Illumina Reports Q2 2025 Revenue Decline to $1.059 Billion, Achieves Net Income Turnaround

Illumina, Inc. reported its financial results for the second quarter of 2025, revealing total revenue of $1.059 billion, a decrease of 4.8% compared to $1.112 billion in the same quarter of the previous year. The decline was primarily attributed to a drop in product revenue, which fell to $912 million from $927 million year-over-year. Service and other revenue also decreased to $147 million from $185 million. Despite the revenue decline, the company achieved a net income of $235 million, a significant turnaround from a net loss of $1.988 billion in Q2 2024, largely due to the absence of substantial impairment charges that had impacted the previous year’s results.

In terms of operational metrics, Illumina's gross profit for the quarter was $695 million, resulting in a gross margin of approximately 65.6%, compared to 64.8% in Q2 2024. The company’s total operating expenses were reported at $481 million, down from $2.358 billion in the prior year, which included significant impairment charges related to goodwill and intangible assets. The reduction in operating expenses reflects the company's ongoing cost management initiatives, including workforce reductions and facility consolidations.

Illumina's strategic developments included the announcement of a planned acquisition of SomaLogic and certain assets from Standard BioTools for $350 million, expected to close in the first half of 2026, pending regulatory approvals. This acquisition is part of Illumina's strategy to enhance its product offerings in the proteomics market. The company also reported a cash and cash equivalents balance of $934 million as of June 29, 2025, down from $1.127 billion at the end of 2024, reflecting cash used in share repurchase activities and operational expenditures.

Geographically, revenue from the Americas decreased to $586 million from $640 million, while revenue from Europe increased to $310 million from $289 million. Revenue from Greater China fell to $63 million from $75 million, and revenue from the Asia-Pacific, Middle East, and Africa region decreased to $100 million from $108 million. The company noted that it continues to face challenges in the Greater China market, including regulatory issues that have impacted its ability to export sequencing instruments.

Looking ahead, Illumina anticipates continued challenges in the market, particularly in relation to funding for the National Institutes of Health and ongoing geopolitical tensions affecting its operations in China. The company remains focused on integrating SomaLogic into its operations and expects to leverage its existing technology and products to drive future growth. Illumina's management emphasized the importance of maintaining a strong balance sheet and operational efficiency as it navigates these challenges.