Xeris Biopharma Q3 2025 Earnings Call Summary

1Key Financial Results and Metrics

Total Product Revenue:: $74.1 million, a 40% increase year-over-year.

Net Income:: Reported for the first time in company history.

Adjusted EBITDA:: $17.4 million, up over $20 million from Q3 2024.

Gross Margin:: Improved to 85%, driven by a favorable product mix.

Revenue by Product::

RECORLEV:: $37 million, up 109% year-over-year.

Gvoke:: $25.2 million, a 10% increase.

KEVEYIS:: $11.9 million, modest growth noted.

2Strategic Updates and Business Highlights

Commercial Expansion:: Xeris is nearly doubling its sales and patient support teams to enhance market reach, particularly for RECORLEV.

Pipeline Development:: XP-8121, a once-weekly subcutaneous levothyroxine for hypothyroidism, is on track for a Phase III trial initiation in H2 2026.

Patient Growth:: RECORLEV's patient base grew by 108%, reflecting strong demand and clinician adoption.

Market Positioning:: The company is optimistic about RECORLEV's potential to reach $1 billion in sales, supported by ongoing investments in commercial capabilities.

3Forward Guidance and Outlook

Revenue Guidance:: Raised for 2025 to a range of $285 million to $290 million, indicating a 42% increase at the midpoint compared to 2024.

Investment Plans:: Increased spending in SG&A and R&D anticipated as the company prepares for the XP-8121 trial and expands the RECORLEV sales force.

Adjusted EBITDA Commitment:: Despite increased investments, Xeris aims to maintain positive adjusted EBITDA.

4Bad News, Challenges, or Points of Concern

Competitive Pressures:: Anticipation of Corcept's relacorilant entering the market, although management views this as a potential market expansion opportunity rather than a direct threat.

Investment Variability:: Future quarterly EPS results may show variability due to ongoing investments, raising concerns about short-term profitability.

Discontinuation Rates:: No specific metrics disclosed for RECORLEV's discontinuation rates, leaving some uncertainty regarding long-term patient retention.

5Notable Q&A Insights

Sales Force Productivity:: The expanded RECORLEV sales team is expected to reach optimal productivity by mid-2026, with ongoing training and ramp-up.

Market Dynamics:: Management believes that the entry of competitors like relacorilant could enhance overall market awareness and demand for hypercortisolemia treatments.

KEVEYIS Durability:: Continued patient acquisition and support are crucial for maintaining KEVEYIS's market position, with no immediate competitive threats reported.

R&D Spending:: Significant increases in R&D spending are expected leading into the XP-8121 trial, with a focus on ensuring readiness for commercial launch. Overall, Xeris Biopharma reported strong financial performance in Q3 2025, with strategic initiatives aimed at expanding its market presence and pipeline development, while navigating competitive pressures and planning for future investments.