A $34.8 million onetime tax benefit was recognized in Q2, primarily from the release of valuation allowances on R&D credits acquired in the Nevro deal.
The Nevro acquisition brought in $141.5 million of deferred tax assets, which are expected to generate cash tax savings over approximately 40-50 years.
The tax benefits improve the company's cash flow outlook and are part of the strategic integration and cost management efforts.
G&A expenses rose to $40.6 million in Q2 2025 from $21.7 million in Q2 2024 due to increased personnel and commercial preparation activities.
Net loss for Q2 2025 was $247.8 million, up from $133.2 million in Q2 2024, mainly due to higher operating expenses.
R&D expenses increased to $224.1 million in Q2 2025 from $134.9 million in Q2 2024, driven by clinical trial and manufacturing costs, primarily for daraxonrasib.
Revolution Medicines ended Q2 2025 with $2.1 billion in cash and investments, including a $250 million royalty monetization tranche from Royalty Pharma.
The Royalty Pharma transaction was accounted for as a liability, with $900,000 noncash interest expense recognized in Q2 2025.
Updated 2025 GAAP net loss guidance is between $1.03 billion and $1.09 billion, reflecting increased expenses from global development and commercialization plans.
Adjusted EBITDA margin improved by 500 basis points to 8.4%, compared to 3.4% in Q2 2024, reflecting operational efficiencies and volume leverage.
Adjusted net loss improved to $10.2 million or $0.32 per share from $18.8 million or $0.61 per share in Q2 2024.
Adjusted operating expenses increased 16% year-over-year to $145.2 million due to remediation activities, global volume growth support, and investments in innovation and commercial initiatives.
Expanded access to Zio services as an in-network benefit to over 10 million additional patients in the U.S.
Gross margin was 71.2%, ahead of expectations, benefiting from volume leverage and operational efficiencies despite higher costs from increased Zio AT mix.
iRhythm reported Q2 2025 revenue of $186.7 million, up 26.1% year-over-year, driven by growth in core long-term continuous monitoring and Zio AT product lines.
New store growth accounted for approximately 68% of year-over-year volume growth, with home enrollment for Zio Services at about 23% of volume in the U.S.
Adjusted EBITDA increased by 59% year-over-year on an underlying basis to $50.8 million.
Adjusted net income grew approximately 85% year-over-year on an underlying basis, reaching $36 million.
Approximately $15 million of common stock was repurchased under the authorized $500 million share repurchase program.
Free cash flow was robust despite a $19.3 million strategic inventory build to support ASCENIV demand, ending the quarter with $90.3 million in cash.
GAAP net income was $34.2 million.
Gross profit rose to $67.2 million with gross margins improving to 55.1%, a 7.7% expansion on an underlying basis.
Total revenues for Q2 2025 reached $122 million, representing a 14% year-over-year increase or approximately 29% growth on an underlying basis excluding a nonrecurring Medicaid rebate accrual reversal from 2024.
Acquisition of VirtuOx completed for $140 million, with an annual revenue run rate of approximately $45 million, neutral to non-GAAP EPS in Q4.
Capital returned to shareholders totaled over $610 million through dividends and share repurchases.
Cash balance at quarter end was $1.2 billion with $668 million gross debt and $541 million net cash.
Cash flow from operations in Q4 was $539 million; capital expenditure was $31 million; depreciation and amortization totaled $64 million.
Free cash flow for fiscal year 2025 was $1.7 billion, supporting investments and shareholder returns.
Gross margin expanded by 230 basis points year-over-year to 61.4%, driven by procurement, manufacturing, logistics efficiencies, and favorable currency movements.
Net income increased by 22%, and non-GAAP diluted EPS rose by 23%, positively impacted by foreign exchange rates.
Operating profit increased by 19%, with operating margin improving to 35% from 33% the prior year.
ResMed reported 10% year-over-year revenue growth in Q4 FY 2025, reaching $1.35 billion, with 9% growth in constant currency terms.
Cash and equivalents totaled $580 million, with an additional $170 million in committed government funding, providing total available liquidity of around $750 million.
General and administrative expenses were approximately $19 million, down from $20 million, including ongoing intellectual property defense costs.
Net loss for the quarter was roughly $35 million, an improvement from a $37 million loss in Q2 2024.
Research and development expenses were about $39 million, slightly lower than the previous year by $2 million due to timing of program-specific expenses.
Revenue for Q2 2025 was approximately $17 million, up from $7 million in Q2 2024, driven by a $10 million lump sum licensing fee from the Trianni platform.
Sales and marketing expenses decreased slightly to $3 million compared to the prior year.
Bayer collaboration revenue grew 11% to $415 million, with $383 million related to Regeneron's share of net profits outside the U.S.
Effective tax rate was 8.3%, lowered by a favorable IRS audit settlement.
Free cash flow through the first six months of 2025 was $1.7 billion; cash and marketable securities totaled $17.5 billion with $2.7 billion in debt.
Gross margin on net product sales was 86%, lower than prior year due to investments in manufacturing and higher inventory write-offs.
Other revenue was $184 million, including $118 million of profit share and royalties, up 70% from the prior year.
R&D expense was $1.3 billion, reflecting continued investments in mid- to late-stage pipeline programs.
Regeneron's second quarter 2025 total revenues were $3.7 billion, growing 4% compared to the prior year, driven by higher Sanofi collaboration revenue, increased U.S. net sales of EYLEA HD, and growth in global net sales of Libtayo.
Sanofi collaboration revenues were approximately $1.4 billion, with $1.3 billion related to Regeneron's share of collaboration profits, which grew 30% year-over-year.
Second quarter diluted net income per share grew 12% to $12.89 on net income of $1.4 billion.
SG&A expense was $542 million, down 19% from the prior year due to lower general and administrative expenses.
Share repurchases totaled approximately $1.1 billion in Q2 and $2.2 billion year-to-date, reducing shares outstanding by 3.2 million.
Cash, equivalents, and investments totaled $165.2 million with no debt at quarter-end.
Core revenue grew 8% year-over-year to $8.2 million, driven by a 22% increase in instrument revenue to $2.1 million, flat license revenue at $2.6 million, and a 5% increase in processing assembly (PA) revenue to $3.1 million.
Gross margin was 82% in Q2 2025 compared to 86% in Q2 2024; non-GAAP adjusted gross margin was 83% versus 82% last year.
Operating expenses were $21.2 million, slightly higher than $20.9 million in Q2 2024, but decreased modestly year-to-date despite absorbing SeQure Dx costs.
Total revenue for Q2 2025 was $8.5 million, down 18% from $10.4 million in Q2 2024, primarily due to lower SPL program-related revenue.
Dafinchi