Xeris Biopharma (NASDAQ:XERS) reported second-quarter total revenue of $92.1 million, up 29% from a year earlier, as net product revenue increased 34% to $91 million. The company raised the low end of its full-year 2026 revenue outlook, now forecasting total revenue of $385 million to $390 million.
Chairman and Chief Executive Officer John Shannon said the quarter reflected accelerating commercial momentum across the company’s portfolio, led by RECORLEV. Chief Financial Officer Steve Pieper said the company also improved its gross margin, expanded adjusted EBITDA and completed the retirement of its 2028 convertible notes after the quarter ended.
RECORLEV Drives Product Growth
The company expanded its RECORLEV commercial team in January and spent the second quarter training and deploying the added personnel. Management said it expects the expansion to make increasing contributions in the second half of the year.
In response to analyst questions, Shannon said the company’s sales efforts are aligned against approximately 12,000 target prescribers. He said growth is expected to come from both existing and new prescribers, across both new and established sales territories.
Shannon added that more than 60% of RECORLEV patients are new to therapy, which he said points to market growth rather than greater patient switching. The company said it has not seen meaningful changes in discontinuation trends, though some patients who discontinue treatment later return to therapy.
Management did not provide an estimate for the overall hypercortisolism treatment population or its share of new patient starts, saying external data sources do not allow for precise estimates.
Gvoke Rebounds, KEVEYIS Maintains Durability
Gvoke produced $22.5 million in net revenue during the quarter, up 8% sequentially. Shannon said the product recovered after a slow start to the year, while prescription growth was 10% compared with the first quarter. The company expects Gvoke to return to more typical seasonal patterns in the second half, including a customary third-quarter lift associated with the back-to-school period.
KEVEYIS delivered $11.7 million in net revenue, supported by modest year-over-year improvement in both net pricing and the number of patients receiving therapy, Pieper said.
On June 11, Xeris received a notice of allowance from the U.S. Patent Office for a new KEVEYIS patent. Once issued, the patent is expected to provide protection through at least 2039, according to Shannon. He said the company intends to increase investment in identifying and supporting patients with primary periodic paralysis, or PPP.
During the question-and-answer session, Shannon said Xeris has continued to add patients to KEVEYIS despite operating in a non-exclusive market for roughly the past year and a half. He said the patent development gives the company greater confidence to invest in the brand, although he did not comment on its implications for a generic product already on the market.
Margins, Expenses and Convertible Notes
Second-quarter gross margin was approximately 86%, improving by nearly 400 basis points from the prior-year period due to favorable product mix. Research and development expense totaled $10.7 million, up $2.6 million year over year, reflecting investment in XP-8121 ahead of an anticipated Phase III trial start later this year.
Selling, general and administrative expense was $61 million, driven primarily by deployment of the expanded RECORLEV commercial team and patient-support infrastructure. Adjusted EBITDA was $19.3 million, a $6.7 million improvement from a year earlier and growth of more than 50%, Pieper said.
In July, the company completed the full retirement of its 2028 convertible notes through a combination of cash and equity. The transaction eliminated $34 million of debt and is expected to save approximately $3 million in annual interest expense, Pieper said.
The company recorded an approximately $31 million one-time, non-cash GAAP charge in the second quarter resulting from the remeasurement of the notes following an exchange agreement signed June 10. Pieper said the charge did not affect adjusted EBITDA and that no additional income-statement charge related to the notes is expected in the third quarter.
2026 Outlook and XP-8121 Plans
Xeris tightened its 2026 total revenue guidance to $385 million to $390 million, raising the lower end while maintaining the upper end. The outlook implies continued growth from RECORLEV’s expanded commercial organization and a second-half improvement at Gvoke, management said.
- Gross margin is expected to improve modestly compared with 2025.
- R&D expense is expected to increase by approximately $25 million from 2025, consistent with prior expectations.
- SG&A expense is now projected to rise approximately $50 million from 2025, $5 million more than the company’s prior forecast.
- Adjusted EBITDA is still expected to increase in absolute dollars compared with 2025.
The incremental R&D investment is largely related to XP-8121, Pieper said. He added that a similar increase in R&D spending could be reasonable next year as the Phase III program ramps up, though the company plans to provide more specific guidance in early 2027.
Xeris said it finalized clinical site selection for XP-8121 and expects to begin its Phase III program by year-end. The company received its second U.S. patent covering the candidate on July 28 and has also received a notice of allowance for an additional patent application that would become its third U.S. patent for the program when issued.
The company plans to hold an XP-8121 webinar on Sept. 9 to discuss the Phase III trial design, endpoints, patient population, development schedule and regulatory timelines. Shannon said the program remains on track with the timeline previously communicated by the company, including a planned 2030 launch.
About Xeris Biopharma (NASDAQ:XERS)
Xeris Biopharma is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapies for endocrine and orphan diseases. The company’s proprietary formulation platform is designed to enable liquid stability of drugs that traditionally require reconstitution before injection. By eliminating the need for on-site mixing and simplifying administration, Xeris aims to improve patient safety, adherence, and convenience in high-need therapeutic areas.
The company’s flagship product, Gvoke, is a ready-to-use liquid glucagon autoinjector and prefilled syringe that has been approved by the U.S.
