Financial Analysis

Business Combinations Elektrofi, Inc. On November 18, 2025, we acquired all outstanding equity interests of Elektrofi, Inc. according to the terms and conditions of the Agreement and Plan of Merger dated as of September 30, 2025 (the Elektrofi Merger Agreement). Elektrofi is a biopharmaceutical company with an innovative microparticle technology that has been demonstrated in non-clinical testing to enable hyperconcentration of drugs and biologics and reduce the injection volume for the same dosage, potentially expanding opportunities for at-home and health care provider administration. We acquired Elektrofi as a part of our strategy to expand our drug delivery technology offerings. Hypercon technology is an innovative microparticle technology that has been demonstrated in non-clinical testing to enable hyperconcentration of drugs and biologics and reduce the injection volume for the same dosage, potentially expanding opportunities for at-home and health care provider administration. The total purchase consideration of Elektrofi was $810.4 million. Each share of Elektrofi common stock issued and outstanding was converted into the right to receive $28.80 per share in cash without interest, less any applicable withholding taxes (Merger Consideration). Additionally, in connection with the transaction, $56.5 million was paid to Elektrofi option holders for options granted and outstanding as of November 18, 2025 under the Elektrofi 2015 Equity Compensation Plan. Other components of …

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Commitments and Contingencies Operating Leases Our properties consist of leased office, laboratory, warehouse and assembly facilities. Our administrative offices and research facilities are located in San Diego, California. We also lease a building in Minnetonka, Minnesota consisting of office, assembly operations, and warehousing space, two leased buildings in Boston, Massachusetts consisting of office and lab space and have a small leased administrative office in Ewing, New Jersey. We lease an aggregate of approximately 196,000 square feet of space. We pay a pro rata share of operating costs, insurance costs, utilities and real property taxes. Additionally, we lease certain office equipment and vehicles under operating leases. Total rent expense was approximately $9.4 million, $8.6 million and $9.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. Approximate annual future minimum operating lease payments as of December 31, 2025 are as follows (in thousands): Year Operating Leases 2026 $ 11,277 2027 9,005 2028 7,857 2029 6,271 2030 5,334 Thereafter 747 Total minimum lease payments 40,491 Less imputed interest (5,922) Total $ 34,569 The weighted-average remaining lease term of our operating leases is approximately 4.16 years. Legal Contingencies From time to time, we may be involved in disputes, including litigation, relating to claims arising out of operations in the normal course of our business. Any of these claims could subject us to costly lega …

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Employee Savings Plan We have an employee savings plan pursuant to Section 401(k) of the Internal Revenue Code. All employees are eligible to participate, provided they meet the requirements of the plan. We are not required to make matching contributions under the plan. However, we voluntarily contributed to the plan approximately $3.6 million, $3.3 million and $3.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.

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Long-Term Debt, Net 0.875% Convertible Notes due 2032 In November 2025, we completed the sale of $750.0 million in aggregate principal amount of 0.875% Convertible Senior Notes due 2032 (the 2032 Convertible Notes). The net proceeds from the issuance of the 2032 Convertible Notes, after deducting the initial purchasers fee of $15.0 million, was approximately $735.0 million. We also incurred additional debt issuance costs totaling $0.5 million. Debt issuance costs and the initial purchasers fee are presented as a debt discount. The 2032 Convertible Notes pay interest semi-annually in arrears on May 15th and November 15th of each year at an annual rate of 0.875%. The 2032 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2032 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness, and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2032 Convertible Notes have a maturity date of November 15, 2032. Holders may convert their 2032 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 202 …

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Our disaggregated revenues were as follows (in thousands): Year Ended December 31, 2025 2024 2023 Royalties $ 867,840 $ 570,991 $ 447,865 Product sales, net Proprietary product sales 194,608 166,620 130,834 Bulk rHuPH20 sales 133,023 86,334 115,442 Device partnered product sales 48,813 50,538 54,578 Total product sales, net 376,444 303,492 300,854 Revenues under collaborative agreements Upfront license and target nomination fees 18,471 27,000 2,000 Event-based development and regulatory milestones and other fees 47,000 72,500 69,000 Sales-based milestones 70,000 30,000 Device licensing and development revenue 16,856 11,341 9,534 Total revenues under collaborative agreements 152,327 140,841 80,534 Total revenues $ 1,396,611 $ 1,015,324 $ 829,253 …

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Fair Value Measurement Available-for-sale marketable securities consisted of the following (in thousands): December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. treasury securities $ 9,002 $ $ (2) $ 9,000 Total marketable securities, available-for-sale $ 9,002 $ $ (2) $ 9,000 December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Asset-backed securities $ 251 $ $ $ 251 Corporate debt securities 102,632 150 (207) 102,575 U.S. treasury securities 367,700 442 (572) 367,570 Agency bonds 9,844 (16) 9,828 Total marketable securities, available-for-sale $ 480,427 $ 592 $ (795) $ 480,224 As of December 31, 2025, all available-for-sale marketable securities with a fair market value of $9.0 million were in an immaterial gross unrealized loss position. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of December 31, 2025 because we do not intend to sell these securities and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis. The estimated fair value of our contractual maturities of available-for-sale debt securities were as follows (in thousands): December 31, 2025 December 31, 2024 Due within one year $ 9,000 $ 314,978 Due after one year but within five years (1) 165,246 Total estimated fair value of available-for-sale securities $ 9,0 …

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Goodwill and Intangible Assets, net Goodwill A summary of the activity impacting goodwill is presented below (in thousands): Balance as of December 31, 2024 $ 416,821 Goodwill acquired 163,539 Balance as of December 31, 2025 $ 580,360 Intangible Assets, net Our acquired intangible assets are amortized using the straight-line method over their estimated useful lives of seven to fifteen years. The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2025 (in thousands). Weighted Average Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Auto-injector technology platform 7 $ 402,000 $ 207,021 $ 194,979 XYOSTED proprietary product 10 136,200 49,098 87,102 Hypercon developed technology platform 15 230,000 1,831 228,169 Customer relationships 15 470,000 3,743 466,257 Trade name 15 5,000 40 4,960 Total intangible assets, net (1) $ 1,243,200 $ 261,733 $ 981,467 (1) An impairment charge of $48.7 million was recognized during the year ended December 31, 2025 resulting in the full impairment of the ATRS-1902 IPR&D intangible asset. The impairment charge resulted from a strategic decision to discontinue the development of ATRS-1902 due to strategic initiatives executed in the quarter ended December 31, 2025. The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of …

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Income Taxes Total income before income tax expense summarized by region was as follows (in thousands): Year Ended December 31, 2025 2024 2023 United States $ 467,527 $ 557,852 $ 348,828 Foreign (652) (720) (499) Income before income tax expense $ 466,875 $ 557,132 $ 348,329 Significant components of our net deferred tax assets (liabilities) were as follows (in thousands). December 31, 2025 2024 Deferred tax assets Net operating loss carryforwards $ 60,853 $ 20,736 Capped call transactions 46,806 Research and development and credits 22,308 17,868 Share-based compensation 9,960 6,567 ASC 842 lease liability 7,927 7,126 Capitalized research expense 5,370 30,253 Inventory related reserves 19,691 19,867 Other, net 16,949 4,206 Total deferred tax assets 189,864 106,623 Valuation allowance for deferred tax assets (878) (2,363) Deferred tax assets, net of valuation allowance 188,986 104,260 Deferred tax liabilities Non-deductible book amortization (217,883) (89,247) ASC 842 right of use asset (8,589) (7,882) Other, net (5,438) (3,276) Total deferred tax liabilities (231,910) (100,405) Net deferred tax (liabilities) asset $ (42,924) $ 3,855 A valuation allowance of $0.9 million and $2.4 million has been established to offset the net DTAs as of December 31, 2025 and 2024, respectively, as realization of such assets is uncertain. On a periodic basis, we reassess the valuation allowance of our DTAs, weighing all positive and negative evidence, to assess if it is more-likely-than-not tha …

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Adoption and Pending Adoption of Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting standards, those adopted in the current period and those not yet adopted: Standard Description Effective Date Adoption Method Effect on the Financial Statements or Other Significant Matters In September 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-06, IntangiblesGoodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software The new guidance includes amendments to clarify and modernize the accounting for costs related to internal-use software, including removing all references to project stages and clarifying thresholds used to begin capitalizing internal-use software development costs. Annual periods beginning after December 15, 2027 (our 2028 Form 10-K), and interim reporting periods within those annual reporting periods (our Q1 2027 Form 10-Q) Early adoption is permitted. Prospective, Retrospective or Modified Transition Approach We early adopted the new guidance in the interim period ended September 30, 2025, on a prospective basis. The adoption did not have a material impact on our consolidated financial statements or financial statement disclosures. In November 2024, the FASB issued ASU 2024-04, DebtDebt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments The n …

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Revenue Our disaggregated revenues were as follows (in thousands): Year Ended December 31, 2025 2024 2023 Royalties $ 867,840 $ 570,991 $ 447,865 Product sales, net Proprietary product sales 194,608 166,620 130,834 Bulk rHuPH20 sales 133,023 86,334 115,442 Device partnered product sales 48,813 50,538 54,578 Total product sales, net 376,444 303,492 300,854 Revenues under collaborative agreements Upfront license and target nomination fees 18,471 27,000 2,000 Event-based development and regulatory milestones and other fees 47,000 72,500 69,000 Sales-based milestones 70,000 30,000 Device licensing and development revenue 16,856 11,341 9,534 Total revenues under collaborative agreements 152,327 140,841 80,534 Total revenues $ 1,396,611 $ 1,015,324 $ 829,253 During the year ended December 31, 2025, we recognized revenue related to licenses granted to partners in prior periods in the amount of $984.8 million. This amount represents royalties and sales milestone earned in the current period, in addition to $47.0 million of variable consideration in the contracts where uncertainties were resolved and the development milestones are expected to be achieved or were achieved. We also recognized revenue of $2.0 million during the year ended December 31, 2025 that had been included in accrued expenses and other long-term liabilities in our consolidated balance sheets as of December 31, 2024. Accounts receivable, net, other contract assets and deferred revenues (contract liabilities) from co …

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Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Halozyme Therapeutics, Inc. and our wholly owned subsidiaries, Halozyme, Inc., Antares Pharma, Inc., Antares Pharma, Inc.s two wholly owned Swiss subsidiaries, Antares Pharma IPL AG and Antares Pharma GmbH, Halozyme Hypercon, Inc., Halozyme Hypercon Inc.s wholly-owned subsidiary, Elektrofi Security Corp., and Halozyme Surf Bio, Inc. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that we believe to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from our estimates. Cash Equivalents and Marketable Securities Cash equivalents consist of highly liquid investments, readily convertible to cash, which mature within 90 days or less from the date of purchase. As of December 31, 2025, our cash and cash equivalents consisted of money market funds, bank certificate of deposits and demand deposits a …

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Stockholders Equity Share-based Compensation We currently grant stock options, RSUs and PSUs under our Amended and Restated 2021 Stock Plan (2021 Stock Plan), which was approved by the stockholders on May 5, 2021 an d provides for the grant of up to 17.8 million shares of common stock to selected employees, consultants and non-employee members of our Board of Directors as stock options, stock appreciation rights, RSUs and PSUs. Awards are subject to terms and conditions established by the Compensation Committee of our Board of Directors. During the year ended December 31, 2025, we granted share-based awards under the 2021 Stock Plan. As of December 31, 2025, 6.9 million shares were subject to outstanding awards and 8.1 million shares were available for future grants of share-based awards. The following table summarizes share-based compensation expense included in our consolidated statements of income related to share-based awards excluding the acceleration of Elektrofi and Surf Bio equity awards (in thousands): Year Ended December 31, 2025 2024 2023 Research and development $ 14,555 $ 12,985 $ 13,345 Selling, general and administrative 37,010 30,400 23,275 Total share-based compensation expense $ 51,565 $ 43,385 $ 36,620 Share-based compensation expense by type of share-based award was as follows (in thousands): Year Ended December 31, 2025 2024 2023 Stock options $ 15,650 $ 16,078 $ 16,351 RSUs, PSUs and ESPP 35,915 27,307 20,269 Total share-based compensation expense $ 51,5 …

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