Xeris Biopharma Q2 2026 Earnings Report

Xeris Biopharma EPS Results

• Actual EPS: -$0.18
• Consensus EPS: $0.01
• Beat/Miss: Missed by -$0.19
• One Year Ago EPS: N/A

Xeris Biopharma Revenue Results

• Actual Revenue: $92.10 million
• Expected Revenue: $90.13 million
• Beat/Miss: Beat by +$1.97 million
• YoY Revenue Growth: N/A

Xeris Biopharma Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 8:30AM ET

Xeris Biopharma (NASDAQ:XERS) is a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapies for endocrine and orphan diseases. The company’s proprietary formulation platform is designed to enable liquid stability of drugs that traditionally require reconstitution before injection. By eliminating the need for on-site mixing and simplifying administration, Xeris aims to improve patient safety, adherence, and convenience in high-need therapeutic areas.

The company’s flagship product, Gvoke, is a ready-to-use liquid glucagon autoinjector and prefilled syringe that has been approved by the U.S. Food and Drug Administration for the treatment of severe hypoglycemia in adults and pediatric patients with diabetes. Gvoke is the first and only ready-to-use glucagon rescue product, offering rapid emergency treatment without the time-consuming reconstitution steps required by traditional glucagon kits. In addition to Gvoke, Xeris is advancing a pipeline of liquid-stable therapies, including investigational rescue treatments for seizures and other acute conditions.

Founded in 2008 and headquartered in Chicago, Illinois, Xeris Biopharma operates primarily in the United States while exploring international partnerships to expand the reach of its novel drug-delivery technologies. The company is led by President and Chief Executive Officer Paul Edick, whose leadership has guided Xeris from its early research stages through the commercialization of its first product. As Xeris continues to grow its portfolio, it aims to address unmet needs across a spectrum of endocrine and neurology indications.

Xeris Biopharma Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter revenue reached a record $92.1 million, with net product revenue up 34% year over year to $91 million; adjusted EBITDA increased more than 50% to $19.3 million.
• Positive Sentiment: RECORLEV revenue surged 81% to $56.8 million, supported by record referrals, new patient starts, and prescriber growth. Management expects the expanded commercial team to contribute further in the second half.
• Positive Sentiment: Xeris raised and narrowed full-year 2026 revenue guidance to $385 million-$390 million, citing sustained portfolio momentum and an expected rebound in Gvoke, while KEVEYIS received a patent allowance that could extend protection through at least 2039.
• Positive Sentiment: The company fully retired its $34 million of convertible debt in July, eliminating approximately $3 million in annual interest expense and simplifying the balance sheet, although the transaction generated a one-time, non-cash GAAP charge of about $31 million in the second quarter.
• Negative Sentiment: Xeris plans to increase full-year SG&A by approximately $50 million and R&D by $25 million versus 2025, primarily to support RECORLEV expansion and the planned year-end Phase III start for XP-8121; management expects R&D spending to rise further as the trial ramps in 2027.

Presentation

[Operator]

Hello, everyone. Thank you for joining us, welcome to Xeris Biopharma second quarter earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Allison Wey, Senior Vice President of Investor Relations. Allison, please go ahead.

[Allison Wey, SVP of Investor Relations at Xeris Biopharma]

Thank you, Leah. Good morning, everyone, welcome to Xeris Biopharma second quarter financial results conference call. Early this morning, we issued a press release detailing our results. This press release can be found on our website. Joining me on today's call is John Shannon, our Chairman and Chief Executive Officer, Steve Pieper, our Chief Financial Officer. Following our prepared remarks, we'll open the call for your questions. Before we begin, I'd like to remind you that today's discussion will include forward-looking statements regarding Xeris' future expectations, plans, strategies, objectives, and financial performance. These forward-looking statements are based on management's current assumptions and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For a discussion of these risks and uncertainties, please refer to the risk factors described in our filings with the SEC.

[Allison Wey, SVP of Investor Relations at Xeris Biopharma]

Any forward-looking statements made on this call speak only as of today's date, except as required by law, the company undertakes no obligation to update or revise these statements. In addition, during today's call, we will reference certain financial measures that are presented on a non-GAAP basis. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in our earnings release. With that, I'll turn the call over to John.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Thank you, Allison, good morning, everyone. The second quarter was another record-breaking quarter for Xeris. One that demonstrated once again that the commercial momentum we have built is durable and accelerating. Total revenue reached $92 million, with net product revenue of $91 million, representing 34% growth year-over-year. RECORLEV led the way with 81% growth, KEVEYIS delivered another quarter of steady, reliable performance, Gvoke improved sequentially as we expected. The second quarter was more than a commercial story. It was a quarter of meaningful strategic progress. We made significant strides in strengthening our intellectual property portfolio across both our commercial franchise and our pipeline. Shortly after quarter end, we completed the full retirement of our convertible notes, simplifying our capital structure and eliminating nearly $3 million in annual interest expense.

[John Shannon, Chairman and CEO at Xeris Biopharma]

The progress we achieved reflects the breadth and defensibility of our science, the financial strength we have earned, and reinforces our confidence in the long-term value of what we're building. Taken together, a record commercial performance, a stronger IP portfolio, and an enhanced balance sheet. The second quarter reflects the disciplined compounding progress we are making to build a high-value biopharmaceutical company. In other words, we're executing and we're just getting started. Based on our strong first half performance and our conviction in the growth trajectory of this business, we are raising the bottom end of our full year 2026 total revenue guidance to $385 million-$390 million. This reflects our confidence in this team, the performance of our diversified commercial portfolio, and the long-term growth outlook of our business. With that, let's turn to our brands, beginning with RECORLEV.

[John Shannon, Chairman and CEO at Xeris Biopharma]

RECORLEV continues to demonstrate exceptional momentum, and in the second quarter, it delivered yet again. RECORLEV net revenue increased to nearly $57 million in the quarter, representing 81% growth year-over-year, an increase of over $25 million. Behind that number, RECORLEV had a record number of referrals, new patient starts, patients on therapy, new prescribers, and total prescribers. Quarter after quarter, RECORLEV has delivered sustained growth that speaks to the execution of our commercial team, and most importantly, the deepening confidence prescribers have in RECORLEV as their treatment of choice for endogenous Cushing's syndrome. We believe RECORLEV should be the standard of care, and we intend to build on that. Importantly, we are still in the early stages of realizing the benefits of the commercial expansion we completed in January. Throughout the second quarter, our focus was on training and deploying our expanded team.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Execution is tracking in line with our expectations. We are increasingly well-positioned to accelerate growth as these investments gain traction in the second half. Turning to Gvoke. After a slow start to the year, Gvoke rebounded nicely in the second quarter, delivering net revenue of approximately $23 million and prescription growth of 10% versus the first quarter. I am proud of the team's work to put Gvoke back into growth mode, and the sequential improvement gives us confidence that Gvoke is back on the right track. Looking ahead, the back-to-school season should provide its typical third quarter lift as families with children managing diabetes ensure they have a ready-to-use Gvoke on hand for the school year. The long-term opportunity for Gvoke remains unaltered. Our commitment to it is unwavering.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Of the 15 million people with diabetes who should have a potential life-saving product like the Gvoke HypoPen, only 1 million or so do. Closing that gap remains an important opportunity for us. More importantly, a meaningful way to improve patient outcomes. Finally, KEVEYIS. KEVEYIS delivered nearly $12 million in net revenue, once again demonstrating the remarkable durability of this brand in an ultra-rare market. Maintaining patients on therapy remains the ultimate proof point, and our results continue to reflect both the clinical value of KEVEYIS and the patient-centric support infrastructure we have built for the PPP community. Our commitment to this brand and this community couldn't be more evident than through our steadfast multi-year effort to secure important IP protection for KEVEYIS. On June 11, we received a notice of allowance from the U.S. Patent Office for a new patent covering KEVEYIS.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Once issued, it will provide renewed protection for KEVEYIS through at least 2039. With a clear line of sight to such extended protection and having evidenced such astounding durability during its period of non-exclusivity, we intend to invest incrementally in both KEVEYIS and the PPP community in order to expand efforts to identify and support even more patients in the future. Turning to our pipeline, and specifically XP-8121. The second quarter was a busy period for our program. During the quarter, we continued to build an even stronger intellectual property estate around this important product and our proprietary formulation technology. On July 28, we received our second U.S. patent covering XP-8121. Just one week earlier, we also received a notice of allowance for an additional patent application, which when issued, will be our third U.S. patent.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Our expanding intellectual property portfolio speaks to the depth of our innovation and the long-term defensibility of this product. Those achievements build on the significant progress we made during the second quarter. Our technical and clinical teams made great progress in advancing the program through critical milestones. Importantly, we finalized our clinical site selections, and those sites are busy preparing in advance of an expected phase III start by year-end. We also maintained a strong presence at key medical conferences throughout the quarter. The feedback we received from the endocrinology community has been exceptional, further reinforcing both our conviction in the significant unmet need in hypothyroidism and the multibillion-dollar commercial opportunity we have laid out. All of this momentum makes our planned XP-8121 program overview that much more exciting.

[John Shannon, Chairman and CEO at Xeris Biopharma]

On Wednesday, September 9, we will host a dedicated XP-8121 webinar, where you will hear directly from an important key opinion leader as well as members of our program team. We will walk you through the unmet medical need, the market opportunity, and our planned phase III program in detail, including trial design, primary and secondary endpoints, target patient population, as well as expected development and related regulatory timelines. We believe XP-8121 represents a significant advancement in addressing the real and persistent challenges of treating hypothyroidism, and we believe it has the potential to be a blockbuster. Before I turn the call over to Steve, I want to briefly recap the strong progress we are making against the three critical priorities we outlined in March and continue to keep in our focus. First, driving rapid revenue growth.

[John Shannon, Chairman and CEO at Xeris Biopharma]

We delivered 33% growth in the first half, and we are now guiding to full-year revenue growth of 33% at the midpoint. Our commercial business is growing fast. Second, advancing our pipeline. The XP-8121 program remains on track, and on September 9, we will provide the market with a comprehensive look at the program. We look forward to that conversation. Third, executing with discipline. The full retirement of our convertible notes completed in July is a direct expression of this priority in action. A proactive, planful step made possible by the ever-strengthening financial position of Xeris. With our sustained commercial momentum and disciplined execution against our strategic priorities, I couldn't be more excited about the company we're building. With that, I'll turn the call over to Steve.

[Steve Pieper, CFO at Xeris Biopharma]

Good morning, everyone. As John highlighted, our momentum from the first quarter carried into the second, reflecting solid execution and growing confidence in the performance of our business. Net product revenue of $91 million, up 34%, or over $23 million year-over-year is the headline for this quarter. This performance drove total revenue to $92.1 million, representing 29% year-over-year growth and reflects the sustained commercial momentum John just described. RECORLEV generated net revenue of $56.8 million, representing growth of 81% year-over-year, an increase of $25.3 million, reflecting continued expansion of our patient base. New patient starts continued at a strong pace, and the underlying commercial metrics all support momentum accelerating in the back half of the year, where we expect to see incremental contributions from our commercial expansion completed at the start of the year.

[Steve Pieper, CFO at Xeris Biopharma]

Gvoke net revenue of $22.5 million in the second quarter, up 8% sequentially, and was in line with our expectations. We expect Gvoke's performance to normalize and track more consistently with historical seasonal patterns in the second half of the year. KEVEYIS delivered another solid quarter, generating net revenue of $11.7 million, reflecting modest improvements in both net pricing and the number of patients on therapy compared to prior year. Gross margin for the second quarter was approximately 86%, an improvement of nearly 400 basis points compared to last year, driven by favorable product mix. Turning to operating expenses. R&D expenses totaled $10.7 million in the quarter, an increase of $2.6 million compared to prior year. This increase reflects continued investment, advancing XP-8121 toward phase III initiation planned for later this year.

[Steve Pieper, CFO at Xeris Biopharma]

SG&A expenses were $61 million for the second quarter, driven primarily by the full deployment of our expanded RECORLEV commercial team and patient support infrastructure. Adjusted EBITDA for the second quarter was $19.3 million, an improvement of $6.7 million versus the prior year, representing over 50% growth year-over-year, even as we made incremental commercial and R&D investments this quarter. I also want to take a moment to discuss our balance sheet, and specifically the full retirement of our 2028 convertible notes, because it will be visible in our GAAP results this quarter. In July, we completed the full retirement of our convertible notes, settled through a combination of cash and equity. As of July 15th, not a single convertible note remains outstanding.

[Steve Pieper, CFO at Xeris Biopharma]

The exchange agreement we signed on June 10th with certain holders of the convertible notes triggered a remeasurement of the convertible notes under GAAP, resulting in a one-time non-cash charge of approximately $31 million recognized in the second quarter. This charge does not impact Adjusted EBITDA, and there will be no additional income state charge related to these notes in Q3. The bottom line, we eliminated $34 million of debt, creating approximately $3 million in annual interest savings and a meaningfully cleaner balance sheet. Moving to our 2026 outlook. We are raising the bottom end of our full-year total revenue guidance and tightening the range to $385 million-$390 million.

[Steve Pieper, CFO at Xeris Biopharma]

This outlook reflects the strong performance we delivered in the first half of the year, as well as our confidence that this momentum will continue as our expanded RECORLEV commercial team moves from build to yield. We continue to see Gvoke rebound from its slow start this year. On SG&A, at the start of the year, we outlined an expected full-year increase of approximately $45 million versus 2025. Based on our strong first half results and current outlook, we are making further incremental investments in our commercial enterprise, resulting in a full-year SG&A increase of approximately $50 million. We see meaningful opportunities across our portfolio and remain committed to investing where we can create sustainable long-term value. Let me summarize our full-year 2026 guidance. Total revenue is now expected to be between $385 million-$390 million.

[Steve Pieper, CFO at Xeris Biopharma]

Gross margin remains consistent with our prior expectation of a modest improvement compared to 2025. R&D remains consistent with prior expectations. We expect an increase of approximately $25 million compared to 2025. SG&A is now expected to increase an additional $5 million versus our prior guidance of a $45 million increase compared to last year. Lastly, we continue to expect Adjusted EBITDA to increase on an absolute dollars basis compared to 2025. I want to close with this. Our business continues to strengthen, and with it, our financial condition. We remain committed to the priorities that John outlined. We are confident that we can maintain a path toward a continuing expansion of Adjusted EBITDA, even as we make incremental investments to support a rapid growth of our enterprise. With that, I'll hand the call over to the operator for Q&A.

[Operator]

We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Dennis Ding with Jefferies. Your line is open. Please go ahead.

[Georgia Bank, Analyst at Jefferies]

Hi. Thank you for taking our questions. This is Georgia Bank on the line for Dennis Ding. I had a question about the raising the low end of your guidance. I see that you raised it again to $385 million but held the $390 million top. Given RECORLEV momentum, you said the expansion benefit is still mostly ahead in the second half, I guess what's capping the ceiling? Then on the expansion, you noted that it's tracking in line.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Could you repeat? Operator or somebody, we cannot hear this question at all.

[Georgia Bank, Analyst at Jefferies]

Are you able to hear me now?

[John Shannon, Chairman and CEO at Xeris Biopharma]

Yes.

[Steve Pieper, CFO at Xeris Biopharma]

Much better. Thank you, Georgia.

[Georgia Bank, Analyst at Jefferies]

Oh, sorry about that. Okay. On the guidance raise, you raised the low end again in Q2 to $385 million, but held the top at $390 million. Given RECORLEV momentum and you've said the expansion benefit is still mostly ahead in the second half, I guess, what's capping the ceiling there? On that sales expansion, you noted that the execution is tracking in line and still early. Maybe can you unpack what in line looks like underneath? Which leading indicators, referrals, new starts, et cetera, that you're watching to confirm that the H2 setup is materializing? Thank you.

[Steve Pieper, CFO at Xeris Biopharma]

Thanks for the questions, Georgia. On the guidance, just another great quarter gave us the confidence to raise the bottom end. We've tightened it to a range of $5 million at this point, and we're confident that we're going to hit that. It still reflects some significant growth in the back half of the year. Again, that points to the contributions we're expecting from the RECORLEV commercial expansion, as well as growth from Gvoke in the back half of the year. Really confident in the guidance that we provided, and it reflects over 30% revenue growth. On the second question, I think the second question was just around RECORLEV and what we're seeing. I think we're seeing early signs of contributions from that expansion. We saw that in the second quarter.

[Steve Pieper, CFO at Xeris Biopharma]

Again, this is our third time doing this expansion, the contributions we're seeing are tracking exactly in line with our expectations. We see it continuing into the third quarter, which gives us all the confidence in the world to meet the revenue guidance that we outlined.

[Georgia Bank, Analyst at Jefferies]

Great. Thank you so much.

[Operator]

Your next question comes from the line of Brandon Folkes with H.C. Wainwright. Your line is open. Please go ahead.

[Brandon Folkes, Analyst at H.C. Wainwright]

Hi. Thanks for taking my questions, and congratulations on the quarter. Can you just further detail the second half of the year RECORLEV growth drivers? Just how much is driven by prior territories versus sort of the new sales reps? Any way to just characterize where those new reps are in terms of productivity? Any other tailwinds you're expecting in the second half of the year, whether it be average dose, persistency, just how those sorts of metrics are tracking. Thank you.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Yeah, Brandon. Thanks for the question. In terms of the back half of the year, we made this expansion to increase not only the breadth of our calls, so we expanded our targets, but the depth within our calls. It's going to come across existing prescribers and new prescribers, and it's going to come across all territories, new and existing. We see it coming across everywhere, and that's kind of how we set up the expansion. In terms of changes to all of anything like dosing or anything else like that, with the amount of expansion we're going through and the number of new starts, we are watching all those metrics, but we don't expect them to materially change in this time and period of growth at these rates. We continue to monitor those.

[John Shannon, Chairman and CEO at Xeris Biopharma]

We track them. All of those trends are tracking as we expected and within line. Until they become more material, we really won't change our expectations around some of those things.

[Brandon Folkes, Analyst at H.C. Wainwright]

Great. Thanks very much. Maybe just one on XP-8121. Can you just elaborate on what still needs to be done before the phase III initiation? Do you expect all of that to be done by the time you host the webinar? If not, how should we think about timing for what needs to be done? Thank you.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Yeah. I've said this before, is we're not going to start that phase III trial till we have the go-to-market commercial presentation ready to go into that phase III trial. That's what we're doing, is we're going through all of the work it takes to be able to have the commercial-ready product, device, formulation, everything. We'll be in a great position by the webinar to tell you where exactly all those timelines are. I will tell you they're all on track. They're all tracking to what we said back last June in terms of start of the trial, data, regulatory submissions, and approvals. We're still on track for all that for a 2030 launch.

[Brandon Folkes, Analyst at H.C. Wainwright]

Great. Thank you very much.

[Operator]

Your next question comes from the line of David Amsellem with Piper Sandler. Your line is open. Please go ahead.

[David Amsellem, Analyst at Piper Sandler]

Hey, thanks. Just a couple from me. First, on RECORLEV. Can you talk about prescriber breadth and depth? Sorry if I missed this, but can you give color on how many prescribers there are and repeat prescribers? That's number one. Number two is on XP-8121. Can you talk to how long you think it's going to take to enroll the phase III, and do you think results could be at 2028 event? Lastly, business development M&A. Just given the commercial infrastructure in place, how aggressive are you going to be in terms of looking for assets where you can leverage that infrastructure? Thanks.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Okay. Start with RECORLEV. What we have said is we have 12,000 targets that we basically aligned our sales efforts against. What I can tell you is that those are new and existing prescribers, and they're all good targets for cortisol normalization and hypercortisolemia and Cushing's syndrome. We are targeting those. We are successfully covering them and it really goes to us having a record quarter of new prescribers as well as existing prescribers. All of those metrics are growing and growing at the pace that we expected in our guidance. We continue to see that for the balance of the year and going forward as we go deeper and deeper in those accounts. The next question was on-

[Steve Pieper, CFO at Xeris Biopharma]

XP-8121

[John Shannon, Chairman and CEO at Xeris Biopharma]

XP-8121, I think it was related to-

[Steve Pieper, CFO at Xeris Biopharma]

Data by 2028

[John Shannon, Chairman and CEO at Xeris Biopharma]

Data by 2028. We'll be able to give you a lot more clarity around that whole clinical program and timing on September 9. You'll be able to see all that. The clinical and regulatory timelines will be really, really clear at that point.

[Steve Pieper, CFO at Xeris Biopharma]

Business development.

[John Shannon, Chairman and CEO at Xeris Biopharma]

As business development, we've said this before, we're focused on driving top-line growth and making investments that'll continue to drive more and more growth within our company. From a business development standpoint and with our financial position where it's at, we're looking at more and more opportunities that can deliver growth between now and even before the launch of XP-8121 in 2030. Those are all the kinds of things that we would focus on, especially ones that leverage our endocrinology footprint and/or our rare product capabilities that we have within Xeris.

[David Amsellem, Analyst at Piper Sandler]

Thank you.

[Operator]

Your next question comes from the line of Chase Knickerbocker with Craig-Hallum. Your line is open. Please go ahead.

[Analyst at Craig-Hallum]

Morning, everyone. Thanks for taking the questions. This is Jake on for Chase. First, just on RECORLEV. Was hoping that you could characterize the growth in the market we are seeing, as you all do have better data than us. How many patients do you think are currently on therapy for hypercortisolism, and what share of new patient starts do you think you are capturing?

[John Shannon, Chairman and CEO at Xeris Biopharma]

Wow. We haven't really dug into that in the past. It's really hard to triangulate that because we don't have good external data sources that could tie back to that. What I will tell you is that more than 60% of our patients are new to therapy. First time on drug. I would say that points to a couple things. One is the majority of our patients are market growth, and us capturing a significant share of those. The fact that the dynamics in this marketplace with everybody growing in it, says that there's still a lot of opportunity for market growth. Having said that, there doesn't seem to be an increase in switching. We're all getting and driving more screening, more detection, and more growth in the marketplace. Really positioning our product, in a sense, to win those new patients.

[Analyst at Craig-Hallum]

Thanks for that color. Then second, how do you think we should think about the new KEVEYIS patent? Obviously, this represents a barrier to any potential future generic. Should we also be thinking about this as relevant to the current generic that's on the market right now?

[John Shannon, Chairman and CEO at Xeris Biopharma]

Well, I think the way we think about it is with this kind of protection, we for sure are really confident in investing more, in finding more patients and getting them on therapy. From that perspective, we have maintained this brand for the last year and a half based on driving new patients in a space with a non-exclusive situation. We know we can grow it in a non-exclusive situation, and it only gets better if it somehow becomes more exclusive later on. For now, we're excited in and of itself that we can continue to grow this and really drive some growth in the future.

[Analyst at Craig-Hallum]

Great. Thanks for that commentary.

[Operator]

Your next question comes from the line of Roanna Ruiz with Leerink Partners. Your line is open. Please go ahead.

[Analyst at Leerink Partners]

Hey, guys. You have Ryan on for Roanna. Thanks for taking our question, and congrats on the quarter. Maybe just two from us. Can you help frame how discontinuation rates are looking for RECORLEV? Are you seeing any signs of patients reentering the funnel that may have previously dropped off therapy? Then maybe as you think about peak sales for RECORLEV, what are the key levers here that could potentially accelerate the timeline to that peak sales of $1 billion? Thank you.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Discontinuation rates have been pretty steady and stable. We don't really see any movement in that. We do see small amounts of patients that go off and come back and things like that. Again, none of those trends have really changed, but they've been pretty consistent. In terms of peak, I think this is an important point for everybody, is this is a market where it takes a lot of effort. These are complex patients that need to be diagnosed, screened, and treated. It's more of a scalable kind of process to get these patients on drug and get them stabilized on drug, get them titrated, and keep them on drug. It's one of those areas where continued investment will be required, both from a commercial standpoint, but also from a data generation and/or data dissemination standpoint.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Those are critical aspects to really sustaining the long-term growth of this category.

[Operator]

Your next question comes from the line of Leland Gershell with Oppenheimer. Your line is open. Please go ahead.

[Analyst at Oppenheimer]

Hi, this is Tracy on for Leland. Congrats on the quarter. Thanks for taking our question. Just one from us. Can you give us a sense of how to think about the XP-8121 phase III program's impact on OpEx going forward?

[Steve Pieper, CFO at Xeris Biopharma]

Yeah. Tracy, thanks for the question. I'll take this one. We guided to an increase in R&D this year of $25 million. That increase is almost entirely for XP-8121 and starting the trial later this year. It's everything that goes into that. As the trial unfolds next year, I think it's reasonable to expect a similar increase in R&D spend as the trial ramps up. We'll lay that out in terms of our guidance early next year, specifically. You'll be able to understand exactly how that kind of tracks out with everything that we're laying out in terms of the program in September at the webinar.

[Analyst at Oppenheimer]

Sounds good. Thank you for the color.

[Steve Pieper, CFO at Xeris Biopharma]

Sure.

[Operator]

There are no further questions at this time. I will now turn the call back to John Shannon for closing remarks.

[John Shannon, Chairman and CEO at Xeris Biopharma]

Thanks, everyone. As you just heard, the second quarter marked another remarkable period for Xeris, underscoring sustained commercial momentum and disciplined execution against our strategic priorities. RECORLEV is growing and driving the business. Gvoke is back on track, and KEVEYIS delivered a landmark IP win. At the same time, we continue to advance the next phase of our growth story. Our XP-8121 program is progressing well, and with phase III initiation expected before year-end, we believe we're approaching an important inflection point for the program. Our XP-8121 program overview on September 9th will provide investors with a closer look at what we are building. In closing, we enter the second half of 2026 with strong commercial momentum, a strengthened financial foundation, and a pipeline that positions us well for continued growth. Thank you for joining us today, and thank you for your continued support and interest in Xeris Biopharma.

[Operator]

This concludes today's call. Thank you for attending. You may now disconnect

Participants

Executives

• Allison Wey, SVP of Investor Relations
• John Shannon, Chairman and CEO
• Steve Pieper, CFO

Analysts

• Georgia Bank, Analyst at Jefferies
• Brandon Folkes, Analyst at H.C. Wainwright
• David Amsellem, Analyst at Piper Sandler
• Analyst at Craig-Hallum
• Analyst at Leerink Partners
• Analyst at Oppenheimer