01—Abstract
Summary
Summary of the 10-Q filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.
United Therapeutics Corporation reported third-quarter 2025 total revenues of $799.5 milliona, up from $748.9 million a year earlier, and nine-month revenues of $2,392.5 million, up from $2,141.5 million.
Operating income rose to $388.5 millionb from $343.1 million, and net income was $338.7 million, compared with $309.1 million. Diluted earnings per share were $7.16, versus $6.39 in the prior-year quarter. Tyvaso DPI was the main driver, with third-quarter net product sales of $336.2 million, up from $274.6 million, while Nebulized Tyvaso declined to $141.8 million from $159.2 million.
Net cash provided by operating activities was $1,215.0 millionc for the nine months, compared with $985.9 million a year earlier. The company's cash and marketable investments totaled $4,334.9 million at September 30, 2025, down from $4,742.3 million at December 31, 2024. The decline reflects a $1.0 billion accelerated share repurchase executed in August 2025, purchases of property, plant, and equipment totaling $347.6 million for the nine months, and a $200.0 million revolving credit borrowing that was fully repaid during the second quarter.
The company had no outstanding debt at September 30, 2025 under its $2.5 billiond 2025 Credit Agreement. The filing budgets approximately $520 million for capital expenditures from the fourth quarter of 2025 through 2027, mainly for a new Tyvaso DPI manufacturing facility and designated pathogen-free facilities. Key risks in the filing include the Sandoz litigation, for which the company has accrued $73.3 million and an appeal is pending with oral argument scheduled for November 12, 2025.
Competition from Liquidia's Yutrepia, launched in June 2025, is ongoing, and several patent and trade secret cases with Liquidia remain unresolved. The company also reported that TETON 2, a phase 3 study of Nebulized Tyvaso in idiopathic pulmonary fibrosis, met its primary endpoint, with TETON 1 data expected in the first half of 2026.
02—Key points
Key Highlights
- Total revenues rose 7% to $799.5 million in the third quarter of 2025 and 12% to $2,392.5 million for the nine months, driven by Tyvaso DPI sales growth of 22% in the quarter.
- Net income was $338.7 million in the third quarter, up from $309.1 million, and diluted EPS was $7.16, up from $6.39; nine-month diluted EPS was $20.17, compared with $18.43.
- Nebulized Tyvaso net product sales fell 11% to $141.8 million in the third quarter, due to higher gross-to-net deductions and lower quantities sold.
- The company executed a $1.0 billion accelerated share repurchase in August 2025, with initial share deliveries of 1,274,296 and 849,531 shares, plus an additional 514,789 shares received on August 25, 2025.
- Cash and marketable investments totaled $4,334.9 million at September 30, 2025, down from $4,742.3 million at year-end 2024, and the company had zero debt outstanding under its $2.5 billion revolving credit facility.
- Operating cash flow was $1,215.0 million for the nine months, compared with $985.9 million a year earlier, while purchases of property, plant, and equipment increased to $347.6 million from $159.8 million.
- Litigation remains significant: the Sandoz judgment accrual is $73.3 million with appeal argument set for November 12, 2025, and the Liquidia patent case over Yutrepia awaits a court decision following a June 2025 trial.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, United Therapeutics kept $0.42.
- Revenue$799.5M100.0%
- Cost of revenue−$100.9M12.6%
- Gross profit$698.6M87.4%
- Operating costs−$310.1M38.8%
- Operating income$388.5M48.6%
- Interest, other & tax−$49.8M6.2%
- Net income$338.7M42.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 29, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $799.50M$748.90M | +6.8% |
| Cost of Revenue | $100.90M$83.10M | +21.4% |
| Gross Profit | $698.60M$665.80M | +4.9% |
| R&D Expenses | $127.50M$103.50M | +23.2% |
| SG&A Expenses | $182.60M$219.20M | −16.7% |
| Operating Expenses | $411.00M$405.80M | +1.3% |
| Operating Income | $388.50M$343.10M | +13.2% |
| Net Income | $338.70M$309.10M | +9.6% |
| EPS (Basic) | $7.73$6.93 | +11.5% |
| EPS (Diluted) | $7.16$6.39 | +12.1% |
| Shares Outstanding (Basic) | 43.80M44.60M | −1.8% |
| Shares Outstanding (Diluted) | 47.30M48.40M | −2.3% |
05—Questions
Frequently Asked Questions
How did revenue and profitability change in the third quarter of 2025?
Total revenues increased 7% to $799.5 million from $748.9 million. Operating income rose to $388.5 million from $343.1 million, and net income increased to $338.7 million from $309.1 million. Diluted earnings per share were $7.16, compared with $6.39 a year earlier. Selling, general, and administrative expense fell to $182.6 million from $219.2 million, largely because of a lower litigation accrual in the current quarter.
Which products drove the revenue growth?
Tyvaso DPI was the primary contributor, with third-quarter net product sales of $336.2 million, up 22% from $274.6 million, mainly due to continued patient growth and, to a lesser extent, a price increase. Orenitram sales rose 16% to $131.1 million. Total Tyvaso net product sales grew 10% to $478.0 million. Unituxin sales declined 22% to $47.9 million, and Nebulized Tyvaso sales declined 11% to $141.8 million.
How is the company using its cash, and what is its liquidity position?
The company made a $1.0 billion upfront payment under 2025 accelerated share repurchase agreements in August 2025 and continued capital investment, with purchases of property, plant, and equipment totaling $347.6 million for the nine months. Cash and cash equivalents were $1,340.1 million, and marketable investments totaled $2,994.8 million, for combined cash and marketable investments of $4,334.9 million. The company repaid all borrowings under its credit facilities and had zero outstanding debt at September 30, 2025, with the 2025 Credit Agreement providing up to $2.5 billion. The filing budgets about $520 million in capital expenditures from the fourth quarter of 2025 through 2027, which the company plans to fund with cash on hand.
What are the main litigation and competitive risks?
The Sandoz breach-of-contract judgment resulted in an accrued liability of $73.3 million, with all parties appealing and oral argument scheduled for November 12, 2025. The company says it does not expect losses beyond the accrual to be material, but an adverse appellate outcome could result in damages above the accrued amount. Liquidia's Yutrepia, approved in May 2025 and launched in June 2025, competes directly with Tyvaso DPI and Nebulized Tyvaso, and the company has several pending patent and trade secret matters with Liquidia, including a patent infringement trial in June 2025 with a decision still pending.
What pipeline developments were reported?
The TETON 2 phase 3 study of Nebulized Tyvaso in idiopathic pulmonary fibrosis met its primary endpoint, showing an improvement in absolute forced vital capacity of 95.6 mL relative to placebo at week 52. The company plans to use TETON 2 and the ongoing TETON 1 study to support a supplemental NDA, with TETON 1 data expected in the first half of 2026. The ADVANCE OUTCOMES phase 3 study of ralinepag is expected to release topline data in the first half of 2026, and the company began enrolling and expects the first transplant in its EXPAND xenotransplantation kidney study shortly.
06—Continue