Eli Lilly and Company (LLY) Revenue-to-Profit Sankey Flow & SEC XBRL Financials
Eli Lilly and Company (LLY) earns a Roarable Rating of B (Buy) with 72/100 RQD Confidence. High-quality cash engine (84% profit margin, 32% return on capital) with steady institutional support. Even if the broader market gets choppy, the company’s underlying cash engine and big-money support put the odds in buyers’ favor.
How LLY Turns Every Dollar of Sales Into Real Bottom-Line Profit
Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory
| Fiscal Year | Revenue | Gross Margin | Op Margin | Net Profit | Free Cash Flow | ROIC % |
|---|---|---|---|---|---|---|
| FY 2025 | $65.18B | 83% | 39.5% | $20.64B | $16.81B | 32.9% |
| FY 2024 | $45.04B | 81.3% | 28.1% | $10.59B | $8.82B | 22.4% |
| FY 2023 | $34.12B | 79.3% | 19.2% | $5.24B | $4.24B | 15.6% |
| FY 2022 | $28.54B | 76.8% | 23.9% | $6.24B | $7.59B | 21.7% |
| FY 2021 | $28.32B | 74.2% | 21.7% | $5.58B | $7.37B | 22.1% |
| FY 2020 | $24.54B | 77.7% | 29.5% | $6.19B | $6.50B | 30.7% |
Eli Lilly's FY2025 10-K redline reflects sharp structural escalation in manufacturing reliance, compounding liability, and pricing renegotiation exposure tied to tirzepatide (Mounjaro/Zepbound). Disclosures across Item 1A and MD&A signal accelerating CDMO fill-finish bottlenecks, tightening payer formulary concessions, and heightened legal risk surrounding compounding pharmacy patent defense. Accession 0000059478-26-000013 reveals elevated capex absorption risks as external supply constraints intersect with potential GLP-1 margin compression.
Management is admitting that outsourced device assembly and sterile injectable capacity cannot keep up with runaway tirzepatide demand, capping near-term revenue upside and exposing Lilly to commercial penalties and market-share leakage to Novo Nordisk.
Unauthorized compounded GLP-1 sales have established an entrenched parallel market that is directly cannibalizing high-margin US commercial volumes, forcing Lilly into protracted and expensive multi-jurisdiction litigation as official FDA shortage lists normalize.
Top-line volume acceleration is masking severe rebate expansion. The Big 3 PBMs are capturing larger gross-to-net discounts in exchange for formulary placement, setting the stage for future operating margin compression once volume growth normalizes.
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LLY Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure
SEC XBRL FY2024 → FY2025: Net share cannibal / buyback tailwind.
vs. +45.5% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
Trigger: $1452.98 • Invalidation: $1349.50
LLY Investor FAQ & Complete 8-Part Research Index
100% OPEN ACCESS • SEC EDGAR × CBOE × FREDHow profitable is Eli Lilly and Company (LLY)?
In FY 2025 (10-K), LLY converted $65.2B of revenue into a 83% gross margin, 39.5% operating margin, and $16.8B in free cash flow (25.8% FCF margin).