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HALO Stock Up on Q2 Earnings and Revenue Beat, Raised 2025 View

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Key Takeaways

  • {\"0\":\"HALO posted Q2 EPS of $1.54, which beat estimates by $0.31 and rose 69.2% year over year.\",\"1\":\"Q2 revenues grew 41% to $325.7M, driven by strong royalties from Darzalex SC, Phesgo, and Vyvgart Hytrulo.\",\"2\":\"HALO raised its 2025 guidance for revenues, royalties, EBITDA and EPS on continued royalty strength.\"}

Halozyme Therapeutics (HALO - Free Report) reported second-quarter 2025 adjusted earnings of $1.54 per share, which comprehensively beat the Zacks Consensus Estimate of $1.23. Earnings rose 69.2% year over year.

Total revenues in the second quarter increased 41% year over year to $325.7 million. Revenues too surpassed the Zacks Consensus Estimate of $286 million.

The top-line growth was primarily driven by higher royalty payments from Roche (RHHBY - Free Report) for Phesgo and J&J (JNJ - Free Report) for subcutaneous Darzalex (daratumumab), as well as argenx’s Vyvgart Hytrulo during the second quarter.

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 formulation of J&J’s Darzalex and Roche’s Phesgo.

Shares of Halozyme were up 5.3% in after-hours trading on Aug. 5, owing to the better-than-expected results as well as an increased financial outlook for 2025.

Year to date, shares of Halozyme have rallied 27.2% compared with the industry’s rise of 1.9%.

Zacks Investment Research
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HALO's Q2 Results in Detail

Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.

Royalty revenues totaled $205.6 million in the second quarter, up 65% from the year-ago quarter’s level. This was mainly due to the robust demand for Phesgo, subcutaneous Darzalex and Vyvgart Hytrulo, on which it earns royalties.

Royalty revenues beat our model estimate of $168.7 million.

Product sales were $81.5 million in the second quarter, up 3.3% 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 missed our model estimate of $87.7 million.

Revenues under collaborative agreements were $38.6 million in the second quarter, increasing 40.4% on a year-over-year basis.

Adjusted EBITDA was $225.5 million in the second quarter, reflecting a 64.6% increase from the prior-year quarter.

Halozyme had cash, cash equivalents and marketable securities of $548.2 million as of June 30, 2025, compared with $747.9 million as of March 31, 2025.

HALO's 2025 Guidance Raised

Owing to increased royalty revenues due to the continued strong growth of JNJ’s Darzalex SC and RHHBY’s Phesgo and the robust growth of Vyvgart Hytrulo, the company raised its total revenue guidance for 2025.

Total revenues are now expected in the range of $1.28 billion to $1.36 billion compared with the earlier projection of $1.20 billion to $1.28 billion.

Royalty revenues are now anticipated in the range of $825-$860 million, compared with the previous expectation of $750-$785 million.

Adjusted EBITDA is now expected in the band of $865-$915 million, compared with the earlier expectation of $790-$840 million.

Adjusted earnings are now expected in the range of $6.00-$6.40 per share in 2025 versus the previous projection of $5.30-$5.70 per share.

Halozyme’s earnings per share guidance does not consider the impact of potential future share repurchases.

Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise

Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise

Halozyme Therapeutics, Inc. price-consensus-eps-surprise-chart | Halozyme Therapeutics, Inc. Quote

HALO's Zacks Rank & Stock to Consider

Halozyme currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the biotech sector is Immunocore (IMCR - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Immunocore’s 2025 loss per share have narrowed from 86 cents to 68 cents. Loss per share estimates for 2026 have narrowed from $1.34 to $1.10 during the same period. IMCR stock has increased 10.2% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 76.18%.

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