Raising Full Year Outlook and Innovation Target, Improving Year-End Net Leverage Ratio Target
- Third Quarter 2025 Financial Results:
- Revenue of $1,137 million, an increase of 10% year-over-year; 9% organic constant currency growth
- Reported Net Loss of $34 million, Adjusted Net Income of $94 million
- Adjusted EBITDA of $198 million; Adjusted EBITDA Margin of 17.5%
- Reported EPS of $(0.07), Adjusted EPS of $0.19
- Net leverage ratio of 3.7x Adjusted EBITDA
- Full Year 2025 Guidance:
- Raising revenue guidance to $4,645 million to $4,670 million; expect accelerating organic constant currency revenue growth of 6% to 6.5% vs. 3% in 2024
- Raising 2025 innovation revenue target by $100 million at the midpoint of the range to $840 to $880 million
- Reported Net Loss of $56 million to $41 million, raising guidance for Adjusted EBITDA to $880 million to $900 million
- Reported Loss Per Share of $0.11 to $0.08, raising guidance for Adjusted EPS to $0.91 to $0.94
- 2025 year-end net leverage ratio target improved to 3.7x to 3.8x, enabled by year-to-date execution and disciplined working capital management
Indianapolis, Ind (November 5, 2025) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the third quarter of 2025, provided guidance for the fourth quarter of 2025, and updated guidance for the full year 2025.
"Thank you to our global team and customers as Elanco delivered strong results ahead of expectations, with an unrelenting focus on growth, innovation, and cash," said Jeff Simmons, President and CEO of Elanco. "Organic constant currency revenue growth of 9% reflects the outperformance of our diverse portfolio of innovation on a stabilizing base business. We are raising our full year innovation revenue target with positive momentum for Credelio Quattro, Experior, AdTab, and Zenrelia. We are also improving our year-end net leverage ratio target, having already achieved 3.7x. Our commitment to our IPP strategy is translating into consistent execution and confidence in our raised full-year outlook amidst a dynamic backdrop. We look forward to hosting the investment community on December 9th, to define Elanco's new era of growth with significant opportunity for long-term shareholder value creation."
Select Business Highlights Since the Last Earnings Call
- Credelio Quattro™ achieved continued dollar share gains of broad-spectrum sales out of U.S. vet clinics in Q3**; reached $100 million in net sales in fewer than eight months, making it Elanco's fastest pet health blockbuster in history and one of the industry's fastest ever; highest puppy index versus other broad-spectrum endectos***
- Zenrelia™ global sales nearly doubled versus Q2 2025; estimated market share ~5% based on Elanco analysis in countries where launched; U.S. label updated to remove vaccine-induced disease language, and additional data submitted to FDA addressing vaccination response; launched in the EU, Great Britain, and Australia with a label consistent with other international markets where the product has already been approved
- Experior® Q3 sales up approximately 70% year over year; AdTab™ continued robust growth trajectory with Q3 sales up over 25% year over year
- Successfully completed refinancing of $2.1 billion Term Loan B debt facility; refinancing activity improves Elanco's debt portfolio's maturity risk profile and reduces interest cost
- Opened Elanco's new global headquarters in downtown Indianapolis: a vibrant destination designed to foster collaboration, enable innovation, attract top talent, and serve as the heart of the OneHealth
Innovation District
**Per Kynetec Q3 data
***Kynetec Puppy Index, September YTD
