01—Abstract
Summary
Summary of the 10-Q filed May 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Viatris Inc. reported a net loss of $3.04 billiona, or $(2.55) per diluted share, for the three months ended March 31, 2025, compared with net earnings of $113.9 million, or $0.09 per diluted share, a year earlier.
The result was driven by a non-cash goodwill impairment charge of $2.94 billionb, recorded after an interim impairment test triggered by a sharp and sustained decline in the share price since the end of February 2025 and increased geopolitical and economic uncertainty. Total revenues fell to $3.25 billion from $3.66 billion, a decrease of $409.1 million, with the company attributing the decline to divestitures closed in 2024 and the Indore Impact, which it estimates at approximately $140 million in first-quarter 2025 revenues. Loss from operations was $(2.88) billion versus earnings of $203.9 million a year earlier.
Adjusted EBITDA was $923.5 millionc versus $1.19 billion, and adjusted EPS was $0.50 versus $0.67. Operating cash flow was $535.5 million, down from $614.6 million. Cash and cash equivalents were $755.0 million at March 31, 2025, and total long-term debt was $14.18 billion.
Goodwill fell to $6.46 billiond, and the North America, Europe, Emerging Markets and JANZ reporting units now have carrying values equal to fair value, so further impairments could be material. The filing also discloses an April 2025 opioid settlement framework of up to $335 million, which is accrued at March 31, 2025.
The company guided that the Indore Impact could reduce 2025 total revenues by approximately $500 million and 2025 earnings from operations by approximately $385 million. It also disclosed that it repurchased $175.4 million of shares in the quarter, declared a $0.12 quarterly dividend, and expects capital expenditures of $300 million to $400 million for calendar 2025.
02—Key points
Key Highlights
- Net loss of $3.04 billion, or $(2.55) per diluted share, versus net earnings of $113.9 million ($0.09 per diluted share) in the prior-year quarter, driven primarily by the goodwill impairment.
- Goodwill impairment charge of $2.94 billion from an interim test as of March 31, 2025, with North America ($707.0 million), Europe ($1,554.0 million), JANZ ($300.8 million) and Emerging Markets ($375.0 million) affected.
- Total revenues of $3.25 billion, down $409.1 million, or 11%, from $3.66 billion; net sales fell to $3.24 billion, with the decline attributed to 2024 divestitures and the Indore Impact.
- Indore manufacturing facility: FDA warning letter and import alert; the company estimates a 2025 total revenue impact of approximately $500 million and an earnings from operations impact of approximately $385 million.
- Adjusted EBITDA of $923.5 million versus $1.19 billion, and adjusted EPS of $0.50 versus $0.67 in the prior-year quarter.
- Operating cash flow of $535.5 million versus $614.6 million; cash and cash equivalents of $755.0 million; long-term debt of $14.18 billion.
- Opioid settlement framework of up to $335 million over nine years, with $335 million accrued at March 31, 2025; a $73.5 million gain on litigation settlements and contingencies, net, mainly from a $133.7 million fair value gain on contingent consideration.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2025, Viatris lost $0.94.
- Revenue$3.24B100.0%
- Cost of revenue−$2.08B64.2%
- Gross profit$1.16B35.8%
- Operating costs−$4.04B124.7%
- Operating income−$2.88B88.9%
- Interest, other & tax−$159.8M4.9%
- Net income−$3.04B93.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 8, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.24B$3.65B | −11.2% |
| Cost of Revenue | $2.09B$2.16B | −3.1% |
| Gross Profit | $1.16B$1.50B | −22.8% |
| R&D Expenses | $222.00M$199.70M | +11.2% |
| SG&A Expenses | $948.10M$1.02B | −6.8% |
| Operating Expenses | $4.04B$1.30B | +211.0% |
| Operating Income | -$2.88B$203.90M | −1513.5% |
| Interest Expense | $115.50M$138.40M | −16.5% |
| Net Income | -$3.04B$113.90M | −2770.8% |
| EPS (Basic) | $-2.55$0.10 | −2650.0% |
| EPS (Diluted) | $-2.55$0.09 | −2933.3% |
| Shares Outstanding (Basic) | 1.19B1.20B | −0.2% |
| Shares Outstanding (Diluted) | 1.19B1.21B | −1.4% |
05—Questions
Frequently Asked Questions
Why did Viatris report a net loss this quarter?
The net loss of $3.04 billion was driven mainly by a non-cash goodwill impairment charge of $2.94 billion recorded in the first quarter of 2025. The company said the charge followed a sharp and sustained decline in its share price since late February 2025 and greater uncertainty in the geopolitical and economic environment. A $115.8 million loss from remeasuring the Biocon Biologics CCPS also weighed on other expense.
How much did revenue decline, and what caused it?
Total revenues were $3.25 billion, down $409.1 million, or 11%, from $3.66 billion. The filing attributes the decline to net sales lost from divestitures closed during 2024 and to the Indore Impact, which the company estimated at approximately $140 million for the quarter. On a constant currency basis, net sales from the remaining business decreased by approximately $87.8 million, or 2%.
What is the outlook for the Indore facility?
The FDA issued a warning letter and an import alert for the Indore oral finished dose facility, affecting 11 actively distributed products in the U.S. The company estimates the negative impact on 2025 total revenues at approximately $500 million and on 2025 earnings from operations at approximately $385 million. It also said it has submitted responses to the FDA within the required periods.
Does the goodwill impairment mean more charges could follow?
The filing says that, because the carrying values of the impaired reporting units now equal their estimated fair values, further impairment charges may be necessary in future periods if market conditions or projected results worsen, and that any such charges could be material. The Greater China reporting unit's fair value exceeded its carrying value by approximately $322.0 million, or 5.8%, and a 1.0% increase in the discount rate would trigger an impairment there.
What capital return and liquidity actions did the company take?
Viatris repurchased approximately 18.6 million shares for $175.4 million during the quarter and paid $143.3 million in cash dividends. It declared a quarterly dividend of $0.12 per share on May 5, 2025, payable June 16, 2025. The 2024 Revolving Facility provides $3.5 billion of availability, with no borrowings outstanding at March 31, 2025, and the company said it is in compliance with its covenants.
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