Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

Gross Profit Margin

The gross profit margin started being reported from March 31, 2020, with values around 86.82% and maintained a relatively stable range mostly between 84.65% and 87.18% throughout the observed periods. Minor fluctuations occurred but no significant upward or downward trend is evident, indicating consistent profitability in core operations relative to revenue.

Operating Profit Margin

This margin displayed a notable increase from 42.09% in March 2020, rising steadily to a peak of approximately 55.67% by March 2021. Following this peak, a gradual decline ensued over the subsequent quarters, reaching around 27.02% by June 2025. This pattern suggests that operating efficiency improved during early 2020-2021 but faced increasing pressures or higher operating costs thereafter, reducing profitability at the operating level.

Net Profit Margin

The net profit margin trends closely mirror those of the operating margin. Starting at 41.35% in March 2020, the margin increased to a peak near 51.65% by December 2020 before gradually diminishing to approximately 31.37% in June 2025. Despite the decrease, the margin remains relatively strong, signaling that the company retains solid bottom-line profitability but experienced heightened expense or taxation impacts in the latter periods.

Return on Equity (ROE)

ROE exhibited a strong upward trajectory initially, moving from 31.86% in March 2020 to a high of around 43.03% by March 2021. Subsequently, ROE declined significantly to values in the mid-teens range, stabilizing near 14.89% by June 2025. This decline indicates decreasing earnings efficiency relative to shareholders' equity, which could reflect increased equity base, reduced net income, or both.

Return on Assets (ROA)

The ROA showed a similar pattern to ROE, advancing from 20.47% in March 2020 to a peak approximately 31.75% in March 2021. Afterward, a decline occurred, bringing the ratio down to near 11.67% by June 2025. This indicates reduced asset utilization efficiency over time, with assets generating lower returns in more recent periods compared to earlier ones.

The financial data reveals several notable patterns and trends over the observed periods.

Gross Profit

The gross profit shows a generally volatile pattern with periods of significant increase and decrease. From March 2020 to December 2021, gross profit experienced sharp fluctuations, notably peaking at 4,444,800 thousand US dollars in June 2021 and again at 3,969,100 thousand US dollars in December 2021. Following this peak, gross profit declined and stabilized around the 2.5 to 3.2 million thousand US dollars range through 2022 and into the start of 2024. The final quarters in 2024 and 2025 indicate some variability, with a significant drop to 2,564,400 thousand US dollars in March 2025 before rising again to 3,145,400 thousand US dollars in June 2025.

Revenues

Revenues similarly display volatility with an overall upward trend but with considerable quarter-to-quarter variation. There is a marked increase in mid-2021, with revenues nearly doubling from 2,528,700 thousand US dollars in March 2021 to over 5.1 million thousand US dollars in June 2021. Revenues then declined sharply but remained elevated compared to earlier periods, fluctuating between 2.9 and 3.7 million thousand US dollars across 2022, 2023, and early 2024. Towards the end of the observed periods, revenues dipped notably to 3,028,700 thousand US dollars in March 2025 before recovering slightly in June 2025.

Gross Profit Margin

The gross profit margin figures are consistently high and stable from March 2021 onward, remaining within a tight range of approximately 85.5% to 87.2%. This stability suggests effective cost management relative to revenues despite the fluctuations in absolute profit and revenue values. There is no evident trend of improvement or deterioration in margin ratios, indicating that the company has maintained its profitability efficiency over the analyzed timeframe.

Overall, the financial data illustrates a company experiencing significant short-term volatility in both revenues and gross profit, with a stable and strong gross profit margin maintained throughout. The mid-2021 quarters were exceptional with substantial spikes in profitability and revenues, after which the metrics normalized but remained at relatively high levels compared to the early part of 2020. The sharp decrease observed in early 2025, followed by recovery, may warrant closer monitoring to understand underlying causes and potential impacts on future performance.

The financial data exhibits fluctuating trends in income from operations, revenues, and operating profit margin over the reported periods. Notably, income from operations displays significant volatility, with a peak observed in the second quarter of 2021, reaching approximately $3.35 billion. Following this peak, income from operations experiences a general downward trend, with intermittent recoveries, approaching values near $1 billion or below towards the later quarters in 2025.

Revenues show a general upward trajectory over the earlier periods, with sizeable increases particularly evident between the first quarter of 2021 and the fourth quarter of 2021, with revenues rising from approximately $2.53 billion to nearly $5 billion. Post this surge, revenues fluctuate but maintain relatively high levels, ranging from about $2.8 billion to over $3.7 billion in more recent quarters. Some quarters exhibit declines, notably around the first quarter of 2025, where revenues drop to around $3 billion, before slightly increasing again.

The operating profit margin is provided from the first quarter of 2021 onwards and shows a peak exceeding 55% in the latter half of 2021. From this high point, the margin demonstrates a steady decline through to 2025, decreasing from over 55% to around 27% by mid-2025. This downward trend suggests diminishing efficiency in converting revenue into operating profit over time.

Income from Operations

Strong variability is apparent with a pronounced peak in mid-2021 followed by a declining pattern. The decline indicates possible operational challenges or increased costs affecting profitability despite revenues.

Revenues

Revenues increased significantly during 2021, possibly driven by expanded sales or market conditions. Despite fluctuations, revenues remain relatively elevated through the later periods, suggesting sustained demand or growth initiatives. A notable dip in early 2025 could signify market or operational shifts.

Operating Profit Margin

The margin reached its highest point above 55% in 2021 but has steadily declined since then to approximately 27% by mid-2025. This reduction implies increased cost pressures, reduced pricing power, or other factors negatively impacting operating profitability despite revenue levels.

Overall, the data reveals that while revenues have generally increased or remained strong over time, income from operations and operating profit margins have faced downward pressures after peaking in 2021. This divergence suggests that the company may be experiencing cost increases or efficiency challenges that are eroding profitability even in the face of sustained or growing revenue streams.

Net Income

The net income exhibited volatility across the quarters observed. Starting from a value of 624.6 million USD in Q1 2020, it showed a general upward trend through the rest of 2020 and into mid-2021, peaking notably at 3.10 billion USD in Q2 2021. Subsequently, net income experienced fluctuations with no consistent growth or decline pattern, marked by decreases and recoveries over the following periods. In 2022 and 2023, net income remained within a range generally between approximately 800 million USD to 1.3 billion USD, with a moderate increase toward the end of 2023 and early 2024. The latest quarters suggest some recovery, but the figures do not approach the mid-2021 peak levels.

Revenues

Revenues showed a strong upward movement from Q1 2020 through mid-2021, rising from 1.83 billion USD to a peak of 5.14 billion USD in Q2 2021. This represented a significant increase in a relatively short period. After this spike, revenues exhibited variability with a general declining trend into 2022, reaching a low near 2.85 billion USD in Q2 2022. Through 2022 and 2023, revenues stabilized around the 3.1 to 3.4 billion USD range, maintaining this level with modest quarter-to-quarter fluctuations. The most recent data indicate some strengthening in revenue late in 2023 and into 2024, though the values remain below the peak levels seen in mid-2021.

Net Profit Margin

The net profit margin data, available from Q1 2021 onwards, highlights strong profitability, with percentages consistently above 30%. The margin peaked at over 50% in mid-2021, coinciding with the peak revenue and net income periods. Following this peak, the margin gradually declined but remained relatively high, fluctuating between approximately 29% and 35% through 2022 and 2023. Into 2024, the margin demonstrates a slight recovery trend, settling around the low 30% range, suggesting sustained profitability despite revenue and income fluctuations.

Overall Analysis

The data indicate that the company experienced significant growth in revenue and net income during 2020 and early 2021, reaching peak performance in mid-2021. This period was marked by strong profitability as evidenced by the net profit margin exceeding 50%. Following this peak, there was a notable decline and higher volatility in both revenue and income figures, with stabilization occurring in the subsequent periods at levels below the earlier highs. Profitability remained robust throughout, although a gradual reduction from peak margin values was observed. Recent quarters show some improvement in revenues and net income, alongside steady profit margins, suggesting a potential recovery phase. The overall pattern points to a company capable of high profitability but subject to external or internal factors impacting consistent growth in recent periods.

The analysis of the financial data reveals several notable trends in profitability and equity over the examined periods.

Net Income

The net income figures display significant volatility across the quarters. Initial values range from approximately 624.6 million USD to over 3 billion USD, with a peak observed in June 2021 at nearly 3.1 billion USD. After this peak, there is a general declining trend through late 2022, followed by a moderate recovery into early 2024. Specifically, net income dropped below 1 billion USD in the first quarter of 2022 but surged above 1.4 billion USD in the middle quarters of 2024 before declining again in subsequent quarters. This pattern suggests fluctuating profitability, potentially influenced by market conditions or operational changes.

Stockholders’ Equity

Stockholders’ equity has shown steady growth over the period from about 12.1 billion USD at the start of 2020 to nearly 30 billion USD by mid-2025. This consistent upward trend indicates ongoing capital accumulation or retained earnings contributing to the equity base, reflecting financial strengthening and possibly effective management of resources.

Return on Equity (ROE)

Return on equity, available from late 2020 onwards, demonstrates a peak in the first half of 2021, reaching above 40%, which corresponds with the period of the highest net income. Subsequently, ROE declines steadily through 2022 and 2023, stabilizing in the 14-17% range in recent quarters. This decrease could imply that while equity is growing, net income growth is not keeping pace proportionally, leading to diminishing efficiency in generating profits from shareholders’ investments.

In summary, while the company has expanded its equity base significantly, its profitability, as measured by net income and ROE, has experienced fluctuations with a notable peak in mid-2021 followed by declining returns. The reduced ROE amidst rising equity levels suggests a potential need to improve profit generation efficiency moving forward.

Net Income

The net income shows substantial volatility across the reported quarters. Initially, there is a steady increase from $624.6 million in Q1 2020 to a peak of approximately $3.1 billion in Q2 2021. After this peak, net income declines notably, fluctuating between $808.7 million and $1.6 billion in the subsequent quarters up to Q2 2025. This pattern indicates a period of strong profitability ending mid-2021, followed by a correction and stabilization at lower profitability levels through to mid-2025.

Total Assets

Total assets display a consistent upward trend throughout the observed periods. Starting at about $15.76 billion in Q1 2020, total assets increase steadily each quarter, reaching approximately $38.22 billion by Q2 2025. This growth reflects continuous expansion or accumulation of resources and investments over the years, with no significant declines or contractions evident in the data.

Return on Assets (ROA)

The ROA values, reported from Q4 2020 onwards, present a declining trend over time. Beginning with a high of 20.47% in Q4 2020, the ratio climbs to a peak of 31.75% in Q1 2022, indicating a period of enhanced asset utilization efficiency. Subsequently, there is a steady decrease to approximately 11.67% by Q2 2025. This downward trajectory suggests diminishing returns on the growing asset base, despite the overall increase in total assets.

Overall Insights

The data indicates that while the company has substantially increased its asset base during the period analyzed, profitability metrics such as net income and ROA have not consistently kept pace. The peak net income and ROA in early 2021 and early 2022 respectively suggest optimal operational performance during that timeframe. However, the subsequent declines in both net income and ROA imply reduced efficiency and profitability relative to the asset base in the later periods. Continued asset growth combined with lower returns could be indicative of investments that are yet to fully contribute to earnings or shifts in operational dynamics.