Illumina, Inc 10-Q for FY2025 Q1

Illumina, Inc. (ILMN)

10-Q 2025-05-09 For: 2025-03-30

Added on April 12, 2026

About this 10-Q

Illumina, Inc filed this 10-Q on May 9, 2025, covering the quarter ended March 30, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.04B; down 3.3% from $1.08B a year earlier
Net income: $131M; compared with a net loss of $126M a year earlier
Diluted EPS: $0.82; compared with -$0.79 a year earlier

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Delaware						33-0804655
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	ILMN	The Nasdaq Stock Market LLC


CONDENSED CONSOLIDATED FINANCIAL STATEMENTS			PAGE
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Operations			6
Condensed Consolidated Statements of Comprehensive Income (Loss)			7
Condensed Consolidated Statement s of Stockholders’ Equity			8
Condensed Consolidated Statements of Cash Flows			10
Notes to Condensed Consolidated Financial Statements			11
1. Organization and Significant Accounting Policies			11

2. Revenue			12
3. Investments and Fair Value Measurements			13
4. Debt			16
5. Stockholders’ Equity			17
6. Supplemental Balance Sheet Details			19
7. Legal Proceedings			22
8. Income Taxes			26
9. Segment Information			26


MANAGEMENT’S DISCUSSION & ANALYSIS
Management’s Overview and Outlook			27
Results of Operations			30
Liquidity and Capital Resources			33
Critical Accounting Policies and Estimates			35
Recent Accounting Pronouncements			35
Quantitative and Qualitative Disclosures About Market Risk			35

OTHER KEY INFORMATION
Controls and Procedures			36
Legal Proceedings			36
Risk Factors			36
Share Repurchases and Sales			37
Adoptions, Modifications or Terminations of Trading Plans			37

Exhibits			38
Form 10-Q Cross-Reference Index			39


	March 30, 2025		December 29, 2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,113	$	1,127
Short-term investments	124		93
Accounts receivable, net	699		735
Inventory, net	537		547
Prepaid expenses and other current assets	200		244
Total current assets	2,673		2,746
Property and equipment, net	782		815
Operating lease right-of-use assets	410		419
Goodwill	1,113		1,113
Intangible assets, net	278		295
Deferred tax assets, net	553		567
Other assets	373		348
Total assets	$	6,182	$	6,303

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	207	$	221
Accrued liabilities	734		827
Term debt, current portion	499		499
Total current liabilities	1,440		1,547
Operating lease liabilities	539		554
Term debt	1,491		1,490
Other long-term liabilities	344		339
Stockholders’ equity:

Common stock	2		2
Additional paid-in capital	7,608		7,525
Accumulated other comprehensive income	8		22
Accumulated deficit	(1,111)		(1,242)
Treasury stock, at cost	(4,139)		(3,934)
Total stockholders’ equity	2,368		2,373
Total liabilities and stockholders’ equity	$	6,182	$	6,303


	Three Months Ended
	March 30, 2025		March 31, 2024
Revenue:
Product revenue	$	880	$	876
Service and other revenue	161		200
Total revenue	1,041		1,076
Cost of revenue:
Cost of product revenue	253		255
Cost of service and other revenue	88		106
Amortization of acquired intangible assets	17		48
Total cost of revenue	358		409
Gross profit	683		667
Operating expense:
Research and development	252		339
Selling, general and administrative	267		439


Total operating expense	519		778
Income (loss) from operations	164		(111)
Other income (expense):
Interest income	11		12
Interest expense	(25)		(18)
Other income, net	32		8
Total other income, net	18		2
Income (loss) before income taxes	182		(109)
Provision for income taxes	51		17
Net income (loss)	$	131	$	(126)
Earnings (loss) per share:
Basic	$	0.83	$	(0.79)
Diluted	$	0.82	$	(0.79)
Shares used in computing earnings (loss) per share:
Basic	159		159
Diluted	159		159


☑			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


				Additional		Accumulated Other							Total
	Common Stock			Paid-In		Comprehensive		Accumulated		Treasury Stock			Stockholders’
	Shares	Amount		Capital		Income (Loss)		Deficit		Shares	Amount		Equity
Balance as of December 31, 2023	199	$	2	$	9,555	$	(1)	$	(19)	(40)	$	(3,792)	$	5,745
Net loss	—	—		—		—		(126)		—	—		(126)
Unrealized gain on cash flow hedges, net of deferred tax	—	—		—		13		—		—	—		13
Issuance of common stock, net of repurchases	—	—		36		—		—		—	(1)		35
Share-based compensation	—	—		67		—		—		—	—		67
Balance as of March 31, 2024	199	2		9,658		12		(145)		(40)	(3,793)		5,734
Net loss	—	—		—		—		(1,988)		—	—		(1,988)
Unrealized gain on cash flow hedges, net of deferred tax	—	—		—		2		—		—	—		2
Issuance of common stock, net of repurchases	—	—		—		—		—		—	(1)		(1)
Share-based compensation	—	—		88		—		—		—	—		88
Spin-Off of GRAIL	—	—		(2,399)		—		—		—	—		(2,399)
Balance as of June 30, 2024	199	2		7,347		14		(2,133)		(40)	(3,794)		1,436
Net income	—	—		—		—		705		—	—		705
Unrealized loss on cash flow hedges, net of deferred tax	—	—		—		(19)		—		—	—		(19)
Issuance of common stock, net of repurchases	—	—		19		—		—		(1)	(99)		(80)
Share-based compensation	—	—		83		—		—		—	—		83
Balance as of September 29, 2024	199	2		7,449		(5)		(1,428)		(41)	(3,893)		2,125
Net income	—	—		—		—		186		—	—		186
Unrealized gain on cash flow hedges, net of deferred tax	—	—		—		27		—		—	—		27
Issuance of common stock, net of repurchases	1	—		(4)		—		—		—	(41)		(45)
Share-based compensation	—	—		80		—		—		—	—		80
Balance as of December 29, 2024	200	$	2	$	7,525	$	22	$	(1,242)	(41)	$	(3,934)	$	2,373


In millions	Q1 2025	Q1 2024
Weighted average shares used in calculating basic earnings (loss) per share	159	159


Weighted average shares used in calculating diluted earnings (loss) per share	159	159

Antidilutive shares:
Equity awards	1	3
Potentially dilutive shares excluded from calculation due to antidilutive effect	1	3


Based on region of destination (in millions)	Q1 2025		Q1 2024
Americas	$	570	$	603
Europe	293		279
Greater China (1)	72		78
Asia-Pacific, Middle East, and Africa (2)	106		116
Total revenue	$	1,041	$	1,076


Dollars in millions	Capital commitments		Callable through date	Remaining callable as of March 30, 2025 (1)
Fund I	$	100	April 2026	$	3
Fund II	$	150	July 2029	$	42
Fund III	$	60	December 2034	$	47


	March 30, 2025								December 29, 2024
In millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds (cash equivalents)	$	927	$	—	$	—	$	927	$	931	$	—	$	—	$	931
Marketable equity securities	124		—		—		124		93		—		—		93
Other investments	—		—		17		17		—		—		17		17
Deferred compensation plan assets	—		70		—		70		—		70		—		70
Total assets measured at fair value	$	1,051	$	70	$	17	$	1,138	$	1,024	$	70	$	17	$	1,111
Liabilities:
Contingent consideration liabilities	$	—	$	—	$	62	$	62	$	—	$	—	$	73	$	73
Deferred compensation plan liability	—		66		—		66		—		65		—		65
Total liabilities measured at fair value	$	—	$	66	$	62	$	128	$	—	$	65	$	73	$	138


In millions
Balance as of December 29, 2024	$	73

Change in estimated fair value	(11)

Balance as of March 30, 2025	$	62


	Restricted Stock Units (RSU)	Performance Stock Units (PSU) (1)	Weighted-Average Grant Date Fair Value per Share
Units in thousands			RSU		PSU
Outstanding at December 29, 2024	3,879	700	$	158.60	$	164.87
Awarded	1,640	234	$	86.85	$	97.77
Vested	(728)	—	$	146.86	$	—
Cancelled	(104)	(38)	$	156.33	$	181.64
Outstanding at March 30, 2025	4,687	896	$	135.37	$	115.97


Risk-free interest rate	4.06% - 4.94%
Expected volatility	41% - 48%
Expected term	0.5 - 1.0 year
Expected dividends	0%
Weighted-average grant-date fair value per share	$	25.84


1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES


2. REVENUE


	Q1 2025						Q1 2024
In millions	Sequencing		Microarray		Total		Sequencing		Microarray		Total
Consumables	$	696	$	72	$	768	$	691	$	71	$	762
Instruments	109		3		112		110		4		114
Total product revenue	805		75		880		801		75		876
Service and other revenue	142		19		161		178		22		200
Total revenue	$	947	$	94	$	1,041	$	979	$	97	$	1,076


3. INVESTMENTS AND FAIR VALUE MEASUREMENTS


In millions, except shares in thousands
Number of shares repurchased	1,728
Total cost of shares repurchased (1)	$	201


In millions	Employee Separation Costs (1)		Other Costs		Total
Amount recorded in accrued liabilities as of December 29, 2024	$	2	$	2	$	4
Additional expense recorded	31		—		31
Cash payments	(4)		(2)		(6)

Amount recorded in accrued liabilities as of March 30, 2025	$	29	$	—	$	29

Estimated costs to still be incurred	$	15	$	—	$	15


In thousands, except price per share	Total Number of Shares Purchased	Average Price Paid per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
December 30, 2024 - January 26, 2025	226	$	136.84	226	$	1,353,529
January 27, 2025 - February 23, 2025	1,417	$	113.52	1,417	$	1,192,698
February 24, 2025 - March 30, 2025	85	$	96.96	85	$	1,184,405
Total	1,728	$	115.74	1,728	$	1,184,405


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements			5
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Operations			6
Condensed Consolidated Statements of Comprehensive Income (Loss)			7
Condensed Consolidated Statement of Stockholders’ Equity			8
Condensed Consolidated Statements of Cash Flows			10
Notes to Condensed Consolidated Financial Statements			11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			27
Item 3. Quantitative and Qualitative Disclosures About Market Risk			35
Item 4. Controls and Procedures			36

PART II. OTHER INFORMATION
Item 1. Legal Proceedings			36
Item 1A. Risk Factors			36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			37
Item 3. Defaults Upon Senior Securities			None
Item 4. Mine Safety Disclosures			Not Applicable
Item 5. Other Information			37
Item 6. Exhibits			38
Signatures			40


		ILLUMINA, INC. (registrant)

Date:	May 8, 2025
		By:	/s/ ANKUR DHINGRA
		Name:	Ankur Dhingra
		Title:	Chief Financial Officer


1	I have reviewed this Quarterly Report on Form 10-Q of Illumina, Inc.;

2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


			By:						/s/ JACOB THAYSEN
			Name:						Jacob Thaysen
			Title:						Chief Executive Officer