Hologic Announces Financial Results for Third Quarter of Fiscal 2025
– Revenue of
– Company Reports GAAP Diluted EPS of
– In Fourth Quarter, Company Remains on Track for Solid Revenue Growth and Faster Non-GAAP EPS Growth –
“We are pleased to have delivered revenue and non-GAAP earnings growth in the third quarter that exceeded our guidance ranges,” said Stephen P. MacMillan, the Company’s Chairman, President and Chief Executive Officer. “And we made great progress toward returning to better top- and bottom-line growth in the fourth quarter, driven by the continued rebound of our Breast Health business and solid performances by our other divisions.”
Recent Highlights
-
Revenue of
$1,023.8 million 1.2% for the quarter, or0.4% in constant currency. This compares to the guidance range of$1,000 $1,010 million -
Total organic revenue excluding COVID-19, the divested blood screening and SSI businesses, and the acquired Endomagnetics and Gynesonics businesses decreased (
0.8% ), or (1.7% ) on a constant currency basis.
-
Total organic revenue excluding COVID-19, the divested blood screening and SSI businesses, and the acquired Endomagnetics and Gynesonics businesses decreased (
-
GAAP diluted EPS of
$0.86 4.9% . Non-GAAP EPS of$1.08 1.9% and exceeded the high-end of the guidance range of$1.04 $1.07 -
Diagnostics revenue of
$448.9 million 1.8% , or0.9% in constant currency, primarily driven by higher molecular diagnostics sales, partially offset by lower sales of COVID-19 assays.-
Excluding COVID-19 revenue, organic diagnostics sales grew
3.9% , or2.9% on a constant currency basis. -
Molecular diagnostics revenue increased
3.2% , or2.4% in constant currency, primarily driven by higher sales of the Company’s BV CV/TV and Panther Fusion assays. -
Excluding COVID-19 revenue, molecular diagnostics revenue grew
6.0% , or5.2% on a constant currency basis. This included7.3% growth inthe United States .
-
Excluding COVID-19 revenue, organic diagnostics sales grew
-
Breast Health revenue of
$365.2 million 5.1% ), or (5.8% ) in constant currency, primarily driven by lower sales of mammography capital equipment, as expected. This decline was partially offset by the inclusion of Endomagnetics revenue and increased service contract revenue.-
Organic breast health revenue, which excludes sales from the divested SSI and acquired Endomagnetics businesses, decreased (
10.1% ), or (10.8% ) in constant currency.
-
Organic breast health revenue, which excludes sales from the divested SSI and acquired Endomagnetics businesses, decreased (
-
Surgical revenue of
$178.4 million 7.1% , or6.3% in constant currency, primarily driven by the acquired Gynesonics business and strong international sales.-
Organic surgical revenue, which excludes sales from Gynesonics, increased
2.0% , or1.2% in constant currency.
-
Organic surgical revenue, which excludes sales from Gynesonics, increased
-
Cash flow from operations was a strong
$343.2 million -
The Company refinanced its term loan and revolving credit facility in July. The facility now comprises a
$1.17 billion $1.25 billion
Key financial results for the fiscal third quarter are shown in the table below.
|
GAAP |
|
Non-GAAP |
||||
|
Q3’25 |
Q3’24 |
Change Increase (Decrease) |
|
Q3’25 |
Q3’24 |
Change Increase (Decrease) |
Revenue |
|
|
|
|
|
|
|
Gross margin |
|
|
90 bps |
|
|
|
(80 bps) |
Operating expenses |
|
|
|
|
|
|
|
Operating margin |
|
|
80 bps |
|
|
|
(110 bps) |
Net margin |
|
|
(20 bps) |
|
|
|
(100 bps) |
Diluted EPS |
|
|
|
|
|
|
|
Throughout this press release, all dollar figures are in millions, except EPS, unless otherwise noted. Some totals may not foot due to rounding. Unless otherwise noted, all results are compared to the corresponding prior year period. Non-GAAP results exclude certain cash and non-cash items as discussed under “Use of Non-GAAP Financial Measures.” Constant currency percentage changes show current period revenue results as if the foreign exchange rates were the same as those in the prior year period. Organic revenues for the fiscal third quarter exclude the divested blood screening and SSI ultrasound imaging businesses, as well as the acquired Endomagnetics (included in interventional breast solutions) and Gynesonics (included in GYN surgical) businesses. Revenue from acquired businesses is generally included in organic revenue starting a year after the acquisition.
Revenue Detail
Increase (Decrease) |
|||||||||||||||
$ in millions |
Q3’25 |
Q3’24 |
Global Reported Change |
Global Constant Currency Change |
Reported Change |
International Reported Change |
International Constant Currency Change |
|
|||||||
Diagnostics |
|
|
|
|
|
|
|
|
|||||||
Cytology and perinatal |
|
|
(0.7 |
%) |
(2.2 |
%) |
3.4 |
% |
(6.8 |
%) |
(10.6 |
%) |
|
||
Molecular diagnostics |
|
|
3.2 |
% |
2.4 |
% |
3.6 |
% |
1.2 |
% |
(2.2 |
%) |
|
||
Blood screening |
|
|
(11.4 |
%) |
(11.4 |
%) |
(11.4 |
%) |
N/A |
|
N/A |
|
|
||
Total diagnostics |
|
|
1.8 |
% |
0.9 |
% |
3.2 |
% |
(2.2 |
%) |
(5.8 |
%) |
|
||
Organic diagnostics ex. COVID-19 |
|
|
3.9 |
% |
2.9 |
% |
6.3 |
% |
(2.6 |
%) |
(6.3 |
%) |
|
||
Organic molecular ex. COVID-19 |
|
|
6.0 |
% |
5.2 |
% |
7.3 |
% |
1.0 |
% |
(2.6 |
%) |
|
||
|
|
|
|
|
|
|
|
|
|||||||
Breast health |
|
|
|
|
|
|
|
|
|||||||
Breast imaging |
|
|
(14.4 |
%) |
(15.0 |
%) |
(15.0 |
%) |
(12.2 |
%) |
(14.8 |
%) |
|
||
Interventional breast solutions |
|
|
32.6 |
% |
31.8 |
% |
25.5 |
% |
59.8 |
% |
55.9 |
% |
|
||
Total breast health |
|
|
(5.1 |
%) |
(5.8 |
%) |
(6.9 |
%) |
1.2 |
% |
(1.7 |
%) |
|
||
Organic breast health |
|
|
(10.1 |
%) |
(10.8 |
%) |
(10.8 |
%) |
(7.9 |
%) |
(10.8 |
%) |
|
||
Organic interventional |
|
|
6.9 |
% |
6.0 |
% |
6.2 |
% |
8.9 |
% |
5.0 |
% |
|
||
|
|
|
|
|
|
|
|
|
|||||||
GYN surgical |
|
|
7.1 |
% |
6.3 |
% |
0.3 |
% |
28.2 |
% |
24.8 |
% |
|
||
Organic surgical |
|
|
2.0 |
% |
1.2 |
% |
(3.5 |
%) |
19.3 |
% |
15.8 |
% |
|
||
|
|
|
|
|
|
|
|
|
|||||||
Skeletal health |
|
|
64.7 |
% |
62.1 |
% |
42.0 |
% |
108.0 |
% |
100.2 |
% |
|
||
|
|
|
|
|
|
|
|
|
|||||||
Total |
|
|
1.2 |
% |
0.4 |
% |
(0.6 |
%) |
6.9 |
% |
3.5 |
% |
|
||
Organic revenue (definition above) |
|
|
(1.4 |
%) |
(2.3 |
%) |
(2.7 |
%) |
2.3 |
% |
(1.1 |
%) |
|
||
Organic revenue excluding COVID-19 |
|
|
(0.8 |
%) |
(1.7 |
%) |
(1.8 |
%) |
2.3 |
% |
(1.1 |
%) |
|
||
Other Financial Highlights
-
U.S. revenue of$760.7 million 0.6% ). International revenue of$263.1 million 6.9% , or3.5% in constant currency. -
GAAP gross margin of
56.3% increased 90 basis points primarily due to lower impairment charges. Non-GAAP gross margin of60.3% decreased (80) basis points primarily due to product mix and increased reserves. -
GAAP operating margin of
24.9% increased 80 basis points primarily due to lower impairment charges. Non-GAAP operating margin of30.1% decreased (110) basis points, primarily due to the expected margin dilution from the inclusion of Endomagnetics and Gynesonics results. -
GAAP net income of
$194.9 million $244.1 million 2.6% ). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were$340.9 million 0.7% . -
COVID-19 revenue, which consisted of COVID-19 assay revenue of
$6.5 million $25.0 million 17.1% ), or (17.8% ) in constant currency. -
The Company repurchased 0.7 million shares for
$36 million -
The Company ended the quarter with cash and cash equivalents of
$1.74 billion $144 million -
Adjusted Return on Invested Capital (ROIC) was
13.9% , a decrease of (20) basis points compared to the prior year period.
Financial Guidance for the Fourth Quarter and Full Fiscal Year 2025
“Building on our solid third-quarter performance, in the fourth quarter we continue to expect mid-single-digit growth in organic, constant currency revenue excluding COVID,” said Karleen Oberton, Hologic’s Chief Financial Officer. “We also forecast non-GAAP earnings per share will grow faster than revenue, helped in part by our tariff mitigation efforts.”
Hologic’s financial guidance for the fourth quarter and full year 2025 is shown in the table below. The guidance is based on a full year non-GAAP tax rate of approximately
|
Current Guidance |
Previous Guidance |
||||
|
Guidance $ |
Reported % Increase (Decrease) |
Constant Currency % Increase (Decrease) |
Organic % Increase (Decrease) |
Organic excluding COVID-19 % Increase (Decrease) |
Guidance $ |
Fiscal 2025 |
|
|
|
|
|
|
Revenue |
|
|
|
( |
|
|
GAAP EPS |
|
( |
|
|
|
|
Non-GAAP EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2025 |
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
GAAP EPS |
|
|
|
|
|
|
Non-GAAP EPS |
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
The Company has presented the following non-GAAP financial measures in this press release: constant currency revenues; organic revenues; organic revenues excluding COVID-19; non-GAAP gross margin; non-GAAP operating expenses; non-GAAP operating margin; non-GAAP effective tax rate; non-GAAP net income; non-GAAP net income margin; non-GAAP EPS; adjusted EBITDA; adjusted net leverage ratio and adjusted ROIC. Organic revenue for the fiscal third quarter of 2025 excludes the divested Blood Screening and SSI ultrasound imaging businesses and the acquired Endomagnetics and Gynesonics businesses. Revenue from acquired businesses is generally included in organic revenue starting a year after the acquisition. Organic revenue excluding COVID-19 revenues is organic revenue less COVID-19 assay revenue, COVID-19 related sales of instruments, collection kits and ancillaries, COVID-19 related revenue from Diagenode and Mobidiag, as well as COVID-19 related license revenue, and revenues from discontinued products in Diagnostics. The Company defines its non-GAAP net income, EPS, and other non-GAAP financial measures to exclude, as applicable: (i) the amortization of intangible assets; (ii) the impairment of goodwill and intangible assets and equipment, and charges for the purchase of intellectual property to be used in a development project that has no future alternative use; (iii) adjustments to record contingent consideration at fair value; (iv) charges to write-off inventory for a product line discontinuance; (v) restructuring charges, facility closure and consolidation charges (including accelerated depreciation), and costs incurred to integrate acquisitions (including retention, contract termination costs, legal and professional consulting services); (vi) transaction related expenses for acquisitions; (vii) the step-up to fair value for acquired inventory sold; (viii) debt extinguishment losses and related transaction costs; (ix) the unrealized (gains) losses on the mark-to-market of foreign currency contracts to hedge operating results for which the Company has not elected hedge accounting; (x) litigation settlement charges (benefits) and non-income tax related charges (benefits); (xi) other-than-temporary impairment losses on investments and realized gains and losses resulting from the sale of investments; (xii) the one-time discrete impacts related to internal restructurings and non-operational items; (xiii) other one-time, non-recurring, unusual or infrequent charges, expenses or gains that may not be indicative of the Company's core business results; and (xiv) income taxes related to such adjustments. The Company defines adjusted EBITDA as its non-GAAP net income plus net interest income/expense, income taxes, and depreciation and amortization expense included in its non-GAAP net income. The Company defines its adjusted net leverage ratio as the principal amount of its debt net of cash and cash equivalents, divided by its adjusted EBITDA for the last four quarters. The Company defines its adjusted ROIC as its non-GAAP operating income for a trailing twelve months tax effected by its non-GAAP effective tax rate divided by the sum of its average net debt and stockholders’ equity, which is adjusted to exclude the after-tax effects of goodwill and intangible assets and equipment impairment charges.
These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The Company's definition of these non-GAAP measures may differ from similarly titled measures used by others.
The non-GAAP financial measures used in this press release adjust for specified items many of which can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of Hologic's historical operating results, comparison to competitors' operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting Hologic's business.
Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the tables accompanying this release.
Conference Call and Webcast
Hologic’s management will host a conference call at 4:30 p.m. ET today to discuss its financial results for the third quarter of fiscal 2025. Interested participants may listen to the call by dialing (866) 400-0049 (in the
About Hologic, Inc.
Hologic, Inc. is an innovative medical technology company primarily focused on improving women's health and well-being through early detection and treatment. For more information on Hologic, visit www.hologic.com.
Hologic and associated logos are trademarks and/or registered trademarks of Hologic, Inc. and/or its subsidiaries in
Forward-Looking Statements
This news release contains forward-looking information that involves risks and uncertainties, including statements about the Company’s plans, objectives, expectations and intentions. Such statements include, without limitation: financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; the Company’s strategies, positioning, resources, capabilities, and expectations for future performance; and the Company's outlook and financial and other guidance. These forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated.
Risks and uncertainties that could adversely affect the Company’s business and prospects, and otherwise cause actual results to differ materially from those anticipated, include, without limitation: the development of new or improved competitive technologies and products and competition; the anticipated development of markets the Company sells its products into and the success of the Company’s products in these markets; the Company’s ability to predict accurately the demand for its products, and products under development and to develop strategies to address markets successfully; the anticipated performance and benefits of the Company’s products; the Company’s business strategies; the effect of consolidation in the healthcare industry; the ability to execute acquisitions and the impact and anticipated benefits of completed acquisitions and acquisitions the Company may complete in the future; the coverage and reimbursement decisions of third-party payors; the uncertainty of the impact of cost containment efforts and federal healthcare reform legislation on our business and results of operations; the guidelines, recommendations, and studies published by various organizations relating to the use of the Company’s products; the Company’s ability to obtain and maintain regulatory approvals and clearances for its products, including the implementation of the European Union Medical Device and In Vitro Diagnostic Regulation requirements, and maintain compliance with complex and evolving regulations and quality standards, as well as the uncertainty of costs required to obtain and maintain compliance with such regulatory and quality matters; the possibility that products may contain undetected errors or defects or otherwise not perform as anticipated; the impact and costs and expenses of investigative and legal proceedings and compliance risks the Company may be subject to now or in the future; potential negative impacts resulting from climate change or other environmental, social, and governance and sustainability related matters; the impact of future tax legislation; the ongoing and possible future effects of global challenges, including macroeconomic uncertainties, such as inflation, bank failures, rising interest rates and availability of capital markets, wars, conflicts, other economic disruptions and
The risks included above are not exhaustive. Other factors that could adversely affect the Company's business and prospects are described in the filings made by the Company with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements presented herein to reflect any change in expectations or any change in events, conditions or circumstances on which any such statements are based.
SOURCE: Hologic, Inc.
HOLOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per share data) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
June 28, 2025 |
|
June 29, 2024 |
|
June 28, 2025 |
|
June 29, 2024 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Product |
$ |
810.4 |
|
|
$ |
811.2 |
|
|
$ |
2,421.0 |
|
|
$ |
2,467.2 |
|
Service and other |
|
213.4 |
|
|
|
200.2 |
|
|
|
629.9 |
|
|
|
575.1 |
|
Total revenues |
|
1,023.8 |
|
|
|
1,011.4 |
|
|
|
3,050.9 |
|
|
|
3,042.3 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenues: |
|
|
|
|
|
|
|
||||||||
Product |
|
310.5 |
|
|
|
298.2 |
|
|
|
916.6 |
|
|
|
913.9 |
|
Amortization of acquired intangible assets |
|
41.1 |
|
|
|
44.4 |
|
|
|
135.3 |
|
|
|
134.9 |
|
Impairment of intangible assets |
|
— |
|
|
|
13.3 |
|
|
|
183.4 |
|
|
|
39.2 |
|
Service and other |
|
95.6 |
|
|
|
95.2 |
|
|
|
281.2 |
|
|
|
284.2 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
576.6 |
|
|
|
560.3 |
|
|
|
1,534.4 |
|
|
|
1,670.1 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
61.4 |
|
|
|
64.1 |
|
|
|
183.1 |
|
|
|
205.5 |
|
Selling and marketing |
|
152.2 |
|
|
|
146.3 |
|
|
|
472.8 |
|
|
|
439.4 |
|
General and administrative |
|
99.1 |
|
|
|
94.0 |
|
|
|
334.5 |
|
|
|
306.2 |
|
Amortization of acquired intangible assets |
|
3.0 |
|
|
|
5.3 |
|
|
|
11.5 |
|
|
|
24.3 |
|
Impairment of intangible assets |
|
— |
|
|
|
0.4 |
|
|
|
37.5 |
|
|
|
5.6 |
|
Contingent consideration fair value adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.7 |
|
Restructuring charges |
|
6.3 |
|
|
|
6.2 |
|
|
|
17.6 |
|
|
|
34.8 |
|
Total operating expenses |
|
322.0 |
|
|
|
316.3 |
|
|
|
1,057.0 |
|
|
|
1,017.5 |
|
|
|
|
|
|
|
|
|
||||||||
Income from operations |
|
254.6 |
|
|
|
244.0 |
|
|
|
477.4 |
|
|
|
652.6 |
|
Interest income |
|
16.4 |
|
|
|
28.4 |
|
|
|
55.5 |
|
|
|
80.3 |
|
Interest expense |
|
(28.9 |
) |
|
|
(31.9 |
) |
|
|
(88.5 |
) |
|
|
(90.2 |
) |
Other income (expense), net |
|
(7.1 |
) |
|
|
0.2 |
|
|
|
9.6 |
|
|
|
0.8 |
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
235.0 |
|
|
|
240.7 |
|
|
|
454.0 |
|
|
|
643.5 |
|
Provision for income taxes |
|
40.1 |
|
|
|
46.2 |
|
|
|
75.5 |
|
|
|
32.6 |
|
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
194.9 |
|
|
$ |
194.5 |
|
|
$ |
378.5 |
|
|
$ |
610.9 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.87 |
|
|
$ |
0.83 |
|
|
$ |
1.67 |
|
|
$ |
2.58 |
|
Diluted |
$ |
0.86 |
|
|
$ |
0.82 |
|
|
$ |
1.66 |
|
|
$ |
2.57 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
224,315 |
|
|
|
234,604 |
|
|
|
226,791 |
|
|
|
236,373 |
|
Diluted |
|
225,462 |
|
|
|
236,466 |
|
|
|
228,186 |
|
|
|
238,081 |
|
HOLOGIC, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) |
|||||
|
June 28, 2025 |
|
September 28, 2024 |
||
ASSETS |
|
|
|
||
|
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
1,735.2 |
|
$ |
2,160.2 |
Short-term investments |
|
143.9 |
|
|
173.4 |
Accounts receivable, net |
|
609.3 |
|
|
600.4 |
Inventory |
|
713.7 |
|
|
679.8 |
Other current assets |
|
219.3 |
|
|
209.5 |
Total current assets |
|
3,421.4 |
|
|
3,823.3 |
|
|
|
|
||
Property, plant and equipment, net |
|
570.5 |
|
|
537.8 |
Goodwill and intangible assets |
|
4,286.1 |
|
|
4,287.7 |
Long-term investments |
|
— |
|
|
96.4 |
Other assets |
|
528.1 |
|
|
410.8 |
Total assets |
$ |
8,806.1 |
|
$ |
9,156.0 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
|
|
|
|
||
Current liabilities: |
|
|
|
||
Current portion of long-term debt |
$ |
— |
|
$ |
37.5 |
Accounts payable and accrued liabilities |
|
749.8 |
|
|
786.8 |
Deferred revenue |
|
212.7 |
|
|
212.9 |
Total current liabilities |
|
962.5 |
|
|
1,037.2 |
|
|
|
|
||
Long-term debt, net of current portion |
|
2,509.0 |
|
|
2,497.1 |
Deferred income taxes |
|
46.6 |
|
|
59.4 |
Other long-term liabilities |
|
445.5 |
|
|
432.3 |
Total stockholders' equity |
|
4,842.5 |
|
|
5,130.0 |
Total liabilities and stockholders’ equity |
$ |
8,806.1 |
|
$ |
9,156.0 |
HOLOGIC, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) |
|||||||
|
Nine Months Ended |
||||||
|
June 28, 2025 |
|
June 29, 2024 |
||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
378.5 |
|
|
$ |
610.9 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation |
|
73.5 |
|
|
|
75.2 |
|
Amortization of acquired intangible assets |
|
146.8 |
|
|
|
159.2 |
|
Stock-based compensation expense |
|
72.0 |
|
|
|
69.1 |
|
Deferred income taxes |
|
(111.3 |
) |
|
|
(52.3 |
) |
Intangible asset impairment charges |
|
220.9 |
|
|
|
44.8 |
|
Other adjustments and non-cash items |
|
15.0 |
|
|
|
34.1 |
|
Changes in operating assets and liabilities, excluding the effect of acquisitions and dispositions: |
|
|
|
||||
Accounts receivable |
|
3.2 |
|
|
|
(2.5 |
) |
Inventories |
|
(34.7 |
) |
|
|
(47.1 |
) |
Prepaid income taxes |
|
(1.7 |
) |
|
|
(73.9 |
) |
Prepaid expenses and other assets |
|
16.7 |
|
|
|
(4.2 |
) |
Accounts payable |
|
(12.4 |
) |
|
|
26.5 |
|
Accrued expenses and other liabilities |
|
(61.4 |
) |
|
|
58.5 |
|
Deferred revenue |
|
(3.1 |
) |
|
|
19.9 |
|
Net cash provided by operating activities |
|
702.0 |
|
|
|
918.2 |
|
|
|
|
|
||||
INVESTING ACTIVITIES |
|
|
|
||||
Acquisition of business, net of cash acquired |
|
(321.5 |
) |
|
|
— |
|
Sale of business, net of cash disposed |
|
— |
|
|
|
(31.3 |
) |
Capital expenditures |
|
(45.1 |
) |
|
|
(56.0 |
) |
Increase in equipment under customer usage agreements |
|
(61.5 |
) |
|
|
(43.9 |
) |
Strategic investments |
|
(33.0 |
) |
|
|
(42.5 |
) |
Purchase of intellectual property |
|
(15.4 |
) |
|
|
(10.0 |
) |
Maturities of available-for-sale securities |
|
128.0 |
|
|
|
— |
|
Other activity |
|
(2.1 |
) |
|
|
(1.6 |
) |
Net cash used in investing activities |
|
(350.6 |
) |
|
|
(185.3 |
) |
|
|
|
|
||||
FINANCING ACTIVITIES |
|
|
|
||||
Repayment of long-term debt |
|
(28.1 |
) |
|
|
(278.1 |
) |
Payment of contingent consideration |
|
(1.1 |
) |
|
|
(2.6 |
) |
Repurchases of common stock |
|
(752.9 |
) |
|
|
(776.8 |
) |
Proceeds under employee stock plans |
|
27.7 |
|
|
|
25.2 |
|
Payment of minimum tax withholdings on net share settlements of equity awards |
|
(22.0 |
) |
|
|
(16.6 |
) |
Payments under finance lease obligations |
|
(2.4 |
) |
|
|
(2.9 |
) |
Net cash used in financing activities |
|
(778.8 |
) |
|
|
(1,051.8 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
2.4 |
|
|
|
2.3 |
|
Net decrease in cash and cash equivalents |
|
(425.0 |
) |
|
|
(316.6 |
) |
Cash and cash equivalents, beginning of period* |
|
2,160.2 |
|
|
|
2,755.7 |
|
Cash and cash equivalents, end of period |
$ |
1,735.2 |
|
|
$ |
2,439.1 |
|
*Includes |
|||||||
HOLOGIC, INC. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Unaudited) (In millions, except earnings per share) |
|||||||||||||||
Reconciliation of GAAP Revenue to Organic Revenue |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
June 28, 2025 |
|
June 29, 2024 |
|
June 28, 2025 |
|
June 29, 2024 |
||||||||
Consolidated GAAP Revenue |
$ |
1,023.8 |
|
|
$ |
1,011.4 |
|
|
$ |
3,050.9 |
|
|
$ |
3,042.3 |
|
Less: Blood Screening revenue |
|
(7.0 |
) |
|
|
(7.9 |
) |
|
|
(20.3 |
) |
|
|
(22.8 |
) |
Less: SSI revenue |
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
(0.7 |
) |
|
|
(2.3 |
) |
Less: Endomagnetics revenue |
|
(19.6 |
) |
|
|
— |
|
|
|
(43.4 |
) |
|
|
— |
|
Less: Gynesonics revenue |
|
(8.5 |
) |
|
|
— |
|
|
|
(14.7 |
) |
|
|
— |
|
Organic Revenue |
$ |
988.6 |
|
|
$ |
1,003.0 |
|
|
$ |
2,971.8 |
|
|
$ |
3,017.2 |
|
Less: COVID-19 Assays |
|
(6.5 |
) |
|
|
(13.3 |
) |
|
|
(33.9 |
) |
|
|
(63.4 |
) |
Less: COVID-19 Related Revenue* |
|
(25.0 |
) |
|
|
(24.7 |
) |
|
|
(78.3 |
) |
|
|
(79.5 |
) |
Organic Revenue excluding COVID-19 |
$ |
957.1 |
|
|
$ |
965.0 |
|
|
$ |
2,859.6 |
|
|
$ |
2,874.3 |
|
|
|
|
|
||||||||||||
*Revenues estimated to be related to COVID assay sales for instruments, collection kits and ancillaries. |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
June 28, 2025 |
|
June 29, 2024 |
|
June 28, 2025 |
|
June 29, 2024 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Gross Profit: |
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
576.6 |
|
|
$ |
560.3 |
|
|
$ |
1,534.4 |
|
|
$ |
1,670.1 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization of acquired intangible assets (1) |
|
41.1 |
|
|
|
44.4 |
|
|
|
135.3 |
|
|
|
134.9 |
|
Impairment of intangible assets (13) |
|
— |
|
|
|
13.3 |
|
|
|
183.4 |
|
|
|
39.2 |
|
Product line discontinuance (12) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.1 |
|
Acquisition related expenses (2) (4) |
|
— |
|
|
|
— |
|
|
|
8.9 |
|
|
|
— |
|
Non-GAAP gross profit |
$ |
617.7 |
|
|
$ |
618.0 |
|
|
$ |
1,862.0 |
|
|
$ |
1,851.3 |
|
|
|
|
|
|
|
|
|
||||||||
Gross Margin Percentage: |
|
|
|
|
|
|
|
||||||||
GAAP gross margin percentage |
|
56.3 |
% |
|
|
55.4 |
% |
|
|
50.3 |
% |
|
|
54.9 |
% |
Impact of adjustments above |
|
4.0 |
% |
|
|
5.7 |
% |
|
|
10.7 |
% |
|
|
6.0 |
% |
Non-GAAP gross margin percentage |
|
60.3 |
% |
|
|
61.1 |
% |
|
|
61.0 |
% |
|
|
60.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Operating Expenses: |
|
|
|
|
|
|
|
||||||||
GAAP operating expenses |
$ |
322.0 |
|
|
$ |
316.3 |
|
|
$ |
1,057.0 |
|
|
$ |
1,017.5 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization of acquired intangible assets (1) |
|
(3.0 |
) |
|
|
(5.3 |
) |
|
|
(11.5 |
) |
|
|
(24.3 |
) |
Impairment of intangible assets (13) |
|
— |
|
|
|
(0.4 |
) |
|
|
(37.5 |
) |
|
|
(5.6 |
) |
Acquisition related expenses (4) (15) |
|
(2.3 |
) |
|
|
(1.6 |
) |
|
|
(27.8 |
) |
|
|
(3.4 |
) |
Contingent consideration adjustment (7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.7 |
) |
Integration/consolidation costs (3) |
|
(0.8 |
) |
|
|
— |
|
|
|
(11.0 |
) |
|
|
— |
|
Purchased research and development asset charge (14) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10.0 |
) |
Restructuring charges (3) |
|
(6.3 |
) |
|
|
(6.2 |
) |
|
|
(17.6 |
) |
|
|
(34.8 |
) |
Non-GAAP operating expenses |
$ |
309.6 |
|
|
$ |
302.8 |
|
|
$ |
951.6 |
|
|
$ |
937.7 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Margin: |
|
|
|
|
|
|
|
||||||||
GAAP income from operations |
$ |
254.6 |
|
|
$ |
244.0 |
|
|
$ |
477.4 |
|
|
$ |
652.6 |
|
Adjustments to gross profit as detailed above |
|
41.1 |
|
|
|
57.7 |
|
|
|
327.6 |
|
|
|
181.2 |
|
Adjustments to operating expenses as detailed above |
|
12.4 |
|
|
|
13.5 |
|
|
|
105.4 |
|
|
|
79.8 |
|
Non-GAAP income from operations |
$ |
308.1 |
|
|
$ |
315.2 |
|
|
$ |
910.4 |
|
|
$ |
913.6 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Margin Percentage: |
|
|
|
|
|
|
|
||||||||
GAAP income from operations margin percentage |
|
24.9 |
% |
|
|
24.1 |
% |
|
|
15.6 |
% |
|
|
21.5 |
% |
Impact of adjustments above |
|
5.2 |
% |
|
|
7.1 |
% |
|
|
14.2 |
% |
|
|
8.5 |
% |
Non-GAAP operating margin percentage |
|
30.1 |
% |
|
|
31.2 |
% |
|
|
29.8 |
% |
|
|
30.0 |
% |
Pre-Tax Income: |
|
|
|
|
|
|
|
||||||||
GAAP pre-tax earnings |
$ |
235.0 |
|
|
$ |
240.7 |
|
|
$ |
454.0 |
|
|
$ |
643.5 |
|
Adjustments to pre-tax earnings as detailed above |
|
53.5 |
|
|
|
71.2 |
|
|
|
433.0 |
|
|
|
261.0 |
|
Debt extinguishment loss (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
Unrealized losses (gains) on forward foreign currency contracts (8) |
|
13.8 |
|
|
|
0.5 |
|
|
|
(0.8 |
) |
|
|
6.2 |
|
Non-GAAP pre-tax income |
$ |
302.3 |
|
|
$ |
312.4 |
|
|
$ |
886.2 |
|
|
$ |
911.1 |
|
|
|
|
|
|
|
|
|
||||||||
Net Income: |
|
|
|
|
|
|
|
||||||||
GAAP net income |
$ |
194.9 |
|
|
$ |
194.5 |
|
|
$ |
378.5 |
|
|
$ |
610.9 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization of acquired intangible assets (1) |
|
44.1 |
|
|
|
49.7 |
|
|
|
146.8 |
|
|
|
159.2 |
|
Impairment of intangible assets (13) |
|
— |
|
|
|
13.7 |
|
|
|
220.9 |
|
|
|
44.8 |
|
Restructuring and integration/consolidation costs (3) |
|
7.1 |
|
|
|
6.2 |
|
|
|
28.6 |
|
|
|
34.8 |
|
Purchased research and development asset charge (14) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10.0 |
|
Product line discontinuance (12) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.1 |
|
Debt extinguishment loss (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
Acquisition related expenses (2) (4) (15) |
|
2.3 |
|
|
|
1.6 |
|
|
|
36.7 |
|
|
|
3.4 |
|
Contingent consideration adjustment (7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.7 |
|
Unrealized losses (gains) on forward foreign currency contracts (8) |
|
13.8 |
|
|
|
0.5 |
|
|
|
(0.8 |
) |
|
|
6.2 |
|
Worthless stock deduction (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(107.2 |
) |
Income tax related items (9) |
|
(3.1 |
) |
|
|
3.7 |
|
|
|
6.5 |
|
|
|
15.6 |
|
Income tax effect of reconciling items (11) |
|
(15.0 |
) |
|
|
(19.2 |
) |
|
|
(101.6 |
) |
|
|
(55.7 |
) |
Non-GAAP net income |
$ |
244.1 |
|
|
$ |
250.7 |
|
|
$ |
715.6 |
|
|
$ |
731.2 |
|
|
|
|
|
|
|
|
|
||||||||
Net Income Percentage: |
|
|
|
|
|
|
|
||||||||
GAAP net income percentage |
|
19.0 |
% |
|
|
19.2 |
% |
|
|
12.4 |
% |
|
|
20.1 |
% |
Impact of adjustments above |
|
4.8 |
% |
|
|
5.6 |
% |
|
|
11.1 |
% |
|
|
3.9 |
% |
Non-GAAP net income percentage |
|
23.8 |
% |
|
|
24.8 |
% |
|
|
23.5 |
% |
|
|
24.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Earnings per Share: |
|
|
|
|
|
|
|
||||||||
GAAP income per share - Diluted |
$ |
0.86 |
|
|
$ |
0.82 |
|
|
$ |
1.66 |
|
|
$ |
2.57 |
|
Adjustment to net income (as detailed above) |
|
0.22 |
|
|
|
0.24 |
|
|
|
1.48 |
|
|
|
0.50 |
|
Non-GAAP earnings per share – diluted (10) |
$ |
1.08 |
|
|
$ |
1.06 |
|
|
$ |
3.14 |
|
|
$ |
3.07 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Non-GAAP net income |
$ |
244.1 |
|
|
$ |
250.7 |
|
|
$ |
715.6 |
|
|
$ |
731.2 |
|
Interest expense (income), net |
|
12.5 |
|
|
|
3.5 |
|
|
|
33.0 |
|
|
|
9.9 |
|
Provision for income taxes |
|
58.2 |
|
|
|
61.7 |
|
|
|
170.6 |
|
|
|
179.9 |
|
Depreciation expense, not adjusted above |
|
26.1 |
|
|
|
22.6 |
|
|
|
73.5 |
|
|
|
68.0 |
|
Adjusted EBITDA |
$ |
340.9 |
|
|
$ |
338.5 |
|
|
$ |
992.7 |
|
|
$ |
989.0 |
|
Explanatory Notes to Reconciliations: |
|
|
|
(1) |
To reflect non-cash expenses attributable to the amortization of acquired intangible assets. |
(2) |
To reflect the fair value write-up of inventory sold during the period related to the Endomagnetics and Gynesonics acquisitions of |
(3) |
To reflect restructuring charges, and certain costs associated with the Company’s integration and facility consolidation plans, which primarily include severance, retention, and transfer costs as well as costs incurred to integrate acquisitions, including legal, tax and professional consulting services and contract termination costs. |
(4) |
To reflect expenses with third parties related to acquisitions prior to when such transactions are completed. These expenses primarily comprise legal, consulting and due diligence fees. |
(5) |
To reflect the discrete tax benefit related to a worthless stock deduction on the investment in one of the Company's international subsidiaries. |
(6) |
To reflect a debt extinguishment loss for the prepayment of principal under the Credit Agreement in first quarter of fiscal 2024. |
(7) |
To reflect an adjustment to the estimated contingent consideration liability related to the Acessa Health acquisition, which was payable upon meeting defined revenue growth metrics. |
(8) |
To reflect non-cash unrealized gains and losses on the mark-to market on outstanding forward foreign currency contracts, for which the Company has elected to not designate for hedge accounting. |
(9) |
To reflect the net impact of income tax reserves from the expiration of the statute of limitations, and non-recurring income tax charges and benefits. |
(10) |
Non-GAAP earnings per share was calculated based on 225,462 and 228,186 weighted average diluted shares outstanding for the three and nine months ended June 28, 2025, respectively, and 236,466 and 238,081 for the three and nine months ended June 29, 2024, respectively. |
(11) |
To reflect the tax effects of Non-GAAP reconciling items, excluding specific income tax related items and the worthless stock deduction. Amounts are calculated using the effective tax rate in the jurisdiction to which the adjustment relates, and the overall effective tax rate was |
(12) |
To reflect the write-off of inventory and charges for non-cancellable purchase orders related to a product line discontinuance in the Diagnostics division. |
(13) |
To reflect impairment charges related to the Acessa ( |
(14) |
To reflect the purchase of an intangible asset to be used in a research and development project that has no future alternative use. |
(15) |
To reflect an aggregate charge of |
Reconciliation of GAAP to non-GAAP EPS Guidance: |
|||||||||||||
|
Guidance Range |
|
Guidance Range |
||||||||||
|
Quarter Ending September 27, 2025 |
|
Year Ending September 27, 2025 |
||||||||||
|
Low |
High |
|
Low |
High |
||||||||
GAAP Net Income Per Share |
$ |
0.90 |
|
$ |
0.93 |
|
|
$ |
2.56 |
|
$ |
2.59 |
|
Amortization of acquired intangible assets |
$ |
0.21 |
|
$ |
0.21 |
|
|
$ |
0.85 |
|
$ |
0.85 |
|
Impairment of intangible assets |
$ |
- |
|
$ |
- |
|
|
$ |
0.97 |
|
$ |
0.97 |
|
Acquisition Related |
$ |
- |
|
$ |
- |
|
|
$ |
0.20 |
|
$ |
0.20 |
|
Restructuring, Integration and Other charges |
$ |
0.02 |
|
$ |
0.02 |
|
|
$ |
0.10 |
|
$ |
0.10 |
|
Income tax related items |
$ |
- |
|
$ |
- |
|
|
$ |
0.03 |
|
$ |
0.03 |
|
Tax Impact of Exclusions |
$ |
(0.04 |
) |
$ |
(0.04 |
) |
|
$ |
(0.48 |
) |
$ |
(0.48 |
) |
Non-GAAP Net Income Per Share |
$ |
1.09 |
|
$ |
1.12 |
|
|
$ |
4.23 |
|
$ |
4.26 |
|
Adjusted Return on Invested Capital (ROIC) Reconciliation of Net Income to ROIC: |
||||||||
|
|
|
|
|
|
Trailing Twelve Months Ended June 28, 2025 |
||
Adjusted Net Operating Profit After Tax |
|
|
||||||
|
GAAP net income |
|
|
|
|
$ |
557.1 |
|
|
Adjustments to GAAP net income |
|
|
|
|
|
396.0 |
|
|
Non-GAAP net income |
|
|
|
$ |
953.1 |
|
|
|
Non-GAAP provision for income taxes |
|
|
|
|
229.0 |
|
|
|
GAAP interest expense |
|
|
|
|
120.4 |
|
|
|
Non-GAAP other income |
|
|
|
|
(95.5 |
) |
|
|
Adjusted net operating profit before tax |
$ |
1,207.0 |
|
||||
|
Non-GAAP average effective tax rate (1) |
|
|
|
|
19.37 |
% |
|
|
Adjusted net operating profit after tax |
$ |
973.2 |
|
||||
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Average Net Debt plus Average Stockholders' Equity (2) |
|
|||||||
|
Average total debt |
|
|
$ |
2,526.0 |
|
||
|
Less: Average cash and cash equivalents |
|
|
|
|
|
(2,087.1 |
) |
|
Average net debt |
|
|
|
$ |
438.9 |
|
|
|
Average stockholders' equity (3) |
|
|
6,575.3 |
|
|||
|
Average net debt plus average stockholders' equity |
$ |
7,014.2 |
|
||||
|
|
|
|
|
|
|
||
Adjusted Return on Invested Capital |
|
|
13.9 |
% |
||||
(1) |
ROIC is presented on a TTM basis; non-GAAP effective tax rate for the three months ended September 28, 2024 was |
(2) |
Calculated using the average of the balances as of June 28, 2025 and June 29, 2024. |
(3) |
For Adjusted ROIC, stockholder's equity is adjusted (increased) to eliminate the effect of the impairment of intangible assets of |
|
As of June 28, 2025 |
||
|
Net Leverage Ratio: |
||
|
|
||
Total principal debt |
$ |
2,519.4 |
|
Total cash and cash equivalents |
$ |
(1,735.2 |
) |
Net principal debt |
$ |
784.2 |
|
EBITDA for the last four quarters |
$ |
1,316.3 |
|
Net Leverage Ratio |
|
0.6 |
|
Other Supplemental Information: |
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
June 28, 2025 |
|
June 29, 2024 |
|
June 28, 2025 |
|
June 29, 2024 |
||||
|
|
|
|
|
|
|
|
|
||||
Geographic Revenues |
|
|
|
|
|
|
|
|
||||
|
|
74.3 |
% |
|
75.7 |
% |
|
74.2 |
% |
|
74.9 |
% |
|
|
14.5 |
% |
|
12.6 |
% |
|
14.5 |
% |
|
13.4 |
% |
|
|
5.9 |
% |
|
6.4 |
% |
|
5.9 |
% |
|
6.4 |
% |
Rest of World |
|
5.3 |
% |
|
5.3 |
% |
|
5.4 |
% |
|
5.3 |
% |
Total Revenues |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250730154376/en/
Michael Watts
Corporate Vice President, Investor Relations
Michael.Watts@hologic.com
(858) 410-8514
Peter Sattler
Senior Manager, Investor Relations
Peter.Sattler@hologic.com
(858) 410-8423
Source: Hologic, Inc.
