Exhibit 99.1
 | |||||
AMNEAL REPORTS THIRD QUARTER 2025 FINANCIAL RESULTS
‒ Q3 2025 Net Revenue of $785 million; GAAP Net Income of $2 million; Diluted Income per Share of $0.01 ‒
‒ Adjusted EBITDA of $160 million; Adjusted Diluted EPS of $0.17 ‒
‒ Updated 2025 Full Year Guidance ‒
BRIDGEWATER, NJ, October 30, 2025 - Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) (“Amneal” or the “Company”) today announced its results for the third quarter ended September 30, 2025.
“Amneal delivered another strong quarter and updated our 2025 outlook, underscoring the strength of our diversified business and the ongoing evolution of our portfolio. CREXONT® for Parkinson’s disease and other key branded products continue to drive Specialty growth, complemented by the launch this month of BREKIYA® in the migraine space. At the same time, our Affordable Medicines segment is entering a significant new product launch cycle, with multiple complex approvals this quarter and numerous new key launches expected ahead. Together with our recent refinancing, Amneal is closing 2025 and entering 2026 from a position of strength and momentum,” said Chirag and Chintu Patel, Co-Chief Executive Officers.
Third Quarter 2025 Results
Net revenue in the third quarter of 2025 was $785 million, an increase of 12% compared to $702 million in the third quarter of 2024. Specialty net revenue increased 8% driven by key branded products, including CREXONT® and UNITHROID®. Affordable Medicines net revenue increased 8% driven by strong performance of our complex product portfolio and new product launches. AvKARE net revenue increased 24% driven by growth in the government label sales channel.
Net income attributable to Amneal Pharmaceuticals, Inc. was $2 million in the third quarter of 2025 compared to a net loss of $0.2 million in the third quarter of 2024, reflecting higher revenue and gross profit, partially offset by higher operating expense.
Adjusted EBITDA in the third quarter of 2025 was $160 million, an increase of 1% compared to the third quarter of 2024, reflective of higher revenue and gross profit, partially offset by increased commercial investments to support the CREXONT® and BREKIYA® autoinjector launches and a slight increase in research and development expenses, which included a $22.5 million milestone related to the U.S. Food and Drug Administration Biologics License Application submission of biosimilar candidate to XOLAIR®.
Diluted income per share in the third quarter of 2025 was $0.01 compared to diluted loss per share of $0.00 for the third quarter of 2024, due to the aforementioned factors. Adjusted diluted earnings per share in the third quarter of 2025 was $0.17, an increase of 6% compared to $0.16 for the third quarter of 2024.
The Company presents GAAP and adjusted (non-GAAP) quarterly results. Please refer to the “Non-GAAP Financial Measures” section and the accompanying GAAP to non-GAAP reconciliation tables for more information.
Updated 2025 Full Year Guidance
Updated Guidance | Prior Guidance | |||||||
| Net revenue | $3.0 billion - $3.1 billion | $3.0 billion - $3.1 billion | ||||||
Adjusted EBITDA (1) | $675 million - $685 million | $665 million - $685 million | ||||||
Adjusted diluted EPS (2) | $0.75 - $0.80 | $0.70 - $0.75 | ||||||
Operating cash flow | $300 million - $330 million | $275 million - $305 million | ||||||
Operating cash flow, excluding discrete items (3) | $300 million - $330 million | $300 million - $330 million | ||||||
Capital expenditures (4) | Approximately $100 million | Approximately $100 million | ||||||
(1)Includes 100% of adjusted EBITDA from AvKARE. See also “Non-GAAP Financial Measures” below.
1
(2)Accounts for 35% non-controlling interest in AvKARE. Guidance assumes approximately 325 million weighted-average diluted shares outstanding for the year ending December 31, 2025.
(3)Excludes discrete items such as legal settlement payments.
(4)Reflects estimated capital expenditures, net of expected contributions from an alliance party of $20 million.
Amneal’s 2025 estimates are based on management’s current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company cannot provide a reconciliation between non-GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments, legal settlements, and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results.
Conference Call Information
Amneal will host a conference call and live webcast at 8:30 am Eastern Time today, October 30, 2025, to discuss its results. The live webcast and presentation will be accessible through the Investor Relations section of the Company’s website at https://investors.amneal.com. To access the call through a conference line, dial (833) 470-1428 (in the U.S.) with access code 272787. A replay of the conference call will be posted shortly after the call. For a list of toll-free international numbers, visit this website: https://www.netroadshow.com/events/global-numbers?confId=89042.
About Amneal
Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in Bridgewater, NJ, is a global biopharmaceutical company. We make healthy possible through the development, manufacturing, and distribution of a diverse portfolio of over 290 pharmaceutical products, primarily within the United States. In our Affordable Medicines segment, we are expanding across a broad range of complex product categories and therapeutic areas, including injectables and biosimilars. In our Specialty segment, we have a growing portfolio of branded pharmaceuticals focused primarily on central nervous system and endocrine disorders. Through our AvKARE segment, the Company is a distributor of pharmaceuticals and other products for the U.S. federal government, retail, and institutional markets. For more information, please visit www.amneal.com.
Cautionary Statement on Forward-Looking Statements
Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management’s intentions, plans, beliefs, expectations, financial results, or forecasts for the future, including among other things: discussions of future operations; anticipated product approvals; expected or estimated operating results and financial performance; statements regarding our positioning for growth, and other non-historical statements. Words such as “plans,” “expects,” “will,” “anticipates,” “estimates,” and similar words, or the negatives thereof, are intended to identify estimates and forward-looking statements.
The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events, including with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies and growth initiatives, the competitive environment, and other events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company.
Such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; the impact of illegal distribution and sale by third parties of counterfeit versions of our products or stolen products; the impact of negative market perceptions of us and the safety and quality of our products; our revenues are derived from the sales of a limited number of products, a substantial portion of which are through a limited number of customers; the continuing trend of consolidation of certain customer groups; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods; the imposition of tariffs may adversely affect our business, results of operations and financial condition; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; our dependence on information technology systems and infrastructure and the potential for cybersecurity incidents, and risks associated with artificial intelligence; the impact of a prolonged business interruption within our supply chain; our ability to attract, hire and retain highly skilled personnel; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to
2
proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of claims brought against us by third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to government contracting, healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; our dependence on third-party agreements for a portion of our product offerings; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our potential expansion into additional international markets subjecting us to increased regulatory, economic, social and political uncertainties; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; the impact of global economic, political or other catastrophic events; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our class A common stock and the fact that we are controlled by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof.
Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted operating cash flow and net leverage, which are intended as supplemental measures of the Company’s performance that are not required by or presented in accordance with GAAP.
Adjusted diluted EPS reflects diluted earnings per share based on adjusted net income (loss), which is net income (loss) adjusted to (A) exclude (i) non-cash interest, (ii) GAAP (benefit from) provision for income taxes, (iii) amortization, (iv) stock-based compensation expense, (v) acquisition, site closure expenses, and idle facility expenses, (vi) restructuring and other charges, (vii) loss on refinancing, (viii) (credit) charges related to certain legal matters, including interest, net, (ix) asset impairment charges, (x) (decrease) increase in tax receivable agreement liability, (xi) other and (xii) net income attributable to non-controlling interests, and (B) include non-GAAP provision for income taxes. Non-GAAP adjusted diluted EPS for the three and nine months ended September 30, 2025 and 2024 was calculated using the weighted average fully diluted shares outstanding of Class A common stock (inclusive of the effect of dilutive securities).
EBITDA reflects net income (loss) adjusted to exclude interest expense, net, (benefit from) provision for income taxes and depreciation and amortization. Adjusted EBITDA reflects net income (loss) adjusted to exclude (i) interest expense, net, (ii) (benefit from) provision for income taxes, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) acquisition, site closure, and idle facility expenses, (vi) restructuring and other charges, (vii) loss on refinancing (viii) (credit) charges related to legal matters, net, (ix) asset impairment charges, (x) foreign exchange loss (gain), (xi) (decrease) increase in tax receivable agreement liability, and (xii) other.
Adjusted operating cash flow reflects cash flow from operations excluding discrete items such as legal settlement payments.
Net leverage is calculated as net debt (total outstanding principal on the Company’s debt, less cash and cash equivalents), divided by adjusted EBITDA for the year or trailing twelve months then ended.
Management uses these non-GAAP measures internally to evaluate and manage the Company’s operations and to better understand its business because they facilitate a comparative assessment of the Company’s operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. The compensation committee of the Company’s board of directors also uses certain of these measures to evaluate management’s performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company’s financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company’s financial performance, results of operations, cash flows, net leverage and trends while viewing the information through the eyes of management.
These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements; do not reflect changes in, or cash requirements for, working
3
capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company’s GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to any measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company’s business.
A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is set forth below.
Contact
Anthony DiMeo
VP, Investor Relations
anthony.dimeo@amneal.com
4
Amneal Pharmaceuticals, Inc.
Consolidated Statements of Operations
(unaudited; $ in thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net revenue | $ | 784,513 | $ | 702,468 | $ | 2,204,441 | $ | 2,063,439 | |||||||||||||||
| Cost of goods sold | 510,539 | 432,910 | 1,388,323 | 1,305,874 | |||||||||||||||||||
| Gross profit | 273,974 | 269,558 | 816,118 | 757,565 | |||||||||||||||||||
| Selling, general and administrative | 137,815 | 118,692 | 380,369 | 347,749 | |||||||||||||||||||
| Research and development | 63,352 | 61,097 | 151,356 | 136,449 | |||||||||||||||||||
| Intellectual property legal development expenses | 2,437 | 1,967 | 6,221 | 3,993 | |||||||||||||||||||
| Restructuring and other charges | 143 | 172 | 1,738 | 1,862 | |||||||||||||||||||
| (Credit) charges related to legal matters, net | — | (149) | (390) | 94,909 | |||||||||||||||||||
| Other operating income | (117) | (1,030) | (5,239) | (930) | |||||||||||||||||||
| Operating income | 70,344 | 88,809 | 282,063 | 173,533 | |||||||||||||||||||
| Other (expense) income: | |||||||||||||||||||||||
| Interest expense, net | (62,814) | (65,511) | (184,854) | (196,933) | |||||||||||||||||||
| Foreign exchange (loss) gain, net | (3,431) | 2,274 | 9,072 | 815 | |||||||||||||||||||
| Decrease (increase) in tax receivable agreement liability | 20,808 | (11,327) | 5,701 | (26,719) | |||||||||||||||||||
| Loss on refinancing | (31,365) | — | (31,365) | — | |||||||||||||||||||
| Other income, net | 1,235 | 1,178 | 3,357 | 9,610 | |||||||||||||||||||
| Total other expense, net | (75,567) | (73,386) | (198,089) | (213,227) | |||||||||||||||||||
| Income (loss) before income taxes | (5,223) | 15,423 | 83,974 | (39,694) | |||||||||||||||||||
| (Benefit from) provision for income taxes | (23,355) | 3,666 | 5,614 | 13,440 | |||||||||||||||||||
| Net income (loss) | 18,132 | 11,757 | 78,360 | (53,134) | |||||||||||||||||||
| Less: Net income attributable to non-controlling interests | (15,763) | (11,913) | (41,379) | (32,671) | |||||||||||||||||||
| Net income (loss) attributable to Amneal Pharmaceuticals, Inc. | $ | 2,369 | $ | (156) | $ | 36,981 | $ | (85,805) | |||||||||||||||
Net income (loss) per share attributable to Amneal Pharmaceuticals, Inc.’s Class A common stockholders: | |||||||||||||||||||||||
| Basic | $ | 0.01 | $ | (—) | $ | 0.12 | $ | (0.28) | |||||||||||||||
Diluted | $ | 0.01 | $ | (—) | $ | 0.11 | $ | (0.28) | |||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||
Basic | 314,168 | 309,647 | 312,998 | 308,685 | |||||||||||||||||||
Diluted | 324,754 | 309,647 | 323,704 | 308,685 | |||||||||||||||||||
5
Amneal Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(unaudited; $ in thousands)
| September 30, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 201,249 | $ | 110,552 | |||||||
| Restricted cash | 34,727 | 7,868 | |||||||||
| Trade accounts receivable, net | 885,199 | 775,731 | |||||||||
| Inventories | 614,500 | 612,454 | |||||||||
| Prepaid expenses and other current assets | 101,511 | 80,717 | |||||||||
| Related party receivables | 1,292 | 484 | |||||||||
| Total current assets | 1,838,478 | 1,587,806 | |||||||||
| Property, plant and equipment, net | 434,991 | 424,908 | |||||||||
| Goodwill | 595,945 | 597,436 | |||||||||
| Intangible assets, net | 587,938 | 732,377 | |||||||||
| Operating lease right-of-use assets | 31,769 | 31,388 | |||||||||
| Operating lease right-of-use assets - related party | 16,875 | 10,964 | |||||||||
| Financing lease right-of-use assets | 54,420 | 56,433 | |||||||||
| Other assets | 39,458 | 60,133 | |||||||||
| Total assets | $ | 3,599,874 | $ | 3,501,445 | |||||||
Liabilities and Stockholders’ Deficiency | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 731,825 | $ | 735,450 | |||||||
| Current portion of liabilities for legal matters | 40,598 | 31,755 | |||||||||
| Revolving credit facility | — | 100,000 | |||||||||
| Current portion of long-term debt, net | 7,202 | 224,213 | |||||||||
| Current portion of operating lease liabilities | 7,985 | 9,435 | |||||||||
| Current portion of operating lease liabilities - related party | 2,826 | 3,396 | |||||||||
| Current portion of financing lease liabilities | 3,458 | 3,211 | |||||||||
| Related party payables - short term | 68,212 | 22,311 | |||||||||
| Total current liabilities | 862,106 | 1,129,771 | |||||||||
| Long-term debt, net | 2,566,500 | 2,161,790 | |||||||||
| Operating lease liabilities | 26,405 | 24,814 | |||||||||
| Operating lease liabilities - related party | 15,676 | 9,391 | |||||||||
| Financing lease liabilities | 55,672 | 56,889 | |||||||||
| Related party payables - long term | 8,587 | 50,900 | |||||||||
| Liabilities for legal matters - long term | 74,477 | 85,479 | |||||||||
| Other long-term liabilities | 32,626 | 26,949 | |||||||||
| Total long-term liabilities | 2,779,943 | 2,416,212 | |||||||||
| Redeemable non-controlling interests | 67,780 | 64,974 | |||||||||
Total stockholders’ deficiency | (109,955) | (109,512) | |||||||||
Total liabilities and stockholders’ deficiency | $ | 3,599,874 | $ | 3,501,445 | |||||||
6
Amneal Pharmaceuticals, Inc.
Consolidated Statements of Cash Flows
(unaudited; $ in thousands)
| Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 78,360 | $ | (53,134) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 174,345 | 170,061 | |||||||||
| Unrealized foreign currency gain | (8,606) | (754) | |||||||||
| Amortization of debt issuance costs and discount | 18,716 | 22,280 | |||||||||
| Reclassification of cash flow hedge | (1,713) | (19,618) | |||||||||
| Loss on refinancing | 31,365 | — | |||||||||
| Intangible asset impairment charges | 22,784 | 920 | |||||||||
| Stock-based compensation | 23,751 | 20,558 | |||||||||
| Inventory provision | 59,326 | 63,611 | |||||||||
| Other operating charges and credits, net | 3,575 | (980) | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Trade accounts receivable, net | (110,228) | (134,031) | |||||||||
| Inventories | (66,846) | (78,545) | |||||||||
| Prepaid expenses, other current assets and other assets | (20,173) | (2,082) | |||||||||
| Related party receivables | (830) | (483) | |||||||||
| Accounts payable, accrued expenses and other liabilities | 2,744 | 168,879 | |||||||||
| Related party payables | 3,107 | 20,339 | |||||||||
| Net cash provided by operating activities | 209,677 | 177,021 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, plant and equipment | (48,290) | (36,769) | |||||||||
| Acquisition of intangible assets | (12,514) | (14,050) | |||||||||
| Deposits for future acquisition of property, plant and equipment | (7,384) | (1,107) | |||||||||
| Proceeds from sale of property, plant and equipment | 1,379 | — | |||||||||
| Proceeds from sale of subsidiary | — | 4,989 | |||||||||
| Net cash used in investing activities | (66,809) | (46,937) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from issuance of debt | 2,694,750 | — | |||||||||
| Payments of principal on debt, revolving credit facilities, financing leases and other | (2,805,384) | (133,383) | |||||||||
| Payments of deferred financing and refinancing costs | (74,973) | — | |||||||||
| Borrowings on revolving credit facilities | 218,000 | 48,000 | |||||||||
| Proceeds from exercise of stock options | 1,407 | 1,003 | |||||||||
| Employee payroll tax withholding on restricted stock unit and performance stock unit vesting | (21,957) | (7,565) | |||||||||
| Tax and other distributions to non-controlling interests | (38,825) | (14,442) | |||||||||
| Payment of principal on notes payable - related party | — | (44,200) | |||||||||
| Proceeds from alliance party | 5,572 | — | |||||||||
| Net cash used in financing activities | (21,410) | (150,587) | |||||||||
| Effect of foreign exchange rate on cash | (1,471) | (259) | |||||||||
| Net increase in cash, cash equivalents, and restricted cash | 119,987 | (20,762) | |||||||||
| Cash, cash equivalents, and restricted cash - beginning of period | 118,420 | 99,107 | |||||||||
| Cash, cash equivalents, and restricted cash - end of period | $ | 238,407 | $ | 78,345 | |||||||
| Cash and cash equivalents - end of period | $ | 201,249 | $ | 74,006 | |||||||
| Restricted cash - end of period | 34,727 | 4,339 | |||||||||
| Long-term restricted cash included in other assets - end of period | 2,431 | — | |||||||||
| Cash, cash equivalents, and restricted cash - end of period | $ | 238,407 | $ | 78,345 | |||||||
7
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited, $ in thousands)
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
| Three Months Ended September 30, | Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2024 | |||||||||||||||||||||||||
| Net income (loss) | $ | 18,132 | $ | 11,757 | $ | 78,360 | $ | (53,134) | $ | (73,876) | |||||||||||||||||||
| Adjusted to add: | |||||||||||||||||||||||||||||
| Interest expense, net | 62,814 | 65,511 | 184,854 | 196,933 | 258,595 | ||||||||||||||||||||||||
| (Benefit from) provision for income taxes | (23,355) | 3,666 | 5,614 | 13,440 | 18,863 | ||||||||||||||||||||||||
| Depreciation and amortization | 54,073 | 58,961 | 174,345 | 170,061 | 236,191 | ||||||||||||||||||||||||
| EBITDA (Non-GAAP) | $ | 111,664 | $ | 139,895 | $ | 443,173 | $ | 327,300 | $ | 439,773 | |||||||||||||||||||
| Adjusted to add (deduct): | |||||||||||||||||||||||||||||
| Stock-based compensation expense | 8,219 | 7,112 | 23,621 | 20,343 | 27,552 | ||||||||||||||||||||||||
Acquisition, site closure, and idle facility expenses (1) | 2,318 | 551 | 4,762 | 1,574 | 2,112 | ||||||||||||||||||||||||
| Restructuring and other charges | 143 | 172 | 1,738 | 1,773 | 2,265 | ||||||||||||||||||||||||
| Loss on refinancing | 31,365 | — | 31,365 | — | — | ||||||||||||||||||||||||
(Credit) charges related to legal matters, net (2) | — | (149) | (390) | 94,909 | 96,692 | ||||||||||||||||||||||||
| Asset impairment charges | 22,784 | 181 | 22,888 | 1,196 | 1,372 | ||||||||||||||||||||||||
| Foreign exchange loss (gain) | 3,431 | (2,274) | (9,072) | (815) | 6,846 | ||||||||||||||||||||||||
| (Decrease) increase in tax receivable agreement liability | (20,808) | 11,327 | (5,701) | 26,719 | 50,680 | ||||||||||||||||||||||||
Other (3) | 459 | 808 | 829 | (814) | 150 | ||||||||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 159,575 | $ | 157,623 | $ | 513,213 | $ | 472,185 | $ | 627,442 | |||||||||||||||||||
8
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited, $ in thousands)
Calculation of Net Debt and Net Leverage
| September 30, 2025 | December 31, 2024 | ||||||||||
| Term Loan Due 2032 | $ | 2,100,000 | $ | — | |||||||
| Senior Notes Due 2032 | 600,000 | — | |||||||||
Term Loan Due 2025 | — | 191,979 | |||||||||
Term Loan Due 2028 | — | 2,292,856 | |||||||||
New Revolving Credit Facility | — | 100,000 | |||||||||
Gross debt (4) | $ | 2,700,000 | $ | 2,584,835 | |||||||
| Less: Cash and cash equivalents | 201,249 | 110,552 | |||||||||
Net debt (Non-GAAP) (5) | $ | 2,498,751 | $ | 2,474,283 | |||||||
| Adjusted EBITDA (Non-GAAP) | Adjusted EBITDA (Non-GAAP) | ||||||||||
| Year ended December 31, 2024 | $ | 627,442 | $ | 627,442 | |||||||
| Less: Nine months ended September 30, 2024 | 472,185 | ||||||||||
| Add: Nine months ended September 30, 2025 | 513,213 | ||||||||||
| Last twelve months ended September 30, 2025 | $ | 668,470 | |||||||||
Last Twelve Months Ended September 30, 2025 | Year Ended December 31, 2024 | ||||||||||
Net leverage (Non-GAAP) (6) | 3.7x | 3.9x | |||||||||
9
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited; $ in thousands, except per share amounts)
Reconciliation of Net Income (Loss) to Adjusted Net Income and Calculation of Adjusted Diluted Earnings Per Share
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Net income (loss) | $ | 18,132 | $ | 11,757 | $ | 78,360 | $ | (53,134) | |||||||||||||||
| Adjusted to add (deduct): | |||||||||||||||||||||||
Non-cash interest | 9,163 | 923 | 16,908 | 1,552 | |||||||||||||||||||
GAAP (benefit from) provision for income taxes | (23,355) | 3,666 | 5,614 | 13,440 | |||||||||||||||||||
Amortization | 38,647 | 41,992 | 127,741 | 119,481 | |||||||||||||||||||
Stock-based compensation expense | 8,219 | 7,112 | 23,621 | 20,343 | |||||||||||||||||||
Acquisition, site closure expenses, and idle facility expenses (1) | 2,284 | 551 | 4,700 | 1,574 | |||||||||||||||||||
Restructuring and other charges | 143 | 172 | 1,731 | 1,756 | |||||||||||||||||||
| Loss on refinancing | 31,365 | — | 31,365 | — | |||||||||||||||||||
(Credit) charges related to legal matters, including interest, net (2) | — | (149) | (390) | 95,036 | |||||||||||||||||||
Asset impairment charges | 22,784 | 181 | 22,888 | 1,196 | |||||||||||||||||||
| (Decrease) increase in tax receivable agreement liability | (20,808) | 11,327 | (5,701) | 26,719 | |||||||||||||||||||
Other (3) | 459 | 808 | 839 | (814) | |||||||||||||||||||
Provision for income taxes (7) | (16,868) | (15,875) | (65,722) | (48,016) | |||||||||||||||||||
Net income attributable to non-controlling interests | (15,763) | (11,913) | (41,379) | (32,671) | |||||||||||||||||||
| Adjusted net income (Non-GAAP) | $ | 54,402 | $ | 50,552 | $ | 200,575 | $ | 146,462 | |||||||||||||||
Weighted average diluted shares outstanding (Non-GAAP) (8) | 324,754 | 322,946 | 323,704 | 319,491 | |||||||||||||||||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 0.17 | $ | 0.16 | $ | 0.62 | $ | 0.46 | |||||||||||||||
10
Amneal Pharmaceuticals, Inc.
Non-GAAP Reconciliations
(unaudited)
Explanations for Non-GAAP Reconciliations
(1)Acquisition, site closure, and idle facility expenses for the three and nine months ended September 30, 2025 primarily included costs related to a planned facility closure and rent for vacated properties. Acquisition, site closure, and idle facility expenses for the three and nine months ended September 30, 2024 and the year ended December 31, 2024 primarily included rent for vacated properties.
(2)For the nine months ended September 30, 2024 and the year ended December 31, 2024, charges related to legal matters, net were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States.
(3)System implementation expense of $0.3 million and change in fair value of contingent consideration of ($1.0 million), formerly included in their own captions in the non-GAAP reconciliations, for the three months ended September 30, 2024 have been reclassified to the caption “other” to conform to the current period presentation. System implementation expense of $2.0 million and change in the fair value of contingent consideration of ($0.9 million), formerly included in their own captions in the non-GAAP reconciliations, for the nine months ended September 30, 2024 have been reclassified to the caption “other” to conform to the current period presentation. System implementation expense of $2.4 million and change in the fair value of contingent consideration of ($0.9 million), formerly included in their own captions in the non-GAAP reconciliations, for the year ended December 31, 2024 have been reclassified to the caption “other” to conform to the current period presentation.
(4)On August 1, 2025, the Company borrowed $2.1 billion under new seven-year term loans (the “Term Loan Due 2032”) pursuant to an amendment to the Term Loan Credit Agreement and completed a private offering of $600 million aggregate principal amount of 6.875% senior secured notes due 2032 at par (the “Senior Notes Due 2032”). The Company used the net proceeds of the Term Loan Due 2032 and the Senior Notes due 2032 to refinance the Term Loan Due 2028 in full, to repay outstanding amounts borrowed under the New Revolving Credit Facility in full, and to pay related fees, premiums and expenses. Refer to Note 15. Debt in the Company’s 2024 Annual Report on Form 10-K for information about the Company’s debt as of December 31, 2024.
(5)Net debt was calculated as the total outstanding principal on the Company’s debt less cash and cash equivalents.
(6)Net leverage was calculated by dividing net debt as of September 30, 2025 and December 31, 2024 by adjusted EBITDA for the last twelve months ended September 30, 2025 and year ended December 31, 2024, respectively.
(7)The non-GAAP effective tax rates for the three and nine months ended September 30, 2025 were 23.7% and 24.7%, respectively. The non-GAAP effective tax rates for the three and nine months ended September 30, 2024 were 23.9% and 24.7%, respectively.
(8)Weighted average diluted shares outstanding for the three and nine months ended September 30, 2025 and 2024 consisted of fully diluted Class A common stock (inclusive of the effect of dilutive securities).
11
Amneal Pharmaceuticals, Inc.
Affordable Medicines Segment
Reconciliation of GAAP to Non-GAAP Operating Results (1)
(unaudited; $ in thousands)
| Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 460,741 | $ | — | $ | 460,741 | $ | 427,345 | $ | — | $ | 427,345 | |||||||||||||||||||||||
Cost of goods sold (2) | 280,463 | (12,075) | 268,388 | 249,342 | (11,411) | 237,931 | |||||||||||||||||||||||||||||
| Gross profit | 180,278 | 12,075 | 192,353 | 178,003 | 11,411 | 189,414 | |||||||||||||||||||||||||||||
| Gross margin % | 39.1 | % | 41.7 | % | 41.7 | % | 44.3 | % | |||||||||||||||||||||||||||
Selling, general and administrative (3) | 37,173 | (2,341) | 34,832 | 30,951 | (1,931) | 29,020 | |||||||||||||||||||||||||||||
Research and development (4) | 55,124 | (679) | 54,445 | 57,099 | (674) | 56,425 | |||||||||||||||||||||||||||||
| Intellectual property legal development expenses | 2,378 | — | 2,378 | 1,786 | — | 1,786 | |||||||||||||||||||||||||||||
| Restructuring and other charges | 90 | (90) | — | 17 | (17) | — | |||||||||||||||||||||||||||||
Credit related to legal matters, net | — | — | — | (149) | 149 | — | |||||||||||||||||||||||||||||
| Other operating income | (117) | — | (117) | — | — | — | |||||||||||||||||||||||||||||
Operating income | $ | 85,630 | $ | 15,185 | $ | 100,815 | $ | 88,299 | $ | 13,884 | $ | 102,183 | |||||||||||||||||||||||
(1)Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.
(2)Adjustments for the three months ended September 30, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($1.1 million and $0.9 million), amortization expense ($10.4 million and $10.3 million), and asset impairment charges ($0.6 million and $0.2 million).
(3)Adjustments for the three months ended September 30, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($1.8 million and $1.4 million) and site closure costs ($0.5 million in each period).
(4)Adjustments for the three months ended September 30, 2025 and 2024 were comprised of stock-based compensation expense.
12
Amneal Pharmaceuticals, Inc.
Affordable Medicines Segment
Reconciliation of GAAP to Non-GAAP Operating Results (1)
(unaudited; $ in thousands)
| Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 1,308,874 | $ | — | $ | 1,308,874 | $ | 1,245,967 | $ | — | $ | 1,245,967 | |||||||||||||||||||||||
Cost of goods sold (2) | 775,742 | (34,121) | 741,621 | 750,167 | (35,123) | 715,044 | |||||||||||||||||||||||||||||
| Gross profit | 533,132 | 34,121 | 567,253 | 495,800 | 35,123 | 530,923 | |||||||||||||||||||||||||||||
| Gross margin % | 40.7 | % | 43.3 | % | 39.8 | % | 42.6 | % | |||||||||||||||||||||||||||
Selling, general and administrative (3) | 105,114 | (6,340) | 98,774 | 95,663 | (5,251) | 90,412 | |||||||||||||||||||||||||||||
Research and development (4) | 128,003 | (2,145) | 125,858 | 123,173 | (1,913) | 121,260 | |||||||||||||||||||||||||||||
| Intellectual property legal development expenses | 6,069 | — | 6,069 | 3,778 | — | 3,778 | |||||||||||||||||||||||||||||
| Restructuring and other charges | 773 | (773) | — | 70 | (70) | — | |||||||||||||||||||||||||||||
(Credit) charges related to legal matters, net (5) | (390) | 390 | — | 94,909 | (94,909) | — | |||||||||||||||||||||||||||||
| Other operating income | (5,239) | — | (5,239) | — | — | — | |||||||||||||||||||||||||||||
Operating income | $ | 298,802 | $ | 42,989 | $ | 341,791 | $ | 178,207 | $ | 137,266 | $ | 315,473 | |||||||||||||||||||||||
(1)Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.
(2)Adjustments for the nine months ended September 30, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($2.9 million and $2.7 million), amortization expense ($30.5 million and $31.2 million), and asset impairment charges ($0.7 million and $1.2 million).
(3)Adjustments for the nine months ended September 30, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($4.7 million and $3.7 million) and site closure costs ($1.6 million in each period).
(4)Adjustments for the nine months ended September 30, 2025 and 2024 were comprised of stock-based compensation expense.
(5)Adjustment for the nine months ended September 30, 2024 was primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States.
13
Amneal Pharmaceuticals, Inc.
Specialty Segment
Reconciliation of GAAP to Non-GAAP Operating Results
(unaudited; $ in thousands)
| Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 125,240 | $ | — | $ | 125,240 | $ | 115,638 | $ | — | $ | 115,638 | |||||||||||||||||||||||
Cost of goods sold (1) | 73,808 | (48,607) | 25,201 | 52,342 | (29,394) | 22,948 | |||||||||||||||||||||||||||||
| Gross profit | 51,432 | 48,607 | 100,039 | 63,296 | 29,394 | 92,690 | |||||||||||||||||||||||||||||
| Gross margin % | 41.1 | % | 79.9 | % | 54.7 | % | 80.2 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 33,580 | (490) | 33,090 | 27,723 | (167) | 27,556 | |||||||||||||||||||||||||||||
Research and development (3) | 8,228 | (1,843) | 6,385 | 3,998 | (258) | 3,740 | |||||||||||||||||||||||||||||
| Intellectual property legal development expenses | 59 | — | 59 | 181 | — | 181 | |||||||||||||||||||||||||||||
| Restructuring and other charges | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other operating income | — | — | — | (1,030) | 1,030 | — | |||||||||||||||||||||||||||||
| Operating income | $ | 9,565 | $ | 50,940 | $ | 60,505 | $ | 32,424 | $ | 28,789 | $ | 61,213 | |||||||||||||||||||||||
(1)Adjustments for the three months ended September 30, 2025 and 2024 were comprised of amortization expense ($26.5 million and $29.4 million) and asset impairment charges ($22.1 million and none).
(2)Adjustments for the three months ended September 30, 2025 and 2024 were comprised of stock-based compensation expense.
(3)Adjustments for the three months ended September 30, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($0.1 million and $0.3 million) and site closure costs ($1.7 million and none).
14
Amneal Pharmaceuticals, Inc.
Specialty Segment
Reconciliation of GAAP to Non-GAAP Operating Results
(unaudited; $ in thousands)
| Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 361,580 | $ | — | $ | 361,580 | $ | 324,913 | $ | — | $ | 324,913 | |||||||||||||||||||||||
Cost of goods sold (1) | 182,686 | (114,127) | 68,559 | 143,284 | (81,349) | 61,935 | |||||||||||||||||||||||||||||
| Gross profit | 178,894 | 114,127 | 293,021 | 181,629 | 81,349 | 262,978 | |||||||||||||||||||||||||||||
| Gross margin % | 49.5 | % | 81.0 | % | 55.9 | % | 80.9 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 94,872 | (1,321) | 93,551 | 79,529 | (755) | 78,774 | |||||||||||||||||||||||||||||
Research and development (3) | 23,353 | (3,430) | 19,923 | 13,276 | (801) | 12,475 | |||||||||||||||||||||||||||||
| Intellectual property legal development expenses | 152 | — | 152 | 215 | — | 215 | |||||||||||||||||||||||||||||
| Restructuring and other charges | 471 | (471) | — | 1,024 | (1,024) | — | |||||||||||||||||||||||||||||
Other operating income | — | — | — | (930) | 930 | — | |||||||||||||||||||||||||||||
| Operating income | $ | 60,046 | $ | 119,349 | $ | 179,395 | $ | 88,515 | $ | 82,999 | $ | 171,514 | |||||||||||||||||||||||
(1)Adjustments for the nine months ended September 30, 2025 and 2024 were comprised of amortization expense ($92.0 million and $81.3 million) and asset impairment charges ($22.1 million and none).
(2)Adjustments for the nine months ended September 30, 2025 and 2024 were comprised of stock-based compensation expense.
(3)Adjustments for the nine months ended September 30, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($0.3 million and $0.8 million) and site closure costs ($3.1 million and none).
15
Amneal Pharmaceuticals, Inc.
AvKARE Segment
Reconciliation of GAAP to Non-GAAP Operating Results (1)
(unaudited; $ in thousands)
| Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 198,532 | $ | — | $ | 198,532 | $ | 159,485 | $ | — | $ | 159,485 | |||||||||||||||||||||||
| Cost of goods sold | 156,268 | — | 156,268 | 131,226 | — | 131,226 | |||||||||||||||||||||||||||||
| Gross profit | 42,264 | — | 42,264 | 28,259 | — | 28,259 | |||||||||||||||||||||||||||||
| Gross margin % | 21.3 | % | 21.3 | % | 17.7 | % | 17.7 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 15,234 | (2,699) | 12,535 | 15,145 | (3,545) | 11,600 | |||||||||||||||||||||||||||||
Operating income | $ | 27,030 | $ | 2,699 | $ | 29,729 | $ | 13,114 | $ | 3,545 | $ | 16,659 | |||||||||||||||||||||||
(1)Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.
(2)Adjustments for the three months ended September 30, 2025 and 2024 were comprised of amortization expense.
16
Amneal Pharmaceuticals, Inc.
AvKARE Segment
Reconciliation of GAAP to Non-GAAP Operating Results (1)
(unaudited; $ in thousands)
| Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||
| As Reported | Adjustments | Non-GAAP | As Reported | Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 533,987 | $ | — | $ | 533,987 | $ | 492,559 | $ | — | $ | 492,559 | |||||||||||||||||||||||
| Cost of goods sold | 429,895 | — | 429,895 | 412,423 | — | 412,423 | |||||||||||||||||||||||||||||
| Gross profit | 104,092 | — | 104,092 | 80,136 | — | 80,136 | |||||||||||||||||||||||||||||
| Gross margin % | 19.5 | % | 19.5 | % | 16.3 | % | 16.3 | % | |||||||||||||||||||||||||||
Selling, general and administrative (2) | 46,007 | (8,099) | 37,908 | 44,694 | (10,636) | 34,058 | |||||||||||||||||||||||||||||
Operating income | $ | 58,085 | $ | 8,099 | $ | 66,184 | $ | 35,442 | $ | 10,636 | $ | 46,078 | |||||||||||||||||||||||
(1)Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment.
(2)Adjustments for the nine months ended September 30, 2025 and 2024 were comprised of amortization expense.
17