Executive Summary

Q2 2025 delivered strong top-line and profitability: total revenue $70.0m (+22% YoY) and diluted EPS $0.16 vs $0.01 YoY; gross margin expanded to ~90% on lower Otsuka inventory sales mix .
Revenue and EPS beat Street: revenue $70.0m vs $63.8m consensus, EPS $0.16 vs $0.147 consensus; EBITDA tracked in line vs consensus, reflecting disciplined OpEx following 2024 restructuring . Values retrieved from S&P Global*.
Guidance raised: FY25 total revenue $260–$270m (prior $250–$260m) and net product sales $250–$260m (prior $240–$250m), citing momentum in LUPKYNIS and supportive ACR LN guidelines .
Capital allocation: Board expanded buyback by $150m; company repurchased 18.3m shares for $138.4m since program launch, supported by operating cash flow and cash/investments of $315.1m .

What Went Well and What Went Wrong

What Went Well

LUPKYNIS net product sales rose to $66.6m (+21% YoY), driving total revenue growth and higher gross margin; management attributed strength to LN market penetration and prescriber uptick in rheumatology and hospital settings .
Structural efficiency: total operating expenses fell to $49.9m from $58.7m YoY; cash flow from operations reached $45.5m for H1, or $57.0m excluding restructuring payments .
Pipeline momentum: positive AUR200 Phase 1 SAD results with robust, durable immunoglobulin reductions and path to once‑monthly dosing; multiple indications targeted for initiation in H2 2025 .

Quote: “We continue to see solid growth for LUPKYNIS… and are excited about the positive results from our Phase 1 study of aritinercept… We look forward to initiating clinical studies in at least two autoimmune diseases in the second half of this year.”

What Went Wrong

Other expense increased (non‑cash FX remeasurement of Swiss franc lease liability and deferred comp changes), partially offsetting OpEx reductions .
FY25 company guidance remains below current Street revenue consensus, implying potential downward estimate revisions despite a guidance raise . Values retrieved from S&P Global*.
Limited quantitative disclosure on quarterly drivers (e.g., new patient starts/PSFs) and no OpEx guidance; management reiterated historical summer softness and declined to bracket R&D spend as AUR200 advances .

Financial Results

Quarterly Comparison (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenue ($USD)	$59.9m	$62.5m	$70.0m
Net Product Sales ($USD)	$57.6m	$60.0m	$66.6m
License/Collab/Royalty ($USD)	$2.3m	$2.5m	$3.4m
Diluted EPS ($)	$0.01	$0.16	$0.16
Cost of Revenue ($USD)	$5.6m	$8.6m	$7.1m
Gross Margin %	90.7%	86%	90%
Total Operating Expenses ($USD)	$61.5m	$40.6m	$49.9m
Operating Income ($USD)	$(1.7)m	$21.8m	$20.1m
Operating Margin %	(2.8)%	35.0%	28.7%

Notes:

Gross margin % for Q4 2024 derived from reported revenue and cost of revenue .

YoY Comparison

Metric	Q2 2024	Q2 2025
Total Revenue ($USD)	$57.2m	$70.0m (+22%)
Net Product Sales ($USD)	$55.0m	$66.6m (+21%)
Diluted EPS ($)	$0.01	$0.16

Segment/Revenue Breakdown

Revenue Component	Q4 2024	Q1 2025	Q2 2025
LUPKYNIS Net Product Sales ($USD)	$57.6m	$60.0m	$66.6m
License, Collaboration & Royalty ($USD)	$2.3m	$2.5m	$3.4m

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Gross Margin %	90.7%	86%	90%
Cash, Cash Equivalents & Investments ($USD)	$358.5m	$312.9m	$315.1m
Cash Flow from Operations ($USD)	$30.1m (Q4)	$1.3m (Q1)	$45.5m (H1)
Share Repurchases (shares/$)	6.1m / $41.0m (FY24)	5.8m / $47.4m (Q1)	11.2m / $90.8m (H1)

Versus Estimates (Q2 2025)

Metric	Consensus	Actual	Surprise
Revenue ($USD)	$63.8m*	$70.0m	+$6.2m; +9.7%
Diluted EPS ($)	$0.147*	$0.16	+$0.013; +8.8%
EBITDA ($USD)	$24.8m*	$25.1m*	+$0.3m; +1.0%

Values retrieved from S&P Global*.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD)	FY 2025	$250m–$260m	$260m–$270m	Raised
Net Product Sales ($USD)	FY 2025	$240m–$250m	$250m–$260m	Raised
OpEx / R&D / Tax Rate	FY 2025	Not provided	Not provided (no OpEx guidance)	Maintained (no guidance)
Capital Returns	Ongoing	$150m buyback authorization (prior)	+$150m additional authorization	Increased authorization

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Product performance (LUPKYNIS)	Strong FY24 growth; FY25 guide $250–$260m revenue	Emphasis on rheumatology education; reiteration of FY25 guide	Q2 beat; guidance raised; rheumatology/hospital uptake improving	Improving uptake; raised outlook
R&D execution (AUR200/aritinercept)	Phase 1 initiated; once‑monthly PK/PD potential	SAD results planned for late Q2	Positive SAD results; plan to start ≥2 indications in H2 2025	Advancing; positive data
Regulatory/legal (ANDA/Exclusivity)	Ongoing ANDA litigation noted at high level	Maintaining IP defense; 30‑month stay acknowledged	No changes; patents to 2037; pediatric work not extending exclusivity window	Stable; continued defense
Supply chain / tariffs / macro	Not highlighted	Minimal tariff impact; API Switzerland; multi‑year US inventory; balanced payer mix	No new issues disclosed	Stable; low risk
Capital allocation (Buybacks)	FY24 buybacks executed	Ongoing buybacks funded by cash and ops cash flow	Authorization increased by $150m; 18.3m shares repurchased since 2024 start	More aggressive
OpEx discipline	FY24 restructuring savings	SG&A down; target ~$40m cash OpEx savings	OpEx down YoY; no explicit forward OpEx guidance	Efficient; selective R&D ramp

Management Commentary

“We continued to achieve strong growth in total revenue and net product sales… we are increasing our full‑year 2025 total revenue guidance… and our net product sales guidance…” .
“For the three months ended June 30, 2025, net income was $21.5 million, or $0.16 EPS… gross margin was 90%… total operating expenses were $49.9 million… primarily due to lower personnel expenses following 2024 restructuring” .
“We’ve seen a really strong uptick in rheumatology prescribers… and an increase in our hospital business… rheumatologists are growing faster than nephrologists right now” .
“Aritinercept was well tolerated at all dose levels tested… single doses led to robust and long‑lasting reductions in immunoglobulins… supportive of once‑monthly dosing” .

Q&A Highlights

AUR200 path: Management intends to initiate ≥2 B‑cell mediated disease studies in H2 2025; formulation work aims at patient‑friendly delivery (potential autoinjector) .
Commercial cadence: Guidance range brackets potential summer flatness vs continued sequential growth; historical seasonality (lighter PSFs) informs outlook .
Prescriber mix: Rheumatology adoption accelerating; hospital business expanding, aided by updated ACR guidelines and recent publications .
IP/Exclusivity: No changes; pediatric commitments not extending worst‑case July 2028 date; patents extend to 2037; litigation process expectedly protracted .
Capital returns vs R&D: Board discretion on buybacks; strong LUPKYNIS cash flows support both pipeline and buybacks without forward cash flow guidance .

Estimates Context

Q2 2025 beats: revenue $70.0m vs $63.8m consensus; EPS $0.16 vs $0.147 consensus; EBITDA near in line . Values retrieved from S&P Global*.
FY25 consensus revenue $280.8m* currently sits above company guidance $260–$270m, suggesting potential downward revisions to align with management’s outlook . Values retrieved from S&P Global*.
Target price consensus unchanged at $16.5*; Recommendation text not provided in this pull. Values retrieved from S&P Global*.

Key Takeaways for Investors

Q2 print shows strong execution: broad‑based revenue growth, margin expansion, and EPS leverage; near‑term trading setup favored by raised guidance and buyback expansion .
LUPKYNIS adoption tailwind from ACR guidelines is materializing in rheumatology and academic hospitals, supporting sustained growth into H2 despite typical summer softness .
Pipeline optionality: AUR200’s positive SAD profile and once‑monthly dosing potential create medium‑term catalysts as indications are disclosed and trials initiate in H2 .
Street models likely recalibrate FY25 down towards company guidance despite Q2 beat; monitor estimate revisions and potential positioning shifts. Values retrieved from S&P Global*.
Operating discipline remains a differentiator: lower OpEx post‑restructuring and robust cash generation underpin flexibility for R&D and shareholder returns .
Legal/IP overhang persists but unchanged; management prioritizes asset longevity with patents to 2037; watch litigation milestones as they arise .
Near‑term catalysts: AUR200 development updates, continued LUPKYNIS uptake in rheumatology, and potential additional buyback execution given cash flow trajectory .

Values retrieved from S&P Global* where noted.

Aurinia Pharmaceuticals Inc. (AUPH)·Q2 2025 Earnings Summary