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 EBITDA was $10.4 million compared to $21.5 million in the prior year quarter.
Castle Biosciences reported Q2 2025 revenue of $86.2 million, a 1% decrease compared to Q2 2024, driven by a $12.5 million decline in dermatological test revenue offset by an $11.7 million increase in non-dermatological tests.
DecisionDx-SCC revenue for Q2 2025 was estimated just above $15 million; excluding this test, normalized revenue growth was approximately 23%.
Gross margin was 77.3% in Q2 2025 compared to 80.7% in Q2 2024; adjusted gross margin was 79.5% versus 83.2% in the prior year period.
Net cash provided by operating activities was $20.8 million for Q2 2025 and $14.8 million for the first half of 2025; cash, cash equivalents, and marketable securities totaled $275.9 million as of June 30, 2025.
Net income for Q2 2025 was $4.5 million, down from $8.9 million in Q2 2024; diluted EPS was $0.15 versus $0.31.
Operating expenses increased to $90.4 million from $82 million, driven by higher sales and marketing, general and administrative, and cost of sales expenses due to personnel and lab service cost increases.
Dafinchi