Harmony 2025 Q2 Earnings Net Income Surges 243.2%

Harmony (HRMY) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The results reflected strong top-line and bottom-line growth, with revenue and net income significantly outpacing the prior year. The company reaffirmed its full-year revenue guidance and outlined key pipeline advancements.

Harmony reported Q2 revenue of $200.49 million, up 16.0% year-over-year, in line with expectations. The company did not revise its full-year revenue guidance and remains on track to meet its projected range of $820 million to $860 million for 2025.

Revenue

Harmony’s revenue growth was driven by continued demand for its product offerings, with net product revenues totaling $200.49 million. This represents a substantial increase from $172.81 million in the same period a year ago, reflecting the company’s ongoing commercial momentum and market acceptance.

Earnings/Net Income

The company’s earnings showed robust improvement, with EPS rising 245.0% to $0.69 in Q2 2025 from $0.20 in Q2 2024. Net income surged 243.2% to $39.78 million compared to $11.59 million in the prior-year period. These figures highlight the company’s strengthening profitability and efficient cost management.

Price Action

Following the earnings release, Harmony’s stock exhibited mixed performance. It gained 2.07% during the latest trading day, declined 1.44% over the full trading week, but delivered a strong 8.64% increase month-to-date.

Post Earnings Price Action Review

Despite the strong earnings, a strategy of buying Harmony shares after the earnings report and holding for 30 days has historically underperformed. Over the past three years, this approach returned -53.97%, significantly lagging the 48.58% benchmark. The strategy’s excess return was -102.55%, with a compound annual growth rate (CAGR) of -23.49%, indicating a notable loss in value.

CEO Commentary

Jeffrey M. Dayno, CEO of Harmony Biosciences, emphasized the company’s sustained profitability and highlighted WAKIX’s 16% year-over-year revenue growth to $200.5 million. He underscored Harmony’s position as a self-funding, innovative biotech with a late-stage pipeline spanning sleep/wake, neurobehavioral, and rare epilepsy indications. Dayno also outlined future pipeline plans, including advancing ZYN002 for Fragile X syndrome and the development of pitolisant HD and GR formulations to expand the narcolepsy franchise. Additionally, he highlighted the strategic collaboration with Circ Biosciences for regenerative therapies and reiterated a disciplined approach to capital deployment.

Guidance

Harmony reaffirmed its full-year 2025 revenue guidance of $820 million to $860 million, with expectations of reaching $1 billion in narcolepsy revenue alone from WAKIX. The company anticipates initiating Phase III trials for pitolisant HD and GR in Q4 2025 and expects top-line data for ZYN002 in Fragile X syndrome by late Q3 2025. Non-GAAP adjusted net income is projected to continue reflecting strong profitability, supported by cash generation of $79 million in Q2 and controlled operating expenses of $114.2 million. Milestone payments totaling $33 million are also anticipated for ZYN002 and the orexin-2 program.

Additional News

On April 8, 2025, Harmony Biosciences presented promising data from its Open-Label Extension (OLE) study of ZYN002 in treating Fragile X syndrome (FXS) at the American Academy of Neurology (AAN) Annual Meeting. The updated data showed clinically meaningful improvements in irritability-related symptoms among participants. These findings are significant given the lack of FDA-approved treatments for FXS. The data, gathered from 240 patients aged 3 to 17, demonstrated that over 60% of participants experienced meaningful improvement in behavioral scores, while adverse events remained low. ZYN002 is currently in a Phase 3 trial and is being evaluated for potential regulatory approval. The product, a synthetic cannabidiol gel, has received Orphan Drug and Fast Track designations from the FDA and is being explored for use in other rare neurological conditions. This development underscores Harmony’s commitment to addressing unmet medical needs in rare neurological disorders.