01—Abstract
Summary
Summary of the 10-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.
Illumina, Inc. reported a net loss of $1,223 milliona for the fiscal year ended December 29, 2024, compared with a net loss of $1,161 million in 2023, on total revenue of $4,372 million, down from $4,504 million.
The results were driven largely by a $1,889 millionb goodwill and intangible impairment, most of it tied to GRAIL, and by a $456 million benefit from legal contingency and settlement, primarily the reversal of the European Commission fine accrual. Gross margin improved to 65.4% from 60.9%, and loss from operations narrowed to $833 million from $1,069 million. The company completed the Spin-Off of GRAIL on June 24, 2024, distributing approximately 85.5% of GRAIL shares to stockholders and retaining about 14.5%.
Illumina still owes contingent value right payments tied to GRAIL revenues through August 2033. Cash, cash equivalents and short-term investments totaled $1,220 millionc at year end. Operating cash flow was $837 million, against $478 million in 2023.
The company issued $500 milliond of 4.650% Term Notes due 2026 and repaid a $750 million delayed draw term loan, and it repurchased $116 million of stock during 2024. Its board authorized a new $1.5 billion repurchase program in August 2024, with about $1.4 billion still available at year end. The filing also flags several risks for 2025.
On February 4, 2025, China's Ministry of Commerce added Illumina to its List of Unreliable Entities, and Greater China revenue was $308 million in 2024, down from $384 million in 2023. The company faces multiple shareholder derivative and securities class actions related to the GRAIL acquisition, plus an SEC investigation and a Department of Justice civil investigative demand. Backlog stood at $657 million, with 78% expected to ship in 2025.
02—Key points
Key Highlights
- Net loss widened to $1,223 million in 2024 from $1,161 million in 2023, driven mainly by a $1,889 million goodwill and intangible impairment.
- Total revenue declined to $4,372 million from $4,504 million, with Core Illumina instruments revenue falling to $501 million from $706 million.
- Gross margin rose to 65.4% from 60.9%, supported by operational excellence initiatives and a more favorable revenue mix toward consumables.
- A $489 million gain from reversal of the European Commission fine accrual lowered legal contingency and settlement expense to a $456 million benefit.
- Operating cash flow improved to $837 million from $478 million, and cash, cash equivalents and short-term investments totaled $1,220 million at year end.
- The GRAIL Spin-Off was completed on June 24, 2024, and Illumina retained about 14.5% of GRAIL common stock, which recorded a $309 million unrealized loss after the Spin-Off.
- Illumina was added to China's Ministry of Commerce List of Unreliable Entities in February 2025, and Greater China revenue was $308 million in 2024.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Illumina lost $0.28.
- Revenue$4.37B100.0%
- Cost of revenue−$1.51B34.6%
- Gross profit$2.86B65.4%
- Operating costs−$3.69B84.5%
- Operating income−$833.0M19.1%
- Interest, other & tax−$390.0M8.9%
- Net income−$1.22B28.0%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 12, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $4.37B$4.50B | −2.9% |
| Cost of Revenue | $1.51B$1.76B | −14.1% |
| Gross Profit | $2.86B$2.74B | +4.3% |
| R&D Expenses | $1.17B$1.35B | −13.7% |
| SG&A Expenses | $1.09B$1.61B | −32.3% |
| Operating Expenses | $3.69B$3.81B | −3.1% |
| Operating Income | -$833.00M-$1.07B | +22.1% |
| Net Income | -$1.22B-$4.40B | +72.2% |
| EPS (Basic) | $-7.69$-7.34 | −4.8% |
| EPS (Diluted) | $-7.69$-7.34 | −4.8% |
| Shares Outstanding (Basic) | 159.00M158.00M | +0.6% |
| Shares Outstanding (Diluted) | 159.00M158.00M | +0.6% |
05—Questions
Frequently Asked Questions
Why did Illumina report a larger net loss in 2024 despite improved gross margin?
The net loss increased to $1,223 million from $1,161 million mainly because of a $1,889 million goodwill and intangible impairment, most of it related to GRAIL. Other expense, net was $292 million, including $309 million of unrealized loss on the retained GRAIL investment. These charges outweighed the higher gross profit of $2,861 million and the $456 million legal benefit.
What is the status of the European Commission fine and related proceedings?
In September 2024 the European Commission withdrew its previously imposed fine of €432 million, and Illumina reversed the accrual, recognizing a net gain of $481 million in Q3 2024. The EU Court of Justice ruled in Illumina's favor, and the Commission was ordered to pay Illumina's costs. The U.S. Federal Trade Commission dismissed its administrative complaint on August 15, 2024.
What are the main risks related to China for investors?
On February 4, 2025, China's Ministry of Commerce added Illumina to its List of Unreliable Entities. Possible penalties include fines and restrictions on sales, imports and exports, and investment. The ministry has not announced penalties, and the company says it cannot predict the duration of the listing or any actions. Greater China revenue was $308 million in 2024, compared with $384 million in 2023.
How is Illumina returning capital and managing its debt?
In August 2024 the board authorized a $1.5 billion share repurchase program, of which about $1.4 billion remained available at year end. The company repurchased 904 thousand shares for $116 million in 2024 and another 1.0 million shares for $126 million through February 11, 2025. It issued $500 million of 4.650% Term Notes due 2026 and repaid the $750 million delayed draw term loan. Term debt was $1,989 million net carrying amount at year end, and no borrowings were outstanding under the $750 million revolving facility.
What ongoing obligations does Illumina have related to GRAIL after the Spin-Off?
Illumina remains the obligor on contingent value rights issued in the GRAIL acquisition. These entitle holders to quarterly payments of 2.5% of the first $1 billion of GRAIL-related revenue each year, and 9% of revenue above $1 billion, through August 2033. The contingent consideration liability was $71 million at December 29, 2024, down from $387 million at the prior year end, mainly because of lower forecasted GRAIL revenues.
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