Stock Analysis on Net
Stock Analysis on Net
Stock Analysis on Net without ads!

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Common-Size Income Statement
Quarterly Data

Vertex Pharmaceuticals Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Product revenues, net 100.00 100.00 100.00 100.00 99.30 99.64 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.94
Other revenues 0.00 0.00 0.00 0.00 0.70 0.36 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06
Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales -14.67 -13.15 -14.61 -13.48 -13.75 -13.10 -14.54 -14.16 -14.06 -12.73 -14.62 -12.83 -12.38 -11.24 -12.30 -12.40 -11.92 -11.72 -11.94 -11.92 -12.71 -11.15
Gross profit 85.33% 86.85% 85.39% 86.52% 86.25% 86.90% 85.46% 85.84% 85.94% 87.27% 85.38% 87.17% 87.62% 88.76% 87.70% 87.60% 88.08% 88.28% 88.06% 88.08% 87.29% 88.85%
Research and development expenses -29.81 -32.19 -30.52 -31.78 -33.00 -35.37 -34.30 -31.60 -36.54 -29.33 -32.75 -32.62 -31.51 -31.27 -30.14 -27.63 -27.32 -28.66 -27.40 -23.54 -25.02 -26.35
Acquired in-process research and development expenses -0.64 -0.02 -1.77 -1.77 -0.07 -0.71 -3.00 -0.54 -168.17 -2.85 -0.71 -2.08 -4.43 -14.62 -0.98 -1.24 -2.82 -0.10 -6.10 -1.35 -53.44 -0.10
Selling, general and administrative expenses -17.46 -16.53 -15.27 -14.47 -14.32 -14.31 -12.97 -13.41 -14.07 -12.74 -14.66 -10.62 -10.53 -10.15 -11.61 -10.57 -9.80 -10.26 -12.31 -9.99 -10.85 -11.14
Intangible asset impairment charge 0.00 0.00 0.00 0.00 0.00 -13.68 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Change in fair value of contingent consideration -0.01 -0.01 -0.03 0.06 -0.03 -0.08 0.04 -0.01 -0.02 0.00 2.00 -0.05 0.02 0.08 -0.08 0.11 2.24 0.36 0.10 -0.06 -0.09 0.23
Income (loss) from operations 37.40% 38.10% 37.80% 38.56% 38.83% 22.75% 35.23% 40.27% -132.85% 42.35% 39.26% 41.80% 41.17% 32.80% 44.88% 48.27% 50.37% 49.63% 42.35% 53.15% -2.12% 51.49%
Interest income 3.62 3.84 3.82 4.09 4.13 4.36 4.40 4.77 5.92 6.73 7.13 6.76 5.80 5.16 3.73 1.98 0.49 0.08 0.06 0.06 0.06 0.08
Interest expense 0.00 0.00 -0.10 -0.11 -0.12 -0.11 -0.10 -0.27 -0.37 -0.39 -0.42 -0.44 -0.45 -0.48 -0.50 -0.59 -0.66 -0.71 -0.73 -0.77 -0.86 -0.91
Other income (expense), net 0.73 0.00 0.20 -0.32 0.45 -0.64 -0.51 -0.61 -0.87 -1.16 -0.39 -0.64 0.06 0.05 -1.35 0.74 -3.56 -3.47 0.34 2.14 0.45 -3.05
Income (loss) before (provision for) benefit from income taxes 41.75% 41.95% 41.72% 42.22% 43.28% 26.37% 39.03% 44.16% -128.18% 47.54% 45.58% 47.48% 46.59% 37.54% 46.76% 50.40% 46.64% 45.52% 42.02% 54.57% -2.47% 47.61%
(Provision for) benefit from income taxes -8.76 -7.42 -4.39 -7.02 -8.44 -3.04 -7.68 -6.45 -7.65 -6.67 -7.10 -5.79 -9.86 -8.07 -11.20 -10.53 -9.74 -9.19 -4.87 -11.63 6.20 -9.73
Net income (loss) 32.99% 34.53% 37.34% 35.20% 34.84% 23.33% 31.35% 37.71% -135.83% 40.87% 38.48% 41.69% 36.73% 29.47% 35.56% 39.86% 36.90% 36.33% 37.16% 42.94% 3.73% 37.88%

Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The financial performance over the observed period is characterized by high gross margins and substantial investment in research and development, though a gradual compression in net profitability is evident toward the end of the period. Revenue streams remain almost exclusively dependent on product sales, with other revenue sources appearing only sporadically and contributing minimally to the overall top line.

Gross Profitability and Cost of Sales
Gross profit margins have remained high but exhibit a gradual downward trend. Beginning at approximately 88.85% in March 2021, margins declined to 85.33% by June 2026. This compression is directly attributable to a steady increase in the cost of sales, which rose from roughly 11.15% to 14.67% of revenues over the same timeframe.
Research and Development (R&D) Expenditures
Investment in R&D represents a significant and growing portion of the revenue mix. Core R&D expenses rose from 26.35% in early 2021 to peak at 36.54% in June 2024, eventually stabilizing around 29.81% by June 2026. Additionally, acquired in-process R&D expenses introduced extreme volatility into the operating results, most notably in June 2021 (-53.44%) and June 2024 (-168.17%), indicating periodic large-scale strategic acquisitions or write-offs.
Operating Expenses and Administrative Scaling
Selling, general, and administrative (SG&A) expenses demonstrate a consistent upward trajectory. These costs grew from 11.14% of revenues in March 2021 to 17.46% by June 2026, suggesting an increase in the organizational cost of commercialization or administrative overhead as the company scaled.
Operating and Net Income Trends
Operating income typically remains robust, generally fluctuating between 30% and 50% of revenues, excluding the outlier in June 2024 where a massive IPR&D charge resulted in an operating loss of 132.85%. Net income margins followed a similar pattern of stability, though a slight decline is observed from the 37-42% range in 2021 to approximately 33% by June 2026.
Non-Operating Items
Interest income showed a marked increase starting in 2022, peaking at 7.13% of revenues in December 2023 before moderating to 3.62% by June 2026. This suggests a period of significant cash accumulation or higher yield on cash equivalents. Conversely, interest expenses as a percentage of revenue have steadily declined, falling from 0.91% in March 2021 to negligible levels by late 2025.

AI Ask an analyst for more