Executive Summary

Q3 2025 topline: revenue $394.2M, GAAP diluted EPS $0.49; company raised full‑year 2025 guidance across revenues, product net sales, GAAP NI, EBITDA and Adj. EBITDA .
Results beat S&P Global consensus: revenue $394.2M vs $356.2M est.; Primary EPS $0.651 vs $0.386 est.; Company-reported GAAP diluted EPS was $0.49 (consensus and “Primary EPS” from S&P Global; see Estimates Context) *.
Strength driven by proprietary products (VIVITROL $121.1M; ARISTADA $98.1M; LYBALVI $98.2M) and one-time gross‑to‑net favorability (~$8M VIVITROL; ~$5M ARISTADA) offset by lower manufacturing/royalty revenue as U.S. INVEGA SUSTENNA royalties expired Aug-2024 .
Strategic catalysts: positive Phase 2 NT2 (Vibrance‑2) results for alixorexton (dual primary endpoints met) on Nov 12, and agreement to acquire Avadel (LUMRYZ) to accelerate sleep portfolio; both reinforce 2026+ growth narrative .

What Went Well and What Went Wrong

What Went Well
- Proprietary portfolio execution: “strong revenue growth and robust profitability,” with Q3 proprietary net sales $317.4M (VIVITROL $121.1M; ARISTADA $98.1M; LYBALVI $98.2M) .
- LYBALVI momentum: revenues +32% YoY with 25% TRx growth; management attributed performance to expanded psychiatry sales force and efficacy resonance with prescribers .
- Guidance raised: total 2025 revenue to $1.43–1.49B, GAAP NI to $230–$250M, EBITDA to $270–$290M, Adj. EBITDA to $365–$385M . CFO: “we are raising our full-year 2025 guidance today” .
What Went Wrong
- YoY profitability compression: GAAP NI from continuing ops fell to $82.8M (vs $92.8M) and diluted GAAP EPS to $0.49 (vs $0.56) as royalties declined and R&D/SG&A stepped up .
- Manufacturing & royalty revenues down YoY to $76.8M (vs $105.1M) given the U.S. INVEGA SUSTENNA royalty expiration in Aug-2024 .
- Higher R&D ($81.7M vs $59.9M) and SG&A ($171.8M vs $150.4M) driven by orexin Phase 2 programs, next-gen orexin candidates, and psychiatry commercial investments; R&D and SG&A intensity will persist near term .

Financial Results

Overall P&L (company-reported)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$306.5	$390.7	$394.2
GAAP Net Income ($M)	$22.5	$87.1	$82.8
GAAP Diluted EPS ($)	$0.13	$0.52	$0.49
EBITDA ($M)	$22.8	$101.6	$96.9
Adjusted EBITDA ($M)	$45.6	$126.5	$121.5

YoY snapshot (Q3)

Metric	Q3 2024	Q3 2025
Revenue ($M)	$378.1	$394.2
GAAP Diluted EPS ($)	$0.56	$0.49
GAAP NI from Cont. Ops ($M)	$92.8	$82.8

Product and Revenue Mix

Metric ($M)	Q1 2025	Q2 2025	Q3 2025
Total Proprietary Net Sales	$244.5	$307.2	$317.4
VIVITROL	$101.0	$121.7	$121.1
ARISTADA (incl. INITIO)	$73.5	$101.3	$98.1
LYBALVI	$70.0	$84.3	$98.2
Manufacturing & Royalty	$62.0	$83.4	$76.8
VUMERITY (subcomponent)	$27.8	$39.4	$35.6
Long-acting INVEGA royalties (subcomponent)	$17.7	$30.3	$30.2

Margins (S&P Global)

Metric	Q4 2024	Q1 2025	Q2 2025	Q3 2025
EBITDA Margin %	39.43%*	6.92%*	25.80%*	24.65%*
EBIT Margin %	37.84%*	4.50%*	23.80%*	22.60%*
Net Income Margin %	34.07%*	7.33%*	22.30%*	21.00%*

Values retrieved from S&P Global.

KPI/Drivers (Q3)

KPI	Q3 2025 Detail
LYBALVI performance	Revenue $98.2M; TRx +25% YoY; rev +32% YoY
ARISTADA performance	Revenue $98.1M; +16% YoY
VIVITROL performance	Revenue $121.1M; +7% YoY
Gross-to-net favorability	~$8M VIVITROL; ~$5M ARISTADA (Medicaid utilization adjustments)
Portfolio Q4 net sales outlook	Proprietary portfolio net sales expected $300–$320M in Q4, per CFO

Why results looked like this

Beat vs estimates: higher proprietary product net sales aided by demand and one-time GTN favorability; CFO quantified ~$13M combined VIVITROL/ARISTADA benefit .
YoY headwind: lower manufacturing/royalty revenue tied to U.S. INVEGA SUSTENNA royalty expiry in Aug-2024 (structural decline) .
Expense step-up: R&D (+$21.8M YoY) from Vibrance studies and next-gen orexin programs; SG&A (+$21.4M YoY) from field force expansion and Lybalvi promotion .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues ($B)	FY 2025	$1.34 – $1.43	$1.43 – $1.49	Raised
VIVITROL Net Sales ($M)	FY 2025	$440 – $460	$460 – $470	Raised
ARISTADA Net Sales ($M)	FY 2025	$335 – $355	$360 – $370	Raised
LYBALVI Net Sales ($M)	FY 2025	$320 – $340	$340 – $350	Raised
Cost of Goods Sold ($M)	FY 2025	$185 – $205	$195 – $205	Maintained (upper bound)
R&D Expense ($M)	FY 2025	$305 – $335	$315 – $325	Narrowed
SG&A Expense ($M)	FY 2025	$655 – $685	$675 – $705	Raised
GAAP Net Income ($M)	FY 2025	$175 – $205	$230 – $250	Raised
EBITDA ($M)	FY 2025	$215 – $245	$270 – $290	Raised
Adjusted EBITDA ($M)	FY 2025	$310 – $340	$365 – $385	Raised
Effective Tax Rate	FY 2025	~17%	~17%	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Orexin program (alixorexton)	NT1 Vibrance‑1 enrollment complete; NT2 data fall; IH mid‑2026; building Phase 3 prep	Positive NT1 topline; cognition/fatigue signal; NT2 fall; Phase 3 planning; multi‑dose learnings	NT2 data expected Nov; Phase 3 early 2026; reiterated broad orexin portfolio incl. AUX4510/7290	Advancing toward registrational
Gross‑to‑net/Medicaid	Seasonality; Medicaid ~45–50% mix across brands	~$20M GTN tailwind (Q2) across VIVITROL/ARISTADA	~$13M GTN tailwind (Q3) VIVITROL/ARISTADA; not assuming repeat	Tailwinds, non‑recurring
Royalty mix	VUMERITY + INVEGA royalties noted	Mix still supportive	INVEGA SUSTENNA U.S. royalty expired Aug-2024; pressure on non‑product revenue	Structural headwind
Commercial execution	Psychiatry force expansion planned to drive share of voice	Strong sequential growth; exceeded guidance; demand-led	Continued demand; LYBALVI breadth + depth, GTN ~28% Q3	Improving
Policy/tariffs	U.S.-centric mfg mitigates tariff risk; watch Medicaid/ACA subsidies	—	Similar framing; maintain access focus	Stable
BD/M&A	Open to pipeline-bolstering deals	—	Agreement to acquire Avadel; strategic fit, accretive; debt + cash financing	Transformational

Management Commentary

CEO on quarter and outlook: “Alkermes delivered another successful quarter… raised our financial outlook for 2025… proposed acquisition of Avadel… another potential growth driver” .
CFO on drivers: “one-time gross‑to‑net benefit of approximately $8 million for Vivitrol and approximately $5 million for Aristada… raising our 2025 full‑year guidance” .
CCO on LYBALVI: “expansion of our psychiatry footprint really drove a strong share of voice… TRX growth ~25% YoY; new patient starts up ~16%” .
CEO on orexin program: NT2 data will inform EoP2 and Phase 3; aiming “to be the first to market in narcolepsy type two” .

Q&A Highlights

LYBALVI gross‑to‑net: Q3 GTN ~28%; seasonal uptick expected in Q4; 2026 GTN guide to come in Feb .
NT2 expectations and endpoints: Dual primaries MWT and ESS; focus on safety/tolerability across doses; phase 3 design post NT2 readout .
VIVITROL outlook: Strength in alcohol dependence to continue in Q4; mature-brand dynamics acknowledged .
Safety/ocular AEs and dosing: Visual AEs largely mild/transient in NT1; learnings to reduce variability in cataplexy assay; dose‑response considerations for Phase 3 .
GTN favorability sustainability: Management not assuming further Medicaid mix favorability beyond Q3/Q2 adjustments .

Estimates Context

Metric	S&P Global Consensus	Actual (S&P framework)	Result
Revenue (Q3 2025)	$356.23M*	$394.19M*	Beat
Primary EPS (Q3 2025)	$0.386*	$0.651*	Beat

Values retrieved from S&P Global. Company-reported GAAP diluted EPS for Q3 2025 was $0.49 .

Where estimates may need to adjust

Full‑year raised guidance (revenues, NI, EBITDA, Adj. EBITDA) implies higher run‑rate for proprietary net sales and profitability than previously modeled .
Structural reduction in royalty revenue (post INVEGA SUSTENNA U.S. expiry) should shift models toward higher product mix and expense leverage assumptions .
Positive NT2 Phase 2 topline (Nov 12) supports including dual-indication Phase 3 pacing in models and potential de‑risked probability for alixorexton .

Key Takeaways for Investors

Core brands executing: LYBALVI/ARISTADA/VIVITROL momentum offset royalty step‑down; one‑time GTN helped the beat—normalize GTN in forward quarters .
Guidance raised across the board; Q4 proprietary net sales outlook $300–$320M frames year‑end cadence .
Pipeline de‑risking: NT2 Phase 2 dual primary success (post‑quarter) plus strong NT1 data underpin Phase 3 start in early 2026; consider increasing PoS for alixorexton .
Strategic M&A: Avadel deal adds once‑nightly LUMRYZ and establishes sleep footprint; expected to be accretive at close (1Q26) with debt + cash financing .
Watch list: Medicaid mix/GTN normalization, SG&A trajectory (Avadel transaction costs), Phase 3 design choices (doses/assays), and royalty runoff exposure .
Medium‑term thesis: Higher proprietary mix plus sleep franchise (LUMRYZ + alixorexton) can support revenue growth and margin expansion post‑2025 if execution continues .

Appendix: Additional Context and Disclosures

Balance sheet: Cash, cash equivalents and total investments $1.14B at Sep 30, 2025 (vs $1.05B at Jun 30, 2025) .
Operating expense detail (Q3): R&D $81.7M; SG&A $171.8M (cont. ops) .
Manufacturing/royalty detail (Q3): VUMERITY $35.6M; long‑acting INVEGA royalties $30.2M .
CFO appointment (Sept 12): Joshua Reed named CFO .
Positive Vibrance‑2 topline (Nov 12): Alixorexton met dual primaries in NT2; well‑tolerated; Phase 3 to initiate 1Q26 .

Footnotes:

S&P Global data used for consensus and “Primary EPS” actuals; values retrieved from S&P Global.

Alkermes plc. (ALKS)·Q3 2025 Earnings Summary