Executive Summary

Q2 2025 delivered a clean beat: revenue $651.6M (+2.1% YoY; +1.0% CN) vs S&P Global consensus $614.3M; non-GAAP EPS $2.61 vs $1.75; adjusted EBITDA $124.0M vs $94.0M; management raised FY non-GAAP operating margin to 12–13% and tightened CN revenue growth to 0–1% .
Strength came from process chromatography (strong double-digit YoY CN growth; some order pull-forward), consumables resilience, and ddPCR portfolio expansion (QX Continuum launch; QX700 series via Stilla), while instruments remained soft, particularly in academia .
Tariff headwinds were sharply reduced to ~30–40 bps (from up to ~130 bps) on operating margin; FX now a ~100 bps tailwind to FY revenue and ~10 bps to operating income, supporting the margin raise .
Risks: gross margin compression (non-GAAP 53.7% vs 56.4% LY), China diabetes reimbursement pressure, and continued instrument demand softness; however, segment mix and cost control anchored operating margin outperformance .
Near-term stock catalysts: consensus beat/raise, tariff relief, process chromatography momentum, and ddPCR platform rollout; management tone constructive on H2 phasing and Q4 seasonal ramp .

What Went Well and What Went Wrong

What Went Well

Process chromatography posted strong double-digit YoY CN growth; demand normalized as customers worked down inventories, with some orders pulled into Q2 and full-year growth outlook raised from high single-digit to low double-digit .
ddPCR portfolio expansion: launched QX Continuum and rebranded QX700 series post-Stilla closing; management highlighted “very positive” early customer feedback and intent to expand digital PCR adoption beyond existing installed base .
Operating margin outperformed consensus and was guided higher for FY 2025 as tariff headwinds eased and consumables supported mix/absorption; CFO: “we now think [tariff] headwind is 30–40 bps” .

What Went Wrong

Gross margin compressed: GAAP 53.0% (−260 bps YoY) and non-GAAP 53.7% (−270 bps YoY) due to higher material costs and lower fixed manufacturing absorption from weaker instrument demand .
Clinical Diagnostics CN revenue down 0.7% YoY; China diabetes testing reimbursement cuts persisted, partially offset by quality control and immunology demand .
Instruments remained soft globally (especially academia) despite slight sequential improvement; management continues to expect a gradual recovery and is not assuming “budget flush” upside .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$667.5	$585.4	$651.6
GAAP Gross Margin (%)	51.2%	52.3%	53.0%
Non-GAAP Gross Margin (%)	53.9%	53.8%	53.7%
GAAP Income from Operations ($M)	$58.4	$23.7	$77.1
GAAP Operating Margin (%)	8.7%	4.0%	11.8%
Non-GAAP Income from Operations ($M)	$92.1	$63.0	$88.6
Non-GAAP Operating Margin (%)	13.8%	10.8%	13.6%
GAAP Diluted EPS ($)	$(25.57)	$2.29	$11.67
Non-GAAP Diluted EPS ($)	$2.90	$2.54	$2.61
Adjusted EBITDA ($M)	$126.1	$113.7	$124.0
Net Cash from Operations ($M)	N/A	$129.9	$116.5
Free Cash Flow ($M)	N/A	N/A	$70.8

Segment breakdown (Q2 2025):

Segment	Revenue ($M)	YoY Reported	YoY Currency-Neutral	Notes
Life Science	$262.8	+4.9%	+3.8%	Driven by process chromatography and food safety; Americas/EMEA growth
Clinical Diagnostics	$388.8	~flat (+0.2%)	−0.7%	Lower China diabetes reimbursement; offset by quality control/immunology
Revenue Mix	—	Life Science 40%; Diagnostics 60%	—	Segment mix from supplemental deck
Geographic Mix	—	—	—	Americas 48%, EMEA 33%, APAC 19%

KPIs:

KPI	Q4 2024	Q1 2025	Q2 2025
Adjusted EBITDA ($M)	$126.1	$113.7	$124.0
Net Cash from Operations ($M)	N/A	$129.9	$116.5
Free Cash Flow ($M)	N/A	N/A	$70.8

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue CN YoY	FY 2025	−1.0% to +1.5%	0.0% to +1.0%	Raised midpoint
Life Science Revenue CN YoY	FY 2025	−3.0% to 0.0%	0.0% to +1.0%	Raised
Clinical Diagnostics Revenue CN YoY	FY 2025	+0.5% to +2.5%	+0.5% to +1.5%	Tightened lower
Non-GAAP Gross Margin	FY 2025	53.0% to 54.5%	53.5% to 54.5%	Raised lower bound
Non-GAAP Operating Margin	FY 2025	10.0% to 12.0%	12.0% to 13.0%	Raised
Free Cash Flow	FY 2025	$310M to $330M	$310M to $330M	Maintained
Note	FY 2025	—	Margin excludes ~103 bps amortization	Clarification

Drivers: tariff headwind now ~30–40 bps (prior up to ~130 bps), consumables durability, improved process chromatography outlook, ddPCR contribution post-Stilla .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
ddPCR/Technology	Anticipated Stilla acquisition; expanded assay library and clinical partnerships	Moderated FY guide amidst macro; continued margin focus	QX Continuum launched; QX700 series rebranded; aim to expand user base beyond ddPCR installed base	Accelerating platform rollout
Process Chromatography	Weak biopharma end-markets weighed on Life Science	Life Science down due to academic/biotech softness	Strong double-digit CN growth; normalized ordering; FY growth outlook raised to low double-digit	Improving demand
Tariffs/Macro	Macro in China challenging; transformation/margin expansion focus	Guide lowered for macro uncertainty	Tariff headwind cut to 30–40 bps; FX tailwind ~100 bps revenue; 10 bps OI	Material headwind easing
Regional (China)	Diagnostics normalized; China macro challenging	Diagnostics down slightly CN; China reimbursement pressure	Diagnostics CN −0.7% YoY; diabetes reimbursement lowered; VBP no impact; DRG contemplated in Q1 guide	Stable headwind; well-contained
Instruments vs Consumables	Life Science weakness; instrument demand soft	Ongoing instrument softness	Instruments weak YoY; consumables resilient; slight sequential improvement	Gradual stabilization
Regulatory/IVDR	IVDR costs noted in non-GAAP adjustments	IVDR incremental costs noted	IVDR listed as non-GAAP adjustment item	Ongoing compliance costs

Management Commentary

CEO: “We delivered solid quarterly results, both in terms of revenue and operating margin, through focused execution and careful expense management… completed the acquisition of… Stilla Technologies… expanding our Droplet Digital PCR offering with… QX Continuum… complemented by the QX700 series” .
CFO: “We now think [tariff] headwind is 30 to 40 bps… biggest piece tariffs have come down significantly… we see better absorption… and consumable pull through” .
COO: ddPCR strategy centers on expanding market beyond installed base with simple workflows and price points to take share from qPCR; high-end sensitivity remains with QX700/QX600 .
CFO: Process chromatography saw strong double-digit growth with some pull-forward, and FY outlook lifted to low double-digit .
CEO: Tone constructive on customers adapting; highlighted signs of positive NIH funding signals into 2026; welcomed Stilla team .

Q&A Highlights

Process Chromatography sustainability: pull-forward represented ~20% of Q2 process chromatography sales; full-year growth outlook raised to low double-digit; normalization in ordering as inventories right-sized .
Tariffs/margins: tariff headwind reduced to ~30–40 bps vs prior up to ~130 bps; margin bridge improvement mainly from tariffs plus absorption/mix; FX tailwind adds ~100 bps to revenue, ~10 bps to operating income .
ddPCR instruments: slight sequential improvement but weak YoY; strategy is to expand users via Continuum/QX700; positioning vs qPCR and NGS to broaden adoption .
China diagnostics: diabetes reimbursement cuts persist; VBP not impacting portfolio; DRG adjustments contemplated in Q1 guide; specialty mix (quality controls) less exposed .
H2 phasing: Q3 expected similar to Q2; Q4 seasonal step-up with improved absorption/mix; Investor Day deferred to 2026 due to market/geopolitical volatility .

Estimates Context

Results vs S&P Global consensus:

Metric	Q4 2024 Consensus*	Q4 2024 Actual	Q1 2025 Consensus*	Q1 2025 Actual	Q2 2025 Consensus*	Q2 2025 Actual
Revenue ($M)	$679.8*	$667.5	$573.2*	$585.4	$614.3*	$651.6
Primary EPS ($)	$2.88*	$2.90	$1.78*	$2.54	$1.75*	$2.61
EBITDA ($M)	$132.9*	$126.1	$84.1*	$113.7	$93.9*	$124.0
# of Estimates (Rev/EPS)	5 / 5*	—	5 / 5*	—	5 / 5*	—

Q2 2025 was a broad beat: revenue +6% vs consensus, EPS +49%, EBITDA +32%. Q1 2025 also beat across revenue/EPS/EBITDA; Q4 2024 was mixed with a slight EPS beat and revenue/EBITDA below consensus .
Guidance raises and tariff relief likely warrant upward revisions to FY gross/operating margin and Life Science revenue assumptions, while Diagnostics growth is tightened to 0.5–1.5% CN .

Values retrieved from S&P Global.*

Key Takeaways for Investors

Q2 delivered an unequivocal beat and FY guide raise; the setup into H2 looks cleaner with tariff headwinds easing and FX tailwinds emerging .
Process chromatography momentum and consumables resilience offset instrument softness; Life Science growth reset to 0–1% CN and Diagnostics to 0.5–1.5% CN .
ddPCR expansion (QX Continuum, QX700) is strategic, broadening TAM and positioning against qPCR/NGS; expect commercial ramp and content migration to support mix/absorption into Q4 .
Gross margin pressure persists but is stabilizing; operating margin raise (12–13%) reflects actions and easing exogenous headwinds—consensus should move higher on FY margin .
China reimbursement remains a manageable drag given portfolio mix (quality controls/immunology); VBP not impacting; watch policy evolution and Q4 comp normalization .
Cash generation intact: Q2 free cash flow $70.8M; FY FCF guide maintained at $310–330M, supportive for buybacks ($139M repurchased in Q2; $337M remaining authorization) .
Near-term trading lens: positive revisions on margins and Life Science, strengthened narrative on tariff relief and ddPCR ramp; stock sensitive to Q3 execution and confirmation of Q4 seasonal step-up .

Additional Data and Notes

Life Science revenue Q2: $262.8M (+4.9% YoY; +3.8% CN) .
Clinical Diagnostics revenue Q2: $388.8M (~flat YoY; −0.7% CN) .
GAAP diluted EPS impacted by mark-to-market of Sartorius AG; non-GAAP excludes equity valuation changes per policy .
FY non-GAAP operating margin excludes ~103 bps of purchased intangibles amortization .

Management quotes and data pulled from: Q2 2025 press release and 8-K, supplemental deck, Q2 earnings call transcript, and prior quarter releases .

BIO-RAD LABORATORIES, INC. (BIO)·Q2 2025 Earnings Summary