Exelixis, Inc. reported third‑quarter 2025 results that surpassed Wall Street expectations, with total revenue of $597.8 million, up 10.8% from $535.8 million in Q3 2024. Net product revenue rose to $542.9 million, driven by a 12% increase in CABOMETYX sales and a 50% jump in the newly approved neuroendocrine tumor indication. GAAP diluted earnings per share were $0.69, a $0.01 beat over the consensus estimate of $0.68, while non‑GAAP diluted EPS of $0.78 exceeded the $0.68 estimate by $0.10, a 14.7% beat.
The revenue lift was largely attributable to CABOMETYX, which generated $539.9 million in net product revenue—up 12% from $480.5 million in the same quarter last year. The neuroendocrine tumor launch added $46.3 million in royalty revenue, and collaboration revenue from COMETRIQ contributed $3.1 million. The company’s gross‑to‑net deductions increased to 30.4% in Q3 2025, up from 30.2% in Q2 2025, reflecting higher 340B discounts and a modest rise in pharmacy benefit manager rebates. This margin compression is consistent with the industry trend of increasing discount pressure on oncology products.
Management raised full‑year 2025 revenue guidance to $2.30 billion–$2.35 billion from the prior $2.25 billion–$2.30 billion range, and net product revenue guidance to $2.10 billion–$2.15 billion from $2.05 billion–$2.10 billion. The upward revision signals confidence in sustained demand for CABOMETYX, the momentum from the neuroendocrine tumor launch, and the expected impact of the positive Phase 3 STELLAR‑303 results for zanzalintinib. The company also announced an additional $750 million stock‑repurchase program through 2026, underscoring management’s belief in the strength of its cash‑flow generation.
Investors reacted positively to the earnings beat and guidance raise. Analysts highlighted the company’s ability to maintain profitability amid rising discount pressure and noted the strong performance of the CABOMETYX franchise as a key driver of the results. The announcement of the new stock‑repurchase program was viewed as a signal of confidence in the company’s financial health and a commitment to shareholder returns.
Michael M. Morrissey, Ph.D., President and Chief Executive Officer, said the quarter “demonstrated the continued momentum of the CABOMETYX franchise, with sustained growth in renal cell carcinoma and a 50% increase in neuroendocrine tumor sales.” He added that the positive STELLAR‑303 data for zanzalintinib “positions the company for a potential NDA submission in the U.S. before year‑end, further expanding the pipeline beyond CABOMETYX.”
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