Indivior PLC(INDV) - 2025 Q2 - Quarterly Results

Q2 2025 Performance and FY 2025 Outlook Q2 2025 Business Highlights Indivior reported strong Q2 2025 results, driven by SUBLOCADE® revenue growth and key strategic initiatives SUBLOCADE® Q2 2025 Net Revenue Performance | Metric | Q2 2025 | Change (YoY) | Change (vs Q1'25) | | :--- | :--- | :--- | :--- | | Total SUBLOCADE® NR | $209m | +9% | +19% | | U.S. SUBLOCADE® NR | $195m | +9% | +20% | - Initiated the 'Indivior Action Agenda' focusing on U.S. SUBLOCADE growth and reducing organizational complexity to support long-term growth and cash generation[2][3] - Completed the cancellation of its London Stock Exchange (LSE) listing to trade exclusively on Nasdaq, aligning with its focus on U.S. SUBLOCADE growth[3] - Introduced Adjusted EBITDA as a new key profitability measure, replacing Non-GAAP Operating Income, to better reflect operating results and cash generation[4][12] Revised FY 2025 Financial Guidance Indivior raised its FY 2025 guidance for revenue and Adjusted EBITDA, reflecting strong performance and stabilized SUBOXONE® Film pricing FY 2025 Guidance Revision | Metric | Prior Guidance (Mid-point) | Revised Guidance (Mid-point) | Change (Mid-point) | | :--- | :--- | :--- | :--- | | Net Revenue (NR) | $990m | $1,055m | +$65m | | SUBLOCADE® NR | $745m | $775m | +$30m | | Adjusted EBITDA | $240m | $287.5m | +$47.5m | - The outlook for SUBOXONE® Film has improved from an 'accelerating NR decline' to a 'more moderated NR decline' due to pricing stabilization in the U.S. generic market[5] Q2 2025 Detailed Financial Results Q2 2025 total net revenue grew to $302 million, with net income improving to $18 million and cash reaching $538 million Q2 2025 Financial Summary vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Net Revenue | $302m | $299m | | U.S. Net Revenue | $256m | $255m | | Gross Margin | 83% | 74% | | Net Income (Loss) | $18m | $(97)m | | Diluted EPS (Loss) | $0.14 | $(0.72) | | Adjusted EBITDA | $88m | $93m | - The slight increase in U.S. net revenue was driven by SUBLOCADE volume growth, which offset the decline in SUBOXONE Film and the discontinuation of PERSERIS[8] - R&D expense decreased by 20% to $21 million, reflecting a refocusing of the pipeline on existing Phase 2 OUD assets[8] - Cash and investments totaled $538 million at quarter-end, an increase of $191 million from the end of 2024[8] Financial Statements Condensed Consolidated Statements of Operations Indivior reported Q2 2025 net income of $18 million, a significant improvement from Q2 2024's net loss Condensed Consolidated Statements of Operations (Unaudited, in millions) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net revenue | $302 | $299 | $568 | $583 | | Gross profit | $250 | $220 | $472 | $466 | | Litigation settlement | $— | $160 | $1 | $160 | | Operating income (loss) | $72 | $(118) | $138 | $(43) | | Income (loss) before income taxes | $62 | $(121) | $121 | $(48) | | Net income (loss) | $18 | $(97) | $65 | $(36) | | Diluted EPS (loss) | $0.14 | $(0.72) | $0.52 | $(0.27) | Condensed Consolidated Balance Sheets Total assets reached $1.45 billion as of June 30, 2025, with cash and equivalents increasing to $510 million Condensed Consolidated Balance Sheets (Unaudited, in millions) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $951 | $827 | | Total assets | $1,452 | $1,316 | | Total current liabilities | $1,056 | $924 | | Total liabilities | $1,709 | $1,652 | | Total shareholders' deficit | $(257) | $(337) | | Cash and cash equivalents | $510 | $319 | Condensed Consolidated Statements of Cash Flows Net cash from operating activities significantly improved to $233 million for H1 2025, resulting in a $510 million cash balance Condensed Consolidated Statements of Cash Flows (Unaudited, in millions) | Six Months Ended June 30, | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $233 | $51 | | Net cash (used in) provided by investing activities | $(22) | $26 | | Net cash used in financing activities | $(22) | $(91) | | Net increase (decrease) in cash and cash equivalents | $189 | $(14) | | Cash and cash equivalents at end of period | $510 | $302 | Reconciliation of GAAP to Non-GAAP Measures Selected Revenue and Expense Information Q2 2025 revenue breakdown highlights U.S. SUBLOCADE® revenue at $195 million and increased selling and marketing expenses Net Revenue by Product/Region (in millions) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | US SUBLOCADE* | $195 | $179 | | US Sublingual & other | $52 | $63 | | Total U.S. | $256 | $255 | | Rest of World | $46 | $44 | | Total Net Revenue | $302 | $299 | Reconciliation of GAAP to Non-GAAP Financial Information Q2 2025 non-GAAP net income was $64 million (vs GAAP $18 million), adjusted for share-based compensation and other costs Q2 2025 GAAP to Non-GAAP Net Income Reconciliation (in millions) | | Amount | | :--- | :--- | | GAAP net income | $18 | | Adjustments in cost of sales | $2 | | Adjustments in SG&A | $12 | | Adjustments in interest expense | $4 | | Adjustments in tax expenses | $28 | | Non-GAAP net income | $64 | - Non-GAAP diluted EPS for Q2 2025 was $0.51, compared to $0.48 in Q2 2024[39] Adjusted EBITDA Reconciliation Indivior adopted Adjusted EBITDA as a key non-GAAP measure, reporting $88 million for Q2 2025 reconciled from GAAP net income Q2 2025 Net Income to Adjusted EBITDA Reconciliation (in millions) | | Amount | | :--- | :--- | | Net income | $18 | | Interest (income) | $(6) | | Interest expense | $15 | | Income tax expense | $44 | | Depreciation and amortization | $3 | | Share-based compensation expense | $8 | | Manufacturing transition | $2 | | Corporate initiative transition | $4 | | Adjusted EBITDA | $88 | - The company provided supplemental historical Adjusted EBITDA, showing $93 million for Q2 2024 and $358 million for the full year 2024[44]