Neurocrine Biosciences Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 28 October 2025: press release. Guidance figures: 6 raised, 1 kept. The quarter’s numbers.

Key takeaways

Total net product sales up 28%: Total net product sales were $790 million, up 16% from the second quarter of 2025 and 28% from the third quarter of 2024. Total revenues were $794.9 million against $622.1 million. Source
Non-GAAP diluted EPS rose to $2.17: Non-GAAP net income was $222.1 million and non-GAAP diluted EPS $2.17, against $189.2 million and $1.81 a year earlier. The release attributes the net income change mainly to higher net product sales and higher operating expenses. Source
INGREZZA sales grew 12%: INGREZZA net product sales were $687 million, up 10% sequentially and 12% year over year. The release reports $686.6 million in the income table. Source
CRENESSITY launch sales reached $98 million: CRENESSITY net product sales were $98 million in the quarter and $166 million for the first nine months. The release reports 1,617 new patient enrollment forms through the first nine months. Source
SG&A rose on CRENESSITY launch: GAAP SG&A was $291.6 million against $234.3 million, and non-GAAP SG&A $259.4 million against $204.6 million. The release also cites continued INGREZZA investment, including the sales team expansion from September 2024. Source
Osavampator Phase 2 data presented: SAVITRI Phase 2 data for osavampator showed statistically significant and clinically meaningful improvement in depression severity at Day 28 and Day 56 with 1 mg once daily. The data received a 2025 Poster Award at the Psych Congress. Source
Cash and securities near $2.1 billion: Cash, cash equivalents and marketable securities were $2,113.3 million at September 30, 2025, against $1,815.6 million at December 31, 2024. Source

“Neurocrine’s third quarter commercial results highlight the meaningful impact that INGREZZA and CRENESSITY are having on patients’ lives.”
Kyle W. Gano, Ph.D., Chief Executive Officer of Neurocrine Biosciences

Guidance

Area	Period	Figure	Against last quarter
INGREZZA net product sales Source	full year 2025	$2,500 - $2,550 million	Kept
GAAP R&D expense Source	full year 2025	$1,000 - $1,020 million	Raised from $960 - $1,010 million
Non-GAAP R&D expense Source	full year 2025	$910 - $930 million	Raised from $890 - $940 million
GAAP SG&A expense Source	full year 2025	$1,140 - $1,160 million	Raised from $1,135 - $1,155 million
Non-GAAP SG&A expense Source	full year 2025	$1,010 - $1,030 million	Raised from $980 - $1,000 million
Development milestones included in R&D guidance Source	full year 2025	$62 million	Raised from $60 million
Non-cash stock-based compensation excluded from non-GAAP guidance Source	full year 2025	approximately $90 million in R&D and $125 million in SG&A	Raised from approximately $85 million in R&D and $115 million in SG&A

What changed from last quarter

Guidance kept: Full year 2025 INGREZZA net product sales guidance was reaffirmed at $2,500 to $2,550 million. Source
Guidance raised: Full year 2025 expense ranges for GAAP and non-GAAP SG&A and GAAP R&D were raised; non-GAAP R&D low end rose and high end fell. Source
New: A second Phase 3 registrational trial for direclidine in schizophrenia is reported as initiated. The prior release reported a Phase 3 program for NBI-’568 in the same indication. Source
New: Mike Sibley was named Senior Vice President and General Manager of the Neuropsychiatry franchise. Source
New: Expansion of the INGREZZA and CRENESSITY sales teams was announced as a planned action. Source

Results and growth drivers

Total net product sales up 28%: Total net product sales were $790 million, up 16% from the second quarter of 2025 and 28% from the third quarter of 2024. Total revenues were $794.9 million against $622.1 million. Source
Non-GAAP diluted EPS rose to $2.17: Non-GAAP net income was $222.1 million and non-GAAP diluted EPS $2.17, against $189.2 million and $1.81 a year earlier. The release attributes the net income change mainly to higher net product sales and higher operating expenses. Source
GAAP net income and operating income higher: GAAP net income was $209.5 million and GAAP diluted EPS $2.04, against $129.8 million and $1.24. Operating income was $239.0 million, against $183.8 million in the third quarter of 2024. Source
Nine-month results compared with prior year: For the nine months, total revenues were $2,055.0 million against $1,727.6 million, and GAAP net income $324.9 million against $238.2 million. GAAP diluted EPS was $3.19 against $2.29; non-GAAP diluted EPS was $4.51 against $4.64. Source

INGREZZA and CRENESSITY sales

INGREZZA sales grew 12%: INGREZZA net product sales were $687 million, up 10% sequentially and 12% year over year. The release reports $686.6 million in the income table. Source
Prescription volume grew double digits: The release says double-digit volume growth was driven by patient demand. The prior release described the second quarter as a return to INGREZZA volume growth. Source
CRENESSITY launch sales reached $98 million: CRENESSITY net product sales were $98 million in the quarter and $166 million for the first nine months. The release reports 1,617 new patient enrollment forms through the first nine months. Source
CRENESSITY start forms lower than second quarter: Start forms were 540 in the third quarter, against 664 in the second quarter. Reimbursement coverage for dispensed scripts was 80%, against 76%. The documents give no reason for the change in start forms.
Collaboration revenue slightly lower: Collaboration revenue was $5.0 million against $5.5 million in the third quarter of 2024. Other revenues were $10.2 million against $9.2 million. Source

“INGREZZA achieved another record quarter in new patient starts and total prescriptions, further demonstrating continued unmet need within the tardive dyskinesia and Huntington’s chorea market.”
Kyle W. Gano, Ph.D., Chief Executive Officer of Neurocrine Biosciences

Costs, margins and other income

R&D spend rose on pipeline investment: GAAP R&D was $250.0 million against $195.0 million, and non-GAAP R&D $228.0 million against $180.2 million. The release links the increase to pre-clinical and clinical work, including the osavampator Phase 3 program in MDD. Source
SG&A rose on CRENESSITY launch: GAAP SG&A was $291.6 million against $234.3 million, and non-GAAP SG&A $259.4 million against $204.6 million. The release also cites continued INGREZZA investment, including the sales team expansion from September 2024. Source
Milestone expense fell to $1 million: Development milestone expense under collaborations was $1 million in the third quarter, against $39 million in the third quarter of 2024. Source
Equity investments gained $31 million: Changes in fair values of equity investments were a $31 million gain, against a $17 million loss a year earlier. The company excludes this item from non-GAAP results. Source

Pipeline and clinical data

Osavampator Phase 2 data presented: SAVITRI Phase 2 data for osavampator showed statistically significant and clinically meaningful improvement in depression severity at Day 28 and Day 56 with 1 mg once daily. The data received a 2025 Poster Award at the Psych Congress. Source
KINECT-PRO remission analysis presented: A post-hoc analysis of the Phase 4 KINECT-PRO open-label study reported rates of symptomatic remission of tardive dyskinesia with once-daily INGREZZA capsules, along with sustained patient-reported improvements. Source
Three-year Huntington's safety data: Open-label KINECT-HD2 data showed an established long-term safety profile, tolerability and sustained chorea improvement through three years of once-daily INGREZZA capsules in adults. Source

“With registration-enabling clinical trials enrolling for osavampator in major depressive disorder and direclidine in schizophrenia, Neurocrine Biosciences is well positioned to lead the next wave of innovation in neuroscience”
Kyle W. Gano, Ph.D., Chief Executive Officer of Neurocrine Biosciences

Leadership and commercial team

Neuropsychiatry sales leader's remit: The new Neuropsychiatry leader is responsible for sales and marketing strategy for the neuropsychiatry products, including the INGREZZA franchise. The release cites more than 20 years of commercial experience. Source
Sales expansion scope stated: The planned expansion covers both the INGREZZA and CRENESSITY sales teams. The release does not give a headcount or cost figure for the expansion. Source

Cash and balance sheet

Cash and securities near $2.1 billion: Cash, cash equivalents and marketable securities were $2,113.3 million at September 30, 2025, against $1,815.6 million at December 31, 2024. Source
Total assets and equity increased: Total assets were $4,265.7 million, against $3,718.7 million at December 31, 2024. Stockholders' equity was $3,003.6 million, against $2,589.7 million. Source
Diluted share count declined: Weighted average diluted shares were 102.5 million in the third quarter of 2025, against 104.3 million a year earlier. Basic shares were 99.4 million against 101.1 million. Source

Coming up, as management said on 28 October 2025

Sales team expansion due Q1 2026: The planned expansion of the INGREZZA and CRENESSITY sales teams is to be completed by the end of the first quarter of 2026. Source
R&D Day in San Diego: The company plans to host an R&D Day in San Diego on December 16, 2025. Source

Figures management reported

Figure	Reported
INGREZZA net product sales, third quarter 2025 Source	$687 million (income table: $686.6 million)
CRENESSITY net product sales, third quarter 2025 Source	$98 million
CRENESSITY new patient enrollment start forms Source	540 in third quarter 2025
Total net product sales, third quarter 2025 Source	$790 million
GAAP R&D expense, third quarter 2025 Source	$250.0 million
Pipeline milestone Source	Second Phase 3 registrational trial for direclidine initiated
Phase 2 trial readout Source	osavampator SAVITRI data at Day 28 and Day 56

Earlier plans management reported on

Not stated: The release reaffirms the full year 2025 INGREZZA net product sales range set in the prior release, while updating expense ranges. Source
Not stated: R&D guidance covers the continued advancement of the portfolio, including the initiation of the osavampator MDD and direclidine schizophrenia Phase 3 programs. Source

Other quarters

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.

As filed with the SEC

Open the filing on EDGAR

Neurocrine Biosciences Reports Third Quarter 2025 Financial Results

Achieved Total Net Product Sales of $790 Million Representing 28% Year-Over-Year Growth

INGREZZA® (valbenazine) Third-Quarter 2025 Net Product Sales of $687 Million Representing 12% Year-Over-Year Growth

CRENESSITY® (crinecerfont) Third-Quarter 2025 Net Product Sales of $98 Million with 540 Total New Patient Enrollment Start Forms

SAN DIEGO, Oct. 28, 2025 - Neurocrine Biosciences, Inc. (Nasdaq: NBIX) today announced its financial results for the third quarter ended September 30, 2025.

“Neurocrine’s third quarter commercial results highlight the meaningful impact that INGREZZA and CRENESSITY are having on patients’ lives. INGREZZA achieved another record quarter in new patient starts and total prescriptions, further demonstrating continued unmet need within the tardive dyskinesia and Huntington’s chorea market. CRENESSITY’s strong launch reflects its status as a first-in-class therapy that is changing standard of care treatment for patients with classic congenital adrenal hyperplasia,” said Kyle W. Gano, Ph.D., Chief Executive Officer of Neurocrine Biosciences. “With registration-enabling clinical trials enrolling for osavampator in major depressive disorder and direclidine in schizophrenia, Neurocrine Biosciences is well positioned to lead the next wave of innovation in neuroscience, advancing transformative therapies that meaningfully improve the lives of patients.”

Net Product Sales Highlights

Total net product sales for the third-quarter 2025 were $790 million, reflecting 16% sequential growth over the second quarter of 2025 and 28% growth year-over-year.
INGREZZA net product sales for the third-quarter 2025 were $687 million, reflecting 10% sequential growth over the second quarter of 2025 and 12% growth year-over-year. Double-digit volume growth was driven by strong patient demand, including record quarterly new and total prescriptions.
CRENESSITY net product sales for the third-quarter 2025 were $98 million and included 540 total new patient enrollment start forms reflecting strong patient demand with 80% reimbursement coverage for dispensed scripts.
CRENESSITY net product sales through the first nine months of 2025 were $166 million and included 1,617 total new patient enrollment forms.

Recent Clinical and Corporate Developments

Initiated second Phase 3 registrational clinical trial for direclidine, an oral muscarinic M4 selective orthosteric agonist, as a potential treatment for adults with schizophrenia.
Presented new data from the Phase 2 SAVITRI™ study, which showed statistically significant and clinically meaningful improvement in depression severity at Day 28 and Day 56 with once-daily oral administration of 1 mg osavampator. In recognition of the data presentation, the Company was honored with the 2025 Poster Award at the 38 annual Psych Congress in San Diego.
Presented new data from a post-hoc analysis of the Phase 4 KINECT-PRO™ open-label study confirming that robust rates of symptomatic remission of tardive dyskinesia were achieved with once-daily INGREZZA capsules. The analysis also showed sustained improvements in patient-reported outcomes among participants who achieved symptomatic remission.
Presented new data from the open-label KINECT®-HD2 study demonstrating an established long-term safety profile, tolerability and sustained improvements in chorea severity through three years of treatment with once-daily INGREZZA capsules in adults with Huntington's disease.
Announced the appointment of Mike Sibley as Senior Vice President and General Manager of the company's Neuropsychiatry franchise. Mr. Sibley, a proven leader with more than 20 years of commercial experience in the biopharmaceutical industry, will be responsible for developing and executing the sales and marketing strategy for Neurocrine's neuropsychiatry products, including the INGREZZA franchise.
Announced planned expansion of the INGREZZA and CRENESSITY sales teams to maximize commercial momentum. Expansion to be completed by the end of the first quarter of 2026.
Company to host R&D Day in San Diego on December 16, 2025.

Third Quarter 2025 Financial Results

	Three Months Ended September 30,				Nine Months Ended September 30,
(unaudited, in millions, except per share data)		2025		2024		2025		2024
Revenues:
INGREZZA Net Product Sales	$686.6		$612.9		$1,856.2		$1,698.4
CRENESSITY Net Product Sales	98.1		-		165.8		-
Other Revenues	10.2		9.2		33.0		29.2
Total Revenues	$794.9		$622.1		$2,055.0		$1,727.6
GAAP Research and Development (R&D)	$250.0		$195.0		$757.5		$545.5
Non-GAAP R&D	$228.0		$180.2		$690.9		$497.9
GAAP Selling, General, and Administrative (SG&A)	$291.6		$234.3		$854.4		$719.4
Non-GAAP SG&A	$259.4		$204.6		$759.3		$620.9
GAAP Net Income	$209.5		$129.8		$324.9		$238.2
GAAP Earnings Per Share - Diluted	$2.04		$1.24		$3.19		$2.29
Non-GAAP Net Income	$222.1		$189.2		$459.9		$482.9
Non-GAAP Earnings Per Share - Diluted	$2.17		$1.81		$4.51		$4.64
(unaudited, in millions)					September 30, 2025		December 31, 2024
Total Cash, Cash Equivalents, and Marketable Securities					$2,113.3		$1,815.6

Differences in third quarter 2025 GAAP and Non-GAAP operating expenses compared with third quarter 2024 were driven by:
Increased R&D expense in support of an expanded and advancing pre-clinical and clinical portfolio including investments in osavampator phase 3 program in major depressive disorder (MDD) and muscarinic franchise, including the direclidine phase 3 program as a potential treatment for adults with schizophrenia.
Increased SG&A expense including incremental investment in CRENESSITY related headcount and launch activities and continued investment in INGREZZA, including the expansion of the psychiatry and long-term care sales teams in September 2024.
Third quarter 2025 GAAP net income and earnings per share were $210 million and $2.04, respectively, compared with $130 million and $1.24, respectively, for third quarter 2024.
Third quarter 2025 Non-GAAP net income and earnings per share were $222 million and $2.17, respectively, compared with $189 million and $1.81, respectively, for third quarter 2024.
Differences in third quarter 2025 GAAP and Non-GAAP net income compared with third quarter 2024 were primarily driven by:
Higher net product sales of $173 million
Increased operating expenses in support of expanding and advancing R&D portfolio, incremental investment in CRENESSITY launch activities, and continued investment in INGREZZA, including the expansion of the psychiatry and long-term care sales teams in September 2024
Third quarter 2025 includes $1 million expense for development milestones achieved under collaborations, compared with $39 million for third quarter 2024
Third quarter 2025 includes $31 million gain from changes in fair values of equity investments, compared with a loss of $17 million for third quarter 2024 (Non-GAAP adjustment)
At September 30, 2025, the Company had cash, cash equivalents, and marketable securities totaling approximately $2.1 billion.

A reconciliation of GAAP to Non-GAAP financial results can be found in Table 3 and Table 4 at the end of this news release.

Reaffirmed Full Year 2025 INGREZZA Guidance and Updated Financial Guidance

	Range
(in millions)	Low	High
INGREZZA Net Product Sales	$2,500	$2,550
GAAP R&D Expense	$1,000	$1,020
Non-GAAP R&D Expense 2, 3	$910	$930
GAAP SG&A Expense	$1,140	$1,160
Non-GAAP SG&A Expense 3, 4	$1,010	$1,030

1.INGREZZA sales guidance reflects expected net product sales of INGREZZA in tardive dyskinesia and chorea associated with Huntington’s disease.

2.R&D guidance reflects the continued advancement of the Company’s pre-clinical and clinical portfolio including the initiation of Phase 3 programs for osavampator in MDD and direclidine in schizophrenia. R&D guidance includes $62 million of expense for development milestones primarily in connection with collaborations with Takeda and Nxera that were achieved or deemed probable to achieve. Acquired in-process research and development expense is included in guidance once significant collaboration and licensing arrangements have been completed.

3.Non-GAAP guidance adjusted to exclude estimated non-cash stock-based compensation expense of approximately $90 million in R&D and $125 million in SG&A and vacated legacy campus facility costs. Non-cash stock-based compensation expense for performance-based equity awards is included in guidance once the predefined performance-based criteria for vesting is achieved or deemed probable to achieve.

4.SG&A guidance range reflects expense for ongoing commercial initiatives supporting INGREZZA growth and the launch of CRENESSITY.

Conference Call and Webcast Today at 4:30 PM Eastern Time

Neurocrine Biosciences will hold a live conference call and webcast today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). Participants can access the live conference call by dialing 800-274-8461 (US) or 203-518-9814 (International) using the conference ID: NBIX. The webcast and accompanying slides can also be accessed at approximately 4:30 p.m. Eastern Time on Neurocrine Biosciences’ website under Investors at www.neurocrine.com. A replay of the webcast will be available on the website approximately one hour after the conclusion of the event and will be archived for approximately one month.

About Neurocrine Biosciences

Neurocrine Biosciences is a neuroscience-focused, biopharmaceutical company with a simple purpose: to relieve suffering for people with great needs. We are dedicated to discovering and developing life-changing treatments for patients with under-addressed neuropsychiatric, neurological, and neuroendocrine disorders. The company’s diverse portfolio includes U.S. FDA-approved treatments for tardive dyskinesia, chorea associated with Huntington’s disease, classic congenital adrenal hyperplasia, endometriosis* and uterine fibroids*, as well as a robust pipeline including multiple compounds in mid- to late-phase clinical development across our core therapeutic areas. For three decades, we have applied our unique insight into neuroscience and the interconnections between brain and body systems to treat complex conditions. We relentlessly pursue medicines to ease the burden of debilitating diseases and disorders, because you deserve brave science. For more information, visit neurocrine.com, and follow the company on LinkedIn, X and Facebook. (*in collaboration with AbbVie)

NEUROCRINE, the NEUROCRINE BIOSCIENCES Logo, YOU DESERVE BRAVE SCIENCE, INGREZZA, and CRENESSITY are registered trademarks of Neurocrine Biosciences, Inc.

Non-GAAP Financial Measures

In addition to the financial results and financial guidance that are provided in accordance with accounting principles generally accepted in the United States (GAAP), this press release also contains the following Non-GAAP financial measures: Non-GAAP R&D expense, Non-GAAP SG&A expense, and Non-GAAP net income and net income per share. When preparing the Non-GAAP financial results and guidance, the Company excludes certain GAAP items that management does not consider to be normal, including recurring cash operating expenses that might not meet the definition of unusual or non-recurring items. In particular, these Non-GAAP financial measures exclude: non-cash stock-based compensation expense, charges associated with convertible senior notes, vacated legacy campus facility costs, net of sublease income, non-cash amortization expense related to acquired intangible assets, changes in fair value of equity investments, changes in foreign currency exchange rates and certain adjustments to income tax expense. These Non-GAAP financial measures are provided as a complement to results provided in accordance with GAAP as management believes these Non-GAAP financial measures help indicate underlying trends in the Company's business, are important in comparing current results with prior period results and provide additional information regarding the Company's financial position. Management also uses these Non-GAAP financial measures to establish budgets and operational goals that are communicated internally and externally and to manage the Company's business and evaluate its performance. The Company provides guidance regarding combined R&D and SG&A expenses on both a GAAP and a Non-GAAP basis. A reconciliation of these GAAP financial results to Non-GAAP financial results is included in the attached financial information.

Forward-Looking Statements

Forward-looking statements notice

In addition to historical facts, this press release contains forward-looking statements that involve a number of risks and uncertainties. These statements include, but are not limited to, statements related to: the benefits to be derived from our products and product candidates; the value our products and/or our product candidates may bring to patients; the continued success of INGREZZA; successfully launching CRENESSITY; our financial and operating performance, including our future revenues, expenses, or profits; our collaborative partnerships; expected future clinical and regulatory milestones; and the timing of the initiation and/or completion of our clinical, regulatory, and other development activities and those of our collaboration partners. Factors that could cause actual results to differ materially from those stated or implied in the forward-looking statements, include but are not limited to the following: risks and uncertainties associated with Neurocrine Biosciences’ business and finances in general; risks and uncertainties associated with the commercialization of INGREZZA and CRENESSITY; risks related to the development of our product candidates; risks associated with our dependence on third parties for development, manufacturing, and commercialization activities for our products and product candidates, and our ability to manage these third parties; risks that the FDA or other regulatory authorities may make adverse decisions regarding our products or product candidates; risks that development activities may not be initiated or completed on time or at all, or may be delayed for regulatory, manufacturing, or other reasons, may not be successful or replicate previous clinical trial results, may fail to demonstrate that our product candidates are safe and effective, or may not be predictive of real-world results or of results in subsequent clinical trials; risks that the potential benefits of the agreements with our collaboration partners may never be realized; risks that our products, and/or our product candidates may be precluded from commercialization by the proprietary or regulatory rights of third parties, or have unintended side effects, adverse reactions or incidents of misuse; risks associated with government and third-party regulatory and/or policy efforts which may, among other things, impose sales and pharmaceutical pricing controls on our products or limit coverage and/or reimbursement for our products; risks associated with competition from other therapies or products, including potential generic entrants for our products; and other risks described in our periodic reports filed with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025. Neurocrine Biosciences disclaims any obligation to update the statements contained in this press release after the date hereof other than as required by law.

Contact: Neurocrine Biosciences, Inc.

Tony Jewell (Media)

858-617-7578 media@neurocrine.com

Todd Tushla (Investors)

858-617-7143 ir@neurocrine.com

TABLE 1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)		2025		2024		2025		2024
Revenues:
Net product sales	$789.9		$616.6		$2,035.6		$1,709.4
Collaboration revenue	5.0		5.5		19.4		18.2
Total revenues	794.9		622.1		2,055.0		1,727.6
Operating expenses:
Cost of revenues	14.0		8.0		34.5		24.7
Research and development	250.0		195.0		757.5		545.5
Acquired in-process research and development	0.3		1.0		0.4		9.5
Selling, general, and administrative	291.6		234.3		854.4		719.4
Total operating expenses	555.9		438.3		1,646.8		1,299.1
Operating income	239.0		183.8		408.2		428.5
Other income (expense):
Unrealized gain (loss) on equity investments	30.6		(16.9)		(6.7)		(35.2)
Charges associated with convertible senior notes	-		-		-		(138.4)
Investment income and other, net	22.2		23.4		64.5		68.5
Total other income (expense), net	52.8		6.5		57.8		(105.1)
Income before provision for income taxes	291.8		190.3		466.0		323.4
Provision for income taxes	82.3		60.5		141.1		85.2
Net income	$209.5		$129.8		$324.9		$238.2
Earnings per share, basic	$2.11		$1.28		$3.27		$2.37
Earnings per share, diluted	$2.04		$1.24		$3.19		$2.29
Weighted average common shares outstanding, basic	99.4		101.1		99.3		100.6
Weighted average common shares outstanding, diluted	102.5		104.3		102.0		104.0

TABLE 2

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions)	September 30, 2025	December 31, 2024
Cash, cash equivalents, and marketable securities	$1,114.8	$1,076.1
Other current assets	1,043.6	648.6
Total current assets	2,158.4	1,724.7
Deferred tax assets	368.5	485.7
Marketable securities	998.5	739.5
Right-of-use assets	468.9	509.4
Equity investments	118.1	124.8
Property and equipment, net	97.3	82.6
Intangible assets, net	35.7	36.5
Other noncurrent assets	20.3	15.5
Total assets	$4,265.7	$3,718.7
Current liabilities	$638.0	$507.7
Noncurrent operating lease liabilities	428.4	455.1
Other noncurrent liabilities	195.7	166.2
Stockholders’ equity	3,003.6	2,589.7
Total liabilities and stockholders’ equity	$4,265.7	$3,718.7

TABLE 3

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)		2025		2024		2025		2024
GAAP net income	$209.5		$129.8		$324.9		$238.2
Adjustments:
Stock-based compensation expense - R&D	22.0		14.8		66.6		47.6
Stock-based compensation expense - SG&A	31.7		26.7		92.7		81.5
Charges associated with convertible senior notes	-		-		-		138.4
Vacated legacy campus facility costs, net of sublease income	0.5		3.0		2.4		17.0
Non-cash amortization related to acquired intangible assets	1.0		0.9		3.0		2.7
Changes in fair values of equity investments	(30.6)		16.9		6.7		35.2
Other	0.3		-		0.7		0.3
Income tax effect related to reconciling items	(12.3)		(2.9)		(37.1)		(78.0)
Non-GAAP net income	$222.1		$189.2		$459.9		$482.9
Diluted earnings per share:
GAAP	$2.04		$1.24		$3.19		$2.29
Non-GAAP	$2.17		$1.81		$4.51		$4.64

1. Includes the following expenses:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)		2025		2024		2025		2024
Milestones (R&D)	$1.0		$38.8		$61.5		$71.4
Acquired in-process research and development (IPR&D)	$0.3		$1.0		$0.4		$9.5

2. Reflects charges associated with the settlement of convertible senior notes conversions.

3. Reflects impairment charges and other costs associated with our vacated legacy campus facilities, net of sublease income, as we transition to occupy our new campus facility.

4. Reflects periodic fluctuations in the fair values of equity investments.

5. Estimated income tax effect of Non-GAAP reconciling items are calculated using applicable statutory tax rates, taking into consideration any valuation allowance and adjustments to exclude tax benefits or expenses relating to charges associated with convertible senior notes and non-cash stock-based compensation.

TABLE 4

RECONCILIATION OF GAAP TO NON-GAAP EXPENSES

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)		2025		2024		2025		2024
GAAP cost of revenues	$14.0		$8.0		$34.5		$24.7
Adjustments:
Non-cash amortization related to acquired intangible assets	1.0		0.9		3.0		2.7
Non-GAAP cost of revenues	$13.0		$7.1		$31.5		$22.0
	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)		2025		2024		2025		2024
GAAP R&D	$250.0		$195.0		$757.5		$545.5
Adjustments:
Stock-based compensation expense	22.0		14.8		66.6		47.6
Non-GAAP R&D	$228.0		$180.2		$690.9		$497.9
	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)		2025		2024		2025		2024
GAAP SG&A	$291.6		$234.3		$854.4		$719.4
Adjustments:
Stock-based compensation expense	31.7		26.7		92.7		81.5
Vacated legacy campus facility costs, net of sublease income	0.5		3.0		2.4		17.0
Non-GAAP SG&A	$259.4		$204.6		$759.3		$620.9
	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)		2025		2024		2025		2024
GAAP other income (expense), net	$52.8		$6.5		$57.8		$(105.1)
Adjustments:
Charges associated with convertible senior notes	-		-		-		138.4
Changes in fair values of equity investments	(30.6)		16.9		6.7		35.2
Other	0.3		-		0.7		0.3
Non-GAAP other income, net	$22.5		$23.4		$65.2		$68.8