HALOZYME REPORTS FULL YEAR 2025 RECORD REVENUE OF $1.4 BILLION AND REITERATES STRONG 2026 FINANCIAL GUIDANCE
Full Year 2025 Total Revenue Increased 38% YOY to Record $1.397 billion
Full Year 2025 Royalty Revenue Increased 52% YOY to Record $868 million
Completed Acquisitions of Elektrofi's Hypercon™ Technology and
Surf Bio's Hyperconcentration Technology
Reiterating 2026 Financial Guidance Ranges:
Total Revenue of $1.710 - $1.810 billion, YOY Growth of 22% - 30%
Adjusted EBITDA of $1.125 - $1.205 billion, YOY Growth of 71% - 83% 1
Non-GAAP Diluted EPS of $7.75 - $8.25, YOY Growth of 87% - 99% 1
SAN DIEGO, Feb. 17, 2026 /PRNewswire/ -- Halozyme Therapeutics, Inc. (NASDAQ: HALO) ("Halozyme" or the "Company") today reported its financial and operating results for the full year and fourth quarter ended December 31, 2025, and provided an update on its recent corporate activities.
"2025 was a pivotal year for Halozyme as we delivered record total revenue of $1.4 billion, which was the result of continued growth in our ENHANZE business. In addition, we expanded our drug delivery technology portfolio with two acquisitions. Three ENHANZE‑enabled blockbusters, DARZALEX SC, Phesgo and VYVGART Hytrulo, drove royalty revenue growth of 52%, reaching a record $868 million in 2025. In the year, we also expanded our ENHANZE opportunities, adding three new collaboration and licensing agreements with Takeda, Merus and Skye Bioscience and gained one new target nomination from Roche. Furthermore, Janssen expanded the global reach of ENHANZE with approvals in the U.S., China and Japan for Rybrevant SC and new indication approvals in front line settings for DARZALEX Faspro. In parallel, we broadened our drug delivery portfolio with the acquisitions of the Hypercon technology and Surf Bio's hyperconcentration technology, which meaningfully expand, diversify and extend our long‑term royalty opportunity into the mid-2040s," said Dr. Helen Torley, President and Chief Executive Officer.
Dr. Torley continued, "As we look ahead, our long-term outlook reflects the strong momentum and opportunity we have built through a broader drug delivery portfolio and offering to the biopharma industry. With royalty revenue projected to exceed $1 billion in 2026 and a clear line of sight to more than $2 billion in total revenue by 2028, Halozyme is entering its next phase of growth with strong conviction. Our projected 22% to 30% total revenue growth in 2026, combined with an expanding development pipeline with six projected new ENHANZE and two Hypercon development program starts, plus plans to sign three or more ENHANZE and Hypercon partnerships in 2026, all reinforce the durability of our revenue. With our strong cash generation and a diversified set of high‑value royalty drivers, we remain focused on delivering sustained long‑term value for shareholders."
Fourth Quarter and Recent Corporate Highlights:
Fourth Quarter and Recent Partner Highlights:
Full Year and Fourth Quarter 2025 Financial Highlights:
Financial Outlook for 2026
The Company is reiterating its 2026 financial guidance ranges, which were last updated on January 28, 2026.
For the full year 2026, the Company expects:
Table 1. 2026 Financial Guidance
Guidance Range
Total Revenue
$1.710 to $1.810 billion
Royalty Revenue
$1.130 to $1.170 billion
Adjusted EBITDA 1
$1.125 to $1.205 billion
Non-GAAP Diluted EPS 1
$7.75 to $8.25
1
EBITDA, Adjusted EBITDA and Non-GAAP Diluted EPS are Non-GAAP financial measures. See "Note Regarding Use of Non-GAAP Financial Measures" below for an explanation of these measures. Reconciliations between GAAP reported and Non-GAAP financial information for actual results are provided at the end of this earnings release.
2
In alignment with SEC guidance around non-GAAP financial measures relating to acquired IPR&D expense, we have not excluded expenses related to acquired IPR&D from our non-GAAP results.
Webcast and Conference Call
Halozyme will host its Quarterly Update Conference Call for the fourth quarter and full year ended December 31, 2025 today, Tuesday, February 17, 2026, at 1:30 p.m. PT/4:30 p.m. ET. The conference call may be accessed live with pre-registration via link: https://events.q4inc.com/analyst/624893800?pwd=q3lpEa6F. The call will also be webcast live through the "Investors" section of Halozyme's corporate website and a recording will be made available following the close of the call. To access the webcast and additional documents related to the call, please visit Halozyme.com.
About Halozyme
Halozyme is a biopharmaceutical company advancing disruptive solutions to improve patient experiences and outcomes for emerging and established therapies. As the innovators of ENHANZE ® drug delivery technology with the proprietary enzyme rHuPH20, Halozyme's commercially-validated solution facilitates the subcutaneous delivery of injected drugs and fluids, reducing treatment burden and improving convenience. ENHANZE ® has touched more than one million patient lives through ten commercialized products across over 100 global markets and is licensed to leading pharmaceutical and biotechnology companies including Roche, Takeda, Pfizer, Janssen, AbbVie, Eli Lilly, Bristol-Myers Squibb, argenx, ViiV Healthcare, Chugai Pharmaceutical, Acumen Pharmaceuticals, Merus N.V. and Skye Bioscience.
Halozyme expanded its drug delivery technology portfolio to develop partner products using Hypercon™ and the Surf Bio hyperconcentration technology. Hypercon™ is an innovative microparticle technology expected to set a new standard in hyperconcentration of drugs and biologics by reducing injection volume for the same dosage and enabling administration in at‑home and healthcare‑provider settings. The development of the Surf Bio polymer‑based hyperconcentration technology further broadens the range of biologics that can be delivered subcutaneously, meaningfully expanding the scope of opportunities across therapeutic modalities. The Hypercon™ technology has been licensed to leading biopharmaceutical partners, including Janssen, Eli Lilly and argenx.
Halozyme also develops, manufactures and commercializes drug-device combination products using advanced auto-injector technologies designed to improve convenience, reliability and tolerability, enhancing patient comfort and adherence. The Company has two proprietary commercial products, Hylenex ® and XYOSTED ®, partnered commercial products and ongoing development programs with Teva Pharmaceuticals and McDermott Laboratories Limited, an affiliate of Viatris Inc.
Halozyme is headquartered in San Diego, CA, with offices in Ewing, NJ; Minnetonka, MN; and Boston, MA. Minnetonka is also the site of its operations facility.
For more information, visit www.halozyme.com and connect with us on LinkedIn.
Note Regarding Use of Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release and the accompanying tables contain certain Non-GAAP financial measures. The Company reports earnings before interest, taxes, depreciation, and amortization ("EBITDA"), adjusted EBITDA, Non-GAAP diluted earnings per share, Non-GAAP diluted shares, and guidance with respect to those measures, in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company calculates Non-GAAP diluted earnings per share excluding share-based compensation expense, amortization of debt discounts, intangible asset amortization, one-time items, if any, such as changes in contingent liabilities, inventory adjustments, impairment charges, transaction costs for business combinations, severance and share-based compensation acceleration expenses, intellectual property litigation costs, inducement expenses related to convertible notes, and certain adjustments to income tax expense. The Company calculates Non-GAAP diluted shares excluding the dilutive impact of convertible notes which is used in calculating Non-GAAP diluted earnings. The Company calculates EBITDA excluding interest, taxes, depreciation and amortization. The Company calculates adjusted EBITDA excluding one-time items, if any, such as changes in contingent liabilities, inventory adjustments, impairment charges, transaction costs for business combinations, severance and share-based compensation acceleration expenses and intellectual property litigation costs. Reconciliations between GAAP and Non-GAAP financial measures are included at the end of this press release. The Company does not provide reconciliations of forward-looking adjusted measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for changes in share-based compensation expense and the effects of any discrete income tax items. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides Non-GAAP financial measures that it believes will be achieved; however, it cannot accurately predict all of the components of the adjusted calculations and the GAAP measures may be materially different than the Non-GAAP measures.
The Company evaluates other items of income and expense on an individual basis for potential inclusion in the calculation of Non-GAAP financial measures and considers both the quantitative and qualitative aspects of the item, including (i) its size and nature, (ii) whether or not it relates to the Company's ongoing business operations and (iii) whether or not the Company expects it to occur as part of the Company's normal business on a regular basis. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. These Non-GAAP financial measures are not meant to be considered in isolation and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP, and are not prepared under any comprehensive set of accounting rules or principles. In addition, from time to time in the future there may be other items that the Company may exclude for purposes of its Non-GAAP financial measures, and the Company may in the future cease to exclude items that it has historically excluded for purposes of its Non-GAAP financial measures.
The Company considers these Non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what the Company considers to be its core operating performance, as well as unusual events. The Non-GAAP measures also allow investors and analysts to make additional comparisons of the operating activities of the Company's core business over time and with respect to other companies, as well as assessing trends and future expectations. The Company uses Non-GAAP financial information in assessing what it believes is a meaningful and comparable set of financial performance measures to evaluate operating trends, as well as in establishing portions of our performance-based incentive compensation programs.
Safe Harbor Statement
In addition to historical information, the statements set forth in this press release include forward-looking statements including, without limitation, statements concerning the Company's financial performance (including the Company's expected financial outlook for 2026) and expectations for future growth, profitability, revenue durability, total revenue, royalty revenue, royalty revenue duration, EBITDA, Adjusted EBITDA, and non-GAAP diluted earnings-per-share, and shareholder value. Forward-looking statements also include future plans, objectives, expectations and intentions related to the acquisitions of Elektrofi and Surf Bio, such acquisitions' expected impact and contributions to the Company's and combined group's operations and financial results (including potential development and commercialization of partnered products and timing related to these events), as well as the expected benefits of the acquisitions. Forward-looking statements related to Elektrofi's and Surf Bio's intellectual property include expectations for length of patent terms and patent expirations and the expected impact such patents may have on the duration, durability and amounts of future royalty payments the Company may receive from licensing such intellectual property. Forward-looking statements regarding the Company's ENHANZE ® drug delivery technology may include the possible benefits and attributes of ENHANZE ®, its potential application to aid in the dispersion and absorption of other injected therapeutic drugs and facilitating more rapid delivery and administration of higher volumes of injectable medications through subcutaneous delivery. Forward-looking statements regarding the Company's business may include potential growth and receipt of royalty and milestone payments driven by our partners' development and commercialization efforts, potential new clinical trial study starts and advancement of partnered development programs, regulatory submissions and product launches, the size and growth prospects of our partners' drug franchises, potential new or expanded collaborations and collaborative targets, and potential approvals of new partnered or proprietary products, and the potential timing of these events. These forward-looking statements are typically, but not always, identified through use of the words "expect," "believe," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "preliminary," "possible," "should," "continue," and other words of similar meaning and involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results could differ materially from the expectations contained in these forward-looking statements as a result of several factors, including uncertainties concerning future matters such as market conditions, changes in domestic and foreign business, changes in the competitive environment in which the Company operates, the expected benefits of its acquisitions of Elektrofi and Surf Bio, unexpected early expiration or termination of the patent terms for the Company's drug delivery technologies, unexpected levels of revenues, expenditures and costs, unexpected results or delays in the growth of the Company's business, or in the development, regulatory review or commercialization of the Company's partnered or proprietary products, regulatory approval requirements, unexpected adverse events or patient outcomes and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". Except as required by law, the Company undertakes no duty to update forward-looking statements to reflect events after the date of this release.
Contacts:
Tram Bui
VP, Investor Relations and Corporate Communications
609-333-7668
[email protected]
Sydney Charlton
Teneo
917-972-8407
[email protected]
Halozyme Therapeutics, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
Revenues
Royalties
$ 257,971
$ 170,419
$ 867,840
$ 570,991
Product sales, net
122,665
79,364
376,444
303,492
Revenues under collaborative agreements
71,131
48,225
152,327
140,841
Total revenues
451,767
298,008
1,396,611
1,015,324
Operating expenses
Cost of sales
78,770
42,055
228,774
159,417
Amortization of intangibles
23,376
17,762
76,662
71,049
Research and development
31,897
20,441
81,490
79,048
Selling, general and administrative
77,028
42,249
207,092
154,335
Impairment of intangible asset
48,700
—
48,700
—
Acquired in-process research and development expense
284,887
—
284,887
—
Total operating expenses
544,658
122,507
927,605
463,849
Operating (loss) income
(92,891)
175,501
469,006
551,475
Other income (expense)
Investment and other income, net
2,430
7,253
21,472
23,752
Inducement expense related to convertible notes
(5,477)
—
(5,477)
—
Contingent liability fair value measurement gain
—
—
—
—
Interest expense
(4,911)
(4,540)
(18,126)
(18,095)
(Loss) income before income tax expense
(100,849)
178,214
466,875
557,132
Income tax expense
40,742
41,202
149,986
113,041
Net (loss) income
$ (141,591)
$ 137,012
$ 316,889
$ 444,091
(Loss) earnings per share
Basic
$ (1.20)
$ 1.08
$ 2.64
$ 3.50
Diluted
$ (1.20)
$ 1.06
$ 2.56
$ 3.43
Weighted average common shares outstanding
Basic
117,672
126,406
119,840
126,827
Diluted
117,672
128,980
123,904
129,424
Halozyme Therapeutics, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 31,
2025
December 31,
2024
ASSETS
Current assets
Cash and cash equivalents
$ 133,820
$ 115,850
Marketable securities, available-for-sale
9,000
480,224
Accounts receivable, net and contract assets
441,273
308,455
Inventories
176,475
141,860
Prepaid expenses and other current assets
64,639
38,951
Total current assets
825,207
1,085,340
Property and equipment, net
82,137
75,035
Prepaid expenses and other assets
53,551
80,596
Goodwill
580,360
416,821
Intangible assets, net
981,467
401,830
Deferred tax assets, net
—
3,855
Restricted cash
2,601
—
Total assets
$ 2,525,323
$ 2,063,477
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$ 20,899
$ 10,249
Accrued expenses
156,193
128,851
Total current liabilities
177,092
139,100
Long-term debt, net
2,142,630
1,505,798
Other long-term liabilities
113,863
54,758
Deferred tax liabilities, net
42,924
—
Total liabilities
2,476,509
1,699,656
Stockholders' equity
Common stock
118
123
Additional paid-in capital
12,002
—
Accumulated other comprehensive (loss) income
(18,092)
3,829
Retained earnings
54,786
359,869
Total stockholders' equity
48,814
363,821
Total liabilities and stockholders' equity
$ 2,525,323
$ 2,063,477
Halozyme Therapeutics, Inc.
GAAP to Non-GAAP Reconciliations
EBITDA
(Unaudited)
(In thousands)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
GAAP Net (Loss) Income
$ (141,591)
$ 137,012
$ 316,889
$ 444,091
Adjustments
Investment and other income, net
(2,430)
(7,320)
(21,474)
(24,356)
Interest expense
4,911
4,540
18,126
18,095
Income tax expense
40,742
41,202
149,986
113,041
Depreciation and amortization
26,680
20,415
88,051
81,312
EBITDA
(71,688)
195,849
551,578
632,183
Adjustments
Transaction costs for business combinations (1)
10,733
—
14,604
—
Intellectual property litigation costs (2)
8,084
—
16,683
—
Severance and share-based compensation acceleration
expense (3)
24,628
—
24,628
—
Impairment of intangible asset
48,700
—
48,700
—
Other one time items
1,447
—
1,447
—
Adjusted EBITDA
$ 21,904
$ 195,849
$ 657,640
$ 632,183
(1)
Amount represents incremental costs including legal and advisory fees incurred in association with the acquisition of Elektrofi, Inc. ("Elektrofi").
(2)
Adjustment relates to litigation costs incurred by Halozyme in connection with Halozyme's patent infringement litigation against Merck Sharp & Dohme Corp. ("Merck"). These charges are excluded because the Company does not believe they are reflective of the Company's ongoing business and operating results.
(3)
Amount represents severance costs and acceleration of unvested equity awards incurred in the Elektrofi acquisition.
Halozyme Therapeutics, Inc.
GAAP to Non-GAAP Reconciliations
Net Income and Diluted EPS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
GAAP Net (Loss) Income
$ (141,591)
$ 137,012
$ 316,889
$ 444,091
Adjustments
Inducement expense related to convertible notes
5,477
—
5,477
—
Share-based compensation
16,571
11,462
51,565
43,385
Amortization of debt discount
1,951
1,845
7,506
7,350
Amortization of intangible assets
23,376
17,762
76,662
71,049
Transaction costs for business combinations (1)
10,733
—
14,604
—
Intellectual property litigation costs (2)
8,084
—
16,683
—
Severance and share-based compensation acceleration
expense (3)
24,628
—
24,628
—
Impairment of intangible asset
48,700
—
48,700
—
Other one time items
1,447
—
1,447
—
Income tax effect of above adjustments (4)
(27,473)
(5,169)
(54,624)
(18,577)
Non-GAAP Net (Loss) Income
$ (28,097)
$ 162,912
$ 509,537
$ 547,298
GAAP Diluted (LPS) EPS
$ (1.20)
$ 1.06
$ 2.56
$ 3.43
Adjustments
Inducement expense related to convertible notes
0.05
—
0.04
—
Share-based compensation
0.14
0.09
0.42
0.34
Amortization of debt discount
0.02
0.01
0.06
0.06
Amortization of intangible assets
0.20
0.14
0.62
0.55
Transaction costs for business combinations (1)
0.09
—
0.12
—
Intellectual property litigation costs (2)
0.07
—
0.13
—
Severance and share-based compensation acceleration
expense (3)
0.21
—
0.20
—
Impairment of intangible asset
0.41
—
0.40
—
Other one time items
0.01
—
0.01
—
Income tax effect of above adjustments (4)
(0.23)
(0.04)
(0.44)
(0.14)
Non-GAAP Diluted (LPS) EPS
$ (0.24)
$ 1.26
$ 4.15
$ 4.23
GAAP Diluted Shares
117,672
128,980
123,904
129,424
Adjustments
Adjustment for dilutive impact of Senior 2028 Convertible
Notes (5)
—
—
(1,018)
(74)
Non-GAAP Diluted Shares
117,672
128,980
122,886
129,350
Dollar amounts, as presented, are rounded. Consequently, totals may not add up.
(1)
Amount represents incremental costs including legal and advisory fees incurred in association with the Elektrofi acquisition.
(2)
Adjustment relates to litigation costs incurred by Halozyme in connection with Halozyme's patent infringement litigation against Merck. These charges are excluded because the Company does not believe they are reflective of the Company's ongoing business and operating results.
(3)
Amount represents severance cost and acceleration of unvested equity awards incurred in the Elektrofi acquisition.
(4)
Adjustments relate to taxes for the reconciling items, as well as excess benefits or tax deficiencies from share-based compensation, and the quarterly impact of other discrete items. Non-GAAP tax rate is impacted by the Acquired IPR&D expense, which is non-tax deductible.
(5)
Adjustment made for the dilutive effect of our Convertible Senior Notes due 2028 when the effect is not the same on a GAAP and Non-GAAP basis for the reporting period.
SOURCE Halozyme Therapeutics, Inc.