01—Abstract
Summary
Summary of the 10-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Alnylam Pharmaceuticals reported its first full year of GAAP profitability in 2025, with total revenues of $3.71 billiona (up 65% year over year) and net income of $313.7 million, compared with a net loss of $278.2 million in 2024.
The growth was driven overwhelmingly by AMVUTTRA, whose net product revenue rose 138% to $2.31 billionb following FDA approval for ATTR cardiomyopathy (ATTR-CM) in March 2025. Total net product revenues reached $2.99 billion, while collaboration revenue of $553 million included a one-time $300 million Roche milestone that management expects will not recur, so collaboration revenue is guided lower in 2026. Investors should weigh the quality of earnings against several headwinds.
Cost of goods sold rose to 22.7% of product revenue from 18.6%, because royalties owed to Sanofi on AMVUTTRA escalate in tiers up to 30%, and management expects that ratio to rise further in 2026. Operating expenses grew 32% to $3.21 billionc, and the company carries about $2.5 billion of debt-like obligations, including $1.01 billion of convertible notes and roughly $2.95 billion of liabilities tied to sales of future royalties and development funding. The balance sheet is stronger, with $2.91 billion in cash and marketable securities and stockholders' equity turning positive at $789 million, but a $1.15 billion repurchase of 2027 Notes and a new $500 million revolver show active liability management.
The 2030 'Alnylam 2030' goals call for 25%d+ revenue CAGR and roughly 30% non-GAAP operating margin. Key risk items include Leqvio generic (Paragraph IV) challenge, competition from lower-priced oral TTR therapies, pricing and healthcare reform exposure, a U.S. Attorney's Office subpoena on government price reporting, and continued reliance on third-party manufacturers and collaborators. Pipeline catalysts include nucresiran Phase 3 trials, the ZENITH outcomes trial for zilebesiran, and the HHT Phase 2 program for ALN-6400.
02—Key points
Key Highlights
- First full-year GAAP profitability: net income of $313.7 million (diluted EPS $2.33) versus a net loss of $278.2 million in 2024.
- Total revenues rose 65% to $3.71 billion; net product revenues rose 81% to $2.99 billion, led by AMVUTTRA (+138% to $2.31 billion), with U.S. AMVUTTRA sales up 175% after the ATTR-CM approval.
- Gross margin pressure: cost of goods sold rose to 22.7% of net product revenues (18.6% in 2024) due to tiered Sanofi royalties on AMVUTTRA, which management expects to increase further in 2026.
- Collaboration revenue of $553 million includes a $300 million Roche milestone that is non-recurring, so collaboration revenue is expected to decline in 2026, while Leqvio royalties are expected to grow.
- Balance sheet strengthened: $2.91 billion of cash and marketable securities, positive stockholders' equity of $789 million (from $67 million), and a $500 million undrawn revolving credit facility.
- Debt and financing obligations remain large: $1.01 billion of convertible notes (2028 Notes at 0%, $362.8 million of 1% 2027 Notes remaining), plus about $1.48 billion Leqvio royalty liability and $1.69 billion of development-funding liabilities.
- Key risks: Paragraph IV challenge to Leqvio patents (generic filing in January 2026), U.S. Attorney's Office subpoena on government price reporting, and Medicare/Medicaid pricing reform under the IRA and recent executive actions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Alnylam Pharmaceuticals, Inc. kept $0.08.
- Revenue$3.71B100.0%
- Cost of revenue−$677.2M18.2%
- Gross profit$3.04B81.8%
- Operating costs−$2.54B68.3%
- Operating income$501.6M13.5%
- Interest, other & tax−$187.8M5.1%
- Net income$313.7M8.4%
Where FY2025 revenue went
$3.71B- R&D: $1.32B, 36% of revenue
- SG&A: $1.21B, 33% of revenue
- Cost of revenue: $677.2M, 18% of revenue
- Net income: $313.7M, 8.4% of revenue
- Interest, other & tax: $187.8M, 5.1% of revenue
Kept 8.4% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 12, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $3.71B$2.25B | +65.2% |
| Cost of Revenue | $677.17M$306.51M | +120.9% |
| Gross Profit | $3.04B$1.94B | +56.4% |
| R&D Expenses | $1.32B$1.13B | +17.2% |
| SG&A Expenses | $1.21B$975.53M | +24.1% |
| Operating Expenses | $3.21B$2.43B | +32.5% |
| Operating Income | $501.58M-$176.88M | +383.6% |
| Net Income | $313.75M-$278.16M | +212.8% |
| EPS (Basic) | $2.39$-2.18 | +209.6% |
| EPS (Diluted) | $2.33$-2.18 | +206.9% |
| Shares Outstanding (Basic) | 131.00M127.65M | +2.6% |
| Shares Outstanding (Diluted) | 134.68M127.65M | +5.5% |
05—Questions
Frequently Asked Questions
Is Alnylam now consistently profitable, and what drove the 2025 turnaround?
Alnylam reported its first annual GAAP profit in 2025, with net income of $313.7 million versus a net loss of $278.2 million in 2024. The turnaround was driven by AMVUTTRA's rapid growth after its March 2025 U.S. approval for ATTR cardiomyopathy, which lifted net product revenue by $1.34 billion, together with a $300 million Roche milestone. Management cautions that it may not sustain profitability on a quarterly basis, and that operating losses could recur in future periods as it funds its pipeline.
What is the outlook for margins and collaboration revenue in 2026?
Management expects cost of goods sold as a percentage of product revenue to rise in 2026 because of higher AMVUTTRA sales and the escalating Sanofi royalty tiers, which reach 25% and 30% at higher sales levels. Collaboration revenue is expected to decline because the $300 million Roche milestone recognized in 2025 will not recur, while royalty revenue from Leqvio is expected to grow. R&D and SG&A are both expected to increase as the company launches products and advances its pipeline.
How much debt and debt-like obligation does Alnylam carry, and is it manageable?
Convertible debt on the balance sheet was $1.01 billion at year-end, consisting of $661.3 million of 0% 2028 Notes and $362.8 million of 1% 2027 Notes after $672 million of repurchases. Liabilities related to the sale of future royalties and development funding total about $1.69 billion on the balance sheet, including the Blackstone Leqvio royalty liability and development funding for vutrisiran and zilebesiran. Against this, the company holds $2.91 billion of cash and marketable securities and has a $500 million revolver, undrawn except for $17.5 million of letters of credit, which it says will fund operations for at least 12 months.
What are the biggest threats to AMVUTTRA's revenue growth?
Competition from oral ATTR-CM therapies (VYNDAQEL/VYNDAMAX and ATTRUBY) is a key concern because those products are priced lower in the U.S., and pipeline competitors such as nex-z and eplontersen are advancing in Phase 3. Pricing and reimbursement pressure from the IRA, most-favored-nation initiatives, and pharmacy benefit managers could also reduce net prices. The company also faces the risk of generic entry, although it notes its key patents and regulatory exclusivities run into the 2030s, and the risk of supply disruption, since it depends on Agilent and a limited number of CMOs.
What regulatory or legal matters could affect investors?
In October 2025 the U.S. Attorney's Office for the District of Massachusetts subpoenaed documents on government price reporting for AMVUTTRA, ONPATTRO, OXLUMO and GIVLAARI, and the company is producing records. Novartis received a Paragraph IV certification for Leqvio in January 2026, which opens the possibility of generic litigation, although Novartis controls enforcement. The University of Texas lawsuit over ONPATTRO was transferred to Massachusetts in December 2025, and the Pfizer and Moderna patent suits were settled in 2025.
06—Continue