Exelixis Reports Q2 2025 Financial Results with $184.8M Net Income and 11% Revenue Decline

Exelixis, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $184.8 million, or $0.68 per share, compared to $226.1 million, or $0.78 per share, in the same period last year. Total revenues for the quarter were $568.3 million, a decrease of 11% from $637.2 million in the second quarter of 2024. The decline was primarily attributed to a significant drop in collaboration revenues, which fell by 76% to $48.2 million, largely due to the absence of milestone payments that had been recognized in the previous year. In contrast, net product revenues increased by 19% to $520.0 million, driven by a 20% rise in sales of CABOMETYX, reflecting strong demand for the drug in combination therapies.

The company's financial position showed a decrease in total assets, which fell to $2.68 billion from $2.95 billion at the end of 2024. Current assets also declined, primarily due to a reduction in cash and cash equivalents, which decreased to $164.4 million from $217.4 million. Exelixis reported a total stockholders' equity of $2.03 billion, down from $2.24 billion at the end of the previous fiscal year. The decrease in equity was influenced by stock repurchases totaling $796.3 million, as part of a broader strategy to return value to shareholders.

Operationally, Exelixis has made significant strides in its product pipeline, particularly with zanzalintinib, which is undergoing pivotal trials for various cancer indications. The company has initiated several clinical trials, including STELLAR-303, which recently reported positive results in improving overall survival in patients with metastatic colorectal cancer. Additionally, Exelixis has expanded its collaboration with Ipsen and Takeda for the commercialization of CABOMETYX, which has received regulatory approvals in multiple international markets, including recent approvals in Brazil and Australia.

Looking ahead, Exelixis anticipates continued growth in net product revenues, particularly following the FDA's recent approval of CABOMETYX for previously treated advanced neuroendocrine tumors. However, the company also faces challenges, including increasing competition and the potential impact of generic drug approvals on its revenue streams. The management remains focused on leveraging its cash flows to support ongoing clinical trials and expand its oncology product pipeline, while also navigating the evolving landscape of drug pricing and reimbursement policies.