Exelixis, Inc. (Nasdaq: EXEL) has announced its financial results for the third quarter of 2025, revealing a strong performance driven by its cabozantinib franchise and significant advancements in its research and development initiatives. The company reported total revenues of $597.8 million, a notable increase from $539.5 million in the same period last year. This growth underscores Exelixis' commitment to delivering innovative cancer therapies and enhancing patient care.

2. Key Highlights from the Quarter

Revenue Breakdown

Net Product Revenues: The company achieved net product revenues of $542.9 million, compared to $478.1 million in Q3 2024. This increase was largely attributed to a rise in sales volume, particularly in the renal cell carcinoma and neuroendocrine tumor markets, where CABOMETYX® has solidified its position as the leading oral therapy for new patient market share in second-line and later treatment settings.

Collaboration Revenues: Collaboration revenues amounted to $54.8 million, down from $61.5 million in the previous year. This decline was primarily due to lower milestone-related revenues and development cost reimbursements, although it was partially offset by higher royalty revenues from cabozantinib sales outside the U.S. through Exelixis’ collaboration with Ipsen Pharma SAS.

Expense Analysis

Research and Development Expenses: The company reported R&D expenses of $199.2 million, down from $222.6 million in Q3 2024. This decrease reflects lower clinical trial costs and reduced collaboration expenses, indicating a more efficient allocation of resources toward promising projects.

Selling, General, and Administrative Expenses: These expenses rose to $123.7 million from $111.8 million in the prior year, driven by increased stock-based compensation and external consulting services.

Income and Taxation

GAAP Net Income: Exelixis reported a GAAP net income of $193.6 million, or $0.72 per share (basic) and $0.69 (diluted), a substantial increase from $118.0 million (or $0.41 per share, basic and $0.40 diluted) in Q3 2024. This robust performance was aided by a decrease in the weighted-average common shares outstanding due to stock repurchase programs.

Non-GAAP Net Income: The company’s non-GAAP net income was $217.9 million, or $0.81 per share (basic) and $0.78 (diluted), compared to $135.7 million (or $0.47 per share, basic and diluted) in the year-ago quarter.

3. Corporate Developments and Future Outlook

Strategic Initiatives

Michael M. Morrissey, Ph.D., President and CEO of Exelixis, emphasized the company's focus on its cabozantinib franchise and ongoing clinical trials. Notably, the presentation of positive results from the STELLAR-303 pivotal trial for zanzalintinib in combination with atezolizumab in advanced colorectal cancer at the 2025 European Society for Medical Oncology Congress marks a significant milestone. The results have prompted Exelixis to prepare for the submission of its first new drug application for zanzalintinib in the U.S. by the end of the year.

Workforce Reorganization

In a move to enhance operational efficiency, Exelixis implemented a corporate reorganization plan in August 2025, which resulted in restructuring expenses of $19.8 million during the quarter. This plan, aimed at optimizing workforce allocation and closing its King of Prussia, Pennsylvania office, is expected to be substantially completed by the end of fiscal 2025.

4. Conclusion

Exelixis’ third quarter results for 2025 reflect a robust financial performance and strategic focus on innovation in cancer treatment. With a strong revenue growth trajectory and positive outlook for its drug pipeline, the company is well-positioned to continue its mission of improving cancer care standards. The upcoming drug application submission for zanzalintinib could further enhance its portfolio and market presence in the oncology sector.

Original press release