Skip to content
    JAZZ
    Earnings call· Dec 2025(Q4 FY25)

    Jazz Pharmaceuticals Q4 FY25 earnings call JAZZ

    Feb 24, 2026 Source

    Executive summary

    Jazz Pharmaceuticals Q4 FY25 — Record Revenue and Strategic Focus on Rare Disease

    Jazz Pharmaceuticals delivered record financial performance in Q4 and full-year 2025, driven by strong growth in Xywav, Epidiolex, and the successful launch of Modeyso. The company is sharpening its strategic focus on rare disease, leveraging its proven capabilities and pursuing business development opportunities to drive durable growth. While facing evolving competitive dynamics in the sleep market, Jazz remains confident in its differentiated product portfolio and robust pipeline.

    Highlights

    5

    • Achieved record total revenue of $4.3 billion for FY25, marking the 21st consecutive year of topline growth.

    • Fourth quarter revenue reached an all-time high of $1.2 billion, reflecting 10% year-over-year growth.

    • Modeyso generated $48 million in revenue in 2025, following its launch in August.

    • Xywav revenue grew 12% to approximately $1.7 billion for FY25, with 500 net patient adds in Q4 and over 2,000 in FY25.

    • Epidiolex achieved blockbuster status with $1.1 billion in revenue, up 9% year-over-year, driven by 7% volume growth.

    Concerns

    3

    • Rare Sleep revenue is expected to modestly decrease in 2026 to $1.8 billion-$1.9 billion, primarily due to generic Xyrem and Hikma AG revenue.

    • Non-GAAP adjusted gross margin is guided to 90%-91% for 2026, a slight decline from 2025 due to higher royalties and potential tariffs.

    • Decision to stop development of JZP441 and end partnership with Sumitomo due to continued assessment of the molecule.

    Guidance & targets

    16
    CategoryTargetConfidence
    Total Revenue
    $4.25 billion to $4.50 billion
    high materiality
    High
    Rare Oncology and Epilepsy Revenue Growth
    double-digit growth
    high materiality
    High
    Total Rare Sleep Revenue
    $1.8 billion to $1.9 billion
    high materiality
    High
    Xywav Revenue Growth
    flat to up mid-single digits
    medium materiality
    Medium
    Non-GAAP Adjusted Gross Margin
    90% to 91%
    medium materiality
    High
    Non-GAAP Adjusted SG&A
    $1.26 billion to $1.32 billion
    medium materiality
    High
    Non-GAAP Adjusted R&D
    $725 million to $775 million
    medium materiality
    High
    Non-GAAP Adjusted Effective Tax Rate
    11.5% and 13.5%
    low materiality
    High
    Fully Diluted Shares Outstanding
    65 million to 66 million
    low materiality
    High
    Zanidatamab GEA Launch
    potential to launch in the second half of 2026
    high materiality
    Medium
    Zanidatamab sBLA Submission
    expect to complete the submission for our supplemental biologics license application for zanidatamab under real-time oncology review in the first quarter of this year
    high materiality
    High
    Zanidatamab GEA OS Interim Analysis
    expected mid this year
    medium materiality
    High
    EmpowHER Trial Enrollment Completion
    first half of 2027
    medium materiality
    High
    EmpowHER Trial Top-line Data
    late 2027 or early 2028
    high materiality
    High
    Modeyso ACTION Trial Interim OS Readout
    later this year or early 2027
    high materiality
    High
    Business Development Deals
    announce one or more deals in 2026
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Rare Sleep
    Includes Xywav, Xyrem, and High-Sodium Oxybate Authorized Generic royalties. Xywav is the #1 branded treatment for Narcolepsy and the only FDA-approved treatment for IH. The segment faces evolving competitive landscape with generic high sodium oxybate products.
    Xywav Revenue: $1.7 billionXywav Growth YoY: 12%Xywav Q4 Revenue: $465 millionXywav Q4 Growth YoY: 16%Xywav Net Patient Adds (Q4): 500Xywav Net Patient Adds (FY25): >2,000Xywav Active IH Patients Growth: 34%Xywav Total Patients: >16,000Xyrem Revenue (FY25): $146 million
    		$2.0 billion———
    Epidiolex
    Achieved blockbuster status. Year-on-year growth in Q4 was negatively impacted by higher-than-normal inventory levels at the end of Q4 2024. Greatest growth opportunity seen in the adult patient population and expanded reach in long-term care settings.
    Volume Growth (FY25): 7%Q4 Revenue: $287 millionQ4 Growth YoY: 4%
    		$1.1 billion9%——
    Modeyso
    Launched in August 2025. Strong early performance driven by significant unmet need and high awareness. Early uptake largely within academic centers of excellence. Peak sales opportunity assumes positive ACTION study results.
    Patients Received (2025): >360Peak Sales Opportunity (U.S.): >$500 million
    		$48 million———
    Zepzelca
    Received FDA approval for combination with Tecentriq in first-line maintenance setting for extensive stage small cell lung cancer in October. Q4 growth primarily driven by initial demand in the front-line segment. Expects a shift in utilization from declining second-line use to increased adoption in first-line maintenance.
    Q4 Revenue: ~$90 millionQ4 Growth YoY: 15%
    		$307 million———

    Operational metrics

    15
    Total Revenue
    $4.3 billion5% growth over 2024
    FY25

    Record total revenues for the full year.

    Total Revenue
    $1.2 billion10% year-over-year growth
    Q4 FY25

    Highest revenue quarter ever.

    Non-GAAP Adjusted Net Income
    $522 million
    FY25

    Full year 2025 non-GAAP adjusted net income.

    Non-GAAP Adjusted EPS
    $8.38
    FY25

    Full year 2025 non-GAAP adjusted EPS.

    Cash and Investments Balance
    $2.4 billion
    end of FY25

    Ended the year with a strong balance sheet.

    Net Debt to EBITDA Ratio
    1.5x
    end of FY25

    Substantially deleveraged on a net basis.

    Deferred Tax Asset Recognition
    $200 million
    post-acquisition

    Generated significant financial value by recognizing a deferred tax asset from the Chimerix acquisition, which will reduce future cash taxes.

    Priority Review Voucher Sale Proceeds
    $200 million
    January 2026

    Gross proceeds from the sale of a Priority Review Voucher, with half flowing to Jazz.

    Xywav Net Patient Adds
    500
    Q4 FY25

    Reflects continued physician and patient resonance with Xywav's benefits.

    Xywav Net Patient Adds
    >2,000
    FY25

    Total net patient adds for the full year 2025.

    Xywav Active IH Patients Growth
    34%
    FY25

    Significant increase in net active IH patients, a key growth driver for Xywav.

    Xywav Total Patients
    >16,000
    end of FY25

    Number of patients taking Xywav at the end of 2025.

    Epidiolex Volume Growth
    7%
    FY25

    Underlying demand driving growth for Epidiolex.

    Modeyso Patients Treated
    >360
    2025

    Number of patients who received Modeyso in 2025 since its August launch.

    Xyrem Revenue
    $146 million
    FY25

    Expected to further reduce in 2026 due to generic high sodium oxybate products.

    Industry KPIs

    6
    MetricValueDetails
    Peak sales guidance>$500 millionUSD
    EPS revenue guidanceTotal Revenue: $4.25 billion to $4.50 billion; Non-GAAP Adjusted EPS: Not guided for FY26USD
    Pipeline clinical milestonesRobust development program underway
    Regulatory approvals filingsZepzelca approval for first-line maintenance setting
    Clinical trial efficacy safety dataZanidatamab + atezolizumab + chemotherapy: >7 months improvement in OS, 28% reduction in risk of death
    Business development capacity deal appetiteSignificant flexibility to invest

    Deals & partnerships

    4
    ChimerixAcquisition of Chimerix, securing Modeyso.

    Acquisition completed in April 2025, leading to rapid approval and launch of Modeyso.

    UndisclosedSale of Priority Review Voucher.$200 million

    Announced in January 2026, the sale generated $200 million in gross proceeds.

    SumitomoPartnership for JZP441 development.

    Partnership ended due to the decision to stop development of JZP441 based on continued assessment of the molecule.

    Boehringer IngelheimCollaboration to combine zanidatamab with zongertinib.

    A Phase I trial was recently initiated to explore the combination in metastatic HER2-positive breast cancer and other potential tumor types.

    Risks & headwinds

    4
    Evolving Sleep Market CompetitionFY26, particularly H2 2026

    Rare Sleep revenue guidance of $1.8 billion to $1.9 billion for FY26 (down from $2.01 billion in FY25); Xyrem revenue of $146 million in FY25 expected to further reduce.

    Mitigation: Focus on Xywav's differentiated low-sodium profile and IH indication; strong payer contracts in place; physicians' motivation to prescribe low-sodium option despite step edits; continued disease awareness campaigns.

    Higher Royalties and Tariffs Impacting Gross MarginFY26

    Non-GAAP adjusted gross margin guidance of 90%-91% for FY26, a slight decline from 2025.

    Mitigation: Offset by productivity efforts across global commercial organization, lower facilities expenses, and lower legal fees, as reflected in stable SG&A guidance.

    Generic High Sodium Oxybate EntryFY26, with impact building in H2

    Two generic high sodium oxybate products entering the market; modest step down in Hikma AG royalty rate from 2025 to 2026.

    Mitigation: Xywav's unique safety benefits and IH indication; expectation that generics will take time to build volume; strong payer contracts; physician commitment to low-sodium option.

    Potential Entry of New Wake-Promoting AgentsH2 2026

    Could see entry of at least one new wake-promoting agent in the market.

    Mitigation: Xywav's ability to offer nighttime benefits that daytime waking agents cannot; continued focus on Xywav's differentiation.

    What to watch in Q1 FY26

    5

    Zanidatamab sBLA Submission Completion

    Q1 FY26
    CurrentExpected in Q1 2026
    TargetSubmission completed

    Why it matters

    This is a critical step towards potential regulatory approval and launch of zanidatamab in first-line metastatic GEA, a key growth driver.

    On the regulatory front, we expect to complete the submission for our supplemental biologics license application for zanidatamab under real-time oncology review in the first quarter of this year.

    Q&A highlights

    6

    Clarification on Xywav's flat to mid-single-digit growth guidance for 2026, specifically regarding the impact of generic high sodium oxybate products in H1 vs. H2 and potential payer concessions.

    Management confirmed that Xywav enters 2026 well-positioned with strong momentum and payer contracts. They expect minimal impact from generics in H1 2026, but anticipate increased competitive dynamics in H2 due to generics building volume and potential entry of new wake-promoting agents. Xywav's differentiation as the only low-sodium oxybate and FDA-approved IH treatment is expected to drive continued growth, particularly from the IH segment.

    “We also now have better line of sight into the timing of entry for generic high sodium oxybate products where it appears that now we've got two as we speak, that are in the process of having their launch that could have occurred as early as December 31 of last year, but is occurring now.”

    asked by Jason Gerberry · answered by Philip Johnson

    3 min read6 chapters

    Detailed Narrative

    01

    Strategic Focus on Rare Disease

    Jazz Pharmaceuticals is sharpening its strategic focus on rare disease, leveraging its established capabilities and commitment to delivering life-changing medicines. This strategy aims to strengthen current franchises and expand into new rare disease areas, supported by multiple attractive dynamics in the space. The company plans to announce future pipeline advancements and new business development transactions aligned with this focus, building on a proven track record in corporate development.

    02

    Strong Commercial Performance Across Key Products

    The company reported strong commercial execution across its diversified portfolio. Xywav delivered over $2 billion in total revenue in 2025, with 12% growth to $1.7 billion, driven by its low-sodium profile and IH indication. Epidiolex achieved blockbuster status with $1.1 billion in revenue, up 9% year-over-year, with growth opportunities identified in the adult patient population and improved persistency through the Navigator program. Modeyso, launched in August 2025, generated $48 million in revenue, reflecting significant unmet need and strong early uptake in academic centers.

    03

    Zanidatamab: A Key Growth Driver in Oncology

    Zanidatamab (Ziihera) is positioned as a key pillar of future growth, with practice-changing Phase III Horizon GEA results demonstrating a clinically meaningful and statistically significant improvement in OS. The FDA granted Breakthrough Designation for zanidatamab in GEA, with an sBLA submission expected in Q1 2026 and potential launch in H2 2026. A robust development program is underway, including the EmpowHER trial in metastatic breast cancer, with enrollment expected to complete in H1 2027 and top-line data in late 2027 or early 2028.

    04

    Pipeline Advancements and Strategic Adjustments

    Jazz is advancing its R&D pipeline with several promising opportunities. JZP047, a novel chemical entity developed in-house, initiated a Phase I study for absence epilepsy. A Phase Ib trial of Epidiolex in focal onset seizures was also initiated. The company made a strategic decision to stop the development of JZP441 and end its partnership with Sumitomo, but remains committed to investigating backup orexin programs. The Modeyso ACTION trial is expected to have an interim overall survival readout in late 2026 or early 2027.

    05

    Financial Strength and Capital Allocation

    Jazz reported a strong financial position, generating $1.4 billion of cash from operations in 2025 and ending the year with $2.4 billion in cash and investments. The company has substantially deleveraged, with net debt/EBITDA at approximately 1.5x. This robust financial flexibility supports investments in commercial and R&D programs, as well as corporate development opportunities. The company expects to announce one or more deals in 2026, aligning with its rare disease focus.

    06

    Evolving Sleep Market Dynamics

    The rare sleep franchise, while delivering strong performance in 2025, faces an evolving competitive landscape in 2026. The introduction of two generic high sodium oxybate products and a modest step down in Hikma AG royalty rates are expected to lead to a modest decrease in total Rare Sleep revenue. However, Xywav is expected to maintain its position with flat to mid-single-digit growth, supported by its differentiated low-sodium profile and strong payer contracts, despite potential entry of new wake-promoting agents in H2 2026.

    AI-generated summary of the company’s earnings call. Not investment advice.