Incyte Reports Fourth Quarter and Full Year 2025 Financial Results

WILMINGTON, Del.--( BUSINESS WIRE)--Incyte (Nasdaq:INCY) today announced financial results for the fourth quarter and full year ended December 31, 2025 and provided full year 2026 financial guidance.

“Our fourth quarter and full year 2025 results reflect exceptional core business growth and pipeline progress,” said Bill Meury, President and Chief Executive Officer, Incyte.

“Our fourth quarter and full year 2025 results reflect exceptional core business growth and pipeline progress,” said Bill Meury, President and Chief Executive Officer, Incyte. “During the year, we achieved multiple regulatory approvals and several important clinical milestones, allowing us to advance multiple assets from early- to late-stage development. By the end of the year, we expect to have fourteen pivotal clinical trials underway. Incyte enters 2026 with strong business momentum, an innovative, strategically focused pipeline, and a clear strategy for capital allocation and long-term growth."

Fourth Quarter 2025 Results

Full Year 2025 Results

2026 Financial Guidance

Incyte's guidance for the fiscal year 2026 is summarized below. Total net product revenue guidance of $4,770 to $4,940 million comprises: Jakafi net product revenue of $3,220 to $3,270 million and includes the initial launch of Jakafi XR, if approved; Opzelura net product revenue of $750 to $790 million and includes the anticipated ex-U.S. launch of Opzelura in moderate AD in late-2026; and Hematology and Oncology net product revenue of $800 to $880 million. Total GAAP R&D and SG&A operating expense guidance of $3,495 to $3,675 million includes continued investment in our mid- and late-stage pipeline and the costs associated with our upcoming potential launches.

Current

Total net product revenue

$4,770 - $4,940 million

Jakafi net product revenue

$3,220 - $3,270 million

Opzelura net product revenue

$750 - $790 million

Hematology and Oncology net product revenue (1)

$800 - $880 million

Total GAAP R&D and SG&A operating expenses

$3,495 - $3,675 million

Total non-GAAP R&D and SG&A operating expenses (2)

$3,205 - $3,375 million

1Pemazyre ® (pemigatinib) in the U.S., Canada, Europe, Japan, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America (LatAm); Niktimvo and Monjuvi in the U.S.; Zynyz in the U.S., Europe and Japan; Iclusig ® (ponatinib) in Europe and MEA; and Minjuvi ® (tafasitamab) in Canada, Europe, Japan, APAC, MEA and LatAm.

2Adjusted to exclude the estimated cost of stock-based compensation.

Key Business Updates

Hematology

Monjuvi/Minjuvi (tafasitamab)

Jakafi XR

INCA033989 (mutCALR)

INCB160058 (JAK2V617Fi)

Oncology

Zynyz

INCA33890 (TGFβR2xPD-1)

INCB123667 (CDK2i)

INCB161734 (KRAS G12D)

Inflammation and Autoimmunity (IAI)

Opzelura (ruxolitinib) cream

Povorcitinib

Corporate and Business Development Updates

Fourth Quarter and Full Year 2025 Financial Results

The financial measures presented in this press release for the quarter and year ended December 31, 2025 and 2024 have been prepared by the Company in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), unless otherwise identified as a Non-GAAP financial measure. Management believes that Non-GAAP information is useful for investors, when considered in conjunction with Incyte’s GAAP disclosures. Management uses such information internally and externally for establishing budgets, operating goals and financial planning purposes. These metrics are also used to manage the Company’s business and monitor performance. The Company adjusts, where appropriate, for expenses in order to reflect the Company’s core operations. The Company believes these adjustments are useful to investors by providing an enhanced understanding of the financial performance of the Company’s core operations. The metrics have been adopted to align the Company with disclosures provided by industry peers.

Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used in conjunction with and to supplement Incyte’s operating results as reported under GAAP. Non-GAAP measures may be defined and calculated differently by other companies in our industry.

As changes in exchange rates are an important factor in understanding period-to-period comparisons, Management believes the presentation of certain revenue results on a constant currency basis in addition to reported results helps improve investors’ ability to understand its operating results and evaluate its performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant period over period. The Company calculates constant currency by calculating current year results using prior year foreign currency exchange rates and generally refers to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange or being on a constant currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant currency basis, as the Company presents them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.

Financial Highlights

(unaudited, in thousands, except per share amounts)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Total GAAP revenues

1,506,835

1,178,698

5,141,242

4,241,217

Total GAAP operating income

335,859

301,513

1,514,859

61,366

Total Non-GAAP operating income

451,417

376,265

1,615,933

413,883

GAAP net income

299,279

201,212

1,286,650

32,615

Non-GAAP net income

367,955

281,353

1,365,313

227,591

GAAP basic EPS

1.52

1.04

6.59

0.16

Non-GAAP basic EPS

1.86

1.46

6.99

1.10

GAAP diluted EPS

1.46

1.02

6.41

0.15

Non-GAAP diluted EPS

1.80

1.43

6.80

1.08

Revenue Details

(unaudited, in thousands)

Three Months Ended

December 31,

Change

(as

reported)

Change

(constant

currency) 1

Twelve Months Ended

December 31,

Change

(as

reported)

Change

(constant

currency) 1

2025

2024

2025

2024

Net product revenues:

Jakafi

828,244

773,114

3,092,515

2,792,107

11%

Opzelura

207,283

161,602

28%

27%

678,455

508,293

33%

32%

Iclusig

34,216

27,369

25%

15%

134,071

114,319

17%

12%

Pemazyre

23,354

23,142

(1%)

86,727

81,748

Minjuvi/ Monjuvi

41,906

32,807

28%

26%

144,578

119,236

21%

20%

Niktimvo

56,039

—

151,636

—

Zynyz

31,747

1,373

66,351

3,185

Total net product revenues

1,222,789

1,019,407

20%

19%

4,354,333

3,618,888

20%

Royalty revenues:

Jakavi

130,225

114,187

14%

457,729

418,840

Olumiant

43,207

38,485

12%

144,600

135,572

Tabrecta

7,144

6,286

14%

26,702

22,746

17%

Other

3,470

333

942%

7,878

2,171

263%

Total royalty revenues

184,046

159,291

16%

636,909

579,329

10%

Total net product and royalty revenues

1,406,835

1,178,698

19%

4,991,242

4,198,217

19%

Milestone and contract revenues

100,000

—

150,000

43,000

249%

Total GAAP revenues

1,506,835

1,178,698

28%

5,141,242

4,241,217

21%

NM = not meaningful

NA = not applicable

1.Percentage change in constant currency is calculated using 2024 foreign exchange rates to recalculate 2025 results.

Product and Royalty Revenue Total net product revenue for the quarter and year ended December 31, 2025 increased 20% over the prior year comparative periods, primarily driven by the following:

Operating Expenses

Operating Expense Summary

(unaudited, in thousands)

Three Months Ended

December 31,

Change

Twelve Months Ended

December 31,

Change

2025

2024

2025

2024

GAAP cost of product revenues

121,175

88,485

37%

372,130

312,068

19%

Non-GAAP cost of product revenues 1

114,907

82,427

39%

347,090

288,266

20%

GAAP Contract dispute settlement

—

(242,251

)

—

Non-GAAP contract dispute settlement 2

—

GAAP research and development

611,372

466,034

31%

2,050,152

2,606,848

(21%)

Non-GAAP research and development 3

575,249

420,297

37%

1,897,854

2,423,167

(22%)

GAAP selling, general and administrative

390,412

326,710

19%

1,376,206

1,242,157

11%

Non-GAAP selling, general and administrative 4

365,262

299,709

22%

1,280,365

1,116,926

15%

GAAP Asset impairment

76,275

—

76,275

—

Non-GAAP asset impairment 5

—

GAAP (gain) loss on change in fair value of acquisition-related contingent consideration

(28,258

)

(4,044

)

599%

(6,129

)

19,803

(131%)

Non-GAAP (gain) loss on change in fair value of acquisition-related contingent consideration

—

GAAP (profit) and loss sharing under collaboration agreements

—

(1,025

)

NM = not meaningful

1 Non-GAAP cost of product revenues excludes the amortization of licensed intellectual property for Iclusig relating to the acquisition of the European business of ARIAD Pharmaceuticals, Inc. and the cost of stock-based compensation.

2 Non-GAAP contract dispute settlement excludes the contract dispute settlement reached with Novartis.

3 Non-GAAP research and development expenses exclude the cost of stock-based compensation, MorphoSys transition costs, and Escient acquisition related compensation expense related to cash settled unvested Escient equity awards and severance payments.

4 Non-GAAP selling, general and administrative expenses exclude the cost of stock-based compensation, MorphoSys transition costs, Escient acquisition related compensation expense related to cash settled unvested Escient equity awards and severance payments.

5 Non-GAAP asset impairment excludes the impairment relating to our downtown Wilmington, Delaware properties.

Cost of product revenues GAAP and Non-GAAP cost of product revenues for the quarter and year ended December 31, 2025 increased 37% and 39%, and 19% and 20%, respectively, compared to the same periods in 2024 primarily driven by growth in net product revenue, the Niktimvo profit share and increased manufacturing related costs, partially offset by the impact from the reduced royalty rate agreed to as part of the contract dispute settlement with Novartis.

Research and development expenses GAAP and Non-GAAP research and development expense for the quarter ended December 31, 2025 increased 31% and 37%, respectively, compared to the same period in 2024, primarily driven by continued investment in our late-stage development assets. GAAP and Non-GAAP research and development expense for the year ended December 31, 2025 decreased 21% and 22%, respectively, compared to the same period in 2024, primarily due to the Escient acquisition upfront consideration and related compensation expense and severance payments made in 2024. For the year ended December 31, 2025, excluding the Escient acquisition upfront payment, related compensation expense and severance payments and other milestone payments, research and development expense increased 8% compared to the same period in 2024 as a result of continued investment in our late-stage development assets.

Selling, general and administrative expenses GAAP and Non-GAAP selling, general and administrative expenses for the quarter ended December 31, 2025 increased 19% and 22%, respectively, compared to the same period in 2024, primarily due to costs associated with the US oncology product launches in 2025 and timing of certain other expenses. GAAP and Non-GAAP selling, general and administrative expenses for the year ended December 31, 2025 increased 11% and 15%, respectively, compared to the same period in 2024, primarily due to costs associated with the US oncology product launches in 2025 and timing of certain other expenses.

Other Financial Information

Contract dispute settlement In May 2025, Incyte and Novartis entered into a settlement agreement with respect to litigation relating to the duration of royalty payments owed under the Collaboration and License Agreement between Incyte and Novartis. We recorded $242.2 million in contract dispute settlement on the condensed consolidated statement of operations for the year ended December 31, 2025, representing the difference between the accrued royalties and the total amount paid by us to Novartis.

Asset impairment In the fourth quarter of 2025, we recorded an asset impairment charge of $76.3 million relating to our downtown Wilmington, Delaware properties.

Change in fair value of acquisition-related contingent consideration The change in fair value of contingent consideration during the quarter and year ended December 31, 2025, compared to the same periods in 2024, was primarily due to updated projections of future net revenue and royalties of Iclusig, including the impacts from fluctuations in foreign currency exchange rates.

Operating income GAAP and Non-GAAP operating income for the quarter ended December 31, 2025 increased 11% and 20%, respectively, compared to the same period in 2024, primarily driven by growth in total revenues. GAAP and Non-GAAP operating income for the year ended December 31, 2025 increased 2,369% and 290%, respectively, compared to the same period in 2024, primarily driven by the $679.4 million of expense relating to the IPR&D assets acquired in the Escient acquisition in 2024. Excluding upfront and milestone payments and the Escient acquisition related compensation expense and severance payments, operating income for the year ended December 31, 2025 increased 83% compared to the prior year primarily driven by growth in total revenues.

Cash, cash equivalents and marketable securities position Cash, cash equivalents and marketable securities as of December 31, 2025, were $3.6 billion, compared to $2.2 billion as of December 31, 2024.

Conference Call and Webcast Information

Incyte will hold a conference call and webcast this morning at 8:00 a.m. ET. To access the conference call, please dial 877-407-3042 for domestic callers or 201-389-0864 for international callers. When prompted, provide the conference identification number, 13758313.

If you are unable to participate, a replay of the conference call will be available for 90 days. The replay dial-in number for the United States is 877-660-6853 and the dial-in number for international callers is 201-612-7415. To access the replay you will need the conference identification number, 13758313.

The conference call will also be webcast live and can be accessed at investor.incyte.com.

About Incyte ®

A global biopharmaceutical company on a mission to Solve On ®, Incyte follows the science to find solutions for patients with unmet medical needs through the discovery, development and commercialization of proprietary therapeutics.

Incyte's unique expertise in medicinal chemistry and biology has enabled us to establish a portfolio of first-in-class medicines for patients and a strong pipeline of products in Hematology, Oncology and Inflammation and Autoimmunity.

Headquartered in Wilmington, Delaware, Incyte has operations in North America, Europe and Asia.

For additional information on Incyte, please visit Incyte.com or follow us on social media: LinkedIn, X, Instagram, Facebook, YouTube.

Incyte and Solve On are registered trademarks of Incyte.

About Jakafi ® (ruxolitinib)

Jakafi ® (ruxolitinib) is a JAK1/JAK2 inhibitor approved by the U.S. FDA for the treatment of polycythemia vera (PV) in adults who have had an inadequate response to or are intolerant of hydroxyurea; intermediate or high-risk myelofibrosis (MF), including primary MF, post-polycythemia vera MF and post-essential thrombocythemia MF in adults; steroid-refractory acute GVHD in adult and pediatric patients 12 years and older; and chronic GVHD after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older.

Jakafi is a registered trademark of Incyte.

About Opzelura ® (ruxolitinib) Cream

Opzelura ® (ruxolitinib) cream, a novel cream formulation of Incyte’s selective JAK1/JAK2 inhibitor ruxolitinib, approved by the U.S. FDA for the topical treatment of nonsegmental vitiligo in patients 12 years of age and older, is the first and only treatment for repigmentation approved for use in the United States. Opzelura is also approved in the U.S. for the topical short-term and non-continuous chronic treatment of mild to moderate AD in non-immunocompromised patients 2 years of age and older whose disease is not adequately controlled with topical prescription therapies, or when those therapies are not advisable. Use of Opzelura in combination with therapeutic biologics, other JAK inhibitors, or potent immunosuppressants, such as azathioprine or cyclosporine, is not recommended.

In Europe, Opzelura (ruxolitinib) cream 15mg/g is approved for the treatment of non-segmental vitiligo with facial involvement in adults and adolescents from 12 years of age.

Incyte has worldwide rights for the development and commercialization of Opzelura.

Opzelura is a registered trademark of Incyte.

About Monjuvi ® (tafasitamab-cxix)/Minjuvi ® (tafasitamab)

Monjuvi ® (tafasitamab-cxix)/Minjuvi ® (tafasitamab) is a humanized Fc-modified cytolytic CD19-targeting monoclonal antibody. Tafasitamab incorporates an XmAb ® engineered Fc domain, which mediates B-cell lysis through apoptosis and immune effector mechanism including Antibody-Dependent Cell-Mediated Cytotoxicity (ADCC) and Antibody-Dependent Cellular Phagocytosis (ADCP). Incyte licenses exclusive worldwide rights to develop and commercialize tafasitamab from Xencor, Inc.

In the U.S., Monjuvi is approved by the U.S. FDA in combination with lenalidomide and rituximab for the treatment of adult patients with relapsed or refractory follicular lymphoma (FL).

Monjuvi is not approved and is not recommended for the treatment of patients with relapsed or refractory marginal zone lymphoma outside of controlled clinical trials.

Additionally, Monjuvi received accelerated approval in the United States in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant (ASCT).

In Europe, Minjuvi (tafasitamab) received conditional Marketing Authorization from the European Medicines Agency in combination with lenalidomide, followed by Minjuvi monotherapy, for the treatment of adult patients with relapsed or refractory DLBCL who are not eligible for ASCT. Additionally, Minjuvi is approved in combination with lenalidomide and rituximab for the treatment of adult patients with relapsed or refractory follicular lymphoma (FL) (Grade 1-3a) after at least one line of systemic therapy in Europe.

In Japan, Minjuvi is approved in combination with rituximab and lenalidomide for adult patients with relapsed or refractory follicular lymphoma (2L+ FL).

XmAb ® is a registered trademark of Xencor, Inc.

Monjuvi and Minjuvi are registered trademarks of Incyte.

About Pemazyre ® (pemigatinib)

Pemazyre ® (pemigatinib) is a kinase inhibitor approved in the United States for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with a fibroblast growth factor receptor 2 (FGFR2) fusion or other rearrangement as detected by an FDA-approved test. This indication is approved under accelerated approval based on overall response rate and duration of response. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).

Pemazyre is also the first targeted treatment approved for use in the United States for treatment of adults with relapsed or refractory myeloid/lymphoid neoplasms (MLNs) with FGFR1 rearrangement.

In Japan, Pemazyre is approved for the treatment of patients with unresectable biliary tract cancer (BTC) with an FGFR2 fusion gene, worsening after cancer chemotherapy.

In Europe, Pemazyre is approved for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with a FGFR2 fusion or rearrangement that have progressed after at least one prior line of systemic therapy.

Pemazyre is a potent, selective, oral inhibitor of FGFR isoforms 1, 2 and 3 which has demonstrated selective pharmacologic activity against cancer cells with FGFR alterations.

Pemazyre is marketed by Incyte in the United States, Europe and Japan.

Pemazyre is a registered trademark of Incyte.

About Iclusig ® (ponatinib) tablets

Iclusig ® (ponatinib), targets not only native BCR-ABL but also its isoforms that carry mutations that confer resistance to treatment, including the T315I mutation, which has been associated with resistance to other approved tyrosine kinase inhibitors.

In the EU, Iclusig is approved for the treatment of adult patients with chronic phase, accelerated phase or blast phase chronic myeloid leukemia (CML) who are resistant to dasatinib or nilotinib; who are intolerant to dasatinib or nilotinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation, or the treatment of adult patients with Philadelphia-chromosome positive acute lymphoblastic leukemia (Ph+ ALL) who are resistant to dasatinib; who are intolerant to dasatinib and for whom subsequent treatment with imatinib is not clinically appropriate; or who have the T315I mutation.

Incyte has an exclusive license from Takeda Pharmaceuticals International AG to commercialize ponatinib in the European Union and 29 other countries, including Switzerland, UK, Norway, Turkey, Israel and Russia. Iclusig is marketed in the U.S. by Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda Pharmaceutical Company Limited.

About Zynyz ® (retifanlimab-dlwr)

Zynyz ® (retifanlimab-dlwr) is a humanized monoclonal antibody targeting programmed death receptor-1 (PD-1), approved in combination with carboplatin and paclitaxel (platinum-based chemotherapy) for the first-line treatment of adult patients with inoperable locally recurrent or metastatic SCAC and as a single agent for the treatment of adult patients with locally recurrent or metastatic SCAC with disease progression or intolerance to platinum-based chemotherapy in the U.S.

Zynyz is also approved for the treatment of adult patients with metastatic or recurrent locally advanced Merkel cell carcinoma (MCC) in the U.S. This indication is approved under accelerated approval based on tumor response rate and duration of response. Continued approval for this indication may be contingent upon verification and description of clinical benefit in confirmatory trials.

Zynyz is marketed by Incyte in the United States. In 2017, Incyte entered into an exclusive collaboration and license agreement with MacroGenics, Inc. for global rights to retifanlimab.

Zynyz is a registered trademark of Incyte.

About Niktimvo™ (axatilimab-csfr)

Niktimvo™ (axatilimab-csfr) is a first-in-class colony stimulating factor-1 receptor (CSF-1R)-blocking antibody approved for use in the U.S. for the treatment of chronic GVHD after failure of at least two prior lines of systemic therapy in adult and pediatric patients weighing at least 40 kg (88.2 lbs).

In 2016, Syndax licensed exclusive worldwide rights to develop and commercialize axatilimab from UCB. In September 2021, Syndax and Incyte entered into an exclusive worldwide co-development and co-commercialization license agreement for axatilimab in chronic GVHD and any future indications.

Axatilimab is being studied in frontline combination trials in chronic GVHD – a Phase 2 combination trial with ruxolitinib (NCT06388564) and a Phase 3 combination trial with steroids (NCT06585774) are underway. Axatilimab is also being studied in an ongoing Phase 2 trial in patients with idiopathic pulmonary fibrosis (NCT06132256).

Niktimvo is a trademark of Incyte.

All other trademarks are the property of their respective owners.

Forward-Looking Statements

Except for the historical information set forth herein, the matters set forth in this release contain predictions, estimates and other forward-looking statements, including any discussion of the following: Incyte’s financial guidance for 2026, including its expectations regarding sales of and demand for Jakafi and Opzelura and expected revenue contribution from other hematology and oncology products, including Niktimvo and Zynyz; the Company’s ability to drive sustained, long-term growth; Incyte’s strategic priorities and its plans for executing on the same; the potential and progress of programs in our pipeline, including INCA033989 (mutCALR), INCB160058 (JAK2V617Fi), INCA33890 (TGFBR2xPD1), INCB123667 (CDK2i), INCB161734 (KRAS G12D), ruxolitinib cream and povorcitinib; ongoing clinical trials and clinical trials to be initiated; expectations regarding regulatory submissions, approvals and launches for Jakafi XR, Opzelura in Europe, Zynyz, Monjuvi, and povorcitinib; and 2026 newsflow items.

These forward-looking statements are based on Incyte’s current expectations and subject to risks and uncertainties that may cause actual results to differ materially, including unanticipated developments in and risks related to: further research and development and the results of clinical trials possibly being unsuccessful or insufficient to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials and the ability to enroll subjects in accordance with planned schedules; timing of clinical trials; determinations made by the FDA, EMA and other regulatory agencies; Incyte’s dependence on its relationships with and changes in the plans of its collaboration partners; the efficacy or safety of Incyte’s products and the products of Incyte’s collaboration partners; the acceptance of Incyte’s products and the products of Incyte’s collaboration partners in the marketplace; market competition; unexpected variations in the demand for Incyte’s products and the products of Incyte’s collaboration partners; the effects of announced or unexpected price regulation or limitations on reimbursement or coverage for Incyte’s products and the products of Incyte’s collaboration partners; sales, marketing, manufacturing and distribution requirements, including Incyte’s and its collaboration partners’ ability to successfully commercialize and build commercial infrastructure for newly approved products and any additional products that become approved; greater than expected expenses, including expenses relating to litigation or strategic activities; variations in foreign currency exchange rates; and other risks detailed in Incyte’s reports filed with the Securities and Exchange Commission, including its annual report on form 10-K for the year ended December 31, 2025. Incyte disclaims any intent or obligation to update these forward-looking statements.

INCYTE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

GAAP

Revenues:

Product revenues, net

1,222,789

1,019,407

4,354,333

3,618,888

Product royalty revenues

184,046

159,291

636,909

579,329

Milestone and contract revenues

100,000

—

150,000

43,000

Total revenues

1,506,835

1,178,698

5,141,242

4,241,217

Costs, expenses and other:

Cost of product revenues (including definite-lived intangible amortization)

121,175

88,485

372,130

312,068

Contract dispute settlement

—

(242,251

)

—

Research and development

611,372

466,034

2,050,152

2,606,848

Selling, general and administrative

390,412

326,710

1,376,206

1,242,157

Asset impairment

76,275

—

76,275

—

(Gain) loss on change in fair value of acquisition-related contingent consideration

(28,258

)

(4,044

)

(6,129

)

19,803

(Profit) and loss sharing under collaboration agreements

—

(1,025

)

Total costs, expenses and other

1,170,976

877,185

3,626,383

4,179,851

Income from operations

335,859

301,513

1,514,859

61,366

Interest income

30,754

21,198

105,600

128,710

Interest expense

(582

)

(419

)

(2,428

)

(2,280

)

Gain (loss) on equity investments

18,246

(10,181

)

21,310

116,025

Other, net

5,664

1,613

25,110

12,809

Income before provision for income taxes

389,941

313,724

1,664,451

316,630

Provision for income taxes

90,662

112,512

377,801

284,015

Net income

299,279

201,212

1,286,650

32,615

Net income per share:

Basic

1.52

1.04

6.59

0.16

Diluted

1.46

1.02

6.41

0.15

Shares used in computing net income per share:

Basic

197,441

193,152

195,204

207,110

Diluted

204,766

197,423

200,700

210,530

INCYTE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands)

December 31,

2025

December 31,

2024

ASSETS

Cash, cash equivalents and marketable securities

3,580,604

2,158,092

Accounts receivable

1,024,407

853,154

Property and equipment, net

730,885

763,411

Finance lease right-of-use assets, net

27,520

30,803

Inventory

443,292

407,199

Prepaid expenses and other assets

337,849

181,382

Equity investments

47,991

18,814

Other intangible assets, net

117,131

113,803

Goodwill

133,000

155,593

Deferred income tax asset

515,294

762,071

Total assets

6,957,973

5,444,322

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable, accrued expenses and other liabilities

1,634,780

1,765,733

Finance lease liabilities

34,715

37,961

Acquisition-related contingent consideration

121,000

193,000

Stockholders’ equity

5,167,478

3,447,628

Total liabilities and stockholders’ equity

6,957,973

5,444,322

INCYTE CORPORATION

RECONCILIATION OF GAAP NET INCOME TO SELECTED NON-GAAP ADJUSTED INFORMATION

(unaudited, in thousands, except per share amounts)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

GAAP Net Income

299,279

201,212

1,286,650

32,615

Adjustments 1:

Non-cash stock compensation from equity awards (R&D) 2

36,123

44,110

150,181

161,251

Non-cash stock compensation from equity awards (SG&A) 2

25,150

26,935

95,661

102,542

Non-cash stock compensation from equity awards (COGS) 2

884

674

3,504

2,266

Non-cash interest 3

325

415

(Gain) loss on equity investments 4

(18,246

)

10,181

(21,310

)

(116,025

)

Amortization of acquired product rights 5

5,384

21,536

(Gain) loss on change in fair value of contingent consideration 6

(28,258

)

(4,044

)

(6,129

)

19,803

Asset impairment 7

76,275

—

76,275

—

Contract dispute settlement 8

—

(242,251

)

—

MorphoSys transition costs 9

—

7,084

Escient acquisition related compensation expense 10

—

1,693

2,297

38,035

Tax effect of Non-GAAP pre-tax adjustments 11

(28,716

)

(4,874

)

(1,426

)

(41,931

)

Non-GAAP Net Income

367,955

281,353

1,365,313

227,591

Non-GAAP net income per share:

Basic

1.86

1.46

6.99

1.10

Diluted

1.80

1.43

6.80

1.08

Shares used in computing Non-GAAP net income per share:

Basic

197,441

193,152

195,204

207,110

Diluted

204,766

197,423

200,700

210,530

1 Included within the Milestone and contract revenues line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and twelve months ended December 31, 2025 are milestones of $100,000 and $150,000, respectively, earned from our collaborative partners, as compared to milestones of $0 and $43,000, respectively, for the three and twelve months ended December 31, 2024. Included within the Research and development expenses line item in the Condensed Consolidated Statements of Operations (in thousands) for the three and twelve months ended December 31, 2025 are upfront consideration and milestones of $69,425 and $97,575, respectively, related to our collaborative partners, as compared to upfront consideration and milestones of $3,000 and $104,414, respectively, for the three and twelve months ended December 31, 2024.

2 As included within the Cost of product revenues (including definite-lived intangible amortization) line item; the Research and development expenses line item; and the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations.

3 As included within the Interest expense line item in the Condensed Consolidated Statements of Operations.

4 As included within the (Gain) loss on equity investments line item in the Condensed Consolidated Statements of Operations.

5 As included within the Cost of product revenues (including definite-lived intangible amortization) line item in the Condensed Consolidated Statements of Operations. Acquired product rights of licensed intellectual property for Iclusig is amortized utilizing a straight-line method over the estimated useful life of 12.5 years.

6 As included within the (Gain) loss on change in fair value of acquisition-related contingent consideration line item in the Condensed Consolidated Statements of Operations.

7 As included within the Asset impairment line item in the Condensed Consolidated Statements of Operations.

8 As included within the Contract dispute settlement line item in the Condensed Consolidated Statements of Operations.

9 Included within the Research and development line item in the Condensed Consolidated Statements of Operations (in thousands) is $0 and $6,489 for the three months and year ended December 31, 2024, respectively, and included within the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations (in thousands) is $0 and $595 for the three months and year ended December 31, 2024, respectively. MorphoSys transition costs primarily represent employee related costs to transition research and development and selling, general and administrative activities to us under the former collaboration agreement with MorphoSys.

10 Included within the Research and development line item in the Condensed Consolidated Statements of Operations (in thousands) is $0 and $2,117, respectively, for the three months and year ended December 31, 2025, as compared to $1,627 and $15,941, respectively, for the three months and year ended December 31, 2024. Included within the Selling, general and administrative expenses line item in the Condensed Consolidated Statements of Operations (in thousands) is $0 and $180, respectively, for the three months and year ended December 31, 2025, as compared to $66 and $22,094, respectively, for the three months and year ended December 31, 2024. Escient acquisition related compensation expense represents non-recurring charges associated with (i) cash settled unvested Escient equity awards in connection with the acquisition, and (ii) severance payments to former Escient employees.

11 Income tax effects of Non-GAAP pre-tax adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges are incurred, while taking into consideration any valuation allowances against related deferred tax assets.