How IOVA (Iovance Biotherapeutics) Makes Money in 2026: A Deep-Dive With Income Statement

Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io

Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.

Understanding how a biotechnology company like IOVA makes money is essential for investors and anyone interested in the business of biotech. In this post, we break down IOVA's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick IOVA Overview

IOVA operates as a clinical-stage biotechnology company focused on developing novel cancer immunotherapies, primarily its lead product candidate livmoniplimab (also known as feladilimab), a PD-1 inhibitor, and other investigational therapies targeting tumor microenvironment modulation. Revenue comes primarily from collaboration agreements, milestone payments, and limited product sales in early-stage commercialization efforts. As a biotech firm in the immunotherapy space, IOVA relies heavily on R&D investments with no detailed revenue segments reported for Q3 2025, indicating a pre-commercial revenue model supplemented by partnerships.

Revenue Breakdown

• Total Revenue (Q3 2025): $67.5M (+15.2% YoY)
  • No specific segment breakdowns available; revenue primarily from collaboration and milestone payments in immunotherapy development.
  • Growth is powered by progress in clinical trials and partnership milestones.

Gross Profit and Margins

• Gross Profit: $66.0M (97.9% gross margin)
  • Cost of Revenue: $1,408.0M (-96.5% YoY)
  • IOVA maintains robust margins due to low cost of revenue relative to revenue scale in early biotech operations and potential one-time adjustments.
• Most costs come from minimal direct production costs, with heavy emphasis shifting to operating expenses.

Operating Income and Expenses

• Operating Income: Not specified (implied negative given expense levels)
• Operating Expenses: $160.9M (+49.3% YoY)
  • R&D: $75.2M (+10.2% YoY, 111.4% of revenue) — focused on advancing livmoniplimab and other pipeline candidates through clinical trials
  • SG&A: $34.6M (-12.6% YoY, 51.2% of revenue) — covering administrative, sales, and general operations amid controlled spending
  • IOVA continues to prioritize innovation while maintaining efficiency in non-R&D areas through cost controls.

Net Income

• Pre-Tax Income: Not specified
• Income Tax: Not specified (0% effective tax rate implied)
• Net Income: $91.3M (+9.2% YoY, 135.3% net margin)
• IOVA converts a high portion of sales into profit due to non-operating income sources like investment gains or partnership adjustments offsetting high R&D spend.

Most investors waste time on the wrong metrics. We've spent 10,000+ hours perfecting our value investing engine to find what actually matters.

Want to see what we'll uncover next - before everyone else does?

Find Hidden Gems First!

What Drives IOVA's Money Machine?

• Collaboration and Milestone Revenue: 100% of revenue from partnerships funding immunotherapy development.
• Pipeline Progress: R&D at 111.4% of revenue underscores heavy investment in clinical advancement.
• Cost Discipline in SG&A: -12.6% YoY decline reflects efficient overhead management.
• Future growth areas: Commercialization of livmoniplimab, though not yet profitable at scale.

Visualizing IOVA's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially R&D) taking the largest chunk.
• Even after significant investments, 135.3% of revenue drops to the bottom line due to non-operating gains.

Key Takeaways

• IOVA's money comes overwhelmingly from collaboration and milestone payments
• High gross and net margins illustrate the power of IOVA's asset-light biotech model
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by clinical trial milestones and partnerships

Explore More Investment Opportunities

For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:

📌 50 Undervalued Stocks (Best overall value plays for 2026)

📌 50 Undervalued Dividend Stocks (For income-focused investors)

📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)

🔍 Check out these stocks on the Value Sense platform for free!

FAQ About IOVA's Income Statement

1. What is the main source of IOVA's revenue in 2025?

IOVA generates over 100% of its revenue from collaboration agreements and milestone payments. No other significant revenue sources are broken out.

2. How profitable is IOVA in Q3 2025?

IOVA reported net income of $91.3M in Q3 2025, with a net margin of approximately 135.3%, reflecting strong profitability driven by non-operating income offsetting R&D-heavy operations.

3. What are the largest expense categories for IOVA?

The biggest expenses on IOVA's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $75.2M in Q3 2025, as IOVA prioritizes clinical trials for immunotherapy candidates.

4. Why does R&D operate at a loss?

R&D, despite supporting $67.5M in revenue, contributes to overall operating losses exceeding $94.9M (implied from gross profit minus expenses) in Q3 2025. This is because IOVA aggressively invests in pipeline advancement, believing these will drive long-term growth—even if unprofitable today.

5. How does IOVA's effective tax rate compare to previous years?

IOVA's effective tax rate in Q3 2025 was 0%, consistent with previous years. This low rate is primarily due to net operating loss carryforwards and R&D tax credits typical in biotech.