Elanco Animal Health 2025 Q3 Earnings Reports Loss as Net Income Plummets 109.5%

Elanco Animal Health (ELAN) reported fiscal 2025 Q3 earnings on November 5, 2025, with revenue exceeding estimates and guidance raised for the year. The company’s stock dropped 5.8% in the latest trading day, reflecting mixed investor sentiment despite strong revenue growth.

Revenue

Elanco’s total revenue rose 10.4% to $1.14 billion in Q3 2025, surpassing the $1.03 billion recorded in the prior-year period. This growth was driven by robust performance in both pet and farm animal segments, supported by innovation in key products like Credelio Quattro and Zenrelia.

Earnings/Net Income

The company swung to a loss of $0.07 per share in Q3 2025, compared to a profit of $0.74 per share in Q3 2024, marking a 109.5% negative change. Net income deteriorated to a $34 million loss, down from $364 million in the prior-year quarter, reflecting significant operational challenges despite revenue gains. The EPS result underscores the widening gap between top-line performance and profitability.

Post-Earnings Price Action Review

Following the earnings release, Elanco’s stock price declined 5.8% during the latest trading day and 4.38% over the past week, though it gained 4.55% month-to-date. The mixed price action highlights investor uncertainty around the company’s ability to translate revenue growth into sustainable profitability.

CEO Commentary

Jeff Simmons, CEO, emphasized the company’s “unrelenting focus on growth, innovation, and cash,” citing 9% organic constant currency revenue growth and momentum in blockbuster products like Credelio Quattro. He also highlighted improved net leverage targets and confidence in the raised full-year outlook, driven by disciplined capital management and product innovation.

Guidance

Elanco raised full-year 2025 revenue guidance to $4.645–$4.670 billion and adjusted EBITDA to $880–$900 million. The company expects Q4 2025 revenue of $1.085–$1.110 billion, with a year-end net leverage ratio of 3.7x–3.8x. Strategic refinancing of a $2.1 billion term loan is anticipated to reduce interest costs and extend maturities through 2032.

Additional News

Within three weeks of the earnings report, Elanco announced the refinancing of its $2.1 billion term loan, extending maturities to 2032 and improving its capital structure. The company also highlighted Credelio Quattro’s $100 million milestone in one country within eight months, positioning it as the fastest pet health blockbuster in its history. Additionally, Elanco reiterated its commitment to innovation, with international approvals for Quattro expected next year, and emphasized the impact of Zinrelia’s growing traction, including a 50% monthly sales increase per clinic since Q1.