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Charles River Labs (NYSE: CRL) swings to Q2 loss but raises 2026 guidance

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Charles River Laboratories International, Inc. reported second‑quarter 2026 revenue of $1.00 billion, down 2.7% from $1.03 billion a year earlier, while organic revenue edged up 0.1%. GAAP results swung to a small net loss of $(1.5) million, or $(0.03) per share, primarily due to a $63.7 million loss on the divestiture of its CDMO and Cell Solutions businesses.

On a non‑GAAP basis, operating margin was 20.5% versus 22.1% and net income declined 5.0% to $146.2 million, with diluted EPS of $3.02 compared with $3.12 in the prior‑year quarter. Segment results were mixed: RMS revenue was $209.5 million with organic revenue down 1.4%, DSA revenue was $606.5 million with organic growth of 0.2%, and Manufacturing revenue was $188.1 million, down 6.3% reported but up 1.3% organically.

The company repurchased $100.0 million of stock in the quarter and $300.0 million year‑to‑date, leaving $700.0 million under its $1.0 billion authorization. For 2026, it raised organic revenue growth guidance to 0.0%–1.0% and non‑GAAP EPS to $11.15–$11.45, while lowering GAAP EPS guidance to $3.05–$3.35 to incorporate divestiture‑related losses.

Positive

  • None.

Negative

  • Full‑year GAAP EPS guidance was reduced from $5.35–$5.85 to $3.05–$3.35, reflecting substantial divestiture‑related losses.

Filing Explained

At June 27, Charles River reported $192,025 thousand cash, $2,619,985 thousand debt, and 47,728 thousand common shares outstanding.

The August 5 Form 8-K reports a specified material event under Item 2.02 and attaches the company’s second-quarter results as Exhibit 99.1; the reporting period ended June 27, 2026.

As of that quarter-end, the balance sheet reported $192,025 thousand of cash and cash equivalents, $2,619,985 thousand of long-term debt and finance leases, and 47,728 thousand common shares outstanding.

The share-count lines separately report 120,000 thousand authorized common shares, 49,550 thousand issued shares, and 1,822 thousand treasury shares, documenting the company’s reported capital structure after the quarter’s repurchases.

For the six months ended June 27, operating activities provided $220,802 thousand, investing activities used $379,748 thousand, and financing activities provided $183,063 thousand; cash, cash equivalents and restricted cash ended at $240,581 thousand.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $1.00 billion Second quarter 2026 total revenue, down 2.7% from $1.03 billion in Q2 2025
Q2 2026 GAAP diluted EPS $(0.03) GAAP diluted loss per share for the quarter ended June 27, 2026
Q2 2026 non-GAAP diluted EPS $3.02 Non-GAAP diluted EPS for Q2 2026, a 3.2% decrease from $3.12 in Q2 2025
Q2 2026 GAAP operating margin 11.9% GAAP operating income as a percentage of revenue, up from 9.7% a year earlier
2026 non-GAAP EPS guidance $11.15–$11.45 Updated full-year 2026 non-GAAP earnings per share estimate range
2026 organic revenue growth guidance 0.0%–1.0% Full-year 2026 organic revenue growth outlook
Q2 2026 stock repurchases $100.0 million Amount used to repurchase 0.6 million shares at an average price of $174 in Q2 2026
YTD 2026 stock repurchases $300.0 million Total spent to repurchase 1.7 million shares in the year-to-date period ended June 27, 2026
organic revenue growth financial
"Organic revenue growth of 0.1% reached the highest level since the third quarter of 2023."
Organic revenue growth is the increase in a company's sales that comes from its existing products and services, without including any gains from acquisitions or selling off parts of the business. It reflects the company’s ability to attract more customers or encourage existing customers to buy more over time. For investors, it indicates the company's underlying strength and efficiency in expanding its core operations.
non-GAAP operating margin financial
"Non-GAAP operating margin increased 420 basis points on a sequential basis to 20.5%."
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
CDMO financial
"the CDMO and Cell Solutions businesses in May 2026."
A contract development and manufacturing organization (CDMO) is a company that provides specialized services to help develop and produce pharmaceutical products for other businesses. Think of it as a contract factory that takes a company's recipe and makes the product on their behalf. For investors, CDMOs are important because they support the growth of pharmaceutical companies and can be key partners in bringing new medicines to market.
non-human primate (NHP) supply matter medical
"lower third-party legal costs related to a non-human primate (NHP) supply matter."
deferred compensation plan financial
"investment gains associated with the Company's deferred compensation plan, which totaled a net benefit of $0.19 per share."
A deferred compensation plan is an arrangement where an employer agrees to pay part of an employee’s pay or bonus at a later date instead of immediately, often to reduce current tax bills or to tie rewards to long-term performance. For investors it matters because these promises create future cash obligations and influence executive incentives and retention; they can affect a company’s reported liabilities, cash flow planning and the risk profile if the business faces financial trouble.
Cooperation Agreement regulatory
"legal and advisory costs related to entering into a Cooperation Agreement with a shareholder."
A cooperation agreement is a formal contract between two or more organizations that lays out who will do what, how resources and responsibility are shared, how benefits or costs are divided, and how disputes or exits are handled. Like two chefs agreeing on a shared recipe and kitchen duties, it matters to investors because it can create new revenue paths, shift costs or risks, affect who controls key assets or technologies, and change a company’s future growth prospects.
Revenue $1.00 billion Down 2.7% from $1.03 billion in the second quarter of 2025
GAAP diluted EPS $(0.03) Down from $1.06 in the second quarter of 2025, mainly due to a $63.7 million divestiture loss
Non-GAAP diluted EPS $3.02 Decreased 3.2% from $3.12 in the second quarter of 2025
Guidance

For full-year 2026, the company targets reported revenue decline of 3.5%–2.5%, organic revenue growth of 0.0%–1.0%, GAAP EPS of $3.05–$3.35, and non-GAAP EPS of $11.15–$11.45, with the GAAP EPS reduction driven primarily by divestiture-related losses.

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FAQ

What were Charles River Laboratories (CRL) Q2 2026 revenue and earnings?
Charles River reported Q2 2026 revenue of $1.00 billion, down 2.7% from $1.03 billion a year earlier. GAAP diluted EPS was $(0.03), versus $1.06, while non‑GAAP diluted EPS was $3.02, slightly below $3.12 in Q2 2025, mainly due to lower margins and divestiture impacts.

How did CRL’s business segments perform in Q2 2026?
In Q2 2026, RMS revenue was $209.5 million (organic −1.4%), DSA revenue was $606.5 million (organic +0.2%), and Manufacturing revenue was $188.1 million (reported −6.3%, organic +1.3%). Margin performance improved on a GAAP basis in all segments, aided by lower amortization and CDMO divestiture effects.

What guidance did CRL provide for full-year 2026 revenue and EPS?
For 2026, Charles River expects reported revenue to decline 3.5%–2.5%, with organic revenue growth of 0.0%–1.0%. GAAP EPS guidance is $3.05–$3.35, reduced mainly for divestiture losses, while non‑GAAP EPS guidance increased to $11.15–$11.45 from $10.80–$11.30.

How much stock did CRL repurchase in Q2 and year-to-date 2026?
Charles River repurchased 0.6 million shares for $100.0 million in Q2 2026 at an average price of $174. Year‑to‑date through June 27, 2026, it bought back 1.7 million shares for $300.0 million, leaving $700.0 million under its $1.0 billion authorization.

What caused CRL’s GAAP net loss in Q2 2026 despite positive operating income?
The company generated GAAP operating income of $119.9 million but recorded a GAAP net loss available to common shareholders of $(1.5) million. This mainly reflected a $63.7 million loss on the CDMO and Cell Solutions divestiture, which more than offset operating improvements.

How did CRL’s margins change in Q2 2026 compared to last year?
Q2 2026 GAAP operating margin rose to 11.9% from 9.7%, helped by lower amortization and divestiture effects. However, non‑GAAP operating margin declined to 20.5% from 22.1%, primarily due to higher study‑related costs in DSA and increased unallocated corporate expenses.
0001100682false00011006822026-08-052026-08-05


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K


CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


August 5, 2026
Date of Report (Date of earliest event reported)


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware001-1594306-1397316
(State or Other
Jurisdiction of Incorporation)		(Commission File Number)(IRS Employer
Identification No.)

251 Ballardvale Street
Wilmington, Massachusetts 01887
(Address of Principal Executive Offices) (Zip Code)

781-222-6000
(Registrant’s Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.01 par valueCRLNew York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




ITEM 2.02. Results of Operations and Financial Condition
The following information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On August 5, 2026, Charles River Laboratories International, Inc. issued a press release providing financial results for the second quarter ended June 27, 2026.
The press release, attached as an exhibit to this report, includes "safe harbor" language pursuant to the Private Securities Litigation Reform Act of 1995, as amended, indicating that certain statements contained in the press release are "forward-looking" rather than historic. The press release also states that these and other risks relating to Charles River are set forth in the documents filed by Charles River with the Securities and Exchange Commission.
ITEM 9.01. Financial Statements and Exhibits
(d) Exhibits.

Exhibit No.Description
99.1
Press release dated August 5, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Date:August 5, 2026By:/s/ GLENN COLEMAN
Glenn Coleman
Corporate Executive Vice President and Chief Financial Officer

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Exhibit 99.1
image_0.jpg

NEWS RELEASE

Charles River Laboratories Announces Second-Quarter 2026 Results

WILMINGTON, MA, August 5, 2026 – Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the second quarter ended June 27, 2026.

Key Highlights
•Reports second-quarter revenue of $1.00 billion, GAAP loss per share of $(0.03), and non-GAAP earnings per share of $3.02.
•Organic revenue growth of 0.1% reached the highest level since the third quarter of 2023.
•Non-GAAP operating margin increased 420 basis points on a sequential basis to 20.5%, while the GAAP operating margin was essentially flat on a sequential basis at 11.9%.
•Increases 2026 guidance for revenue and non-GAAP earnings per share.
•Organic revenue guidance increasing by 150 basis points and non-GAAP earnings per share guidance increasing by $0.25 at midpoint.
•Guidance increases primarily driven by improving demand trends in the DSA segment and better-than-expected performance in the Manufacturing segment.
•Repurchased $100 million of common stock in the second quarter at an average price of $174 per share to enhance shareholder value.
•To refine and further strengthen its portfolio, the Company completed the divestitures of certain European Discovery Services sites as well as the CDMO and Cell Solutions businesses in May 2026.
•To further deepen its client relationships, the Company has joined Eli Lilly's TuneLab AI/ML platform by providing non-clinical testing expertise to optimize drug discovery and advance R&D modernization efforts. Additionally, it has collaborated with Arovella Therapeutics to provide in vitro Next Generation Sequencing (NGS) services, which was added through the PathoQuest acquisition. This collaboration will accelerate progress towards Arovella's alternative cancer treatment approaches.
•To advance its modernization efforts, Charles River introduced an enhanced digital pathology solution to drive efforts to further digitize and automate the Company. This AI-enabled, end-to-end workflow will deliver improved study turnaround times and increased pathologist efficiency.

Second-Quarter Results
Revenue was $1.00 billion, a decrease of 2.7% from $1.03 billion in the second quarter of 2025. On an organic basis, revenue increased 0.1%, driven by revenue growth in the Manufacturing
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Solutions (Manufacturing) and Discovery and Safety Assessment (DSA) segments, offset by a decline in the Research Models and Services (RMS) segment. Organic revenue growth excludes the effect of acquisitions, divestitures, and foreign currency translation.
In the second quarter of 2026, the GAAP operating margin was 11.9%, compared to 9.7% in the second quarter of 2025. The increase in the GAAP operating margin was primarily driven by the CDMO business, including lower accelerated amortization expense related to certain client relationships. The GAAP net loss available to common shareholders for the second quarter of 2026 was $(1.5) million, or $(0.03) per diluted share, compared to GAAP net income of $52.3 million, or $1.06 per diluted share for the same period in 2025. The decrease was principally due to a loss related to the CDMO and Cell Solutions divestiture totaling $63.7 million, or $1.40 per share.
On a non-GAAP basis, the second-quarter operating margin decreased to 20.5% from 22.1% in the second quarter of 2025, primarily as a result of higher study-related direct costs in the DSA segment and higher unallocated corporate costs. Non-GAAP net income was $146.2 million for the second quarter of 2026, a decrease of 5.0% from $154.0 million for the same period in 2025. Second-quarter diluted earnings per share on a non-GAAP basis were $3.02, a decrease of 3.2% from $3.12 per share in the second quarter of 2025. The non-GAAP net income and earnings per share decreases were driven primarily by the lower operating margin. The earnings per share decrease was partially offset by investment gains associated with the Company's deferred compensation plan, which totaled a net benefit of $0.19 per share in the second quarter.
Birgit Girshick, Chief Executive Officer, said, “We made excellent progress in the second quarter on the execution of our Pathway to Purpose strategy. We are actively evaluating opportunities to modernize the Company and drive greater efficiency, to strengthen our leading drug development portfolio centered on regulated testing, and to further enhance our growth profile. We are focused on continuing to move forward on achieving our strategic initiatives and financial goals, which will strengthen our foundation and underpin our future success."
"We were encouraged that the demand environment continued to strengthen in the second quarter, particularly for our DSA segment, as evidenced by the fact that we recorded the highest net book-to-bill in nearly four years. This improvement was broad based across our global biopharmaceutical and small and mid-sized biotechnology clients, and it is our goal to continue to capture additional share of our clients’ R&D spending by providing client-centric solutions and by leveraging our global scale and deep scientific expertise. As a result of our collective efforts, we delivered on our second-quarter financial targets – exceeding our prior outlook – and are raising our revenue and non-GAAP earnings per share guidance for the year," Ms. Girshick concluded.
Second-Quarter Segment Results
Research Models and Services (RMS)
Revenue for the RMS segment was $209.5 million in the second quarter of 2026, a decrease of 1.8% from $213.3 million in the second quarter of 2025. Organic revenue decreased by 1.4%, due primarily to lower revenue for small research models in North America, as well as for
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research model services. The decline was partially offset by higher revenue for small research models in China.
In the second quarter of 2026, the RMS segment’s GAAP operating margin increased to 17.3% from 16.8% in the second quarter of 2025, primarily due to lower amortization of intangible assets related to the sale of the Cell Solutions business. On a non-GAAP basis, the operating margin decreased to 24.5% from 25.3%. The non-GAAP operating margin decrease was primarily driven by the impact of lower sales volume and an unfavorable geographic revenue mix.

Discovery and Safety Assessment (DSA)
Revenue for the DSA segment was $606.5 million in the second quarter of 2026, a decrease of 1.9% from $618.0 million in the second quarter of 2025. Organic revenue increased by 0.2%, driven primarily by higher study volume for regulated safety assessment services.
In the second quarter of 2026, the DSA segment’s GAAP operating margin increased to 20.5% from 19.9% in the second quarter of 2025. The increase was primarily driven by lower amortization of intangible assets related to the divestiture of certain European Discovery Services sites and lower third-party legal costs related to a non-human primate (NHP) supply matter. On a non-GAAP basis, the operating margin decreased to 25.6% from 27.4% in the second quarter of 2025. The non-GAAP operating margin decrease was primarily driven by higher study-related direct costs.

Manufacturing Solutions (Manufacturing)

Revenue for the Manufacturing segment was $188.1 million in the second quarter of 2026, a decrease of 6.3% from $200.8 million in the second quarter of 2025, primarily driven by the CDMO divestiture. Organic revenue increased 1.3%, driven primarily by higher revenue in the Microbial Solutions business.
The Manufacturing segment’s GAAP operating margin was 34.9%, compared to 6.0% in the second quarter of 2025. On a non-GAAP basis, the operating margin increased to 37.8% from 32.8% in the second quarter of 2025. The GAAP and non-GAAP increases were driven primarily by the CDMO business, including the benefit from the divestiture.
Stock Repurchase Update
The Company repurchased 1.7 million shares for a total of $300.0 million during the year-to-date period ended June 27, 2026, including 0.6 million shares for a total of $100.0 million in the second quarter of 2026. As of June 27, 2026, the Company had $700.0 million remaining under its $1.0 billion stock repurchase authorization that was approved by the Board of Directors on October 29, 2025.
2026 Guidance Update
The Company is increasing its 2026 revenue and non-GAAP earnings per share guidance, which was last updated on May 7, 2026. This increase primarily reflects the expected operational
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outperformance for the year, including in the second quarter, due primarily to improving demand trends in the DSA segment and better-than-expected performance in the Manufacturing segment. For the year, the Company expects the second-quarter investment gains associated with the deferred compensation plan will be largely offset by a higher tax rate, resulting in a negligible net impact to non-GAAP earnings per share.
On a GAAP basis, the Company is reducing its earnings per share guidance due primarily to the net loss related to the divestitures.
The Company’s 2026 guidance for revenue and earnings per share is as follows:
2026 GUIDANCECURRENTPRIOR
Revenue growth/(decrease), reported(3.5)% - (2.5)%
(5.5)% - (4.0)%
Less: Contribution from acquisitions0.0% - (0.5)%
0.0% - (0.5)%
Add: Impact from divestitures
~4.5%
~5.0%
Less: Favorable impact of foreign exchange(0.5)% - (1.0)%
(0.5)% - (1.0)%
Revenue growth/(decrease), organic (1)
0.0% - 1.0%(1.5)% - (0.5)%
GAAP EPS estimate$3.05 – $3.35
$5.35 – $5.85
Acquisition-related amortization (2)~$2.30
~$2.30
Acquisition- and divestiture-related costs (3)~$4.75
~$2.30
Costs associated with restructuring and efficiency initiatives (4)~$1.20
~$0.85
Other, net (5)($0.17)
NM
Non-GAAP EPS estimate$11.15 – $11.45$10.80 – $11.30

Footnotes to Guidance Table:
(1) Organic revenue growth is defined as reported revenue growth adjusted for completed acquisitions, divestitures (including the CDMO and Cell Solutions businesses, as well as certain European Discovery Services sites), as well as foreign currency translation.
(2) These adjustments primarily include amortization related to intangible assets, as well as the purchase accounting step-up on inventory and certain long-term biological assets.
(3) These adjustments include costs related to the evaluation and integration of acquisitions and divestitures, as well as a net loss on divestitures and other transaction-related tax adjustments.
(4) These adjustments primarily include site consolidation (including site transition costs), severance, impairment, third-party consulting and professional services, and other costs related to the Company’s restructuring actions and efficiency initiatives. These adjustments also include gains and/or losses on the sale of certain assets and real estate.
(5) These adjustments primarily include: (i) certain venture capital and other strategic investment losses/(gains), net. This item only includes recognized gains or losses on certain investments. The Company does not forecast the future performance of these investments; and (ii) reductions to a previous $27 million inventory charge associated with an NHP supply matter. As a result of the resolution of the U.S. government investigations during fiscal year 2025, certain NHPs were subsequently utilized.

Webcast
Charles River has scheduled a live webcast on Wednesday, August 5, 2026, at 9:00 a.m. ET to discuss matters relating to this press release. To participate, please go to ir.criver.com and select
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the webcast link. You can also find the associated slide presentation and reconciliations of GAAP financial measures to non-GAAP financial measures on the website.
Investor Day
Charles River will host an Investor Day on Thursday, September 24, 2026, at 9:00 a.m. ET. The meeting will be webcast live on the Investor Relations section of the Company's website at ir.criver.com.
Non-GAAP Reconciliations
The Company reports non-GAAP results in this press release, which exclude often-one-time charges and other items that are outside of normal operations. A reconciliation of GAAP to non-GAAP results is provided in the schedules at the end of this press release.
Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as non-GAAP earnings per share, non-GAAP operating income, non-GAAP operating margin, and non-GAAP net income. Non-GAAP financial measures exclude, but are not limited to, the amortization of intangible assets and the purchase accounting step-up adjustment on inventory and certain long term biological assets, and other charges and adjustments related to our acquisitions and divestitures, including expenses associated with evaluating and integrating acquisitions and divestitures, including advisory fees, certain transition costs, and certain other transaction-related costs, as well as fair value adjustments associated with contingent consideration; charges, gains, and losses attributable to businesses or properties we plan to close, consolidate, or divest, including the divestitures of our CDMO and Cell Solutions businesses, the sale of certain of our European Discovery Services sites, and the sale of certain assets including real estate; severance and other costs associated with our restructuring initiatives; investment gains or losses associated with our venture capital and certain other strategic equity investments; certain legal costs and adjustments related to an NHP inventory charge in our DSA segment related to now concluded U.S. government investigations into the NHP supply chain; legal and advisory costs related to entering into a Cooperation Agreement with a shareholder; tax effect of all of the aforementioned matters; and adjustments related to the derecognition of certain deferred tax assets due to the CDMO Gene Therapy intangible asset impairment charge, the recognition of deferred tax assets expected to be utilized as a result of changes to the Company's international financing structure, and the revaluation of deferred tax liabilities as a result of foreign tax legislation. This press release also refers to our revenue on both a GAAP and non-GAAP basis: on a non-GAAP basis, we define “organic revenue growth” as reported revenue growth adjusted for foreign currency translation, acquisitions, and divestitures. We exclude these items from the non-GAAP financial measures because they are outside our normal operations. There are limitations in using non-GAAP financial measures, as they are not presented in accordance with generally accepted accounting principles, and may be different than non-GAAP financial measures used by other companies. In particular, we believe that the inclusion of supplementary non-GAAP financial measures in this press release helps investors to gain a meaningful understanding of our core operating results and future prospects without the effect of these often-one-time charges, and is consistent with how management measures and forecasts the Company's performance, especially when comparing such results to prior periods or forecasts. We believe that the financial impact of our acquisitions and divestitures (and in certain cases, the evaluation of such acquisitions and
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divestitures, whether or not ultimately consummated) is often large relative to our overall financial performance, which can adversely affect the comparability of our results on a period-to-period basis. In addition, certain activities and their underlying associated costs, such as business acquisitions, generally occur periodically but on an unpredictable basis. We calculate non-GAAP integration costs to include third-party integration costs incurred post-acquisition. Presenting revenue on an organic basis allows investors to measure our revenue growth exclusive of acquisitions, divestitures, and foreign currency exchange fluctuations more clearly. Non-GAAP results also allow investors to compare the Company’s operations against the financial results of other companies in the industry who similarly provide non-GAAP results. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations presented in accordance with GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules and regulations. Reconciliations of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures are set forth in this press release, and can also be found on the Company’s website at ir.criver.com.

Caution Concerning Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “would,” “may,” “estimate,” “plan,” “outlook,” and “project,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements also include statements regarding: the projected and/or anticipated future financial performance of Charles River and our specific businesses, including as delineated in our forward-looking guidance, and particularly our expectations with respect to revenue, the impact of foreign exchange, interest rates, and enhanced efficiency initiatives; our expectations with respect to our ability to gain market share; our ability to create long-term value for our shareholders and successfully execute on our strategic initiatives, including the impact and results of such initiatives; the Company’s plans or prospects, expectations and long-term goals associated with our business; earnings per share; operating margin; client demand, particularly the future demand for drug discovery and development products and services, including our expectations for future revenue trends; our expectations with respect to booking trends and the impacts thereof; our expectations with respect to pricing of our products and services; our expectations with respect to future tax rates and the impact of such tax rates on our business; our expectations with respect to the impact of acquisitions and divestitures, including the acquisition of the assets of K.F. (Cambodia) Ltd. and of PathoQuest SAS, the divestitures of the Company's CDMO and Cell Solutions businesses, the sale of certain of our European Discovery Services sites, and the sale of certain assets including real estate; our service offerings, client perception, strategic relationships, revenue, revenue growth rates, revenue growth drivers, and earnings; the development and performance of our services and products, including our investments in our portfolio; market and industry conditions including the outsourcing of services and identification of spending trends by our clients and funding available to them; ability to gain market share and capitalize on business and growth opportunities; the impact of our restructuring initiatives, including annualized savings; and the impact of our stock repurchase authorization. Forward-looking statements are based on Charles River’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. Those risks and uncertainties include, but are not limited to: the impact of NHP supply constraints; changes
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and uncertainties in the global economy and financial markets, including disruptions in the global economy caused by geopolitical conflicts; the ability to successfully integrate businesses we acquire, and risks and uncertainties associated with businesses that we acquire; the timing and magnitude of our share repurchases; negative trends in research and development spending, negative trends in the level of outsourced services, or other cost reduction actions by our clients; the ability to convert backlog to revenue; demand and booking trends; special interest groups; contaminations; industry trends; new displacement technologies; USDA and FDA regulations; changes in law; continued availability of products and supplies; the impact of unauthorized access into our information systems; loss of key personnel; interest rate and foreign currency exchange rate fluctuations; changes in tax regulation and laws; changes in generally accepted accounting principles; and any changes in business, political, or economic conditions due to the threat of future terrorist activity in the U.S. and other parts of the world, and related U.S. military action overseas. A further description of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in Charles River's Annual Report on Form 10-K as filed on February 18, 2026, as well as other filings we make with the Securities and Exchange Commission. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by Charles River, and Charles River assumes no obligation and expressly disclaims any duty to update information contained in this press release except as required by law.

About Charles River

Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our dedicated employees are focused on providing clients with exactly what they need to improve and expedite the discovery, early-stage development and safe manufacture of new therapies for the patients who need them. To learn more about our unique portfolio and breadth of services, visit www.criver.com.

# # #

Investor Contact:    Media Contact:
Todd Spencer    Amy Cianciaruso
Corporate Vice President,    Corporate Senior Vice President,
Investor Relations    Chief Communications Officer
781.222.6455    781.222.6168
todd.spencer@crl.com    amy.cianciaruso@crl.com
7


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
(in thousands, except for per share data)
Three Months EndedSix Months Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Service revenue$808,287 $840,836 $1,606,439 $1,638,759 
Product revenue195,791 191,299 393,469 377,544 
Total revenue1,004,078 1,032,135 1,999,908 2,016,303 
Costs and expenses:
Cost of services provided (excluding amortization of intangible assets)552,007 584,876 1,160,914 1,162,304 
Cost of products sold (excluding amortization of intangible assets)88,697 90,192 180,956 179,200 
Selling, general and administrative228,897 191,549 388,319 369,348 
Amortization of intangible assets14,589 65,384 29,934 130,648 
Operating income119,888 100,134 239,785 174,803 
Other income (expense):
Interest income1,032 1,097 2,065 2,501 
Interest expense(30,340)(29,967)(57,082)(57,851)
Other (expense) income, net(37,410)154 (161,540)(12,057)
Income before income taxes53,170 71,418 23,228 107,396 
Provision for income taxes53,930 18,725 38,790 28,825 
Net income (loss)(760)52,693 (15,562)78,571 
Less: Net income attributable to noncontrolling interests722 367 763 776 
Net income (loss) attributable to common shareholders$(1,482)$52,326 $(16,325)$77,795 
Earnings (loss) per common share
Basic$(0.03)$1.06 $(0.34)$1.56 
Diluted$(0.03)$1.06 $(0.34)$1.55 
Weighted-average number of common shares outstanding
Basic48,021 49,149 48,486 49,913 
Diluted48,021 49,316 48,486 50,089 
8


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share amounts)
June 27, 2026December 27, 2025
Assets
Current assets:
Cash and cash equivalents$192,025 $213,770 
Trade receivables and contract assets, net of allowances for credit losses of $8,715 and $10,463, respectively711,755 708,856 
Inventories346,260 299,103 
Prepaid assets100,409 96,108 
Other current assets178,657 129,212 
Total current assets1,529,106 1,447,049 
Property, plant and equipment, net1,494,914 1,655,219 
Venture capital and strategic equity investments206,470 206,972 
Operating lease right-of-use assets, net330,247 361,415 
Goodwill3,076,851 2,764,253 
Intangible assets, net253,174 339,995 
Deferred tax assets53,827 67,334 
Other assets587,556 293,185 
Total assets$7,532,145 $7,135,422 
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities:
Accounts payable$140,983 $148,800 
Accrued compensation187,835 268,854 
Deferred revenue203,035 210,418 
Accrued liabilities380,101 270,085 
Other current liabilities222,792 222,158 
Total current liabilities1,134,746 1,120,315 
Long-term debt, net and finance leases2,619,985 2,136,360 
Operating lease right-of-use liabilities407,708 434,048 
Deferred tax liabilities78,668 95,203 
Other long-term liabilities402,511 138,302 
Total liabilities4,643,618 3,924,228 
Redeemable noncontrolling interests42,537 41,263 
Equity:
Preferred stock, $0.01 par value; 20,000 shares authorized; no shares issued and outstanding— — 
Common stock, $0.01 par value; 120,000 shares authorized; 49,550 shares issued and 47,728 shares outstanding as of June 27, 2026, and 49,217 shares issued and outstanding as of December 27, 2025
496 492 
Additional paid-in capital1,986,023 1,947,301 
Retained earnings1,372,295 1,388,620 
Treasury stock, at cost, 1,822 and zero shares, as of June 27, 2026 and December 27, 2025, respectively
(323,189)— 
Accumulated other comprehensive loss(195,989)(171,783)
Total Charles River Laboratories International, Inc. equity2,839,636 3,164,630 
Nonredeemable noncontrolling interest6,354 5,301 
Total equity2,845,990 3,169,931 
Total liabilities, redeemable noncontrolling interests and equity$7,532,145 $7,135,422 
9


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Six Months Ended
June 27, 2026June 28, 2025
Cash flows relating to operating activities
Net income (loss)$(15,562)$78,571 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization134,441 239,871 
Long-lived asset impairments26,279 31,203 
Stock-based compensation42,162 30,184 
Deferred income taxes 12,077 (41,030)
Write down of inventories3,165 11,067 
(Gains) losses and impairments on venture capital and strategic equity investments, net(6,936)12,899 
Gain on sale of assets(38,484)— 
Provision for credit losses1,124 2,191 
(Gain) loss on divestitures, net181,386 (3,376)
Other, net(12,595)2,266 
Changes in assets and liabilities:
Trade receivables and contract assets, net(87,135)(18,490)
Inventories43,747 (13,953)
Accounts payable21,276 16,241 
Accrued compensation(64,858)38,990 
Deferred revenue5,593 11,306 
Customer contract deposits(4,543)568 
Other assets and liabilities, net(20,335)(22,208)
Net cash provided by operating activities220,802 376,300 
Cash flows relating to investing activities
Acquisition of businesses and assets, net of cash acquired(467,254)— 
Capital expenditures(87,013)(94,622)
Purchases of investments and contributions to venture capital investments(11,805)(8,090)
Proceeds from sale of investments11,059 2,106 
Proceeds from sale of businesses and assets, net176,563 17,441 
Other, net(1,298)347 
Net cash used in investing activities(379,748)(82,818)
Cash flows relating to financing activities
Proceeds from long-term debt and revolving credit facility1,265,258 963,363 
Payments on long-term debt, revolving credit facility, and finance lease obligations(745,927)(887,706)
Proceeds from exercises of stock options1,620 1 
Purchase of treasury stock(323,881)(360,484)
Payments of contingent consideration(11,400)(21,822)
Purchase of remaining equity interests of other redeemable noncontrolling interest— (19,140)
Other, net(2,607)(6,458)
Net cash provided by (used in) financing activities183,063 (332,246)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash467 17,934 
Net change in cash, cash equivalents, and restricted cash24,584 (20,830)
Cash, cash equivalents, and restricted cash, beginning of period215,997 205,570 
Cash, cash equivalents, and restricted cash, end of period$240,581 $184,740 
10


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 4
RECONCILIATION OF GAAP TO NON-GAAP
SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)(1)
(in thousands, except percentages)
Three Months EndedSix Months Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Research Models and Services
Revenue$209,475 $213,271 $417,842 $426,344 
Operating income36,277 35,786 86,050 79,391 
Operating income as a % of revenue17.3 %16.8 %20.6 %18.6 %
Add back:
     Amortization related to acquisitions7,158 10,674 14,538 23,361 
     Acquisition, integration, and divestiture-related adjustments (3)
67 — 67 14 
     Severance(153)3,299 636 3,528 
     Asset impairment6,470 2,504 22,031 2,823 
     Cost savings and efficiency initiatives (4)
1,431 1,616 (20,533)2,492 
Total non-GAAP adjustments to operating income$14,973 $18,093 $16,739 $32,218 
Operating income, excluding non-GAAP adjustments$51,250 $53,879 $102,789 $111,609 
Non-GAAP operating income as a % of revenue24.5 %25.3 %24.6 %26.2 %
Depreciation and amortization$15,733 $19,710 $31,873 $41,471 
Capital expenditures$4,989 $3,640 $16,557 $10,926 
Discovery and Safety Assessment
Revenue$606,507 $618,029 $1,203,430 $1,210,638 
Operating income124,399 122,781 228,274 216,733 
Operating income as a % of revenue20.5 %19.9 %19.0 %17.9 %
Add back:
     Amortization related to acquisitions18,786 18,212 35,283 36,383 
     Acquisition, integration, and divestiture-related adjustments (3)
5,693 1,287 8,235 2,348 
     Severance1,080 237 3,706 5,216 
     Asset impairment3,261 11,911 3,261 21,697 
     Cost savings and efficiency initiatives (4)
3,792 3,928 8,779 6,705 
     Third-party legal and advisory costs and certain related items (5)
(1,687)10,817 (7,142)21,787 
Total non-GAAP adjustments to operating income$30,925 $46,392 $52,122 $94,136 
Operating income, excluding non-GAAP adjustments$155,324 $169,173 $280,396 $310,869 
Non-GAAP operating income as a % of revenue25.6 %27.4 %23.3 %25.7 %
Depreciation and amortization$41,633 $42,575 $81,547 $84,659 
Capital expenditures$20,433 $18,500 $57,942 $53,021 
Manufacturing Solutions
Revenue$188,096 $200,835 $378,636 $379,321 
Operating income65,606 12,061 112,445 3,441 
Operating income as a % of revenue34.9 %6.0 %29.7 %0.9 %
Add back:
     Amortization related to acquisitions (2)
2,061 46,333 4,006 92,410 
     Acquisition, integration, and divestiture-related adjustments (3)
2,764 — 2,764 — 
     Severance326 (383)(542)1,821 
     Asset impairment251 6,157 251 6,358 
     Cost savings and efficiency initiatives (4)
140 1,670 1,511 2,976 
Total non-GAAP adjustments to operating income$5,542 $53,777 $7,990 $103,565 
Operating income, excluding non-GAAP adjustments$71,148 $65,838 $120,435 $107,006 
Non-GAAP operating income as a % of revenue37.8 %32.8 %31.8 %28.2 %
Depreciation and amortization$7,389 $55,343 $15,788 $109,966 
Capital expenditures$5,634 $11,161 $11,908 $28,440 
Unallocated Corporate Overhead$(106,394)$(70,494)$(186,984)$(124,762)
Add back:
     Acquisition, integration, and divestiture-related adjustments (3)
18,173 2,161 34,762 2,891 
     Severance1,000 574 4,671 1,576 
     Asset impairment543 184 543 184 
     Cost savings and efficiency initiatives (4)
14,612 503 11,697 669 
     Third-party legal and advisory costs (5)
— 6,376 — 6,376 
Total non-GAAP adjustments to operating expense$34,328 $9,798 $51,673 $11,696 
Unallocated corporate overhead, excluding non-GAAP adjustments$(72,066)$(60,696)$(135,311)$(113,066)
Total
Revenue$1,004,078 $1,032,135 $1,999,908 $2,016,303 
Operating income119,888 100,134 239,785 174,803 
Operating income as a % of revenue11.9 %9.7 %12.0 %8.7 %
Add back:
     Amortization related to acquisitions (2)
28,005 75,219 53,827 152,154 
     Acquisition, integration, and divestiture-related adjustments (3)
26,697 3,448 45,828 5,253 
     Severance2,253 3,727 8,471 12,141 
     Asset impairment10,525 20,756 26,086 31,062 
     Cost savings and efficiency initiatives (4)
19,975 7,717 1,454 12,842 
     Third-party legal and advisory costs and certain related items (5)
(1,687)17,193 (7,142)28,163 
Total non-GAAP adjustments to operating income$85,768 $128,060 $128,524 $241,615 
Operating income, excluding non-GAAP adjustments$205,656 $228,194 $368,309 $416,418 
Non-GAAP operating income as a % of revenue20.5 %22.1 %18.4 %20.7 %
Depreciation and amortization$67,290 $119,507 $134,441 $239,871 
Capital expenditures$31,105 $35,298 $87,013 $94,622 
(1)
Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance.
(2)
Amortization related to acquisitions for the three and six months ended June 28, 2025 includes $35.5 million and $71.0 million of accelerated amortization of certain client relationships in the Biologics Solutions reporting unit within the Manufacturing Solutions reportable segment.
(3)
These adjustments are related to the evaluation and integration of acquisitions and divestitures, and primarily include transaction, advisory, certain third-party integration, certain compensation costs, and related costs; as well as fair value adjustments associated with contingent consideration arrangements.
(4)
Cost savings and efficiency initiatives in 2026 primarily include site consolidation charges related to recent site optimization activities, cost of professional services related to certain improvement initiatives, and a pre-tax gain of $38.5 million in connection with the sale of certain assets in Wilmington, Massachusetts. The gain was recognized within RMS reportable segment and unallocated corporate for $23.2 million and $15.3 million, respectively.
(5)
Within the DSA business, third‑party legal and advisory costs incurred during fiscal 2025 relate to U.S. government investigations into the NHP supply chain, which were concluded in fiscal 2025. Also included within DSA results for fiscal 2026 is the utilization of previously written‑down NHP inventory, resulting in partial reversals of the $27 million inventory charge recorded in fiscal 2024 following the resolution of the matter in fiscal 2025. Within Unallocated Corporate, third-party legal and advisory costs incurred during fiscal 2025 are associated with the execution of the Cooperation Agreement with a shareholder.
11


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 5
RECONCILIATION OF GAAP EARNINGS (LOSS) TO NON-GAAP EARNINGS (UNAUDITED)(1)
(in thousands, except per share data)
Three Months EndedSix Months Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Net income (loss) available to Charles River Laboratories International, Inc. common shareholders$(1,482)$52,326 $(16,325)$77,795 
Add back:
Non-GAAP adjustments to operating income (2)
84,753 127,079 126,463 239,472 
Venture capital and strategic equity investment losses and impairments, net(8,619)1,424 (6,867)11,393 
(Gain) loss on divestitures (3)
62,245 — 180,226 (3,376)
Accretion of deferred acquisition consideration (5)
1,660 — 1,660 — 
Tax effect of non-GAAP adjustments:
Tax impact of divestitures7,417 — (35,652)— 
Interest on acquired uncertain tax positions6,302 — 11,271 — 
Tax effect of the remaining non-GAAP adjustments(6,038)(26,837)(12,842)(52,182)
Net income available to Charles River Laboratories International, Inc. common shareholders, excluding non-GAAP adjustments$146,238 $153,992 $247,934 $273,102 
Weighted average shares outstanding - Basic48,021 49,149 48,486 49,913 
Effect of dilutive securities:
Stock options, restricted stock units and performance share units 400 167 431 176 
Weighted average shares outstanding - Diluted48,421 49,316 48,917 50,089 
Earnings (loss) per share attributable to common shareholders:
Basic$(0.03)$1.06 $(0.34)$1.56 
Diluted (4)
$(0.03)$1.06 $(0.34)$1.55 
Basic, excluding non-GAAP adjustments$3.05 $3.13 $5.11 $5.47 
Diluted, excluding non-GAAP adjustments$3.02 $3.12 $5.07 $5.45 
(1)
Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance.
(2)
This amount excludes non-GAAP adjustments attributable to noncontrolling interest holders.
(3)
The amount included in three and six month periods ended June 27, 2026 primarily reflects a $63.7 million and $181.7 million loss on the CDMO and Cell Solutions Divestiture, respectively, net with an offsetting $0.3 million gain on the European Discovery Divestiture. The amount included in 2025 relates to a gain on the sale of a DSA site.
(4)
Net loss available to Charles River Laboratories International, Inc. per common share excludes the effect of dilution and is computed using basic weighted-average number of shares outstanding for the three and six month periods ended June, 2026.
(5)
Represents non-cash interest expense recognized from the accretion of deferred purchase consideration associated with the Cambodia NHP Supplier acquisition.
12


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SCHEDULE 6
RECONCILIATION OF GAAP REVENUE GROWTH
TO NON-GAAP REVENUE GROWTH, ORGANIC (UNAUDITED) (1)
Three Months Ended June 27, 2026Total CRLRMS SegmentDSA SegmentMS Segment
Revenue growth, reported(2.7)%(1.8)%(1.9)%(6.3)%
(Increase) decrease due to foreign exchange(0.8)%(1.6)%(0.4)%(1.1)%
Contribution from acquisitions (2)
(0.2)%— %— %(0.9)%
Impact of divestitures (3)
3.8 %2.0 %2.5 %9.6 %
Non-GAAP revenue growth, organic (4)
0.1 %(1.4)%0.2 %1.3 %
Six Months Ended June 27, 2026Total CRLRMS SegmentDSA SegmentMS Segment
Revenue growth, reported(0.8)%(2.0)%(0.6)%(0.2)%
(Increase) decrease due to foreign exchange(1.8)%(2.4)%(1.3)%(2.4)%
Contribution from acquisitions (2)
(0.1)%— %— %(0.5)%
Impact of divestitures (3)
2.0 %0.9 %1.3 %5.2 %
Non-GAAP revenue growth, organic (4)
(0.7)%(3.5)%(0.6)%2.1 %
(1)
Charles River management believes that supplementary non-GAAP financial measures provide useful information to allow investors to gain a meaningful understanding of our core operating results and future prospects, without the effect of often-one-time charges and other items which are outside our normal operations, consistent with the manner in which management measures and forecasts the Company’s performance. The supplementary non-GAAP financial measures included are not meant to be considered superior to, or a substitute for results of operations prepared in accordance with U.S. GAAP. The Company intends to continue to assess the potential value of reporting non-GAAP results consistent with applicable rules, regulations and guidance.
(2)
The contribution from acquisitions reflects only completed acquisitions.
(3)
Impact of divestitures relates to the sale of certain European Discovery Services businesses in May 2026 within the DSA reportable segment as well as the sale of the CDMO and Cell Solutions businesses in May 2026 within the Manufacturing reportable segment and RMS reportable segment, respectively.
(4)
Organic revenue growth is defined as reported revenue growth adjusted for acquisitions, divestitures and foreign exchange.
13

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