Alkermes (ALKS) Q4 2025 earnings summary

Executive summary

• 2025 total revenues were $1.48 billion, with proprietary product net sales up 9% year-over-year and strong cash flow and profitability despite the expiration of INVEGA SUSTENNA® royalties in August 2024.

• The acquisition of Avadel in February 2026 expanded the commercial portfolio, introduced LUMRYZ®, and is expected to augment revenue growth and profitability.

• The business is anchored by a diverse commercial product portfolio, robust pipeline, and a strengthened commercial platform for future launches.

• Alixorexton, a late-stage candidate for narcolepsy, received FDA Breakthrough Therapy designation and is entering phase 3 trials in Q1 2026.

• Leadership transition announced: CEO role to pass to Blair Jackson in summer 2026, with Richard Pops remaining as chairman.

Financial highlights

• FY 2025 total revenue was $1,475.9M, with proprietary product net sales of $1.18B, up from $1.08B in 2024.

• Key product net sales in 2025: VIVITROL $467.9M, ARISTADA $370M, LYBALVI $346.7M; manufacturing and royalty revenues $291.3M.

• 2025 GAAP net income was $241.7M, EBITDA $285.6M, and adjusted EBITDA $394M; diluted EPS was $1.43.

• Cash, cash equivalents, and total investments at year-end 2025 were $1.32B, up from $824.8M at year-end 2024.

• Avadel acquisition funded with $775M cash and $1.525B in term loans due 2031.

Outlook and guidance

• 2026 total revenue guidance: $1.73B–$1.84B, with proprietary product sales of $1.52B–$1.6B.

• Net sales guidance for 2026: VIVITROL $460M–$480M, LYBALVI $380M–$400M, ARISTADA $365M–$385M, LUMRYZ $315M–$370M.

• 2026 adjusted EBITDA guidance: $370M–$410M; GAAP net loss expected ($115M–$135M) due to acquisition-related accounting.

• R&D expenses projected at $445M–$485M, reflecting expanded development activities.

• SG&A expenses expected at $890M–$930M, including $50M in one-time transaction costs.