Jazz Pharmaceuticals Announces Full Year and Fourth Quarter 2025 Financial Results and Provides 2026 Financial Guidance
Rhea-AI Summary
Jazz Pharmaceuticals (Nasdaq: JAZZ) reported record 2025 total revenue of $4.3 billion (up 5% YoY) and 4Q25 revenue of $1.2 billion (up 10% YoY). Key drivers included Xywav $1.7B (+12%), Epidiolex $1.1B (+9%), and Modeyso launch sales of $48M. GAAP net loss was $356M for 2025 with non-GAAP adjusted net income of $522M. Jazz expects 2026 total revenues of $4.25–$4.50 billion and plans an sBLA submission for zanidatamab under RTOR in 1Q26 with potential 1L HER2+ GEA launch in 2H26.
Positive
- Total revenue +5% to $4.3 billion in 2025
- Xywav net sales $1.7 billion (+12% YoY)
- Epidiolex net sales $1.1 billion (+9% YoY)
- Modeyso launch generated $48 million in 2025
- sBLA submission for zanidatamab expected 1Q26 (RTOR)
Negative
- GAAP net loss of $356 million for 2025
- Outstanding long-term debt of $5.4 billion
- SG&A impacted by $234M Xyrem and $90M Avadel settlements
Market Reaction – JAZZ
Following this news, JAZZ has gained 4.07%, reflecting a moderate positive market reaction. The stock is currently trading at $180.90. This price movement has added approximately $413M to the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
JAZZ gained 0.62% on strong 2025 results and 2026 guidance while close peers showed mixed moves (e.g., CORT +2.11%, LEGN -6.26%, TECH -4.65%). Only one peer (MRNA) appeared in momentum scans, down modestly. This points to a stock-specific reaction rather than a broad biotech move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Positive | -0.4% | Q3 2025 revenues up 7% YoY with strong Xywav, Epidiolex and Modeyso launch. |
| Aug 05 | Q2 2025 earnings | Negative | -6.4% | Modest revenue growth but sizable GAAP net loss driven by Chimerix IPR&D expense. |
| Feb 25 | FY 2024 earnings | Positive | +3.2% | Record 2024 revenues of <b>$4.1B</b> with solid growth in Xywav and Epidiolex. |
| Nov 06 | Q3 2024 earnings | Positive | +6.8% | Q3 2024 revenue rose 14% YoY and full-year guidance of <b>$4.0–$4.1B</b> affirmed. |
| Jul 31 | Q2 2024 earnings | Positive | +3.8% | Double‑digit revenue growth with strong Xywav, Epidiolex and oncology contributions. |
Earnings releases have generally been received positively, with four of the last five showing price moves aligned with the news tone and one notable divergence.
Over the last five earnings cycles from Q2 2024 through Q3 2025, Jazz reported steady revenue growth driven by Xywav, Epidiolex and oncology, while regularly updating annual guidance. Some quarters paired strong top-line trends with heavier items like IPR&D charges or leadership changes. Despite one divergence, most earnings days saw share reactions that matched the fundamentally positive updates, framing today’s record 2025 revenues and 2026 guidance as a continuation of that trajectory.
Historical Comparison
In the past five earnings releases, JAZZ moved an average of 1.37% on the day. Today’s 0.62% move on record 2025 results and 2026 guidance falls within that historical range but is somewhat more muted.
Sequential earnings from Q2 2024 through Q3 2025 show consistent revenue growth, expanding contributions from key neurology and oncology assets, and progressively refined annual guidance leading into the 2025 full-year update.
Market Pulse Summary
This announcement highlights record 2025 revenue of $4.3 billion, double‑digit 4Q25 growth, and 2026 revenue guidance of $4.25–$4.50 billion, underpinned by Xywav, Epidiolex and new oncology launches like Modeyso and Ziihera. Compared with prior earnings updates, it extends a multi‑year growth story. Investors may watch execution on zanidatamab’s regulatory path, expense discipline, and the balance of cash ($2.4 billion) and long‑term debt ($5.4 billion).
Key Terms
her2+ medical
gastroesophageal adenocarcinoma medical
breakthrough therapy designation regulatory
national comprehensive cancer network medical
phase 3 medical
exchangeable senior notes financial
AI-generated analysis. Not financial advice.
– Record total revenues of
– Expect to complete sBLA submission in 1Q26 under RTOR for zanidatamab in HER2+ 1L GEA –
– Xywav® achieved
– Epidiolex® achieved
– Strong Modeyso™ launch with
– Expect 2026 total revenues of
"2025 was an exceptional year for Jazz, representing our 21st consecutive year of top-line growth and underscoring our commitment to operational excellence as we deliver meaningful innovation for patients," said Renee Gala, president and chief executive officer of Jazz Pharmaceuticals. "In the fourth quarter, our disciplined execution resulted in
"Jazz had a transformative year across our R&D pipeline, led by the HERIZON-GEA-01 data, which we believe firmly positions zanidatamab as the HER2-targeted agent of choice, with the potential to reshape first-line treatment for HER2+ metastatic GEA patients," said Rob Iannone, M.D., M.S.C.E., executive vice president, global head of research and development, and chief medical officer of Jazz Pharmaceuticals. "We expect to build on this progress in 2026, as these results not only highlight zanidatamab's potential to help patients with GEA, but also de-risk our clinical trials in additional indications, including HER2+ metastatic breast cancer."
Key 2025 Highlights
- Total revenues in 2025 grew to
$4.3 billion 5% year-over-year (YoY)), generating$1.4 billion - Research & Development:
- Practice-changing Phase 3 HERIZON-GEA-01 results support zanidatamab as the HER2-targeted agent of choice in HER2+ 1L gastroesophageal adenocarcinoma (GEA), regardless of PD-L1 status.
- Multiple registrational trials of zanidatamab are underway, including in metastatic breast cancer (mBC), supporting a broad development program designed to maximize patient impact and long-term shareholder value.
- Commercial:
- Continued leadership in rare sleep with Xywav net product sales increasing to
$1.7 billion 12% YoY) and total sleep franchise1 revenues exceeding$2 billion - Epidiolex/Epidyolex® generated more than
$1 billion 9% YoY). - Completed acquisition of Chimerix Inc., secured FDA approval for and successfully launched Modeyso (dordaviprone) in H3 K27M-mutant diffuse midline glioma, achieving
$48 million - Received FDA approval and launched Zepzelca, in combination with atezolizumab, for first-line maintenance treatment of extensive-stage small cell lung cancer.
- Continued leadership in rare sleep with Xywav net product sales increasing to
- Company expects 2026 total revenue of between
$4.25 $4.50 billion - Tom
Riga was named chief business officer to accelerate corporate development efforts across rare disease.
____________________________ | |
1 | Rare sleep franchise consists of Xywav, Xyrem® and high-sodium oxybate authorized generic (AG) royalties. |
Business Updates
Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution:
- Xywav net product sales increased
12% to$1.7 billion 16% to$465 million - Strong new patient growth continued, with approximately 500 net patient adds in 4Q25. There were approximately 16,175 active patients exiting the quarter, comprised of approximately 10,950 narcolepsy patients and approximately 5,225 idiopathic hypersomnia (IH) patients.
Epidiolex/Epidyolex (cannabidiol):
- Epidiolex/Epidyolex achieved blockbuster status in 2025 with net product sales increasing
9% to$1.1 billion 4% to$287 million
Ziihera® (zanidatamab-hrii):
- Ziihera net product sales in biliary tract cancer (BTC) were
$25 million $9 million - Expect to complete supplemental biologics license application (sBLA) submission under Real Time Oncology Review (RTOR) in 1Q26 with potential launch in 1L HER2+ GEA in 2H26.
- FDA granted Breakthrough Therapy designation (BTD) for zanidatamab's development for patients with HER2+ unresectable locally advanced or metastatic GEA.
- Submitted HERIZON-GEA-01 data for potential inclusion in National Comprehensive Cancer Network (NCCN) guidelines.
- EmpowHER-BC-303 trial in mBC patients previously treated with, or intolerant to, trastuzumab deruxtecan on track to complete enrollment in 1H27, with top-line results expected in late 2027 or early 2028.
Modeyso (dordaviprone):
- Following product launch in August 2025, Modeyso net product sales were
$48 million $37 million - The Company sold its Rare Pediatric Disease Priority Review Voucher for gross proceeds of
$200 million 50% to Jazz).
Zepzelca (lurbinectedin):
- Zepzelca net product sales decreased
4% to$307 million 15% to$90 million
Financial Highlights
Three Months Ended December 31, | Year Ended December 31, | ||||||
(In thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||
Total revenues | $ 1,197,926 | $ 1,088,173 | $ 4,267,586 | $ 4,068,950 | |||
GAAP net income (loss) | $ 203,451 | $ 191,115 | $ (356,148) | $ 560,120 | |||
Non-GAAP adjusted net income1 | $ 420,888 | $ 400,525 | $ 521,924 | $ 1,351,970 | |||
GAAP earnings (loss) per share | $ 3.21 | $ 3.11 | $ (5.84) | $ 8.65 | |||
Non-GAAP adjusted earnings per share1 | $ 6.64 | $ 6.51 | $ 8.38 | $ 20.65 | |||
____________________________ | |
1. | Commencing with the first quarter of 2025, we are no longer including an adjustment for non-cash interest expense in the Company's non-GAAP adjusted financial measures and for the purposes of comparability, non-GAAP adjusted financial measures for the 2024 periods have been updated to reflect this change. See "Non-GAAP Financial Measures" below. |
Reconciliations of applicable GAAP reported to non-GAAP adjusted information are included at the end of this press release.
Total Revenues
Three Months Ended December 31, | Year Ended December 31, | ||||||
(In thousands) | 2025 | 2024 | 2025 | 2024 | |||
Xywav | $ 465,451 | $ 400,964 | $ 1,656,986 | $ 1,473,202 | |||
Xyrem | 37,781 | 49,290 | 146,034 | 233,816 | |||
Epidiolex/Epidyolex | 287,122 | 275,047 | 1,059,197 | 972,423 | |||
Sativex | 1,503 | 5,173 | 16,277 | 18,877 | |||
Total Neuroscience | 791,857 | 730,474 | 2,878,494 | 2,698,318 | |||
Rylaze/Enrylaze | 108,160 | 101,487 | 402,920 | 410,846 | |||
Zepzelca | 90,440 | 78,328 | 307,309 | 320,318 | |||
Defitelio/defibrotide | 58,872 | 57,650 | 199,392 | 216,565 | |||
Vyxeos | 34,731 | 53,247 | 146,709 | 162,595 | |||
Modeyso | 36,541 | — | 48,043 | — | |||
Ziihera | 8,538 | 1,051 | 24,810 | 1,051 | |||
Total Oncology | 337,282 | 291,763 | 1,129,183 | 1,111,375 | |||
Other | 3,309 | 2,974 | 14,172 | 11,471 | |||
Product sales, net | 1,132,448 | 1,025,211 | 4,021,849 | 3,821,164 | |||
High-sodium oxybate AG royalty revenue | 55,696 | 55,307 | 211,725 | 217,575 | |||
Other royalty and contract revenues | 9,782 | 7,655 | 34,012 | 30,211 | |||
Total revenues | $ 1,197,926 | $ 1,088,173 | $ 4,267,586 | $ 4,068,950 | |||
Total revenues increased
Total neuroscience revenue, including high-sodium oxybate AG royalty revenue, was
Oncology net product sales were
Operating Expenses and Income Tax (Benefit) Expense
Three Months Ended December 31, | Year Ended December 31, | ||||||
(In thousands, except percentages) | 2025 | 2024 | 2025 | 2024 | |||
GAAP: | |||||||
Cost of product sales | $ 153,528 | $ 128,713 | $ 503,296 | $ 445,713 | |||
Gross margin on product sales, net | 86.4 % | 87.4 % | 87.5 % | 88.3 % | |||
Selling, general and administrative | $ 406,212 | $ 369,287 | $ 1,809,271 | $ 1,385,294 | |||
% of total revenues | 33.9 % | 33.9 % | 42.4 % | 34.0 % | |||
Research and development | $ 213,909 | $ 240,500 | $ 782,736 | $ 884,000 | |||
% of total revenues | 17.9 % | 22.1 % | 18.3 % | 21.7 % | |||
Acquired in-process research and development | $ — | $ — | $ 947,862 | $ 10,000 | |||
Income tax (benefit) expense | $ 4,963 | $ (57,912) | $ (272,443) | $ (91,429) | |||
Effective tax rate | 2.4 % | (43.5) % | 43.4 % | (19.4) % | |||
Three Months Ended December 31, | Year Ended December 31, | ||||||
(In thousands, except percentages) | 2025 | 2024 | 2025 | 2024 | |||
Non-GAAP adjusted: | |||||||
Cost of product sales | $ 106,841 | $ 86,492 | $ 336,016 | $ 295,897 | |||
Gross margin on product sales, net | 90.6 % | 91.6 % | 91.6 % | 92.3 % | |||
Selling, general and administrative | $ 360,533 | $ 323,167 | $ 1,603,255 | $ 1,226,724 | |||
% of total revenues | 30.1 % | 29.7 % | 37.6 % | 30.1 % | |||
Research and development | $ 189,915 | $ 220,857 | $ 686,645 | $ 809,327 | |||
% of total revenues | 15.9 % | 20.3 % | 16.1 % | 19.9 % | |||
Acquired in-process research and development | $ — | $ — | $ 947,862 | $ 10,000 | |||
Income tax (benefit) expense | $ 73,628 | $ (435) | $ (26,467) | $ 127,093 | |||
Effective tax rate | 14.9 % | (0.1) % | (5.3) % | 8.6 % | |||
Changes in operating expenses and income tax (benefit) expense in 2025 and 4Q25 over the prior year periods are primarily due to the following:
- Cost of product sales, on a GAAP and non-GAAP adjusted basis, increased in 2025 compared to 2024, primarily due to changes in product mix. Cost of product sales, on a GAAP basis, in 2025 included higher acquisition accounting inventory fair value step up expense compared to 2024. Cost of product sales, on a GAAP and non-GAAP adjusted basis, increased in 4Q25 compared to 4Q24, primarily due to changes in product mix, partially offset by lower inventory provisions.
- Selling, general and administrative (SG&A) expenses, on a GAAP and non-GAAP adjusted basis, increased in 2025 compared to 2024, primarily due to Xyrem antitrust litigation settlements of
$234 million $90 million - Research and development (R&D) expenses, on a GAAP and non-GAAP adjusted basis, decreased in 2025 and 4Q25, compared to the same periods in 2024, primarily due to lower clinical study costs primarily related to zanidatamab as a result of timing of clinical trial activities, JZP385 (essential tremor) following discontinuation of this program, and JZP258 (XYLO/DUET) due to the completion of these trials in the first half of 2025, partially offset by the addition of costs relating to Modeyso and increased personnel costs following the acquisition of Chimerix.
- Acquired in-process research and development (IPR&D) in 2025, on a GAAP and non-GAAP adjusted basis, represents the value allocated to Modeyso in the Chimerix Acquisition of
$905 million $43 million - Income tax benefit in 2025, on a GAAP and non-GAAP adjusted basis, included a benefit of
$213 million U.S. federal and state deferred tax assets acquired through the Chimerix acquisition. Income tax benefit, on a GAAP and non-GAAP adjusted basis, in 4Q24 was primarily due to patent box benefits recognized.
Cash Flow and Balance Sheet
As of December 31, 2025, cash, cash equivalents and investments were
2026 Financial Guidance
Jazz Pharmaceutical's full year 2026 financial guidance is as follows:
(In millions) | Guidance |
Total Revenues | |
(In millions, except percentages) | GAAP | Non-GAAP | |
Gross margin % | |||
SG&A expenses | |||
R&D expenses | |||
Effective tax rate | |||
Weighted-average ordinary shares outstanding2 | 65 - 66 | 65 - 66 |
___________________________ | |
1. | See "Non-GAAP Financial Measures" below. Reconciliations of non-GAAP adjusted guidance measures are included in the table titled "Reconciliation of 2026 GAAP to Non-GAAP Guidance Measures". |
2. | Assumes inclusion of shares outstanding in relation to the |
Conference Call Details
Jazz Pharmaceuticals will host an investor conference call and live audio webcast today at 4:30 p.m. ET (9:30 p.m. GMT) to provide a business and financial update and discuss its 2025 full year and 4Q25 results and 2026 guidance.
Interested parties may register for the call here or via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com. To ensure a timely connection, it is recommended that participants register at least 15 minutes prior to the scheduled webcast.
A replay of the webcast will be available via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com.
About Jazz Pharmaceuticals
Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharma company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with rare disease — often with limited or no therapeutic options. We have a diverse portfolio of medicines, including leading therapies addressing epilepsies, cancers and sleep disorders. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics. Jazz is headquartered in
Non-GAAP Financial Measures
To supplement Jazz Pharmaceuticals' financial results and guidance presented in accordance with
The Company believes that each of these non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors and analysts and that each of these non-GAAP financial measures, when considered together with the Company's financial information prepared in accordance with GAAP, can enhance investors' and analysts' ability to meaningfully compare the Company's results from period to period, to its forward-looking guidance, and to identify operating trends in the Company's business. In addition, these non-GAAP financial measures are regularly used by investors and analysts to model and track the Company's financial performance. Jazz Pharmaceuticals' management also regularly uses these non-GAAP financial measures internally to understand, manage and evaluate the Company's business and to make operating decisions, and compensation of executives is based in part on certain of these non-GAAP financial measures. Because these non-GAAP financial measures are important internal measurements for Jazz Pharmaceuticals' management, the Company also believes that these non-GAAP financial measures are useful to investors and analysts since these measures allow for greater transparency with respect to key financial metrics the Company uses in assessing its own operating performance and making operating decisions. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures; should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP; have no standardized meaning prescribed by GAAP; and are not prepared under any comprehensive set of accounting rules or principles in the reconciliation tables that follow. 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 has ceased, and may in the future cease, to exclude items that it has historically excluded for purposes of its non-GAAP financial measures. In this regard, commencing with the first quarter of 2025, the Company is no longer including an adjustment for non-cash interest expense in the Company's non-GAAP adjusted financial measures. For purposes of comparability, non-GAAP adjusted financial measures for the 2024 periods have been updated to reflect this change. Likewise, the Company may determine to modify the nature of its adjustments to arrive at its non-GAAP financial measures. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measures as used by Jazz Pharmaceuticals in this press release and the accompanying tables have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to: the Company's growth prospects and future financial and operating results, including the Company's 2026 financial guidance and the Company's expectations related thereto, including with respect to anticipated catalysts; anticipated multiple near-term pipeline catalysts that each represent significant opportunities to drive greater revenue and create long-term value; the Company's advancement of pipeline programs and the timing of development activities, regulatory activities, approvals, and submissions related thereto, including the timing of the completion of the submission of the sBLA for, and launch and approval of, zanidatamab in 1L GEA; planned or anticipated clinical trial events, including with respect to initiations, enrollment and data read-outs, and the anticipated timing thereof; and the Company's development, regulatory and commercialization strategy; the Company's expectations with respect to its products and product candidates and the potential of the Company's products and product candidates and the potential regulatory path related thereto; including zanidatamab's potential to be the HER2-targeted agent of choice in HER2+ 1L GEA, regardless of PD-L1 status, and to reshape first-line treatment for HER2+ metastatic GEA patients; the Company's capital allocation and corporate development strategy; the potential successful future development, manufacturing, regulatory and commercialization activities; the Company's ability to realize the commercial potential of its products; the Company's net product sales and goals for net product sales from new and acquired products; the Company's views and expectations relating to its patent portfolio, including with respect to expected patent protection, as well as expectations with respect to exclusivity; the Company's clinical trials confirming clinical benefit or enabling regulatory submissions, including the potential of the ongoing Phase 3 ACTION trial to confirm clinical benefit of Modeyso in recurrent H3 K27M-mutant diffuse glioma and extend to use in first-line patients; and other statements that are not historical facts. These forward-looking statements are based on the Company's current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties.
Actual results and the timing of events could differ materially from those anticipated in such forward- looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: maintaining or increasing sales of, and revenue from, Xywav, Epidiolex/Epidyolex, Ziihera, Modeyso, Zepzelca and other lead marketed products; effectively launching and commercializing the Company's other products and product candidates; the successful completion of development and regulatory activities with respect to the Company's product candidates; obtaining and maintaining adequate coverage and reimbursement for the Company's products; the time-consuming and uncertain regulatory approval process, including the risk that the Company's current and/or planned regulatory submissions may not be submitted, accepted or approved by applicable regulatory authorities in a timely manner or at all, including the risk that the Company's sBLA submission for zanidatamab in 1L GEA may not be completed or, if completed, approved in a timely manner or at all; the costly and time-consuming pharmaceutical product development process and the uncertainty of clinical success, including risks related to failure or delays in successfully initiating or completing clinical trials and assessing patients; global economic, financial, and healthcare system disruptions and the current and potential future negative impacts to the Company's business operations and financial results; protecting and enhancing the Company's intellectual property rights and the Company's commercial success being dependent upon the Company obtaining, maintaining and defending intellectual property protection and exclusivity for its products and product candidates; delays or problems in the supply or manufacture of the Company's products and product candidates; complying with applicable
JAZZ PHARMACEUTICALS PLC CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In thousands, except per share amounts) (Unaudited)
| |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues: | |||||||
Product sales, net | $ 1,132,448 | $ 1,025,211 | $ 4,021,849 | $ 3,821,164 | |||
Royalties and contract revenues | 65,478 | 62,962 | 245,737 | 247,786 | |||
Total revenues | 1,197,926 | 1,088,173 | 4,267,586 | 4,068,950 | |||
Operating expenses: | |||||||
Cost of product sales (excluding amortization of | 153,528 | 128,713 | 503,296 | 445,713 | |||
Selling, general and administrative | 406,212 | 369,287 | 1,809,271 | 1,385,294 | |||
Research and development | 213,909 | 240,500 | 782,736 | 884,000 | |||
Intangible asset amortization | 169,742 | 158,903 | 654,661 | 627,313 | |||
Acquired in-process research and development | — | — | 947,862 | 10,000 | |||
Total operating expenses | 943,391 | 897,403 | 4,697,826 | 3,352,320 | |||
Income (loss) from operations | 254,535 | 190,770 | (430,240) | 716,630 | |||
Interest expense, net | (45,406) | (51,256) | (195,051) | (238,097) | |||
Foreign exchange loss | (658) | (6,295) | (2,568) | (8,182) | |||
Income (loss) before income tax expense (benefit) and | 208,471 | 133,219 | (627,859) | 470,351 | |||
Income tax expense (benefit) | 4,963 | (57,912) | (272,443) | (91,429) | |||
Equity in loss of investees | 57 | 16 | 732 | 1,660 | |||
Net income (loss) | $ 203,451 | $ 191,115 | $ (356,148) | $ 560,120 | |||
Net income (loss) per ordinary share: | |||||||
Basic | $ 3.33 | $ 3.16 | $ (5.84) | $ 9.06 | |||
Diluted | $ 3.21 | $ 3.11 | $ (5.84) | $ 8.65 | |||
Weighted-average ordinary shares used in per share | 61,058 | 60,538 | 60,981 | 61,838 | |||
Weighted-average ordinary shares used in per share | 63,433 | 61,503 | 60,981 | 66,007 | |||
JAZZ PHARMACEUTICALS PLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
| |||
December 31, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,391,899 | $ 2,412,864 | |
Investments | 1,050,000 | 580,000 | |
Accounts receivable, net of allowances | 830,747 | 716,765 | |
Inventories | 416,962 | 480,445 | |
Prepaid expenses | 152,481 | 177,411 | |
Other current assets | 323,954 | 261,543 | |
Total current assets | 4,166,043 | 4,629,028 | |
Property, plant and equipment, net | 199,857 | 173,413 | |
Operating lease assets | 58,880 | 53,582 | |
Intangible assets, net | 4,429,510 | 4,755,695 | |
Goodwill | 1,829,340 | 1,716,323 | |
Deferred tax assets, net | 869,130 | 560,245 | |
Deferred financing costs | 7,550 | 9,489 | |
Other non-current assets | 99,030 | 114,482 | |
Total assets | $ 11,659,340 | $ 12,012,257 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 122,061 | $ 77,869 | |
Accrued liabilities | 1,034,170 | 910,947 | |
Current portion of long-term debt | 1,029,903 | 31,000 | |
Income taxes payable | 56,387 | 18,757 | |
Total current liabilities | 2,242,521 | 1,038,573 | |
Long-term debt, less current portion | 4,328,354 | 6,077,640 | |
Operating lease liabilities, less current portion | 50,892 | 38,938 | |
Deferred tax liabilities, net | 594,470 | 676,736 | |
Other non-current liabilities | 124,519 | 86,614 | |
Total shareholders' equity | 4,318,584 | 4,093,756 | |
Total liabilities and shareholders' equity | $ 11,659,340 | $ 12,012,257 | |
JAZZ PHARMACEUTICALS PLC SUMMARY OF CASH FLOWS (In thousands) (Unaudited)
| |||
Year Ended December 31, | |||
2025 | 2024 | ||
Net cash provided by operating activities | $ 1,355,773 | $ 1,395,908 | |
Net cash used in investing activities | (1,509,913) | (508,195) | |
Net cash provided by (used in) financing activities | (873,380) | 20,516 | |
Effect of exchange rates on cash and cash equivalents | 6,555 | (1,675) | |
Net increase (decrease) in cash and cash equivalents | $ (1,020,965) | $ 906,554 | |
JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION (In thousands, except per share amounts) (Unaudited)
| |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Net | Diluted | Net | Diluted | Net | Diluted | Net | Diluted | ||||||||
GAAP reported | $ 203,451 | $ 3.21 | $ 191,115 | $ 3.11 | $ (5.84) | $ 560,120 | $ 8.65 | ||||||||
Intangible asset | 169,742 | 2.68 | 158,903 | 2.58 | 654,661 | 10.51 | 627,313 | 9.50 | |||||||
Share-based | 70,854 | 1.12 | 70,190 | 1.14 | 291,133 | 4.67 | 248,045 | 3.76 | |||||||
Acquisition accounting | 40,604 | 0.64 | 37,794 | 0.61 | 147,948 | 2.38 | 135,014 | 2.05 | |||||||
Integration related | 4,902 | 0.08 | — | — | 30,306 | 0.49 | — | — | |||||||
Income tax effect of | (68,665) | (1.09) | (57,477) | (0.93) | (245,976) | (3.95) | (218,522) | (3.31) | |||||||
Effect of potentially | — | — | — | — | — | 0.12 | — | — | |||||||
Non-GAAP adjusted | $ 420,888 | $ 6.64 | $ 400,525 | $ 6.51 | $ 521,924 | $ 8.38 | $ 1,351,970 | $ 20.65 | |||||||
Weighted-average | 63,433 | 61,503 | 60,981 | 66,007 | |||||||||||
Dilutive effect of | — | — | 1,304 | — | |||||||||||
Dilutive effect of the 2030 | — | — | 3 | — | |||||||||||
Weighted-average ordinary | 63,433 | 61,503 | 62,288 | 66,007 | |||||||||||
________________________________________________ | |
Explanation of Adjustments and Certain Line Items: | |
1. | Diluted EPS was calculated using the "if-converted" method in relation to the 2026 Notes. In July 2024, we made the irrevocable election to net share settle the 2026 Notes. As a result, the assumed issuance of ordinary shares upon exchange of the 2026 Notes has only been included in the calculation of diluted EPS, on a GAAP and non-GAAP adjusted basis, up to the date the irrevocable election was made. Net income per diluted share, on a GAAP and on a non-GAAP adjusted basis, for the year ended December 31, 2024, included 3.5 million shares related to the assumed conversion of the 2026 Notes and the associated interest expense, net of tax, add-back to GAAP reported net income and non-GAAP adjusted net income of |
2. | Integration related expenses with respect to the Chimerix acquisition. |
JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION - CERTAIN LINE ITEMS (In thousands, except percentages) (Unaudited)
| |||||||||||||||
Three months ended December 31, 2025 | |||||||||||||||
Cost of | Gross | SG&A | R&D | Intangible | Interest | Income tax | Effective | ||||||||
GAAP Reported | 86.4 % | $ 406,212 | $ 213,909 | $ 45,406 | $ 4,963 | 2.4 % | |||||||||
Non-GAAP Adjustments: | |||||||||||||||
Intangible asset amortization | — | — | — | — | (169,742) | — | — | — | |||||||
Share-based compensation expense | (5,068) | 0.5 | (42,654) | (23,132) | — | — | — | — | |||||||
Acquisition accounting inventory fair | (40,604) | 3.7 | — | — | — | — | — | — | |||||||
Integration related expenses | (1,015) | — | (3,025) | (862) | — | — | — | — | |||||||
Income tax effect of above adjustments | — | — | — | — | — | — | 68,665 | 12.5 | |||||||
Total of non-GAAP adjustments | (46,687) | 4.2 | (45,679) | (23,994) | (169,742) | — | 68,665 | 12.5 | |||||||
Non-GAAP Adjusted | 90.6 % | $ 360,533 | $ 189,915 | $ — | $ 45,406 | $ 73,628 | 14.9 % | ||||||||
Three months ended December 31, 2024 | |||||||||||||||
Cost of | Gross | SG&A | R&D | Intangible | Interest | Income tax | Effective | ||||||||
GAAP Reported | 87.4 % | $ 369,287 | $ 240,500 | $ 51,256 | (43.5) % | ||||||||||
Non-GAAP Adjustments: | |||||||||||||||
Intangible asset amortization | — | — | — | — | (158,903) | — | — | — | |||||||
Share-based compensation expense | (4,427) | 0.5 | (46,120) | (19,643) | — | — | — | — | |||||||
Acquisition accounting inventory fair | (37,794) | 3.7 | — | — | — | — | — | — | |||||||
Income tax effect of above adjustments | — | — | — | — | — | — | 57,477 | 43.4 | |||||||
Total of non-GAAP adjustments | (42,221) | 4.2 | (46,120) | (19,643) | (158,903) | — | 57,477 | 43.4 | |||||||
Non-GAAP Adjusted | $ 86,492 | 91.6 % | $ 323,167 | $ 220,857 | $ — | $ 51,256 | $ (435) | (0.1) % | |||||||
JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION - CERTAIN LINE ITEMS (In thousands, except percentages) (Unaudited)
| |||||||||||||||||
Year ended December 31, 2025 | |||||||||||||||||
Cost of | Gross | SG&A | R&D | Intangible | Acquired | Interest | Income tax | Effective | |||||||||
GAAP Reported | 87.5 % | $ 1,809,271 | $ 782,736 | $ 947,862 | $ 195,051 | $ (272,443) | 43.4 % | ||||||||||
Non-GAAP Adjustments: | |||||||||||||||||
Intangible asset amortization | — | — | — | — | (654,661) | — | — | — | — | ||||||||
Share-based compensation expense | (18,031) | 0.5 | (186,622) | (86,480) | — | — | — | — | — | ||||||||
Integration related expenses | (1,301) | — | (19,394) | (9,611) | — | — | — | — | — | ||||||||
Acquisition accounting inventory fair | (147,948) | 3.6 | — | — | — | — | — | — | — | ||||||||
Income tax effect of above adjustments | — | — | — | — | — | — | — | 245,976 | (48.7) | ||||||||
Total of non-GAAP adjustments | (167,280) | 4.1 | (206,016) | (96,091) | (654,661) | — | — | 245,976 | (48.7) | ||||||||
Non-GAAP Adjusted | 91.6 % | $ 1,603,255 | $ 686,645 | $ — | $ 947,862 | $ 195,051 | $ (26,467) | (5.3) % | |||||||||
Year ended December 31, 2024 | |||||||||||||||||
Cost of | Gross | SG&A | R&D | Intangible | Acquired | Interest | Income tax | Effective | |||||||||
GAAP Reported | 88.3 % | $ 884,000 | $ 627,313 | $ 10,000 | $ (91,429) | (19.4) % | |||||||||||
Non-GAAP Adjustments: | |||||||||||||||||
Intangible asset amortization | — | — | — | — | (627,313) | — | — | — | — | ||||||||
Share-based compensation expense | (14,802) | 0.5 | (158,570) | (74,673) | — | — | — | — | — | ||||||||
Acquisition accounting inventory fair | (135,014) | 3.5 | — | — | — | — | — | — | — | ||||||||
Income tax effect of above adjustments | — | — | — | — | — | — | — | 218,522 | 28.0 | ||||||||
Total of non-GAAP adjustments | (149,816) | 4.0 | (158,570) | (74,673) | (627,313) | — | — | 218,522 | 28.0 | ||||||||
Non-GAAP Adjusted | 92.3 % | $ 809,327 | $ — | $ 10,000 | $ 127,093 | 8.6 % | |||||||||||
JAZZ PHARMACEUTICALS PLC RECONCILIATION OF 2026 GAAP TO NON-GAAP GUIDANCE MEASURES
| |||
Projected Range | |||
(In millions, except percentages) | Low | High | |
GAAP gross margin on total revenues | 89 % | 90 % | |
Acquisition accounting inventory fair value step-up | 1 % | 1 % | |
Non-GAAP gross margin on total revenues | 90 % | 91 % | |
GAAP SG&A expenses | $ 1,424 | $ 1,497 | |
Share-based compensation expense | (164) | (177) | |
Non-GAAP SG&A expenses | $ 1,260 | $ 1,320 | |
GAAP R&D expenses | $ 811 | $ 867 | |
Share-based compensation expense | (86) | (92) | |
Non-GAAP R&D expenses | $ 725 | $ 775 | |
GAAP effective tax rate | 0 % | 10 % | |
Income tax effect of GAAP to non-GAAP reconciling items | 11.5 % | 3.5 % | |
Non-GAAP effective tax rate | 11.5 % | 13.5 % | |
Contacts:
Investors:
InvestorInfo@jazzpharma.com
Media:
CorporateAffairsMediaInfo@jazzpharma.com
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SOURCE Jazz Pharmaceuticals plc
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