HALOZYME REPORTS FIRST QUARTER 2026 RESULTS AND REITERATES 2026 FINANCIAL GUIDANCE
Rhea-AI Summary
Halozyme (Nasdaq: HALO) reported strong Q1 2026 results and a new $1 billion share repurchase program, expecting at least $400 million of buybacks in 2026. Total revenue rose 42% year over year to $376.7 million, with royalty revenue up 43% to $240.7 million.
GAAP diluted EPS was $1.22 and non-GAAP diluted EPS $1.60. Halozyme reiterated 2026 guidance, including total revenue of $1.71-$1.81 billion, royalty revenue of $1.13-$1.17 billion, adjusted EBITDA of $1.125-$1.205 billion and non-GAAP EPS of $7.75-$8.25.
Positive
- Q1 2026 total revenue up 42% year over year to $376.7 million
- Royalty revenue grew 43% year over year to $240.7 million
- GAAP diluted EPS increased to $1.22; non-GAAP diluted EPS to $1.60
- EBITDA rose to $218.3 million; adjusted EBITDA to $229.5 million
- Cash and marketable securities increased to $320.9 million from $145.4 million
- New $1 billion share repurchase program, with at least $400 million targeted in 2026
- Reiterated 2026 guidance: up to $1.81 billion revenue and $1.205 billion adjusted EBITDA
- Multiple new ENHANZE and Hypercon licensing deals with GSK, Vertex and Oruka
Negative
- Cost of sales increased to $79.2 million from $48.4 million year over year
- R&D expense rose to $25.6 million from $14.8 million due to acquisitions
- SG&A expense increased to $57.9 million from $42.4 million, including higher litigation costs
- Amortization of intangibles expense climbed to $29.5 million from $17.8 million after acquisitions
- 2026 guidance includes approximately $60 million investment in Hypercon and Surf Bio, pressuring margins
News Market Reaction – HALO
In the May 12 session, HALO gained 6.81%, reflecting a notable positive market reaction. Argus tracked a peak move of +5.5% during that session. Our momentum scanner triggered 53 alerts that day, indicating high trading interest and price volatility. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Full-year earnings | Positive | -9.0% | Reported record 2025 revenue and reiterated strong 2026 guidance ranges. |
| Nov 03 | Quarterly earnings | Positive | +2.8% | Raised 2025 guidance after strong Q3 2025 revenue and royalty growth. |
| Aug 05 | Quarterly earnings | Positive | +2.5% | Delivered exceptional Q2 2025 growth and increased full-year guidance ranges. |
| May 06 | Quarterly earnings | Positive | +18.1% | Reported strong Q1 2025 results and raised 2025 revenue and EBITDA guidance. |
| Oct 31 | Quarterly earnings | Positive | +13.0% | Announced robust Q3 2024 growth and higher 2024 revenue and EBITDA outlook. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings and guidance updates have usually driven positive moves, with one notable selloff on the strong full-year 2025 report.
Recent Halozyme earnings releases have highlighted rapid royalty-driven growth and repeated guidance raises. On Oct 31, 2024, Q3 2024 revenue grew strongly and 2024 guidance was raised, followed by further guidance increases in Q1–Q3 2025 as royalties and adjusted EBITDA expanded. The Feb 17, 2026 full-year 2025 report delivered record $1.397B revenue and reiterated robust 2026 targets. Today’s Q1 2026 results and reiterated 2026 guidance continue this trajectory of scaling royalties and profitability.
Key Terms
supplemental biologics license application regulatory
phase 2/3 medical
antibody-drug conjugates medical
rule 10b5-1 trading plan regulatory
schedule 13g regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Announcing New
Projecting to Buy Back at Least
Total Revenue Increased
Royalty Revenue Increased
Reiterating 2026 Financial Guidance Ranges:
Total Revenue of
Royalty Revenue of
Adjusted EBITDA of
Non-GAAP Diluted EPS of
"I am pleased to announce our new
"The growing number of indications for our approved products and new Phase 3 data milestones represent increased opportunity for ENHANZE. Most recently, VYVGART Hytrulo was FDA-approved for all serotypes of generalized myasthenia gravis (gMG), representing a significant expansion of addressable patients. The VYVGART Hytrulo opportunity is further extended with positive Phase 3 data in ocular myasthenia gravis, increasing the MG addressable market by an additional 7,000 patients in the
"Our opportunity with ENHANZE was further enhanced in the quarter by two new Phase 1 study starts, increasing the number of ENHANZE products in development to nine, well on our way to the expected 13 ENHANZE products in development by year-end 2026. We project these ENHANZE products have the potential for approvals beginning in 2029+, creating a new wave of royalty revenue. The five signed Hypercon agreements, which include the opportunity for 17 targets to be developed, with first approvals projected in the 2030/2031 time period represents a third exciting wave of new royalty revenue opportunity. This continued performance and progress resulted in strong first quarter financial results and we are pleased to reaffirm our 2026 outlook, including expectations for ENHANZE royalty revenue to exceed
Recent Corporate Highlights:
- In May 2026, the Company announced a new share repurchase program to repurchase up to
$1 billion $400 million
Recent Partner Highlights:
- In May 2026, argenx announced
U.S. Food and Drug Administration ("FDA") approval of a supplemental Biologics License Application ("sBLA") for VYVGART® Hytrulo with ENHANZE® for the treatment of adult patients with generalized myasthenia gravis ("gMG") including all serotypes – anti-AChR-Ab positive, anti-MuSK-Ab positive, anti-LRP4-Ab positive, and triple seronegative. - In May 2026, Halozyme and GSK plc ("GSK") entered into a global collaboration and license agreement for ENHANZE® with multiple oncology targets, including the first potential application in antibody-drug conjugates ("ADCs"). Under the terms of the agreement, GSK will make an upfront payment and potential future milestone payments and royalties on net sales of products developed with ENHANZE®.
- In May 2026, Halozyme and Oruka Therapeutics, Inc. ("Oruka") entered into a global exclusive collaboration and license agreement for Halozyme's Hypercon™ technology for use with ORKA-001, in development for psoriasis and related inflammatory diseases and one additional target. Under the terms of the agreement, Oruka will make an upfront payment and potential future milestone payments and mid-single digit royalties on net sales of products developed using the Hypercon™ technology.
- In May 2026, Takeda announced positive topline results from its pivotal Phase 2/3 trial of TAK-881 with ENHANZE® in Primary Immunodeficiency Disease.
- In April 2026, Halozyme and Vertex Pharmaceuticals Incorporated ("Vertex") entered into a global exclusive collaboration and license agreement that provides Vertex access to Hypercon™ technology for use in up to three targets. Under the terms of the agreement, Vertex will make a
$15 million
First Quarter Partner Highlights:
- In March 2026, Pfizer nominated a new undisclosed non-exclusive target to be studied with ENHANZE®.
- In March 2026, Janssen announced the Committee for Medicinal Products for Human Use of the European Medicines Agency granted approval for self or caregiver administration of DARZALEX (daratumumab) SC formulation for patients living with multiple myeloma from the fifth dose, if determined to be appropriate by their healthcare professional and following proper training, making it the first oncology injectable approved for self-administration in
Europe . - In March 2026, Janssen announced the FDA approved TECVAYLI® (teclistamab-cqyv) in combination with DARZALEX FASPRO® (daratumumab and hyaluronidase-fihj) for the treatment of adults with relapsed or refractory multiple myeloma who have received at least one prior line of therapy.
- In February 2026, argenx announced positive topline results from the Phase 3 ADAPT oculus trial of VYVGART® with ENHANZE® in ocular myasthenia gravis.
- In January 2026, argenx initiated a Phase 1 study to evaluate ARGX-124 with ENHANZE®.
- In January 2026, Janssen announced the FDA approved DARZALEX FASPRO® (daratumumab and hyaluronidase-fihj) in combination with bortezomib, lenalidomide and dexamethasone for the treatment of adult patients with newly diagnosed multiple myeloma who are ineligible for autologous stem cell transplant.
First Quarter 2026 Financial Highlights:
- Total revenue was
$376.7 million $264.9 million 42% year-over-year increase was primarily driven by royalty revenue growth and an increase in product sales. Revenue included$240.7 million 43% compared to$168.2 million - Cost of sales was
$79.2 million $48.4 million - Amortization of intangibles expense was
$29.5 million $17.8 million - Research and development expense was
$25.6 million $14.8 million - Selling, general and administrative expense was
$57.9 million $42.4 million - Operating income was
$184.5 million $141.5 million - Net income was
$150.0 million $118.1 million - EBITDA was
$218.3 million $162.0 million $229.5 million $162.0 million - GAAP diluted earnings per share was
$1.22 $0.93 $1.60 $1.11 - Cash, cash equivalents, restricted cash and marketable securities were
$320.9 million $145.4 million
Financial Outlook for 2026
The Company is reiterating its 2026 financial guidance ranges, which were last provided on February 17, 2026.
For the full year 2026, the Company expects:
- Total revenue of
$1.710 billion $1.810 billion 22% to30% over 2025 total revenue, primarily driven by increases in royalty revenue and product sales from API. - Revenue from royalties of
$1.130 billion $1.170 billion 30% to35% over 2025. - Adjusted EBITDA of
$1.125 billion $1.205 billion 71% to83% over 2025, including new Hypercon™ and Surf Bio investment of approximately$60 million - Non-GAAP diluted earnings per share of
$7.75 $8.25 87% to99% over 2025. The Company's earnings per share guidance includes new Hypercon™ and Surf Bio investment of approximately$60 million
Table 1. 2026 Financial Guidance
Guidance Range | ||||
Total Revenue | ||||
Royalty Revenue | ||||
Adjusted EBITDA1 | ||||
Non-GAAP Diluted EPS1 |
1 | EBITDA, Adjusted EBITDA and Non-GAAP Diluted EPS are Non-GAAP financial measures. See "Note Regarding Use of Non-GAAP Financial Measures" below for an explanation of these measures. Reconciliations between GAAP reported and Non-GAAP financial information for actual results are provided at the end of this earnings release. |
Webcast and Conference Call
Halozyme will host its Quarterly Update Conference Call for the first quarter ended March 31, 2026 today, Monday, May 11, 2026, at 1:30 p.m. PT/4:30 p.m. ET. The conference call may be accessed live with pre-registration via link: https://events.q4inc.com/analyst/178516398?pwd=q41k1S5t. The call will also be webcast live through the "Investors" section of Halozyme's corporate website and a recording will be made available following the close of the call. To access the webcast and additional documents related to the call, please visit Halozyme.com.
About Halozyme
Halozyme is a biopharmaceutical company advancing disruptive solutions to improve patient experiences and outcomes for emerging and established therapies. As the innovators of ENHANZE® drug delivery technology with the proprietary enzyme rHuPH20, Halozyme's commercially-validated solution facilitates the subcutaneous delivery of injected drugs and fluids, reducing treatment burden and improving convenience. ENHANZE® has touched more than one million patient lives through ten commercialized products across over 100 global markets and is licensed to leading pharmaceutical and biotechnology companies including Roche, Takeda, Pfizer, Janssen, AbbVie, Eli Lilly, Bristol-Myers Squibb, argenx, ViiV Healthcare, Chugai Pharmaceutical, Acumen Pharmaceuticals, Merus N.V., Skye Bioscience and GSK.
Halozyme expanded its drug delivery technology portfolio to develop partner products using Hypercon™ and Surf Bio's hyperconcentration technology. Hypercon™ is an innovative microparticle technology expected to set a new standard in hyperconcentration of drugs and biologics by reducing injection volume for the same dosage and enabling administration in at-home and healthcare-provider settings. The addition of Surf Bio's polymer-based hyperconcentration technology further broadens the range of biologics that can be delivered subcutaneously, meaningfully expanding the scope of opportunities across therapeutic modalities. Together, HyperconTM and Surf Bio's technology complement ENHANZE® by enabling creation and delivery of highly concentrated biologics. The Hypercon™ technology has been licensed to leading biopharmaceutical partners, including Janssen, Eli Lilly, argenx, Vertex Pharmaceuticals, and Oruka Therapeutics.
Halozyme also develops, manufactures and commercializes drug-device combination products using advanced auto-injector technologies designed to improve convenience, reliability and tolerability, enhancing patient comfort and adherence. The Company has two proprietary commercial products, Hylenex® and XYOSTED®, partnered commercial products and ongoing development programs with Teva Pharmaceuticals and McDermott Laboratories Limited, an affiliate of Viatris Inc.
Halozyme is headquartered in
For more information, visit www.halozyme.com and connect with us on LinkedIn.
Note Regarding Use of Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with
The Company evaluates other items of income and expense on an individual basis for potential inclusion in the calculation of Non-GAAP financial measures and considers both the quantitative and qualitative aspects of the item, including (i) its size and nature, (ii) whether or not it relates to the Company's ongoing business operations and (iii) whether or not the Company expects it to occur as part of the Company's normal business on a regular basis. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. These Non-GAAP financial measures are not meant to be considered in isolation and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP, and are not prepared under any comprehensive set of accounting rules or principles. In addition, from time to time in the future there may be other items that the Company may exclude for purposes of its Non-GAAP financial measures, and the Company may in the future cease to exclude items that it has historically excluded for purposes of its Non-GAAP financial measures.
The Company considers these Non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what the Company considers to be its core operating performance, as well as unusual events. The Non-GAAP measures also allow investors and analysts to make additional comparisons of the operating activities of the Company's core business over time and with respect to other companies, as well as assessing trends and future expectations. The Company uses Non-GAAP financial information in assessing what it believes is a meaningful and comparable set of financial performance measures to evaluate operating trends, as well as in establishing portions of our performance-based incentive compensation programs.
Safe Harbor Statement
In addition to historical information, the statements set forth in this press release include forward-looking statements including, without limitation, statements concerning the Company's financial performance (including the Company's expected financial outlook for 2026) and expectations for future growth, profitability, revenue durability, total revenue, royalty revenue, royalty revenue duration, EBITDA, Adjusted EBITDA, and non-GAAP diluted earnings-per-share, and shareholder value and potential future share repurchases. These forward-looking statements also include statements regarding the Company's potential receipt of upfront payments and payments associated with achievement of certain development, regulatory and sales-based milestones, and royalties on sales of commercialized products from recent collaboration agreements. Forward-looking statements also include future plans, objectives, expectations and intentions related to the acquisitions of Elektrofi and Surf Bio, such acquisitions' expected impact and contributions to the Company's and combined group's operations and financial results (including potential development and commercialization of partnered products and timing related to these events), as well as the expected benefits of the acquisitions. Forward-looking statements regarding the Company's ENHANZE® drug delivery technology may include the possible benefits and attributes of ENHANZE®, its potential application to aid in the dispersion and absorption of other injected therapeutic drugs and facilitating more rapid delivery and administration of higher volumes of injectable medications through subcutaneous delivery including its potential application with antibody drug conjugates. Forward-looking statements regarding the Company's Hypercon™ technology include the possible benefits and attributes of the Hypercon™ technology, including the potential to reduce injection volume for the same dosage of drugs and biologics and possibly enabling administration in at–home and healthcare–provider settings and statements concerning certain other potential benefits of the Hypercon™ technology including facilitating administration of injectable medications through subcutaneous delivery by enabling creation and delivery of highly concentrated biologics and potentially lowering the treatment burden, easing treatment access and improving the treatment experience for patients. Forward-looking statements regarding the Company's business may include potential growth and receipt of royalty and milestone payments driven by our partners' development and commercialization efforts, potential new clinical trial study starts and advancement of partnered development programs, regulatory submissions and product launches, the size and growth prospects of our partners' drug franchises, potential new or expanded collaborations and collaborative targets, and potential approvals of new partnered or proprietary products, and the potential timing of these events. These forward-looking statements are typically, but not always, identified through use of the words "expect," "believe," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "preliminary," "possible," "should," "continue," and other words of similar meaning and involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results could differ materially from the expectations contained in these forward-looking statements as a result of several factors, including uncertainties concerning future matters such as unexpected results or delays in the Company's repurchases of the Company's shares under the recently approved share repurchase program, market conditions, changes in domestic and foreign business, changes in the competitive environment in which the Company operates, the expected benefits of its acquisitions of Elektrofi and Surf Bio, unexpected early expiration or termination of the patent terms for the Company's drug delivery technologies, unexpected levels of revenues, expenditures and costs, unexpected results or delays in the growth of the Company's business, or in the development, regulatory review or commercialization of the Company's partnered or proprietary products, regulatory approval requirements, unexpected adverse events or patient outcomes and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". Except as required by law, the Company undertakes no duty to update forward-looking statements to reflect events after the date of this release.
Contacts:
Tram Bui
VP, Investor Relations and Corporate Communications
609-333-7668
tbui@halozyme.com
Sydney Charlton
Teneo
917-972-8407
sydney.charlton@teneo.com
Halozyme Therapeutics, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) | ||||
Three Months Ended | ||||
March 31, | ||||
2026 | 2025 | |||
Revenues | ||||
Royalties | $ 240,681 | $ 168,192 | ||
Product sales, net | 130,424 | 78,041 | ||
Revenues under collaborative agreements | 5,603 | 18,628 | ||
Total revenues | 376,708 | 264,861 | ||
Operating expenses | ||||
Cost of sales | 79,238 | 48,403 | ||
Amortization of intangibles | 29,512 | 17,762 | ||
Research and development | 25,560 | 14,799 | ||
Selling, general and administrative | 57,881 | 42,362 | ||
Total operating expenses | 192,191 | 123,326 | ||
Operating income | 184,517 | 141,535 | ||
Other income (expense) | ||||
Investment and other income, net | 1,318 | 6,818 | ||
Interest expense | (5,508) | (4,525) | ||
Income before income tax expense | 180,327 | 143,828 | ||
Income tax expense | 30,278 | 25,733 | ||
Net income | $ 150,049 | $ 118,095 | ||
Earnings per share | ||||
Basic | $ 1.27 | $ 0.96 | ||
Diluted | $ 1.22 | $ 0.93 | ||
Weighted average common shares outstanding | ||||
Basic | 118,144 | 123,215 | ||
Diluted | 122,875 | 126,644 | ||
Halozyme Therapeutics, Inc Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | ||||
March 31, | December 31, | |||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ 309,749 | $ 133,820 | ||
Marketable securities, available-for-sale | 8,873 | 9,000 | ||
Accounts receivable, net and contract assets | 457,989 | 441,273 | ||
Inventories | 155,467 | 176,475 | ||
Prepaid expenses and other current assets | 70,958 | 64,639 | ||
Total current assets | 1,003,036 | 825,207 | ||
Property and equipment, net | 82,230 | 82,137 | ||
Prepaid expenses and other assets | 50,915 | 53,551 | ||
Goodwill | 582,323 | 580,360 | ||
Intangible assets, net | 951,955 | 981,467 | ||
Restricted cash | 2,260 | 2,601 | ||
Total assets | $ 2,672,719 | $ 2,525,323 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ 14,098 | $ 20,899 | ||
Accrued expenses | 140,369 | 156,193 | ||
Current portion of long-term debt, net | 208,743 | — | ||
Total current liabilities | 363,210 | 177,092 | ||
Long-term debt, net | 1,935,896 | 2,142,630 | ||
Other long-term liabilities | 106,448 | 113,863 | ||
Deferred tax liabilities, net | 47,529 | 42,924 | ||
Total liabilities | 2,453,083 | 2,476,509 | ||
Stockholders' equity | ||||
Common stock | 118 | 118 | ||
Additional paid-in capital | 27,386 | 12,002 | ||
Accumulated other comprehensive (loss) income | (12,703) | (18,092) | ||
Retained earnings | 204,835 | 54,786 | ||
Total stockholders' equity | 219,636 | 48,814 | ||
Total liabilities and stockholders' equity | $ 2,672,719 | $ 2,525,323 | ||
Halozyme Therapeutics, Inc GAAP to Non-GAAP Reconciliations EBITDA (Unaudited) (In thousands) | ||||
Three Months Ended | ||||
March 31, | ||||
2026 | 2025 | |||
GAAP Net Income | $ 150,049 | $ 118,095 | ||
Adjustments | ||||
Investment and other income, net | (1,318) | (6,819) | ||
Interest expense | 5,508 | 4,525 | ||
Income tax expense | 30,278 | 25,733 | ||
Depreciation and amortization | 33,733 | 20,449 | ||
EBITDA | 218,250 | 161,983 | ||
Adjustments | ||||
Intellectual property litigation costs(1) | 11,249 | — | ||
Adjusted EBITDA | $ 229,499 | $ 161,983 | ||
(1) | Adjustment relates to litigation costs incurred by Halozyme in connection with Halozyme's patent infringement litigation against Merck Sharp & Dohme LLC ("Merck"). These charges are excluded because the Company does not believe they are reflective of the Company's ongoing business and operating results. |
Halozyme Therapeutics, Inc GAAP to Non-GAAP Reconciliations Net Income and Diluted EPS (Unaudited) (In thousands, except per share amounts) | ||||
Three Months Ended | ||||
March 31, | ||||
2026 | 2025 | |||
GAAP Net Income | $ 150,049 | $ 118,095 | ||
Adjustments | ||||
Share-based compensation | 16,637 | 10,673 | ||
Amortization of debt discount | 2,245 | 1,846 | ||
Amortization of intangible assets | 29,512 | 17,762 | ||
Intellectual property litigation costs(1) | 11,249 | — | ||
Income tax effect of above adjustments(2) | (15,396) | (8,872) | ||
Non-GAAP Net Income | $ 194,296 | $ 139,504 | ||
GAAP Diluted EPS | $ 1.22 | $ 0.93 | ||
Adjustments | ||||
Share-based compensation | 0.14 | 0.08 | ||
Amortization of debt discount | 0.02 | 0.01 | ||
Amortization of intangible assets | 0.24 | 0.14 | ||
Intellectual property litigation costs(1) | 0.09 | — | ||
Income tax effect of above adjustments(2) | (0.13) | (0.07) | ||
Non-GAAP Diluted EPS | $ 1.60 | $ 1.11 | ||
GAAP Diluted Shares | 122,875 | 126,644 | ||
Adjustments | ||||
Adjustment for dilutive impact of 2028 Convertible Senior Notes(3) | (1,723) | (458) | ||
Non-GAAP Diluted Shares | 121,152 | 126,186 | ||
Dollar amounts, as presented, are rounded. Consequently, totals may not add up. | ||||
(1) | Adjustment relates to litigation costs incurred by Halozyme in connection with Halozyme's patent infringement litigation against Merck. These charges are excluded because the Company does not believe they are reflective of the Company's ongoing business and operating results. |
(2) | Adjustments relate to taxes for the reconciling items, as well as excess benefits or tax deficiencies from share-based compensation, and the quarterly impact of other discrete items. |
(3) | Adjustment made for the dilutive effect of our Convertible Senior Notes due 2028 when the effect is not the same on a GAAP and Non-GAAP basis for the reporting period. |
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SOURCE Halozyme Therapeutics, Inc.