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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