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Jun 30, 2025
Organon Q2 2025 Earnings Report
Organon reported a slight revenue decrease and a significant drop in net income for the second quarter of 2025, while non-GAAP adjusted diluted EPS also declined.
Key Takeaways
Organon's second quarter 2025 revenue was $1.594 billion, a 1% decrease from the prior year. Net income significantly declined by 26% to $145 million, with diluted EPS at $0.56. Non-GAAP Adjusted diluted EPS was $1.00, an 11% decrease. The company made progress on debt reduction and affirmed its Adjusted EBITDA margin guidance.
Second quarter 2025 revenue was $1.594 billion, a 1% decrease year-over-year.
Net income for Q2 2025 was $145 million, a 26% decrease from Q2 2024.
Diluted earnings per share (EPS) was $0.56, down 25%, while non-GAAP Adjusted diluted EPS was $1.00, down 11%.
The company repaid $345 million of long-term debt and is on track to achieve a net debt to Adjusted EBITDA ratio of less than 4.0x by year-end.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Organon has raised its full-year 2025 revenue guidance range to $6.275 billion to $6.375 billion, while affirming its Adjusted EBITDA margin guidance at 31.0% to 32.0%.
Positive Outlook
- Nominal revenue growth guidance raised from (4.3%) - (1.2%) to (2.0%) - (0.4%).
- Full year 2025 revenue guidance range raised to $6.275B - $6.375B.
- Adjusted gross margin guidance affirmed at 60.0%-61.0%.
- Adjusted EBITDA margin (Non-GAAP) guidance affirmed at 31.0%-32.0%.
- SG&A, R&D, IPR&D, Interest, Depreciation, Effective non-GAAP tax rate, and Fully diluted weighted average shares outstanding guidance remain unchanged.
Challenges Ahead
- FX translation headwind guidance changed from ~$200M to ~$50M, still a headwind.
- Ex-FX revenue growth guidance changed from (1.2%) - 1.9% to (1.2%) - 0.3%, indicating a narrower and potentially lower growth range.
- The company does not provide GAAP financial measures on a forward-looking basis due to uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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