Galapagos NV reported full‑year 2025 results on February 23, 2026, showing an operating profit of €295.1 million, a turnaround from a €188.3 million operating loss in 2024. The profit jump was largely driven by a €1.069 billion release of deferred income from its collaboration with Gilead Sciences and disciplined cost management that cut operating expenses by €275 million as the company winds down its cell‑therapy business.
Total net revenue for 2025 reached €1,112.2 million, up 303 % from €275.6 million in 2024, driven by the deferred income recognition. In Q4 2025, revenue of $91.27 million beat analyst estimates of $77.83 million, a 17.27 % beat. EPS for the year was $0.0239 USD, surpassing the consensus estimate of –$0.2039 USD, a surprise of 111.72 %. The strong earnings beat was enabled by the one‑time deferred income and the company’s ability to keep operating costs in check while scaling revenue.
Cash and financial investments stood at €2.998 billion as of December 31, 2025, down from €3.318 billion a year earlier. Management projects a year‑end 2026 cash balance of €2.775 billion to €2.850 billion, reflecting a shift toward cash‑flow neutrality once the cell‑therapy wind‑down completes. The company also expects €40 million in ongoing TYK2 program support and a €35‑40 million one‑time restructuring charge related to the cell‑therapy exit.
Galapagos is repositioning itself as a capital‑allocation vehicle focused on business development and in‑licensing opportunities. CEO Henry Gosebruch said, “We are encouraged by the level of potential transactions we have in our deal pipeline.” CFO Aaron Cox added, “At year‑end, Galapagos remained robustly capitalized, with approximately €3.0 billion in cash and financial investments as of December 31, 2025. This strong financial position underpins our ability to act decisively and allocate capital in a disciplined manner as we evaluate business development opportunities.” He also noted that the company expects to be cash‑flow neutral to positive by the end of 2026.
The results underscore Galapagos’ successful transition from a traditional biotech model to a strategic capital‑allocation platform. The combination of a large deferred income recognition, disciplined cost control, and a robust cash position provides the flexibility to pursue transformative business‑development opportunities while maintaining a lean operating model.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.