing does not report any share repurchases or dividends.
Operationally, the company submitted its azetukalner New Drug Application for focal seizures to the FDA in September 2026, completed enrollment in the X-NOVA2 MDD study with topline data now expected in December 2026, and reported positive Phase 1 data for the XEN1701 and XEN1120 pain programs. The filing also discloses that a voluntary pause on new patient enrollment in the MDD and BPD Phase 3 studies was announced in September. These are the items that most warrant attention, alongside the rising net loss and the absence of revenue.
Management, verbatim
We've made significant progress advancing azetukalner with our recent NDA submission to the FDA for focal seizures and through ongoing scientific exchange opportunities. We continue to have great confidence in azetukalner's product profile in epilepsy based on strong efficacy and consistent safety across more than 1,500 patient-years of data, which has been reiterated in conversations with both epileptologists and neurologists
Ian Mortimer, President and Chief Executive Officer
Not in the filing
stated, not guessed- Company guidance for revenue, gross margin, operating expenses or cash burn is not provided in the filing.
- Prior-quarter (Q2 2026) comparative figures are not printed in the release, so prior_quarter and qoq_change fields are null.
- Percentage year-over-year changes are not printed for any line, so yoy_change fields are null.
- Operating cash flow and free cash flow are not reported.
- Segment or product revenue breakdown is not applicable; the company reports a single operating line and no segment table.
- Cash comparison for the balance sheet is given against December 31, 2025, not the prior-year quarter, so cash prior_year is null.
- Share price reaction and analyst consensus are not included in the filing and are not provided here.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.