Exelixis Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.15%.
Did EXEL Beat Earnings? Q2 2025 Results
Exelixis delivered a split verdict in its second quarter of 2025, posting a non-GAAP earnings beat that was undercut by a revenue shortfall, leaving investors to weigh a complicated set of results. The company earned $0.75 per diluted share on a non-GAAP basis, clearing the $0.64 consensus estimate by 16.53%, yet revenue of $568.26 million fell just short of the $579.47 million Wall Street had expected and declined 10.8% from the year-ago period. The revenue drop was largely a math problem from 2024: a $150 million commercial milestone from Ipsen that boosted collaboration revenues a year ago simply did not repeat, masking what was otherwise solid underlying momentum, as net product revenues climbed to $520.01 million from $437.58 million. A positive phase 3 outcome for zanzalintinib in colorectal cancer added a pipeline catalyst, though the decision to abandon STELLAR-305 in head and neck cancer contributed to a sharp post-earnings stock selloff. Exelixis maintained its full-year 2025 guidance, targeting total revenues of $2.25 billion to $2.35 billion.
- Increased CABOMETYX sales volume driving net product revenue growth
- Successful early U.S. launch of CABOMETYX in advanced neuroendocrine tumors (NET) representing ~4% of CABOMETYX business
- Lower weighted-average diluted shares outstanding from stock repurchase programs favorably impacting EPS
- Decrease in collaboration revenues due to non-recurrence of $150 million Ipsen milestone from Q2 2024
“While early in the launch, we're very pleased with the reception that CABOMETYX has received in advanced neuroendocrine tumors (NET). Our commercial team rapidly mobilized on the U.S. NET launch following approval in March, capturing a leading share of new patient starts among oral therapies in second-line and later settings with NET representing approximately four percent of our overall CABOMETYX business in the second quarter. We will continue to track the launch trajectory and provide updates to our 2025 full year financial guidance, as appropriate.”
Exelixis CEO, on the earnings call
Forward Guidance & Outlook
Exelixis maintained its previously provided full-year 2025 financial guidance: total revenues of $2.25 billion to $2.35 billion; net product revenues of $2.05 billion to $2.15 billion; cost of goods sold of 4%-5% of net product revenues; R&D expenses of $925 million to $975 million (including $50 million non-cash stock-based compensation); SG&A expenses of $475 million to $525 million (including $80 million non-cash stock-based compensation); and effective tax rate of 21%-23%. The company noted it will continue to track the CABOMETYX NET launch trajectory and provide guidance updates as appropriate. STELLAR-304 top-line results are expected in H1 2026. The company plans to announce an additional wave of zanzalintinib pivotal trials in coming months. The One Big Beautiful Bill Act is estimated to provide a $147 million federal cash tax benefit for previously unamortized domestic R&E expenditures.
EXEL YoY Financials
EXEL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.