Halozyme Therapeutics (HALO) Q4 2025 earnings summary

Executive summary

• Achieved record financial and operational performance in 2025, with total revenue of $1.4 billion, a 38% year-over-year increase, driven by strong royalty revenue and product sales.

• Expanded subcutaneous drug delivery technologies from two to four via acquisitions of Elektrofi's Hypercon and Surf Bio's hyperconcentration technology, extending IP into the mid-2040s.

• Secured multiple new ENHANZE collaboration and licensing agreements, including with Takeda, Merus, Skye Bioscience, and Viatris, broadening reach into obesity and inflammatory bowel disease.

• Received FDA approval for DARZALEX FASPRO® for smoldering multiple myeloma and global approvals for RYBREVANT® SC.

• Positioned for durable royalty revenue extending into the 2040s, supported by new product approvals and development agreements.

Financial highlights

• Total revenue grew 38% year-over-year to $1,396.6 million in 2025; Q4 revenue up 52% to $451.8 million.

• Royalty revenue increased 52% to $867.8 million, driven by ENHANZE-enabled products.

• Net income was $316.9 million, including a $284.9 million acquired IP R&D expense from the Surf Bio acquisition.

• Adjusted EBITDA reached $657.6 million, up from $632.2 million in 2024.

• GAAP diluted EPS was $2.56; non-GAAP diluted EPS was $4.15, both impacted by the Surf Bio IP R&D charge.

Outlook and guidance

• 2026 revenue guidance: $1.71–$1.81 billion, representing 22%–30% year-over-year growth.

• Royalty revenue expected at $1.13–$1.17 billion, up 30%–35% year-over-year.

• Adjusted EBITDA projected at $1.125–$1.205 billion; non-GAAP diluted EPS of $7.75–$8.25, up 87–99% year-over-year.

• Six new ENHANZE and two new Hypercon programs to enter phase I in 2026, with three new licensing agreements targeted.

• 2024–2028 CAGR projected at 19–21% for total revenue and 26–28% for royalties.