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UT

UNITED THERAPEUTICS Corp (UTHR)·Q3 2025 Earnings Summary

Executive Summary

  • Record Q3 revenue of $799.5M (+7% y/y) and diluted EPS of $7.16 (+12% y/y). EPS beat consensus by ~+2.9% while revenue missed by ~-1.6% as product mix and higher gross-to-net deductions offset strong Tyvaso DPI growth . Estimates marked with * are from S&P Global.*
  • Tyvaso franchise grew 10% y/y to $478.0M, led by Tyvaso DPI (+22% y/y). Management stated there was “no material impact” from the competitor Eutrepia launch and announced an imminent 80 mcg DPI cartridge to drive higher-dose convenience and share .
  • Orenitram rose 16% y/y; Remodulin was modestly lower; Unituxin declined 22% y/y. Cost of sales increased 22% y/y and the effective tax rate rose to 23% from 20% y/y, tempering operating leverage .
  • Strategic catalysts: “breakthrough” TETON‑2 results in IPF (management: “best…ever reported”), ralinepag outcomes data expected 1H26, and first UKidney xenotransplant in EXPAND study (Nov 3) support medium-term growth optionality and investor interest .

What Went Well and What Went Wrong

What Went Well

  • Tyvaso ecosystem resilience and innovation: management highlighted “no material impact” from Eutrepia; patient shipments and prescriber breadth strengthened into October; 80 mcg DPI cartridge launching “very soon” to simplify higher dosing .
  • Pipeline momentum and expansion: TETON‑2 in IPF described by CEO as “the best results…ever reported” for the condition, with potential to “significantly broaden” reach; leadership guided to a $4B revenue run-rate by 2027 .
  • Capital allocation: company executed additional accelerated share repurchases (~$1.0B in Aug-25) under its ASR framework ($2.0B aggregate 2024–2025), signaling confidence in valuation and cash generation .

What Went Wrong

  • Revenue slightly below Street: $799.5M vs $812.9M* consensus (~-1.6%), with higher gross-to-net deductions in Tyvaso nebulized and mix effects offsetting DPI strength . Estimates from S&P Global.*
  • Unituxin and Tyvaso nebulized headwinds: Unituxin down 22% y/y on volume; nebulized Tyvaso down 11% y/y from higher gross‑to‑net and lower volumes, partly offset by DPI gains .
  • Cost/tax pressure: cost of sales up 22% y/y; ETR rose to 23% from 20%, limiting flow-through despite revenue growth; ongoing litigation accrual stood at $73.3M as of 9/30/25 .

Financial Results

Headline Results vs Prior Periods

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$748.9 $794.4 $798.6 $799.5
Net Income ($USD Millions)$309.1 $322.2 $309.5 $338.7
Diluted EPS ($)$6.39 $6.63 $6.41 $7.16
Operating Income ($USD Millions)$343.1 $382.8 $364.5 $388.5
EBIT Margin %*54.51%*48.19%*45.64%*48.69%*
Net Income Margin %*41.27%*40.56%*38.76%*42.36%*

Notes: Asterisked values retrieved from S&P Global.*

Q3 2025 Actual vs Street Consensus (S&P Global)

MetricConsensus*ActualSurprise
Revenue ($USD Millions)$812.9*$799.5 -1.6% (computed)
Diluted EPS ($)$6.961*$7.16 +2.9% (computed)
# of Estimates (Rev / EPS)12 / 12*——

Notes: Consensus and estimate counts from S&P Global. Surprise computed from S&P Global consensus and company-reported actuals.*

Product Revenue Mix

Product ($USD Millions)Q3 2024Q2 2025Q3 2025
Tyvaso DPI$274.6 $315.2 $336.2
Nebulized Tyvaso$159.2 $154.4 $141.8
Total Tyvaso$433.8 $469.6 $478.0
Remodulin$128.3 $134.7 $125.9
Orenitram$113.2 $123.9 $131.1
Unituxin$61.1 $58.4 $47.9
Adcirca$7.0 $6.5 $9.7
Other$5.5 $5.5 $6.9
Total Revenues$748.9 $798.6 $799.5

Geography (Q3 2025 and Q3 2024)

($USD Millions)Q3 2024 U.S.Q3 2024 ROWQ3 2024 TotalQ3 2025 U.S.Q3 2025 ROWQ3 2025 Total
Total Revenues$717.3 $31.6 $748.9 $774.8 $24.7 $799.5

Expense and Tax Highlights (Q3 2025 vs Q3 2024)

  • Cost of sales: $100.9M vs $83.1M (+21% y/y), driven by higher royalties and inventory reserves .
  • SG&A: $182.6M vs $219.2M (-17% y/y) due to lapping a $65.1M litigation accrual in Q3’24; underlying G&A increased on personnel, legal, and branded Rx fees .
  • R&D: $127.5M vs $103.5M (+23% y/y), reflecting organ manufacturing initiatives and a $5M milestone .
  • Effective tax rate: 23% vs 20% y/y; income tax expense $99.3M vs $79.5M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/CommentaryChange
Revenue Run-Rate2027—Management: “guiding…$4B revenue run rate not later than 2027” New long-term commentary
Tyvaso DPI 80 mcg Cartridge LaunchNear-term—“Very soon…next 30–60 days” to enhance higher-dose convenience New operational update
Share Repurchase2024–2026$1B authorization (7/30/25) $1.0B ASR executed in Aug-25; aggregate $2.0B including Mar-24 ASR Increased capital return execution

Note: No formal quantitative FY guidance was provided in the Q3 materials; management emphasized durable Tyvaso growth, pipeline catalysts, and device enhancements .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
IPF/TETON-2Q2: TETON‑2 complete; data expected Sept 2025 . Q1: readout expected in 2025 .CEO: “best…ever reported” for IPF; significant broadening potential .Strong positive inflection
Tyvaso competition & dosingQ2: “no other treprostinil DPI studied at higher doses”; commercial execution strong . Q1: “prostacyclin products of choice” .“No material impact” from Eutrepia; higher-dose 80 mcg cartridge and combo kits launching; favorable payer coverage .Positive; competitive moat strengthening
Ralinepag (ADVANCE OUTCOMES)Q2: enrollment complete; data 1H26 .Once-daily, potent prostacyclin; patent “roughly 2040”; synergy with sotatercept .Building anticipation
Access/IRAQ2/Q1: IRA Part D redesign supporting utilization .“Multiple favorable coverage decisions” for Tyvaso DPI .Supportive access
Organ/XenotransplantQ1: UKidney first-in-human planned .First UKidney xenotransplant performed (EXPAND study) Nov 3 .Program advancing

Management Commentary

  • “United Therapeutics had a great quarter helping more patients and earning more revenues than ever before…we are now guiding that we’ll be at a $4 billion revenue run rate not later than 2027.” — Martine Rothblatt, CEO .
  • “Continued double-digit revenue growth for total Tyvaso demonstrates that we are realizing no material impact from the launch of Eutrepia…We will soon be launching Tyvaso DPI 80 microgram cartridges.” — Michael Benkowitz, President & COO .
  • “The breakthrough results from our TETON‑2 study in idiopathic pulmonary fibrosis could significantly broaden our therapeutic reach and accelerate our growth.” — Martine Rothblatt, CEO .
  • “First clinical xenotransplantation in EXPAND…marks a watershed moment…moves us closer to offering ESRD patients an alternative to lifelong dialysis.” — Leigh Peterson, EVP, Xenotransplantation .

Q&A Highlights

  • IPF screening and demand: Physicians indicate they are likely to screen IPF patients more aggressively post-TETON‑2; too early for measurable uptick but monitoring closely .
  • Ralinepag positioning: Once-daily oral, potent prostacyclin with patent “~2040”; strong outcomes enrollment and encouraging open-label signals; potential synergy with sotatercept .
  • Business development: Potential ex‑U.S. partnerships to expand Tyvaso’s reach; company remains primarily U.S.-focused in manufacturing and revenue .
  • Competitive dynamics: Minimal impact from Eutrepia; patient shipments “super strong” into October; prescriber breadth rising; some trialing occurred but many patients returned .
  • Device roadmap: Tyvaso DPI 80 mcg cartridge to simplify higher-dose regimens; launch targeted in 30–60 days .

Estimates Context

  • Q3 2025: Revenue $799.5M vs $812.9M* consensus (miss ~1.6%); Diluted EPS $7.16 vs $6.961* consensus (beat ~2.9%); 12 estimates for both revenue and EPS . Estimates from S&P Global.*
  • Forward consensus: Q4 2025 revenue $818.7M*, EPS $6.878*; Q1 2026 revenue $817.9M*, EPS $7.017* — implying modest sequential revenue growth from Q3 actuals, with stable high EPS baseline. Estimates from S&P Global.*

Key Takeaways for Investors

  • Tyvaso franchise continues to compound with DPI-led growth and new 80 mcg cartridge/product kits likely to support higher-dose adoption and share gains amid limited competitive disruption .
  • Mixed print vs consensus (rev miss/EPS beat) should focus attention on product mix and gross‑to‑net dynamics; management’s commentary and payer wins mitigate competitive concerns .
  • TETON‑2 “best‑ever” IPF results and ralinepag outcomes (1H26) represent meaningful optionality beyond PH, expanding the TAM and potential multi‑year growth runway .
  • Capital deployment remains shareholder-friendly (ASR execution), underpinned by strong balance sheet and cash generation .
  • Watch Unituxin softness, nebulized Tyvaso declines, and cost/tax trends as offsetting headwinds to margins near term .
  • Near-term trading catalysts: 80 mcg DPI launch execution and payer coverage updates; medium-term: peer-reviewed TETON publications, regulatory path discussions for IPF/PPF, and ralinepag readout .
  • Long-term: Management’s $4B revenue run-rate target by 2027 anchors a multi-year growth narrative if execution and pipeline milestones track as indicated .

Additional Detail: Prior Quarters (for trend)

  • Q2 2025: Revenue $798.6M (+12% y/y), Total Tyvaso $469.6M (+18% y/y); Board authorized up to $1B repurchases; TETON‑2 data expected Sept; ralinepag outcomes enrollment complete (data 1H26) .
  • Q1 2025: Revenue $794.4M (+17% y/y), Total Tyvaso $466.3M (+25% y/y); continued execution in PH and progress in organ programs (UHeart/UThymoKidney INDs planned) .

Notes: All company financials and commentary from United Therapeutics’ Q3 2025 8‑K/press release and earnings call transcript; forward-looking and program updates include Nov 3 UKidney press release . Estimates marked with * are values retrieved from S&P Global.