ELAN

Elanco is a pure-play animal-health company with a solid product gross margin of 55.0% and renewed top-line momentum — FY2025 revenue grew 6.2% to $4.71B, the best growth in the five-year record after several flat years. Yet the company swung back to a GAAP net loss of -$232M (EPS -$0.47) from a +$338M profit in FY2024, leaving net margin at -4.9% and ROE at -3.5%. The five-year history is volatile: losses of -$483M, -$78M and -$1.23B (FY2021-FY2023), a single profitable year, and now another loss. Much of this reflects the heavy intangible amortization from its Bayer-era acquisition — depreciation and amortization of $680M dwarfs the reported loss, so cash earnings are meaningfully better than GAAP.

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