Xeris Biopharma Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue: $92 million, a 29% increase year-over-year.

Net Product Revenue: $91 million, up 34% year-over-year.

Recorlev Revenue: $56.8 million, representing 81% growth year-over-year.

Gvoke Revenue: Approximately $23 million, a 10% sequential increase.

Keveyis Revenue: Nearly $12 million, reflecting stable performance.

Gross Margin: Approximately 86%, an improvement of nearly 400 basis points year-over-year.

R&D Expenses: $10.7 million, up $2.6 million year-over-year.

SG&A Expenses: $61 million, primarily due to the expanded Recorlev commercial team.

Adjusted EBITDA: $19.3 million, a 50% year-over-year increase.

Convertible Notes: Fully retired, eliminating $3 million in annual interest expense.

2Strategic Updates and Business Highlights

Recorlev: Continued strong performance with record patient referrals and prescriber confidence. The company aims to establish Recorlev as the standard of care for endogenous Cushing's syndrome.

Gvoke: After a slow start, Gvoke is showing signs of recovery with expectations for further growth during the back-to-school season.

Keveyis: Received a notice of allowance for a new patent, extending protection through at least 2039, allowing for continued investment in patient outreach.

XP-8121 Pipeline: Significant progress with the program, including two new patents received and plans for Phase III initiation by year-end. A webinar is scheduled for September 9 to discuss the program in detail.

3Forward Guidance and Outlook

Revenue Guidance: Increased bottom end of full-year 2026 revenue guidance to $385 million - $390 million, reflecting confidence in continued growth.

SG&A Increase: Expected full-year increase of approximately $50 million, up from previous guidance of $45 million, to support commercial expansion.

R&D Spending: Anticipated increase of $25 million for XP-8121, with similar increases expected as the trial ramps up.

4Bad News, Challenges, or Points of Concern

Guidance Ceiling: While the lower end of revenue guidance was raised, the upper end remained unchanged at $390 million, indicating potential limitations in growth expectations.

Market Dynamics: The company noted that the market for Recorlev is complex, requiring significant effort for patient diagnosis and treatment, which may slow growth.

Competitive Pressures: The presence of generics in the market for Keveyis could pose risks, although the new patent provides some protection.

5Notable Q&A Insights

Market Growth for Recorlev: Over 60% of patients are new to therapy, indicating a strong capture of new patient starts, but specific market size data was not disclosed.

Phase III Program for XP-8121: The company emphasized that the Phase III trial will not start until all commercial preparations are complete, with timelines expected to be clarified in the upcoming webinar.

Business Development: Xeris is actively seeking growth opportunities that leverage its existing commercial infrastructure, particularly in endocrinology and rare diseases. Overall, Xeris Biopharma reported a strong second quarter with significant revenue growth and strategic advancements, while also addressing challenges related to market dynamics and competitive pressures. The company remains optimistic about its future growth trajectory.