Illumina Reports Financial Results for Second Quarter of Fiscal Year 2025

Original from: Illumina

· Revenue of $1.06 billion for Q2 2025, down 3% from Q2 2024 on both a reported and constant currency basis

· GAAP operating margin of 20.2% and non-GAAP operating margin of 23.8% for Q2 2025

· GAAP diluted EPS of $1.49 and non-GAAP diluted EPS of $1.19 for Q2 2025

· Cash provided by operations of $234 million and free cash flow of $204 million for Q2 2025

· For fiscal year 2025, we now expect:

 - Total company constant currency revenue decline in the range of (2.5%) to (0.5%), up from (3%) to (1%) previously

 - Non-GAAP operating margin of approximately 22% - 22.5%, up from 21.5% - 22.0% previously

 - Non-GAAP diluted EPS in the range of $4.45 - $4.55, an increase from our May guidance of $4.20 - $4.30. This includes a benefit of approximately 10 cents from recently passed legislation that allows U.S. based R&D spend to be tax-deductible

· In the quarter, repurchased approximately 4.5 million shares of Illumina stock for $380 million at an average price of $84.66 per share

· Entered into a definitive agreement to acquire SomaLogic from Standard BioTools; transaction expected to close in the first half of 2026, subject to regulatory approval

Illumina, Inc. (Nasdaq: ILMN) ("Illumina" or the "company") today announced its financial results for the second quarter of fiscal year 2025.

"The Illumina team again delivered results that exceeded our guidance, driven by the continued ramp in X consumables, as well as accelerating growth in clinical, our largest customer segment," said Jacob Thaysen, Chief Executive Officer. "In research, we are actively helping our customers navigate a constrained funding environment. Even in these challenging conditions, the team's focus on operational excellence helped drive margin expansion, enabling us to increase our expectations for the year."

Second quarter Core Illumina segment results

Capital expenditures for free cash flow purposes were $30 million for Q2 2025. Cash flow provided by operations was $234 million, compared to $243 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $204 million for the quarter, compared to $213 million in the prior year period. Depreciation and amortization expense was $68 million for Q2 2025. At the close of the quarter, the company held $1.16 billion in cash, cash equivalents and short-term investments.

Share repurchases for Q2 2025 were $380 million and the company intends to repurchase incremental shares over the course of the year as part of our approximate $800 million authorization remaining at the end of the quarter.

Key announcements since our last earnings release

· Launched TruSight Oncology 500 version 2 (TSO 500 v2), an updated version of Illumina's comprehensive genomic profiling assay for cancer research

· TIME named Illumina to its World's Most Sustainable Companies list for the second year in a row, and U.S. News & World Report named Illumina to its Best Companies to Work For list

· Entered into a definitive agreement with Standard BioTools under which Illumina will acquire SomaLogic and other specified assets

· Unveiled PromoterAI, a new AI algorithm that accurately deciphers pathogenic regulatory genetic variants in the noncoding regions of the human genome

· Received approval from Japan's Ministry of Health, Labour and Welfare (MHLW) for TruSight™ Oncology (TSO) Comprehensive for Class III/IV Medical Device (Specially Controlled Medical Device)

· Launch of DRAGEN™ v4.4 software, the industry's most comprehensive secondary analysis solution powering clinical oncology research and multiomic applications

A full list of recent announcements can be found in the company's News Center.

Financial outlook and guidance

The company provides forward-looking guidance on a non-GAAP basis, including on a constant currency basis for revenue and revenue growth rates. The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures because it is unable to predict with reasonable certainty the impact of items such as acquisition-related expenses, fair value adjustments to contingent consideration, gains and losses from strategic investments, potential future asset impairments, restructuring activities, the ultimate outcome of pending litigation, and currency exchange rate fluctuations without unreasonable effort. These items are uncertain, inherently difficult to predict, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the company is unable to address the significance of the unavailable information, which could be material to future results.

Source: Illumina Reports Financial Results for Second Quarter of Fiscal Year 2025