Exelixis Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.89%.
Did EXEL Beat Earnings? Q3 2025 Results
Exelixis posted a convincing beat across both top and bottom lines in the third quarter of 2025, with non-GAAP earnings of $0.78 per diluted share coming in 17.17% above the $0.67 consensus estimate and total revenues of $597.75 million edging past the $589.75 million Wall Street expected, up 10.8% from the year-ago period. The primary engine behind the quarter was the cabozantinib franchise, where U.S. net product revenues climbed to $542.93 million from $478.06 million a year earlier on higher sales volume, with CABOMETYX alone contributing $539.90 million. GAAP net income rose to $193.58 million, or $0.69 per diluted share, aided in part by a $51.67 million non-cash impairment charge that weighed on the prior-year comparison. Looking ahead, Exelixis narrowed its full-year 2025 revenue guidance to $2.30 billion to $2.35 billion and reduced its R&D expense outlook to $850 million to $900 million, while also flagging plans to submit its first NDA for zanzalintinib before year-end, pending FDA availability amid the federal government shutdown.
- Sustained growth in CABOMETYX prescriptions for renal cell carcinoma and neuroendocrine tumors
- Increased sales volume driving U.S. net product revenue growth
- 2.8% wholesale acquisition cost increase for CABOMETYX effective January 1, 2025
- Higher royalty revenues from Ipsen's ex-U.S. cabozantinib sales
- Lower R&D expenses due to decreased clinical trial costs and licensing costs
- Share repurchases reducing diluted shares outstanding from 291.5 million to 278.5 million year-over-year
“In the third quarter of 2025, Exelixis gained momentum in the cabozantinib franchise and delivered on critical strategic priorities across the research & development portfolio. The cabozantinib franchise continued to outperform with sustained growth in renal cell carcinoma and neuroendocrine tumors, where CABOMETYX built on its position as the leading oral therapy for new patient market share in second-line and later settings.”
Exelixis CEO, on the earnings call
Forward Guidance & Outlook
Exelixis updated its fiscal year 2025 guidance: total revenues of $2.30 billion to $2.35 billion (narrowed from previous $2.25 billion to $2.35 billion); net product revenues of $2.10 billion to $2.15 billion; cost of goods sold at ~4% of net product revenues (improved from 4%-5%); R&D expenses of $850 million to $900 million (reduced from $925 million to $975 million); SG&A expenses of $500 million to $525 million (raised from $475 million to $525 million); and effective tax rate of 17%-18% (reduced from 21%-23%). The company intends to submit its first NDA for zanzalintinib in combination with atezolizumab for previously treated metastatic colorectal cancer in the U.S. before year-end 2025, subject to FDA availability given the federal government shutdown. Additional zanzalintinib pivotal trials are planned in post-chemotherapy adjuvant CRC settings and in meningiomas.
EXEL YoY Financials
EXEL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.