Xeris Biopharma Holdings, Inc.

Good morning and welcome to the Xeris Biopharma fourth quarter and full year 2024 financial results. My name is Harry and I'll be your operator today. All lines are currently in listen-only mode and there will be an opportunity for Q&A after management's prepared remarks. If you would like to enter the queue for questions, please dial star followed by one on your telephone keypad. I would now like to hand the call over to Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Thank you. You may proceed.

Thank you, Harry. Good morning, everyone. We appreciate you joining our call today. I'm joined by John Shannon, our CEO, and Steve Piper, our CFO. This morning, we issued a press release with our detailed results, which can be found on our website. After our prepared remarks, we'll open the lines of questions. Before we begin, I'd like to remind you that this call will contain forward-looking statements concerning the company's future expectations, plans, prospects, and financial performance. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. For more information on our risks, please refer to our earnings release and risk factors included in our SEC file. Any forward-looking statements in this call represent our views only as to the date of this call, and subject to applicable laws, we can claim any obligation to update such statements. Please note, some metrics we will discuss today are presented in a non-GAAP basis. We've reconciled the comparable GAAP and non-GAAP figures in our earnings report. Let me pass the call over to John for opening remarks.

Thanks, Alison, and good morning, everyone. 2024 was an unprecedented year of exceptional commercial execution, focused pipeline development, and disciplined capital management. I want to thank our employees, the healthcare community, and the patients we serve for helping us to meet or exceed all of our goals consistent with our journey to become a fast-growing, self-sustaining biopharmaceutical company. Our focus, execution, and performance in 2024 has positioned Xeris perfectly for what I will call a transformational year in 2025. Let me start with the highlights for 2024. I will cover the full year results at a high level And Steve will provide more detail on Q4 and full year in his remarks. I'm proud to report that we exceeded our full year guidance with total revenue of over $203 million, growing 24% versus last year, led by strong demand for Recor11 GVOC and continuing durability of the Coveas brand. Across all three products, the commercial team continued to execute our plans. resulting in 28% product revenue growth for the full year 2024 versus 2023. Looking specifically at each of our products, let's start with RecorLab, which is rapidly becoming our flagship brand. We saw a record number of referrals and new patient starts, especially in the back half of the year, representing more than 64 million in total revenue in 2024, an impressive 118% growth versus 23. Our focused and targeted investments in Recorlove are paying off, and we see this momentum continuing as we enter 2025. Turning now to GVOC. What a great year. This product continues to deliver steady, predictable growth. On a full year basis, GVOC achieved nearly $83 million in revenue, an increase of 24% versus 2023. We saw the same increase in prescriptions, totaling $265,000, coming from an increase in new prescribers as well as an increasing number of repeat prescribers. Next is Caveus. The durability of this brand continues to impress. It maintains strong support in the medical and patient community, resulting in continued dedication to the brand. Caveus ended the year with approximately $50 million in revenue for the full year. Although revenues declined 13% on a full year basis, We ended the year with approximately the same number of patients on therapy as we started with. We achieved this principally by continuing to find new PPP patients and support their journey to brand. In 2024, our partnership revenue held steady with approximately 6 million in other revenue as we continue to successfully deliver for our technology partners. Moving on to our pipeline, specifically XP8121. our Phase III once-weekly sub-Q product for hypothyroidism. In 2024, we successfully completed our Phase II study for XP8121 and generated the data we needed to progress into Phase III. In preparation for Phase III, we advanced the development of our final drug formulation and device design and had ongoing discussions with the agency to ensure alignment on critical aspects of the clinical study and a path to an eventual regulatory approval. As I move on to 2025, I want to reiterate that we remain focused on the three strategic priorities I outlined back in August when I became CEO. As a reminder, those are, one, we will drive rapid and sustained growth of our commercial products. Two, we will remain financially disciplined, maintaining a healthy balance sheet and funding our growth opportunities, while importantly, not diluting shareholders. And finally, we will enhance our communications and transparency with you, our stakeholders. So with that as a backdrop, let's talk about 2025. Clearly, our Xeros business has reached a whole new level of growth and momentum. As such, I'm excited to share that we are guiding total company revenue between $255 and $275 million in 2025. representing more than 30% year-over-year growth at the midpoint. Let me repeat that. That's more than 30% year-over-year growth at the midpoint. Also in our press release for the first time, we reported adjusted EBITDA, which turned positive in the fourth quarter and will continue to be positive going forward. With our exceptional top-line revenue growth, attractive and improving margin profile, and planned investments to both drive our revenue growth and develop XP8121, we believe adjusted EBITDA is the right metric to demonstrate we are a thriving commercial biopharmaceutical company capable of fueling its own growth. The focus and efforts that will enable such a transformative 2025 are fundamentally the same things that contributed to our exceptional growth in the second half of 2024, starting with Recorla. Recorlib is emerging as the right product at the right time with what we believe is a best-in-class profile to safely and effectively normalize cortisol levels in the treatment of endogenous hypercortisolemia in adult patients with Cushing syndrome. The hypercortisolemia marketplace is expanding rapidly in light of new evidence that sustained high levels of cortisol could be a factor in stubborn forms of many chronic medical conditions, including diabetes and cardiovascular disease. As such, more and more people are being screened, tested, and diagnosed with hypercortisolemia and ultimately treated. As a reminder, we shared our view of this emerging opportunity last year and rapidly increased our investments in our sales and patient support organizations by 50%. We've already begun to see the impact of these investments and expect that they should fuel continuing growth for the foreseeable future. Moving to GVOC. Of the 15 million people on insulin or sulfonylureas, we estimate that only about 1 million have a prescription for a life-saving therapy such as GVOC hypopat. We continue to chip away at the total addressable patient population of 14 million people still unprotected. Our GVOC sales team is working every day on behalf of these patients who, based on the medical guidelines, should be protected but are not. Specifically, our team, the GVOC team, is focused on helping physicians to understand and become more compliant with the new medical guidelines. In January, we announced a multi-year strategic partnership with ADA to reinforce the importance of prescribing a ready-to-use glucagon, such as GVOC Hypopent, for those at high risk for hypoglycemia. With such a large untapped market in GVOC's patent protection to 2036, we expect GVOC to steadily grow for many years to come. On to Caveas. The durability of this brand remains impressive, and we expect that durability to continue into 2025. We plan to continue our efforts to find new PPP patients every week and get them on Caveas so they can enjoy the benefits of therapy. Just a brief mention of our technology partner programs. We remain committed to our technology platform and are actively working on current programs and seeking new partnerships. We continue to deliver for our partners meeting their technical and target product profile requirements. We are confident that we will continue to deliver in this manner for our current and future partners. However, because this area of our business is largely dependent on each partner's business objectives, we'll only provide updates as they advance and become more meaningful contributors to our business results. In 2025, we see our partner revenue continuing to deliver results similar to the past couple of years. Moving on to XP8121. As we stated before, we are really excited about this product and the unmet medical need it can address in the hypothyroidism market. What is interesting about hypothyroidism treatment is that there has been no real innovation of research for decades in this metabolic condition affecting approximately 20 million people in the US. We estimate that approximately 20% of these patients do not consistently meet their clinical goal of normalizing thyroid hormone levels. And they cannot reach their goals with oral forms of therapy for a multitude of factors, including certain GI conditions, like celiac disease, to taking common medications, such as proton pump inhibitors, all of which affect oral bioavailability. If approved, XP8121 will be the first, and perhaps only, self-administered therapy that isn't affected by these challenges. We are taking a very planful development approach for XP8121. We continue to have favorable engagement with the FDA and expect to provide a fulsome update mid-year. This update will further highlight the unmet medical need, the market opportunity, the phase three study design, as well as projected timing of our development program. Keeping in mind that our development of XP8121 is enabled by our very own proven Xerasol technology, additionally, Our commercial capability is highly leverageable, including our extensive endocrinology sales footprint and our proven patient, payer, and channel support capabilities. With that, I'm going to hand it over to Steve to review our financial results for the quarter and year and provide more details on our 2025 guidance.

Thanks, John, and good morning, everyone. Our fourth quarter 2024 performance marked the end of a very successful year. And I can say that Xeris has never been financially stronger. This quarter, we ended with net product revenue of $57 million and total revenue of $60.1 million, increasing by approximately 34% and 35% compared to prior year. This is the 13th consecutive quarter with greater than 20% product revenue growth. On a full year basis, net product revenue was $196.6 million and total revenue was $203.1 million, increasing by approximately 28% and 24% compared to prior year. Recall of net revenue in the fourth quarter was $22.6 million, a 131% increase compared to the same period in 2023. This growth was driven by the average number of patients on Recoralev increasing 123% from the same period in 2023. For the year ending 2024, Recoralev net revenue was $64.3 million, a 118% increase compared to 2023. On a sequential basis, Recoralev net revenue increased by a record $5 million in the fourth quarter. The strategic investments we made in the RecoraLab Commercial Organization in mid-2024, coupled with favorable and evolving market dynamics, helped drive the accelerated revenue gains we saw in the back half of 2024. GVOC net revenue was $23.3 million for the quarter and $82.8 million for the year. representing a 25% and 24% increase compared to the same periods last year. This growth was primarily driven by an increase in total GVOC prescriptions, growing 18% and 23% compared to prior year. Cabeas net revenue for the quarter and year-to-date was $11.1 million and $49.5 million. In the fourth quarter, we saw average patients on Cabeas hold relatively steady compared to the third quarter. We also generated 3.1 million in other revenue in the fourth quarter, and for the year, 6.4 million. In the fourth quarter, we successfully formulated a unique Xerosol formulation of glucagon for beta bionics, resulting in the recognition million in revenue. Moving on to gross margin. Gross margin was 84% in the fourth quarter, a 1% improvement compared to the same period in 2023. This improvement was driven by a favorable product mix. For the year, gross margin was 82%, relatively flat to prior year. Improvements to our gross margin in the year from a favorable product mix were offset by previously reported GEVO capacity expansion costs in the third quarter of 2024. Research and development expenses were $6.1 million for the fourth quarter, relatively flat compared to the same quarter of 2023. For the year, research and development expenses were $25.6 million, a $3.2 million increase compared to prior year. This increase was to support XP-8121, and increased personnel costs for the continued investment in our technology platforms and partnerships. Selling, general, and administrative expenses were $40.1 million and $163.5 million for the quarter and year, respectively, an increase of 7% and 12% compared to the same periods last year. These increases were driven by personnel costs, primarily due to the Record Lab commercial expansion, In addition, for the year, we incurred a one-time charge of $6.1 million in the third quarter related to the CEO succession plan and related corporate restructuring. Rounding out our 2024 results, in the fourth quarter, we continued to maintain a very healthy cash position, generating over $2 million in cash and ending the year with $71.6 million. Looking ahead to 2025, And as we announced earlier today, we expect total revenue to be between $255 to $275 million. Using the midpoint of this guidance, total revenue would grow over 30% annually, exceeding our growth rate in 2024. Primary drivers of this growth in 2025 will be Recorlev and GEVO, and we expect Cabeas will continue to hold its own. We do anticipate contribution from our partnerships, which we believe will be consistent with the revenue generated over the past few years. For Recorlev, we continue to see a growing pipeline of referrals and expect another record number of patients on therapy in the first quarter. Over the course of 2025, we expect patient demand to grow at or above what we drove in the second half of 2024. For GVOC, we expect steady prescription growth as we endeavor to serve the 14 million patients that are unprotected today. Rounding out the products for Cabeus, we may see continued pressure on reimbursement and net pricing, similar to what we experienced in 2024. However, we expect patient demand to remain steady as we work to keep existing patients on therapy and add new patients to Cabeus. Moving down the P&L, we expect a modest improvement in 2025 to our already attractive gross margin. This improvement, we expect, will be driven by favorable product mix. We anticipate SG&A and R&D expenses, which in total were approximately $189 million in 2024, to only increase modestly with a growth rate in the mid to high single digits compared to 2024. Our second half 2024 commercial record live commercial expansion and continued investment in this brand combined with the incremental investment supporting XP 8121 will primarily drive the increases in SG&A and R&D respectively. Given our strong top line growth expectations, our healthy and improving gross margin profile, our disciplined expense management, and strong cash position, it is clear that Xeris will turn an important financial corner in 2025 that will position the company to execute on its priorities without the need to dilute shareholders. Furthermore, in keeping with our commitment to greater transparency, we are now reporting on adjusted EBITDA. This is not only an appropriate financial measure for this stage of the company's evolution, but more importantly, we believe this is an appropriate measure to assess the strength of the company's true operating performance. It is our belief that as we report on this metric moving forward, it should provide confidence that the company is financially healthy with sufficient capital to fund our priorities. As mentioned in this morning's press release, we reported adjusted EBITDA of over $8 million in the fourth quarter, and we anticipate that Xeris will be adjusted EBITDA positive on a go-forward basis. In closing, Xeris has never been financially stronger. Our accelerating revenue growth coupled with our attractive and improving margin profile and disciplined capital allocation will result in a financially transformative 2025 for Xeris. With that, operator, please open the line for questions.

Thank you. To ask a question, please dial star followed by 1 on your telephone keypad now. If you change your mind and would like to exit the queue, please dial star followed by 2. And finally, when preparing to ask your question, please ensure that your phone is unmuted locally. Our first question today will be from the line of Chase Knickerbocker with Craig Hallam. Please go ahead. Your line is open.

Good morning. Thanks for taking the questions and congrats on a record quarter here. First, kind of just on the record left strength, just help us better characterize, I guess, you know, specifically kind of the strength there, you know, of prescribers who are already writing, you know, what kind of growth are you seeing from them? And then, you know, what kind of growth in overall writers are you seeing? Basically, um you know how much of this growth is going deeper with existing writers and kind of benefiting from their growth and prescriptions as people have kind of just a better appreciation of this disease state you know versus you guys successfully expanding your writer base hey chase it's john um it's both like we continue to expand our writer base but we also are getting you know more and more writers writing more patients so

as they get comfortable in utilizing Recorlev, they begin to add more patients. So we have both happening. And with the expansion of the sales force, that's also allowing us to get to new patients. So it's coming from all places.

Do you get a sense of kind of what the increase in year-over-year kind of prescriptions in kind of hyperchlorozolism is? in the market? Do you have any kind of sense?

We don't. I mean, as you know, there's no data out there that supports exactly where all these patients are, and so it's hard to kind of figure that out, but obviously that's why you have people in the field so that you can find these patients.

Yep, got it. And obviously what you're seeing so far on Q1 kind of gives you the confidence for what's a really strong guide here. Anything else you can give us just from, you know, deeper than the kind of record, you know, kind of pipeline and kind of incrementally what you're seeing, even better than Q4, that sort of thing. And then just lastly from me on Cabeas, how should we think about it on a year-over-year basis in 25? Should we be thinking about kind of the same decline as what we saw in 24, or should we be kind of annualizing what we saw in Q4? Thanks.

I think to your first question, we're trying to really point, what we saw in the back half of 2024, we anticipate we're going to see for all of 2025. We're seeing this acceleration and growth of our business that we're confident we're going to be able to do in 2025 and even better than we did on a full year basis for 24. um so it's it's you know a lot of the same stuff that we've been executing on um and then for caveus i think caveus may have found you know maybe it's bottom but we you know we we you know so if you know we don't know exactly what's going to happen but it looks like we're really holding our own especially as we hold on to patients great thank you

Our next question will be from the line of Oren Livnats with HC Wainwright. Please go ahead. Your line is open.

Thanks for taking the questions. Just first, I want to just clarify that last commentary on record live growth. Just so we understand, when you talk about growth rates consistent or better than what we saw in the latter part of 2024, are you talking about year over year growth? patient ad rates? I mean, that was in the mid-125% range. Is that what we're talking about, or are we just talking about sort of sequential average quarterly revenue growth?

Yeah, probably not on a growth rate percentage, right, because it's off of a higher end now, right? But I think from an absolute perspective, I think what we saw in the back half should be you know, we expect will continue throughout 2025. We've reached kind of a new trajectory, and this thing isn't slowing down, Oren. So I would think about it more from the underlying number of patient adds rather than a growth percentage.

Okay, that makes sense. And in general, have there been any changes to access in that market? Obviously, the market itself is growing, but is there anything changing within it with regards to, you know, off-label prescribing or lack thereof, changes in managed care positioning within that space? And also, how are you doing on the sort of post-initiation interaction with patients and offices? as we think about patients titrating up over time. Is that something you guys are proactively interacting with offices and patients to sort of push them to continue to check levels and optimize therapy? And I have one follow-up.

So on the first part of your question, no changes in reimbursement. Everything's pretty much the same. Obviously, there's a great opportunity, and once a patient is on, is to help them and keep them on. And we continue to invest in that and work on that as an important aspect of helping to drive our growth.

Okay. And just lastly, obviously you guys are really excited about 8121 and we've all been sort of waiting for a while to get that clarity. So it sounds like you're still planning to give us more mid-year. Pardon me. Are you able to talk about now, like maybe if there's anything still TBD on that front between now and mid-year updates, or is it just about preparing how you want to roll out the reveal there, so to speak?

We're still having a dialogue with the agency. And, you know, as we planned, this is all part of our plan here was how we go to the agency, how do we work out the clinical, the device, and the – Oren Gur, You know, paths of regulatory approval. Oren Gur, Was a process that we've been running and we'll be prepared to talk more about exactly where that all lands by mid year.

James Meeker, All right, appreciate it great quartering guidance thanks. Oren Gur, Thanks Oren.

Thanks Oren.

The next question today will be from the line of Glenn Santangelo with Jefferies. Please go ahead, your line is open.

Oh, yeah, thanks for taking my questions. Just a couple of quick financial ones. Steve, I think you said that gross margin was 84% in the fourth quarter, and that was up 100 basis points. You know, recognizing sort of what happened in the third quarter, when we look at that gross margin expansion in 4Q, is that the right way to think about, you know, 2025 based on the mixed assumptions that you're sort of making for 2025?

Yeah, I think that's a good starting assumption right there, Glenn, moving forward, plus or minus.

All right. But then moving on to your expenses, I mean, it seems like, you know, I think you used the word that you expect your operating expenses to be up only modestly when looking at R&D was flat in 4Q and SG&A was up about 7%. So, you know, how should we think about that term sort of up modestly? Because it starts to seem like a lot of leverage in the model, obviously, which, you know, but just just sort of help us put those operating expenses into context. Thanks. Contacts. Thanks.

Yeah, I think I think you hit the nail on the head, Glenn, that that we are creating some leverage in the piano with our operating expenses. We we continue to invest in record 11. You know, we had some ads to SG&A in the second half as a result of the recoil of expansion. So you'll get the full year effect of that in 2025. And then I think we'll invest incrementally in 8121. The real spend though, it's worth pointing out, the real boluses spend when you start talking about clinical spend will be more of a 2026 phenomenon.

Okay, thanks a lot. Sure.

The next question will be from the line of David Amselem with Piper Sandler. Please go ahead. Your line is open.

Thanks. So just a couple for me. Number one is looking at one of your competitors with Corlin, there's significant growth in sales and marketing spend uh for for that company um and a lot of it of course is supporting um this expanded market and expanded understanding of the prevalence of hypercortisolism so i guess that sort of begs the question how are you thinking about the long-term spend uh to support uh record labs um and do you expect significant headcount expansion in terms of the sales course Do you expect significant overall growth in promotional spend to support the product? Just help us understand that as our understanding of the market evolves and we have greater clarity on the extent to which this is a much bigger market compared to our understanding of it historically. So that's number one. And then number two, can you just remind us how we should think about the durability and exclusivity runway? for record loads, that would be helpful. Thank you.

Wow, a lot to unpack there. We see the expansions both of CORE-CEPT and Recordati in this space as is really, you know, adding to the opportunity, raising awareness, raising testing, we'll get more and more people identified and treated. We see that all as positive and adding to the tailwinds that we're all enjoying in this space. I think that's important that that continues and it's helping all of us really find these patients and get them on therapy. So that's all the positive and adding to the positive momentum in the space. And then what was the second part?

Exclusivity on Rekorlov.

Oh, exclusivity on Rekorlov. I think our patents are on Rekorlov goes to 2040. And we have orphan of exclusivity through 29. 28. 28. End of 28. So again, a lot of runway here. A lot of opportunity to continue to advance this market and And the other piece of this is we have Recorlev. We think Recorlev is, as I said in my remarks, the right product at the right time. So I think we have the best in class in terms of normalizing the synthesis of cortisol, which is a very important aspect to treating these patients. So, you know, I think it's just perfect timing for us.

And head count expansion, what's your expectation longer term?

longer term investments in record level continue as you know, as we we see the opportunity and and we will continue to, you know, advance our investments in here. Because like we said, we have plenty of runway and a really accelerating market that says yeah, invest how we invest. I'm not going to talk about exactly how that works out over the next, you know, several months, but we definitely are our see that as one of our key priorities of investment.

All right, thanks.

The next question will be from the line of Leland Gershel with Oppenheimer. Please go ahead. Your line is open.

Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. Leland Gershel with Oppenheimer. Please go ahead. Your line is open. L uh that update with respect to showing the product um and then also want to ask on 8121 as we look forward to the um the unveiling of the uh the broader plan mid-year uh would you be able to um say that you at least intend to enter the um the candidate into phase three potentially by the end of the year thank you yeah let me start with gvo and the guidelines the guidelines are

pretty clear and our job and our team is really focused on not only raising awareness of the guidelines but also helping clinicians offices become more compliant with the guidelines so that we can get the 14 million people today that are not protected they're unprotected and should be protected based on the guidelines so our focus in those offices every day is to help those offices advance their practice in a way that can get these people protected. And our GVO team is doing that on an everyday basis. We see that as a long-term opportunity. It's going to take effort, and we continue to invest in that effort. 8,121. I think Steve pointed out, yeah, we're making investments this year. They're not super large investments. They're more phase three readiness so that we can, you know, get started in the clinic. Probably our thinking is sometime in 26. But, yeah, it's more phase three readiness this year.

Got it. Thanks very much.

The next question will be from the line of Mazahir Ali-Mohammed with Learink Partners. Please go ahead, your line is open.

Hi, this is May Zeon for Ruana Ruiz. Just a couple from us. I guess, firstly, as we think about the expansion with RecorLiv and the recent sales expansion, is there any thoughts in terms of 2025 of increasing the sales force or any changes to the commercial strategy?

So I think sitting here today, we feel pretty confident with what we have in terms of our commercial footprint for RecoraLive. That being said, we've had two expansions over the last 15 months. So we'll be opportunistic as the market dynamics unfold. And if we see an opportunity to invest incrementally in RecoraLive this year, we'll do that. But right now, sitting here today, no, we don't have any firm plans for an expansion.

Great, thanks. And then last one for me. On 8121, as we think about kind of moving through the trials and into a potential commercialization phase for that, how would the synergies of your current existing products play a role in that? And is that something that you guys could build upon as you think about commercialization? taking advantage of your already strong footprint within the endocrine space.

That's exactly it. That's why we're, another reason why we're so excited about 8121 is it fits perfectly with our endocrinology footprint across GVOC and Recorla, for that matter. And we have all the capabilities from, you know, patient support to channel, And pharmacy. So, you know, it's a perfect fit for us. And we'll be able to, you know, slide it right into our existing footprint. So another exciting reason. The other thing that's exciting about it, it's our own organic development program. It's Xerosol technology, which we know how to use, we know how to work with, and, you know, proven in our GEVO product. So, again, those are two things that really are, you know, get us excited about, you know, our ability to get this to market and be successful once we get there.

Great. No, it makes a lot of sense. Thanks for the time.

As a reminder, for any further questions, please dial star followed by one now. And our next question will be from the line of Oren Libnat with HC Wainwright. Please go ahead. Your line is open.

Hey, thanks for the follow-ups. I just wanted to clarify on the guidance you talked about sort of sustained positive EBITDA. Are you able to put a stake in the ground right now and say that for the full year or before your end that you'll be cash flow break-even this year? And on Rekorlev, Just want to check on seasonality. Obviously, orphan drugs are subject to pretty material growth to net changes in Q1 typically. Obviously, you're talking about really strong patient growth and overall revenue growth there. Can you just talk about the cadence and whether we should expect sequential growth quarter-by-quarter in net revenue, you think, in Q1? Or like most competitors, should we see maybe a divot before we accelerate into the year? Thanks.

All right. Let me take the record level one, and then I'll throw Steve the first question you asked. You know, like every company that's in, you know, especially in the rare disease space, there are resets and things that go on in the first quarter. So you see a little bit of, you know, slowdown in the first, you know, January, February timeframe, and that starts to rebound towards the end of the quarter. So, you know, Q1 is always a little bit you know, slower, and then it picks back up. And I don't really call it a seasonality. It's just, you know, it's all about the payer resets. And, you know, we see that across all of our products. But, you know, specifically, more importantly, Recor11 and Caveas probably feel it the most.

So, Warren, on your cash question, I think you probably picked up on the fact that we're not really guiding on cash going forward. So let me just start with one, we have plenty of cash to operate the business moving forward. And hopefully clear from the guidance we provided this morning that the company is on really solid financial ground with a really promising outlook for 25, right? 30% revenue growth at the midpoint of our guidance, healthy, already healthy and improving gross margins and modest operating expense growth and obviously adjusted EBITDA moving forward, positive moving forward. So I think what we're saying here is we're transitioning from kind of a cash burn story that we have been historically, and we want to focus investors on the growing strength of RP&L and the operations of the business. So that's kind of answering your question without answering it. I think what's important is that we feel really good about where this business is heading, particularly in 25. All right.

Thanks so much. Thank you. This concludes Q&A. I will now hand the call back to John Shannon for closing remarks.

Thank you. And thank you, everyone, for your questions. As you just heard, the continued momentum of our commercial business, our exciting pipeline, along with our unrelenting focus on execution, will create even more value for our patients and our shareholders and set Xeris up for a transformational 2025. Thank you.

Thank you. This concludes the Xeris Biopharma fourth quarter and four-year 2024 financial results. You may now disconnect your lines.