Exelixis misses Q2 revenue estimate by 2% on lower cabozantinib sales.

• Exelixis is under investigation for potential securities fraud and unlawful practices. • The company reported Q2 2025 net product revenues of $523.3 million, below estimates. • Investors advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.

Exelixis Inc. (NASDAQ: EXEL) is currently under investigation for potential securities fraud and unlawful business practices, according to recent reports. The company disclosed that its second quarter (Q2) 2025 net product revenues were $523.3 million, approximately 2% below the consensus estimate of $531.3 million. This revelation has sparked concerns among investors and financial professionals.

The investigation, led by Pomerantz LLP, is ongoing and aims to determine whether Exelixis and certain of its officers and/or directors have engaged in securities fraud or other unlawful practices. Investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980, for more information.

During the Q2 earnings call, Exelixis reported total revenues of $568 million, with $520 million from the cabozantinib franchise and $48.2 million in collaboration revenue. The company's net product revenues for CABOMETYX were $518 million, with clinical trial sales at $600,000, down from $12 million in the prior quarter. The U.S. CABO franchise year-over-year growth was 19%, reaching $520 million, driven by commercial demand and early neuroendocrine tumor (NET) launch contributions [2].

Operating expenses were $355 million, down from $369 million in the previous quarter, reflecting lower manufacturing, clinical, and general & administrative costs. GAAP net income was $184.8 million, or $0.68 per basic share ($0.65 per diluted share); non-GAAP net income was $212.6 million, or $0.78 per basic share ($0.75 per diluted share) [2].

Exelixis' stock repurchases totaled $32 million in shares retired, with 7.5 million shares bought back at an average price of $40.10; $204 million remains under the $500 million authorization. Cash and marketable securities at period-end were $1.4 billion, supporting R&D and further share repurchases [2].

The company's Zanzalutinib (ZANZA) STELLAR-303 results showed a statistically significant overall survival benefit in colorectal cancer intent-to-treat population, with phase 3 regulatory filings planned. The head and neck program, STELLAR-305, was discontinued before phase 3 due to clinical data, competition, and lower commercial opportunity compared to other ZANZA indications. The European regulatory milestone saw Ipsen receive European Commission approval for the NET indication, expected to expand royalty revenue as the launch progresses in Europe [2].

The One Big Beautiful Bill Act allowed for an immediate $147 million federal cash benefit by allowing accelerated R&D expensing, increasing financial flexibility without altering full-year income tax provisions [2].

The company's 2025 guidance remains unchanged, to be revisited as additional NET launch data and revenue opportunities emerge [2].

References:
[1] https://www.ainvest.com/news/exelixis-reports-q2-net-product-revenues-2-consensus-estimate-2508/
[2] https://www.fool.com/earnings/call-transcripts/2025/08/05/exelixis-exel-q2-2025-earnings-call-transcript/