Exelixis 2025 Q2 Earnings Mixed Performance as Net Income Declines 18%

Exelixis (EXEL) reported its fiscal 2025 Q2 earnings on Jul 28th, 2025. Exelixis posted second-quarter 2025 revenue of $568.3 million, slightly lower than expectations, primarily due to a drop in collaboration revenues compared to the previous year. The company maintained its full-year guidance, expecting total 2025 revenues between $2.25 billion and $2.35 billion. Exelixis' performance will depend on the continued success of CABOMETYX and potential regulatory approval for zanzalintinib in new indications.

Revenue

Exelixis saw a decline in total revenue by 10.8% to $568.26 million for Q2 2025, down from $637.18 million in Q2 2024. Net product revenues for the quarter were $520.01 million, while collaboration revenues totaled $48.25 million. The reduction was largely due to the absence of a significant $150 million milestone payment from Ipsen in the previous year.

Earnings/Net Income

Exelixis experienced a decline in EPS to $0.68 in Q2 2025 from $0.78 in Q2 2024. The company's net income decreased 18.3% to $184.85 million in Q2 2025 from $226.12 million in Q2 2024, marking a challenging quarter for earnings.

Price Action

Post-Earnings Price Action Review

The strategic decision to invest in Exelixis (EXEL) shares following a revenue increase quarter-over-quarter on the earnings release date and holding for 30 days has yielded strong returns over the last three years. The approach has delivered an overall return of 89.04%, surpassing the benchmark return of 88.74% by a margin of 0.30%. With a compound annual growth rate (CAGR) of 13.65% and a maximum drawdown of zero, the strategy has shown stable performance with minimal risk. The Sharpe ratio of 0.37 indicates a favorable risk-adjusted return, and the volatility is measured at 36.64%. This strategy highlights the consistent performance and potential benefits of disciplined investment timing based on quarterly financial outcomes.

CEO Commentary

Michael M. Morrissey, CEO, emphasized Exelixis' robust second-quarter performance, particularly highlighting the strong 19% growth in net product revenues from the cabozantinib U.S. business. Morrissey expressed confidence in the company's focus on accelerating the cabozantinib franchise and building a multi-compound oncology business, aiming to solidify leadership in oncology drug discovery, development, and commercialization through innovation and collaboration.

Guidance

Exelixis reiterated its full-year 2025 financial guidance, expecting total revenues to reflect momentum from new product launches and additional revenue opportunities. The company anticipates continued growth in net product revenues driven by the cabozantinib franchise and remains committed to capital allocation while advancing R&D priorities. Further updates to 2025 financial guidance will be evaluated as clarity on revenue opportunities is gained.

Additional News

Exelixis has been actively repurchasing its stock under the authorization of two separate programs, totaling $1 billion, set to conclude by December 31, 2025. As of June 30, 2025, Exelixis has repurchased $796.3 million of common stock, reducing the outstanding shares significantly and aiming to enhance shareholder value. In a notable development, Exelixis reached a settlement agreement with Biocon Pharma Limited, allowing Biocon to market its generic version of CABOMETYX in the U.S. starting January 1, 2031, pending FDA approval. These strategic actions underscore Exelixis' focus on strengthening its market position and securing its intellectual property rights.