Executive Summary

Strong Q3 print with broad-based beats and a guidance raise: total revenue $73.5M (+8% YoY; +4.9% QoQ) and diluted EPS $0.23 (+130% YoY), both above S&P Global consensus; management raised 2025 total revenue to $275–$280M and LUPKYNIS net product sales to $265–$270M . Revenue actual $73.5M vs $67.7M consensus; EPS $0.23 vs $0.16 consensus (beats) (Values retrieved from S&P Global)*.
Growth driven by LUPKYNIS net product sales $70.6M (+27% YoY; +6% QoQ), offsetting lower license/collaboration revenue (lap of $10M 2024 Japan milestone) .
Margins expanded materially (operating margin ~40.5%; net margin ~42.9%), aided by sharply lower SG&A post 2024 restructuring, and interest income tailwind .
Strategic update: FDA information request on LUPKYNIS yielded additional analyses showing a statistically significant reduction in renal-related events or death; Aritinercept (dual BAFF/APRIL) advancing to clinical studies in two autoimmune diseases by year-end 2025, with more program detail in early 2026 .

What Went Well and What Went Wrong

What Went Well
- LUPKYNIS unit economics and execution: Net product sales +27% YoY to $70.6M, driving total revenue and EPS beats; management raised FY revenue and sales guidance for the second time in 2025 . CEO: “LUPKYNIS sales experienced continued momentum…” .
- Increased clinical and real-world evidence: New analyses suggest a statistically significant reduction in risk of renal-related events or death, reinforcing LUPKYNIS’ profile . CMO: “LUPKYNIS… was associated with a statistically significant and clinically meaningful 53% reduction in the risk of renal-related events or death” .
- Operating leverage and cash generation: Operating cash flow $44.5M in Q3 (+162% YoY) and strong YTD cash flow; share count reduced (12.2M shares repurchased YTD for $98.2M), with cash and investments at $351.8M .
What Went Wrong
- Contract/other revenue headwind: License/collaboration/royalty revenue fell to $2.8M from $12.3M YoY due to prior-year $10M Japan milestone, masking underlying sales growth in total revenue .
- Continued competitive and formulary backdrop: Q&A flagged clinician adoption dynamics versus newly approved/expected B‑cell agents (e.g., GAZYVA), necessitating continued education and differentiation on speed of response .
- Regulatory/legal overhangs persist: FDA information request adds attention (albeit data favorable), and ANDA/IP litigation timelines remain protracted; management will not provide frequent updates .

Financial Results

Headline metrics vs prior periods and vs estimates

Metric	Q3 2024	Q2 2025	Q3 2025 Actual	S&P Consensus	YoY	QoQ
Total Revenue ($M)	$67.8	$70.0	$73.5	$67.7*	+8.4%	+4.9%
Diluted EPS ($)	$0.10	$0.16	$0.23	$0.16*	+130%	+43.8%

Revenue breakdown

Revenue Component ($M)	Q3 2024	Q2 2025	Q3 2025
Net Product Sales (LUPKYNIS)	$55.5	$66.6	$70.6
License/Collab/Royalty	$12.3	$3.4	$2.8
Total Revenue	$67.8	$70.0	$73.5

Profitability and margins

Metric	Q3 2024	Q2 2025	Q3 2025
Operating Income ($M)	$11.7	$20.1	$29.7
Net Income ($M)	$14.4	$21.5	$31.6
Gross Margin %	~91.1% (67.8−6.0)/67.8	90% (company stated)	~88.9% (73.5−8.2)/73.5
Operating Margin %	~17.3% (11.7/67.8)	~28.7% (20.1/70.0)	~40.5% (29.7/73.5)
Net Income Margin %	~21.2% (14.4/67.8)	~30.7% (21.5/70.0)	~42.9% (31.6/73.5)

Key KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Cash from Operations ($M)	$17.0	$45.5 (YTD H1)	$44.5
Cash & Investments ($M)	n/a	$315.1	$351.8
Share Repurchases	n/a	11.2M shares for $90.8M (H1)	12.2M shares for $98.2M (YTD)

Notes: Q3 2024 license revenue included a $10M milestone in Japan; YoY comps reflect this headwind . Gross margin for Q2 is company-stated; Q3/Q3’24 margins are derived from reported revenue and cost of revenue .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2025	$260M–$270M (as of Q2 call)	$275M–$280M (as of Nov 4)	Raised
Net Product Sales (LUPKYNIS)	FY 2025	$250M–$260M (as of Q2 call)	$265M–$270M (as of Nov 4)	Raised

Context: Initial 2025 guide reiterated at Q1 ($250–$260M total; $240–$250M LUPKYNIS) . Raised at Q2 and again at Q3 reflecting sustained demand momentum .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
LUPKYNIS adoption and guidelines	Emphasis on ACR 2024 update; focus on rheumatology and hospital channels	Continued gains; raised full-year guide	YOY +27% sales; second 2025 guide raise	Improving
Competitive landscape (B‑cell agents e.g., GAZYVA)	Expect competitive entrants; positioning on speed of response	Ongoing awareness building; differentiation	Clinicians see complementarity; faster goal attainment with LUPKYNIS highlighted	Neutral/managed
FDA information request on LUPKYNIS	n/a	n/a	New analyses: 53% reduction in renal-related events/death; response submitted to FDA	Positive data disclosure
Aritinercept (AUR200) progression	SAD readout timing; monthly dosing potential	MAD plans; device/formulation; dose range	Initiating two autoimmune disease studies by YE25; details in early 2026	Advancing
IP/ANDA litigation & exclusivity	Active litigation; 30‑month stay; long-dated patents	No change; focus on longevity	Not updated this quarter	Steady
Macro/tariffs & supply	Minimal impact; ample US inventory; API in Switzerland	n/a	n/a	Stable

Management Commentary

“LUPKYNIS sales experienced continued momentum following last year’s update to the American College of Rheumatology lupus nephritis treatment guidelines… We are increasing total revenue guidance… to $275 million to $280 million and net product sales guidance… to $265 million to $270 million.” — Peter Greenleaf, CEO .
“Excluding the one-time milestone, total revenue increased by 27%… Net product sales… were $70.6 million, up 27%… Diluted EPS was $0.23, up 130%.” — Joe Miller, CFO .
“New analyses… show that LUPKYNIS also was associated with a statistically significant and clinically meaningful reduction in the risk of renal-related events or death…” — Greg Keenan, CMO ; see detailed tables in slides .
“Aurinia plans to initiate clinical studies of aritinercept in two autoimmune diseases by the end of 2025.” — Management .

Q&A Highlights

Adoption dynamics vs B‑cell agents: Management underscored complementarity and LUPKYNIS’ faster achievement of therapeutic goals vs B‑cell modulators; rheumatology prescriber base and hospital channel continue to expand .
Outlook into Q4 and 2026: Confidence in continued momentum; raised guidance reflects trends; more AUR200 details in early 2026 .
FDA information request: Company responded with favorable data; cannot predict further questions but views the exchange positively .
Aritinercept dosing/program: 150 mg will be among doses in MAD; once‑monthly dosing supported by PD; indications to be disclosed with program updates in 2026 .
Persistence: Upward trend in patient persistency, helped by long‑term safety/efficacy and biopsy substudy data .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue $73.5M actual vs $67.7M consensus (beat by ~$5.8M); EPS $0.23 vs $0.16 consensus (beat by $0.07) (Values retrieved from S&P Global)*.
Prior quarters: Q2 revenue $70.0M vs $63.8M consensus; EPS $0.16 vs $0.147 consensus (beats). Q1 revenue $62.5M vs $61.1M; EPS $0.16 vs $0.10 (beats) (Values retrieved from S&P Global)*.

Consensus detail

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Consensus Mean ($)	61,058,600*	63,797,570*	67,704,000*
Actual Revenue ($)	62,465,000	70,008,000	73,468,000
Primary EPS Consensus Mean ($)	0.10*	0.1467*	0.16*
Actual Diluted EPS ($)	0.16	0.16	0.23
Revenue − # of Estimates	5*	7*	7*
EPS − # of Estimates	5*	6*	6*

Note: * Values retrieved from S&P Global.

Key Takeaways for Investors

Beat-and-raise quarter: Solid top-line and EPS beats with a second FY guidance raise should support positive estimate revisions and multiple support (Values retrieved from S&P Global)*.
Quality of growth: Underlying demand reflected in +27% LUPKYNIS sales; YoY revenue growth understated by prior‑year Japan milestone in license revenue .
Margin inflection: Significant operating and net margin expansion from SG&A resets and scale; cash generation supports continued buybacks and pipeline funding .
Clinical/practice tailwinds: ACR guideline inclusion continues to aid adoption across rheumatology and hospital channels .
Risk watch: Competitive LN agents (B‑cell pathway) are coming; management positioning emphasizes speed of response and complementarity .
Regulatory update: FDA information request outcome appears favorable; additional LN outcomes analyses bolster durability narrative .
Pipeline catalyst path: Aritinercept to enter two autoimmune indications by YE25 with early 2026 program disclosure—watch for dose selection/MAD data and indication reveals .

Appendix: Additional Supporting Data and References

Q3 2025 financial statements and press release excerpts (revenue breakout, EPS, cash flow, balance sheet, guidance) .
Q2 2025 and Q1 2025 baselines (revenue, EPS, guidance progression, buybacks) .
Earnings call commentary and Q&A (adoption, competition, FDA request, AUR200 plans) .
LUPKYNIS clinical analyses (renal-related events/death reduction) and Aritinercept SAD data (IgA/IgM/IgG reductions) .
Related press releases (ACR/ASN data presentations) .

Aurinia Pharmaceuticals Inc. (AUPH)·Q3 2025 Earnings Summary