01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Viatris Inc. reported a net loss of $128.2 milliona, or $(0.11) per diluted share, for the three months ended September 30, 2025, compared with net earnings of $94.8 million, or $0.08 per diluted share, in the prior-year quarter.
Total revenues were $3.76 billionb, essentially flat versus $3.75 billion a year earlier. Earnings from operations fell to $178.8 million from $225.9 million, and the filing attributes the margin pressure primarily to the Indore Impact: an estimated negative effect of approximately $100 million on third-quarter 2025 total revenues, stemming from supply disruptions and an FDA warning letter and import alert at the Indore, India manufacturing facility. The quarter also included a $100.0 million loss from remeasuring the Biocon Biologics CCPS, which drove other expense, net to $67.1 million.
For the nine months ended September 30, 2025, the company recorded a net loss of $3.17 billionc, or $(2.70) per diluted share, driven by a $2.94 billion non-cash goodwill impairment charge taken in the first quarter after a sharp decline in share price and higher discount rates. Total revenues were $10.60 billion, down 5% from $11.21 billion, and net sales declined 6% to $10.56 billion, with the filing citing the divestitures that closed in 2024 and the Indore Impact (approximately $400 million for the nine months). Cash flow from operations was $1.50 billion, down from $1.82 billion.
Cash and cash equivalents rose to $975.3 million, and long-term debt declined to $12.49 billiond from $14.04 billion, partly reclassified to current liabilities due to the 2026 Senior Notes. Shareholder returns continued during the period: the company paid $0.12 per share quarterly dividends and repurchased approximately 45.6 million shares for about $418.3 million in the first nine months.
Subsequent to quarter-end, the company repurchased an additional 8.1 million shares, bringing cumulative repurchases under the $2.0 billion program to approximately $1.00 billion through November 5, 2025. The company also completed the acquisition of Aculys Pharma on October 15, 2025, for a $35.0 million upfront payment to expand its innovative CNS portfolio in Japan.
02—Key points
Key Highlights
- Q3 2025 net loss of $128.2 million, or $(0.11) per diluted share, versus net earnings of $94.8 million, or $0.08 per diluted share, in Q3 2024.
- Nine-month net loss of $3,174.8 million, or $(2.70) per diluted share, including a $2,936.8 million goodwill impairment charge recorded in Q1 2025.
- Total revenues of $3,759.9 million for Q3 2025, essentially flat year over year, with the Indore Impact estimated at approximately $100 million negative for the quarter.
- Other expense, net of $67.1 million in Q3 2025 reflects a $100.0 million loss from remeasuring the CCPS in Biocon Biologics to fair value.
- Cash provided by operating activities was $1.50 billion for the nine months ended September 30, 2025, down from $1.82 billion a year earlier.
- Long-term debt decreased to $12,487.6 million at September 30, 2025, with $1,944.3 million classified as current, including the 2026 Senior Notes.
- Share repurchases totaled approximately 45.6 million shares for $418.3 million in the first nine months, with an additional 8.1 million shares repurchased through November 5, 2025, and quarterly dividends of $0.12 per share continuing.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2025, Viatris lost $0.03.
- Revenue$3.75B100.0%
- Cost of revenue−$2.38B63.4%
- Gross profit$1.37B36.6%
- Operating costs−$1.19B31.8%
- Operating income$178.8M4.8%
- Interest, other & tax−$307.0M8.2%
- Net income−$128.2M3.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.75B$3.74B | +0.3% |
| Cost of Revenue | $2.39B$2.29B | +4.2% |
| Gross Profit | $1.37B$1.46B | −6.0% |
| R&D Expenses | $250.40M$198.40M | +26.2% |
| SG&A Expenses | $886.60M$1.00B | −11.6% |
| Operating Expenses | $1.19B$1.23B | −3.3% |
| Operating Income | $178.80M$225.90M | −20.8% |
| Interest Expense | $119.60M$145.60M | −17.9% |
| Net Income | -$128.20M$94.80M | −235.2% |
| EPS (Basic) | $-0.11$0.08 | −237.5% |
| EPS (Diluted) | $-0.11$0.08 | −237.5% |
| Shares Outstanding (Basic) | 1.16B1.19B | −2.4% |
| Shares Outstanding (Diluted) | 1.16B1.20B | −3.0% |
05—Questions
Frequently Asked Questions
Why did Viatris record a large net loss for the first nine months of 2025?
The net loss of $3,174.8 million was driven mainly by a $2,936.8 million goodwill impairment charge recorded in the first quarter of 2025, following a sharp and sustained decline in the company's share price and increased uncertainty in the operating environment. The filing also notes a $499.8 million loss from remeasuring the Biocon Biologics CCPS investment during the nine months.
What is the Indore Impact and how large is it?
The Indore Impact refers to the estimated negative financial effect of supply disruptions and an FDA warning letter and import alert related to the company's oral finished dose manufacturing facility in Indore, India. The filing estimates a negative impact of approximately $100 million on third-quarter 2025 total revenues and approximately $400 million on total revenues for the nine months ended September 30, 2025, versus the prior year. The company does not expect the impact on fourth-quarter 2025 total revenues and earnings from operations to be material, and anticipates the facility will be ready for FDA reinspection in 2026.
How is Viatris managing its debt and liquidity?
At September 30, 2025, cash and cash equivalents totaled $975.3 million, and the company had $3.5 billion available under the 2024 Revolving Facility, with no borrowings outstanding under it or the Commercial Paper Program. The Receivables Facility, up to $600 million, also had no outstanding borrowings. Long-term debt was $12,487.6 million, and the company stated it was in compliance with its covenants and expected to remain so for the next twelve months.
What did Viatris announce regarding its acquisitions and pipeline?
On October 15, 2025, the company acquired Aculys Pharma, Inc., gaining exclusive development and commercialization rights in Japan for pitolisant and rights to Spydia Nasal Spray in Japan and certain other Asia-Pacific markets, for a $35.0 million upfront payment plus contingent milestones and royalties. The filing also notes an IPR&D asset of approximately $72 million related to pimecrolimus 0.3% ophthalmic ointment, which did not meet its primary endpoint in a Phase 3 study for blepharitis on July 18, 2025.
What are the company's capital return plans?
The Board declared a quarterly cash dividend of $0.12 per share on November 3, 2025, payable December 15, 2025. Under its share repurchase program, which authorizes up to $2.0 billion, the company had repurchased approximately 86.1 million shares for about $918.3 million as of September 30, 2025, and approximately 94.2 million shares for about $1.00 billion through November 5, 2025.
06—Continue