01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Teva Pharmaceutical Industries Limited's first-quarter 2025 Form 10-Q reports net revenues of $3,891 milliona, up 2% in U.S. dollars (5% in local currency) from $3,819 million a year earlier.
Gross profit rose to $1,877 millionb, with gross margin of 48.2% versus 46.4%, and operating income swung to $519 million from an operating loss of $218 million in the prior-year quarter, which had included $673 million of other asset impairments, restructuring and other items. Net income attributable to Teva was $214 million, or $0.18 diluted EPS, compared with a net loss of $139 million, or $(0.12) per share, a year earlier. The United States segment drove the improvement, with revenues of $1,910 million (up 11%) and segment profit of $532 million (up 52%), largely on AUSTEDO and UZEDY growth and a more favorable product mix.
Europe revenues fell 6% to $1,194 millionc and segment profit fell 22% to $329 million, while International Markets revenues were $582 million and segment profit was $97 million. Cash used in operating activities was $105 million, and free cash flow was $107 million. Total debt declined to $16,651 million from $17,783 million after $1,368 million of senior note repayments at maturity.
Cash fell to $1,697 milliond from $3,300 million at year-end. The balance sheet reflects the held-for-sale classification of the API business, with assets held for sale of $1,814 million and liabilities held for sale of $358 million, and the completed sale of the Teva-Takeda business venture in Japan on March 31, 2025.
Total equity rose to $6,269 million from $5,380 million, aided by a $467 million positive currency translation effect. The filing notes ongoing significant litigation, including opioid settlements, antitrust matters and a European Commission COPAXONE fine appeal, and states that the company cannot currently pay dividends or repurchase shares due to its accumulated deficit.
02—Key points
Key Highlights
- Net revenues were $3,891 million, up 2% in U.S. dollars and 5% in local currency versus Q1 2024.
- Operating income was $519 million, compared with an operating loss of $218 million in Q1 2024; gross profit margin improved to 48.2% from 46.4%.
- Net income attributable to Teva was $214 million, with diluted EPS of $0.18, versus a net loss of $139 million and diluted loss per share of $(0.12) a year earlier.
- United States segment revenues rose 11% to $1,910 million and segment profit rose 52% to $532 million, driven by AUSTEDO and UZEDY.
- Europe segment profit declined 22% to $329 million on lower COPAXONE revenues and a negative hedging impact on gross margin.
- Total debt decreased to $16,651 million from $17,783 million after $1,368 million of senior note repayments; cash and cash equivalents fell to $1,697 million from $3,300 million.
- Operating cash flow was negative $105 million; free cash flow was $107 million, aided by $322 million of beneficial interest collected on securitized receivables and $17 million of divestiture proceeds.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Teva Pharmaceutical Industries kept $0.05.
- Revenue$3.89B100.0%
- Cost of revenue−$2.01B51.8%
- Gross profit$1.88B48.2%
- Operating costs−$1.36B34.9%
- Operating income$519.0M13.3%
- Interest, other & tax−$305.0M7.8%
- Net income$214.0M5.5%
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 | $3.89B$3.82B | +1.9% |
| Cost of Revenue | $2.01B$2.05B | −1.7% |
| Gross Profit | $1.88B$1.77B | +6.0% |
| Operating Income | $519.00M-$218.00M | +338.1% |
| Net Income | $214.00M-$139.00M | +254.0% |
| EPS (Basic) | $0.19$-0.12 | +258.3% |
| EPS (Diluted) | $0.18$-0.12 | +250.0% |
| Shares Outstanding (Basic) | 1.14B1.12B | +1.3% |
| Shares Outstanding (Diluted) | 1.16B1.12B | +3.2% |
05—Questions
Frequently Asked Questions
Why did Teva swing from an operating loss to operating income year over year?
The prior-year quarter included $673 million of other asset impairments, restructuring and other items, mainly from classifying the Japan business venture as held for sale. In Q1 2025 that line was a net income of $22 million, driven by a favorable $44 million tangible asset impairment adjustment tied to the API business held for sale, alongside higher gross profit.
What is the status of the API business divestiture?
Teva classified its API business as held for sale on December 31, 2024, with assets of $1,814 million and liabilities of $358 million at March 31, 2025. The filing states there can be no assurance regarding the timing or structure of a potential divestiture or whether it will be completed at all.
Can Teva pay dividends or repurchase shares currently?
No. The filing states Teva did not repurchase shares in Q1 2025 and currently cannot conduct share repurchases or pay dividends due to its accumulated deficit. Teva has not paid dividends on its ordinary shares or ADSs since December 2017.
How is Teva's debt maturing and how does its liquidity look?
Total debt was $16,651 million, with 3% classified as short-term, and average debt maturity of approximately 5.7 years. Teva repaid $1,368 million of senior notes at maturity in Q1 2025. The $1.8 billion revolving credit facility was undrawn at March 31, 2025, and the company expects to remain in compliance with its covenants and to have sufficient cash resources within one year.
What are the most significant legal exposures disclosed?
The filing discloses opioid settlement payments, with estimated cash payments of $423 million in 2025 and $363 million in 2026, and a European Commission COPAXONE fine of euro 462.6 million under appeal. It also describes numerous antitrust, product liability and patent matters, and states that an adverse outcome in some cases could be material to results of operations and cash flows.
06—Continue