v3.26.1
Revenues
 3 Months Ended
Apr. 03, 2026
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues consisted of the following (in thousands):
Three Months Ended March 31,
20262025
Product revenues:
Gross product revenues$795,354 $721,711 
Discounts and allowances(240,377)(208,428)
Net product revenues554,977 513,283 
Collaboration revenues:
License revenues56,948 42,480 
Collaboration services revenues(1,113)(316)
Collaboration revenues
55,835 42,164 
Total revenues$610,812 $555,447 
The percentage of total revenues by customer who individually accounted for 10% or more of our total revenues were as follows:
Three Months Ended March 31,
20262025
Affiliates of Cencora, Inc.
22%23%
Affiliates of McKesson Corporation18%18%
Affiliates of CVS Health Corporation16%14%
Accredo Health, Incorporated10%12%
Affiliates of Optum Specialty Pharmacy*10%
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(*) Represents less than 10% of our total revenues in the applicable period.
The percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
March 31, 2026December 31, 2025
Affiliates of Cencora, Inc.25%23%
Affiliates of McKesson Corporation23%25%
Ipsen Pharma SAS15%19%
Affiliates of CVS Health Corporation13%13%
Cardinal Health, Inc.11%12%
Total revenues by geographic region were as follows (in thousands):
Three Months Ended March 31,
20262025
U.S.$558,546 $517,184 
Europe39,568 32,706 
Japan12,698 5,557 
Total revenues$610,812 $555,447 
Total revenues include net product revenues attributed to geographic regions based on the ship-to location and license and collaboration services revenues attributed to geographic regions based on the location of our collaboration partners’ headquarters.
Net product revenues and license revenues are recorded in accordance with ASC Topic 606, Revenue from Contracts with Customers (Topic 606). License revenues include the recognition of the portion of milestone payments allocated to the transfer of intellectual property licenses for which it had become probable in the current period that the milestone would be achieved and a significant reversal of revenues would not occur, as well as royalty revenues and our share of profits under our collaboration agreement with Genentech. Collaboration services revenues are recorded in accordance with ASC Topic 808, Collaborative Arrangements. Collaboration services revenues include the recognition of deferred revenues for the portion of upfront and milestone payments allocated to our research and development services performance obligations, development cost reimbursements earned under our collaboration agreements, product supply revenues, net of product supply costs and the royalties we paid on sales of products containing cabozantinib by our collaboration partners. License revenues and collaboration services revenues are presented in collaboration revenues in the accompanying Condensed Consolidated Statements of Income.
Net product revenues by product were as follows (in thousands):
Three Months Ended March 31,
20262025
CABOMETYX$552,773 $510,872 
COMETRIQ 2,204 2,411 
Net product revenues$554,977 $513,283 
Product Sales Discounts and Allowances
The activities and ending reserve balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands):
Chargebacks, Discounts for Prompt Payment and Other
Other Customer Credits/Fees and Co-pay Assistance
Rebates
Total
Balance at December 31, 2025
$34,223 $23,612 $36,284 $94,119 
Provision related to sales made in:
Current period155,874 21,319 63,447 240,640 
Prior periods614 (294)(583)(263)
Payments and customer credits issued(154,966)(23,710)(54,183)(232,859)
Balance at March 31, 2026
$35,745 $20,927 $44,965 $101,637 
The allowance for chargebacks, discounts for prompt payment and other are recorded as a reduction of trade receivables, net, and the remaining reserves are recorded as rebates and fees due to customers in the accompanying Condensed Consolidated Balance Sheets.
Contract Assets and Liabilities
We receive payments from our collaboration partners based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We may also recognize revenue in advance of the contractual billing schedule and such amounts are recorded as a contract asset when recognized. We may be required to defer recognition of revenue for upfront and milestone payments until we perform our obligations under these arrangements, and such amounts are recorded as deferred revenue upon receipt or when due. For those contracts that have multiple performance obligations, contract assets and liabilities are reported on a net basis at the contract level. There were no contract assets as of March 31, 2026 and December 31, 2025. Contract liabilities are primarily related to deferred revenues from Ipsen Pharma SAS (Ipsen) and Takeda Pharmaceutical Company Limited (Takeda).
Contract liabilities were as follows (in thousands):
March 31, 2026December 31, 2025
Contract liabilities:
Current portion(1)
$1,154 $1,115 
Non-current portion(2)
5,164 6,112 
Total contract liabilities$6,318 $7,227 
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(1) Presented in other current liabilities in the accompanying Condensed Consolidated Balance Sheets.
(2) Presented in other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets.
During the three months ended March 31, 2026 and 2025, we recognized $1.1 million and $1.3 million, respectively, in revenues that were included in the beginning deferred revenues balance for those periods.
During the three months ended March 31, 2026 and 2025, we recognized $59.9 million and $42.5 million, respectively, in revenues for performance obligations satisfied in previous periods. Such revenues were primarily related to
royalty payments allocated to our license performance obligations for our collaborations with Ipsen and Takeda and the recognition of revenues for the achievement of milestones, including a commercial milestone achieved during the first quarter of 2026.
As of March 31, 2026, $19.1 million of the combined transaction prices for our Ipsen and Takeda collaborations were allocated to research and development services performance obligations that had not yet been satisfied. See “Note 4. Collaboration Agreements and Business Development Activities” of the “Notes to Consolidated Financial Statements” included in Part II, Item 8 of our Fiscal 2025 Form 10-K for additional information about the expected timing to satisfy these performance obligations.