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Jun 30
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.
Organon
Organon
Organon Revenue by Segment
Organon Revenue by Geographic Location
Revenue by Segment
Women's Health Revenue
CapyFin.comBiosimilars Revenue
CapyFin.comEstablished Brands Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Europe and Canada Revenue
CapyFin.comUnited States Revenue
CapyFin.comAsia Pacific and Japan Revenue
CapyFin.comChina Revenue
CapyFin.comLatin America, Middle East, Russia, and Africa Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- The guidance for forward-looking IPR&D and milestone expense is not provided, with the $6 million reflecting expense recorded through June 30, 2025.
- Potential for market volatility, economic factors, and regulatory changes to impact actual results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income