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Halozyme Beats on Q3 Earnings & Revenues, Raises 2025 View

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Key Takeaways

  • Halozyme's Q3 adjusted EPS of $1.72 beat estimates and rose 35.4% year over year.
  • Revenues climbed 22% to $354.3 million, driven by higher royalties from key partnered drugs.
  • HALO raised 2025 revenue and earnings guidance on strong performance and royalty momentum.

Halozyme Therapeutics (HALO - Free Report) reported third-quarter 2025 adjusted earnings of $1.72 per share, which beat the Zacks Consensus Estimate of $1.63. Earnings rose 35.4% year over year.

Total revenues in the third quarter increased 22% year over year to $354.3 million. Revenues too surpassed the Zacks Consensus Estimate of $337 million.

The top-line growth was primarily driven by an increase in product sales as well as higher royalty payments. HALO received royalty payments from Roche (RHHBY - Free Report) for Phesgo and J&J (JNJ - Free Report) for subcutaneous Darzalex (daratumumab), as well as argenx (ARGX - Free Report) for Vyvgart Hytrulo.

Several companies use HALO’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. Halozyme now has several marketed partnered drugs based on this technology, including the subcutaneous (SC) formulation of J&J’s Darzalex, Roche’s Phesgo and argenx’s Vyvgart Hytrulo.

Year to date, shares of Halozyme have rallied 38.5% compared with the industry’s 12.1% rise.

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HALO's Q3 Earnings in Detail

Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.

Royalty revenues totaled $236 million in the third quarter, up 52% from the year-ago quarter’s level. This was mainly due to the robust demand for Phesgo, subcutaneous Darzalex and Vyvgart Hytrulo, on which it earns royalties.

Royalty revenues beat our model estimate of $206.5 million.

Product sales were $94.2 million in the third quarter, up 8.7% from the year-ago quarter’s level. HALO has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022.

Product sales beat our model estimate of $83.8 million.

Revenues under collaborative agreements were $24 million in the third quarter, decreasing 50.4% on a year-over-year basis.

Adjusted EBITDA was $248.2 million in the third quarter, reflecting a 35% increase from the prior-year quarter.

Halozyme had cash, cash equivalents and marketable securities of $702 million as of Sept. 30, 2025, compared with $548.2 million as of June 30, 2025.

HALO's 2025 Guidance Raised

Based on the strong business performance and increased royalty revenues due to the continued strong growth of JNJ’s Darzalex SC, RHHBY’s Phesgo and ARGX’s Vyvgart Hytrulo, the company raised its total revenue guidance for 2025.

Total revenues are now expected in the range of $1.30 billion to $1.38 billion compared with the earlier projection of $1.28 billion to $1.36 billion.

Royalty revenues are now anticipated in the range of $850-$880 million, compared with the previous expectation of $825-$860 million.

Adjusted EBITDA is now expected in the band of $885-$935 million, compared with the earlier expectation of $865-$915 million.

Adjusted earnings are now expected in the range of $6.10-$6.50 per share in 2025 versus the previous projection of $6.00-$6.40 per share.

Halozyme’s earnings per share guidance does not consider the impact of potential future share repurchases.

HALO’s Recent Key Developments

Halozyme recently entered into a definitive agreement to acquire Elektrofi, a biopharmaceutical company known for its ultra-high concentration microparticle technology for biologics, branded as Hypercon.

The transaction is expected to be closed later in the fourth quarter of 2025 and should expand and diversify Halozyme’s drug delivery technology offerings for continued long-term revenue growth into 2040.

Per the deal, Halozyme will make an upfront payment of $750 million to Elektrofi, with up to three additional milestone payments of $50 million each, contingent upon regulatory approvals for three separate products.

Halozyme’s latest guidance does not include the impact of the Elektrofi transaction.

Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise

Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise

Halozyme Therapeutics, Inc. price-consensus-eps-surprise-chart | Halozyme Therapeutics, Inc. Quote

HALO’s Zacks Rank

Halozyme currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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