[Management View]
Xeris Biopharma reported a record net product revenue of $74.1 million for Q3 2025, marking a 40% year-over-year increase. The growth was driven by strong performance across all products, particularly Recorlev, which saw a 109% revenue increase. The company achieved its first-ever quarterly net income, highlighting operational discipline and commercial strength. Strategic priorities include expanding the sales force to support Recorlev's market penetration and advancing the XP 8121 pipeline.

[Outlook]
The company raised its full-year 2025 revenue guidance to $285 million–$290 million, projecting a 42% growth at the midpoint over 2024. Future plans involve doubling the sales and patient support teams and initiating a phase 3 clinical trial for XP 8121 in 2026. Both SG&A and R&D expenses are expected to rise as the company invests in commercial expansion and clinical development.

[Financial Performance]
Xeris Biopharma's Q3 2025 financials showed a 40% YoY increase in net product revenue to $74.1 million. Recorlev's revenue more than doubled, driven by a 108% rise in patient numbers. Gvoke and KEVEYIS also contributed to growth with 10% and steady increases, respectively. The gross margin improved to 85%, and adjusted EBITDA was $17.4 million, a significant improvement from the previous year.

[Q&A Highlights]
Question 1: Impact of expanded Salesforce on Recorlev and competitor supply issues?
Answer: The Salesforce expansion increased the team by 50%, reaching optimal productivity in early 2025. New reps will be onboarded in January, with full productivity expected after a few quarters. No unusual patient source changes were noted in Q3.

Question 2: Persistency and discontinuation rates for Recorlev?
Answer: Persistency metrics remain stable, with high levels of new patient starts. Discontinuation rates are typical for specialty products in complex disease states.

Question 3: Expectations for Recorlev's growth in 2026?
Answer: Continued investment in Recorlev's expansion is planned, with the product on track to become a billion-dollar asset. The market for hypercortisolism is growing, supporting further growth.

Question 4: R&D and SG&A expense trends for 2026?
Answer: R&D expenses will peak with the XP 8121 trial in 2026. SG&A will increase with the Recorlev expansion, but the company remains committed to positive adjusted EBITDA.

Question 5: Long-term sales guidance for Recorlev and Salesforce buildout?
Answer: Continued investment in Recorlev's infrastructure is necessary to manage patient load and drive growth. Additional investments in data and commercial capabilities are planned.

Question 6: Competitive dynamics for Recorlev with potential relacorilant approval?
Answer: The entry of relacorilant is seen as market-expanding, with potential benefits from increased screening and detection efforts.

Question 7: Momentum among new and repeat prescribers for Recorlev?
Answer: Strong momentum is observed among both new and repeat prescribers, with a 108% increase in patients and prescriptions.

Question 8: KEVEYIS franchise durability and competition?
Answer: KEVEYIS continues to show durability with ongoing new patient additions. The company remains vigilant for potential competition.

[Sentiment Analysis]
Analysts expressed positive sentiment, congratulating the company on its progress and strategic initiatives. Management maintained a confident tone, emphasizing growth potential and strategic investments.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------|---------|---------|------------|
| Net Product Revenue | $74.1M | N/A | +40% |
| Recorlev Revenue | $37M | N/A | +109% |
| Gvoke Revenue | $25.2M | N/A | +10% |
| KEVEYIS Revenue | $11.9M | N/A | N/A |
| Gross Margin | 85% | N/A | N/A |
| Adjusted EBITDA | $17.4M | N/A | N/A |

[Risks and Concerns]
Potential risks include increased competition from new market entrants like relacorilant, variability in quarterly EPS results due to strategic investments, and the need for continued infrastructure expansion to support growth.

[Final Takeaway]
Xeris Biopharma's Q3 2025 results demonstrate robust growth and strategic execution, with record revenue and the first-ever quarterly net income. The company is well-positioned for future growth, with plans to expand its sales force and advance its pipeline. While competition and investment variability pose risks, the company's strategic focus and operational discipline provide a strong foundation for continued success.