XERS — Xeris Biopharma Holdings, Inc.

Xeris Biopharma Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $83.1 million, up 38% year-over-year.
• Net Product Revenue: $82.5 million, a 43% increase compared to Q1 2025.
• Recorlev Revenue: $49.8 million, nearly doubling with a 95% growth year-over-year.
• Gvoke Revenue: $20.8 million, flat year-over-year, impacted by Medicare policy changes.
• Keveyis Revenue: $11.9 million, a 4% increase year-over-year.
• Gross Margin: 87%, up 2% from the previous year.
• R&D Expenses: $8.8 million, a 13% increase due to investments in the XP-8121 program.
• SG&A Expenses: $53.1 million, a 21% increase due to commercial expansion.
• Adjusted EBITDA: $15.1 million, up $10.7 million year-over-year.
• Net Income: $2.2 million, an improvement of over $11 million compared to Q1 2025.

2. Strategic Updates and Business Highlights

• Recorlev: Significant growth attributed to record referrals and new patient starts, with expectations for continued momentum due to a strengthened sales force and patient support teams.
• Gvoke: While facing challenges in the Medicare channel, the company remains optimistic about recovery and long-term growth potential.
• Keveyis: Demonstrated consistent performance in a niche market, highlighting its brand strength.
• Pipeline Development: XP-8121 is on track for Phase III initiation later in 2026, targeting hypothyroid patients with GI absorption issues.

3. Forward Guidance and Outlook

• Revised Revenue Guidance: Increased to $380 million - $390 million for 2026, reflecting confidence in ongoing growth, particularly from Recorlev.
• R&D Investment: Expected to increase by approximately $25 million year-over-year, driven by XP-8121.
• SG&A Expenses: Anticipated to rise by about $45 million, primarily due to the full-year impact of the Recorlev commercial expansion.
• Adjusted EBITDA: Expected to remain positive and grow in absolute dollar terms compared to 2025.

4. Bad News, Challenges, or Points of Concern

• Gvoke Performance: Revenue was flat due to seasonal headwinds and Medicare policy changes affecting patient coverage and out-of-pocket costs, leading to a decline in prescriptions filled.
• Competitive Pressures: Gvoke's performance was impacted more significantly than competitors, particularly in the Medicare space, raising concerns about market share.
• Commercial Expansion Impact: While the expansion of the sales force is expected to yield results, the full impact may not be realized until later in the year.

5. Notable Q&A Insights

• Gvoke Dynamics: Management indicated that the primary issue affecting Gvoke was related to Medicare resets rather than significant formulary changes. They expect a recovery in the second half of the year as beneficiaries hit catastrophic coverage.
• Recorlev Growth: The strong start to the year was driven by new patient starts, with expectations for continued growth as the expanded sales team ramps up.
• Capital Allocation: The company is focused on reinvesting in growth opportunities while maintaining flexibility in capital structure.
• Pipeline Expansion: There is openness to expanding the pipeline beyond XP-8121, considering both internal development and potential external acquisitions that align with growth strategies.

Overall, Xeris Biopharma reported a strong Q1 2026, with impressive revenue growth driven by Recorlev, while facing challenges with Gvoke that they are optimistic will resolve. The company is strategically positioned for continued growth and is actively investing in its pipeline and commercial capabilities.