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: $25.1 million for Q4; $59.4 million for the full year.
• Net Income: Reported for the first time on a full-year basis in 2025.
• Gross Margin: 87% for Q4; 85% for the full year, reflecting improved product mix.

2. Strategic Updates and Business Highlights

• Recorlev: Continued as the primary growth driver, with Q4 revenue of $45.3 million, more than doubling the patient base to approximately 700. A patent infringement lawsuit was filed against two ANDA filers to protect its market position.
• Gvoke: Revenue grew 14% year-over-year, reaching $94.1 million for the full year, supported by broad access and strong prescriber awareness.
• Keveyis: Outperformed expectations with a revenue of $47.6 million for the year, reflecting a stable patient base.
• Pipeline Development: XP-8121 is on track for a Phase III trial initiation in H2 2026, with potential peak sales of $1 billion to $3 billion.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Expected to be between $375 million and $390 million, representing over 30% growth at the midpoint compared to 2025.
• Adjusted EBITDA: Expected to remain positive, with growth in absolute dollars compared to 2025.
• Investment Plans: Anticipated R&D expenses to increase by $25 million for XP-8121, and SG&A expenses to rise by approximately $45 million to support commercial 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 Recorlev's unique positioning would mitigate risks.
• Patent Litigation: The ongoing patent infringement lawsuit could introduce uncertainties, although management is confident in their legal standing and patent protection until 2040.
• Market Dynamics: The first quarter of 2026 may experience typical payer resets that could temporarily affect sales momentum.

5. Notable Q&A Insights

• Sales Force Expansion: Management confirmed the doubling of the Recorlev commercial team to enhance market penetration and patient support.
• Capital Deployment: There is a focus on maintaining a strong balance sheet while also considering business development opportunities, though no immediate partnerships for XP-8121 are planned.
• Gross Margin Expectations: Management anticipates stable gross-to-net dynamics in 2026, with continued improvement in gross margins driven by product mix.
• Regulatory Readiness: The company is aligned with the FDA for XP-8121's Phase III trial, with no remaining regulatory hurdles noted.

Overall, Xeris Biopharma demonstrated strong financial growth in 2025, with a positive outlook for 2026 driven by strategic product initiatives and a robust pipeline, despite facing competitive and regulatory challenges.