01—Abstract
Summary
Summary of the 10-K filed February 10, 2026. Cited figures are marked; the original filing is the authoritative source.
Incyte Corporation (Nasdaq: INCY) reported total revenues of $5.14 billiona for 2025, up from $4.24 billion in 2024, and net income of $1,286.7 million, compared with $32.6 million in 2024.
JAKAFI remains the dominant product, with net revenues of $3.09 billionb in 2025, and the company states that JAKAFI product sales are expected to begin declining upon the expiration of its patent exclusivity in 2028. Product revenues from OPZELURA ($678.5 million), NIKTIMVO ($151.6 million, launched January 2025), and ZYNYZ ($66.3 million) grew, while royalty revenues from JAKAVI, OLUMIANT and TABRECTA totaled $636.9 million. Results were affected by a $242.2 million contract dispute settlement gain with Novartis and a $76.3 million asset impairment on downtown Wilmington properties, and 2025 R&D expense was $2.05 billion versus $2.61 billion in 2024, which included $679.4 million of acquired IPR&D from the Escient acquisition.
The balance sheet at December 31, 2025 showed cash, cash equivalents and marketable securities of $3.58 billionc, no outstanding borrowings under a $500.0 million revolving credit facility, and stockholders' equity of $5.17 billion. Operating cash flow was $1.41 billion in 2025 versus $335.3 million in 2024. The company is pursuing late-stage programs, including the ruxolitinib XR regulatory decision expected in mid-2026, povorcitinib in hidradenitis suppurativa with FDA approval potentially by early 2027, and a Phase 3 frontMIND filing for tafasitamab in first-line DLBCL planned for the first half of 2026.
The filing also describes pending patent litigation against generic manufacturers for JAKAFI and OPZELURA, a $218.5 milliond accrual relating to a lawsuit against CMS over the OPZELURA line-extension classification, and a new CEO, William J. Meury, who joined in June 2025.
02—Key points
Key Highlights
- Total revenues rose to $5.14 billion in 2025 from $4.24 billion in 2024, with total product revenues of $4.35 billion.
- JAKAFI net revenues were $3.09 billion in 2025 versus $2.79 billion in 2024; the company expects JAKAFI sales to decline after patent exclusivity expires in 2028.
- Net income was $1,286.7 million ($6.41 diluted EPS) in 2025, compared with $32.6 million ($0.15 diluted EPS) in 2024, aided by a $242.2 million contract dispute settlement gain with Novartis.
- OPZELURA net revenues grew to $678.5 million, and NIKTIMVO reached $151.6 million in its first full year after its January 2025 U.S. launch.
- Cash, cash equivalents and marketable securities totaled $3.58 billion at year-end 2025, with no borrowings outstanding under the $500.0 million revolving credit facility.
- A $76.3 million asset impairment was recorded on downtown Wilmington, Delaware properties classified as held for sale in December 2025.
- Pipeline milestones include a ruxolitinib XR regulatory decision expected in mid-2026, a Phase 3 frontMIND filing for tafasitamab in first-line DLBCL in the first half of 2026, and an FDA NDA review of povorcitinib in hidradenitis suppurativa with potential approval by early 2027.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Incyte kept $0.25.
- Revenue$5.14B100.0%
- Cost of revenue−$372.1M7.2%
- Gross profit$4.77B92.8%
- Operating costs−$3.25B63.3%
- Operating income$1.51B29.5%
- Interest, other & tax−$228.2M4.4%
- Net income$1.29B25.0%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 10, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $5.14B$4.24B | +21.2% |
| Cost of Revenue | $372.13M$312.07M | +19.2% |
| Gross Profit | $4.77B$3.93B | +21.4% |
| R&D Expenses | $2.05B$2.61B | −21.4% |
| SG&A Expenses | $1.38B$1.24B | +10.8% |
| Operating Expenses | $3.63B$4.18B | −13.2% |
| Operating Income | $1.51B$61.37M | +2368.6% |
| Net Income | $1.29B$32.60M | +3846.9% |
| EPS (Basic) | $6.59$0.16 | +4018.8% |
| EPS (Diluted) | $6.41$0.15 | +4173.3% |
| Shares Outstanding (Basic) | 195.20M207.11M | −5.7% |
| Shares Outstanding (Diluted) | 200.70M210.53M | −4.7% |
05—Questions
Frequently Asked Questions
How dependent is Incyte on JAKAFI, and what happens after 2028?
JAKAFI generated $3.09 billion of the company's $5.14 billion in 2025 total revenues, and the filing states that JAKAFI revenues are expected to begin declining once patent exclusivity expires in 2028. The company says it cannot assure investors that other marketed products will offset that decline. Generic manufacturers have filed ANDAs with paragraph IV challenges, and Incyte has settled litigation with Hikma and Granules while litigation against other generic filers remains pending.
What drove the swing from a small 2024 profit to a large 2025 profit?
The 2024 results included $679.4 million of acquired in-process R&D expense related to the Escient acquisition, which depressed that year's income. In 2025, net income of $1,286.7 million reflected higher product revenues, a $242.2 million contract dispute settlement gain tied to the Novartis royalty dispute, and a $100.0 million upfront payment from Lilly recorded in milestone and contract revenues.
What are the main risks tied to OPZELURA?
Incyte has accrued approximately $218.5 million relating to incremental Medicaid rebates that would be owed if CMS treats OPZELURA as a line extension of JAKAFI, and the company is suing CMS over that interpretation. The filing also notes that OPZELURA labeling includes class boxed warnings for oral JAK inhibitors, which could negatively affect future sales. Generic ANDA challenges against OPZELURA patents are pending in the U.S. District Court for the District of New Jersey.
How strong is the balance sheet and liquidity position?
At December 31, 2025, Incyte held $3.58 billion in cash, cash equivalents and marketable securities and reported $1.41 billion of operating cash flow for 2025. Working capital was $3.51 billion, and the company had no outstanding borrowings under its $500.0 million revolving credit facility, which matures in June 2027. Management believes these resources will be adequate for its capital needs for the foreseeable future.
Which near-term catalysts does the filing identify?
The filing identifies several 2026 events: an expected regulatory decision and potential launch of ruxolitinib XR in mid-2026, a planned sBLA for tafasitamab plus lenalidomide with R-CHOP in first-line DLBCL in the first half of 2026 following positive frontMIND topline results, and a potential EMA approval of povorcitinib by the end of 2026. Phase 3 data for povorcitinib in vitiligo are anticipated by mid-2026, and the Phase 3 INCA033989 program in essential thrombocythemia is expected to start in mid-2026.
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