XERS — Xeris Biopharma Holdings, Inc.

Xeris Biopharma Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 Revenue: $85.8 million, up 43% year-over-year.
• Full Year Revenue: $291.8 million, a 44% increase compared to 2024.
• Adjusted EBITDA: Q4 at $25.1 million; full year at $59.4 million.
• Net Income: Reported for the first time on a full-year basis.
• Gross Margin: 87% for Q4 and 85% for the full year, reflecting improved product mix.

2. Strategic Updates and Business Highlights

• Product Performance:
  • Recorlev: Revenue of $45.3 million in Q4, more than 100% growth year-over-year. Patient base nearly doubled to approximately 700.
  • Gvoke: Revenue of $24.6 million in Q4, with steady growth driven by broad access and prescriber awareness.
  • Keveyis: Revenue of $12.8 million in Q4, continuing to outperform expectations.
• Commercial Expansion: Nearly doubled the Recorlev commercial team to enhance healthcare provider and patient interactions.
• Legal Actions: Filed a patent infringement lawsuit against two ANDA filers to protect Recorlev's market position.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Expected between $375 million and $390 million, representing over 30% growth at the midpoint compared to 2025.
• Adjusted EBITDA: Anticipated to remain positive, with growth in absolute dollars.
• R&D Investments: Expected increase of approximately $25 million to support XP-8121 Phase III initiation in H2 2026.
• SG&A Expenses: Projected increase of about $45 million to support Recorlev's growth.

4. Bad News, Challenges, or Points of Concern

• Competitive Pressures: Concerns regarding potential competition from generic versions of Korlym, although management expressed confidence that it would not significantly impact Recorlev.
• IP Litigation: Ongoing patent infringement lawsuit could introduce uncertainty, although management remains confident in their legal position.
• Market Dynamics: The first quarter typically experiences payer resets that may temporarily slow growth.

5. Notable Q&A Insights

• Sales Force Expansion: Management indicated that the recent doubling of the commercial team is crucial for sustaining growth and managing patient loads.
• Capital Deployment: Discussions around future capital allocation suggest a focus on internal growth opportunities, with potential for external business development if advantageous.
• XP-8121 Development: No regulatory gating items for the Phase III trial, but emphasis on ensuring readiness with a go-to-market device.
• Market Strategy: Management remains committed to their long-term strategy for Recorlev, with expectations of reaching $1 billion in peak sales by 2035.

Overall, Xeris Biopharma demonstrated strong financial performance in 2025, marked by significant revenue growth and a shift to profitability, while strategically positioning itself for continued expansion and development in 2026.