Halozyme Q2 2025 slides: Revenue surges 41%, company raises full-year guidance

Introduction & Market Context

Halozyme Therapeutics , Inc. (NASDAQ:HALO) delivered exceptional second quarter 2025 results, continuing the strong momentum seen in Q1. The company’s stock responded positively to the earnings announcement, rising 1.48% in aftermarket trading to $60.88, building on a 1.37% gain during regular trading hours. This performance reinforces Halozyme’s impressive year-to-date trajectory, with the stock having gained over 26% since January.

The company’s ENHANZE drug delivery technology continues to drive significant growth through partnerships with major pharmaceutical companies, establishing Halozyme as a leader in subcutaneous drug formulation technology.

Quarterly Performance Highlights

Halozyme reported substantial growth across all key financial metrics for Q2 2025. Total (EPA:TTEF) revenue reached $326 million, representing a 41% increase year-over-year, driven primarily by a 65% surge in royalty revenue to $206 million.

As shown in the following detailed financial comparison between Q2 2025 and Q2 2024:

The company’s profitability metrics showed even stronger growth, with net income increasing 77% to $165 million and GAAP diluted EPS rising 85% to $1.33. Non-GAAP diluted EPS grew 69% to $1.54, while adjusted EBITDA increased 65% to $226 million.

This performance builds on the strong Q1 2025 results reported earlier this year, when the company posted a 35% year-over-year revenue increase and a 54% jump in net income.

The Q2 results and raised guidance are summarized in the following slide:

Product Portfolio and Growth Catalysts

Halozyme’s growth is primarily driven by its ENHANZE technology, which enables the conversion of intravenous (IV) medications to subcutaneous formulations, significantly reducing administration time and improving patient experience.

DARZALEX SC (with ENHANZE) continues to be a major revenue driver, with approximately 96% U.S. share of sales in 2025. Total DARZALEX sales are projected to reach $17.8 billion by 2028, as illustrated in the following chart:

Another significant growth contributor is VYVGART & VYVGART Hytrulo SC, which has shown impressive quarterly sales progression. In Q2 2025, sales reached $949 million, a 20% increase from the previous quarter. Analyst projections suggest this product could reach approximately $7 billion in annual sales by 2028:

The company highlighted 11 growth catalysts already achieved in 2025, including multiple regulatory approvals across different regions for products utilizing the ENHANZE technology. These include RYBREVANT SC approval in Europe, Opdivo SC approval in Europe, and VYVGART Hytrulo approvals for various indications.

Updated Financial Guidance

Based on the strong first-half performance, Halozyme raised its full-year 2025 guidance across all key metrics. The company now expects:

The revised guidance represents significant increases from previous projections, with total revenue now expected to reach $1,275-$1,355 million (up from $1,200-$1,280 million) and non-GAAP diluted EPS projected at $6.00-$6.40 (up from $5.30-$5.70).

This updated outlook continues the positive trajectory seen after Q1 2025, when the company initially raised its full-year revenue guidance to $1.2-$1.28 billion.

Long-term Growth Strategy and Outlook

Halozyme’s long-term strategy focuses on expanding its ENHANZE technology across more products and therapeutic areas. The company projects a doubling of key financial metrics from 2024 to 2028:

This growth will be supported by both existing products and new pipeline opportunities. The company highlighted a robust pipeline of approved and near-term growth opportunities representing approximately $25 billion in potential 2028 sales:

Halozyme also announced its third $250 million share repurchase program, having completed $303 million in repurchases already in 2025. Since 2019, the company has deployed $1.85 billion to share repurchases, reducing diluted weighted average shares outstanding by 10% from 144 million in 2019 to 129 million in 2024.

The comprehensive financial projections through 2028 demonstrate management’s confidence in sustained growth:

With royalty revenue expected to more than double from 2023 to 2028 (21% CAGR) and adjusted EBITDA margins projected to expand from 51% in 2023 to 73-75% by 2028, Halozyme appears well-positioned for continued strong financial performance.

The company’s focus on growing both organically and through strategic acquisitions, as highlighted in previous earnings calls, supports its ambitious growth targets and reinforces its leadership position in drug delivery technologies.

Full presentation:

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