VTRS · 10-Q · 2026Q2 · Full report
Other Income (Expense), Net
Viatris Inc · 2026-08-06 · Importance 77 · Surprise 82 · From source text
Second-quarter 2026 other income was $50.4 million, compared with $333.5 million of other expense in the prior-year quarter, a favorable change of $383.9 million. The improvement primarily reflected a $56.3 million gain from changes in the fair value of Biocon equity shares versus a $284.0 million Biocon fair-value loss in the prior-year quarter. Six-month other income was $2.9 million, compared with $432.8 million of expense in the prior-year period, a favorable change of $435.7 million. The six-month improvement was partly offset by an $8.6 million loss from Biocon equity-share fair-value changes in 2026.
Key facts
- Other (income) expense, net for the three months ended June 30, 2026 totaled $50.4 million of income, compared to $333.5 million of expense for the three months ended June 30, 2025, a change of $383.9 million, primarily driven by a prior year loss of $284.0 million on changes in fair value of CCPS in Biocon Biologics and a current year gain of $56.3 million on changes in fair value of Biocon equity shares. source
- Other (income) expense, net for the six months ended June 30, 2026 totaled $2.9 million of income, compared to $432.8 million of expense for the six months ended June 30, 2025, a change of $435.7 million, primarily driven by a prior year loss of $399.8 million from changes in the fair value of the CCPS in Biocon Biologics and a decrease in the loss on divestitures of $66.8 million, partially offset by a current year loss of $8.6 million related to changes in fair value of equity shares of Biocon. source
- U.S. GAAP net (loss) earnings to EBITDA: U.S. GAAP net (loss) earnings for the three months ended June 30, 2026 of $(118.8) million and for the three months ended June 30, 2025 of $57.6 million; addbacks included income tax provision (benefit) of $54.8 and $(212.5) respectively, interest expense of $120.7 and $116.6 respectively and depreciation and amortization of $672.3 and $678.3 respectively, resulting in EBITDA of $729.0 million for the three months ended June 30, 2026 and $577.8 million for the three months ended June 30, 2025. source
- EBITDA for the six months ended June 30, 2026 was $1,277.9 million and for the six months ended June 30, 2025 was $(1,739.0) million. source
- SG&A expense for the three months ended June 30, 2026 was $1,132.7 million, compared to $928.7 million for the comparable prior year period, an increase of $205.8 million, primarily driven by a charge of $177.8 million related to the planned sale of the product rights for Tyrvaya®. source
- SG&A expense for the six months ended June 30, 2026 was $2,058.7 million, compared to $1,872.2 million for the comparable prior year period, an increase of $186.5 million, primarily driven by a charge of $177.8 million related to the planned sale of the product rights for Tyrvaya®. source
- Adjusted EBITDA for the three months ended June 30, 2026 was $1,188.3 million and for the three months ended June 30, 2025 was $1,078.8 million; adjusted EBITDA for the six months ended June 30, 2026 was $2,237.8 million and for the six months ended June 30, 2025 was $2,002.3 million. source
- During the prior year period, the Company recorded a goodwill impairment charge of $2.94 billion in conjunction with its interim goodwill impairment test as of March 31, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +11.6% | Other (income) expense, net for the six months ended June 30, 2026 totaled $2.9 million of income, compared to $432.8 million of expense… |
| net_income | positive | realized | +10.3% | Other (income) expense, net for the three months ended June 30, 2026 totaled $50.4 million of income, compared to $333.5 million of… |
| operating_income | positive | realized | +6.3% | Adjusted EBITDA for the three months ended June 30, 2026 was $1,188.3 million and for the three months ended June 30, 2025 was $1,078.8… |
| operating_income | negative | realized | -5.5% | SG&A expense for the three months ended June 30, 2026 was $1,132.7 million, compared to $928.7 million for the comparable prior year… |
| operating_income | negative | realized | -5.0% | SG&A expense for the six months ended June 30, 2026 was $2,058.7 million, compared to $1,872.2 million for the comparable prior year… |
| operating_income | positive | realized | +2.9% | Adjusted EBITDA for the three months ended June 30, 2026 was $1,188.3 million and for the three months ended June 30, 2025 was $1,078.8… |
| net_income | positive | realized | +1.5% | During the three and six months ended June 30, 2026, the Company recognized a (gain)/loss of approximately $(56.3) million and $8.6… |
| net_income | negative | realized | -0.2% | During the three and six months ended June 30, 2026, the Company recognized a (gain)/loss of approximately $(56.3) million and $8.6… |