Zai Lab Q2 2025 Earnings: Revenue Up 9% YoY, Operating Loss Down 28%

Zai Lab reported a 9% YoY increase in total revenues to $110 million in Q2 2025, reaffirming its full-year revenue guidance. The company highlighted progress in its product pipeline and strategic initiatives aimed at achieving profitability by Q4 2025. Operating loss reduced by 28% YoY to $54.9 million, with product revenue driven by strong sales of VYVGART, XACDURO, and NUZYRA. The firm aims to continue its trajectory towards becoming a leading global biopharma company.

Zai Lab Limited (NASDAQ: ZLAB) reported a 9% year-over-year (YoY) increase in total revenues to $110 million in the second quarter (Q2) of 2025, reaffirming its full-year revenue guidance. The company highlighted progress in its product pipeline and strategic initiatives aimed at achieving profitability by the fourth quarter (Q4) of 2025.

The company's shares were down 2.30% in pre-market trading following the announcement, despite the revenue miss. Zai Lab reported earnings per share of -$0.04, significantly better than the expected -$0.41, representing a 28% YoY improvement in operating loss. VYVGART, a bright spot in the quarter, reached record patient utilization with sales of $26.5 million, up 46% from the first quarter. Meanwhile, ZEJULA sales declined to $41.0 million from $45.0 million in the same period last year due to "evolving competitive dynamics within the PARPi class," according to the company.

"Zai Lab is entering a pivotal period – defined by innovation, scale, and strong execution," said Dr. Samantha Du, Founder, Chairperson, and CEO of Zai Lab. "We are making meaningful progress throughout our business – expanding patient impact, accelerating global innovation, and operating with financial discipline."

Despite the revenue miss, Zai Lab reaffirmed its full-year 2025 revenue guidance of $560-590 million, which aligns with the analyst consensus of $567.7 million. The company also maintained it is on track to achieve profitability in the fourth quarter of 2025. The company highlighted positive clinical developments, including promising data for its ZL-1310 (DLL3 ADC) treatment, which showed a 67% objective response rate across all doses in second-line small cell lung cancer patients.

Zai Lab ended the quarter with $832.3 million in cash, cash equivalents, and short-term investments, compared to $857.3 million at the end of the first quarter.

References:
[1] https://www.marketscreener.com/news/zai-lab-limited-reaffirms-revenue-guidance-for-the-full-year-2025-ce7c5edfdd8cf526
[2] https://www.investing.com/news/earnings/zai-lab-misses-revenue-expectations-shares-slip-over-2-93CH-4175885
[3] https://seekingalpha.com/news/4482195-zai-lab-reaffirms-560m-590m-2025-revenue-target-as-vyvgart-and-pipeline-drive-growth