Harmony Biosciences Holdings (NASDAQ:HRMY) reported its fourth-quarter and full-year 2025 financial results, delivering revenue growth that met expectations but earnings that fell short of analyst forecasts. The company’s flagship product, WAKIX, continues to drive the top line, though increased investment in its pipeline weighed on quarterly profitability.
Earnings and Revenue Versus Estimates
For the fourth quarter of 2025, Harmony reported net product revenue of $243.8 million, representing a 21% increase year-over-year. This figure came in just shy of the analyst consensus estimate of approximately $245.2 million. The company’s full-year 2025 revenue reached $868.5 million, marking six consecutive years of revenue growth and profitability.
On the bottom line, the results showed a more pronounced divergence from expectations. The company reported GAAP net income of $22.5 million, or $0.38 per diluted share, for Q4 2025. On a non-GAAP adjusted basis, which excludes items like stock-based compensation and amortization, earnings per share were $0.57. Both figures fell below the analyst estimate for non-GAAP EPS of $0.91. The earnings miss was primarily driven by a significant increase in operating expenses as the company ramps up investment in its clinical programs.
Key financial comparisons for Q4 2025 are as follows:
- Reported Revenue: $243.8 million
- Estimated Revenue: ~$245.2 million
- Reported GAAP EPS: $0.38
- Reported Non-GAAP EPS: $0.57
- Estimated Non-GAAP EPS: $0.91
Market Reaction and Price Action
The market’s initial reaction to the mixed report has been negative. In pre-market trading, Harmony’s stock is indicating a decline. This price action suggests investor focus has settled on the earnings miss and the substantial rise in expenses, which overshadowed the steady revenue performance. The stock had also seen negative pressure in the weeks leading up to the report, declining over the past month.
Outlook and Analyst Expectations
Management reiterated its 2026 net revenue guidance for WAKIX, projecting sales between $1.0 billion and $1.04 billion. This outlook aligns closely with the current analyst consensus estimate for 2026 sales of approximately $1.03 billion, reinforcing confidence in the continued commercial trajectory of its core product.
Looking ahead to the next quarter, analysts are currently modeling for Q1 2026 revenue of about $226.8 million and non-GAAP EPS of $0.91. Harmony’s ability to manage its expense growth while hitting these revenue targets will be a key focus for investors moving forward.
Press Release Highlights
Beyond the financials, the earnings report emphasized the strength and expansion of Harmony’s pitolisant franchise and its broader pipeline. Key announcements included:
- Commercial Momentum: WAKIX is on track to achieve blockbuster status (over $1 billion in revenue) in 2026. The product recently gained FDA approval for pediatric cataplexy, triggering immediate promotional efforts.
- Pipeline Advancement: The company highlighted five ongoing Phase 3 trials across central nervous system (CNS) indications. Notable updates include an NDA submission planned for a gastro-resistant formulation (pitolisant GR) in Q2 2026 and Phase 3 data readouts for pitolisant in Prader-Willi syndrome expected in the second half of 2026.
- Patent and Exclusivity: Harmony has reached settlements with most generic filers, with the earliest potential generic launch not expected before March 2030, assuming pediatric exclusivity is granted.
- Financial Position: The company ended 2025 with a strong cash position of $882.5 million, providing ample resources to fund its late-stage development programs.
For a detailed look at upcoming earnings dates and a complete history of analyst estimates, you can review Harmony Biosciences' earnings and estimates page here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investing carries risks, including the potential loss of principal.
