Jazz Pharmaceuticals Announces Full Year and Fourth Quarter 2025 Financial Results and Provides 2026 Financial Guidance
17.03.2026 - 18:32:23 | prnewswire.co.ukNon-GAAP Financial Measures
To supplement Jazz Pharmaceuticals' financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP (also referred to as adjusted or non-GAAP adjusted) financial measures in this press release and the accompanying tables. In particular, the Company presents non-GAAP adjusted net income (and the related per share measure) and its line-item components, as well as certain non-GAAP adjusted financial measures derived therefrom, including non-GAAP adjusted gross margin percentage and non-GAAP adjusted effective tax rate. Non-GAAP adjusted net income (and the related per share measure) and its line-item components exclude from GAAP reported net income (loss) (and the related per share measure) and its line-item components certain items, as detailed in the reconciliation tables that follow, and in the case of non-GAAP adjusted net income (and the related per share measure), adjust for the income tax effect of the non-GAAP adjustments. In this regard, the components of non-GAAP adjusted net income, including non-GAAP adjusted cost of product sales, SG&A expenses and R&D expenses, are income statement line items prepared on the same basis as, and therefore components of, the overall non-GAAP adjusted net income measure.
The Company believes that each of these non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors and analysts and that each of these non-GAAP financial measures, when considered together with the Company's financial information prepared in accordance with GAAP, can enhance investors' and analysts' ability to meaningfully compare the Company's results from period to period, to its forward-looking guidance, and to identify operating trends in the Company's business. In addition, these non-GAAP financial measures are regularly used by investors and analysts to model and track the Company's financial performance. Jazz Pharmaceuticals' management also regularly uses these non-GAAP financial measures internally to understand, manage and evaluate the Company's business and to make operating decisions, and compensation of executives is based in part on certain of these non-GAAP financial measures. Because these non-GAAP financial measures are important internal measurements for Jazz Pharmaceuticals' management, the Company also believes that these non-GAAP financial measures are useful to investors and analysts since these measures allow for greater transparency with respect to key financial metrics the Company uses in assessing its own operating performance and making operating decisions. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures; should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP; have no standardized meaning prescribed by GAAP; and are not prepared under any comprehensive set of accounting rules or principles in the reconciliation tables that follow. In addition, from time to time in the future there may be other items that the Company may exclude for purposes of its non-GAAP financial measures; and the Company has ceased, and may in the future cease, to exclude items that it has historically excluded for purposes of its non-GAAP financial measures. In this regard, commencing with the first quarter of 2025, the Company is no longer including an adjustment for non-cash interest expense in the Company's non-GAAP adjusted financial measures. For purposes of comparability, non-GAAP adjusted financial measures for the 2024 periods have been updated to reflect this change. Likewise, the Company may determine to modify the nature of its adjustments to arrive at its non-GAAP financial measures. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measures as used by Jazz Pharmaceuticals in this press release and the accompanying tables have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to: the Company's growth prospects and future financial and operating results, including the Company's 2026 financial guidance and the Company's expectations related thereto, including with respect to anticipated catalysts; anticipated multiple near-term pipeline catalysts that each represent significant opportunities to drive greater revenue and create long-term value; the Company's advancement of pipeline programs and the timing of development activities, regulatory activities, approvals, and submissions related thereto, including the timing of the completion of the submission of the sBLA for, and launch and approval of, zanidatamab in 1L GEA; planned or anticipated clinical trial events, including with respect to initiations, enrollment and data read-outs, and the anticipated timing thereof; and the Company's development, regulatory and commercialization strategy; the Company's expectations with respect to its products and product candidates and the potential of the Company's products and product candidates and the potential regulatory path related thereto; including zanidatamab's potential to be the HER2-targeted agent of choice in HER2+ 1L GEA, regardless of PD-L1 status, and to reshape first-line treatment for HER2+ metastatic GEA patients; the Company's capital allocation and corporate development strategy; the potential successful future development, manufacturing, regulatory and commercialization activities; the Company's ability to realize the commercial potential of its products; the Company's net product sales and goals for net product sales from new and acquired products; the Company's views and expectations relating to its patent portfolio, including with respect to expected patent protection, as well as expectations with respect to exclusivity; the Company's clinical trials confirming clinical benefit or enabling regulatory submissions, including the potential of the ongoing Phase 3 ACTION trial to confirm clinical benefit of Modeyso in recurrent H3 K27M-mutant diffuse glioma and extend to use in first-line patients; and other statements that are not historical facts. These forward-looking statements are based on the Company's current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties.
Actual results and the timing of events could differ materially from those anticipated in such forward- looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: maintaining or increasing sales of, and revenue from, Xywav, Epidiolex/Epidyolex, Ziihera, Modeyso, Zepzelca and other lead marketed products; effectively launching and commercializing the Company's other products and product candidates; the successful completion of development and regulatory activities with respect to the Company's product candidates; obtaining and maintaining adequate coverage and reimbursement for the Company's products; the time-consuming and uncertain regulatory approval process, including the risk that the Company's current and/or planned regulatory submissions may not be submitted, accepted or approved by applicable regulatory authorities in a timely manner or at all, including the risk that the Company's sBLA submission for zanidatamab in 1L GEA may not be completed or, if completed, approved in a timely manner or at all; the costly and time-consuming pharmaceutical product development process and the uncertainty of clinical success, including risks related to failure or delays in successfully initiating or completing clinical trials and assessing patients; global economic, financial, and healthcare system disruptions and the current and potential future negative impacts to the Company's business operations and financial results; protecting and enhancing the Company's intellectual property rights and the Company's commercial success being dependent upon the Company obtaining, maintaining and defending intellectual property protection and exclusivity for its products and product candidates; delays or problems in the supply or manufacture of the Company's products and product candidates; complying with applicable U.S. and non-U.S. regulatory requirements, including those governing the research, development, manufacturing and distribution of controlled substances; government investigations, legal proceedings and other actions; identifying and consummating corporate development transactions, financing these transactions and successfully integrating acquired products, product candidates and businesses; the Company's ability to realize the anticipated benefits of its collaborations and license agreements with third parties; the sufficiency of the Company's cash flows and capital resources; the Company's ability to achieve targeted or expected future financial performance and results and the uncertainty of future tax, accounting and other provisions and estimates; the Company's ability to meet its projected long-term goals and objectives, in the time periods that the Company anticipates, or at all, and the inherent uncertainty and significant judgments and assumptions underlying the Company's long-term goals and objectives; fluctuations in the market price and trading volume of the Company's ordinary shares; and other risks and uncertainties affecting the Company, including those described from time to time under the caption "Risk Factors" and elsewhere in the Company's Securities and Exchange Commission filings and reports, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and future filings and reports by the Company. Other risks and uncertainties of which the Company is not currently aware may also affect the Company's forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated.
JAZZ PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Revenues:
Product sales, net
$ 1,132,448
$ 1,025,211
$ 4,021,849
$ 3,821,164
Royalties and contract revenues
65,478
62,962
245,737
247,786
Total revenues
1,197,926
1,088,173
4,267,586
4,068,950
Operating expenses:
Cost of product sales (excluding amortization of
acquired developed technologies)
153,528
128,713
503,296
445,713
Selling, general and administrative
406,212
369,287
1,809,271
1,385,294
Research and development
213,909
240,500
782,736
884,000
Intangible asset amortization
169,742
158,903
654,661
627,313
Acquired in-process research and development
—
—
947,862
10,000
Total operating expenses
943,391
897,403
4,697,826
3,352,320
Income (loss) from operations
254,535
190,770
(430,240)
716,630
Interest expense, net
(45,406)
(51,256)
(195,051)
(238,097)
Foreign exchange loss
(658)
(6,295)
(2,568)
(8,182)
Income (loss) before income tax expense (benefit) and
equity in loss of investees
208,471
133,219
(627,859)
470,351
Income tax expense (benefit)
4,963
(57,912)
(272,443)
(91,429)
Equity in loss of investees
57
16
732
1,660
Net income (loss)
$ 203,451
$ 191,115
$ (356,148)
$ 560,120
Net income (loss) per ordinary share:
Basic
$ 3.33
$ 3.16
$ (5.84)
$ 9.06
Diluted
$ 3.21
$ 3.11
$ (5.84)
$ 8.65
Weighted-average ordinary shares used in per share
calculations - basic
61,058
60,538
60,981
61,838
Weighted-average ordinary shares used in per share
calculations - diluted
63,433
61,503
60,981
66,007
JAZZ PHARMACEUTICALS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31,
2025
December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents
$ 1,391,899
$ 2,412,864
Investments
1,050,000
580,000
Accounts receivable, net of allowances
830,747
716,765
Inventories
416,962
480,445
Prepaid expenses
152,481
177,411
Other current assets
323,954
261,543
Total current assets
4,166,043
4,629,028
Property, plant and equipment, net
199,857
173,413
Operating lease assets
58,880
53,582
Intangible assets, net
4,429,510
4,755,695
Goodwill
1,829,340
1,716,323
Deferred tax assets, net
869,130
560,245
Deferred financing costs
7,550
9,489
Other non-current assets
99,030
114,482
Total assets
$ 11,659,340
$ 12,012,257
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 122,061
$ 77,869
Accrued liabilities
1,034,170
910,947
Current portion of long-term debt
1,029,903
31,000
Income taxes payable
56,387
18,757
Total current liabilities
2,242,521
1,038,573
Long-term debt, less current portion
4,328,354
6,077,640
Operating lease liabilities, less current portion
50,892
38,938
Deferred tax liabilities, net
594,470
676,736
Other non-current liabilities
124,519
86,614
Total shareholders' equity
4,318,584
4,093,756
Total liabilities and shareholders' equity
$ 11,659,340
$ 12,012,257
JAZZ PHARMACEUTICALS PLC
SUMMARY OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended
December 31,
2025
2024
Net cash provided by operating activities
$ 1,355,773
$ 1,395,908
Net cash used in investing activities
(1,509,913)
(508,195)
Net cash provided by (used in) financing activities
(873,380)
20,516
Effect of exchange rates on cash and cash equivalents
6,555
(1,675)
Net increase (decrease) in cash and cash equivalents
$ (1,020,965)
$ 906,554
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Net
Income
Diluted
Earnings
Per Share
(EPS)
Net
Income
Diluted
EPS
Net
Income
(Loss)
Diluted
EPS/(Loss)
Per Share
(LPS)
Net
Income
Diluted
EPS1
GAAP reported
$ 203,451
$ 3.21
$ 191,115
$ 3.11
$ (356,148)
$ (5.84)
$ 560,120
$ 8.65
Intangible asset
amortization
169,742
2.68
158,903
2.58
654,661
10.51
627,313
9.50
Share-based
compensation expense
70,854
1.12
70,190
1.14
291,133
4.67
248,045
3.76
Acquisition accounting
inventory fair value step-up
40,604
0.64
37,794
0.61
147,948
2.38
135,014
2.05
Integration related
expenses2
4,902
0.08
—
—
30,306
0.49
—
—
Income tax effect of
above adjustments
(68,665)
(1.09)
(57,477)
(0.93)
(245,976)
(3.95)
(218,522)
(3.31)
Effect of potentially
dilutive ordinary shares
on non-GAAP adjusted EPS
—
—
—
—
—
0.12
—
—
Non-GAAP adjusted
$ 420,888
$ 6.64
$ 400,525
$ 6.51
$ 521,924
$ 8.38
$ 1,351,970
$ 20.65
Weighted-average
ordinary shares used in
diluted per share
calculations - GAAP1
63,433
61,503
60,981
66,007
Dilutive effect of
employee equity
incentive and purchase
plans
—
—
1,304
—
Dilutive effect of the 2030
Notes
—
—
3
—
Weighted-average ordinary
shares used in diluted per
share calculations - non-GAAP1
63,433
61,503
62,288
66,007
________________________________________________
Explanation of Adjustments and Certain Line Items:
1.
Diluted EPS was calculated using the "if-converted" method in relation to the 2026 Notes. In July 2024, we made the irrevocable election to net share settle the 2026 Notes. As a result, the assumed issuance of ordinary shares upon exchange of the 2026 Notes has only been included in the calculation of diluted EPS, on a GAAP and non-GAAP adjusted basis, up to the date the irrevocable election was made. Net income per diluted share, on a GAAP and on a non-GAAP adjusted basis, for the year ended December 31, 2024, included 3.5 million shares related to the assumed conversion of the 2026 Notes and the associated interest expense, net of tax, add-back to GAAP reported net income and non-GAAP adjusted net income of $11 million.
2.
Integration related expenses with respect to the Chimerix acquisition.
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION - CERTAIN LINE ITEMS
(In thousands, except percentages)
(Unaudited)
Three months ended December 31, 2025
Cost of
product
sales
Gross
margin
SG&A
R&D
Intangible
asset
amortization
Interest
expense,
net
Income tax
expense
Effective
tax rate
GAAP Reported
$ 153,528
86.4 %
$ 406,212
$ 213,909
$ 169,742
$ 45,406
$ 4,963
2.4 %
Non-GAAP Adjustments:
Intangible asset amortization
—
—
—
—
(169,742)
—
—
—
Share-based compensation expense
(5,068)
0.5
(42,654)
(23,132)
—
—
—
—
Acquisition accounting inventory fair
value step-up
(40,604)
3.7
—
—
—
—
—
—
Integration related expenses
(1,015)
—
(3,025)
(862)
—
—
—
—
Income tax effect of above adjustments
—
—
—
—
—
—
68,665
12.5
Total of non-GAAP adjustments
(46,687)
4.2
(45,679)
(23,994)
(169,742)
—
68,665
12.5
Non-GAAP Adjusted
$ 106,841
90.6 %
$ 360,533
$ 189,915
$ —
$ 45,406
$ 73,628
14.9 %
Three months ended December 31, 2024
Cost of
product
sales
Gross
margin
SG&A
R&D
Intangible
asset
amortization
Interest
expense,
net
Income tax
benefit
Effective
tax rate
GAAP Reported
$ 128,713
87.4 %
$ 369,287
$ 240,500
$ 158,903
$ 51,256
$ (57,912)
(43.5) %
Non-GAAP Adjustments:
Intangible asset amortization
—
—
—
—
(158,903)
—
—
—
Share-based compensation expense
(4,427)
0.5
(46,120)
(19,643)
—
—
—
—
Acquisition accounting inventory fair
value step-up
(37,794)
3.7
—
—
—
—
—
—
Income tax effect of above adjustments
—
—
—
—
—
—
57,477
43.4
Total of non-GAAP adjustments
(42,221)
4.2
(46,120)
(19,643)
(158,903)
—
57,477
43.4
Non-GAAP Adjusted
$ 86,492
91.6 %
$ 323,167
$ 220,857
$ —
$ 51,256
$ (435)
(0.1) %
JAZZ PHARMACEUTICALS PLC
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION - CERTAIN LINE ITEMS
(In thousands, except percentages)
(Unaudited)
Year ended December 31, 2025
Cost of
product
sales
Gross
margin
SG&A
R&D
Intangible
asset
amortization
Acquired
IPR&D
Interest
expense,
net
Income tax
benefit
Effective
tax rate
GAAP Reported
$ 503,296
87.5 %
$ 1,809,271
$ 782,736
$ 654,661
$ 947,862
$ 195,051
$ (272,443)
43.4 %
Non-GAAP Adjustments:
Intangible asset amortization
—
—
—
—
(654,661)
—
—
—
—
Share-based compensation expense
(18,031)
0.5
(186,622)
(86,480)
—
—
—
—
—
Integration related expenses
(1,301)
—
(19,394)
(9,611)
—
—
—
—
—
Acquisition accounting inventory fair
value step-up
(147,948)
3.6
—
—
—
—
—
—
—
Income tax effect of above adjustments
—
—
—
—
—
—
—
245,976
(48.7)
Total of non-GAAP adjustments
(167,280)
4.1
(206,016)
(96,091)
(654,661)
—
—
245,976
(48.7)
Non-GAAP Adjusted
$ 336,016
91.6 %
$ 1,603,255
$ 686,645
$ —
$ 947,862
$ 195,051
$ (26,467)
(5.3) %
Year ended December 31, 2024
Cost of
product
sales
Gross
margin
SG&A
R&D
Intangible
asset
amortization
Acquired
IPR&D
Interest
expense,
net
Income tax
expense
(benefit)
Effective
tax rate
GAAP Reported
$ 445,713
88.3 %
$ 1,385,294
$ 884,000
$ 627,313
$ 10,000
$ 238,097
$ (91,429)
(19.4) %
Non-GAAP Adjustments:
Intangible asset amortization
—
—
—
—
(627,313)
—
—
—
—
Share-based compensation expense
(14,802)
0.5
(158,570)
(74,673)
—
—
—
—
—
Acquisition accounting inventory fair
value step-up
(135,014)
3.5
—
—
—
—
—
—
—
Income tax effect of above adjustments
—
—
—
—
—
—
—
218,522
28.0
Total of non-GAAP adjustments
(149,816)
4.0
(158,570)
(74,673)
(627,313)
—
—
218,522
28.0
Non-GAAP Adjusted
$ 295,897
92.3 %
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