10-QPeriod: Q2 FY2025

ELI LILLY & Co Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 7, 2025For Securities:LLY

Summary

Eli Lilly and Company (LLY) reported robust financial performance for the quarter and six months ended June 30, 2025. Revenue surged by 38% and 41% year-over-year, respectively, driven by strong demand for key products like Mounjaro and Zepbound, particularly in the U.S. market. This top-line growth translated into a significant increase in net income, up 91% for the quarter and 62% for the six-month period, with diluted EPS also showing substantial gains. The company's gross margin improved due to better production costs and product mix, even with increased R&D and SG&A expenses supporting pipeline development and commercialization efforts. Despite increased investments in research and development and marketing, Lilly demonstrated strong operational efficiency. The company also made strategic acquisitions, including Verve Therapeutics and SiteOne Therapeutics, to bolster its pipeline in cardiovascular disease and pain management, respectively. Financially, Lilly maintained a healthy cash position, though total debt increased due to recent debt issuances primarily to fund acquisitions and general business purposes. The company also continued its share repurchase program and dividend payments, reflecting a commitment to shareholder returns.

Financial Highlights

49 data points
Beta

Revenue

$15.56B

84.3% Gross Margin

Net Income

$5.66B

36.4% Net Margin

EPS (Diluted)

$6.29

Total Assets

$100.92B

Cash & Equivalents

$3.38B

Free Cash Flow

$3.09B

Financial Statements
Beta
Revenue$15.56B
Cost of Revenue$2.45B
Gross Profit$13.11B
SG&A Expenses$2.75B
Net Income$5.66B
EPS (Basic)$6.30
EPS (Diluted)$6.29
Shares Outstanding (Basic)897.90M
Shares Outstanding (Diluted)899.80M

Key Highlights

  • 1Revenue increased by 38% to $15.6 billion for the three months ended June 30, 2025, and by 41% to $28.3 billion for the six months ended June 30, 2025, driven by strong volume growth from Mounjaro and Zepbound.
  • 2Net income surged by 91% to $5.7 billion for the three months ended June 30, 2025, and by 62% to $8.4 billion for the six months ended June 30, 2025.
  • 3Diluted Earnings Per Share (EPS) increased significantly, rising by 92% to $6.29 for the quarter and by 62% to $9.35 for the six-month period.
  • 4Gross margin improved to 84.3% for the quarter and 83.5% for the six-month period, up from 80.8% in the prior year, attributed to improved production costs and product mix.
  • 5Research and Development (R&D) expenses increased by 23% for the quarter and 16% for the six-month period, reflecting continued investment in the company's pipeline.
  • 6Marketing, Selling, and Administrative (SG&A) expenses rose by 30% for the quarter and 28% for the six-month period, supporting promotional efforts for current and future product launches.
  • 7The company made strategic acquisitions in July 2025, including Verve Therapeutics for approximately $1.0 billion (potentially up to $1.3 billion) and SiteOne Therapeutics for up to $1.0 billion, to enhance its pipeline in cardiovascular disease and pain management.

Frequently Asked Questions

Eli Lilly's revenue growth was primarily driven by strong volume increases for Mounjaro and Zepbound. The U.S. market was a significant contributor, with both products showing substantial revenue gains. Outside the U.S., Mounjaro also saw significant growth, and a one-time benefit related to an amendment of the Boehringer Ingelheim collaboration for Jardiance also contributed to revenue outside the U.S. during the six-month period.

Profitability improved significantly. Net income more than doubled for the quarter, increasing by 91%, and grew by 62% for the six-month period. This was driven by a substantial increase in gross margin, which rose due to improved production costs and a favorable product mix, despite higher R&D and SG&A expenses related to pipeline expansion and commercialization efforts.

Following the reporting period, Eli Lilly announced and completed the acquisitions of Verve Therapeutics, Inc. in July 2025 for approximately $1.0 billion (with potential for an additional $300 million in contingent value rights), focusing on cardiovascular genetic medicines. Additionally, in July 2025, the company acquired SiteOne Therapeutics, Inc., a pain therapeutics company, for up to $1.0 billion in cash, including upfront and milestone payments, to acquire its Nav1.8 inhibitor for pain.

Eli Lilly's total debt increased to $39.9 billion as of June 30, 2025, primarily due to the issuance of $6.5 billion in fixed-rate notes in February 2025, which were used to fund acquisitions and general business purposes. The company also maintained a robust share repurchase program, repurchasing $1.89 billion in shares during the first six months of 2025 under its $15.00 billion authorization, with $13.11 billion remaining as of June 30, 2025. The company also continued to pay dividends to shareholders.