Adjusted operating expenses were slightly down from the prior quarter.
Cash balance was $963 million at the end of June, increasing to approximately $1 billion by end of July after follow-on offering proceeds and Gilead upfront payment.
Cash runway extended into the second half of 2028.
G&A expenses were $17.6 million, with $7.4 million non-cash stock-based compensation; adjusted cash G&A increased 6% sequentially.
Kymera reported Q2 2025 revenue of $11.5 million, all from the Sanofi collaboration.
R&D expenses were $78.4 million, including $8 million of non-cash stock-based compensation, reflecting a 3% decrease in adjusted cash R&D spend from Q1 2025.
Cash and cash equivalents were $341.8 million as of June 30, 2025, with total debt obligations of $747.5 million and net leverage ratio of 1.7x on an adjusted basis.
Free cash flow was $70 million, a 20% increase year-over-year.
Gross profit increased approximately 17% with a gross margin of 53.2%, up 167 basis points.
Net income was $61 million or $1.01 per share, compared to $53.8 million or $0.92 per share last year.
Non-GAAP EPS grew 10%, surpassing the high end of expectations.
Non-GAAP operating margin increased by nearly 109 basis points year-over-year to 21.2%, the highest in the company's public history.
Operating expenses increased 15%, driven by 13% SG&A and 24% R&D increases.
Operating income rose 19% to $80.9 million with an operating margin of 21.2%.
Organic constant currency growth excluding acquisitions was 6.8% for Cardiovascular and 1% for Endoscopy.
Other expense net was $2.3 million compared to income of $1.4 million last year, due to lower interest income and partially offset by lower interest expense.
Total revenue for Q2 2025 was $382.5 million, up 13% year-over-year on a GAAP basis and 12.5% on a constant currency basis, exceeding the high end of growth expectations.
Adjusted EBITDA for Q2 was $155.5 million with a margin of 19.4%, slightly down from 20.5% in Q2 2024 but at the high end of guidance.
Free cash flow was $73.3 million, ahead of expectations, with cash flow from operations at $162 million and CapEx at $88.7 million (11.1% of revenue).
Net debt reduced by $150 million in Q2, totaling $175 million year-to-date and $345 million over six quarters, with net leverage ratio improving to 2.81x from 2.98x.
Q2 2025 revenue was $800.4 million, slightly down 0.7% year-over-year but flat excluding divested assets, meeting expectations.
Segment performance: Sleep Health revenue up 0.9% to $334.7 million; Respiratory Health up 5.6% to $170.5 million; Diabetes Health down 4.1% to $145 million; Wellness at Home down 7.2% to $150.3 million due to asset sales.
Adjusted EBITDA improved to $9.1 million from a loss of $0.3 million in Q2 2024.
Adjusted revenue for Q2 2025 was $90.5 million, up 14% year-over-year excluding prior period test revenue adjustments.
Cash from operations was $10 million, ending the quarter with $186 million in cash and no debt after a $50 million share repurchase.
Non-GAAP gross margin improved by 340 basis points to 70.4%, with Testing Services margin at 77.6%, Patient & Digital Solutions at 39.5%, and Lab Products at 63.9%.
Operating expenses increased 3% year-over-year to $56.7 million, well below revenue growth, reflecting operational leverage.
Patient & Digital Solutions revenue grew 19% to $12.8 million, and Lab Products revenue increased 12% to $11.8 million.
Reported revenue was $86.7 million, including a $3.8 million write-off related to prior period tests, down 6% year-over-year.
Testing Services revenue was $66 million adjusted, up 14% year-over-year with approximately 49,500 tests delivered, marking the eighth consecutive quarter of volume growth.
Adjusted earnings per share from continuing operations were $0.59, increasing 28% over the prior year.
Adjusted gross margins were 14.7%, a decrease of 170 basis points compared to prior year, primarily due to Vantive MSA impact, lower manufacturing volumes, and unfavorable product mix.
Adjusted gross margins were 14.7%, down 170 basis points due to Vantive MSA impact, lower manufacturing volumes, and unfavorable product mix.
Adjusted operating margin was 15.1%, improving 180 basis points year-over-year, reflecting lower gross margin offset by operational execution and TSA income.
Adjusted operating margin was 15.1%, improving 180 basis points year-over-year, reflecting TSA income and operational execution.
Adjusted R&D spending was $134 million or 4.8% of sales, consistent with prior year.
Adjusted SG&A was $639 million or 22.7% of sales, decreasing 170 basis points from prior year, reflecting investments and employee benefit costs offset by reclassification benefits and expense management.
Adjusted SG&A was $639 million or 22.7% of sales, down 170 basis points, reflecting investments and expense management.
Adjusted tax rate was 16.7%, down 400 basis points due to strategic tax attribute use post-Kidney Care sale.
Adjusted tax rate was 16.7%, down 400 basis points from prior year due to strategic tax attribute use.
Healthcare Systems & Technologies sales were $767 million, increasing 2%, driven by Care & Connectivity Solutions growth.
Medical Products & Therapies segment sales were $1.3 billion, increasing 1%, with strength in Advanced Surgery offset by softness in Infusion Therapies & Technologies.
Medical Products & Therapies segment sales were $1.3 billion, increasing 1%, with strong Advanced Surgery demand offset by softness in Infusion Therapies & Technologies.
Negative free cash flow of $144 million year-to-date, with $77 million positive free cash flow generated in Q2.
Net interest expense was $58 million, down $28 million due to debt paydown from Vantive sale proceeds.
Net interest expense was $58 million, down $28 million from prior year due to debt paydown from Vantive sale proceeds.
Pharmaceuticals segment sales totaled $612 million, increasing 1%, with declines in Injectables & Anesthesia offset by 7% growth in Drug Compounding.
Pharmaceuticals segment sales totaled $612 million, increasing 1%, with declines in Injectables & Anesthesia partly offset by 7% growth in Drug Compounding.
Second quarter sales from continuing operations grew 4% on a reported basis and 1% on an operational basis, with growth from all three segments.
Year-to-date free cash flow was negative $144 million, with $77 million positive free cash flow generated in Q2.
Cash and investments ended at approximately $315 million, above plan, supporting the path to positive cash flow by end of 2027.
Instrument revenue was $14.2 million, down 4% year-over-year due to funding constraints in academic and government customers, while consumables revenue grew 11% to $18.9 million.
Non-GAAP gross margin improved to 38.3%, driven by favorable product mix and lower Revio consumable unit costs.
Non-GAAP net loss narrowed to $40.0 million ($0.13 per share) from $55.2 million ($0.20 per share) in Q2 2024.
Non-GAAP operating expenses decreased 18% year-over-year to $58.1 million, reflecting restructuring and lower stock-based compensation.
PacBio reported Q2 2025 revenue of $39.8 million, up 7% sequentially and 10% year-over-year, driven by strong international growth with APAC and EMEA regions up 45% combined.
Dafinchi