Halozyme Therapeutics, Inc. (HALO) Earnings
Halozyme Therapeutics, Inc. is expected to report next earnings on August 4, 2026 (in NaN days), with a consensus EPS estimate of $1.82. HALO has beaten EPS estimates in 6 of its last 12 reported quarters (average surprise -17.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 11, 2026 | $1.54 | $1.60 | +3.9% | $377M | +5.0% |
| Feb 17, 2026 | $2.15 | $-0.24 | -111.2% | $452M | +18.4% |
| Feb 18, 2025 | $1.17 | $1.26 | +7.7% | $298M | +4.3% |
| Oct 31, 2024 | $0.98 | $1.27 | +29.6% | $290M | -0.9% |
| Feb 20, 2024 | $0.83 | $0.82 | -1.2% | $230M | -0.5% |
| Feb 21, 2023 | $0.47 | $0.48 | +2.1% | $181M | -5.5% |
| Feb 22, 2022 | $0.41 | $0.42 | +2.4% | $102M | +0.5% |
| Nov 2, 2021 | $0.42 | $0.55 | +31.0% | $116M | +8.3% |
| Feb 23, 2021 | $0.53 | $0.50 | -5.7% | $122M | +1.3% |
| Feb 24, 2020 | $-0.18 | $-0.24 | -33.3% | $54M | +60.0% |
| May 7, 2019 | $0.01 | $0.01 | -28.1% | $57M | +0.0% |
| Feb 21, 2019 | $-0.01 | $-0.01 | -64.5% | $60M | -66.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 11, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
• Overall Business Momentum and Strategy - Halazime started 2026 with strong operational and financial momentum, with sustained growth from approved products supporting confidence in 2026-2028 guidance, and building new revenue streams for 2029+ growth. - The company generates strong free cash flow and maintains disciplined capital allocation focused on reinvesting for growth and returning value to shareholders. • Approved Commercial Product Performance - The 10 launched Enhanced products are the core revenue driver for 2026-2028. Only 25% of their total projected royalty revenue has been recognized by end of 2025, with 66% expected to come between 2026 and 2032, and 9% after 2032. - Darzalex subcutaneous (J&J) generated $129 million in Q1 2026 royalty revenue (26% YoY growth), on 18% operational global sales growth to ~$4 billion. New Q1 2026 FDA approvals for additional indications will support further growth. - Fivegard Hytrulo (Argenx) generated $46.3 million in Q1 2026 royalty revenue (119% YoY growth), on 63% global sales growth to ~$1.3 billion. A recent FDA approval expanded indication to all serotypes of generalized myasthenia gravis, doubling the addressable patient population. - Fezgo (Roche) generated $30.2 million in Q1 2026 royalty revenue (25% YoY growth), on 27% YoY sales growth to ~$877 million. - Recently launched subcutaneous products (Ocrevus, Avdevo, Ticentric, Riborvant) collectively address a $30 billion total market opportunity by 2028, with strong early uptake: Ocrevus SC now has ~24,000 global patients, adding ~7,000 in Q1; Riborvant SC delivered 80% YoY sales growth to $257 million, and is projected to reach $5 billion in peak sales. • 2029+ Long-Term Growth Drivers - Four core revenue drivers for 2029+ are: 1) continued contribution from the 10 approved Enhanced products, 2) up to 13 new Enhanced product launches between 2029 and 2032, 3) two HyperCon product launches in 2030-2031, and 4) additional launches from new target nominations in existing agreements and new collaboration/licensing deals. - Two new Enhanced Phase 1 studies initiated in Q1 2026, meeting the year-to-date target on track for 6 total new Phase 1 starts in 2026. Pfizer nominated a new undisclosed target in Q1, bringing the pipeline to 13 Enhanced products expected to be in development by end of 2026. - HyperCon development: The company is investing in end-to-end manufacturing capacity for HyperCon, with the first two partner Phase 1 starts now expected in H1 2027, maintaining 2030-2031 launch timing. HyperCon is projected to reach ~$1 billion in annual royalty revenue by the mid-2030s. Three new collaboration and licensing agreements were signed in 2026 (meeting the full-year goal): an Enhanced collaboration with GSK for multiple oncology ADC targets, a HyperCon collaboration with Vertex for up to 3 targets, and a HyperCon collaboration with Aruka for ORK-A001 (psoriasis) and one additional target. HyperCon now has 5 agreements for 17 total potential targets. • Capital Allocation - The company announced a new $1 billion share repurchase authorization, with a plan to repurchase at least $400 million of shares in 2026, targeting a 3% annual buyback yield going forward. - Capital priorities are: 1) reinvest in organic R&D and manufacturing for Enhance, HyperCon, and SurfBio; 2) return capital to shareholders via buybacks; 3) further deleveraging by retiring 2027 and 2028 notes at maturity; 4) evaluate drug delivery-focused M&A, though management expects it is unlikely a transaction meeting its criteria will close in 2026, and no non-drug delivery M&A is planned.
Guidance
• Management reaffirms full-year 2026 financial guidance and maintains 2026-2028 medium-term guidance. - Full-year 2026 guidance: total revenue of $1.71 billion to $1.81 billion (22% to 30% YoY growth), royalty revenue of $1.13 billion to $1.17 billion (30% to 35% YoY growth, exceeding $1 billion in enhanced royalties for the first time), adjusted EBITDA of $1.125 billion to $1.205 billion (including ~$60 million in planned HyperCon and SurfBio investment), and non-GAAP diluted EPS of $7.75 to $8.25. The 2026 EPS guidance does not include any impact from 2026 share repurchases. - Medium-term 2026-2028 guidance: adjusted EBITDA margin is projected to be greater than 65%, growing to approximately 70% over the period. - End of 2026 net leverage is projected to be ~1.2x, down from 2.5x at end of Q1 2026, after completion of the planned 2026 share repurchases.
Segment performance
Halazime's total revenue for Q1 2026 increased 42% year-over-year to $376.7 million. Royalty revenue, the largest revenue segment, increased 43% year-over-year to $240.7 million, representing 63.9% of total revenue for the quarter. Adjusted EBITDA increased 42% year-over-year to $229.5 million, representing a 60.9% margin relative to total revenue. GAAP diluted earnings per share was $1.22, while non-GAAP diluted earnings per share was $1.60, up from $1.11 in Q1 2025. Total operating expenses were $83.5 million, with $25.6 million for research and development (up from $14.8 million YoY, driven by HyperCon and SurfBio acquisition integration) and $57.9 million for selling, general, and administrative expenses (up from $42.4 million YoY).
Risks & headwinds
All material risks are referenced to Halazime's existing SEC filings. No new material operational risks or failures were discussed on the call. Key uncertainties noted are the clinical and regulatory risk of pipeline products (timing of development, approvals, and peak sales are subject to change) and the uncertainty of M&A opportunities meeting the company's high investment criteria.
Analyst Q&A
Q: What are the biggest contributors to 2029+ Enhanced revenue, and how many pre-acquisition vs new HyperCon discussions have there been? /
A: The 10 currently launched Enhanced products still have 66% of their total projected revenue coming between 2026 and 2032, with large contributions from existing products including Darzalex, Fivegard, Ocrevus, and Riborvant, with additional upside from new pipeline launches. For HyperCon, one of the two recently signed deals was in discussion before the HyperCon acquisition, one was new, and there are now multiple ongoing discussions and early feasibility tests underway, with growing broader interest driven by secular demand for at-home subcutaneous delivery.
Q: What is the launch timeline for the 13 new 2029+ Enhanced products, and what manufacturing work remains for the first HyperCon Phase 1 starts? /
A: It takes ~4-5 years from Phase 1 initiation to approval for Enhanced products. All 13 products are expected to be in development by end of 2026, so launches will begin in 2029 and occur through 2031-2032. For HyperCon, Halazime is still completing clinical supply manufacturing as it builds out end-to-end manufacturing capacity, which will support the H1 2027 Phase 1 start target; partner will disclose the specific targets when they are posted to clinicaltrials.gov near study initiation.
Q: How is Halazime addressing HyperCon scalability concerns, since the technology had not advanced to the clinic prior to acquisition? /
A: Halazime is investing in dedicated HyperCon manufacturing capacity to enable end-to-end production from drug substance to commercial fill-finish. HyperCon is working with established CDMO Thermo Fisher-Pathion to complete clinical batches for the first Phase 1 studies by H1 2027, and the company is actively engaged in scaling the process for future commercial use. Management notes progress to date is on track, and the company is still in the clinical development stage for the platform.
Q: What royalty rates and IP protection can we expect for the 2029+ Enhanced pipeline, and how does Halazime compete with competing hyaluronidase technologies? /
A: New Enhanced and HyperCon deals follow the same historical structure, with royalty rates that escalate to mid-single digits on net sales, consistent with existing commercial contracts. While core composition of matter patents expire in 2029, Halazime obtains co-formulation patents for each partnered product that extend royalty terms for up to an additional 10+ years, in line with contract terms. Competing technologies do not erode Halazime's market position, as the company is the gold standard with 1.3+ million treated patients, deep development expertise that speeds partner timelines, and remains the first choice for most partners seeking subcutaneous delivery technology.