Xeris (XERS) Q2 Revenue Jumps 49%

Xeris Biopharma (XERS -1.39%), a specialty pharmaceutical company focused on developing and commercializing injectable therapies, reported its Q2 2025 earnings on August 7, 2025. The release revealed record revenue and a notable swing to positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) (non-GAAP). Second-quarter revenue (GAAP) was $71.5 million, surpassing consensus estimates by $7.1 million (GAAP) (up 48.8% year over year (GAAP)), while net loss per share (GAAP) improved to $(0.01), beating the analysts' estimate of $(0.028). These results were fueled largely by the continued rapid growth of Recorlev, Xeris's lead therapy for Cushing’s syndrome, with Recorlev net revenue increasing approximately 136% year-over-year. The company’s adjusted EBITDA (non-GAAP) turned positive at $12.5 million, a substantial turnaround from a negative figure in the prior year. Based on these results, Xeris raised its full-year 2025 total revenue guidance (GAAP) to $280–$290 million (up from $260–$275 million), pointing to continued commercial momentum and confidence in its pipeline and product portfolio. Overall, the company delivered on key commercial and financial targets during the quarter.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About Xeris Biopharma and Business Priorities

Xeris Biopharma specializes in making injectable drugs more accessible and user-friendly, largely through its proprietary formulation technologies. Its core commercial products are Recorlev (used to treat Cushing’s syndrome), Gvoke (for severe hypoglycemia), and Keveyis (used in treating primary periodic paralysis, a rare neuromuscular disorder).

The company’s business model depends heavily on successful commercialization of its therapies, continued growth in patient adoption, and expansion driven by its XeriSol and XeriJect formulation technologies. Xeris also focuses on advancing its development pipeline, especially XP-8121, a once-weekly injectable for hypothyroidism. Key success factors are product adoption rates, the ability to secure and maintain regulatory approvals, and forming strategic partnerships—all necessary for funding new development and supporting long-term growth.

Quarter in Review: Highlights and Performance Drivers

In Q2 2025, revenue (GAAP) rose sharply year over year by 48.8%, reaching $71.5 million and beating the analyst consensus by 11.0% (GAAP revenue). This gain centers on the breakthrough performance of Recorlev, a cortisol synthesis inhibitor for patients with endogenous Cushing’s syndrome. Recorlev revenue soared 136% from the prior-year period to $31.4 million, now accounting for the biggest share of Xeris's portfolio. The number of patients on Recorlev increased 122%, reflecting both increased market demand and the success of earlier salesforce expansion. Management credits this outsized growth to focused resources and a strong push into the addressable market for Cushing’s syndrome treatments.

Gvoke, Xeris’s glucagon injection for severe hypoglycemia, contributed revenue growth of 17.1% year-over-year to $23.5 million (GAAP). Prescription volumes rose 5% for Gvoke, benefiting from favorable pricing trends and expanding market reach. The Gvoke product line also expanded, as the Gvoke VialDx variant secured regulatory approval and triggered a milestone payment through its commercial partnership with American Regent in Q1 2025. Unlike Recorlev, Keveyis saw sales decline approximately 13% year-over-year, due to a reduction in product shipments.

Operating costs were higher, with selling, general, and administrative (SG&A) expenses up 11% and research and development (R&D) spending climbing 40% to $8.1 million (GAAP). The jump in R&D mainly reflects investment in XP-8121, a once-weekly injectable therapy for hypothyroidism, which Xeris is preparing for Phase 3 trials. The company’s proprietary platform technologies, XeriSol and XeriJect, not only underpin Gvoke and XP-8121 but also position Xeris as a potential partner for other drugmakers seeking to create stable, ready-to-use injectables. This quarter, platform-derived revenue was boosted by the Gvoke VialDx partnership.

Xeris also managed its costs as revenue scaled, resulting in a significant shift to positive adjusted EBITDA (non-GAAP) of $12.5 million from a negative figure in the prior period. However, the company’s cash balance (GAAP) fell to $59.3 million at Q2 2025 quarter end (from $71.6 million at year-end 2024), and its share count grew to 161.5 million as of July 31, 2025. There were no major regulatory or competitive disruptions reported during the quarter, and management indicated that the U.S.-centered manufacturing base shields operations from tariff risk.

Looking Ahead: Company Outlook and Watch List

On the back of these results, management raised full-year 2025 total revenue guidance to $280–$290 million (from a prior range of $260–$275 million). This guidance implies expectations for continued robust growth in the second half of FY2025. Xeris projects ongoing positive adjusted EBITDA (non-GAAP), supported by margin improvement and operational discipline as revenue expands.

Beyond 2025, leadership outlined long-term ambitions, including a total revenue target of $750 million by 2030. Recorlev is targeted to approach $1 billion in annual net revenue by 2035, and XP-8121 is positioned as a future $1–$3 billion peak net revenue product, though timing for these milestones is still to be defined. In terms of risk, ongoing attention remains on the performance of Keveyis, the scaling of R&D and SG&A costs, and cash usage relative to funding needs. XERS does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.