Vertex Pharmaceuticals (VRTX) Q3 2025 Financial Results Summary
Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) announced its consolidated financial results for the third quarter ended September 30, 2025, on October 29, 2025.
Key Financial Highlights:
- Total Revenue:
- $3.08 billion, an 11% increase compared to Q3 2024.
- U.S. revenue increased by 15% to $1.98 billion, driven by strong demand for cystic fibrosis (CF) therapies, including ALYFTREK, CASGEVY, and JOURNAVX, along with favorable net pricing.
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International revenue increased by 4% to $1.10 billion.
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Research & Development (R&D) and Operating Expenses:
- Combined GAAP and non-GAAP R&D, Acquired IPR&D, and SG&A expenses totaled $1.5 billion ($1.3 billion non-GAAP), up from $1.3 billion ($1.1 billion non-GAAP) in Q3 2024.
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The increase was attributed to heightened R&D investments to support multiple clinical programs and commercial investments for JOURNAVX.
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Effective Tax Rates:
- GAAP effective tax rate: 16.6%, compared to 14.6% in Q3 2024.
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Non-GAAP effective tax rate: 17.6%, compared to 19.8% in Q3 2024.
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Net Income:
- GAAP net income was $1.1 billion, a 5% increase from $1.0 billion in Q3 2024.
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Non-GAAP net income was $1.2 billion, compared to $1.1 billion in Q3 2024.
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Cash and Marketable Securities:
- As of September 30, 2025, total cash, cash equivalents, and marketable securities stood at $12.0 billion, up from $11.2 billion as of December 31, 2024.
Share Repurchase and Dividend:
- Vertex repurchased shares as part of its share repurchase program, contributing to the increase in cash outflows.
- No quarterly dividend was declared for this period.
Full Year 2025 Financial Guidance:
- Total Revenue: Updated guidance of $11.9 to $12.0 billion, reflecting continued growth in CF therapies and initial contributions from JOURNAVX.
- GAAP Operating Expenses: Revision set to approximately $5.65 to $5.8 billion.
- Non-GAAP Operating Expenses: Expected to be between $5.0 to $5.1 billion.
- Effective Tax Rate: Revised non-GAAP effective tax rate guidance lowered to 17% to 18% from 20.5% to 21.5%.
Business Progress Highlights:
- Cystic Fibrosis Portfolio:
- ALYFTREK: Strong U.S. launch; approved in the EU, UK, Canada, and beyond for patients 6 years and older.
- Continued global growth anticipated based on new approvals and reimbursement arrangements.
- CASGEVY: Progressing as a treatment for sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). Reimbursement agreements established, particularly in Italy.
- JOURNAVX: Over 300,000 prescriptions written since launch; access expanded to 170 million individuals across commercial and government payers in the U.S.
Pipeline Developments:
- Continued progress in late-stage clinical trials for various programs, including:
- Povetacicept: Phase 3 trial for IgAN completed enrollment; expected BLA submission to the FDA by the end of 2025.
- TRIKAFTA: Completed pivotal study for children aged 12 months to < 24 months; submission to global regulators expected in H1 2026.
Vertex continues to focus on expanding its therapeutic portfolios and advancing its commitment to innovative treatments in serious diseases. The comprehensive financial overview and strategic direction provided underscore the company’s robust position within the biotechnology field.
| Revenues: | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|
| September 30, 2025 | 2024 | September 30, 2025 | 2024 | |
| Product revenues, net | $3,076.4 | $2,771.9 | $8,780.6 | $8,108.1 |
| Other revenues | $— | $30.7 | $— | |
| Total revenues | $3,076.4 | $2,771.9 | $8,811.3 | $8,108.1 |
| Costs and expenses: | ||||
| Cost of sales | $414.8 | $392.6 | $1,185.3 | $1,107.1 |
| Research and development expenses | $977.7 | $875.9 | $2,935.8 | $2,631.6 |
| Acquired in-process research and development expenses | $54.5 | $15.0 | $76.5 | $4,540.9 |
| Selling, general and administrative expenses | $445.1 | $371.8 | $1,266.1 | $1,086.7 |
| Intangible asset impairment charge | $— | $— | $379.0 | $— |
| Change in fair value of contingent consideration | -$1.9 | $0.3 | $1.2 | $0.7 |
| Total costs and expenses | $1,890.2 | $1,655.6 | $5,843.9 | $9,367.0 |
| Income (loss) from operations | $1,186.2 | $1,116.3 | $2,967.4 | -$1,258.9 |
| Interest income | $125.7 | $132.2 | $369.0 | $469.9 |
| Interest expense | -$3.3 | -$7.5 | -$10.0 | -$27.8 |
| Other expense, net | -$9.8 | -$16.9 | -$14.2 | -$71.2 |
| Income (loss) before provision for income taxes | $1,298.8 | $1,224.1 | $3,312.2 | -$888.0 |
| Provision for income taxes | $215.9 | $178.7 | $550.1 | $560.6 |
| Net income (loss) | $1,082.9 | $1,045.4 | $2,762.1 | -$1,448.6 |
| Net income (loss) per common share: | ||||
| Basic | $4.24 | $4.05 | $10.77 | -$5.61 |
| Diluted | $4.20 | $4.01 | $10.68 | -$5.61 |
| Shares used in per share calculations: | ||||
| Basic | 255.6 | 258.0 | 256.4 | 258.1 |
| Diluted | 257.6 | 261.0 | 258.6 | 258.1 |
| Assets | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Cash, cash equivalents and marketable securities | $6,287.0 | $6,115.9 |
| Accounts receivable, net | $1,946.4 | $1,609.4 |
| Inventories | $1,626.8 | $1,205.4 |
| Prepaid expenses and other current assets | $709.4 | $665.7 |
| Total current assets | $10,569.6 | $9,596.4 |
| Property and equipment, net | $1,425.1 | $1,227.8 |
| Goodwill and other intangible assets, net | $1,517.8 | $1,913.9 |
| Deferred tax assets | $2,937.2 | $2,331.1 |
| Operating lease assets | $1,591.8 | $1,356.8 |
| Long-term marketable securities | $5,722.8 | $5,107.9 |
| Other long-term assets | $1,098.0 | $999.3 |
| Total assets | $24,862.3 | $22,533.2 |
| Liabilities and Shareholders’ Equity | ||
| Accounts payable and accrued expenses | $4,033.8 | $3,201.6 |
| Other current liabilities | $441.5 | $363.0 |
| Total current liabilities | $4,475.3 | $3,564.6 |
| Long-term operating lease liabilities | $1,834.8 | $1,544.4 |
| Other long-term liabilities | $1,233.4 | $1,014.6 |
| Shareholders’ equity | $17,318.8 | $16,409.6 |
| Total liabilities and shareholders’ equity | $24,862.3 | $22,533.2 |
| Common shares outstanding | 254.0 | 256.9 |
