Exelixis (EXEL) Q2 2025 earnings summary

Executive summary

• Achieved Q2 2025 total revenues of $568.3 million, with U.S. cabozantinib net product revenues rising 19% year-over-year to $520 million, driven by strong commercial execution and a successful launch in neuroendocrine tumors (NETs).

• CABOMETYX maintained leadership in renal cell carcinoma (RCC) and rapidly gained ~35% new patient share in the oral NET segment, establishing itself as a market leader in new indications.

• Advanced zanzalintinib with positive pivotal results in colorectal cancer (STELLAR-303) and initiated new pivotal studies in NETs.

• Completed $796.3 million in stock repurchases YTD under two $500 million authorizations, with $203.7 million remaining.

• Discontinued lower-priority programs (STELLAR-305, XL495) to focus on high-value pipeline opportunities.

Financial highlights

• Q2 2025 total revenues were $568.3 million, down 11% year-over-year due to lower collaboration revenues, while net product revenues rose 19% to $520 million.

• GAAP net income was $184.8 million ($0.65 diluted EPS), non-GAAP net income was $212.6 million ($0.75 diluted EPS).

• Research and development expenses were $200.4 million, down year-over-year; SG&A expenses were $134.9 million.

• Cash and marketable securities stood at $1.39 billion as of June 30, 2025.

• Gross margin remained strong at 95%–96% for Q2 2025.

Outlook and guidance

• Maintained 2025 guidance: total revenues of $2.25–$2.35 billion, net product revenues of $2.05–$2.15 billion, R&D expenses of $925–$975 million, SG&A expenses of $475–$525 million, and effective tax rate of 21%–23%.

• Guidance includes a 2.8% U.S. price increase for CABOMETYX effective January 2025.

• Management may update guidance as NET launch momentum and additional revenue opportunities develop.

• Collaboration services revenues may decrease due to lower development cost reimbursements and higher royalty payments.

• Cash flows from operations expected to remain robust, supporting liquidity for at least 12 months.