Alkermes (ALKS) Q4 2025 earnings summary

Executive summary

• 2025 total revenues reached $1.48 billion, with proprietary product sales up 9% year-over-year and strong cash flow and profitability despite the expiration of INVEGA SUSTENNA® royalties.

• The Avadel acquisition was completed in February 2026, adding LUMRYZ to the portfolio and accelerating entry into the sleep medicine market.

• Alixorexton, an orexin 2 receptor agonist, received FDA Breakthrough Therapy designation and is advancing to phase III in narcolepsy, with trials starting Q1 2026.

• The company is investing in a pipeline targeting central disorders of hypersomnolence, ADHD, and neurodegenerative fatigue, with multiple candidates in clinical stages.

• Leadership transition announced: CEO Richard Pops to become chairman, Blair Jackson to assume CEO role in summer 2026.

Financial highlights

• FY 2025 total revenues were $1.48 billion, with proprietary product net sales of $1.18 billion, up from $1.08 billion in 2024.

• VIVITROL net sales: $467.9 million; ARISTADA: $370 million; LYBALVI: $346.7 million; LYBALVI Q4 2025 net sales grew 22% YoY to $94.1 million.

• LUMRYZ (Avadel) net sales: $279 million in 2025, with ~3,500 patients on therapy (+40% YoY).

• 2025 GAAP net income: $241.7 million; EBITDA: $285.6 million; adjusted EBITDA: $394 million; diluted EPS: $1.43.

• Ended 2025 with $1.32 billion in cash and investments.

Outlook and guidance

• 2026 revenue guidance: $1.73–$1.84 billion; proprietary product net sales: $1.52–$1.6 billion.

• LUMRYZ expected 2026 net sales: $315–$370 million.

• Adjusted EBITDA guidance: $370–$410 million; GAAP net loss expected ($115–$135 million) due to acquisition-related accounting.

• R&D expenses projected at $445–$485 million, reflecting expanded pipeline and Avadel integration.

• SG&A expenses expected at $890–$930 million, including $50 million in one-time transaction costs.