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Revenues
 12 Months Ended
Jan. 02, 2026
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues consisted of the following (in thousands):
 Year Ended December 31,
 202520242023
Product revenues:
Gross product revenues$3,011,807 $2,518,246 $2,272,533 
Discounts and allowances(889,003)(708,851)(643,654)
Net product revenues2,122,804 1,809,395 1,628,879 
Collaboration revenues:
License revenues214,375 349,244 178,635 
Collaboration services revenues(17,053)10,062 22,694 
Collaboration revenues
197,322 359,306 201,329 
Total revenues$2,320,126 $2,168,701 $1,830,208 
Net product revenues and license revenues are recorded in accordance with Accounting Standards Codification (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.
Net product revenues by product were as follows (in thousands):
Year Ended December 31,
202520242023
CABOMETYX$2,113,369 $1,798,237 $1,614,942 
COMETRIQ9,435 11,158 13,937 
Net product revenues$2,122,804 $1,809,395 $1,628,879 
The percentage of total revenues by customer who individually accounted for 10% or more of our total revenues were as follows:
Year Ended December 31,
 
202520242023
Affiliates of Cencora, Inc.22%18%17%
Affiliates of McKesson Corporation19%16%17%
Affiliates of CVS Health Corporation15%17%17%
Accredo Health, Incorporated12%11%12%
Affiliates of Optum Specialty Pharmacy10%9%10%
Ipsen Pharma SAS7%15%8%
The percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
 
December 31,
 
20252024
Affiliates of McKesson Corporation25%23%
Affiliates of Cencora, Inc. 23%17%
Ipsen Pharma SAS19%18%
Affiliates of CVS Health Corporation13%20%
Cardinal Health, Inc.12%10%
Total revenues by geographic region were as follows (in thousands):
Year Ended December 31,
202520242023
U.S.$2,140,371 $1,822,992 $1,645,749 
Europe154,165 318,633 144,969 
Japan25,590 27,076 39,490 
Total revenues
$2,320,126 $2,168,701 $1,830,208 
Total revenues include net product revenues attributed to geographic regions based on ship-to location and license and collaboration services revenues attributed to geographic regions based on the location of our collaboration partners’ headquarters.
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
RebatesTotal
Balance at December 31, 2023
$25,221 $19,721 $39,898 $84,840 
Provision related to sales made in:
Current period470,103 63,354 179,297 712,754 
Prior periods(891)(2,044)(968)(3,903)
Payments and customer credits issued(469,166)(56,086)(180,796)(706,048)
Balance at December 31, 2024
25,267 24,945 37,431 87,643 
Provision related to sales made in:
Current period616,641 69,949 213,391 899,981 
Prior periods(4,340)(2,109)(4,529)(10,978)
Payments and customer credits issued(603,345)(69,173)(210,009)(882,527)
Balance at December 31, 2025
$34,223 $23,612 $36,284 $94,119 
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 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. Contract assets are primarily related to Ipsen Pharma SAS (Ipsen) and contract liabilities are primarily related to deferred revenues from Takeda Pharmaceutical Company Limited (Takeda).
Contract assets and liabilities were as follows (in thousands):
 
December 31,
 
20252024
Contract assets(1):
$— $369 
Contract liabilities:
   Current portion(2)
$1,115 $2,739 
   Non-current portion(3)
6,112 3,392 
Total contract liabilities$7,227 $6,131 
____________________
(1) Presented in right-of-use assets and other non-current assets in the accompanying Consolidated Balance Sheets.
(2) Presented in other current liabilities in the accompanying Consolidated Balance Sheets.
(3) Presented in other non-current liabilities in the accompanying Consolidated Balance Sheets.
During the years ended December 31, 2025, 2024 and 2023, we recognized $6.1 million, $6.0 million and $6.9 million, respectively, in revenues that were included in the beginning deferred revenues balance for those years.
During the years ended December 31, 2025, 2024 and 2023, we recognized $213.1 million, $351.9 million and $179.7 million, respectively, in revenues for performance obligations satisfied in previous periods. Such revenues were primarily related to the recognition of license revenues for the achievement of milestones and royalty payments allocated to our license performance obligations for our collaborations with Ipsen and Takeda.
As of December 31, 2025, $21.5 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 — Cabozantinib Commercial Collaborations — Performance Obligations and Transaction Prices for our Ipsen and Takeda Collaborations” for additional information about the expected timing to satisfy these performance obligations.