01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Teva Pharmaceutical Industries Limited reported second-quarter 2025 net revenues of $4.18 billiona, flat in U.S. dollars and down 1% in local currency, with the decline mainly attributed to the divestment of its Japan business venture, lower U.S. generic and COPAXONE revenues, partially offset by growth in AUSTEDO, AJOVY and UZEDY.
Operating income was $455 millionb versus an operating loss of $5 million a year earlier, which included a $400 million goodwill impairment. Net income attributable to Teva was $282 million, or $0.24 diluted EPS, compared with a net loss of $846 million in the prior-year quarter, which was driven largely by a $630 million income tax expense. For the six months ended June 30, 2025, revenues were $8.07 billion, up 1%, and net income attributable to Teva was $497 million, or $0.43 diluted EPS.
Cash and cash equivalents fell to $2.16 billionc from $3.30 billion at year-end 2024, while total debt was $17.23 billion, compared with $17.78 billion at December 31, 2024. During the quarter the company issued $2.31 billion of senior notes and repurchased $2.29 billion of notes through a tender offer. Total equity rose to $6.83 billion, and the company's API business is classified as held for sale.
Management reports that the second quarter included $166 milliond of legal settlements and loss contingencies and $154 million of restructuring expenses tied to its Transformation programs, which are expected to reduce the workforce by approximately 8% by the end of 2027. The filing also states that the company cannot currently pay dividends or repurchase shares because of its accumulated deficit.
02—Key points
Key Highlights
- Q2 2025 revenues of $4,176 million were flat in U.S. dollars and down 1% in local currency versus Q2 2024.
- Operating income of $455 million in Q2 2025, compared with an operating loss of $5 million in Q2 2024, which included a $400 million goodwill impairment.
- Diluted EPS of $0.24 for Q2 2025 versus a diluted loss of $0.75 a year earlier; six-month diluted EPS was $0.43.
- U.S. segment revenues rose 2% to $2,151 million and segment profit rose 12% to $706 million, driven by AUSTEDO, UZEDY and AJOVY.
- Cash flow from operating activities was $227 million in Q2 2025 versus $103 million a year earlier; free cash flow was $476 million.
- Total debt was $17,227 million at June 30, 2025, down from $17,783 million at December 31, 2024, after $1,368 million of maturities and a $2,290 million tender offer, funded in part by $2,305 million of new senior notes.
- Transformation programs announced May 7, 2025 are expected to reduce the workforce by approximately 8% by end-2027; Q2 restructuring expenses were $154 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Teva Pharmaceutical Industries kept $0.07.
- Revenue$4.18B100.0%
- Cost of revenue−$2.07B49.7%
- Gross profit$2.10B50.3%
- Operating costs−$1.65B39.4%
- Operating income$455.0M10.9%
- Interest, other & tax−$173.0M4.1%
- Net income$282.0M6.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $4.18B$4.16B | +0.3% |
| Cost of Revenue | $2.07B$2.14B | −3.1% |
| Gross Profit | $2.10B$2.02B | +3.9% |
| Operating Income | $455.00M-$5.00M | +9200.0% |
| Net Income | $282.00M-$846.00M | +133.3% |
| EPS (Basic) | $0.25$-0.75 | +133.3% |
| EPS (Diluted) | $0.24$-0.75 | +132.0% |
| Shares Outstanding (Basic) | 1.15B1.13B | +1.2% |
| Shares Outstanding (Diluted) | 1.16B1.13B | +2.5% |
05—Questions
Frequently Asked Questions
Why did Teva swing to a net profit in Q2 2025 after a large loss in Q2 2024?
The filing states that the prior-year loss was mainly due to higher income taxes in Q2 2024, which included a $630 million tax expense tied to the agreement with the Israeli Tax Authorities, and to a $400 million goodwill impairment for the API reporting unit. In Q2 2025, Teva recorded a $78 million tax benefit on pre-tax income of $203 million and no goodwill impairment.
How is Teva managing its debt and liquidity?
In Q2 2025 Teva issued $2,305 million of senior notes, including EUR 1,000 million and USD 700 million and USD 500 million tranches, and repurchased $2,290 million of notes through a cash tender offer. The company stated that no amounts were outstanding under its $1.8 billion revolving credit facility as of June 30, 2025 or the filing date, and that it expects to meet debt service obligations within one year.
What are the main legal and financial risks flagged in the filing?
Q2 2025 legal settlements and loss contingencies were $166 million, mainly related to an update to the opioid settlement provision, the generic drug antitrust litigation with state attorneys general, and a QVAR antitrust provision. The filing states that the provision for legal settlements and loss contingencies was $5,002 million as of June 30, 2025, and that adverse outcomes could be material.
What is the status of the API business and the Japan venture?
The API business is classified as held for sale, with assets of $1,842 million and liabilities of $334 million as of June 30, 2025. The Japan business venture was divested on March 31, 2025, with the company recording a marginal gain in the first quarter. The filing notes there can be no assurance regarding the timing or completion of a potential API divestiture.
06—Continue