second quarter 2026
Filed Aug 6, 2026HALOZYME REPORTS RECORD SECOND QUARTER 2026 RESULTS, BEATS ESTIMATES AND RAISES FULL YEAR 2026 FINANCIAL GUIDANCE
Total revenue increased 48% year-over-year to $481.0 million, royalty revenue increased 50% to $307.7 million, adjusted EBITDA increased to $328.8 million, and the Company raised all four full-year 2026 financial guidance ranges.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $481.0 million | – | 48% |
| Royalty revenueGAAP | $307.7 million | – | 50% |
| Cost of salesGAAP | $79.2 million | – | – |
| Amortization of intangibles expenseGAAP | $29.5 million | – | – |
| Research and development expenseGAAP | $27.7 million | – | – |
| Selling, general and administrative expenseGAAP | $57.0 million | – | – |
| Operating incomeGAAP | $287.7 million | – | – |
| Net incomeGAAP | $229.9 million | – | – |
| EBITDAnon-GAAP | $321.9 million | – | – |
| Adjusted EBITDAnon-GAAP | $328.8 million | – | 46% |
| Diluted earnings per shareGAAP | $1.90 | – | – |
| Diluted earnings per sharenon-GAAP | $2.28 | – | – |
| Cash, cash equivalents, restricted cash and marketable securitiesother | $231.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Royalty revenueContinued sales uptake of ENHANZE® partner products that have launched since 2020, predominantly by VYVGART® Hytrulo by argenx and DARZALEX® SC Janssen in all geographies and contributions from other recently launched products. | $307.7 million | – | 50% |
full year 2026 outlook
- Revenue$1.835 billion to $1.910 billion
- NoteTotal revenue growth of 31% to 37% over 2025 total revenue
- NoteRevenue from royalties of $1.220 billion to $1.245 billion
- NoteRoyalty revenue growth of 41% to 43% over 2025
- NoteAdjusted EBITDA of $1.225 billion to $1.280 billion
- NoteAdjusted EBITDA growth of 86% to 95% over 2025, including new Hypercon™ and Surf Bio investments of approximately $60 million
- NoteNon-GAAP diluted earnings per share of $8.65 to $9.00
- NoteNon-GAAP diluted earnings per share growth of 108% to 117% over 2025
- NoteThe Company’s earnings per share guidance includes new Hypercon™ and Surf Bio investments of approximately $60 million and does not consider the impact of potential future share repurchases.
Capital returns
- In May 2026, the Company announced a new share repurchase program to repurchase up to $1.0 billion of its outstanding common stock by December 31, 2028.
- The Company expects to buy back at least $400 million of shares in 2026.
- During the second quarter of 2026, the Company repurchased 4.8 million shares for $332.8 million at an average price of $69.30 per share under the May 2026 and February 2024 share repurchase programs.
- The February 2024 share repurchase program was completed in June 2026.
What drove it
- The 48% year-over-year increase in total revenue was primarily driven by royalty revenue growth and an increase in product sales.
- Royalty revenue growth was primarily driven by continued sales uptake of ENHANZE® partner products that have launched since 2020, predominantly VYVGART® Hytrulo and DARZALEX® SC.
- The increase in cost of sales was primarily due to an increase in bulk rHuPH20 sales.
- The increases in amortization of intangibles expense and research and development expense were attributed to the acquisitions of Elektrofi, Inc. and Surf Bio, Inc.
- Halozyme signed five new ENHANZE® and Hypercon™ collaboration agreements through July, including agreements with Vertex, Oruka, GSK, Incyte and an undisclosed partner.
Concerns
- Selling, general and administrative expense increased primarily due to consulting and professional service fees, including litigation costs incurred in connection with patent infringement litigation, acquisitions and increased compensation expense.
- Full-year adjusted EBITDA and non-GAAP diluted earnings per share guidance include new Hypercon™ and Surf Bio investments of approximately $60 million.
- The Company’s earnings per share guidance does not consider the impact of potential future share repurchases.
What to watch
- Sales uptake of VYVGART® Hytrulo, DARZALEX® SC and other recently launched ENHANZE® partner products.
- Execution of the five new ENHANZE® and Hypercon™ collaboration agreements signed through July.
- The Phase 1 SC bioavailability study with ENHANZE® added to the ongoing ARGX-119 adimanebart program in the third quarter of 2026.
- Progress toward the expected repurchase of at least $400 million of shares in 2026.
- Delivery against full-year 2026 guidance for total revenue, royalty revenue, adjusted EBITDA and non-GAAP diluted earnings per share.
Balance sheet and cash flow
- Cash, cash equivalents, restricted cash and marketable securities were $231.9 million on June 30, 2026, compared to $145.4 million on December 31, 2025.
- The increase was primarily driven by cash generated from operations.
Analysis
Halozyme reported a strong second quarter ended June 30, 2026. Total revenue was $481.0 million, compared to $325.7 million in the second quarter of 2025, and royalty revenue was $307.7 million, compared to $205.6 million. The Company attributed the revenue increase to royalty growth and increased product sales. Royalty growth was led by continued uptake of ENHANZE® products launched since 2020, predominantly VYVGART® Hytrulo and DARZALEX® SC, alongside contributions from other recently launched products.
Profitability increased with revenue. Operating income was $287.7 million versus $202.4 million, net income was $229.9 million versus $165.2 million, and adjusted EBITDA was $328.8 million versus $225.5 million. GAAP diluted earnings per share was $1.90 versus $1.33, while non-GAAP diluted earnings per share was $2.28 versus $1.54. Cost of sales, amortization expense, research and development expense, and selling, general and administrative expense each increased versus the second quarter of 2025. The Company cited higher bulk rHuPH20 sales, the Elektrofi and Surf Bio acquisitions, consulting and professional fees including litigation costs, and compensation expense as drivers of the higher costs.
The Company expanded its collaboration pipeline, stating that it signed five new ENHANZE® and Hypercon™ agreements through July with Vertex, Oruka, GSK, Incyte and an undisclosed partner. The agreements broaden the potential future royalty base, including the first licensing of ENHANZE® for a nucleic acid therapeutic and potential applications involving antibody-drug conjugates. Partner developments included FDA approval of a supplemental Biologics License Application for VYVGART® Hytrulo with ENHANZE® and positive topline results for TAK-881 with ENHANZE® in Primary Immunodeficiency Disease.
Capital deployment was significant during the quarter. Halozyme repurchased 4.8 million shares for $332.8 million at an average price of $69.30 per share, and its February 2024 repurchase authorization was completed in June 2026. The Company has a new program to repurchase up to $1.0 billion by December 31, 2028 and expects to buy back at least $400 million in 2026. Cash, cash equivalents, restricted cash and marketable securities were $231.9 million on June 30, 2026, compared to $145.4 million on December 31, 2025, with the increase primarily driven by cash generated from operations.
Halozyme raised each of its full-year 2026 financial guidance ranges. The new outlook calls for total revenue of $1.835 billion to $1.910 billion, royalty revenue of $1.220 billion to $1.245 billion, adjusted EBITDA of $1.225 billion to $1.280 billion, and non-GAAP diluted earnings per share of $8.65 to $9.00. The adjusted EBITDA and earnings-per-share outlook includes new Hypercon™ and Surf Bio investments of approximately $60 million. The updated outlook does not consider the impact of potential future share repurchases.
Management, verbatim
We delivered another quarter of strong performance, with multiple proof points demonstrating the attractive features of ENHANZE as a compounding platform engine: repeatability of success, scalability, diversification and durability of revenues.
Dr. Helen Torley, President and Chief Executive Officer
Total revenue increased 48% year-over-year to $481 million, royalty revenue increased 50% to $308 million and adjusted EBITDA grew 46% to $329 million, reflecting the strength of our differentiated royalty business. Based on these record results, we are raising our full year 2026 financial guidance.
Dr. Helen Torley, President and Chief Executive Officer
Importantly, we are delivering on both our near-term and long-term growth objectives. The ENHANZE value proposition is attracting new partners and additional products from our current partners.
Dr. Helen Torley, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin
- Gross profit
- Operating cash flow
- Free cash flow
- Debt balance
- Dividend amount or dividend policy
- Product sales revenue amount
- Formal reportable segment revenue disclosures
- Prior-quarter comparisons for reported financial metrics
- Tax rate
- Full-year 2026 gross margin guidance
- Full-year 2026 operating expense guidance
- Full-year 2026 tax-rate guidance
- Previous release outlook section for actual-versus-prior-guidance comparisons
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.