Executive Summary

Q3 2025 delivered modest top-line growth and margin outperformance: revenue $653.0M (+0.5% YoY reported; -1.7% currency-neutral) and non-GAAP operating margin 11.8% (up ~50bps YoY) as disciplined cost management offset instrument demand softness .
Non-GAAP EPS of $2.26 beat Wall Street consensus $1.93*; revenue of $653.0M beat $651.3M*; GAAP EPS was a loss of $(12.70) primarily due to the fair value change in the Sartorius investment .
Segment performance was mixed: Life Science $261.8M (+0.3% reported; -1.5% CN) with strong double-digit process chromatography offset by core research softness; Clinical Diagnostics $391.2M (+0.6% reported; -1.8% CN) impacted by lower diabetes testing reimbursement in China .
FY25 outlook maintained: currency-neutral revenue growth 0–1%, non-GAAP gross margin 53.5–54.5%, non-GAAP operating margin 12–13%, and free cash flow $310–$330M; management expects sequential margin improvement in Q4 and diagnostics to return to growth as China headwinds annualize .

Note: Estimates marked with an asterisk (*) are values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Margin execution: “Our ongoing focus on disciplined cost management contributed to a better-than-expected operating margin” — Norman Schwartz, CEO .
- Process chromatography: strong double-digit YoY growth; FY25 outlook raised to high-teens growth for the category (from low double-digit) .
- ddPCR strategy progress: global sales training completed on new QX platforms; strong customer receptivity and growing funnel; partnerships with GenCurex and BioDesyx expand ddPCR diagnostics presence .
What Went Wrong
- Research funding softness: continued constrained academic and biotech markets pressured core Life Science (ex-process chromatography), down 6% YoY reported and -7.8% CN .
- China reimbursement: Clinical Diagnostics currency-neutral decline (-1.8% YoY) driven primarily by lower reimbursement rates for diabetes testing in China .
- Gross margin compression: GAAP gross margin 52.6% (down ~220bps YoY) and non-GAAP gross margin 53.5% (down ~210bps YoY) due to higher material costs and lower fixed absorption .

Financial Results

Summary Metrics

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$649.7	$651.6	$653.0
GAAP Gross Margin (%)	54.8%	53.0%	52.6%
Non-GAAP Gross Margin (%)	55.6%	53.7%	53.5%
GAAP Operating Margin (%)	9.9%	11.8%	10.0%
Non-GAAP Operating Margin (%)	11.3%	13.6%	11.8%
GAAP Diluted EPS ($)	$23.34	$11.67	$(12.70)
Non-GAAP Diluted EPS ($)	$2.02	$2.61	$2.26

Key callouts:

EPS and revenue beat consensus in Q3 2025: $2.26 vs $1.93* EPS; $653.0M vs $651.3M* revenue.
GAAP net loss in Q3 2025 driven by $495.3M fair value change in equity securities (Sartorius) .

Segment Breakdown (Q3 2025)

Segment	Revenue ($M)	YoY Reported	YoY Currency-Neutral
Life Science	$261.8	+0.3%	-1.5%
Clinical Diagnostics	$391.2	+0.6%	-1.8%
Life Science excl. Process Chromatography	—	-6.0%	-7.8%
Process Chromatography (commentary)	—	Strong double-digit CN YoY	Strong double-digit CN YoY

Geography mix (Q3 2025):

Life Science: Americas 52%, EMEA 30%, APAC 18% .
Clinical Diagnostics: Americas 44%, EMEA 37%, APAC 19% .

KPIs and Balance Sheet

KPI	Q3 2024	Q3 2025
Net Cash from Operations ($M)	$163.6	$120.9
Free Cash Flow ($M)	$123.4	$89.2
Share Repurchases (Q3)	—	212,578 shares; $53M; avg $249/share
Cash & Short-Term Investments ($M)	$1,665 (FY24 YE)	$1,418.6 (Cash $395.8 + ST inv $1,022.8)
Long-Term Debt ($M)	$1,200 (FY24 YE)	$1,201.4
Investment in Sartorius AG ($M)	$4,469 (FY24 YE)	$5,057.8 (balance sheet carrying value)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue Growth (Currency-Neutral)	FY 2025	-1.0% to +1.5% (Q1 update)	0.0% to +1.0% (Q2 raised, reaffirmed Q3)	Tightened midpoint; maintained in Q3
Life Science CN Revenue Growth	FY 2025	-3.0% to 0.0% (Q2)	0.0% to +1.0% (Q2 update; maintained Q3)	Raised in Q2; maintained
Clinical Diagnostics CN Revenue Growth	FY 2025	+0.5% to +2.5% (Q2)	+0.5% to +1.5% (Q3)	Narrowed upper bound
Non-GAAP Gross Margin	FY 2025	53.0% to 54.5% (Q2)	53.5% to 54.5% (Q3)	Slightly raised lower bound
Non-GAAP Operating Margin	FY 2025	10.0% to 12.0% (Q1)	12.0% to 13.0% (Q2; maintained Q3)	Raised in Q2; maintained
Free Cash Flow	FY 2025	$310M to $330M (Q1)	$310M to $330M (Q2; maintained Q3)	Maintained

Management added Q4 framing: slight step-up in gross margin on mix; sequential operating margin improvement of at least 80bps; diagnostics to return to growth as China pricing headwind annualizes; no “budget flush” expected in Life Science given NIH uncertainty .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025, Q1 2025)	Current Period (Q3 2025)	Trend
ddPCR portfolio/launch	Acquisition of Stilla; QX Continuum launch; expanding ddPCR offerings	Global sales training completed; strong customer receptivity; pipeline building; partnerships with GenCurex/BioDesyx	Positive build; commercial ramp underway
Process Chromatography	Q2 Life Science growth driven by process chromatography; raised outlook	Strong double-digit YoY; expected sequential decline in Q4 on timing; FY25 high-teens growth	Volatile intra-quarter; strong FY25
Academic/biotech funding	Q1: constrained academic; Life Science down	Continued softness in instrument demand; core LS ex-process down 6% YoY	Persistent headwind
China diagnostics reimbursement	Q2: lowered reimbursements for diabetes testing impacted APAC	CN sales down 1.8% YoY; China diabetes pricing headwind quantified mid-single-digit + channel cut-in last Q4	Headwind annualizing by Q4
Margins/cost discipline	Q1/Q2 focus on expense management; margins guided higher	Non-GAAP OM 11.8% (+50bps YoY); Q4 sequential OM +≥80bps expected	Improving sequentially
Share repurchases/FCF	Ongoing buybacks; FCF guide maintained	Q3 buybacks $53M; YTD $296M; FCF $89M; FY FCF $310–$330M reaffirmed	Continued capital returns

Management Commentary

“Despite ongoing challenges in academic research and biotech funding, and the resulting reduced demand for instruments, our teams delivered solid results in Q3. Our ongoing focus on disciplined cost management contributed to a better-than-expected operating margin.” — Norman Schwartz, Chairman & CEO .
“On a non-GAAP basis, third quarter operating margin was 11.8%… reflecting proactive cost actions… We expect operating margins to improve sequentially by at least 80 basis points.” — Roop Lakkaraju, CFO .
“Process chromatography… experienced strong double-digit growth… we expect fourth quarter process chromatography revenue to be lower sequentially… For the full year 2025, we expect high teens growth for this product area.” — Roop Lakkaraju, CFO .
“We completed global sales training on our new QX platforms… encouraged by customer receptivity… our sales funnel… is building nicely…” — Jon DiVincenzo, President & COO .

Q&A Highlights

Q4 setup: modest uptick in both Life Science and Diagnostics; diagnostics supported by quality controls timing; life science without a budget flush given NIH uncertainties .
Process chromatography normalization: management targets high single-digit growth longer-term in 2026 despite quarterly volatility and earlier easy comps .
China diabetes pricing headwind: last Q4 included mid-single-digit price cut impact plus low-to-mid single-digit channel effects; headwind annualizing in Q4 .
ddPCR trajectory: integration not disruptive; instrumentation rebound expected in Q4 and into 2026; consumables slower in Q3 but expected to recover .
Margin expansion in 2026: opportunities from lean initiatives, logistics, and supply chain buying-power leverage even with low single-digit top-line growth .

Estimates Context

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
EPS (Consensus Mean vs Actual, $)	1.18* vs 2.02	1.78* vs 2.54	1.75* vs 2.61	1.93* vs 2.26
Revenue (Consensus Mean vs Actual, $M)	628.6* vs 649.7	573.2* vs 585.4	614.3* vs 651.6	651.3* vs 653.0

Observations:

BIO has consistently beaten both EPS and revenue consensus in the periods shown, with particularly notable revenue upside in Q2 2025 relative to expectations .

Values retrieved from S&P Global.

Key Takeaways for Investors

Non-GAAP EPS and revenue beats alongside maintained FY25 guidance are positive catalysts; margin discipline and expected Q4 sequential margin step-up underpin near-term confidence .
Process chromatography strength aided Q3, but management flagged a Q4 sequential step-down on timing; core Life Science remains pressured by academic/biotech funding softness, tempering near-term upside .
Diagnostics should improve in Q4 as the China pricing headwind annualizes and quality controls revenue timing helps; watch for APAC demand normalization vs macro softness .
ddPCR portfolio expansion (QX Continuum and QX700 series) is gaining customer traction; pipeline growth offers medium-term mix and margin benefits as instruments and consumables ramp .
Capital allocation remains shareholder-friendly: ongoing buybacks ($53M in Q3; $296M YTD), strong FCF conversion, and FY FCF guide of $310–$330M reaffirmed .
Key swing factors: NIH budget clarity, academic funding recovery pace, China healthcare policy (reimbursement/VBP) trajectory, and the cadence of process chromatography orders .
Into 2026, management aims for margin expansion via lean, logistics, and supply chain leverage even on low single-digit growth—monitor execution vs macro headwinds .

BIO-RAD LABORATORIES, INC. (BIO)·Q3 2025 Earnings Summary