Regeneron Pharmaceuticals (REGN) Financials

Regeneron Pharmaceuticals (NASDAQ: REGN) has shown a positive financial trajectory over the past four years, with consistent revenue growth and strong profitability. Here are the key points from the financial statements analysis:

• Total operating revenue increased from approximately $2.93 billion in Q3 2022 to $3.68 billion in Q2 2025, demonstrating solid top-line growth.
• Net income has risen steadily from around $968 million in Q2 2023 to about $1.39 billion in Q2 2025, indicating improved profitability.
• Gross profit margins remain strong, with total gross profit consistently exceeding $2.9 billion and reaching $3.15 billion in Q2 2025.
• Research and development expenses have increased but remain well-covered by rising revenues, reflecting continued investment in innovation.
• Operating income has grown from $1.02 billion in Q2 2023 to over $1.07 billion in Q2 2025, pointing to effective operating leverage.
• Depreciation and amortization expenses have risen modestly, reflecting ongoing investment in plant, property, and equipment.
• Tax expenses show fluctuations but maintain a reasonable proportion of pre-tax income, with some quarters showing tax credits or minimal expense.
• Cash from operating activities has remained robust, with a notable $1.14 billion generated in Q2 2025, supporting strong operational cash flow.
• Significant cash outflows in investing activities, mostly due to large purchases of investments exceeding $2.8 billion in Q2 2025, which may impact liquidity.
• Continuing repurchases of common equity (~$1.06 billion in Q2 2025) and dividend payments (~$92.6 million in Q2 2025) indicate distributions to shareholders but raise concerns on cash conservation.

Balance sheet highlights include a solid asset base that has grown from about $27.7 billion at Q3 2022 to $38.2 billion by Q2 2025, driven by increases in current assets such as cash, investments, and accounts receivable. Total liabilities have risen moderately, and total equity has expanded, underlining financial strength and shareholder value growth.

Overall, Regeneron exhibits strong financial health with increasing revenues and profitability, supported by healthy operating cash flow. The company’s investments in R&D and fixed assets suggest a commitment to long-term growth, although significant investing outflows and share repurchases highlight areas to monitor regarding cash management.