INDV

Indivior is a specialty pharma focused on opioid-use-disorder treatment, anchored by the long-acting injectable Sublocade and the Suboxone franchise. FY2025 marks a sharp earnings recovery: revenue grew 4.3% to $1.24B (gross margin a rich 80.2%), but the real story is below the gross line — litigation settlement expense collapsed to $3M from $195M in FY2024 and $239M in FY2023, allowing operating income to surge to $262M (from $38M) and net income to jump to $210M (diluted EPS $1.64) from just $7M. The multi-year litigation overhang that produced losses (-$126M in FY2023) and crushed the balance sheet is now largely resolved, and that is what drove the profitability inflection.

The balance sheet is healing but still impaired. Total stockholders' deficit improved dramatically to -$98M from -$337M as FY2025 earnings rebuilt the accumulated deficit (to -$243M from -$443M), but equity remains negative — which is why the reported ROE (-214%) and liabilities/equity (-13.27x) are meaningless artifacts rather than signals of operating leverage. Liabilities fell 21.3%, including a large reduction in accrued litigation (noncurrent litigation accruals dropped to $52M from $365M). However, cash fell 38.9% to $195M, operating cash flow was negative $27M (pressured by settlement payments and a 127.6% jump in capex to $66M for the Raleigh manufacturing expansion), and the company carries a $333M note purchase agreement with substantially all assets pledged and restrictive covenants.