Adjusted diluted net earnings per share were $1.80, up approximately 5% year-over-year.
Adjusted operating profit margin was 27.3%, flat year-over-year, driven by volume leverage, product mix, and cost management.
Biotechnology segment core revenue increased 6%, led by high single-digit growth in bioprocessing and a slight decline in discovery and medical.
Cepheid's non-respiratory molecular diagnostics grew double digits, driven by sexual health, virology, and hospital-acquired infections assays.
Diagnostics segment core revenue increased 2%, with strong growth outside China, especially in clinical diagnostics and molecular diagnostics non-respiratory revenue.
Free cash flow was $1.1 billion in the quarter and $2.2 billion in the first half, with a 143% free cash flow to net income conversion ratio year-to-date.
Life sciences segment core revenue declined 2.5%, impacted by weak academic and government demand and lower genomics consumables sales.
Second quarter sales were $5.9 billion with 1.5% core revenue growth year-over-year.
Adjusted EBITDA was $82 million in Q2, negatively impacted by $7 million in severance and sign-on bonuses.
Cash and short-term investments ended Q2 at over $1.1 billion; free cash flow was negative $69 million due to investments in new capabilities and working capital.
G&A costs improved 1 point year-over-year but deleveraged 4 points quarter-over-quarter due to new executives and organizational restructuring.
Gross margins expanded 3 points quarter-over-quarter to 76%, driven by growth outside weight loss specialty.
Marketing spend was 40% of revenue, with slowed investment due to volatility in marketing efficiency.
Monthly average revenue per subscriber declined quarter-over-quarter to $74 from $84, primarily due to offboarding GLP-1 subscribers.
Revenue grew 73% year-over-year to $545 million in Q2 2025, with an adjusted EBITDA margin north of 15%.
Subscribers increased by 73,000 quarter-over-quarter to over 2.4 million, reflecting 31% year-over-year growth.
Technology and development costs increased to 7% of revenue, reflecting investment in technology talent.
Adjusted EBITDA was $238 million, down $37 million year-over-year; adjusted EPS was $0.26, down $0.04 year-over-year.
Cash from operations was $237 million, up from $200 million in the prior year quarter; net debt was approximately $3.4 billion with a leverage ratio of 4.0x.
Elanco reported Q2 2025 revenue of $1.241 billion, a 5% increase on a reported basis and 8% organic constant currency growth driven by volume (5%) and price (3%).
Farm Animal business grew 6% organically, with U.S. Farm Animal up 5% led by Experior and international Farm Animal up 6%.
Gross margin declined 90 basis points to 57.3% due to inflation and higher manufacturing costs, partially offset by favorable price, volume, and product mix.
Interest expense decreased by $27 million to $38 million due to debt reduction from prior divestitures.
International Pet Health grew 7% organically, driven by AdTab, Zenrelia, and Credelio.
Operating expenses increased 11% year-over-year due to global Pet Health product launch investments and timing shifts.
U.S. Pet Health led growth with 11% organic constant currency increase, supported by key innovation products and vaccine portfolio.
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, cash equivalents, and marketable securities totaled approximately $630.5 million as of June 30, 2025, down from $861.7 million at the end of 2024.
Collaboration revenue increased to $14.2 million in Q2 2025 from $6.9 million in Q2 2024, driven mainly by cost reimbursements from Regeneron Pharmaceuticals.
G&A expenses declined by $4.6 million to $27.2 million, reflecting lower stock-based compensation but higher commercial infrastructure build-out costs.
R&D expenses decreased by $17.2 million year-over-year to $97 million, primarily due to lower employee-related expenses and stock-based compensation, partially offset by increased advancement of lead programs.
Stock-based compensation expenses were $14.1 million in R&D and $8 million in G&A for the quarter.
The company expects a year-over-year decline in GAAP operating expenses of approximately 10% for 2025 and maintains a cash runway into the first half of 2027.
Dafinchi
