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Halozyme reports Q4 adjusted loss of 24 cents per share as IPR&D costs weigh on earnings.
Q4 Royalty revenues climb 51% to $258M, driven by Phesgo, Darzalex SC and Vyvgart Hytrulo.
HALO guides 2026 revenues to be $1.71B-$1.81B, while EPS is expected to be $7.75-$8.25.
Halozyme Therapeutics (HALO - Free Report) reported fourth-quarter 2025 adjusted loss of 24 cents per share against the Zacks Consensus Estimate of earnings of $2.15. The company had reported adjusted earnings of $1.26 per share in the year-ago quarter.
The year-over-year decline in earnings was due to an unfavorable impact of $2.42 per share related to acquired IPR&D expense for the Surf Bio acquisition in the fourth quarter of 2025.
However, total revenues in the fourth quarter increased 52% year over year to $451.8 million. Revenues beat the Zacks Consensus Estimate of $449 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.
In the past six months, shares of Halozyme have increased 15% compared with the industry’s 21.4% rise.
Image Source: Zacks Investment Research
HALO's Q4 Earnings in Detail
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues totaled $258 million in the fourth quarter, up 51% from the year-ago quarter’s level. This was mainly due to the robust demand for RHHBY's Phesgo, JNJ's subcutaneous Darzalex and ARGX's Vyvgart Hytrulo, on which it earns royalties.
Royalty revenues, however, missed our model estimate of $259.1 million.
Product sales were $122.7 million in the fourth quarter, up 54.5% 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 also missed our model estimate of $123.2 million.
Revenues under collaborative agreements were $71.1 million in the fourth quarter, increasing 47.5% on a year-over-year basis.
Adjusted EBITDA was $21.9 million in the reported quarter, compared with $195.8 million in the year-ago quarter.
Halozyme had cash, cash equivalents and marketable securities of $145.4 million as of Dec. 31, 2025, compared with $702 million as of Sept. 30, 2025.
HALO’s Full-Year 2025 Results
For 2025, Halozyme generated revenues of $1.39 billion, reflecting a 38% increase year over year.
For the same period, the company reported adjusted earnings of $4.15 per share, down from earnings of $4.23 per share in the year-ago period.
Halozyme expects total revenues in the range of $1.71 billion to $1.81 billion for 2026, implying year-over-year growth of 22% to 30%. Total revenues are expected to grow due to increased royalty revenues and higher product sales from API.
Royalty revenues are anticipated in the range of $1.13-$1.17 billion, implying year-over-year growth of 30% to 35%.
Adjusted EBITDA is expected in the band of $1.125-$1.205 billion, implying a year-over-year surge of 71% to 83%.
Adjusted earnings are expected in the range of $7.75-$8.25 per share in 2026, implying growth of 87% to 99% year over year.
HALO’s adjusted earnings per share guidance included the impact of approximately $60 million related to the recent Hypercon and Surf Bio investment. The adjusted earnings per share guidance does not consider the impact of potential future share repurchases.
On the fourth-quarter conference call, management stated that it expects royalty revenues in the first quarter of 2026 to be 5% to 10% lower than in the fourth quarter of 2025 due to annual contract rate adjustments. Total revenues are also projected to decline sequentially, as no milestone payments are expected in the first quarter of 2026.
Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise
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Halozyme's Q4 Earnings Miss, Higher Royalties Drive Y/Y Revenues
Key Takeaways
Halozyme Therapeutics (HALO - Free Report) reported fourth-quarter 2025 adjusted loss of 24 cents per share against the Zacks Consensus Estimate of earnings of $2.15. The company had reported adjusted earnings of $1.26 per share in the year-ago quarter.
The year-over-year decline in earnings was due to an unfavorable impact of $2.42 per share related to acquired IPR&D expense for the Surf Bio acquisition in the fourth quarter of 2025.
However, total revenues in the fourth quarter increased 52% year over year to $451.8 million. Revenues beat the Zacks Consensus Estimate of $449 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.
In the past six months, shares of Halozyme have increased 15% compared with the industry’s 21.4% rise.
Image Source: Zacks Investment Research
HALO's Q4 Earnings in Detail
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues totaled $258 million in the fourth quarter, up 51% from the year-ago quarter’s level. This was mainly due to the robust demand for RHHBY's Phesgo, JNJ's subcutaneous Darzalex and ARGX's Vyvgart Hytrulo, on which it earns royalties.
Royalty revenues, however, missed our model estimate of $259.1 million.
Product sales were $122.7 million in the fourth quarter, up 54.5% 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 also missed our model estimate of $123.2 million.
Revenues under collaborative agreements were $71.1 million in the fourth quarter, increasing 47.5% on a year-over-year basis.
Adjusted EBITDA was $21.9 million in the reported quarter, compared with $195.8 million in the year-ago quarter.
Halozyme had cash, cash equivalents and marketable securities of $145.4 million as of Dec. 31, 2025, compared with $702 million as of Sept. 30, 2025.
HALO’s Full-Year 2025 Results
For 2025, Halozyme generated revenues of $1.39 billion, reflecting a 38% increase year over year.
For the same period, the company reported adjusted earnings of $4.15 per share, down from earnings of $4.23 per share in the year-ago period.
HALO's 2026 Guidance
The company reiterated its total revenue guidance for 2026, which it had provided last month.
Halozyme expects total revenues in the range of $1.71 billion to $1.81 billion for 2026, implying year-over-year growth of 22% to 30%. Total revenues are expected to grow due to increased royalty revenues and higher product sales from API.
Royalty revenues are anticipated in the range of $1.13-$1.17 billion, implying year-over-year growth of 30% to 35%.
Adjusted EBITDA is expected in the band of $1.125-$1.205 billion, implying a year-over-year surge of 71% to 83%.
Adjusted earnings are expected in the range of $7.75-$8.25 per share in 2026, implying growth of 87% to 99% year over year.
HALO’s adjusted earnings per share guidance included the impact of approximately $60 million related to the recent Hypercon and Surf Bio investment. The adjusted earnings per share guidance does not consider the impact of potential future share repurchases.
On the fourth-quarter conference call, management stated that it expects royalty revenues in the first quarter of 2026 to be 5% to 10% lower than in the fourth quarter of 2025 due to annual contract rate adjustments. Total revenues are also projected to decline sequentially, as no milestone payments are expected in the first quarter of 2026.
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 Therapeutics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.