Executive Summary

Halozyme delivered a strong Q1 2025: total revenue $264.9M (+35% y/y), royalty revenue $168.2M (+39% y/y), GAAP diluted EPS $0.93 (+55% y/y), and non-GAAP diluted EPS $1.11 (+41% y/y) .
The company raised full-year 2025 guidance across all key metrics: total revenue to $1.20–$1.28B, royalties to $750–$785M, adjusted EBITDA to $790–$840M, and non-GAAP EPS to $5.30–$5.70; announced a new $250M share repurchase .
Results beat S&P Global consensus: revenue $264.9M vs $230.2M*, EPS $1.11 vs $0.94*, EBITDA $160.5M vs $142.3M*; upside driven by stronger royalties (DARZALEX SC, Phesgo, VYVGART Hytrulo), earlier-than-expected VYVGART milestone, and partner rHuPH20 orders . Values retrieved from S&P Global.*
Stock-relevant catalysts include guidance raise, new $250M buyback, and multiple partner regulatory wins (EC approvals of RYBREVANT SC and Opdivo SC; FDA approval of VYVGART Hytrulo prefilled syringe), supporting multi-year royalty growth .

What Went Well and What Went Wrong

What Went Well

Broad-based growth with three blockbuster SC franchises (DARZALEX, Phesgo, VYVGART Hytrulo) driving royalties; management emphasized continued leadership and momentum: “It really has been a tremendous start to 2025… we are considered your consistent stock grower.” .
Earlier-than-expected commercial milestone on VYVGART Hytrulo and stronger partner demand for rHuPH20 boosted product sales and collaboration revenues, lifting guidance .
Regulatory catalysts: EC approval of subcutaneous RYBREVANT (10th ENHANZE partner product) and Opdivo SC across multiple solid tumors; FDA approval of VYVGART Hytrulo prefilled syringe enabling self-injection . “This approval is just one of the 11 growth catalysts for our commercialized SC products expected this year.” .

What Went Wrong

Sequential margin softness: EBITDA margin fell to 60.6%* (Q1) from 65.3%* (Q4), and EBIT margin to 53.4%* from 58.9%, reflecting higher COGS and SG&A; management pointed to consulting/pro services and compensation as drivers . Values retrieved from S&P Global.
Cost of sales grew to $48.4M (+71% y/y) on greater product sales; SG&A rose to $42.4M (+21% y/y) on higher consulting/pro services and compensation .
R&D decreased y/y due to resource optimization and timing of ENHANZE investments, which could raise questions on pipeline spend cadence despite robust partner-led development .

Financial Results

Sequential Performance (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenue ($M)	$290.1	$298.0	$264.9
Operating Income ($M)	$163.2	$175.5	$141.5
Net Income ($M)	$137.0	$137.0	$118.1
EBITDA ($M)	$183.6	$195.8	$162.0
Adjusted EBITDA ($M)	$183.6	$195.8	$162.0
GAAP Diluted EPS ($)	$1.05	$1.06	$0.93
Non-GAAP Diluted EPS ($)	$1.27	$1.26	$1.11
EBITDA Margin %	62.8%*	65.3%*	60.6%*
EBIT Margin %	56.3%*	58.9%*	53.4%*
Net Income Margin %	47.2%*	46.0%*	44.6%*
Values retrieved from S&P Global.*

Year-over-Year (Q1)

Metric	Q1 2024	Q1 2025
Total Revenue ($M)	$195.9	$264.9
Royalties ($M)	$120.6	$168.2
Product Sales ($M)	$58.6	$78.0
Collaboration Revenue ($M)	$16.7	$18.6
Operating Income ($M)	$95.5	$141.5
Net Income ($M)	$76.8	$118.1
GAAP Diluted EPS ($)	$0.60	$0.93
Non-GAAP Diluted EPS ($)	$0.79	$1.11

Segment Breakdown

Segment ($M)	Q4 2024	Q1 2025	Q1 2024
Royalties	$170.4	$168.2	$120.6
Product Sales	$79.4	$78.0	$58.6
Collaboration	$48.2	$18.6	$16.7
Total Revenue	$298.0	$264.9	$195.9

KPIs

KPI	Q4 2024	Q1 2025
Cash, Cash Equivalents & Marketable Securities ($M)	$596.1	$747.9
Free Cash Flow ($M)	—	$153.0
Weighted Avg Diluted Shares (000s)	128,980	126,644

Results vs S&P Global Consensus (Q1 2025)

Metric	Consensus	Actual	Surprise
Revenue ($M)	230.2*	264.9	+34.7
Primary EPS ($)	0.94*	1.11	+0.17
EBITDA ($M)	142.3*	160.5	+18.2
Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2025	$1.150–$1.225B	$1.200–$1.280B	Raised
Royalty Revenue	FY 2025	$725–$750M	$750–$785M	Raised
Adjusted EBITDA	FY 2025	$755–$805M	$790–$840M	Raised
Non-GAAP Diluted EPS	FY 2025	$4.95–$5.35	$5.30–$5.70	Raised
Share Repurchase	FY 2025	$250M ASR completed Dec-2024	New $250M buyback announced	New program tranche

Drivers: stronger-than-expected royalties (DARZALEX SC, Phesgo, VYVGART Hytrulo), earlier VYVGART milestone recognition, and increased partner rHuPH20 orders; guidance reflects currently implemented tariffs .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
AI/Technology initiatives	—	Auto-injector platform referenced via Antares acquisition context	First HVAI development agreement; SVAI entering Phase 1 with partner	Expanding device tech pipeline
Supply chain/capacity	—	—	Phesgo home administration CHMP opinion to ease clinic capacity	Improving care setting flexibility
Tariffs/macro	—	Guidance reiterated; note EU patent extension risk	Tariffs included in guidance; limited exposure; royalty streams not impacted	Managed macro risk
Product performance	TECENTRIQ Hybreza & OCREVUS Zunovo U.S. approvals; strong DARZALEX/Phesgo royalties	Record royalties; VYVGART Hytrulo modest initial contribution	Broad-based royalty growth; VYVGART milestone; OCREVUS Zunovo J-code in U.S.	Strengthening and diversifying
Regulatory/legal	Multiple U.S. approvals (TECENTRIQ, OCREVUS)	Opdivo Qvantig FDA approval; RYBREVANT CHMP positive	EC approvals: RYBREVANT SC, Opdivo SC; VYVGART Hytrulo prefilled syringe FDA	Multiple near-term catalysts
Litigation/IP	—	—	Merck PGR/infringement: ENHANZE unaffected; timelines clarified	Active defense; business insulated
R&D execution	Partner pipeline expansions (argenx/ViiV nominations)	ENHANZE patent extension in EU; strong partner-led trials	Multiple Phase 2/3 updates (ViiV, Acumen; BMS CHMP positive)	Advancing with partners

Management Commentary

Strategy and investor alignment: “Our goal, said simply, is to grow organically and through serial acquisitions… licensing disruptive drug delivery platform technologies… deliver strong and durable revenue and EBITDA growth well into the next decade.” .
Royalty drivers: “We grew revenue by 35% with EBITDA growth of 40%… The continued commercial success of subcutaneous DARZALEX and Phesgo and the robust growth of VYVGART Hytrulo exceeded our expectations for the quarter, driving an increase in our full year guidance.” .
Catalysts: “This approval is just one of the 11 growth catalysts for our commercialized SC products expected this year.” (Opdivo SC EC approval) .
Capital allocation: “We are announcing an additional $250 million of share repurchases to be executed during the remainder of the year.” .
IP and litigation: “What is going on in the MDASE… will have absolutely no impact whatsoever on our ENHANZE business, our guidance… All potential upside if we were to win…” .

Q&A Highlights

Merck PGR/infringement: Institution decision in early June; PGR viewed as “a little bit of a side show”; ENHANZE business insulated regardless of outcomes .
Beat drivers: Upside was broad-based across DARZALEX SC, Phesgo, and VYVGART Hytrulo; earlier VYVGART milestone contributed .
Auto-injectors economics: Development agreements in place; commercial supply terms to be determined; likely cost-plus pricing per device .
Competitive landscape: Phesgo resilient vs ENHERTU data; conversion to SC remains “very sticky” with 47% share across 58 markets .
Tariffs: Manufacturing largely U.S.-based; minimal exposure; royalties should not be impacted by pharma tariffs based on agreements and distribution .

Estimates Context

Q1 2025 beats vs S&P Global: revenue +$34.7M; EPS +$0.17; EBITDA +$18.2M, reflecting stronger royalties and milestone timing . Values retrieved from S&P Global.*
Outlook: Management expects sequential quarterly royalty growth through the year; collaboration and product sales weighted to 2H 2025, with Q2 product sales flat vs Q1 . These dynamics likely push estimates higher for FY revenue, royalties, and EBITDA.

Key Takeaways for Investors

Guidance raise and new $250M buyback are immediate positive catalysts, reinforcing capital return and confidence in multi-year growth .
Royalty streams are broadening beyond DARZALEX, with VYVGART Hytrulo now the largest dollar growth driver in 2025, and new SC launches (OCREVUS Zunovo, TECENTRIQ Hybreza, Opdivo Qvantig, RYBREVANT SC) ramping as reimbursement/ J-codes take hold .
Near-term catalysts: EU approvals (Opdivo SC), potential U.S. approval for RYBREVANT SC, Phesgo home administration label expansion in Europe, VYVGART Hytrulo prefilled syringe adoption .
Litigation with Merck: upside optionality (damages/license) with no impact on core ENHANZE business; watch institutional PGR decision in early June for timeline signals .
Margins dipped sequentially amid higher COGS and SG&A; however, mix shift to high-margin royalties and operational efficiency underpin raised EBITDA guidance .
Modeling note: Expect royalties to grow sequentially in Q2–Q4; product sales and collaboration revenues are 2H-weighted, with Q2 product sales flat vs Q1 .
Medium-term thesis: Durable royalties through 2030s–2040s across 10 launched products; emerging device platforms (HVAI/SVAI) add optionality; disciplined M&A targeting drug delivery platforms without over-levering .

HALOZYME THERAPEUTICS, INC. (HALO)·Q1 2025 Earnings Summary