Lilly (Eli) (LLY) FY2025 10-K Review

Statements & commentary

Statements as filed on the left — every figure from the company's own XBRL filing, in millions of dollars. What management wrote on the right, quoted verbatim. Open any claim for its arithmetic. The gold number beside a statement line counts the claims resting on that line. ✓ matches · ◐ partly · ✗ contradicts or red flag · ◐ watch.

INCOME STATEMENTCASH FLOWBALANCE SHEETVARIANCE YoYBUSINESS QUALITYQUARTERLYOWNERSHIPEVERY FIGURE AS FILED · $M EXCEPT PER-SHARE

Income statement · $ millions	2025	2024	2023
Total revenues	65,179	45,043	34,124	4
· Product	60,958	40,748	28,814
· Collaborationand other revenue	4,221	4,295	5,310
Cost of revenue	11,052	8,418	7,082	1
Selling, general and administrative	11,094	8,594	7,404	2
Depreciation, depletion and amortization	1,997	1,767	1,527
Interest expense	—	—	486
Other income (expense), net	(571)	(219)	97
Income before income taxes	25,731	12,680	6,554	1
Income tax provision	5,091	2,090	1,314	2
— of which current	6,798	4,773	3,655	1
Net income attributable to common	20,640	10,590	5,240	2
Diluted earnings per share	$22.95	$11.71	$5.80	1
Weighted-average diluted shares	899	904	903

Cash flow · $ millions	2025	2024	2023
Net income incl. noncontrolling interests	20,640	10,590	5,240
Depreciation, depletion and amortization	1,997	1,767	1,527
Share-based compensation	626	646	629
Deferred income taxes	(1,707)	(2,683)	(2,341)
Change in inventories	4,671	2,507	1,425
Change in payables	10,187	2,609	4,274
Net cash provided by operating activities	16,813	8,818	4,240	3
Net cash used in investing activities	(10,972)	(9,302)	(7,153)
Dividends paid	5,384	4,680	4,069
Repurchases of common stock	4,108	2,500	750
Debt issued	13,167	11,417	3,959
Debt repaid	778	664	0
Net cash used in financing activities	(2,213)	1,230	3,496
Cash and equivalents at end of period	7,268	3,268	2,819

Balance sheet · $ millions	2025	2024
Cash and cash equivalents	7,268	3,268	1
Short-term investments	—	155
Receivables, net	17,760	11,006	1
Inventories	13,744	7,589	1
Total current assets	55,629	32,740
Property, plant and equipment, net	24,675	17,102
Goodwill	5,898	5,770	1
Intangible assets, net	6,521	6,166
Total assets	112,476	78,715	1
Accounts payable	5,379	3,229
Current debt	1,635	5,117	1
Total current liabilities	35,228	28,376
Long-term debt	40,868	28,527	1
Stockholders' equity	26,535	14,272
Noncontrolling interests	—	80
Total equity	—	14,272

Largest FY/FY moves · $ millions, ranked by \|Δ\|	FY2025	FY2024	Δ $	Δ %	Reading
Total assets · BS	112,476	78,715	+33,761	+42.9%	—
Total current assets · BS	55,629	32,740	+22,889	+69.9%	◐ outsized
· Product · IS	60,958	40,748	+20,210	+49.6%	—
Total revenues · IS	65,179	45,043	+20,136	+44.7%	—
Income before income taxes · IS	25,731	12,680	+13,051	+102.9%	◐ outsized
Long-term debt · BS	40,868	28,527	+12,341	+43.3%	—
Stockholders' equity · BS	26,535	14,272	+12,263	+85.9%	◐ outsized
Net income attributable to common · IS	20,640	10,590	+10,050	+94.9%	◐ outsized
Net income incl. noncontrolling interests · CF	20,640	10,590	+10,050	+94.9%	◐ outsized
Net cash provided by operating activities · CF	16,813	8,818	+7,995	+90.7%	◐ outsized
Change in payables · CF	10,187	2,609	+7,578	+290.5%	◐ outsized
Property, plant and equipment, net · BS	24,675	17,102	+7,573	+44.3%	—
Total current liabilities · BS	35,228	28,376	+6,852	+24.1%	—
Receivables, net · BS	17,760	11,006	+6,754	+61.4%	◐ outsized

Business quality — Buffett/Munger screen · deterministic · not part of the filing score	Value	Reading
Return on equity net income ÷ average of start- and end-of-year equity	101.2% sector median 13.1%	strong
Share count, year-end (year-end shares − prior year-end) ÷ prior year-end	-0.3% sector median -0.3%	flat
Debt to equity (current debt + long-term debt) ÷ year-end equity	1.60 sector median 0.65	leveraged
FCF consistency operating cash flow − capital expenditure, per year	n/a	insufficient data
Margin stability pre-tax income ÷ revenue, swing across up to five years	pre-tax margin 39.5% sector median 14.5%	volatile

Quarterly · as filed in 10-Q/10-K · $ millions	SEP 24	MAR 25	JUN 25	SEP 25	MAR 26
Total revenues	11,439	12,729	15,558	17,601	19,799
Cost of revenue	2,171	2,225	2,448	3,008	3,577
Selling, general and administrative	2,100	2,468	2,753	2,741	2,934
Depreciation, depletion and amortization	—	463	—	—	509
Interest expense	193	244	249	180	—
Other income (expense), net	62	(239)	(91)	(133)	(65)
Income before income taxes	1,588	3,456	6,776	7,232	8,850
Income tax provision	618	697	1,116	1,650	1,454
Net income attributable to common	970	2,759	5,660	5,582	7,396
Diluted earnings per share	$1.07	$3.06	$6.29	$6.21	$8.26
Weighted-average diluted shares	905	901	900	899	896
Net cash provided by operating activities	—	1,666	—	—	5,333

Largest QoQ moves · latest vs prior filed quarter	Prior	Latest	Δ $	Δ %
Net cash provided by operating activities	1,666	5,333	+3,667	+220.1%
Total revenues	17,601	19,799	+2,198	+12.5%
Net income attributable to common	5,582	7,396	+1,814	+32.5%
Income before income taxes	7,232	8,850	+1,618	+22.4%
Cost of revenue	3,008	3,577	+569	+18.9%
Income tax provision	1,650	1,454	−196	-11.9%
Selling, general and administrative	2,741	2,934	+193	+7.0%
Interest expense	249	180	−69	-27.7%

Ownership — insiders & floatForm 4 + 10-K cover · open-market trades only	Value	Reading
Public float	$807,887M	10-K cover · as of 2025-06-30
Insider Form 4s, 90d	15 filings · 0 buys / 3 sells	net selling · −$18,631,462
· Lilly Endowment Inc	SELL $13,554,964	Form 4 filed 2026-05-07 · open market
· Yuffa Ilya	SELL $2,876,925	Form 4 filed 2026-06-11 · open market
· Lilly Endowment Inc	SELL $2,199,572	Form 4 filed 2026-05-07 · open market
Insider ownership %	—	needs the proxy statement — not read yet, never estimated
Institutional %	—	needs 13F aggregation — not read yet, never estimated

COMMENTARY8EARNINGS QUALITY6

revenue growth◐PARTLY

“Revenue increased in 2025 driven primarily by increased volume, partially offset by lower realized prices.”

Total revenues $45.0B → $65.2B+20,136

The quote contains no checkable figures; the lines it references are shown, and nothing on this page confirms or contradicts it.

1 LINES TRACED · ITEM 7 · EXECUTIVE OVERVIEW · FINANCIAL RESULTS · P.43

net income drivers◐PARTLY

“Net income and earnings per share increased in 2025, primarily due to higher gross margin, partially offset by increased marketing, selling, and administrative expenses and research and development expenses.”

Net income attributable to common $10.6B → $20.6B+10,050

Diluted earnings per share $11.71 → $22.95+11.24

Selling, general and administrative $8.6B → $11.1B+2,500

The quote contains no checkable figures; the lines it references are shown, and nothing on this page confirms or contradicts it.

3 LINES TRACED · ITEM 7 · EXECUTIVE OVERVIEW · FINANCIAL RESULTS · P.43

gross margin◐PARTLY

“Gross margin as a percent of revenue in 2025 increased 1.7 percentage points compared with 2024, primarily driven by favorable product mix and improved cost of production, partially offset by lower realized prices.”

Total revenues $45.0B → $65.2B+20,136

Cost of revenue $8.4B → $11.1B+2,634

The quote contains no checkable figures; the lines it references are shown, and nothing on this page confirms or contradicts it.

2 LINES TRACED · ITEM 7 · RESULTS OF OPERATIONS · GROSS MARGIN, COSTS, AND EXPENSES · P.50

SG&A increase✓MATCHES

“Marketing, selling, and administrative expenses increased 29 percent in 2025, primarily driven by promotional efforts supporting ongoing and planned launches.”

Selling, general and administrative $8.6B → $11.1B+2,500

Quoted 29 percentSelling, general and administrative: change +29.1%

Every quoted figure reconciles to the filed lines: 29 percent against selling, general and administrative.

1 LINES TRACED · ITEM 7 · RESULTS OF OPERATIONS · GROSS MARGIN, COSTS, AND EXPENSES · P.50

tax rate change◐PARTLY

“tax law changes in 2025 relative to 2024.”

Income tax provision $2.1B → $5.1B+3,001

Income before income taxes $12.7B → $25.7B+13,051

The quote contains no checkable figures; the lines it references are shown, and nothing on this page confirms or contradicts it.

2 LINES TRACED · ITEM 7 · RESULTS OF OPERATIONS · GROSS MARGIN, COSTS, AND EXPENSES · P.50

cash balance✓MATCHES

“Cash and cash equivalents increased to $7.3 billion as of December 31, 2025, compared with $3.3 billion at December 31, 2024.”

Cash and cash equivalents $3.3B → $7.3B+4,000

Quoted $7.3 billionCash and cash equivalents: filed $7.3B

Quoted $3.3 billionCash and cash equivalents: filed $3.3B

Every quoted figure reconciles to the filed lines: $7.3 billion against cash and cash equivalents; $3.3 billion against cash and cash equivalents.

1 LINES TRACED · ITEM 7 · FINANCIAL CONDITION AND LIQUIDITY · P.51

operating cash flow✓MATCHES

“Net cash provided by operating activities increased to $16.8 billion in 2025, compared with $8.8 billion in 2024.”

Net cash provided by operating activities $8.8B → $16.8B+7,995

Quoted $16.8 billionNet cash provided by operating activities: filed $16.8B

Quoted $8.8 billionNet cash provided by operating activities: filed $8.8B

Every quoted figure reconciles to the filed lines: $16.8 billion against net cash provided by operating activities; $8.8 billion against net cash provided by operating activities.

1 LINES TRACED · ITEM 7 · FINANCIAL CONDITION AND LIQUIDITY · P.51

total debt◐PARTLY

“As of December 31, 2025, total debt was $42.5 billion, an increase of $8.9 billion compared with $33.6 billion at December 31, 2024.”

Current debt $5.1B → $1.6B-3,482

Long-term debt $28.5B → $40.9B+12,341

The quoted figures do not map one-for-one onto a filed line on this page; carried as partly supported.

2 LINES TRACED · ITEM 7 · FINANCIAL CONDITION AND LIQUIDITY · P.51

Inventory vs revenue pace✗RED FLAG

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Inventory $7,589M → $13,744M+81.1%

Revenue $45,043M → $65,179M+44.7%

Gap 81.1% − 44.7%+36.4pp

Inventory grew +36.4pp faster than revenue. Above the 15pp threshold. Management's own account touching these lines appears in the "revenue growth" claim on this page (partial); this page has not independently verified it.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Receivables pace◐WATCH

SILENT IN MD&ADisclosed in the statements; not discussed by management.

DSO, prior year $11,006M ÷ $45,043M × 36589.2 days

DSO, current year $17,760M ÷ $65,179M × 36599.5 days

Change+10.3 days

Days sales outstanding moved +10.3 days. Carried as watch; this page verifies no stated cause.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Cash tax vs book charge◐WATCH

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Cash income taxes paid$10,814M

Total book tax charge$5,091M

Divergence ($10,814M − $5,091M) ÷ $5,091M+112.4%

Deferred tax asset $7,927M → $9,841M+1,914M

Cash taxes paid diverge from the total book charge by +112.4%. Carried as watch.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Goodwill weight✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Goodwill$5,898M

Total assets$112,476M

Weight $5,898M ÷ $112,476M5.2%

Impairments, three years (newest first)none filed

Goodwill is 5.2% of assets (threshold 40%), no impairment in three years.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Cash conversion stability✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Operating cash flow, three years (newest first)$16,813M · $8,818M · $4,240M

Net income attributable to common, three years (newest first)$20,640M · $10,590M · $5,240M

OCF ÷ NI, three years (newest first)0.81× · 0.83× · 0.81×

Swing 0.83× − 0.81×0.02×

Cause verified by this pageno

OCF ÷ NI ran 0.81× · 0.83× · 0.81× across three years — swing 0.02×, inside the 1.00× threshold.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Stock compensation in cash flow✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Share-based compensation$626M

Operating cash flow$16,813M

Share $626M ÷ $16,813M3.7%

Share-based compensation is 3.7% of operating cash flow (threshold 15%).

EARNINGS-QUALITY FLAG · 1 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Five-year seriesEACH OPENS ITS OWN PAGE WITH DERIVATION AND HISTORY

Revenue →Net income →Operating cash flow →Cash & equivalents →Total assets →Shareholders' equity →Total debt →Return on equity →Days sales outstanding →

Terms and acronyms used on this page

Income statement & cash flow

ImpairmentA write-down of an asset's carrying value. Non-cash, and it does not reverse. A large impairment in one year flatters the next year's comparison.

OCFOperating cash flow — net cash provided by operating activities, as reported.

FCFFree cash flow. Not a GAAP measure and not defined in this filing. Derived here as operating cash flow less additions to oil and gas property less leasehold acquisitions. The method is shown wherever the figure is used.

Balance sheet & market

Public floatThe market value of shares held by non-affiliates, disclosed on the 10-K cover at the prior 30 June. Converting it to a float percentage needs a share price on that date, which the filing does not contain.

Filing & document terms

10-KThe annual report filed with the SEC. Item 7 is management's discussion and analysis; Item 1A is risk factors; Item 8 and Item 15 carry the audited financial statements.

YoY · CAGRYear over year · compound annual growth rate.

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Not investment advice. DHI Signal publishes impersonal, rules-based research; no recommendation to buy or sell any security is made or implied. Every statement figure is transcribed from Lilly (Eli)'s Form 10-K for FY2025 (accession 0000059478-26-000013), pulled from EDGAR XBRL. Derived measures are computed only from lines shown on this page and the arithmetic is displayed so it can be checked. LLY is not in the tracked book. Market posture attaches only when the dashboard feed carries the name; this page computes none of it.