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HALOZYME THERAPEUTICS, INC. (HALO)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered strong upside: total revenue rose 41% YoY to $325.7M, driven by 65% YoY royalty growth; Non-GAAP diluted EPS was $1.54 and GAAP diluted EPS was $1.33 . Against S&P Global consensus, HALO beat on revenue by ~$39.8M and on EPS by ~$0.31, with seven estimates in the quarter (consensus revenue ~$285.9M; EPS ~$1.23)* .
  • Guidance raised across the board for a second time in 2025: FY revenue $1.275B–$1.355B (from $1.200B–$1.280B), royalty revenue $825M–$860M, adjusted EBITDA $865M–$915M, and Non-GAAP EPS $6.00–$6.40 .
  • Strategic momentum: multiple new partner approvals/indications (DARZALEX SC, RYBREVANT SC, Opdivo SC, VYVGART Hytrulo), and $303.4M of Q2 buybacks (second $250M tranche completed; third $250M tranche initiated) .
  • Management highlighted continued sequential growth for royalties and 2H phasing (collaboration revenue and product sales skew to Q4), reinforcing a constructive trajectory and a likely positive setup into year-end .

What Went Well and What Went Wrong

What Went Well

  • Royalty-led outperformance: royalties grew 65% YoY to $205.6M, led by DARZALEX SC, VYVGART Hytrulo and Phesgo; total revenue rose 41% YoY to $325.7M, and adjusted EBITDA rose 65% YoY to $225.5M .
  • Guidance raised again: FY25 ranges for revenue, royalty revenue, adjusted EBITDA and Non-GAAP EPS were increased on strong performance and outlook; CEO: “another quarter of exceptional growth … further accelerate our future growth trajectory” .
  • Approvals expanding TAM: new label/indication approvals across partners (e.g., DARZALEX SC for high‑risk SMM in EU; RYBREVANT SC in EU; Opdivo SC approval in EU; VYVGART Hytrulo prefilled syringe approvals), plus milestones recognized (e.g., $12M for Opdivo SC) .

What Went Wrong

  • Higher SG&A including legal costs: SG&A rose to $41.6M from $35.7M, including $2.6M of IP litigation costs tied to Merck SC Keytruda litigation .
  • Cost of sales increased: $46.4M vs $39.6M YoY, reflecting higher product sales and labor allocation initiatives .
  • Timing/visibility risks: management flagged collaboration revenue and product sales as more Q4‑weighted; while constructive for FY, the phasing adds intra‑year variability and model sensitivity .

Financial Results

Headline metrics vs prior periods and S&P consensus

MetricQ2 2024Q1 2025Q2 2025S&P Consensus (Q2 2025)*Surprise (Q2 2025)
Total Revenue ($M)231.353 264.861 325.719 285.919*Beat by ~$39.8M
Non-GAAP Diluted EPS ($)0.91 1.11 1.54 1.230*Beat by ~$0.31
GAAP Diluted EPS ($)0.72 0.93 1.33 ——

Revenue mix

Revenue Composition ($M)Q2 2024Q1 2025Q2 2025
Royalties124.918 168.192 205.639
Product Sales, net78.886 78.041 81.510
Revenues under Collab. Agreements27.549 18.628 38.570
Total Revenues231.353 264.861 325.719

Profitability and cash KPIs

KPIQ2 2024Q1 2025Q2 2025
Operating Income ($M)117.235 141.535 202.441
Net Income ($M)93.245 118.095 165.160
Adjusted EBITDA ($M)137.030 161.983 225.504
Cash, Cash Equivalents & Marketable Securities ($M)—747.9 548.2
Weighted Avg Diluted Shares (M)129.222 126.644 124.158
Share Repurchases in Q2 ($M)——303.4

Margins (S&P Global)

Margin (%)Q2 2024Q1 2025Q2 2025
EBITDA Margin %58.81%*60.59%*67.99%*
EBIT Margin %50.67%*53.44%*62.15%*
Net Income Margin %40.30%*44.59%*50.71%*
  • Values retrieved from S&P Global.

Context and cross-checks: press release reported +41% YoY revenue growth, +65% YoY royalty growth, GAAP EPS $1.33 and Non-GAAP EPS $1.54; adjusted EBITDA $225.5M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025$1,200M–$1,280M $1,275M–$1,355M Raised
Royalty RevenueFY 2025$750M–$785M $825M–$860M Raised
Adjusted EBITDAFY 2025$790M–$840M $865M–$915M Raised
Non-GAAP Diluted EPSFY 2025$5.30–$5.70 $6.00–$6.40 Raised

Management noted guidance reflects currently implemented tariffs .

Earnings Call Themes & Trends

TopicQ4 2024 (prior 2Q)Q1 2025 (prior 1Q)Q2 2025 (current)Trend
Royalty growth drivers & approvalsStrong 2024 finish; Opdivo Qvantig US approval and launch; multiple 2024 EU/JP approvals (e.g., VYVGART Hytrulo CIDP JP) Raised 2025 guide on momentum; CHMP positive opinions; RYBREVANT SC EU approval; VYVGART Hytrulo PFS approvals Further EU/US approvals/indications incl. DARZALEX SC for SMM (EU), RYBREVANT SC EU, Opdivo SC EU; $12M milestone for Opdivo SC Accelerating
Guidance & phasingReiterated initial 2025 guidance Raised FY25 guidance ranges Raised FY25 guidance again; phasing: collab and product sales more Q4-weighted; royalties to grow sequentially each quarter Up and to the right; H2 skew
Auto-injector (SVAI/HVAI)Portfolio noted; development programs ongoing First HVAI development agreement signed; separate partner moving SVAI to clinical testing Management reiterated development progress; clinical testing for SVAI expected 2026; usability study by YE25 Advancing
Regulatory/legal—Filed patent suit vs Merck re: SC Keytruda Ongoing litigation; SG&A includes $2.6M litigation costs in Q2 Ongoing risk
Tariffs/macro—Guidance reflects tariffs Guidance reflects tariffs Stable assumption
Capital allocation$250M ASR in Dec-24 New $250M buyback announced Completed $250M tranche; initiated third $250M tranche; $303.4M repurchases in Q2 Aggressive buybacks

Management Commentary

  • CEO (Q2 PR): “We are very excited to report another quarter of exceptional growth with a 65% increase in royalty revenue … Additional regulatory milestones … will further accelerate our future growth trajectory … we are pleased to increase our full-year 2025 financial guidance ranges for the second time this year.”
  • CEO on capital allocation: “Our outperformance and strong cash generation supports a balanced capital allocation strategy, including investing in growth through M&A and returning capital to shareholders.”
  • CFO (call): “We expect collaboration revenue for the rest of the year to be more weighted in the fourth quarter … product sales … more weighted in the fourth quarter … For royalties, we expect quarterly sequential growth for the remaining quarters in the year.”

Q&A Highlights

  • Phasing and modeling: Management clarified revenue phasing with collaboration revenue and product sales heavier in Q4; royalties expected to grow sequentially each remaining quarter, aiding model updates .
  • Auto-injector roadmap: Team reiterated SVAI/HVAI momentum; human factors usability study targeted by YE25 and clinical testing for SVAI with a current partner in 2026 .
  • Conversion strategy: Management emphasized partners’ IV-to-SC conversion strategies (e.g., Roche’s Tecentriq), signaling longer-term royalty tailwinds as access/reimbursement expand .

Estimates Context

  • S&P Global consensus for Q2 2025: revenue ~$285.9M (7 est.), Primary EPS ~$1.23 (7 est.). Actuals: revenue $325.7M; Non-GAAP/Primary EPS $1.54. Beat magnitude: revenue ~$39.8M; EPS ~$0.31* .
  • With guidance raised across all measures, Street models likely move higher on royalties and EPS, with visibility aided by expected sequential royalty growth and Q4 collaboration/product sales phasing .
  • Values retrieved from S&P Global.

Key Takeaways for Investors

  • Royalty engine accelerating: +65% YoY in Q2, underpinned by expanding SC labels and new launches (DARZALEX SC, RYBREVANT SC, Opdivo SC, VYVGART Hytrulo) .
  • Broad-based beats and higher bar: Q2 revenue and EPS beat S&P Global consensus, and FY25 guidance raised again across revenue, royalties, adjusted EBITDA and EPS .
  • Constructive setup into 2H: management signaled sequential royalty growth each quarter and Q4 weighting for collaboration and product revenues—supportive for near-term upside catalysts as approvals translate to access and reimbursement .
  • Capital returns bolster EPS: $303.4M repurchased in Q2, with an additional $250M tranche initiated—continuing to reduce diluted shares while maintaining growth investments .
  • Watch legal and SG&A: Merck litigation adds cost and headline risk (Q2 included $2.6M in IP legal costs), though core profitability expanded materially YoY .
  • Tariff assumptions embedded: Guidance explicitly reflects currently implemented tariffs, reducing exogenous forecast risk on that front .
  • Slide deck supports outlook details: management reiterated raised FY guidance and longer-term earnings power in the Q2 deck, reinforcing confidence in trajectory .

Additional relevant press release in the quarter: EU approval of DARZALEX Faspro monotherapy for high‑risk smoldering multiple myeloma, expanding TAM for a key royalty driver .

Citations:

  • Q2 2025 press release:
  • 8‑K (Item 2.02 and Exhibit 99.1):
  • Q1 2025 press release:
  • Q4 2024 press release:
  • Other Q2 PRs: DARZALEX Faspro EU approval (SMM):
  • Earnings call transcript/slide deck references:

S&P Global disclaimer: Values marked with an asterisk (*) were retrieved from S&P Global.