Alkermes plc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 25 February 2026: press release. Guidance figures: 22 new. The quarter’s numbers.

Read the filing

Key takeaways

• Full-year revenue declined from 2024: Total revenues were $1,475.9 million for 2025, against $1,557.6 million in 2024. Fourth-quarter revenues were $384.5 million, against $430.0 million a year earlier. Source
• Proprietary net sales rose about 9%: Proprietary net sales were $1,184.6 million for 2025, against $1,083.5 million, and $315.5 million in the fourth quarter, against $307.7 million a year earlier. Source
• Adjusted EBITDA declined for 2025: Adjusted EBITDA was $394.0 million for 2025, against $543.3 million, and $100.3 million in the fourth quarter, against $191.9 million. EBITDA was $285.6 million for 2025. Source
• Cash and investments rose to $1.32 billion: Cash, cash equivalents, restricted cash and total investments were $1.32 billion at Dec. 31, 2025, against $824.8 million a year earlier. Source
• Avadel financed with cash and term loans: Management said about $775 million came from balance sheet cash, with term loans totaling $1.525 billion due in 2031 used to finance the Avadel acquisition. Source
• Alixorexton phase 3 narcolepsy program planned: The 2026 priorities for alixorexton are phase 3 studies in narcolepsy and completion of the idiopathic hypersomnia phase 2 study. Source
• Avadel LUMRYZ sales before close: Avadel recorded LUMRYZ net sales of about $33 million from January 1 to February 11, 2026, before the acquisition closed. Source

“As we look ahead, our strategic priorities for the year are clear”

Richard Pops, Chief Executive Officer

Guidance

What changed from last quarter

• New guidance: Numeric 2026 financial expectations were given in this release. The January 2026 presentation contained no numeric financial guidance. Source
• New: The Avadel acquisition, described as planned in the January 2026 presentation, has closed. Source

Full-year and fourth-quarter results

• Full-year revenue declined from 2024: Total revenues were $1,475.9 million for 2025, against $1,557.6 million in 2024. Fourth-quarter revenues were $384.5 million, against $430.0 million a year earlier. Source
• Full-year GAAP net income and diluted EPS: Full-year GAAP net income was $241.7 million, with diluted GAAP EPS of $1.43. The 2024 comparison was GAAP net income of $367.1 million and diluted EPS of $2.17. Source
• Fourth-quarter operating income fell: Operating income was $58.1 million in the fourth quarter, against $162.7 million a year earlier. Full-year operating income was $254.0 million, against $420.6 million in 2024. Source

Proprietary product sales

• Proprietary net sales rose about 9%: Proprietary net sales were $1,184.6 million for 2025, against $1,083.5 million, and $315.5 million in the fourth quarter, against $307.7 million a year earlier. Source
• LYBALVI prescriptions and revenue grew: LYBALVI fourth-quarter revenues and total prescriptions grew 22% and 25% respectively against the fourth quarter of 2024. LYBALVI had the largest dollar increase of the three proprietary products. Source
• ARISTADA quarter flat, year higher: ARISTADA fourth-quarter revenue was little changed from the fourth quarter of 2024. Full-year ARISTADA revenue rose from the 2024 level. Source

“In 2025, we generated total revenue of approximately $1.48 billion”

Joshua Reed, Chief Financial Officer

Manufacturing and royalty revenue

• Manufacturing and royalty revenue fell: Manufacturing and royalty revenues were $69.1 million in the fourth quarter, against $122.3 million, and $291.3 million for 2025, against $474.1 million for 2024. Source
• Royalties from long-acting injectable partners: Royalty revenue from XEPLION, INVEGA TRINZA/TREVICTA and INVEGA HAFYERA/BYANNLI was $31.3 million in the fourth quarter. Source
• VUMERITY revenue below prior-year quarter: VUMERITY manufacturing and royalty revenue was $27.6 million in the fourth quarter, against $35.0 million in the fourth quarter of 2024. Source

Operating costs

• Research and development expense rose: Research and development expense from continuing operations was higher in the fourth quarter and for the full year than in 2024. Source
• Selling and administrative costs rose: SG&A from continuing operations was $187.2 million in the fourth quarter and $701.5 million for the year, both higher than 2024. The CFO referred to a continued focus on expense discipline. Source
• Cost of goods manufactured fell: Cost of goods manufactured and sold was $46.2 million in the fourth quarter, against $62.1 million, and $196.5 million for 2025, against $245.3 million for 2024. Source

“The completed acquisition of Avadel enhances our financial profile, broadens our commercial capabilities, and accelerates our entry into the sleep medicine market.”

Joshua Reed, Chief Financial Officer

Profitability and non-GAAP measures

• Adjusted EBITDA declined for 2025: Adjusted EBITDA was $394.0 million for 2025, against $543.3 million, and $100.3 million in the fourth quarter, against $191.9 million. EBITDA was $285.6 million for 2025. Source
• Fourth-quarter GAAP net income and EPS: GAAP net income from continuing operations was $49.3 million in the fourth quarter, against $145.7 million. Diluted GAAP EPS was $0.29, against $0.88. Source
• Share-based compensation excluded from Adjusted EBITDA: Adjusted EBITDA excludes share-based compensation of $26.3 million in the fourth quarter and $98.7 million for 2025, and $9.7 million of Avadel acquisition costs in the fourth quarter. Source

2026 financial expectations

• First numeric 2026 expectations given: The company gave 2026 expectations for revenues, product net sales, operating expenses, interest, tax, GAAP net loss, EBITDA and Adjusted EBITDA. Line items are on a GAAP basis unless noted. Source
• GAAP net loss expected for 2026: The projected GAAP net loss midpoint is $125.0 million. Projected Adjusted EBITDA of $390.0 million sits above it, including share-based compensation and Avadel acquisition costs in the bridge. Source
• Avadel purchase accounting adds charges: Purchase accounting for Avadel adds intellectual property amortization and an inventory fair value step-up, part of which is expensed as LUMRYZ inventory is sold in 2026. Source

Balance sheet and Avadel financing

• Cash and investments rose to $1.32 billion: Cash, cash equivalents, restricted cash and total investments were $1.32 billion at Dec. 31, 2025, against $824.8 million a year earlier. Source
• Restricted cash on the balance sheet: Restricted cash was $731.2 million at Dec. 31, 2025, against none a year earlier. Cash and total investments excluding restricted cash were $588.4 million. Source
• Avadel financed with cash and term loans: Management said about $775 million came from balance sheet cash, with term loans totaling $1.525 billion due in 2031 used to finance the Avadel acquisition. Source

Alixorexton and orexin 2 pipeline

• Alixorexton phase 3 narcolepsy program planned: The 2026 priorities for alixorexton are phase 3 studies in narcolepsy and completion of the idiopathic hypersomnia phase 2 study. Source
• Vibrance phase 2 data reported positive: The January 2026 presentation said both narcolepsy phase 2 studies produced positive topline data. Alixorexton was generally well tolerated at all doses tested.
• Orexin 2 candidates move into new indications: Management planned phase 2 development for additional orexin candidates in ADHD and in fatigue associated with multiple sclerosis and Parkinson’s disease in 2026. Source
• Idiopathic hypersomnia split dosing planned: The January 2026 presentation planned new split dose arms in the alixorexton idiopathic hypersomnia study, with start in the second quarter of 2026.

Avadel acquisition and sleep medicine

• Avadel LUMRYZ sales before close: Avadel recorded LUMRYZ net sales of about $33 million from January 1 to February 11, 2026, before the acquisition closed. Source
• LUMRYZ adds a high-growth product: The January 2026 presentation described LUMRYZ as a new high growth product that diversifies the commercial portfolio.
• Positions company for alixorexton launch: Management said the acquisition positions Alkermes for the potential future launch of alixorexton. Source

Coming up, as management said on 25 February 2026

• LUMRYZ idiopathic hypersomnia phase 3 data: Topline data from the LUMRYZ phase 3 study in idiopathic hypersomnia were expected in the second quarter of 2026, according to the January 2026 presentation.
• ALKS 7290 phase 2 start in ADHD: Management planned to start a phase 2 study in adult patients in the second half of 2026, for an ADHD candidate.

Figures management reported

Earlier plans management reported on

• Not stated: Management said the phase 3 narcolepsy program was expected to start in Q1 2026. The status is not stated in this release. Source
• Not stated: Named as a 2026 priority. The January 2026 presentation listed study completion as expected in Q4 2026. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.