10-K annual report · filed Feb 13, 2026

Vertex Pharmaceuticals (VRTX) FY2025 10-K Annual Report

Short answer

Vertex Pharmaceuticals (VRTX) filed its fiscal 2025 10-K annual report with the SEC on Feb 13, 2026. It reported revenue of $12.0B (+8.9% year over year) and net income of $4.0B.

  • Top risk flagged: Regulatory risk: Impact of Colorado PDAB affordability review on TRIKAFTA pricing with potential upper payment limits under the 2023 state program

FY2025 key financial metrics · XBRL

Revenue
$12.0B
+8.9% YoY
Net income
$4.0B
+838.1% YoY
Operating margin
34.8%
+36.9 pp YoY
EPS (diluted)
$15.32
+836.5% YoY
ROE
21.2%
+24.4 pp YoY
Operating cash flow
$3.6B
+837.2% YoY

Source: XBRL data from the Vertex Pharmaceuticals (VRTX) FY2025 10-K on SEC EDGAR. USD.

Vertex Pharmaceuticals FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Core business model: Biopharmaceutical company focused on developing and commercializing transformative medicines
  • Emphasis on enhanced cybersecurity governance with dedicated CISO and quarterly Board updates
  • Cybersecurity led by CISO with 35+ years’ experience, including federal advisory roles, highlighting heightened focus on cyber risk
  • Cybersecurity team holding top certifications conducts regular vulnerability scans, penetration tests, and threat intelligence analysis
  • Cybersecurity risk oversight integrated into executive management reporting chain up to CEO, reflecting strategic prioritization

Management Discussion & Analysis

  • Revenue $12.0B in 2025, up 9% YoY from $11.0B in 2024; TRIKAFTA/KAFTRIO sales $10.3B (1% increase), ALYFTREK $837.8M launched in 2025
  • Operating margin approx. 34.7% in 2025 vs 13.8% cost of sales (13.8% of net product revenues), slight improvement from 13.9% in 2024; R&D + SG&A expenses $5.7B up from $5.1B
  • Best performing segment: TRIKAFTA/KAFTRIO revenues $10.31B (+1%); Worst: Newly launched CASGEVY $115.8M and JOURNAVX $59.6M, small but growing
  • Cash, cash equivalents, marketable securities increased to $12.3B in 2025 from $11.2B in 2024; repurchased shares partially offset; R&D expenses $3.91B (+8%), cost of sales $1.65B (+8%)
  • 2026 Outlook: Continued CF revenue growth led by ALYFTREK globally, increased CASGEVY and JOURNAVX revenues; pipeline regulatory submissions expected H1 2026; watch ongoing royalty dispute on ALYFTREK royalty rate

Risk Factors

  • Regulatory risk: Impact of Colorado PDAB affordability review on TRIKAFTA pricing with potential upper payment limits under the 2023 state program
  • Macroeconomic risk: Ex-U.S. reimbursement delays and government cost-containment efforts impacting pricing and revenue in various international markets
  • Operational risk: CASGEVY manufacturing cost significantly higher as a percentage of revenue versus CF medicines, with complex cell collection and administration processes
  • Competitive risk: Pressure from lower-cost and advanced competitors in acute and peripheral neuropathic pain markets threatening uptake of JOURNAVX
  • Financial risk: Concentrated revenue dependence on CF medicines, exposing business to risks from manufacturing, safety, market acceptance, and pricing challenges

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