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10-QPeriod: Q1 FY2025

GILEAD SCIENCES, INC. Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 7, 2025For Securities:GILD

Summary

Gilead Sciences, Inc. reported a net income of $1.3 billion for the first quarter of 2025, a significant recovery from the $4.2 billion net loss in the prior year's quarter. This turnaround was largely driven by the absence of a substantial $3.9 billion acquired in-process R&D expense related to the CymaBay acquisition and a $2.4 billion IPR&D impairment charge recorded in Q1 2024, both of which did not recur. Total revenues remained stable at $6.7 billion, with a slight decrease of 1% in product sales, which was mitigated by an increase in royalty, contract, and other revenues. Key drivers of revenue performance included a 6% increase in HIV product sales, primarily from Biktarvy, and a 3% rise in Liver Disease products, boosted by the launch of Livdelzi. Conversely, Veklury sales saw a sharp decline of 45% due to lower COVID-19 related hospitalizations. Oncology sales experienced a slight decrease. The company continues to focus on its strategic priorities, including investing in its R&D pipeline and business development, while demonstrating a strong liquidity position with $7.9 billion in cash and cash equivalents as of March 31, 2025.

Financial Statements
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Key Highlights

  • 1Gilead reported a net income of $1.3 billion in Q1 2025, a substantial improvement from a net loss of $4.2 billion in Q1 2024, primarily due to the absence of large one-time expenses from the prior year.
  • 2Total revenues remained relatively flat at $6.7 billion, with product sales showing a slight decrease of 1% but offset by higher royalty and contract revenues.
  • 3HIV product sales increased by 6% to $4.6 billion, driven by strong performance in Biktarvy, while Liver Disease product sales grew 3% supported by the Livdelzi launch.
  • 4Veklury sales declined significantly by 45% to $302 million, reflecting decreased COVID-19 related hospitalizations.
  • 5Operating cash flow for the quarter was $1.8 billion, a decrease from the prior year, impacted by higher tax payments and inventory purchases.
  • 6The company maintained a strong liquidity position with $7.9 billion in cash and cash equivalents as of March 31, 2025.
  • 7Gilead is actively managing its debt, with $3.4 billion in net cash used for financing activities in Q1 2025, including significant debt repayments, dividend payments, and share repurchases.

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