Helen Torley, Halozyme's President and Chief Executive Officer, who will provide an update on our business, and Nicole LaBrosse, our Chief Financial Officer, will review our financial results as well as our outlook. Certain non-GAAP or adjusted financial measures are reconciled with the comparable GAAP financial measures in our earnings press release and slide presentation. I am very pleased to report another quarter of record royalty revenue of $236 million, representing a remarkable 52% increase year-over-year, and resulting in total revenue of $354 million, representing 22% growth year-over-year. Adjusted EBITDA growth exceeded top-line growth, increasing 35% over prior year's third quarter to $248 million, reflecting the strength inherent in our royalty-based business model.
Year to date, 13 of the 15 growth catalysts have been achieved, including new product approvals, expanded indications, reaching new regions, and achieving key reimbursement milestones across major markets. This quarter, there were two notable indication approvals for our two leading growth drivers. Firstly, Darzalex Subcutaneous received European Commission approval for a new indication in smoldering multiple myeloma, providing another meaningful growth catalyst for the franchise. Driven by the continued strong performance of our core ENHANZE technology, we are pleased to raise our full year 2025 guidance ranges.
Driven by royalty revenues, we now project total revenue of $1.3 billion-$1.375 billion, reflecting 28%-35% growth over 2024. Royalty revenue is now expected to grow 49%-54% to $850 million-$880 million for the full year, primarily driven by our three established blockbuster subcutaneous therapies, Darzalex Subcutaneous, Phesgo, and VYVGART Hytrulo with ENHANZE. We now anticipate adjusted EBITDA of between $885 million and $935 million, representing year-over-year growth of 40%-48%. We expect non-GAAP diluted earnings per share of $6.10-$6.50, representing year-over-year growth of 44%-54%.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | FY2025 | $1.3B-$1.375B (28%-35% YoY growth) (Raised) |
| Royalty revenue | FY2025 | $850M-$880M (49%-54% YoY growth) (Raised) |
| Product sales | FY2025 | $340M-$365M (12%-20% YoY growth) (Updated) |
| Collaboration revenues | FY2025 | $110M-$130M (Updated) |
| Adjusted EBITDA | FY2025 | $885M-$935M (40%-48% YoY growth) (Raised) |
| Non-GAAP diluted EPS | FY2025 | $6.10-$6.50 (44%-54% YoY growth) (Raised) |
| Elektrofi non-GAAP EPS dilution | Medium term | Less than 5% dilutive, excluding potential milestone payments (Reiterated) |
| Metric | YoY | Note |
|---|---|---|
| Royalty revenue | +52% to $236M | Continued momentum of three blockbuster subcutaneous therapies: Darzalex Subcutaneous, Phesgo, and VYVGART Hytrulo. |
| Total revenue | +22% to $354.3M | Strong royalty growth, partially offset by lower collaboration revenue from milestone timing. |
| Adjusted EBITDA | +35% to $248.2M | Leverage of the high-margin royalty-driven model, outpacing top-line growth. |
| Product sales | +9% to $94.2M | Mainly driven by the contribution from proprietary product sales. |
| Collaboration revenues | -50% to $24M | Primarily due to the timing of milestones achieved. |
| Darzalex sales | +20% operational to $3.7B | Continued share gains across all lines of therapy and front-line setting, plus market growth. |
| R&D expenses | -6% to $17.3M | Lower compensation from resource optimization, offset by timing of ENHANZE high-yield rHuPH20 manufacturing investments. |
| SG&A expenses | +12% to $46.1M | Increased consulting and professional service fees, partially offset by lower compensation expense. |
| Non-GAAP diluted EPS | +35% to $1.72 | Strong royalty-driven revenue and EBITDA growth versus $1.27 in the prior-year quarter. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| ENHANZE subcutaneous delivery momentum | — | Core driver of record royalty growth; 96% US and over 90% global subcutaneous share for Darzalex | Rising |
| M&A and Elektrofi/Hypercon expansion | — | Acquired Elektrofi to add Hypercon at-home delivery; actively seeking further deals, willing to lever up to 3x net leverage | Rising |
| New ENHANZE partnership deals | — | Confident in signing a new ENHANZE deal this year, with several discussions near completion | Rising |
| Capital allocation and deleveraging | — | Balanced approach of buybacks and acquisitions; plan to delever quickly from ~2x at Elektrofi close | Steady |
| Long-term royalty durability | — | Layered waves of royalty streams from blockbusters, recent launches, and pipeline extending into the 2030s and 2040s | Rising |