Jazz Pharmaceuticals Announces Full Year and Fourth Quarter 2025 Financial Results and Provides 2026 Financial Guidance USA - English USA - English

– Record total revenues of $4.3 billion in 2025 (+5% YoY) and $1.2 billion (+10% YoY) in 4Q25 –

– Expect to complete sBLA submission in 1Q26 under RTOR for zanidatamab in HER2+ 1L GEA –

– Xywav ® achieved $1.7 billion in revenue and 12% YoY growth in 2025 –

– Epidiolex ® achieved $1.1 billion in revenue and 9% YoY growth in 2025 –

– Strong Modeyso™ launch with $37 million in revenue in first full quarter on market –

– Expect 2026 total revenues of $4.25 to $4.50 billion –

DUBLIN, Feb. 24, 2026 /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced financial results for the full year and fourth quarter of 2025 and provided financial guidance for 2026.

"2025 was an exceptional year for Jazz, representing our 21 st consecutive year of top-line growth and underscoring our commitment to operational excellence as we deliver meaningful innovation for patients," said Renee Gala, president and chief executive officer of Jazz Pharmaceuticals. "In the fourth quarter, our disciplined execution resulted in $1.2 billion in revenue, reflecting 10% year-over-year growth and our highest revenue quarter ever. This performance provides us with strong momentum into 2026, as we prepare for the potential launch of zanidatamab in GEA, sustain launch execution for Modeyso and Zepzelca ®, and reinforce the differentiated profiles of Epidiolex and Xywav as the leading branded treatments for epilepsy and narcolepsy, respectively. In parallel, we continue to advance our pipeline and pursue a corporate development strategy aligned with our rare disease focus that supports durable growth and long-term value creation for patients and shareholders."

"Jazz had a transformative year across our R&D pipeline, led by the HERIZON-GEA-01 data, which we believe firmly positions zanidatamab as the HER2-targeted agent of choice, with the potential to reshape first-line treatment for HER2+ metastatic GEA patients," said Rob Iannone, M.D., M.S.C.E., executive vice president, global head of research and development, and chief medical officer of Jazz Pharmaceuticals. "We expect to build on this progress in 2026, as these results not only highlight zanidatamab's potential to help patients with GEA, but also de-risk our clinical trials in additional indications, including HER2+ metastatic breast cancer."

Key 2025 Highlights

____________________________

Rare sleep franchise consists of Xywav, Xyrem ® and high-sodium oxybate authorized generic (AG) royalties.

Business Updates

Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution:

Epidiolex/Epidyolex (cannabidiol):

Ziihera ® (zanidatamab-hrii):

Modeyso (dordaviprone):

Zepzelca (lurbinectedin):

Financial Highlights

Three Months Ended

December 31,

Year Ended

December 31,

(In thousands, except per share amounts)

2025

2024

2025

2024

Total revenues

$ 1,197,926

$ 1,088,173

$ 4,267,586

$ 4,068,950

GAAP net income (loss)

$ 203,451

$ 191,115

$ (356,148)

$ 560,120

Non-GAAP adjusted net income 1

$ 420,888

$ 400,525

$ 521,924

$ 1,351,970

GAAP earnings (loss) per share

$ 3.21

$ 3.11

$ (5.84)

$ 8.65

Non-GAAP adjusted earnings per share 1

$ 6.64

$ 6.51

$ 8.38

$ 20.65

____________________________

Commencing with the first quarter of 2025, we are no longer including an adjustment for non-cash interest expense in the Company's non-GAAP adjusted financial measures and for the purposes of comparability, non-GAAP adjusted financial measures for the 2024 periods have been updated to reflect this change. See "Non-GAAP Financial Measures" below.

Reconciliations of applicable GAAP reported to non-GAAP adjusted information are included at the end of this press release.

Total Revenues

Three Months Ended

December 31,

Year Ended

December 31,

(In thousands)

2025

2024

2025

2024

Xywav

$ 465,451

$ 400,964

$ 1,656,986

$ 1,473,202

Xyrem

37,781

49,290

146,034

233,816

Epidiolex/Epidyolex

287,122

275,047

1,059,197

972,423

Sativex

1,503

5,173

16,277

18,877

Total Neuroscience

791,857

730,474

2,878,494

2,698,318

Rylaze/Enrylaze

108,160

101,487

402,920

410,846

Zepzelca

90,440

78,328

307,309

320,318

Defitelio/defibrotide

58,872

57,650

199,392

216,565

Vyxeos

34,731

53,247

146,709

162,595

Modeyso

36,541

—

48,043

—

Ziihera

8,538

1,051

24,810

1,051

Total Oncology

337,282

291,763

1,129,183

1,111,375

Other

3,309

2,974

14,172

11,471

Product sales, net

1,132,448

1,025,211

4,021,849

3,821,164

High-sodium oxybate AG royalty revenue

55,696

55,307

211,725

217,575

Other royalty and contract revenues

9,782

7,655

34,012

30,211

Total revenues

$ 1,197,926

$ 1,088,173

$ 4,267,586

$ 4,068,950

Total revenues increased 5% in 2025 and 10% in 4Q25 compared to the same periods in 2024.

Total neuroscience revenue, including high-sodium oxybate AG royalty revenue, was $3.1 billion in 2025, an increase of 6% compared to $2.9 billion in 2024, and $848 million in 4Q25, an increase of 8% compared to $786 million in 4Q24. The increase in both periods was primarily due to higher Xywav and Epidiolex/Epidyolex net product sales, partially offset by decreased Xyrem net product sales.

Oncology net product sales were $1.1 billion in 2025, an increase of 2% compared to 2024, and $337 million in 4Q25, an increase of 16% compared to $292 million in 4Q24, primarily due to the inclusion of Modeyso and Ziihera net product sales in both periods. The increase in 4Q25 also included higher Zepzelca net product sales, partially offset by decreased Vyxeos ® net product sales.

Operating Expenses and Income Tax (Benefit) Expense

Three Months Ended

December 31,

Year Ended

December 31,

(In thousands, except percentages)

2025

2024

2025

2024

GAAP:

Cost of product sales

$ 153,528

$ 128,713

$ 503,296

$ 445,713

Gross margin on product sales, net

86.4 %

87.4 %

87.5 %

88.3 %

Selling, general and administrative

$ 406,212

$ 369,287

$ 1,809,271

$ 1,385,294

% of total revenues

33.9 %

42.4 %

34.0 %

Research and development

$ 213,909

$ 240,500

$ 782,736

$ 884,000

% of total revenues

17.9 %

22.1 %

18.3 %

21.7 %

Acquired in-process research and development

$ —

$ 947,862

$ 10,000

Income tax (benefit) expense

$ 4,963

$ (57,912)

$ (272,443)

$ (91,429)

Effective tax rate

2.4 %

(43.5) %

43.4 %

(19.4) %

Three Months Ended

December 31,

Year Ended

December 31,

(In thousands, except percentages)

2025

2024

2025

2024

Non-GAAP adjusted:

Cost of product sales

$ 106,841

$ 86,492

$ 336,016

$ 295,897

Gross margin on product sales, net

90.6 %

91.6 %

92.3 %

Selling, general and administrative

$ 360,533

$ 323,167

$ 1,603,255

$ 1,226,724

% of total revenues

30.1 %

29.7 %

37.6 %

30.1 %

Research and development

$ 189,915

$ 220,857

$ 686,645

$ 809,327

% of total revenues

15.9 %

20.3 %

16.1 %

19.9 %

Acquired in-process research and development

$ —

$ 947,862

$ 10,000

Income tax (benefit) expense

$ 73,628

$ (435)

$ (26,467)

$ 127,093

Effective tax rate

14.9 %

(0.1) %

(5.3) %

8.6 %

Changes in operating expenses and income tax (benefit) expense in 2025 and 4Q25 over the prior year periods are primarily due to the following:

Cash Flow and Balance Sheet

As of December 31, 2025, cash, cash equivalents and investments were $2.4 billion, and the outstanding principal balance of the Company's long-term debt was $5.4 billion. In addition, the Company had undrawn borrowing capacity under a revolving credit facility of $885 million. For the year ended December 31, 2025, the Company generated $1.4 billion of cash from operations reflecting strong business performance and continued financial discipline.

2026 Financial Guidance

Jazz Pharmaceutical's full year 2026 financial guidance is as follows:

(In millions)

Guidance

Total Revenues

$4,250 - $4,500

(In millions, except percentages)

GAAP

Non-GAAP

Gross margin %

89% - 90%

90% - 91% 1

SG&A expenses

$1,424 - $1,497

$1,260 - $1,320 1

R&D expenses

$811 - $867

$725 - $775 1

Effective tax rate

0% - 10%

11.5% - 13.5% 1

Weighted-average ordinary shares outstanding 2

65 - 66

___________________________

See "Non-GAAP Financial Measures" below. Reconciliations of non-GAAP adjusted guidance measures are included in the table titled "Reconciliation of 2026 GAAP to Non-GAAP Guidance Measures".

Assumes inclusion of shares outstanding in relation to the 2.000% exchangeable senior notes due 2026, or the 2026 Notes, and the 3.125% exchangeable senior notes due 2030, or the 2030 Notes, which we refer to collectively as the Exchangeable Senior Notes, given the Company's share price exceeds the conversion prices of the Exchangeable Senior Notes.

Conference Call Details

Jazz Pharmaceuticals will host an investor conference call and live audio webcast today at 4:30 p.m. ET (9:30 p.m. GMT) to provide a business and financial update and discuss its 2025 full year and 4Q25 results and 2026 guidance.

Interested parties may register for the call here or via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com. To ensure a timely connection, it is recommended that participants register at least 15 minutes prior to the scheduled webcast.

A replay of the webcast will be available via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com.

About Jazz Pharmaceuticals

Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharma company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with rare disease — often with limited or no therapeutic options. We have a diverse portfolio of medicines, including leading therapies addressing epilepsies, cancers and sleep disorders. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics. Jazz is headquartered in Dublin, Ireland with research and development laboratories, manufacturing facilities and employees in multiple countries committed to serving patients worldwide. Please visit www.jazzpharmaceuticals.com for more information.

Non-GAAP Financial Measures

To supplement Jazz Pharmaceuticals' financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP (also referred to as adjusted or non-GAAP adjusted) financial measures in this press release and the accompanying tables. In particular, the Company presents non-GAAP adjusted net income (and the related per share measure) and its line-item components, as well as certain non-GAAP adjusted financial measures derived therefrom, including non-GAAP adjusted gross margin percentage and non-GAAP adjusted effective tax rate. Non-GAAP adjusted net income (and the related per share measure) and its line-item components exclude from GAAP reported net income (loss) (and the related per share measure) and its line-item components certain items, as detailed in the reconciliation tables that follow, and in the case of non-GAAP adjusted net income (and the related per share measure), adjust for the income tax effect of the non-GAAP adjustments. In this regard, the components of non-GAAP adjusted net income, including non-GAAP adjusted cost of product sales, SG&A expenses and R&D expenses, are income statement line items prepared on the same basis as, and therefore components of, the overall non-GAAP adjusted net income measure.

The Company believes that each of these non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors and analysts and that each of these non-GAAP financial measures, when considered together with the Company's financial information prepared in accordance with GAAP, can enhance investors' and analysts' ability to meaningfully compare the Company's results from period to period, to its forward-looking guidance, and to identify operating trends in the Company's business. In addition, these non-GAAP financial measures are regularly used by investors and analysts to model and track the Company's financial performance. Jazz Pharmaceuticals' management also regularly uses these non-GAAP financial measures internally to understand, manage and evaluate the Company's business and to make operating decisions, and compensation of executives is based in part on certain of these non-GAAP financial measures. Because these non-GAAP financial measures are important internal measurements for Jazz Pharmaceuticals' management, the Company also believes that these non-GAAP financial measures are useful to investors and analysts since these measures allow for greater transparency with respect to key financial metrics the Company uses in assessing its own operating performance and making operating decisions. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures; should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP; have no standardized meaning prescribed by GAAP; and are not prepared under any comprehensive set of accounting rules or principles in the reconciliation tables that follow. 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 has ceased, and may in the future cease, to exclude items that it has historically excluded for purposes of its non-GAAP financial measures. In this regard, commencing with the first quarter of 2025, the Company is no longer including an adjustment for non-cash interest expense in the Company's non-GAAP adjusted financial measures. For purposes of comparability, non-GAAP adjusted financial measures for the 2024 periods have been updated to reflect this change. Likewise, the Company may determine to modify the nature of its adjustments to arrive at its non-GAAP financial measures. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measures as used by Jazz Pharmaceuticals in this press release and the accompanying tables have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, statements related to: the Company's growth prospects and future financial and operating results, including the Company's 2026 financial guidance and the Company's expectations related thereto, including with respect to anticipated catalysts; anticipated multiple near-term pipeline catalysts that each represent significant opportunities to drive greater revenue and create long-term value; the Company's advancement of pipeline programs and the timing of development activities, regulatory activities, approvals, and submissions related thereto, including the timing of the completion of the submission of the sBLA for, and launch and approval of, zanidatamab in 1L GEA; planned or anticipated clinical trial events, including with respect to initiations, enrollment and data read-outs, and the anticipated timing thereof; and the Company's development, regulatory and commercialization strategy; the Company's expectations with respect to its products and product candidates and the potential of the Company's products and product candidates and the potential regulatory path related thereto; including zanidatamab's potential to be the HER2-targeted agent of choice in HER2+ 1L GEA, regardless of PD-L1 status, and to reshape first-line treatment for HER2+ metastatic GEA patients; the Company's capital allocation and corporate development strategy; the potential successful future development, manufacturing, regulatory and commercialization activities; the Company's ability to realize the commercial potential of its products; the Company's net product sales and goals for net product sales from new and acquired products; the Company's views and expectations relating to its patent portfolio, including with respect to expected patent protection, as well as expectations with respect to exclusivity; the Company's clinical trials confirming clinical benefit or enabling regulatory submissions, including the potential of the ongoing Phase 3 ACTION trial to confirm clinical benefit of Modeyso in recurrent H3 K27M-mutant diffuse glioma and extend to use in first-line patients; and other statements that are not historical facts. These forward-looking statements are based on the Company's current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties.

Actual results and the timing of events could differ materially from those anticipated in such forward- looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: maintaining or increasing sales of, and revenue from, Xywav, Epidiolex/Epidyolex, Ziihera, Modeyso, Zepzelca and other lead marketed products; effectively launching and commercializing the Company's other products and product candidates; the successful completion of development and regulatory activities with respect to the Company's product candidates; obtaining and maintaining adequate coverage and reimbursement for the Company's products; the time-consuming and uncertain regulatory approval process, including the risk that the Company's current and/or planned regulatory submissions may not be submitted, accepted or approved by applicable regulatory authorities in a timely manner or at all, including the risk that the Company's sBLA submission for zanidatamab in 1L GEA may not be completed or, if completed, approved in a timely manner or at all; the costly and time-consuming pharmaceutical product development process and the uncertainty of clinical success, including risks related to failure or delays in successfully initiating or completing clinical trials and assessing patients; global economic, financial, and healthcare system disruptions and the current and potential future negative impacts to the Company's business operations and financial results; protecting and enhancing the Company's intellectual property rights and the Company's commercial success being dependent upon the Company obtaining, maintaining and defending intellectual property protection and exclusivity for its products and product candidates; delays or problems in the supply or manufacture of the Company's products and product candidates; complying with applicable U.S. and non-U.S. regulatory requirements, including those governing the research, development, manufacturing and distribution of controlled substances; government investigations, legal proceedings and other actions; identifying and consummating corporate development transactions, financing these transactions and successfully integrating acquired products, product candidates and businesses; the Company's ability to realize the anticipated benefits of its collaborations and license agreements with third parties; the sufficiency of the Company's cash flows and capital resources; the Company's ability to achieve targeted or expected future financial performance and results and the uncertainty of future tax, accounting and other provisions and estimates; the Company's ability to meet its projected long-term goals and objectives, in the time periods that the Company anticipates, or at all, and the inherent uncertainty and significant judgments and assumptions underlying the Company's long-term goals and objectives; fluctuations in the market price and trading volume of the Company's ordinary shares; and other risks and uncertainties affecting the Company, including those described from time to time under the caption "Risk Factors" and elsewhere in the Company's Securities and Exchange Commission filings and reports, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and future filings and reports by the Company. Other risks and uncertainties of which the Company is not currently aware may also affect the Company's forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated.

JAZZ PHARMACEUTICALS PLC

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Revenues:

Product sales, net

$ 1,132,448

$ 1,025,211

$ 4,021,849

$ 3,821,164

Royalties and contract revenues

65,478

62,962

245,737

247,786

Total revenues

1,197,926

1,088,173

4,267,586

4,068,950

Operating expenses:

Cost of product sales (excluding amortization of

acquired developed technologies)

153,528

128,713

503,296

445,713

Selling, general and administrative

406,212

369,287

1,809,271

1,385,294

Research and development

213,909

240,500

782,736

884,000

Intangible asset amortization

169,742

158,903

654,661

627,313

Acquired in-process research and development

—

947,862

10,000

Total operating expenses

943,391

897,403

4,697,826

3,352,320

Income (loss) from operations

254,535

190,770

(430,240)

716,630

Interest expense, net

(45,406)

(51,256)

(195,051)

(238,097)

Foreign exchange loss

(658)

(6,295)

(2,568)

(8,182)

Income (loss) before income tax expense (benefit) and

equity in loss of investees

208,471

133,219

(627,859)

470,351

Income tax expense (benefit)

4,963

(57,912)

(272,443)

(91,429)

Equity in loss of investees

732

1,660

Net income (loss)

$ 203,451

$ 191,115

$ (356,148)

$ 560,120

Net income (loss) per ordinary share:

Basic

$ 3.33

$ 3.16

$ (5.84)

$ 9.06

Diluted

$ 3.21

$ 3.11

$ (5.84)

$ 8.65

Weighted-average ordinary shares used in per share

calculations - basic

61,058

60,538

60,981

61,838

Weighted-average ordinary shares used in per share

calculations - diluted

63,433

61,503

60,981

66,007

JAZZ PHARMACEUTICALS PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

December 31,

2025

December 31,

2024

ASSETS

Current assets:

Cash and cash equivalents

$ 1,391,899

$ 2,412,864

Investments

1,050,000

580,000

Accounts receivable, net of allowances

830,747

716,765

Inventories

416,962

480,445

Prepaid expenses

152,481

177,411

Other current assets

323,954

261,543

Total current assets

4,166,043

4,629,028

Property, plant and equipment, net

199,857

173,413

Operating lease assets

58,880

53,582

Intangible assets, net

4,429,510

4,755,695

Goodwill

1,829,340

1,716,323

Deferred tax assets, net

869,130

560,245

Deferred financing costs

7,550

9,489

Other non-current assets

99,030

114,482

Total assets

$ 11,659,340

$ 12,012,257

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 122,061

$ 77,869

Accrued liabilities

1,034,170

910,947

Current portion of long-term debt

1,029,903

31,000

Income taxes payable

56,387

18,757

Total current liabilities

2,242,521

1,038,573

Long-term debt, less current portion

4,328,354

6,077,640

Operating lease liabilities, less current portion

50,892

38,938

Deferred tax liabilities, net

594,470

676,736

Other non-current liabilities

124,519

86,614

Total shareholders' equity

4,318,584

4,093,756

Total liabilities and shareholders' equity

$ 11,659,340

$ 12,012,257

JAZZ PHARMACEUTICALS PLC

SUMMARY OF CASH FLOWS

(In thousands)

(Unaudited)

Year Ended

December 31,

2025

2024

Net cash provided by operating activities

$ 1,355,773

$ 1,395,908

Net cash used in investing activities

(1,509,913)

(508,195)

Net cash provided by (used in) financing activities

(873,380)

20,516

Effect of exchange rates on cash and cash equivalents

6,555

(1,675)

Net increase (decrease) in cash and cash equivalents

$ (1,020,965)

$ 906,554

JAZZ PHARMACEUTICALS PLC

RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Net

Income

Diluted

Earnings

Per Share

(EPS)

Net

Income

Diluted

EPS

Net

Income

(Loss)

Diluted

EPS/(Loss)

Per Share

(LPS)

Net

Income

Diluted

EPS 1

GAAP reported

$ 203,451

$ 3.21

$ 191,115

$ 3.11

$ (356,148)

$ (5.84)

$ 560,120

$ 8.65

Intangible asset

amortization

169,742

2.68

158,903

2.58

654,661

10.51

627,313

9.50

Share-based

compensation expense

70,854

1.12

70,190

1.14

291,133

4.67

248,045

3.76

Acquisition accounting

inventory fair value step-up

40,604

0.64

37,794

0.61

147,948

2.38

135,014

2.05

Integration related

expenses 2

4,902

0.08

—

30,306

0.49

—

Income tax effect of

above adjustments

(68,665)

(1.09)

(57,477)

(0.93)

(245,976)

(3.95)

(218,522)

(3.31)

Effect of potentially

dilutive ordinary shares

on non-GAAP adjusted EPS

—

0.12

—

Non-GAAP adjusted

$ 420,888

$ 6.64

$ 400,525

$ 6.51

$ 521,924

$ 8.38

$ 1,351,970

$ 20.65

Weighted-average

ordinary shares used in

diluted per share

calculations - GAAP 1

63,433

61,503

60,981

66,007

Dilutive effect of

employee equity

incentive and purchase

plans

—

1,304

—

Dilutive effect of the 2030

Notes

—

Weighted-average ordinary

shares used in diluted per

share calculations - non-GAAP 1

63,433

61,503

62,288

66,007

________________________________________________

Explanation of Adjustments and Certain Line Items:

Diluted EPS was calculated using the "if-converted" method in relation to the 2026 Notes. In July 2024, we made the irrevocable election to net share settle the 2026 Notes. As a result, the assumed issuance of ordinary shares upon exchange of the 2026 Notes has only been included in the calculation of diluted EPS, on a GAAP and non-GAAP adjusted basis, up to the date the irrevocable election was made. Net income per diluted share, on a GAAP and on a non-GAAP adjusted basis, for the year ended December 31, 2024, included 3.5 million shares related to the assumed conversion of the 2026 Notes and the associated interest expense, net of tax, add-back to GAAP reported net income and non-GAAP adjusted net income of $11 million.

Integration related expenses with respect to the Chimerix acquisition.

JAZZ PHARMACEUTICALS PLC

RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION - CERTAIN LINE ITEMS

(In thousands, except percentages)

(Unaudited)

Three months ended December 31, 2025

Cost of

product

sales

Gross

margin

SG&A

R&D

Intangible

asset

amortization

Interest

expense,

net

Income tax

expense

Effective

tax rate

GAAP Reported

$ 153,528

86.4 %

$ 406,212

$ 213,909

$ 169,742

$ 45,406

$ 4,963

2.4 %

Non-GAAP Adjustments:

Intangible asset amortization

—

(169,742)

—

Share-based compensation expense

(5,068)

0.5

(42,654)

(23,132)

—

Acquisition accounting inventory fair

value step-up

(40,604)

3.7

—

Integration related expenses

(1,015)

—

(3,025)

(862)

—

Income tax effect of above adjustments

—

68,665

12.5

Total of non-GAAP adjustments

(46,687)

4.2

(45,679)

(23,994)

(169,742)

—

68,665

12.5

Non-GAAP Adjusted

$ 106,841

90.6 %

$ 360,533

$ 189,915

$ —

$ 45,406

$ 73,628

14.9 %

Three months ended December 31, 2024

Cost of

product

sales

Gross

margin

SG&A

R&D

Intangible

asset

amortization

Interest

expense,

net

Income tax

benefit

Effective

tax rate

GAAP Reported

$ 128,713

87.4 %

$ 369,287

$ 240,500

$ 158,903

$ 51,256

$ (57,912)

(43.5) %

Non-GAAP Adjustments:

Intangible asset amortization

—

(158,903)

—

Share-based compensation expense

(4,427)

0.5

(46,120)

(19,643)

—

Acquisition accounting inventory fair

value step-up

(37,794)

3.7

—

Income tax effect of above adjustments

—

57,477

43.4

Total of non-GAAP adjustments

(42,221)

4.2

(46,120)

(19,643)

(158,903)

—

57,477

43.4

Non-GAAP Adjusted

$ 86,492

91.6 %

$ 323,167

$ 220,857

$ —

$ 51,256

$ (435)

(0.1) %

JAZZ PHARMACEUTICALS PLC

RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION - CERTAIN LINE ITEMS

(In thousands, except percentages)

(Unaudited)

Year ended December 31, 2025

Cost of

product

sales

Gross

margin

SG&A

R&D

Intangible

asset

amortization

Acquired

IPR&D

Interest

expense,

net

Income tax

benefit

Effective

tax rate

GAAP Reported

$ 503,296

87.5 %

$ 1,809,271

$ 782,736

$ 654,661

$ 947,862

$ 195,051

$ (272,443)

43.4 %

Non-GAAP Adjustments:

Intangible asset amortization

—

(654,661)

—

Share-based compensation expense

(18,031)

0.5

(186,622)

(86,480)

—

Integration related expenses

(1,301)

—

(19,394)

(9,611)

—

Acquisition accounting inventory fair

value step-up

(147,948)

3.6

—

Income tax effect of above adjustments

—

245,976

(48.7)

Total of non-GAAP adjustments

(167,280)

4.1

(206,016)

(96,091)

(654,661)

—

245,976

(48.7)

Non-GAAP Adjusted

$ 336,016

91.6 %

$ 1,603,255

$ 686,645

$ —

$ 947,862

$ 195,051

$ (26,467)

(5.3) %

Year ended December 31, 2024

Cost of

product

sales

Gross

margin

SG&A

R&D

Intangible

asset

amortization

Acquired

IPR&D

Interest

expense,

net

Income tax

expense

(benefit)

Effective

tax rate

GAAP Reported

$ 445,713

88.3 %

$ 1,385,294

$ 884,000

$ 627,313

$ 10,000

$ 238,097

$ (91,429)

(19.4) %

Non-GAAP Adjustments:

Intangible asset amortization

—

(627,313)

—

Share-based compensation expense

(14,802)

0.5

(158,570)

(74,673)

—

Acquisition accounting inventory fair

value step-up

(135,014)

3.5

—

Income tax effect of above adjustments

—

218,522

28.0

Total of non-GAAP adjustments

(149,816)

4.0

(158,570)

(74,673)

(627,313)

—

218,522

28.0

Non-GAAP Adjusted

$ 295,897

92.3 %

$ 1,226,724

$ 809,327

$ —

$ 10,000

$ 238,097

$ 127,093

8.6 %

JAZZ PHARMACEUTICALS PLC

RECONCILIATION OF 2026 GAAP TO NON-GAAP GUIDANCE MEASURES

Projected Range

(In millions, except percentages)

Low

High

GAAP gross margin on total revenues

89 %

90 %

Acquisition accounting inventory fair value step-up

1 %

Non-GAAP gross margin on total revenues

90 %

91 %

GAAP SG&A expenses

$ 1,424

$ 1,497

Share-based compensation expense

(164)

(177)

Non-GAAP SG&A expenses

$ 1,260

$ 1,320

GAAP R&D expenses

$ 811

$ 867

Share-based compensation expense

(86)

(92)

Non-GAAP R&D expenses

$ 725

$ 775

GAAP effective tax rate

0 %

10 %

Income tax effect of GAAP to non-GAAP reconciling items

11.5 %

3.5 %

Non-GAAP effective tax rate

11.5 %

13.5 %

Contacts:

Investors:

[email protected]

Ireland +353 1 634 3211

U.S. +1 650 496 2717

Media:

[email protected]

Ireland +353 1 637 2141

U.S. +1 215 867 4948

SOURCE Jazz Pharmaceuticals plc