HALOZYME THERAPEUTICS, INC.HALO

HALOZYME THERAPEUTICS, INC. Revenue Disclosure

10-KFiled Feb 17, 20262 min read
Revenue
Our disaggregated revenues were as follows (in thousands):
Year Ended December 31,
202520242023
Royalties$867,840 $570,991 $447,865 
Product sales, net
Proprietary product sales
194,608 166,620 130,834 
Bulk rHuPH20 sales
133,023 86,334 115,442 
Device partnered product sales
48,813 50,538 54,578 
Total product sales, net376,444 303,492 300,854 
Revenues under collaborative agreements
Upfront license and target nomination fees
18,471 27,000 2,000 
Event-based development and regulatory milestones and other fees
47,000 72,500 69,000 
Sales-based milestones
70,000 30,000 — 
Device licensing and development revenue
16,856 11,341 9,534 
Total revenues under collaborative agreements152,327 140,841 80,534 
Total revenues
$1,396,611 $1,015,324 $829,253 
During the year ended December 31, 2025, we recognized revenue related to licenses granted to partners in prior periods in the amount of $984.8 million. This amount represents royalties and sales milestone earned in the current period, in addition to $47.0 million of variable consideration in the contracts where uncertainties were resolved and the development milestones are expected to be achieved or were achieved. We also recognized revenue of $2.0 million during the year ended December 31, 2025 that had been included in accrued expenses and other long-term liabilities in our consolidated balance sheets as of December 31, 2024.
Accounts receivable, net, other contract assets and deferred revenues (contract liabilities) from contracts with customers, including partners, consisted of the following (in thousands):
December 31, 2025December 31, 2024
Accounts receivable, net$426,273 $288,204 
Other contract assets15,000 20,251 
Deferred revenues35,482 10,343 
As of December 31, 2025, the amounts included in the transaction price of our contracts with customers, including collaboration partners, and allocated to goods and services not yet provided were $325.0 million, of which $289.5 million relates to unfulfilled product purchase orders and $35.5 million has been collected and is reported as other long-term liabilities in our consolidated balance sheets. The unfulfilled product purchase orders are estimated to be delivered by the end of 2027. Of the total deferred revenues of $35.5 million, $6.8 million is expected to be used by our customers within the next 12 months.
We recognized contract assets of $15.0 million as of December 31, 2025, which related to development milestones deemed probable of receipt for intellectual property licenses granted to partners in prior periods and for goods or services when control has transferred to the customer, and corresponding revenue is recognized but is not yet billable to the customer in accordance with the terms of the contract.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 22, 2022
2020Feb 23, 2021
2019Feb 24, 2020
2018Feb 21, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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