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Hologic(HOLX) - 2025 Q2 - Quarterly Results
HOLXHologic(HOLX)2025-05-01 20:02

Revenue Performance - Revenue for Q2 2025 was 1,005.3million,adecreaseof1.21,005.3 million, a decrease of 1.2% compared to the prior year, but slightly above the guidance range of 995 to 1,005million[2].−TotalrevenuesforthethreemonthsendedMarch29,2025,were1,005 million[2]. - Total revenues for the three months ended March 29, 2025, were 1,005.3 million, a slight decrease from 1,017.8millionforthesameperiodin2024,representingadeclineofapproximately1.51,017.8 million for the same period in 2024, representing a decline of approximately 1.5%[22]. - Consolidated GAAP revenue for the three months ended March 29, 2025, was 1,005.3 million, a slight decrease of 1.5% compared to 1,017.8millionintheprioryear[29].−OrganicrevenueexcludingCOVID−19forthesixmonthsendedMarch29,2025,was1,017.8 million in the prior year[29]. - Organic revenue excluding COVID-19 for the six months ended March 29, 2025, was 1,902.5 million, a decrease of 0.4% from 1,909.3millioninthesameperiodof2024[29].EarningsandProfitability−GAAPdilutedEPSwasalossof(1,909.3 million in the same period of 2024[29]. Earnings and Profitability - GAAP diluted EPS was a loss of (0.08), down from 0.72intheprioryear,whilenon−GAAPdilutedEPSwas0.72 in the prior year, while non-GAAP diluted EPS was 1.03, flat compared to the prior year and at the high end of guidance[2][4]. - Net income for the three months ended March 29, 2025, was a loss of 17.4million,comparedtoanetincomeof17.4 million, compared to a net income of 169.9 million for the same period in 2024, indicating a significant decrease[22]. - GAAP net income for the three months ended March 29, 2025, was a loss of 17.4million,whilethepreviousyearshowedaprofitof17.4 million, while the previous year showed a profit of 169.9 million[31]. - Non-GAAP net income for the six months ended March 29, 2025, was 471.5million,comparedto471.5 million, compared to 480.5 million in the same period last year[31]. - Adjusted EBITDA for the six months ended March 29, 2025, was 651.9million,comparedto651.9 million, compared to 650.6 million in the prior year[31]. Revenue Segmentation - Diagnostics revenue increased by 0.8% to 453.6million,primarilydrivenbyhighermoleculardiagnosticssales,whileorganicdiagnosticssalesexcludingCOVID−19grewby4.5453.6 million, primarily driven by higher molecular diagnostics sales, while organic diagnostics sales excluding COVID-19 grew by 4.5%[2][5]. - Breast Health revenue decreased by 7.4% to 356.2 million, primarily due to lower sales of mammography capital equipment[2][5]. - Surgical revenue grew by 4.2% to 162.5million,drivenbytheadditionoftheacquiredGynesonicsbusinessandstronginternationalsales[2][5].ExpensesandCosts−OperatingexpensesforthethreemonthsendedMarch29,2025,totaled162.5 million, driven by the addition of the acquired Gynesonics business and strong international sales[2][5]. Expenses and Costs - Operating expenses for the three months ended March 29, 2025, totaled 384.3 million, an increase from 331.9millioninthesameperiodin2024,markinganincreaseofapproximately15.7331.9 million in the same period in 2024, marking an increase of approximately 15.7%[22]. - Research and development expenses for the three months ended March 29, 2025, were 61.5 million, down from 74.6millioninthesameperiodin2024,representingadecreaseofabout17.574.6 million in the same period in 2024, representing a decrease of about 17.5%[22]. - GAAP gross margin decreased by 1,580 basis points to 37.5%, primarily due to impairment charges on intangible assets[10]. Cash Flow and Financial Position - Cash flow from operations was 169.5 million, with cash and cash equivalents at 1.43billionattheendofthequarter[10].−Cashandcashequivalentsattheendoftheperiodwere1.43 billion at the end of the quarter[10]. - Cash and cash equivalents at the end of the period were 1,429.5 million, down from 2,180.0million,representingadecreaseof34.42,180.0 million, representing a decrease of 34.4%[26]. - Total assets decreased to 8,545.1 million from 9,156.0million,adeclineofapproximately6.79,156.0 million, a decline of approximately 6.7%[24]. - Total current liabilities decreased to 989.7 million from 1,037.2million,areductionofapproximately4.61,037.2 million, a reduction of approximately 4.6%[24]. Shareholder Actions - The company repurchased 3.0 million shares for 200 million during the quarter[2]. - Repurchases of common stock amounted to 717.3millionduringthesixmonthsendedMarch29,2025,comparedto717.3 million during the six months ended March 29, 2025, compared to 676.8 million in the prior year[26]. Guidance and Future Expectations - Full-year revenue guidance for fiscal 2025 is maintained at 4,050−4,050 - 4,100 million, while non-GAAP EPS guidance is slightly lowered to 4.15−4.15 - 4.25[7][9]. - The company expects GAAP net income per share for the quarter ending June 28, 2025, to be between 0.85and0.85 and 0.88[33]. Impairment and Charges - The impairment of intangible assets for the three months ended March 29, 2025, was 183.4million,significantlyhigherthan183.4 million, significantly higher than 25.9 million for the same period in 2024[22]. - The company reported an impairment charge of $220.9 million for intangible assets during the six months ended March 29, 2025[26]. Return on Investment - Adjusted Return on Invested Capital (ROIC) was 13.7%, an increase of 30 basis points compared to the prior year[10]. - Adjusted return on invested capital (ROIC) for the trailing twelve months ended March 29, 2025, was 13.7%[35]. Geographic Revenue Breakdown - Geographic revenue breakdown for the three months ended March 29, 2025: United States 74.1%, Europe 14.6%, Asia-Pacific 5.9%, and Rest of World 5.4%[38].