BioMarin Pharmaceutical's (NASDAQ:BMRN) Q4 CY2025 Sales Beat Estimates
Biotech company BioMarin Pharmaceutical (NASDAQ:BMRN) reported Q4 CY2025 results
Is now the time to buy BioMarin Pharmaceutical?
BioMarin Pharmaceutical (BMRN) Q4 CY2025 Highlights:
- Revenue: $874.6 million vs analyst estimates of $834.3 million (17% year-on-year growth, 4.8% beat)
- Adjusted EPS: $0.46 vs analyst expectations of $0.56 (17.9% miss)
- Adjusted EBITDA: -$39.76 million vs analyst estimates of $198.8 million (-4.5% margin, significant miss)
- Adjusted EPS guidance for the upcoming financial year 2026 is $5.05 at the midpoint, missing analyst estimates by 5.3%
- Operating Margin: -5.1%, down from 21.6% in the same quarter last year
- Free Cash Flow Margin: 6.7%, down from 22.2% in the same quarter last year
- Market Capitalization: $12.31 billion
"In 2025, operational excellence led to strengthening financial results, including double-digit topline growth, strong profitability and increasing cash flow. We also advanced multiple medicines in our pipeline and closed the year by announcing the acquisition of Amicus," said Alexander Hardy, President and Chief Executive Officer of BioMarin.
Company Overview
Pioneering treatments for conditions that often had no previous therapeutic options, BioMarin Pharmaceutical (NASDAQ:BMRN) develops and commercializes therapies that address the root causes of rare genetic disorders, particularly those affecting children.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, BioMarin Pharmaceutical’s 11.6% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. BioMarin Pharmaceutical’s annualized revenue growth of 15.4% over the last two years is above its five-year trend, suggesting its demand recently accelerated.
This quarter, BioMarin Pharmaceutical reported year-on-year revenue growth of 17%, and its $874.6 million of revenue exceeded Wall Street’s estimates by 4.8%.
Looking ahead, sell-side analysts expect revenue to grow 13.4% over the next 12 months, a slight deceleration versus the last two years. Still, this projection is admirable and implies the market is forecasting success for its products and services.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
BioMarin Pharmaceutical was profitable over the last five years but held back by its large cost base. Its average operating margin of 9.1% was weak for a healthcare business.
On the plus side, BioMarin Pharmaceutical’s operating margin rose by 17.2 percentage points over the last five years, as its sales growth gave it immense operating leverage. Zooming in on its more recent performance, we can see the company’s trajectory is intact as its margin has also increased by 5.9 percentage points on a two-year basis. These data points are very encouraging and show momentum is on its side.
In Q4, BioMarin Pharmaceutical generated an operating margin profit margin of negative 5.1%, down 26.7 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
BioMarin Pharmaceutical’s EPS grew at a spectacular 13.8% compounded annual growth rate over the last five years, higher than its 11.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into BioMarin Pharmaceutical’s earnings to better understand the drivers of its performance. As we mentioned earlier, BioMarin Pharmaceutical’s operating margin declined this quarter but expanded by 17.2 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
In Q4, BioMarin Pharmaceutical reported adjusted EPS of $0.46, down from $0.92 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects BioMarin Pharmaceutical’s full-year EPS of $3.15 to grow 71.1%.
Key Takeaways from BioMarin Pharmaceutical’s Q4 Results
We enjoyed seeing BioMarin Pharmaceutical beat analysts’ revenue expectations this quarter. On the other hand, its full-year EPS guidance missed and its EPS fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 4.1% to $60.32 immediately after reporting.
BioMarin Pharmaceutical may have had a tough quarter, but does that actually create an opportunity to invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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