X4 Pharmaceuticals, IncXFOR
X4 Pharmaceuticals, Inc Revenue Disclosure
Revenue
Product Revenue, Net
During the years ended December 31, 2025 and 2024, the Company recorded net revenue $6.5 million and $2.6 million, respectively, for the sale of its drug product in the U.S. There were no sales of drug product for the year ended December 31, 2023.
The following table summarizes the balances and activity in each of the product reserve accounts for the years ended December 31, 2025 and 2024.
| (in thousands) | Rebates and Discounts | Co-Pay Assistance | Product Returns | Total | |||||||||||||||||||
| Balance at December 31, 2023 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Provision related to revenue associated with sales processed during the year ended December 31, 2024 | 185 | 63 | 11 | 259 | |||||||||||||||||||
| Credits and payments made during the period | (86) | (34) | — | (120) | |||||||||||||||||||
| Balance at December 31, 2024 | 99 | 29 | 11 | 139 | |||||||||||||||||||
| Provision related to revenue associated with sales processed during the year ended December 31, 2025 | 653 | 100 | 40 | 793 | |||||||||||||||||||
| Adjustments related to revenue associated with sales recognized during prior periods | (16) | 10 | (41) | (47) | |||||||||||||||||||
| Credits and payments made during the period | (318) | (109) | — | (427) | |||||||||||||||||||
| Balance as of December 31, 2025 | $ | 418 | $ | 30 | $ | 10 | $ | 458 | |||||||||||||||
The provision for contractual discounts provided to the Company’s customer is recorded as a reduction of accounts receivable. The provisions for co-pay assistance payments, contractual rebates and product returns are classified within accrued expenses.
The following table provides a rollforward of accounts receivable for the years ended December 31, 2025 and 2024.
| (in thousands) | Accounts Receivable | ||||
| Beginning balance at December 31, 2023 | $ | — | |||
| Increase in accounts receivable for drug product sales | 2,735 | ||||
| Decrease in accounts receivable for cash collections | (1,665) | ||||
| Beginning balance at December 31, 2024 | 1,070 | ||||
| Increase in accounts receivable for drug product sales | 7,062 | ||||
| Decrease in accounts receivable for cash collections | (7,559) | ||||
| Balance as of December 31, 2025 | $ | 573 | |||
License and Other
During the first quarter of 2025, the Company entered into the Norgine Agreement. The Company analyzed the activities required under the Norgine Agreement and concluded that the arrangement was indicative of a vendor-customer relationship and would be accounted for under ASC 606. During the year ended December 31, 2025, the Company received a one-time, non-refundable, up-front payment of €28.5 million and a regulatory milestone payment of €0.5 million, which are included the transaction price. All other future regulatory-based milestone payments, which represent variable consideration, have been fully constrained as these are not yet considered probable. The Company has also excluded from the transaction price future royalty payments that are based on units sold by Norgine and future cumulative revenue-based milestone payments under the applicable practical expedient.
Under the Norgine Agreement, the Company’s promises include a) the delivery of a license, b) research and development services for certain components of WHIM clinical studies, c) research and development services for the global Phase 3 trial of mavorixafor for CN, and d) the option for delivery of commercial drug supply pursuant to a manufacturing agreement. The Company assessed the above promises and determined that the option for delivery of commercial drug supply is priced at fair value, and therefore is not a material right or a performance obligation. Revenue from the delivery of manufacturing supply will
be recorded when delivered at the pricing agreed to in the contract. The license was considered functional intellectual property as of the inception of the Norgine Agreement and distinct from other promises under the contract, as Norgine can benefit from the license on its own or together with other readily available resources. Each of the research and development services were considered distinct as the customer can benefit from these services together with the license transferred at the inception of the agreement. The research and development services will not modify or customize the initial intellectual property transferred at contract inception due to the late stage of development of the intellectual property. As a result, the Company identified three performance obligations: (a) the delivery of the license, (b) research and development services for certain components of WHIM clinical studies, and (c) research and development services for the global Phase 3 trial of mavorixafor for CN.
The Company allocated the transaction price of $29.7 million among these three performance obligations based on the Company’s best estimate of stand-alone selling price for each distinct performance obligation. The Company developed the estimated standalone selling price, at inception, for each of the three performance obligations with the objective of determining the price at which the Company would sell such an item if it were to be sold regularly on a standalone basis. The Company developed the estimated standalone selling price for the license primarily based on the probability-weighted present value of expected future cash flows. In developing such estimates, the Company applied judgment in determining the forecasted revenues, taking into consideration the applicable market conditions and relevant entity-specific factors, the probability of success, the time needed to develop mavorixafor and the discount rate. The Company developed the estimated standalone selling price for the research and development services based on the amount a third party would pay for these services, which contemplates the level of efforts necessary to perform these services and the costs for full-time equivalent employees and expected resources to be committed plus a reasonable margin.
During the year ended December 31, 2025, the Company recognized $27.6 million for the delivery of the license and $1.0 million for research and development services. The license performance obligation was satisfied at a point in time upon transfer of the license to Norgine. Control of the license was transferred on the effective date of the Norgine Agreement as Norgine could begin to use and benefit from the license. For the research and development performance obligations, the Company over time using an input method based on cost incurred during the period relative to the total estimated cost of the obligation. This method, in management’s judgment, is the best measure of progress towards satisfying the performance obligation as the transfer of control occurs as services are performed. The amounts received that have not yet been recognized as revenue are recorded as deferred revenue on the consolidated balance sheet and will be recognized over the remaining period as the performance obligation is satisfied.
The following table summarizes the allocation of transaction price to the three performance obligations in the Norgine Agreement based on the weighting of estimated stand-alone selling price for these performance obligations at the inception of the agreement.
| Allocation of Transaction Price | Revenue Recognized | |||||||||||||||||||||||||
| (in thousands) | Year Ended December 31, | |||||||||||||||||||||||||
| Performance Obligation: | 2025 | 2024 | 2023 | |||||||||||||||||||||||
| License | $ | 27,639 | $ | 27,639 | $ | — | $ | — | ||||||||||||||||||
| Research and development services: WHIM | 312 | 25 | — | — | ||||||||||||||||||||||
| Research and development services: CN | 1,724 | 926 | — | — | ||||||||||||||||||||||
| Total | $ | 29,675 | $ | 28,590 | $ | — | $ | — | ||||||||||||||||||
As of December 31, 2025, deferred revenue related to the Norgine Agreement was $1.1 million, of which $0.5 million was current.
During the year ended December 31, 2025, the Company capitalized $4.0 million of incremental costs to obtain a contract with a customer and amortized $3.3 million of these costs through general and administrative expense for the year ended December 31, 2025. No such costs were capitalized or amortized during the years ended December 31, 2024 and 2023. As of December 31, 2025, unamortized capitalized costs to obtain a contract with a customer on the consolidated balance sheet were $0.7 million, of which $0.2 million were classified in other current assets and $0.5 million were classified in other assets.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 17, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2018 | Mar 11, 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.