01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Gilead Sciences, Inc. reported a net income of $1.3 billiona 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 billionb 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 billionc in cash and cash equivalents as of March 31, 2025.
02—Key points
Key Highlights
- Gilead 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.
- Total 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.
- HIV 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.
- Veklury sales declined significantly by 45% to $302 million, reflecting decreased COVID-19 related hospitalizations.
- Operating cash flow for the quarter was $1.8 billion, a decrease from the prior year, impacted by higher tax payments and inventory purchases.
- The company maintained a strong liquidity position with $7.9 billion in cash and cash equivalents as of March 31, 2025.
- Gilead 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Gilead Sciences, Inc. kept $0.20.
- Revenue$6.67B100.0%
- Cost of revenue−$1.54B23.1%
- Gross profit$5.13B76.9%
- Operating costs−$2.89B43.3%
- Operating income$2.24B33.6%
- Interest, other & tax−$922.0M13.8%
- Net income$1.31B19.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 7, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $6.67B$6.69B | −0.3% |
| Cost of Revenue | $1.54B$1.55B | −0.8% |
| Gross Profit | $5.13B$5.13B | −0.1% |
| SG&A Expenses | $1.26B$1.38B | −8.5% |
| Operating Expenses | $4.43B$11.01B | −59.8% |
| Operating Income | $2.24B-$4.32B | +151.8% |
| Net Income | $1.31B-$4.17B | +131.5% |
| EPS (Basic) | $1.06$-3.34 | +131.7% |
| EPS (Diluted) | $1.04$-3.34 | +131.1% |
| Shares Outstanding (Basic) | 1.25B1.25B | −0.1% |
| Shares Outstanding (Diluted) | 1.26B1.25B | +1.0% |
05—Questions
Frequently Asked Questions
What drove the significant increase in net income compared to the prior year's quarter?
The substantial increase in net income from a loss of $4.2 billion in Q1 2024 to a profit of $1.3 billion in Q1 2025 was primarily due to the absence of large, non-recurring charges that impacted the prior year's results. Specifically, the $3.9 billion acquired in-process R&D expense from the CymaBay acquisition and the $2.4 billion IPR&D impairment charge related to Trodelvy, both recorded in Q1 2024, did not recur in the current quarter.
How are the company's key therapeutic areas performing?
Performance varied across therapeutic areas. HIV product sales increased by 6% to $4.6 billion, driven by Biktarvy. Liver Disease products saw a 3% increase to $758 million, aided by the Livdelzi launch. However, Veklury sales dropped 45% to $302 million due to fewer COVID-19 hospitalizations. Oncology sales experienced a slight decline, with Cell Therapy down 3% and Trodelvy down 5%.
What is the company's liquidity and cash flow situation?
Gilead maintains a strong liquidity position with $7.9 billion in cash and cash equivalents as of March 31, 2025. Net cash provided by operating activities was $1.8 billion for the quarter, though this was a decrease from the prior year, impacted by higher tax payments and inventory purchases. The company used $3.4 billion in net cash for financing activities, including debt repayments, dividends, and share repurchases.
Are there any significant legal or regulatory matters impacting the company?
The company is involved in several legal proceedings, including litigation with generic manufacturers challenging patents for Biktarvy, and ongoing antitrust and consumer protection lawsuits related to HIV drugs. Gilead also settled a government investigation regarding its promotional speaker programs for HIV in April 2025. While the company intends to defend itself vigorously, adverse outcomes in these matters could have a material impact.
06—Continue