Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

c52d76fdd9accacc3b78a236b41bad8efc53f72e7dd09203a30486e188e6bd30

7b377685a3e4cd07117f69079986b6cb445eea8c6454abfdf7432e3864e11549

0e28a2a32751a0b41d9e00ee9d3e0f4636a579884c894ce9d2ac2b85d73d6dc0

39809cf0fd03225af8e8115725409e65e236bba2c863632618c00ef09dc408ec

The dramatic surge in operating income in Q3 2024 was driven by **significantly lower impairment charges**, which were present in Q3 2023 but absent in Q3 2024, along with **higher revenue** and **improved gross margins** resulting from lower manufacturing costs and increased sales volumes of higher-margin products. Additionally, **reduced operating expenses**—partially offset by restructuring costs—contributed to this improvement.  **[0001140361-24-034651_ef20033179_ex99-1.htm:1]** **[0000859737-24-000020_holx-20240629.htm:52]** 

What drove the dramatic surge in operating income in Q3 2024?

In Q2 2024, net income was notably lower due to **lower COVID-19 assay sales**, which significantly impacted **Diagnostics revenue** and overall **profitability**. This decline led to a reduction in **gross margins**—with the GAAP gross margin falling by **380 basis points** to **53.3%**—and a sharp decrease in the **operating margin** by **580 basis points** to **20.7%**. Additionally, **operating expenses increased by 5.8%** to **$331.9 million**, further contributing to the overall decline, which totaled a **22.2% decrease** compared to Q2 2023.  **[0000859737-24-000014_holx-20240330.htm:2]** **[0001140361-24-023989_ef20028283_ex99-1.htm:1]** 

Why was net income notably lower in Q2 2024?

The decline in **EPS** in Q1 2025 was driven by a combination of factors. **Lower GAAP Net Income**—which fell to **$201.0 million** (an **18.5%** decrease)—was a primary contributor, largely due to a **15.7%** reduction in **COVID-19-related revenues** and declining sales in key segments such as **Breast Health** (with overall sales down **2.3%** and **5.9%** organically) and **Skeletal Health** (down **37.8%**).  **[0001140361-25-003175_ef20042933_ex99-1.htm:1]** **[0001140361-25-003175_ef20042933_ex99-1.htm:0]** **[0001140361-25-000881_ef20041439_ex99-1.htm:1]**  In addition, **modest revenue growth** impacted by a strengthening U.S. dollar and **increased operating expenses**, including costs associated with the Endomagnetics acquisition, further pressured net income, even though share buybacks helped reduce the share count.  **[0001140361-25-003175_ef20042933_ex99-1.htm:0]** **[HOLX_3414444_5]** 

What contributed to the decline in EPS in Q1 2025?

The significant increase in FY 2024 net income was driven by several factors. **Stable total revenues** helped maintain a consistent income base even as **product revenues declined slightly**, while **service and other revenues increased**, enhancing overall revenue quality.  **[0000859737-24-000024_holx-20240928.htm:124]**  **Significantly lower impairment charges** (a reduction from **$223.8 million** to **$44.8 million**) and a **marked decrease in the provision for income taxes** (from **$220.1 million** to **$75.6 million**) notably improved profitability.  **[0000859737-24-000024_holx-20240928.htm:124]** **[0000859737-24-000024_holx-20240928.htm:128]**  Additionally, **operating income increased** (from **$668.4 million** to **$882.6 million**), thanks to **lower operating expenses** (declining from **$1,403.1 million** to **$1,345.2 million**) and better efficiency within key segments like **Breast Health**, which saw a substantial boost driven by higher product and service revenues.  **[0000859737-24-000024_holx-20240928.htm:124]** **[0000859737-24-000024_holx-20240928.htm:81]** 

What factors led to the significant increase in annual net income in FY 2024?

c151c3c3d44cc41ebb126b5fc7bd33141420b23a8baf9808f4630d63790a7033

During Q1 2025, **Cash and Cash Equivalents decreased by $378.1 million** primarily because the company used significant cash in both financing and investing activities. The reduction was largely driven by **$537.0 million in financing activities**, including **$517.3 million used for repurchasing common stock** (which featured a **$250 million accelerated share repurchase program**) and supplemented by **$22.0 million in investing activities** related to capital expenditures and license purchases. These outflows were only partially offset by the **$189.3 million** generated from operating activities.  **[0000859737-25-000005_holx-20241228.htm:46]** 

Why is Cash and Cash Equivalents so low in Q1 2025?

The reduction in Total Assets in Q1 2025 was primarily driven by a **decrease in cash and cash equivalents** – which fell from **$2,160.2 million** to **$1,782.1 million** – largely due to **repurchases of common stock** (including a **$250 million accelerated share repurchase**) and **capital expenditures**, despite some offset from operating cash generation. Additionally, there was a **decline in intangible assets** by **$51.3 million** as these were amortized, and a slight **decrease in goodwill** by **$20.2 million** further contributed to the drop, with only a minor offset from an increase in other assets.  **[0000859737-25-000005_holx-20241228.htm:2]** **[0000859737-25-000005_holx-20241228.htm:46]** **[0000859737-25-000005_holx-20241228.htm:3]** 

What caused the reduction in Total Assets in Q1 2025?

The documents indicate that there is no explicit explanation provided for the increase in Q1 2025. However, such a change typically results from **scheduled repayments of long-term debt becoming due within the next 12 months** or **adjustments related to debt agreements**.  **[0000859737-25-000005_holx-20241228.htm:2]** **[0000859737-25-000005_holx-20241228.htm:16]** 

What factors led to the increase in the Current Portion of Long-Term Debt in Q1 2025?

The documents do not explicitly state the reason for the sharp drop in Long-Term Investments in Q1 2025. They indicate that the value decreased from **$96.4 million** to **$47.9 million** and mention that this change could be due to factors such as maturities, reclassification to short-term investments, or sales of securities, with no specific mention of impairments or credit losses.  **[0000859737-25-000005_holx-20241228.htm:2]** **[0000859737-25-000005_holx-20241228.htm:11]** 

Why did Long-Term Investments drop sharply in Q1 2025?

8ab154062c2de28b1c480a9592272038dd66fa1b54d6a6d12374e88e2e30b6cf

United States

Europe

Asia-Pacific

All Others

Rest of World

International

Total Revenue

fc754b14fd5510c8c863016b50510d1d14a959b6a515002d66aedca428029f96

Net income (USD, millions)

Depreciation (USD, millions)

Amortization of acquired intangible assets (USD, millions)

Stock-based compensation expense (USD, millions)

Intangible asset impairment charge (USD, millions)

Other adjustments and non-cash items (USD, millions)

Net cash provided by operating activities (USD, millions)

Acquisition of businesses, net of cash acquired (USD, millions)

Acquisition of intangible assets (USD, millions)

Sale of business, net of cash disposed (USD, millions)

Capital expenditures (USD, millions)

Increase in equipment under customer usage agreements (USD, millions)

Strategic investments (USD, millions)

Maturities of available-for-sale securities (USD, millions)

Other activity (Investing) (USD, millions)

Net cash used in investing activities (USD, millions)

Repayment of long-term debt (USD, millions)

Repurchases of common stock (USD, millions)

Proceeds from issuance of common stock pursuant to employee stock plans (USD, millions)

Payment of minimum tax withholdings on net share settlements of equity awards (USD, millions)

Payments under finance lease obligations (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of exchange rate changes on cash and cash equivalents (USD, millions)

Net decrease in cash and cash equivalents (USD, millions)

Deferred income taxes (USD, millions)

Accounts receivable (USD, millions)

Inventories (USD, millions)

Prepaid income taxes (USD, millions)

Prepaid expenses and other assets (USD, millions)

Accounts payable (USD, millions)

Accrued expenses and other liabilities (USD, millions)

Deferred revenue (USD, millions)

Cash and cash equivalents, beginning of period (USD, millions)

Cash and cash equivalents, end of period (USD, millions)

917dbaee299e3cccdea70527864a8fee8f2e47f7520bcd9e0dab22238bda21cd

Revenues (USD, millions)

Gross profit (USD, millions)

Income from operations (USD, millions)

Interest income (USD, millions)

Interest expense (USD, millions)

Other income (expense), net (USD, millions)

Income before income taxes (USD, millions)

Provision (benefit) for income taxes (USD, millions)

Net income per common share - Basic (USD)

Net income per common share - Diluted (USD)

Weighted average number of shares outstanding - Basic (thousands)

Weighted average number of shares outstanding - Diluted (thousands)

2672af0d482a73eff7cf0f91fa47b96cc524e6c5964031451c275b52239e794a

Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Accounts receivable, less reserves (USD, millions)

Inventory (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Intangible assets, net (USD, millions)

Goodwill (USD, millions)

Long-term investments (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Current portion of long-term debt (USD, millions)

Accrued expenses (USD, millions)

Total current liabilities (USD, millions)

Long-term debt, net of current portion (USD, millions)

Deferred income tax liabilities (USD, millions)

Other long-term liabilities (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

dd32969161c462a691f990a16921f1ebd4338605b7d12941cd146ab61393df4a

Hologic Inc (HOLX)

Financials