TEVA(US:TEVA)2025-11-05 21:07Revenue Performance - Revenues in Q3 2025 were $4,480 million, a 3% increase in U.S. dollars and 1% in local currency compared to Q3 2024, driven by higher revenues from AUSTEDO and generic products[331] - The U.S. segment generated revenues of $2,483 million, a 12% increase, and segment profit of $937 million, a 25% increase compared to Q3 2024[331] - The Europe segment reported revenues of $1,235 million, a 2% decrease in U.S. dollars and 10% in local currency, with segment profit down 19% compared to Q3 2024[331] - The International Markets segment had revenues of $557 million, a 9% decrease in U.S. dollars and 10% in local currency, with segment profit decreasing by 13% compared to Q3 2024[331] - Total revenues for the company in Q3 2025 were $4,480 million, an increase of 3% in U.S. dollars compared to Q3 2024[415] Profitability Metrics - Gross profit margin improved to 51.4% in Q3 2025, up from 49.6% in Q3 2024[331] - Operating income was $882 million in Q3 2025, compared to an operating loss of $51 million in Q3 2024[331] - Gross profit for the company in Q3 2025 was $2,304 million, a 7% increase from $2,148 million in Q3 2024, with a gross profit margin of 51.4%[417] - In Q3 2025, net income attributable to Teva was $433 million, a significant recovery from a net loss of $437 million in Q3 2024[440] - Profit from the Europe segment decreased by 19% to $303 million in Q3 2025, down from $373 million in Q3 2024, mainly due to lower gross profit and higher S&M expenses[390] Research and Development (R&D) Expenses - R&D expenses increased by 7% to $256 million in Q3 2025, compared to $240 million in Q3 2024[331] - R&D expenses in the U.S. segment for Q3 2025 were $161 million, a 6% increase from $151 million in Q3 2024[368] - R&D expenses for the Europe segment increased by 12% to $62 million in Q3 2025, compared to $55 million in Q3 2024[387] - R&D expenses for the International Markets segment decreased by 4% to $26 million in Q3 2025, compared to $27 million in Q3 2024[407] - Research and development (R&D) expenses for the United States segment in the first nine months of 2025 were $467 million, a 2% decrease from $475 million in the same period of 2024[456] Selling and Marketing (S&M) Expenses - S&M expenses in the U.S. segment for Q3 2025 were $278 million, an 8% increase from $259 million in Q3 2024, mainly due to promotional activities[369] - S&M expenses for the Europe segment rose by 11% to $225 million in Q3 2025, up from $203 million in Q3 2024, driven by exchange rate fluctuations and support for revenue growth[388] - Selling and marketing (S&M) expenses in Q3 2025 were $656 million, a 5% increase compared to Q3 2024[427] Cash Flow and Financial Position - Free cash flow generated in Q3 2025 was $515 million, down from $922 million in Q3 2024, primarily due to lower cash flow from operating activities[331] - Cash and cash equivalents decreased to $2,203 million as of September 30, 2025, down from $3,300 million as of December 31, 2024[516] - Total balance sheet assets increased to $39,856 million as of September 30, 2025, up from $39,326 million as of December 31, 2024[512] - The working capital balance improved to negative $2,419 million as of September 30, 2025, from negative $2,837 million as of December 31, 2024, primarily due to higher inventory levels and increased accounts receivables[513] - Total debt was $16,790 million, a decrease from $17,783 million as of December 31, 2024, mainly due to the repayment of senior notes[519] Currency Exposure - Approximately 41% of revenues in Q3 2025 were denominated in currencies other than the U.S. dollar, exposing the company to significant foreign currency risks[444] - In the first nine months of 2025, approximately 45% of revenues were denominated in currencies other than the U.S. dollar, exposing the company to significant foreign currency risks[506] - Exchange rate movements positively impacted overall revenues by $53 million but negatively impacted operating income by $29 million compared to the first nine months of 2024[508]