Revenue: As of FY2026 Q1, the actual value is USD 376.71 M, beating the estimate of USD 359.05 M.EPS: As of FY2026 Q1, the actual value is USD 1.22, missing the estimate of USD 1.2725.EBIT: As of FY2026 Q1, the actual value is USD 188.71 M.<h4>Revenue by Segment (Three Months Ended March 31)</h4><ul><li>Royalties: Increased to $240,681 thousand in 2026 from $168,192 thousand in 2025, a 43% increase, primarily driven by continued sales uptake of ENHANZE partner products, predominantly DARZALEX SC, VYVGART Hytrulo, and Phesgo .</li><li>Product Sales, Net: Total product sales, net, increased to $130,424 thousand in 2026 from $78,041 thousand in 2025, a 67% increase .<ul><li>Proprietary Product Sales: Increased to $41,873 thousand in 2026 from $36,341 thousand in 2025, a 15% increase .</li><li>Bulk rHuPH20 Sales: Increased significantly to $73,497 thousand in 2026 from $27,025 thousand in 2025, a 172% increase, driven by partner demand .</li><li>Device Partnered Product Sales: Increased slightly to $15,054 thousand in 2026 from $14,675 thousand in 2025, a 3% increase .</li></ul></li><li>Revenues Under Collaborative Agreements: Decreased to $5,603 thousand in 2026 from $18,628 thousand in 2025, a 70% decrease, mainly due to the timing of milestones achieved, with no upfront license or sales-based milestones in 2026 compared to $220 thousand and $15,000 thousand, respectively, in 2025 .</li></ul><h4>Operating Expenses (Three Months Ended March 31)</h4><ul><li>Total Operating Expenses: Increased to $192,191 thousand in 2026 from $123,326 thousand in 2025, a 56% increase .<ul><li>Cost of Sales: Increased to $79,238 thousand in 2026 from $48,403 thousand in 2025, a 64% increase, primarily due to higher bulk rHuPH20 sales .</li><li>Amortization of Intangibles: Increased to $29,512 thousand in 2026 from $17,762 thousand in 2025, a 66% increase, due to the acquisition of Elektrofi in November 2025 .</li><li>Research and Development (R&amp;D): Increased to $25,560 thousand in 2026 from $14,799 thousand in 2025, a 73% increase, mainly due to the acquisitions of Elektrofi and Surf Bio in Q4 2025 .</li><li>Selling, General and Administrative (SG&amp;A): Increased to $57,881 thousand in 2026 from $42,362 thousand in 2025, a 37% increase, driven by higher consulting, professional service fees (including litigation costs), and compensation expense, partly due to the Elektrofi and Surf Bio acquisitions .</li></ul></li></ul><h4>Other Financial Metrics (Three Months Ended March 31)</h4><ul><li>Net Income: Increased to $150,049 thousand in 2026 from $118,095 thousand in 2025 .</li><li>Operating Income: Increased to $184,517 thousand in 2026 from $141,535 thousand in 2025 .</li><li>Investment and Other Income, Net: Decreased to $1,318 thousand in 2026 from $6,818 thousand in 2025, primarily due to a decrease in the average invested balance .</li><li>Interest Expense: Increased to - $5,508 thousand in 2026 from - $4,525 thousand in 2025, due to the issuance of the 2031 and 2032 Convertible Notes in Q4 2025 .</li><li>Income Tax Expense: Increased to $30,278 thousand in 2026 from $25,733 thousand in 2025, primarily due to higher income before income tax expense .</li></ul><h4>Cash Flow (Three Months Ended March 31)</h4><ul><li>Net Cash Provided by Operating Activities: Increased to $180,078 thousand in 2026 from $154,221 thousand in 2025, mainly due to increased revenue, partially offset by higher working capital spend .</li><li>Net Cash Used in Investing Activities: Decreased to - $2,877 thousand in 2026 from - $90,422 thousand in 2025, primarily due to a net sale of marketable securities compared to a net purchase in the prior year, partially offset by increased capital expenditure for property and equipment .</li><li>Net Cash Used in Financing Activities: Decreased to - $1,613 thousand in 2026 from - $3,321 thousand in 2025, primarily due to an increase in net proceeds from common stock issuance under equity incentive plans .</li></ul><h4>Balance Sheet Items</h4><ul><li>Cash, Cash Equivalents, and Marketable Securities: Totaled $318.6 million as of March 31, 2026 .</li><li>Goodwill: $582,323 thousand as of March 31, 2026, up from $580,360 thousand as of December 31, 2025, due to measurement period adjustment from the Elektrofi acquisition .</li><li>Intangible Assets, Net: $951,955 thousand as of March 31, 2026, down from $981,467 thousand as of December 31, 2025 .</li><li>Total Convertible Notes Principal Amount: Remained at $2,179,574 thousand for both March 31, 2026, and December 31, 2025 .</li></ul><h4>Outlook and Strategy</h4>Halozyme Therapeutics, Inc. expects royalty revenue to continue growing, driven by increasing partner product sales of DARZALEX SC, Phesgo, and VYVGART Hytrulo, as well as contributions from recently launched ENHANZE partner products . Proprietary product sales, particularly XYOSTED, are also anticipated to grow due to continued market expansion . The company’s Board of Directors authorized a new capital return program to repurchase up to $1 billion of outstanding common stock by December 31, 2028, with at least $400 million expected to be bought back in 2026 .

Halozyme Therap | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 376.71 M