Halozyme Therapeutics Inc (HALO) Q4 2025 Earnings Call Highlights: Record Revenue Growth and …

GuruFocus News

Wed, February 18, 2026 at 2:01 PM GMT+9 4 min read

In this article:

HALO

+1.31%

This article first appeared on GuruFocus.

**Total Revenue:** $1.4 billion, a 38% increase year-over-year.

**Royalty Revenue:** $867.8 million, a 52% increase year-over-year.

**Net Income:** $316.9 million, compared to $444.1 million in 2024.

**Adjusted EBITDA:** $657.6 million, compared to $632.2 million in 2024.

**GAAP Diluted EPS:** $2.50, compared to $3.43 in 2024.

**Non-GAAP Diluted EPS:** $4.15, compared to $4.23 in 2024.

**Cost of Sales:** $228.8 million, up from $159.4 million in 2024.

**R&D Expense:** $81.5 million, compared to $79 million in 2024.

**SG&A Expense:** $207.1 million, compared to $154.3 million in 2024.

**Darzalex Sales:** $14.4 billion, 22% operational growth.

**Fesco Sales:** $3 billion, a 48% increase year-over-year.

**Vyguard Sales:** $4.15 billion, a 90% increase year-over-year.

**2026 Revenue Guidance:** $1.71 to $1.81 billion, 22% to 30% growth expected.

**2026 Royalty Revenue Guidance:** $1.13 to $1.17 billion, 30% to 35% growth expected.

**2026 Adjusted EBITDA Guidance:** $1.125 to $1.205 billion.

**2026 Non-GAAP Diluted EPS Guidance:** $7.75 to $8.25.

Warning! GuruFocus has detected 4 Warning Sign with HALO.

Is HALO fairly valued? Test your thesis with our free DCF calculator.

Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Halozyme Therapeutics Inc (NASDAQ:HALO) reported a strong financial performance in 2025, with total revenue growth of 38%, reaching a record $1.4 billion.

The company expanded its portfolio from 2 to 4 subcutaneous drug delivery technologies through strategic acquisitions, enhancing its capabilities and collaboration opportunities.

Royalty revenue increased by 52% to $868 million, driven by the success of enhanced enabled products like Darzalex subcutaneous, Fesco, and Vyguard Hytrulo.

The company signed three new enhanced collaboration and licensing agreements, expanding its reach into obesity and inflammatory bowel disease.

Halozyme Therapeutics Inc (NASDAQ:HALO) strengthened its capital structure by issuing convertible notes and upsizing its revolving credit facility, enhancing liquidity and strategic flexibility.

Negative Points

The company's net income for 2025 was impacted by a $285 million acquired IPR&D expense related to the Surf Bio acquisition.

GAAP diluted EPS decreased from $3.43 in 2024 to $2.50 in 2025, reflecting the unfavorable impact of the acquired IPR&D expense.

SG&A expenses increased due to litigation expenses, consulting and professional services, and transaction-related costs.

The company faces potential challenges with the expiration of its licensing agreement with Johnson & Johnson in 2032, requiring renegotiation to continue the partnership.

There is uncertainty regarding the regulatory path for converting approved ADCs to subcutaneous delivery with Enhance, which may require additional efficacy and safety trials.

 






Story continues  

Q & A Highlights

Q: Can you elaborate on the potential to extend the deal with J&J on Darzalex and what happens after the expiry of the enhanced collaboration? A: Helen Torley, President and CEO, explained that the licensing agreement with J&J ends in 2032. However, due to the importance of the brand and Halozyme’s role in its success, they expect to enter discussions with J&J to extend the agreement and continue supplying API. They do not anticipate J&J seeking another source of API.

Q: Regarding the ADC strategy, how do you view the regulatory path for improving product profiles of approved therapies versus not yet approved molecules? A: Chris Wahl, Chief Scientific Officer, stated that for converting from IV to subQ, they expect a traditional approach with PK non-inferiority studies. For unapproved products seeking additional benefits, efficacy and safety would need to be proven through appropriate trials. ADCs are often used in combo therapy, and moving them to subQ could reduce infusion center time.

Q: How might the outcome of the IPR filed against Alteegen influence the Merck District court litigation? A: Helen Torley clarified that the IPR against Alteegen is separate from the infringement case against Merck. The district court case is ongoing, with both parties expected to appear in June. The IPR is distinct from the district court case.

Q: Can you provide an update on the progress towards the clinic with Hypercon products and what remains to be done? A: Helen Torley mentioned that they are supporting two partners to advance to phase 1 clinical testing in 2026. Steps include clinical scale-up batches and filing IND packages. Updates will depend on partners, and clinical trials may be posted on clinicaltrials.gov.

Q: What are your expectations for new partnerships in the auto injector part of the business, and how will sales be reported? A: Helen Torley noted interest in the high-volume auto-injector from current and new partners. Nicole LaBrosse, CFO, explained that product sales from selling devices will be recognized similarly to API sales, and royalties will be recognized as royalty revenues.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Terms and Privacy Policy

Privacy Dashboard

More Info