Q2 FY2026
Filed Aug 6, 2026Xenon Reports Q2 2026 Financial Results and Provides Business Update
Xenon advanced its azetukalner regulatory and clinical plans, including maintaining its NDA submission target for the third quarter of 2026, but reported a wider net loss as research and development and general and administrative expenses increased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Research and development expensesother | $99.2 million | – | – |
| General and administrative expensesother | $23.9 million | – | – |
| Other incomeother | $11.8 million | – | – |
| Net lossother | $110.7 million | – | – |
| Cash, cash equivalents and marketable securitiesother | $1,245.1 million | – | – |
| Common shares outstandingother | 96,752,884 common shares | – | – |
| Pre-funded warrants outstandingother | 2,931,293 pre-funded warrants | – | – |
Q3 2026 and beyond outlook
- NoteNDA submission for azetukalner in FOS on track for the third quarter of 2026.
- NoteX-TOLE3 enrollment outside of Japan is expected to complete in 2026.
- NoteTopline data from X-NOVA2 expected in H1 2027.
- NoteStudy completion for XEN1701 is expected in H2 2026.
- NoteStudy completion for XEN1120 is expected in H2 2026.
- NoteData from the Phase 1b study of NBI-921355 are expected in 2027.
- NoteBased on current operating plans, Xenon anticipates having sufficient cash to fund operations into 2029.
What drove it
- Research and development expense increased primarily due to ongoing azetukalner Phase 3 clinical studies in the MDD and BPD programs, manufacturing activities supporting the planned NDA submission, ongoing Phase 1 studies of XEN1701 and XEN1120, and increased personnel-related costs.
- General and administrative expense increased primarily due to personnel-related costs, increased employee headcount, and increased professional and consulting fees.
- Other income increased primarily due to higher interest income.
- Net loss increased primarily due to lower revenue from the collaboration with Neurocrine Biosciences, higher research and development expense, higher personnel-related costs, and higher general and administrative expense, partially offset by higher interest income.
- The Company completed a pre-NDA meeting with the U.S. Food and Drug Administration for azetukalner in FOS.
- Enrollment is ongoing in the Phase 3 X-NOVA2 and X-NOVA3 studies in MDD and the Phase 3 X-CEED study in BPD I or II.
Concerns
- Net loss was $110.7 million for the quarter ended June 30, 2026, compared to $84.7 million for the same period in 2025.
- Research and development expenses were $99.2 million for the quarter ended June 30, 2026, compared to $75.0 million for the same period in 2025.
- The Company cited lower revenue from the collaboration with Neurocrine Biosciences as a contributor to the increased net loss.
- X-TOLE3 and X-ACKT remain in enrollment, while the neuropsychiatry Phase 3 studies also remain ongoing.
What to watch
- NDA submission for azetukalner in FOS in the third quarter of 2026.
- Completion of X-TOLE3 enrollment outside of Japan in 2026.
- Completion of Phase 1 studies for XEN1701 and XEN1120 in H2 2026.
- Topline Phase 3 X-NOVA2 data in H1 2027.
- Phase 1b data for NBI-921355 in 2027.
- Progress of enrollment in X-ACKT, X-NOVA3, and X-CEED.
Balance sheet and cash flow
- Cash, cash equivalents and marketable securities were $1,245.1 million as of June 30, 2026, compared to $586.0 million as of December 31, 2025.
- Based on current operating plans, Xenon anticipates having sufficient cash to fund operations into 2029.
- As of June 30, 2026, there were 96,752,884 common shares and 2,931,293 pre-funded warrants outstanding.
Analysis
Xenon reported a net loss of $110.7 million for the quarter ended June 30, 2026, compared to $84.7 million for the same period in 2025. The filing attributes the increase to lower collaboration revenue from Neurocrine Biosciences, increased development spending across azetukalner and pain programs, higher personnel-related costs, and higher general and administrative expense. Higher interest income partially offset these factors.
Research and development expenses were $99.2 million, compared to $75.0 million for the same period in 2025. Spending reflected ongoing Phase 3 azetukalner studies in MDD and BPD, manufacturing activity for the planned NDA submission, and ongoing Phase 1 studies for XEN1701 and XEN1120. General and administrative expenses were $23.9 million, compared to $19.2 million, driven by increased headcount, stock-based compensation expense, professional fees, and consulting fees. Other income was $11.8 million, compared to $8.9 million, primarily due to higher interest income.
The central operating milestone remains the planned NDA submission for azetukalner in FOS in the third quarter of 2026, following completion of a pre-NDA meeting with the FDA. The epilepsy program continues to progress through enrollment in X-TOLE3 and X-ACKT, while the neuropsychiatry expansion remains in Phase 3 enrollment across X-NOVA2, X-NOVA3, and X-CEED. Xenon expects topline X-NOVA2 data in H1 2027.
The pain portfolio is also moving forward, with XEN1701 and XEN1120 Phase 1 study completion expected in H2 2026 and a Phase 1 study underway for XEN1720. Liquidity was $1,245.1 million in cash, cash equivalents and marketable securities as of June 30, 2026, compared to $586.0 million as of December 31, 2025. Based on current operating plans, the Company anticipates sufficient cash to fund operations into 2029. The primary financial focus is the elevated spending needed to support multiple late-stage azetukalner programs and early clinical pain candidates while the Company prepares for its planned NDA submission.
Management, verbatim
The second quarter of 2026 was marked by strong execution, including a successful pre-NDA meeting, and the NDA submission for azetukalner remains on track for the third quarter of 2026. Our X-TOLE2 data continue to be well-received by healthcare providers, specifically regarding azetukalner’s differentiated clinical profile and its potential to address significant unmet needs in epilepsy.
Ian Mortimer, President and Chief Executive Officer of Xenon
We also remain focused on broadening azetukalner’s opportunity to neuropsychiatry and expect topline Phase 3 X-NOVA2 data in the first half of 2027. Our clinical-stage pain pipeline also continues to grow with the recent Phase 1 study initiation for XEN1720, our second Na V 1.7 clinical candidate.
Ian Mortimer, President and Chief Executive Officer of Xenon
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AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.