What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-11 · 191 added, 94 removed, 1002 unchanged (22% of the section changed)

31 unchanged sentences

20,000 shares authorized;

issued and outstanding

no shares issued and outstanding

Common stock - $ 0.001 par value;

300,000 shares authorized;

118,523 and 117,782 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

114,042 and 117,782 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital — 12,002

8 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Royalties $ 307,699 $ 205,639 $ 548,380 $ 373,831

11 unchanged sentences

Investment and other income, net

2,836 6,891 4,154 13,709

Interest expense ( 5,588 ) ( 4,394 ) ( 11,096 ) ( 8,919 )

13 unchanged sentences

(In thousands)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Net income $ 229,913 $ 165,160 $ 379,962 $ 283,255

1 unchanged sentence

Unrealized (loss) gain on marketable securities, net

( 73 ) ( 35 ) ( 76 ) 154

Foreign currency translation adjustment ( 29 ) ( 3 ) 16 ( 3 )

1 unchanged sentence

4,161 ( 27,047 ) 8,183 ( 34,270 )

Realized loss (gain) on derivative instruments, net

1,325 ( 208 )

Realized loss on derivative instruments, net 814 2,095 2,138 1,887

Comprehensive income $ 234,786 $ 140,170 $ 390,223 $ 251,023

3 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

Operating activities

7 unchanged sentences

( 632 ) ( 2,843 )

Realized loss on marketable securities 28 26

Loss on disposal of equipment 76 —

Lease payments recognized

15 unchanged sentences

Financing activities

Taxes paid related to net share settlement, net of proceeds from issuance of common stock under equity incentive plans

( 1,613 ) ( 3,321 )

Repurchase of common stock ( 332,729 ) ( 303,489 )

Proceeds from issuance of common stock under equity incentive plans, net of taxes paid related to net share settlement 4,865 1,202

Net cash used in financing activities

( 327,864 ) ( 302,287 )

Net increase in cash and cash equivalents

175,588 60,478

Net increase (decrease) in cash and cash equivalents 27,565 ( 53,989 )

Cash and cash equivalents at beginning of period

13 unchanged sentences

(in thousands)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Common Stock Additional

3 unchanged sentences

Shares Amount

BALANCE AS OF DECEMBER 31, 2025 117,782 $ 118 $ 12,002 $ ( 18,092 ) $ 54,786 $ 48,814

BALANCE AS OF MARCH 31, 2026 118,523 $ 118 $ 27,386 $ ( 12,703 ) $ 204,835 $ 219,636

Share-based compensation expense — — 17,942 — — 17,942

Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net 741 — ( 1,613 ) — — ( 1,613 )

Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock units, net and shares issued under the ESPP plan 320 1 6,477 — — 6,478

Repurchase of common stock

( 4,801 ) ( 5 ) ( 51,805 ) ( 283,489 ) ( 335,299 )

Other comprehensive income

1 unchanged sentence

Net income — — — — 229,913 229,913

BALANCE AS OF JUNE 30, 2026 114,042 $ 114 $ — $ ( 7,830 ) $ 151,259 $ 143,543

Six Months Ended June 30, 2026

Common Stock Additional

Capital Accumulated

Comprehensive Loss Retained Earnings

Stockholders’

Shares Amount

BALANCE AS OF DECEMBER 31, 2025 117,782 $ 118 $ 12,002 $ ( 18,092 ) $ 54,786 $ 48,814

Share-based compensation expense — — 34,939 — — 34,939

Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net and shares issued under the ESPP plan

1,061 1 4,864 — — 4,865

Repurchase of common stock ( 4,801 ) ( 5 ) ( 51,805 ) ( 283,489 ) ( 335,299 )

Other comprehensive income — — — 10,262 10,262

Net income — — — — 379,962 379,962

BALANCE AS OF JUNE 30, 2026 114,042 $ 114 $ — $ ( 7,830 ) $ 151,259 $ 143,543

Three Months Ended June 30, 2025

Common Stock Additional

Capital Accumulated

Comprehensive Loss Retained Earnings

Stockholders’

Shares Amount

BALANCE AS OF MARCH 31, 2025 123,170 $ 123 $ 7,596 $ ( 3,413 ) $ 477,964 $ 482,270

Three Months Ended March 31, 2025

Share-based compensation expense — — 12,161 — — 12,161

Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock units, net and shares issued under the ESPP plan 269 1 4,523 — — 4,524

Repurchase of common stock ( 5,818 ) ( 6 ) ( 24,280 ) ( 282,091 ) ( 306,377 )

Other comprehensive loss

— — — ( 24,990 ) — ( 24,990 )

Net income — — — — 165,160 165,160

BALANCE AS OF JUNE 30, 2025 117,621 $ 118 $ — $ ( 28,403 ) $ 361,033 $ 332,748

Six Months Ended June 30, 2025

Common Stock Additional

5 unchanged sentences

Share-based compensation expense — — 22,834 — — 22,834

Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net 484 — ( 3,321 ) — — ( 3,321 )

Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net and shares issued under the ESPP plan 754 1 1,201 — — 1,202

Repurchase of common stock ( 6,271 ) ( 6 ) ( 24,035 ) ( 282,091 ) ( 306,132 )

Other comprehensive loss — — — ( 32,232 ) — ( 32,232 )

— — — ( 7,242 ) — ( 7,242 )

Net income — — — — 283,255 283,255

BALANCE AS OF MARCH 31, 2025 123,170 $ 123 $ 7,596 $ ( 3,413 ) $ 477,964 $ 482,270

BALANCE AS OF JUNE 30, 2025 117,621 $ 118 $ — $ ( 28,403 ) $ 361,033 $ 332,748

See accompanying notes to condensed consolidated financial statements.

7 unchanged sentences

We are also developing partner products with Hypercon™ drug delivery technology (“Hypercon technology”) and developing Surf Bio’s drug delivery technology to expand the breadth of our drug delivery technology portfolio.

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 and potentially expanding opportunities for at-home and health care provider administration.

The Surf Bio hyperconcentration technology has similarly been demonstrated in non-clinical studies to achieve biologic concentrations of up to 500 mg/mL, for potential delivery in a single auto-injector shot for at-home or in a health care provider’s office use.

We also develop, manufacture and commercialize, for ourselves or with our partners, drug-device combination products using our advanced auto-injector technologies that are designed to provide commercial or functional advantages such as improved convenience, reliability and tolerability, and enhanced patient comfort and adherence.

19 unchanged sentences

(“Merus”), Skye Bioscience, Inc.

(“Skye Bioscience”) and GlaxoSmithKline plc (“GSK”).

(“Skye Bioscience”), GlaxoSmithKline plc (“GSK”) and Incyte Corporation (“Incyte”).

In addition to receiving upfront licensing fees from our ENHANZE collaborations, we are entitled to receive event and sales-based milestone payments, revenues from the sale of bulk rHuPH20 and royalties from commercial sales of approved partner products co-formulated with ENHANZE.

11 unchanged sentences

Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements have been prepared for purposes of and in accordance with United States generally accepted accounting principles (“U.S.

The accompanying interim unaudited condensed consolidated financial statements have been prepared for purposes of and in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S.

GAAP”) and with the rules and regulations of the U.S.

15 unchanged sentences

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 March 31, 2026, our cash and cash equivalents consisted of money market funds, bank certificate of deposits and demand deposits at commercial banks.

As of June 30, 2026, our cash and cash equivalents consisted of money market funds, bank certificate of deposits and demand deposits at commercial banks.

Marketable securities are investments with original maturities of more than 90 days from the date of purchase that are specifically identified to fund current operations.

7 unchanged sentences

Under the terms of the leases of our facilities and other agreements, we are required to maintain letters of credit as security deposits during the terms of such leases.

At March 31, 2026, restricted cash of $ 2.3 million was pledged as collateral for the letters of credit and other agreements.

At June 30, 2026, restricted cash of $ 0.8 million was pledged as collateral for the letters of credit and other agreements.

Fair Value of Financial Instruments

8 unchanged sentences

The carrying amount of cash equivalents, accounts receivable, prepaid expenses and other assets, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments.

As of March 31, 2026, our available-for-sale marketable securities consisted of United States (“U.S.”) Treasury securities, and were measured at fair value using Level 1.

As of June 30, 2026, our available-for-sale marketable securities consisted of U.S.

Treasury securities, and were measured at fair value using Level 1.

Level 2 financial instruments are valued using market prices on less active markets and proprietary pricing valuation models with observable inputs, including interest rates, yield curves, maturity dates, issue dates, settlement dates, reported trades, broker-dealer quotes, issue spreads, benchmark securities or other market related data.

45 unchanged sentences

No portion of our foreign currency forward contracts were excluded from the assessment of hedge effectiveness.

As of March 31, 2026, all hedges were determined to be highly effective.

As of June 30, 2026, all hedges were determined to be highly effective.

The assets or liabilities associated with our hedging contracts are recorded at fair market value in prepaid expense and other current assets, prepaid expenses and other assets, accrued expenses, or other long-term liabilities, respectively, in our condensed consolidated balance sheets.

4 unchanged sentences

We do not use derivatives for speculative or trading purposes.

As of March 31, 2026, the amount expected to be recognized as a net loss out of AOCI into our condensed consolidated statements of income during the next 12 months is $ 6.2 million.

As of June 30, 2026, the amount expected to be recognized as a net loss out of AOCI into our condensed consolidated statements of income during the next 12 months is $ 4.3 million.

Business Combinations

57 unchanged sentences

Partners may terminate the agreement prior to expiration for any reason in its entirety or on a target-by-target basis generally upon 90 days prior written notice to us.

Upon any such termination, the license granted to partners (in total or with respect to the terminated target, as applicable) will terminate provided;

however, that in the event of expiration of the agreement (as opposed to a termination), the on-going licenses granted may become perpetual, non-exclusive and fully paid.

Upon any such termination, the license granted to partners (in total or with respect to the terminated target, as applicable) will terminate provided, however, that in the event of expiration of the agreement (as opposed to a termination), the on-going licenses granted may become perpetual, non-exclusive and fully paid.

Sales-based milestones and royalties are recognized in the period the underlying sales or milestones occur.

71 unchanged sentences

The collaboration partner is responsible for all development, manufacturing, clinical, regulatory, sales and marketing costs for any products developed under the agreement;

however, the agreement also includes Hypercon performing certain research and development (“R&D”) services to support the collaboration partner in their efforts.

We assessed the nature of the promised goods and services in the contract which includes the license of the Hypercon technology representing a functional license of intellectual property to our customers, R&D services, and manufacturing technology transfer.

These promises are not capable of being distinct performance obligations at this time due to the exclusive proprietary know-how and certain regulatory requirements associated with the manufacturing of the product.

however, certain Hypercon agreements also include Hypercon performing specific research and development (“R&D”) services to support the collaboration partner in their efforts.

We assessed the nature of the promised goods and services in these specific contracts, which include the license of the Hypercon technology representing a functional license of intellectual property to our customers, R&D services, and manufacturing technology transfer.

These promises were not capable of being distinct performance obligations at contract inception due to the exclusive proprietary know-how and certain regulatory requirements associated with the manufacturing of the product.

The collaboration partner simultaneously receives and consumes the benefits of the combined performance obligations as data is generated to support regulatory approval submissions.

A significant component of the cost of R&D relates to our clinical trial research consultants, who are assisting with the monitoring of the Hypercon technology to ensure the successful combination of the Hypercon technology with the collaboration partner’s drug.

The agreements include milestone payments, royalties, and an initial upfront payment.

A significant component of the cost of R&D relates to our clinical trial research consultants, who are assisting with the monitoring of the Hypercon technology to support the successful combination of the Hypercon technology with the collaboration partner’s drug.

These specific agreements include milestone payments, royalties, and an initial upfront payment.

This upfront payment was received from the collaboration partner upon inception of the agreement and recorded as deferred revenue to be recognized as we perform certain R&D services to support the collaboration partner in their efforts to successfully combine Hypercon technology with previously developed products.

6 unchanged sentences

Deferred revenue for expenses expected to be incurred within the next 12 months are classified as accrued expenses on the condensed consolidated balance sheets.

For recent Hypercon collaboration and license agreements, we account for the Hypercon license as a distinct performance obligation when the license and related technology are separately identifiable from subsequent R&D or other services.

Under these arrangements, the collaboration partner is provided functional intellectual property that is capable of use when made available, and any later services are not required to substantively change, customize or further develop the underlying Hypercon technology for the partner to benefit from the license.

Accordingly, upfront license fees allocated to the Hypercon license are recognized when the partner has received access to the licensed intellectual property at contract inception.

Any subsequent R&D, manufacturing support or other services are contracted separately, and thereby accounted for as separate performance obligations priced at SSP and recognized as the services are performed.

Options to select additional targets are evaluated for material rights, and grants of additional licensing rights are accounted for as separate contracts when the option does not provide a material right.

The agreements have one type of performance obligation (i.e., licenses) which are typically all transferred at contract inception.

Allocation of transaction price is often not required.

However, allocation is required when licenses for some of the individual targets are subject to rights of exchange.

When allocation is needed, we perform an

allocation of the upfront amount based on relative SSP of licenses for individual targets.

We determine license SSP using an income-based valuation approach utilizing risk-adjusted discounted cash flow projections of the estimated return a licensor would receive where applicable, or an alternative valuation method such as indicative value from historical transactions.

Transaction price for a contract represents the amount to which we are entitled in exchange for providing goods and services to the customer.

Transaction price does not include amounts subject to uncertainties unless it is probable that there will be no significant reversal of revenue when the uncertainty is resolved.

Apart from the upfront license payment (or target selection fees in the target selection contracts), all other fees we may earn under our collaborative agreements are subject to significant uncertainties of product development.

Achievement of many of the event-based development and regulatory milestones may not be probable until such milestones are actually achieved.

This generally relates to milestones such as obtaining marketing authorization approvals.

With respect to other development milestones, e.g., dosing of a first patient in a clinical trial, achievement could be considered probable prior to its actual occurrence, based on the progress towards commencement of the trial.

In order to evaluate progress towards commencement of a trial, we assess the status of activities leading up to our partner’s initiation of a trial such as feedback received from the applicable regulatory authorities, completion of investigational new drug or equivalent filings, readiness and availability of drug, readiness of study sites and our partner’s commitment of resources to the program.

We do not include any amounts subject to uncertainties in the transaction price until it is probable that the amount will not result in a significant reversal of revenue in the future.

At the end of each reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price.

Device License, Development and Supply Arrangements

3 unchanged sentences

For other contracts that do not contain an enforceable right to payment for performance completed to date, revenue is recognized when control of the product is transferred to the customer.

Factors that may indicate transfer of control has occurred include the transfer of legal title, transfer of physical

possession, the customer has obtained the significant risks and rewards of ownership of the assets, and we have a present right to payment.

Factors that may indicate transfer of control has occurred include the transfer of legal title, transfer of physical possession, the customer has obtained the significant risks and rewards of ownership of the assets, and we have a present right to payment.

Our payment terms for development contracts may include an upfront payment equal to a percentage of the total contract value with the remaining portion to be billed upon completion and transfer of the individual deliverables or satisfaction of the individual performance obligations.

24 unchanged sentences

Wholesalers also have rights to return unsold product nearing or past the expiration date.

Because of the shelf life of our products and our lengthy

return period, there may be a significant period of time between when the product is shipped and when we issue credits on returned product.

Because of the shelf life of our products and our lengthy return period, there may be a significant period of time between when the product is shipped and when we issue credits on returned product.

We estimate the transaction price when we receive each purchase order taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors.

42 unchanged sentences

On a quarterly basis, we assess the need for valuation allowance on our DTAs, weighing all positive and negative evidence, to assess if it is more-likely-than-not that some or all of our DTAs will be realized.

We recorded a provision for income tax of $ 30.3 million with an effective tax rate of 16.8 % for the three months ended March 31, 2026.

We recorded a provision for income tax of $ 55.0 million and $ 85.3 million with an effective tax rate of 19.3 % and 18.3 % for the three and six months ended June 30, 2026, respectively.

The difference between our effective tax rates and the U.S.

22 unchanged sentences

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.

(“Elektrofi”) according to the terms and conditions of the Agreement and Plan of Merger dated as of September 30, 2025.

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.

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 use or in-office administration by a health care provider.

The total purchase consideration of Elektrofi was $ 810.4 million.

24 unchanged sentences

Measurement period adjustments (3)

Amounts recognized as of March 31, 2026 (as adjusted)

Amounts recognized as of June 30, 2026 (as adjusted)

Assets acquired

42 unchanged sentences

On December 22, 2025, we acquired all outstanding equity interests of Surf Bio, Inc.

according to the terms and conditions of the Agreement and Plan of Merger dated as of December 18, 2025 (the “Surf Bio Merger Agreement”).

(“Surf Bio”) according to the terms and conditions of the Agreement and Plan of Merger dated as of December 18, 2025.

Surf Bio is a preclinical biopharmaceutical company that is transforming how antibodies and biologics are delivered to patients.

13 unchanged sentences

Available-for-sale marketable securities consisted of the following (in thousands):

March 31, 2026

June 30, 2026

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value

5 unchanged sentences

Total marketable securities, available-for-sale $ 9,002 $ — $ ( 2 ) $ 9,000

As of March 31, 2026, all available-for-sale marketable securities with a fair market value of $ 8.9 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 March 31, 2026 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.

As of June 30, 2026, all available-for-sale marketable securities were in a $ 0.1 million 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 June 30, 2026 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):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Estimated Fair Value

4 unchanged sentences

The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Level 1 Level 2 Total Estimated Fair Value

14 unchanged sentences

Carrying amounts of the financial assets and liabilities are equal to the fair value.

As of March 31, 2026, the derivative assets recorded within prepaid expenses and other current assets and prepaid expenses and other assets in our consolidated balance sheets were $ 0.4 million and $ 0.3 million , respectively.

The derivative liabilities recorded within accrued expenses and other long-term liabilities in our condensed consolidated balance

sheets were $ 6.6 million and $ 10.5 million , respectively.

As of June 30, 2026, the derivative assets recorded within prepaid expenses and other current assets and prepaid expenses and other assets in our consolidated balance sheets were $ 0.8 million and $ 1.3 million , respectively.

The derivative liabilities recorded within accrued expenses and other long-term liabilities in our condensed consolidated balance sheets were

$ 5.1 million and $ 7.2 million , respectively.

As of December 31, 2025, the derivative liabilities recorded within accrued expenses and other long-term liabilities in our condensed consolidated balance sheets were $ 7.7 million and $ 15.1 million , respectively.

We had no available-for-sale securities that were classified within Level 3 as of March 31, 2026 and December 31, 2025.

We had no available-for-sale securities that were classified within Level 3 as of June 30, 2026 and December 31, 2025.

A contingent liability with a preliminary value of $ 23.0 million was assumed as part of the Elektrofi acquisition related to future milestone payments.

5 unchanged sentences

Our disaggregated revenues were as follows (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Royalties $ 307,699 $ 205,639 $ 548,380 $ 373,831

9 unchanged sentences

Upfront license and target nomination fees

35,500 — 35,500 220

Event-based development and regulatory milestones and other fees

5,706 24,500 5,706 24,500

Sales-based milestones

— 10,000 — 25,000

Device licensing and development revenue

2,468 4,070 8,071 7,478

Total revenues under collaborative agreements 43,674 38,570 49,277 57,198

Total revenues $ 480,999 $ 325,719 $ 857,707 $ 590,580

During the three months ended March 31, 2026, we recognized revenue related to licenses granted to partners in prior periods in the amount of $ 240.7 million.

This amount represents royalties earned in the current period.

We recognized $ 2.4 million revenue during the three months ended March 31, 2026 that had been included in accrued expense and other long-term liabilities in our condensed consolidated balance sheets as of December 31, 2025.

During the three months ended June 30, 2026, we recognized revenue related to licenses granted to partners in prior periods in the amount of $ 313.4 million.

This amount represents royalties earned in the current period, in addition to $ 5.7 million of variable consideration in the contracts where uncertainties were resolved and the development milestones are expected to be achieved or were achieved.

We recognized $ 0.3 million revenue during the three months ended June 30, 2026 that had been included in accrued expense and other long-term liabilities in our condensed consolidated balance sheets as of December 31, 2025.

During the six months ended June 30, 2026, we recognized revenue related to licenses granted to partners in prior periods in the amount of $ 554.1 million.

We recognized $ 2.7 million revenue during the six months ended June 30, 2026 that had been included in accrued expense and other long-term liabilities in our condensed consolidated balance sheets as of December 31, 2025.

Accounts receivable, net, other contract assets and deferred revenues (contract liabilities) from contracts with customers, including partners, consisted of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Accounts receivable, net $ 453,327 $ 426,273

1 unchanged sentence

Deferred revenues 31,669 35,482

As of March 31, 2026, the amounts included in the transaction price of our contracts with customers, including collaboration partners, and allocated to goods and services not yet provided were $ 298.7 million, of which $ 265.8 million relates to unfulfilled product purchase orders and $ 32.9 million has been collected and is reported as other long-term liabilities in our condensed consolidated balance sheets.

The unfulfilled product purchase orders are estimated to be delivered by the first quarter of 2028.

As of June 30, 2026, the amounts included in the transaction price of our contracts with customers, including collaboration partners, and allocated to goods and services not yet provided were $ 266.0 million, of which $ 234.3 million relates to unfulfilled product purchase orders and $ 31.7 million has been collected and is reported as other long-term liabilities in our condensed consolidated balance sheets.

The unfulfilled product purchase orders are estimated to be delivered by the second quarter of 2028.

Of the total deferred revenues of $ 31.7 million, $ 4.4 million is expected to be used by our customers within the next 12 months.

There were no contract assets related to collaboration agreements as of March 31, 2026.

There were $ 2.5 million of contract assets related to collaboration agreements as of June 30, 2026.

While we may become entitled to receive additional event-based development and regulatory milestones and other fees under our collaborative agreements, which relate to development milestones deemed probable of receipt for intellectual property licenses granted to collaboration partners in prior periods, no amounts were deemed probable.

56 unchanged sentences

$ 84,271 $ 82,137

Depreciation and amortization expense was approximately $ 4.2 million and $ 2.7 million, inclusive of ROU asset amortization of $ 2.6 million and $ 1.5 million for the three months ended March 31, 2026 and 2025, respectively.

Depreciation and amortization expense was approximately $ 4.5 million and $ 2.7 million, inclusive of ROU asset amortization of $ 2.5 million and $ 1.5 million for the three months ended June 30, 2026 and 2025, respectively.

Depreciation and amortization expense was approximately $ 8.7 million and $ 5.4 million, inclusive of ROU asset amortization of $ 5.1 million and $ 3.0 million for the six months ended June 30, 2026 and 2025, respectively.

Accrued expenses consisted of the following (in thousands):

12 unchanged sentences

$ 111,861 $ 156,193

Expense associated with the accretion of the lease liabilities was approximately $ 0.7 million and $ 0.5 million for the three months ended March 31, 2026 and 2025, respectively.

Total lease expense for the three months ended March 31, 2026 and 2025 was $ 3.1 million and $ 2.0 million, respectively.

Cash paid for amounts related to leases for the three months ended March 31, 2026 and 2025 was $ 2.9 million and $ 1.8 million, respectively.

Expense associated with the accretion of the lease liabilities was approximately $ 0.6 million and $ 0.5 million for the three months ended June 30, 2026 and 2025, respectively, and $ 1.3 million and $ 1.0 million for the six months ended June 30, 2026 and 2025, respectively.

Total lease expense for the three months ended June 30, 2026 and 2025 was $ 3.2 million and $ 2.0 million, respectively, and $ 6.3 million and $ 4.0 million for the six months ended June 30, 2026 and 2025, respectively.

Cash paid for amounts related to leases for the three months ended June 30, 2026 and 2025 was $ 3.0 million and $ 1.8 million, respectively, and $ 5.9 million and $ 3.5 million for the six months ended June 30, 2026 and 2025, respectively.

Goodwill and Intangible Assets, net

2 unchanged sentences

Measurement period adjustment

Balance as of March 31, 2026

Balance as of June 30, 2026

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 March 31, 2026 (in thousands).

The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of June 30, 2026 (in thousands).

Weighted Average Useful Life (in years)

8 unchanged sentences

(1) A partner is currently evaluating the potential return of a target.

Through discussions with the partner, we expect the partner will make a decision by September 2026.

Through discussions with the partner, the deadline for making a decision has been extended and we now expect the partner will make a decision by February 2027.

If the partner does decide to return the target in the future without nominating an alternative target with similar future cash flows, we would be required to evaluate the impact to our acquired customer relationship intangibles associated with the Elektrofi acquisition, along with other identified intangibles and goodwill of the reporting unit.

33 unchanged sentences

and (5) at any time from, and including, May 15, 2032, until the close of business on the second scheduled trading day immediately before the maturity date.

As of March 31, 2026, the 2032 Convertible Notes were not convertible.

As of June 30, 2026, the 2032 Convertible Notes were not convertible.

Upon conversion, we will pay cash for the settlement of principal, and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election.

1 unchanged sentence

The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued or unpaid interest.

As of March 31, 2026, we were in compliance with all covenants.

As of June 30, 2026, we were in compliance with all covenants.

2032 Capped Call Transactions

2 unchanged sentences

The cap price of the 2032 Capped Call Transactions is initially $ 136.78 per share of common stock, representing a premium of 100 % above the last reported sale price of $ 68.30 per share of common stock on November 5, 2025, and is subject to certain adjustments under the terms of the 2032 Capped Call Transactions.

As of March 31, 2026, no 2032 Capped Call Transactions had been exercised.

As of June 30, 2026, no 2032 Capped Call Transactions had been exercised.

Pursuant to their terms, the 2032 Capped Call Transactions qualify for classification within stockholders’ equity in our condensed consolidated balance sheets, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification.

16 unchanged sentences

and (5) at any time from, and including, August 15, 2030, until the close of business on the scheduled trading day immediately before the maturity date.

As of March 31, 2026, the 2031 Convertible Notes were not convertible.

As of June 30, 2026, the 2031 Convertible Notes were not convertible.

Upon conversion, we will pay cash for the settlement of principal and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election.

1 unchanged sentence

The conversion rate is subject to adjustment.

As of March 31, 2026, we were in compliance with all covenants.

As of June 30, 2026, we were in compliance with all covenants.

2031 Capped Call Transactions

2 unchanged sentences

The cap price of the 2031 Capped Call Transactions is initially $ 136.78 per share of common stock, representing a premium of 100 % above the last reported sale price of $ 68.30 per share of common stock on November 5, 2025, and is subject to certain adjustments under the terms of the 2031 Capped Call Transactions.

As of March 31, 2026, no 2031 Capped Call Transactions had been exercised.

As of June 30, 2026, no 2031 Capped Call Transactions had been exercised.

Pursuant to their terms, the 2031 Capped Call Transactions qualify for classification within stockholders’ equity in our condensed consolidated balance sheets, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification.

16 unchanged sentences

and (5) at any time from, and including, February 15, 2028 until the close of business on the second scheduled trading day immediately before the maturity date.

As of March 31, 2026, the 2028 Convertible Notes were not convertible.

As of June 30, 2026, the 2028 Convertible Notes were not convertible.

3 unchanged sentences

In connection with the repurchases, we paid approximately $ 342.9 million in cash, which included a premium, inducement expense and accrued interest.

As of March 31, 2026, we were in compliance with all covenants.

As of June 30, 2026, we were in compliance with all covenants.

2028 Capped Call Transactions

2 unchanged sentences

The cap price of the 2028 Capped Call Transactions is initially $ 75.4075 per share of common stock, representing a premium of 75 % above the last reported sale price of $ 43.09 per share of common stock on August 15, 2022, and is subject to certain adjustments under the terms of the 2028 Capped Call Transactions.

As of March 31, 2026, no 2028 Capped Call Transactions had been exercised.

As of June 30, 2026, no 2028 Capped Call Transactions had been exercised.

Pursuant to their terms, the 2028 Capped Call Transactions qualify for classification within stockholders’ equity in our condensed consolidated balance sheets, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification.

16 unchanged sentences

and (5) at any time from, and including, September 1, 2026 until the close of business on the scheduled trading day immediately before the maturity date.

As of March 31, 2026, the 2027 Convertible Notes were not convertible.

As of June 30, 2026, the 2027 Convertible Notes were not convertible.

3 unchanged sentences

In connection with the repurchases, we paid approximately $ 676.8 million in cash, which included a premium, inducement expense and accrued interest.

As of March 31, 2026, we were in compliance with all covenants.

As of June 30, 2026, we were in compliance with all covenants.

Net Carrying Amounts of our Convertible Notes

33 unchanged sentences

The following table summarizes the components of interest expense and the effective interest rates for each of our Convertible Notes (in thousands).

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Coupon interest

8 unchanged sentences

2032 Convertible Notes

534 — 1,066 —

Total amortization of debt discount $ 2,014 $ 1,653 $ 4,023 $ 3,301

3 unchanged sentences

2031 Convertible Notes

731 — 1,461 —

2032 Convertible Notes

2,175 — 4,347 —

Total interest expense $ 4,961 $ 3,956 $ 9,916 $ 7,907

3 unchanged sentences

2031 Convertible Notes

0.4 % $ — 0.4 % $ —

2032 Convertible Notes

1.2 % $ — 1.2 % $ —

Revolving Credit and Term Loan Facilities

8 unchanged sentences

The commitment fees range from 0.15 % to 0.35 % per annum based on our consolidated net leverage ratio.

As of March 31, 2026, the Revolving Credit Facility was undrawn.

As of June 30, 2026, the Revolving Credit Facility was undrawn.

We incurred a total of $ 7.3 million in third-party costs related to the 2022 Credit Agreement which are recorded as debt issuance cost within prepaid expenses and other assets in our condensed consolidated balance sheets.

As of March 31, 2026, the unamortized debt issuance cost related to the revolving credit facility was $ 4.4 million.

As of June 30, 2026, the unamortized debt issuance cost related to the revolving credit facility was $ 4.2 million.

Stockholders’ Equity

1 unchanged sentence

The following table summarizes share-based compensation expense included in our condensed consolidated statements of income related to share-based awards (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Research and development $ 4,755 $ 3,545 $ 9,799 $ 6,774

2 unchanged sentences

Share-based compensation expense by type of share-based award was as follows (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Stock options $ 4,404 $ 3,773 $ 9,944 $ 7,582

1 unchanged sentence

Total share-based compensation expense $ 17,698 $ 12,161 $ 34,335 $ 22,834

We granted stock options to purchase approximately 0.3 million and 0.4 million shares of common stock during the three months ended March 31, 2026 and 2025, respectively.

We granted stock options to purchase approximately 0.4 million and 0.4 million shares of common stock during the six months ended June 30, 2026 and 2025, respectively.

The exercise price of stock options granted is equal to the closing price of the common stock on the date of grant.

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The assumptions used in the Black-Scholes Model were as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Expected volatility 40.14 - 40.20 %

40.95 - 40.95 %

29.91 - 41.95 %

39.68 - 40.95 %

Average expected term (in years) 4.7 5.5 4.7 4.8

1 unchanged sentence

3.81 - 3.81 %

3.62 - 4.08 %

3.81 - 4.34 %

Expected dividend yield — — — —

2 unchanged sentences

Share purchases are funded through payroll deduction of at least 1 % and up to 15 % of an employee’s compensation for each payroll period, and no employee may purchase shares under the 2021 ESPP that exceeds $ 25,000 worth of our common stock for a calendar year.

As of March 31, 2026, 2.5 million shares were available for future purchase.

As of June 30, 2026, 2.5 million shares were available for future purchase.

The offering period is generally for a six-month period.

Offering periods shall commence on or about the sixteenth day of June and December of each year and end on or about the fifteenth day of the next December and June, respectively, occurring thereafter.

During the six months ended June 30, 2026, 16,946 shares were issued pursuant to the ESPP.

Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized was as follows (in thousands, unless otherwise noted):

March 31, 2026

June 30, 2026

Expense Remaining

6 unchanged sentences

Share Repurchases

February 2024 Share Repurchase Program

In February 2024, our Board of Directors authorized a new capital return program to repurchase up to $ 750.0 million of our outstanding common stock.

During 2024, we repurchased approximately 4.7 million shares for $ 250.0 million at an average price of $ 53.95 per share.

In May 2025, we announced the second $ 250.0 million share repurchase tranche under the $ 750.0 million approved program from February 2024.

The second $ 250.0 million share repurchase was completed in June 2025, resulting in a total purchase of approximately 4.8 million shares at an average price of $ 52.09 per share.

In June 2025, we initiated the third $ 250.0 million share repurchase tranche under the $ 750.0 million approved program from February 2024.

As of September 30, 2025, $ 92.3 million has been used to repurchase approximately 1.7 million shares at an average price of $ 52.89 per share.

During 2025, we repurchased approximately 6.5 million shares for $ 342.3 million at an average price of $ 52.32 per share.

During the second quarter of 2026, we repurchased approximately 2.3 million shares for $ 157.7 million at an average price of $ 67.91 per share.

Our February 2024 share repurchase program was completed in June 2026 with a total of 13.5 million shares repurchased at an average price of $ 55.56 per share.

May 2026 Share Repurchase Program

In May 2026, our Board of Directors authorized a new capital return program to repurchase up to $ 1.0 billion of our outstanding common stock by December 31, 2028.

During the second quarter of 2026, we repurchased 2.5 million shares for $ 175.1 million at an average price of $ 70.60 per share under the May 2026 program.

We had the following share repurchase activity under the approved share repurchase programs (in thousands, except share and per share amounts):

Total Number of Shares Purchased

Weighted-Average Price Paid Per Share

First quarter — $ — $ —

Second quarter (1)

4,801,364 $ 69.30 332,729

4,801,364 $ — $ 332,729

(1) Included in the total cost of shares purchased is a commission fee of $ 0.02 per share.

All shares repurchased under our capital return programs have been retired and have resumed their status of authorized and unissued shares.

6 unchanged sentences

A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations is as follows (in thousands, except per share amounts):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Net income $ 229,913 $ 165,160 $ 379,962 $ 283,255

9 unchanged sentences

Shares which have been excluded from the calculation of diluted earnings per common share because their effect was anti-dilutive include the following (shares in millions):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Anti-dilutive securities (1)

28.3 24.4 28.2 24.3

(1) The anti-dilutive securities include outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and Convertible Notes.

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements