| Segment/Quarter                  | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 |
|----------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Diagnostics (USD Million)**    | 443.3  **[0001140361-24-045107_ef20038078_ex99-1.htm:2]**  | 440.8  **[0000859737-24-000020_holx-20240629.htm:26]**  | 450.1  **[0001140361-24-024213_ef20028431_ex99-1.htm:0]**  | 447.8  **[0001157523-24-000028_a53878061ex99_1.htm:1]**  | 416.4  **[0001157523-23-001706_a53797393_ex991.htm:1]**  | 439.7  **[HOLX_3383759_6]**  | 464.7  **[0000859737-23-000011_holx-20230401.htm:6]**  | 559.3  **[HOLX_3226394_4]**  |
| **Breast Health (USD Million)**  | 375.5  **[0001140361-24-045107_ef20038078_ex99-1.htm:2]**  | 385.0  **[0000859737-24-000020_holx-20240629.htm:26]**  | 384.6  **[0001140361-24-024213_ef20028431_ex99-1.htm:0]**  | 377.7  **[0001157523-24-000028_a53878061ex99_1.htm:1]**  | 352.8  **[0001157523-23-001706_a53797393_ex991.htm:1]**  | 360.3  **[HOLX_3383759_6]**  | 385.4  **[0000859737-23-000011_holx-20230401.htm:6]**  | 334.2  **[HOLX_3226394_4]**  |
| **GYN Surgical (USD Million)**   | 156.5  **[0001140361-24-045107_ef20038078_ex99-1.htm:2]**  | 166.6  **[0000859737-24-000020_holx-20240629.htm:26]**  | 156.0  **[0001140361-24-024213_ef20028431_ex99-1.htm:0]**  | 162.2  **[0001157523-24-000028_a53878061ex99_1.htm:1]**  | 148.0  **[0001157523-23-001706_a53797393_ex991.htm:1]**  | 157.3  **[HOLX_3383759_6]**  | 144.8  **[0000859737-23-000011_holx-20230401.htm:6]**  | 154.1  **[HOLX_3226394_4]**  |
| **Skeletal Health (USD Million)**| 12.7  **[0001140361-24-045107_ef20038078_ex99-1.htm:2]**   | 19.0  **[0000859737-24-000020_holx-20240629.htm:26]**   | 27.1  **[0001140361-24-024213_ef20028431_ex99-1.htm:0]**   | 25.4  **[0001157523-24-000028_a53878061ex99_1.htm:1]**   | 28.0  **[0001157523-23-001706_a53797393_ex991.htm:1]**   | 27.1  **[HOLX_3383759_6]**   | 31.6  **[0000859737-23-000011_holx-20230401.htm:6]**   | 26.6  **[HOLX_3226394_4]**   |

1e79598e61bade6eb4bbf944879606da2667493a4d9eb3a29b29fe52a80e00f0

25c4721260323d8c355a8ed105780c7a18d4f26154aac3c1a6299080de0514e5

| Metric [Unit: $ Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States            | N/A     | **768.7**  **[0000859737-23-000011_holx-20230401.htm:30]**  | N/A     | **715.5**  **[0001157523-23-001706_a53797393_ex991.htm:3]**  | **753.7**  **[0000859737-24-000003_holx-20231230.htm:5]**  | **759.4**  **[0000859737-24-000014_holx-20240330.htm:6]**  | **765.3**  **[0000859737-24-000020_holx-20240629.htm:6]**  | **745.6**  **[0001140361-24-045107_ef20038078_ex99-1.htm:2]**  |
| International            | N/A     | N/A     | N/A     | **229.8**  **[0001157523-23-001706_a53797393_ex991.htm:3]**  | N/A     | **258.4**  **[0000859737-24-000014_holx-20240330.htm:6]**  | **246.1**  **[0000859737-24-000020_holx-20240629.htm:6]**  | **242.3**  **[0001140361-24-045107_ef20038078_ex99-1.htm:2]**  |
| Europe                   | N/A     | **151.8**  **[0000859737-23-000011_holx-20230401.htm:30]**  | N/A     | N/A     | **142.8**  **[0000859737-24-000003_holx-20231230.htm:5]**  | **13.5%** of total  **[0000859737-24-000014_holx-20240330.htm:27]**  | N/A     | N/A     |
| Asia-Pacific             | N/A     | **65.7**  **[0000859737-23-000011_holx-20230401.htm:30]**  | N/A     | N/A     | **63.8**  **[0000859737-24-000003_holx-20231230.htm:5]**  | **6.3%** of total  **[0000859737-24-000014_holx-20240330.htm:27]**  | N/A     | N/A     |
| Rest of World            | N/A     | **40.3**  **[0000859737-23-000011_holx-20230401.htm:30]**  | N/A     | N/A     | **52.8**  **[0000859737-24-000003_holx-20231230.htm:5]**  | **5.6%** of total  **[0000859737-24-000014_holx-20240330.htm:27]**  | N/A     | N/A     |

21c935ebbd24ad3f65adf2113559320bfbabca23d3378ce577d5cac6899803d1

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)

4df8740c7ec19781d9f0a838526bce7d9bf9615b718049395f8d55349712d068

Hologic, Inc. is a medical technology company dedicated to advancing women's health through early detection and treatment solutions. The company operates in four main segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health, offering a range of products that contribute significantly to its revenue **[0000859737-24-000003_holx-20231230.htm:27]** **[0000859737-24-000024_holx-20240928.htm:65]** **[0000859737-24-000014_holx-20240330.htm:33]** **[0000859737-24-000024_holx-20240928.htm:7]**. Hologic's offerings include advanced diagnostic assays, breast cancer care solutions, gynecological surgical products, and bone health assessment tools **[0000859737-24-000003_holx-20231230.htm:27]** **[0000859737-24-000024_holx-20240928.htm:65]** **[0000859737-24-000014_holx-20240330.htm:33]** **[0000859737-24-000024_holx-20240928.htm:7]**. In fiscal year 2023, the company reported total revenue of $4.03 billion, with each division achieving double-digit organic growth, excluding the impact of COVID-19 **[0001140361-24-002733_ny20013458x1_def14a.htm:10]**.

1. **Diagnostics** - Offers a wide range of diagnostic products, including molecular diagnostic assays on systems like Panther and Panther Fusion, detecting infectious microorganisms, high-risk HPV strains, and other viruses. Includes the ThinPrep cytology system for cervical cancer screening and the Rapid Fetal Fibronectin Test for pre-term birth risk assessment **[0000859737-24-000003_holx-20231230.htm:27]** **[0000859737-24-000024_holx-20240928.htm:65]** **[0000859737-24-000014_holx-20240330.htm:33]** **[0000859737-24-000024_holx-20240928.htm:7]**.
2. **Breast Health** - Provides solutions for breast cancer care, including 3D digital mammography systems, image analysis software, and minimally invasive breast biopsy systems, with strong revenue growth driven by increased gantry shipments and robust service revenue **[0000859737-24-000003_holx-20231230.htm:27]** **[0000859737-24-000024_holx-20240928.htm:65]** **[0000859737-24-000014_holx-20240330.htm:33]** **[0000859737-24-000024_holx-20240928.htm:7]** **[HOLX_3394881_3]**.
3. **GYN Surgical** - Includes products like the MyoSure hysteroscopic tissue removal system and the NovaSure endometrial ablation system, with significant growth driven by MyoSure and Fluent systems **[0000859737-24-000003_holx-20231230.htm:27]** **[0000859737-24-000024_holx-20240928.htm:65]** **[0000859737-24-000014_holx-20240330.htm:33]** **[0000859737-24-000024_holx-20240928.htm:7]** **[0001140361-24-002733_ny20013458x1_def14a.htm:10]**.
4. **Skeletal Health** - Offers products for bone health assessment, being the smallest contributor to overall revenue compared to the other segments **[0000859737-24-000003_holx-20231230.htm:27]** **[0000859737-24-000024_holx-20240928.htm:65]** **[0000859737-24-000014_holx-20240330.htm:33]** **[0000859737-24-000024_holx-20240928.htm:7]**.

d8edc40d24defa22231ebddafec862ccf581a15832c0145106519ce280ee8c00

1. With the slowing of Panther placements after the pandemic  **[HOLX_3405607_22]** , how do you plan to sustain growth in molecular diagnostics revenue, and can you provide more details on strategies to drive assay adoption without new instrument placements?

2. Given the upcoming launch of the new gantry in Breast Health and the potential impact on revenue in fiscal '25  **[HOLX_3405607_9]** , how are you addressing the risk of customers delaying purchases, and what steps are you taking to ensure revenue stability in this segment?

3. Regarding your recent acquisition of Gynasonix  **[HOLX_3405607_20]** , can you elaborate on how the Sonata system complements your existing GYN Surgical portfolio without cannibalizing products like MyoSure, and what specific synergies do you expect to achieve?

4. With the reported transitory headwinds such as supply chain shortages and IV fluid issues  **[HOLX_3405607_15]** , can you quantify the expected financial impact on fiscal '25, and what strategies are you implementing to mitigate these challenges?

5. In terms of capital allocation, given your recent M&A activities and share repurchase programs  **[HOLX_3405607_1]** , how are you balancing investments in organic growth versus returning capital to shareholders, and what should investors expect in terms of future capital deployment?

80eb7e419f54b047bc3ff2ff6c343fe034df26b7987087b1f8ad8e1067d44569

United States

Europe

Asia-Pacific

All Others

Rest of World

Total Revenue

00f1968e2ed26935cfe1029315b8b393665564bbda3b7f976701e1fa3ccee1f5

### Q4 2024 Earnings Call
- **Issued Period:** Q4 2024
- **Guided Period:** Q1 2025 and FY 2025

**Guidance:**
1. **Revenue Guidance:**
   - **Q1 2025:** $1.025 billion to $1.035 billion
   - **FY 2025:** $4.15 billion to $4.20 billion
2. **Earnings Per Share (EPS):**
   - **Q1 2025:** $1.00 to $1.03
   - **FY 2025:** $4.25 to $4.35
3. **Foreign Exchange Impact:**
   - Q1: Tailwind of slightly less than $10 million
   - FY: Tailwind of $30 million
4. **Revenue Growth:**
   - Organic ex-COVID growth of approximately 4% at the midpoint for FY
5. **COVID-19 Related Revenue:**
   - COVID assay sales: $10 million in Q1, $25 million for FY
   - COVID-related items: $24 million in Q1, $95 million for FY
6. **Blood Screening Revenue:**
   - $5 million in Q1, $20 million for FY
7. **Gross Margin and Operating Margin:**
   - **Q1 2025:** Gross margin around 60%, operating margin around 30%
   - Improvement of 50 basis points in gross margin and 50 to 100 basis points in operating margin over the year
8. **Operating Expenses:**
   - Q1 expected to have the highest operating expenses due to seasonal factors
9. **Other Income/Expense:**
   - **Q1 2025:** Expense of $10 million to $15 million
   - **FY 2025:** Expense of $50 million to $60 million
10. **Tax Rate:**
    - Annual effective tax rate of approximately 19.5%
11. **Diluted Shares Outstanding:**
    - Approximately 235 million for FY  **[HOLX_3405607_5]** **[HOLX_3405607_6]** **[HOLX_3405607_7]** .

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q4 2024 and FY 2024

**Guidance:**
1. **Total Revenue:**
   - **Q4 2024:** $970 million to $985 million
   - **FY 2024:** $4.012 billion to $4.027 billion
2. **Earnings Per Share (EPS):**
   - **Q4 2024:** $0.97 to $1.04
   - **FY 2024:** $4.04 to $4.11
3. **Foreign Exchange Impact:**
   - Q4: Headwind of $3 million
   - FY: Tailwind of $3 million
4. **Diagnostics, Breast Health, and Surgical Growth:**
   - Mid-single digits growth in Q4 and FY, excluding COVID impact
5. **COVID Revenue:**
   - COVID assay sales: $7 million in Q4, $70 million for FY
   - COVID-related items: $25 million in Q4, $105 million for FY
6. **Gross Margin:**
   - Expected to exit FY in the low 60s
7. **Operating Margin:**
   - Low 30s for Q4, 30% to 31% for FY
8. **Other Income Net:**
   - Expense of $8 million in Q4, $11 million for FY
9. **Effective Tax Rate:**
   - Approximately 19.75%
10. **Diluted Shares Outstanding:**
    - Approximately 238 million for FY  **[HOLX_3394881_3]** **[HOLX_3394881_1]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** Q3 2024 and FY 2024

**Guidance:**
1. **Total Revenue:**
   - **Q3 2024:** $992.5 million to $1,007.5 million
   - **FY 2024:** $4 billion to $4.05 billion
2. **Earnings Per Share (EPS):**
   - **Q3 2024:** $0.98 to $1.05
   - **FY 2024:** $4.02 to $4.12
3. **FX Headwind:**
   - $3 million for Q3
4. **Gross Margin:**
   - Expected to improve sequentially from Q2
5. **Operating Margin:**
   - Low 30s for Q3, approaching 31% by FY end
6. **Other Income Net:**
   - Expense of $10 million for Q3, $30 million to $40 million for FY
7. **Tax Rate:**
   - Annual effective tax rate of approximately 19.75%
8. **Diluted Shares Outstanding:**
   - Approximately 238 million for FY
9. **Franchise Growth Expectations:**
   - Each franchise to grow 5% to 7% in FY, excluding COVID
   - Molecular Diagnostics to drive high single-digit growth, excluding COVID
   - Surgical revenue growth at high end of 5% to 7% target
10. **COVID-Related Revenue:**
    - COVID assay sales: $5 million to $10 million in Q3, $60 million to $65 million for FY
    - COVID-related items: $25 million in Q3, $105 million for FY  **[HOLX_3382238_7]** **[HOLX_3382238_8]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** Q2 2024 and FY 2024

**Guidance:**
1. **Revenue Guidance:**
   - **Q2 2024:** $990 million to $1.01 billion
   - **FY 2024:** $3.99 billion to $4.065 billion
2. **Earnings Per Share (EPS):**
   - **Q2 2024:** $0.95 to $1.00
   - **FY 2024:** $3.97 to $4.12
3. **Foreign Exchange Impact:**
   - Q2: Tailwind of $2 million
   - FY: Tailwind of $12 million
4. **Operating Margins:**
   - **Q2 2024:** Approaching 30%
   - **Q4 2024 Exit Rate:** Around 31%
5. **Gross Margins:**
   - Similar to Q1, exiting FY in the low 60s
6. **Operating Expenses:**
   - Q2: $300 million to $310 million for the remainder of the year
7. **Other Income/Expense:**
   - **Q2 2024:** Expense of $10 million
   - **FY 2024:** Expense of $30 million to $50 million
8. **Tax Rate:**
   - Annual effective tax rate of approximately 19.75%
9. **Diluted Shares Outstanding:**
   - Approximately 239 million for FY
10. **COVID Revenue:**
    - **Q2 2024:** COVID assay sales of $20 million
    - **FY 2024:** COVID assay sales of $60 million
    - COVID-related items: Slightly less than $30 million in Q2, $105 million for FY  **[HOLX_3371587_3]** **[HOLX_3371587_5]** **[HOLX_3371587_4]** .

9178fc1e06ba518176708e6adb14cc53008959aa81b979ed10aec740c9b36a28

- Roche Diagnostics: Primary competitor in the Diagnostics business  **[0000859737-24-000024_holx-20240928.htm:18]** .
- Becton Dickinson: Primary competitor in the Diagnostics business  **[0000859737-24-000024_holx-20240928.htm:18]** .
- Siemens Healthineers: Primary competitor in the Breast & Skeletal Health business  **[0000859737-24-000024_holx-20240928.htm:18]** .
- GE Healthcare: Primary competitor in the Breast & Skeletal Health business  **[0000859737-24-000024_holx-20240928.htm:18]** .
- Johnson & Johnson: Primary competitor in the GYN Surgical business  **[0000859737-24-000024_holx-20240928.htm:18]** .
- Medtronic: Primary competitor in the GYN Surgical business  **[0000859737-24-000024_holx-20240928.htm:18]** .
- F. Hoffmann-LaRoche Ltd: Parent company of Roche, a supplier and competitor in the Diagnostics business  **[0000859737-24-000024_holx-20240928.htm:48]** .
- GE Healthcare Bio-Sciences Corp.: Supplies membranes for ThinPrep product line and is a competitor in the Breast Health and Skeletal Health businesses  **[0000859737-24-000024_holx-20240928.htm:48]** .

c65814d51c19bfbf876d46a0cb37d6a47a6dd884843d963a0728d24779dff3be

74aee12d697cf24dfdd1722967150ec39b255f0133689db086a1c2dc3dc98a42

| Name                  | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stephen P. MacMillan  | Chairman, President, and CEO                  | December 2013      | Stephen P. MacMillan has been serving as the **Chairman, President, and Chief Executive Officer** of Hologic, Inc. since **December 2013**. He was elected Chairman of the Board in **June 2015**. Prior to Hologic, he held leadership roles at sBioMed, Stryker Corporation, Pharmacia Corporation, and Johnson & Johnson  **[0001140361-24-002733_ny20013458x1_def14a.htm:35]** **[0001140361-23-002129_ny20005403x1_def14a.htm:34]** . |
| Karleen M. Oberton    | Chief Financial Officer                       | August 2018        | Karleen M. Oberton became the **Chief Financial Officer** in **August 2018**. She joined Hologic in 2006 as a corporate controller and was promoted to Chief Accounting Officer in 2015. Before Hologic, she worked at Immunogen and Ernst & Young  **[0001140361-24-002733_ny20013458x1_def14a.htm:53]** .                                                                                 |
| Essex D. Mitchell     | Chief Operating Officer                       | January 1, 2024    | Essex D. Mitchell is the **Chief Operating Officer** at Hologic, Inc., a position he will assume on **January 1, 2024**. He joined Hologic in **September 2017** and has held various roles, including Division President, GYN Surgical Solutions  **[0001140361-24-002733_ny20013458x1_def14a.htm:53]** .                                                                                   |
| Erik S. Anderson      | Division President, Breast and Skeletal Health Solutions | September 2022     | Erik S. Anderson was promoted to **Division President, Breast and Skeletal Health Solutions** in **September 2022**. He joined Hologic in 2014 and has held various roles, including Vice President of Sales for Hologic's Medical Aesthetics business  **[0001140361-24-002733_ny20013458x1_def14a.htm:53]** **[0001140361-23-002129_ny20005403x1_def14a.htm:49]** .                                                                           |
| Peter P. Dunne        | Senior Vice President, Human Resources        | November 2023      | Peter P. Dunne was promoted to **Senior Vice President, Human Resources** in **November 2023**. He joined Hologic in August 2014 as Vice President, Finance and Accounting for the Diagnostics Division  **[0001140361-24-002733_ny20013458x1_def14a.htm:54]** .                                                                                                                             |
| John M. Griffin       | General Counsel                               | February 2015      | John M. Griffin joined Hologic, Inc. as **General Counsel** in **February 2015**. He has nearly 30 years of legal experience and previously worked at Covidien and as an Assistant United States Attorney in Boston  **[0001140361-24-002733_ny20013458x1_def14a.htm:54]** .                                                                                                                 |
| Jennifer M. Schneiders| President, Diagnostic Solutions               | April 2023         | Jennifer M. Schneiders, Ph.D., was promoted to **President, Diagnostic Solutions** in **April 2023**. She joined Hologic in 2008 and has held various roles, including Vice President, Diagnostic Laboratory Solutions  **[0001140361-24-002733_ny20013458x1_def14a.htm:54]** .                                                                                                              |
| Brandon Schnittker    | Division President, GYN Surgical Solutions    | January 1, 2024    | Brandon Schnittker was promoted to **Division President, GYN Surgical Solutions** effective **January 1, 2024**. He joined Hologic in **May 2022** and previously worked at Stryker  **[0001140361-24-002733_ny20013458x1_def14a.htm:54]** .                                                                                                                                                 |
| Jan Verstreken        | Group President, International                | October 2020       | Jan Verstreken has been serving as the **Group President, International** since **October 2020**. He joined Hologic in **January 2017** and has over 25 years of experience, primarily at Teleflex  **[0001140361-24-002733_ny20013458x1_def14a.htm:55]** **[0001140361-23-002129_ny20005403x1_def14a.htm:50]** .                                                                                                                               |

3fda0cbbc71fb8ad68f0be5b37d89d8a6a93c51cdfe82fb1327a5baafefb4654

| Program Details          | Program 1                  | Program 2                  |
|--------------------------|----------------------------|----------------------------|
| Approval Date            | September 22, 2022  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**   | September 12, 2024  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**   |
| End Date/Duration        | Five-year term  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**       | Five-year term  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**       |
| Total additional amount  | $1.0 billion  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**         | $1.5 billion  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**         |
| Remaining authorization  | $190.3 million  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**       | $1.5 billion  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**         |
| Details                  | N/A                        | Entire authorization unused  **[0000859737-24-000024_holx-20240928.htm:86]** **[0000859737-24-000024_holx-20240928.htm:63]**  |

b1fa478fff56cf4860cf500d7d74bf004ed25c6a8166c890a26ab7988d319f23

600ef92f6391a25c52224394d186b450e77ced9216b4411dd1edc7413e0b37c9

**Quarterly guidance for Q1 2025:**
- **Total Revenue**: $1.025 billion to $1.035 billion  **[HOLX_3405607_6]**  (no change from $1.025 billion to $1.035 billion  **[HOLX_3405607_7]** )  
- **Non-GAAP EPS**: $1.00 to $1.03  **[HOLX_3405607_6]**  (no change from $1.00 to $1.03  **[HOLX_3405607_7]** )  
- **COVID Assay Sales**: Approximately $10 million  **[HOLX_3405607_6]**  (no change from $10 million  **[HOLX_3405607_7]** )  
- **COVID-Related Items**: Approximately $24 million  **[HOLX_3405607_6]**  (no change from $24 million  **[HOLX_3405607_7]** )  
- **Blood Screening Revenue**: Approximately $5 million  **[HOLX_3405607_6]**  (no change from $5 million  **[HOLX_3405607_7]** )  
- **Gross Margin**: Around 60%  **[HOLX_3405607_6]**  (no change from around 60%  **[HOLX_3405607_7]** )  
- **Operating Margin**: Around 30%  **[HOLX_3405607_6]**  (no change from around 30%  **[HOLX_3405607_7]** )  
- **Other Income (Net)**: Expense of $10 million to $15 million  **[HOLX_3405607_6]**  (no change from $10 million to $15 million  **[HOLX_3405607_7]** )  
- **Effective Tax Rate**: Approximately 19.5%  **[HOLX_3405607_6]**  (no change from 19.5%  **[HOLX_3405607_7]** )  
- **Diluted Shares Outstanding**: Approximately 235 million  **[HOLX_3405607_6]**  (no change from 235 million  **[HOLX_3405607_7]** )  

**Annual guidance for FY 2025:**
- **Total Revenue**: $4.15 billion to $4.20 billion  **[HOLX_3405607_6]**  (no change from $4.15 billion to $4.20 billion  **[HOLX_3405607_7]** )  
- **Non-GAAP EPS**: $4.25 to $4.35  **[HOLX_3405607_6]**  (no change from $4.25 to $4.35  **[HOLX_3405607_7]** )  
- **COVID Assay Sales**: Approximately $25 million  **[HOLX_3405607_6]**  (no change from $25 million  **[HOLX_3405607_7]** )  
- **COVID-Related Items**: Approximately $95 million  **[HOLX_3405607_6]**  (no change from $95 million  **[HOLX_3405607_7]** )  
- **Blood Screening Revenue**: Approximately $20 million  **[HOLX_3405607_6]**  (no change from $20 million  **[HOLX_3405607_7]** )  
- **Gross Margin**: Expected improvement of roughly 50 basis points over the course of the year  **[HOLX_3405607_6]**  (no change from 50 basis points  **[HOLX_3405607_7]** )  
- **Operating Margin**: Expected improvement of 50 to 100 basis points over the course of the year  **[HOLX_3405607_6]**  (no change from 50 to 100 basis points  **[HOLX_3405607_7]** )  
- **Other Income (Net)**: Expense of $50 million to $60 million  **[HOLX_3405607_6]**  (no change from $50 million to $60 million  **[HOLX_3405607_7]** )  
- **Effective Tax Rate**: Approximately 19.5%  **[HOLX_3405607_6]**  (no change from 19.5%  **[HOLX_3405607_7]** )  
- **Diluted Shares Outstanding**: Approximately 235 million  **[HOLX_3405607_6]**  (no change from 235 million  **[HOLX_3405607_7]** )  
- **Foreign Exchange Tailwind**: Slightly less than $30 million  **[HOLX_3405607_6]**  (lowered from $30 million  **[HOLX_3405607_7]** )  
- **Organic Revenue Growth (Excluding COVID)**: Approximately 4% at the midpoint  **[HOLX_3405607_6]**  (no change from 4%  **[HOLX_3405607_7]** )  

9ffa89c367b24e62c5eb2f7ed5529af137d330005352c20338cb6bacdd5feb60

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0000859737-24-000024_holx-20240928.htm:123]**  | Present  | Current auditor   |

ecff00e7e430cc921050d32cc060de86431572e29557ee09e4697954dc63ace4

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

1. **4Q Guidance and Skeletal Health**  
   **Q:** Has anything changed in the core business outlook for 4Q?  
   **A:** The guidance reduction is entirely due to a temporary issue in our non-core Skeletal Health business, specifically a **$16 million** headwind in Q4 from a supplier issue. Our core businesses—Diagnostics, Breast Health, and Surgical—are performing well, and we feel really good about them.  **[HOLX_3394881_3]** 

2. **Margin Outlook into 2025**  
   **Q:** How are margins expected to trend going forward?  
   **A:** We expect full-year operating margins between **30% to 31%** in 2024, slightly below pre-pandemic levels of **31.5%**, due to recent acquisitions and higher supply chain costs. By exiting Q4, we'll be around **31.5%**, and we have confidence that margins in 2025 will return to pre-pandemic levels as these issues are resolved.  **[HOLX_3394881_3]** 

3. **EPS Growth Expectations**  
   **Q:** Is high single-digit EPS growth reasonable for next year?  
   **A:** While we're not providing 2025 guidance yet, we aim to grow earnings faster than revenue. With **5% to 7%** revenue growth, high single-digit to low double-digit EPS growth is reasonable. We'll achieve this through margin expansion, share repurchases, and potential tax rate favorability.  **[HOLX_3394881_3]** 

4. **Recent Acquisitions Progress**  
   **Q:** Can you update on Boulder and Endomag integrations?  
   **A:** We're seeing great success with Boulder, expanding beyond pediatrics into fast-growing areas like thoracic surgery. With Endomag, we just closed the acquisition and are excited about its prospects, leveraging our strong channels and customer relationships to grow the business.  **[HOLX_3394881_3]** 

5. **Panther System Placements**  
   **Q:** Are Panther placements returning to pre-COVID levels?  
   **A:** Panther placements remain below pre-COVID levels, but we're seeing modest increases, which we consider positive. Our focus is on expanding utilization of existing systems rather than high placement rates.  **[HOLX_3394881_3]** 

6. **BV/CV/TV Assay Growth**  
   **Q:** How significant is the BV/CV/TV assay revenue, and what's its potential?  
   **A:** The BV/CV/TV assay revenue is roughly **$40 million** per quarter, and it has the potential to become our largest assay, indicating significant growth ahead.  **[HOLX_3394881_3]** 

7. **Skeletal Health Revenue Impact**  
   **Q:** Will delayed Skeletal Health revenue be recovered next year?  
   **A:** The delayed revenue isn't lost; we expect to recover it, possibly providing a modest tailwind in fiscal 2025. We anticipate resolving the issue and resuming normal operations by the beginning of fiscal 2025.  **[HOLX_3394881_3]** 

8. **Cytology Business Dynamics**  
   **Q:** What's causing lumpiness in the cytology business?  
   **A:** The lumpiness is due to a change in a third-party vendor last year affecting comparisons, but there are no market shifts in cytology usage. Our digital cytology is progressing well, especially in Europe, with positive acceptance in the U.S.  **[HOLX_3394881_3]** 

9. **Panther Assay Utilization**  
   **Q:** How many assays are customers running on Panthers?  
   **A:** Over **55%** of new customers run two or more assays. In the U.S., over **one-third** of customers run four or more assays, up from under **20%** in 2019. The likely target range is **4 to 6** assays per Panther.  **[HOLX_3394881_3]** 

10. **International Cytology Growth**  
    **Q:** What's driving cytology growth outside the U.S.?  
    **A:** Strong acceptance of our digital cytology is driving growth internationally, especially where there are fewer cytologists. Our strengthened relationships with health ministries are helping us influence guidelines, such as Germany's adoption of co-testing for cytology and HPV.  **[HOLX_3394881_3]** 

11. **Tax Rate Optimization**  
    **Q:** How do you plan to lower the tax rate?  
    **A:** By optimizing our operations and supply chain, particularly leveraging manufacturing in Costa Rica and integrating new acquisitions, we aim to contribute to a favorable impact on our tax rate over time.  **[HOLX_3394881_3]** 

5ecec383487465fc37d3926341afe858ffdb0068e963401498c22e8de35d032b

5d24bfdda4cf8cb156a4639a8698388b4987225c8556879e8a46af16e1a8baf7

046f19358506c7ec97b4a2abf58381827636c3459d8252929e35fe18eb5c274b

- **Leading-edge AI capabilities in Breast Health**, especially with the **Genius AI detection program**, positioning the company ahead of competitors in workflow advantages and product integration.  **[HOLX_3371587_25]**
- **Strong double-digit international growth** for the past **5-6 years**, with Breast Health revenue increasing by **33% in constant currency**, contributing significantly to overall growth.  **[HOLX_3371587_25]** **[HOLX_3371587_21]**
- Strategic focus on improving **international margins** by disciplined cost management and moving to **direct sales in key markets**, which is **typically accretive to the margin line**.  **[HOLX_3371587_21]**

b2edd62199a0b70858f2c85074000a7182de69672f799568707c8480d0b614dc

1. **Margin Outlook**  
   **Q:** Should we expect operating margins to expand to 31% and beyond?  
   **A:** Management expects to exit the year with operating margins around **31%**.  **[HOLX_3371587_7]**  Gross margin headwinds from gantry chips and network optimization efforts amount to **50 to 75 basis points**.  **[HOLX_3371587_7]**  They foresee improvements over the course of the year but caution against significant gains in fiscal '25, aiming to continue investing appropriately in R&D and innovation.  **[HOLX_3371587_7]** 

2. **Business Segment Growth**  
   **Q:** Which segments are driving sustainable growth, and at what rates?  
   **A:** Each business segment is expected to grow within the **5% to 7%** range this year.  **[HOLX_3371587_13]**  Internationally, segments are at the higher end or slightly beyond that range.  **[HOLX_3371587_13]**  In Surgical, **MyoSure** and **Fluent** are growing faster, while **NovaSure** is growing slower.  **[HOLX_3371587_13]** 

3. **M&A Strategy and Deal Size**  
   **Q:** Are you open to larger M&A deals, and what are your priorities?  
   **A:** They are open to larger deals in the **$1 billion-plus** range if they bring significant revenue and EBITDA.  **[HOLX_3371587_24]**  The focus is on established, profitable businesses, avoiding early-stage or unprofitable projects.  **[HOLX_3371587_24]**  Opportunities exist in med tech areas like surgical platforms and breast health.  **[HOLX_3371587_10]** 

4. **Breast Health Backlog**  
   **Q:** What's the status of the Breast Health backlog and future expectations?  
   **A:** The Breast Health business has several quarters of backlog, likely extending into early **2025** at elevated levels.  **[HOLX_3371587_11]**  Elevated backlog is expected for the next **3 to 5 quarters** as they supply gantries to customers.  **[HOLX_3371587_11]** 

5. **International Growth and Margins**  
   **Q:** How are international growth and margins trending, and any efforts to improve them?  
   **A:** International growth is strong, with **double-digit increases** over the past 5 to 6 years.  **[HOLX_3371587_25]**  While international revenue has lower margins, they're improving margins through selective pricing and cost discipline.  **[HOLX_3371587_21]**  Going direct in key markets enhances revenue and is typically accretive to margins.  **[HOLX_3371587_21]** 

6. **Market Expansion Amid Competition**  
   **Q:** How are you expanding markets in competitive areas like viral load and STI testing?  
   **A:** Despite strong competitors, significant opportunities exist to expand markets.  **[HOLX_3371587_22]**  Products like **BV/CV** may become their largest assay.  **[HOLX_3371587_22]**  With only **10%** of women globally tested for STIs, there's substantial market potential.  **[HOLX_3371587_22]** 

7. **CapEx Environment Impact**  
   **Q:** What's your outlook on customer CapEx spending and its impact on sales?  
   **A:** They feel positive about the CapEx environment, not seeing dramatic changes affecting their business.  **[HOLX_3371587_19]**  Their equipment isn't a major component of hospital CapEx budgets, making them less vulnerable to fluctuations.  **[HOLX_3371587_19]** 

8. **Molecular Diagnostics Outlook**  
   **Q:** Has growth in Molecular Diagnostics ex-COVID slowed, and what's the outlook?  
   **A:** Growth appeared to slow due to **four fewer selling days**, reducing the growth rate by **4 to 6 percentage points**.  **[HOLX_3371587_15]**  They remain confident in the overall run rate and size of the business.  **[HOLX_3371587_15]** 

9. **Impact of Fewer Selling Days**  
   **Q:** How did fewer selling days affect your quarterly results?  
   **A:** The **four fewer selling days** significantly impacted disposable run-rate businesses, lowering growth rates by **4 to 6 percentage points**.  **[HOLX_3371587_15]** 

10. **Tax Rate Outlook**  
    **Q:** How will the global minimum tax and R&D tax credit affect your tax rate?  
    **A:** The global minimum tax won't impact them until fiscal **2026**.  **[HOLX_3371587_17]**  Since their tax rate is already over **15%**, the effect is expected to be minimal.  **[HOLX_3371587_17]**  Changes in R&D amortization are minimally favorable but have a minimal overall impact.  **[HOLX_3371587_17]** 

11. **New Product Approvals Impact**  
    **Q:** What is the impact of new product approvals like the Genius Digital DX system?  
    **A:** The **Genius Digital DX system** improves workflow without significant changes to pricing or margins.  **[HOLX_3371587_16]**  Customers are excited due to labor-saving benefits, and it's driving growth internationally, especially in Europe.  **[HOLX_3371587_16]**  The approval of digital cytology is seen as a substantial advancement in **40 years**.  **[HOLX_3371587_6]** 

12. **Interest Expense Increase**  
    **Q:** How will the expiration of the interest rate hedge affect interest expense?  
    **A:** With the expiration of a favorable interest rate hedge, weighted average cost of debt will increase by about **100 basis points**, leading to interest expense exceeding interest income by **$30 million to $50 million** for the year.  **[HOLX_3371587_20]** 

13. **Biotheranostics Growth Potential**  
    **Q:** What's the growth outlook for Biotheranostics' Breast Cancer Index test?  
    **A:** They see significant long-term potential, considering themselves in the early innings.  **[HOLX_3371587_9]**  Growth remains accretive and is still progressing nicely.  **[HOLX_3371587_9]** 

14. **Panther Utilization Growth**  
    **Q:** How is Panther utilization trending among customers?  
    **A:** **Panther utilization is growing** year-over-year.  **[HOLX_3371587_8]**  Customers running **four or more assays** have nearly doubled from **20% in 2019 to close to 40% at the end of '23**.  **[HOLX_3371587_8]** 

d34d2cac362ec9a5038b4c01278f96844fc7a53cfbe4a1b5184a7f700d62f597

| Year | Amount Due (in millions) | Debt Type       | Interest Rate | % of Total Debt |
|------|--------------------------|-----------------|---------------|-----------------|
| 2025 | $37.5                    | Term Loan       | 5.96%         | 1.5% = (37.5 / 2,547.5) * 100 **[0000859737-24-000024_holx-20240928.htm:160]** **[0000859737-24-000024_holx-20240928.htm:84]** |
| 2026 | $1,160.0                 | 2021 Term Loan  | 5.96%         | 45.5% = (1,160.0 / 2,547.5) * 100 **[0000859737-24-000024_holx-20240928.htm:160]** **[0000859737-24-000024_holx-20240928.htm:84]** |
| 2028 | $400.0                   | 2028 Senior Notes| 4.625%       | 15.7% = (400.0 / 2,547.5) * 100 **[0000859737-24-000024_holx-20240928.htm:160]** **[0000859737-24-000024_holx-20240928.htm:85]** **[0000859737-24-000024_holx-20240928.htm:164]** |
| 2029 | $950.0                   | 2029 Senior Notes| 3.250%       | 37.3% = (950.0 / 2,547.5) * 100 **[0000859737-24-000024_holx-20240928.htm:160]** **[0000859737-24-000024_holx-20240928.htm:85]** **[0000859737-24-000024_holx-20240928.htm:164]** |

26358cda95c2238150d75225c2344d7c97d63ac1834c9a8f1a1a79631df7bc20

- **Operational challenges in the Skeletal Health division**: Hologic is experiencing supply chain issues due to a supplier nonconformance, leading to a temporary stop ship of products in its smallest business segment. This may result in delayed or lost revenue and uncertainty regarding the recovery timeline.  **[HOLX_3394881_26]** ,  **[HOLX_3394881_10]** ,  **[HOLX_3394881_17]**
- **Increased competition in molecular diagnostics**: Emerging point-of-care platforms, particularly in sexual health and virology, are seeing strong growth. This increased competition may impact Hologic's market share and growth prospects in these areas.  **[HOLX_3394881_15]**
- **Slower placement of Panther instruments**: Panther instrument placements remain below pre-pandemic levels, indicating a potential slowdown in instrument sales growth. This could limit future revenue expansion and increase reliance on the existing installed base for growth.  **[HOLX_3394881_8]**

e6359a72f1eaf0ecaa9454d159b72ba951592e43510114b682da233dc0df9b62

- **Increased utilization of Panther instruments with a long growth runway ahead.** Since April 2020, over **90%** of new Panther customers are running at least one additional assay, and over **55%** are running at least two additional assays, demonstrating the value and workflow advantages of the Panther system and indicating significant potential to drive further utilization of the installed base.  **[HOLX_3382238_23]**
- **Significant international growth opportunities through market development and direct sales strategies.** Hologic is focusing on international expansion, particularly for assays like BV/CV/TV, which have strong momentum in the U.S. but minimal international contribution so far, representing a longer-term growth opportunity. Additionally, by transitioning from distributors to direct sales in international markets, Hologic expects to improve margins and outcomes due to enhanced market development and access capabilities.  **[HOLX_3382238_18]** **[HOLX_3382238_19]**
- **Strategic acquisition of Endo-Mag to enhance the interventional breast portfolio and accelerate growth.** The acquisition is expected to be **accretive to the division's growth rate**, leveraging Hologic's significant direct sales force in the U.S. as a differentiator, and fitting nicely with the existing interventional portfolio.  **[HOLX_3382238_11]**

1cf3963355e14cd1ad14d338bfd94adcd711edfe65465fa7ba08f25e817d6283

- **International revenue remains dilutive to gross and operating margins**: Despite strong international growth, management acknowledged that international revenue is **inherently lower margin** and **dilutive to gross margin and operating margin**, impacting overall profitability.  **[HOLX_3371587_21]**
- **Interest expense is expected to increase**: The company anticipates a **100 basis point increase in weighted average cost of debt** due to the expiration of a favorable interest rate hedge, leading to higher interest expense of **approximately $30 million to $50 million for the full year**, which could negatively affect net income.  **[HOLX_3371587_20]**
- **Revenue growth may slow due to tough comparisons**: Guidance for Q2 indicates an **organic revenue growth of about 3.5%**, down from 5% in Q1, primarily due to **tough comparisons with an exceptionally strong prior-year quarter**, suggesting potential **slower near-term revenue growth**.  **[HOLX_3371587_14]**

d51711f0bef3a71f23ea23a035050f081e27db4e9a446df8a08a715000d0cbcd

- **Anticipated Transitory Headwinds in Early Fiscal 2025**: Hologic expects several temporary challenges in Q1 and potentially into Q2 of fiscal 2025, including issues with the skeletal business resuming shipments later in Q1, conservative expectations on respiratory products, and **IV fluid shortages due to hurricanes** impacting the **surgical and breast businesses**. These factors are expected to result in lower growth rates in the first half of the year.  **[HOLX_3405607_13]**
- **Potential Cannibalization from Gynasonix Acquisition**: Analysts have raised concerns that the acquisition of Gynasonix and its **Sonata system** might cannibalize sales of Hologic's existing **MyoSure** product. While the company asserts that Sonata targets different types of fibroids, there is a risk of overlap that could erode sales of existing products.  **[HOLX_3405607_20]**
- **Slowing Growth Rates for Key Assays Due to Increasing Base**: The **BV/CV/TV assay**, one of Hologic's largest assays generating **several hundred million dollars** in revenue, is expected to experience a **lower growth rate in fiscal 2025** due to an increasing base, which may impact overall revenue growth.  **[HOLX_3405607_10]**

52bbfde7e34e79d995a360e5bee35946d51d525e2160c7b43c12d62995b2a4ad

1. **Capital Allocation Priorities**  
   **Q:** How are you prioritizing capital allocation amid share repurchases and M&A?  
   **A:** Management aims to pursue acquisitions like **Endo-Mag**, targeting deals around **$300 million** on a regular basis.  **[HOLX_3382238_10]** **[HOLX_3382238_21]**  They emphasized flexibility to conduct share buybacks and maintain a strong balance sheet, enabled by ongoing cash flow generation.  **[HOLX_3382238_10]**  While the ideal is consistent acquisitions and some buybacks, they acknowledge the real world isn't linear and remain comfortable amassing cash for future opportunities.  **[HOLX_3382238_10]** 

2. **Endomag Acquisition Rationale**  
   **Q:** What's the strategic rationale for acquiring Endomag now?  
   **A:** The acquisition aligns with Hologic's strategy to expand across the breast care continuum, particularly into interventional techniques.  **[HOLX_3382238_21]**  They've been tracking **Endomag** for some time and seized the opportunity when it became available.  **[HOLX_3382238_21]**  The asset fits well with their existing portfolio, leveraging their significant direct sales force in the U.S., and is expected to be **accretive** to the division's growth rate.  **[HOLX_3382238_11]** 

3. **Guidance Tightening vs. Raising**  
   **Q:** Given strong performance, why tighten rather than raise guidance?  
   **A:** The impact on full-year guidance is primarily related to currency fluctuations.  **[HOLX_3382238_14]**  On a constant currency basis, the midpoint of the guidance is **up slightly**.  **[HOLX_3382238_14]**  Management prefers to tighten the range to hone in on delivering within it without getting ahead of themselves.  **[HOLX_3382238_14]** 

4. **Diagnostics Market Strength**  
   **Q:** What drives the continued strength in Molecular Diagnostics?  
   **A:** The strong performance is attributed to widespread placement of **Panther** systems during COVID-19, nearly doubling worldwide placements.  **[HOLX_3382238_9]**  The Panther's automation, extensive assay menu, compact footprint, and addition of the **Fusion sidecar** have led to increased adoption and utilization.  **[HOLX_3382238_9]**  Customers are adding more tests to their Panthers, validating the company's long-term strategy.  **[HOLX_3382238_9]** 

5. **Future Growth Expectations**  
   **Q:** Could growth exceed the long-range plan in fiscal '25?  
   **A:** Management declined to provide specific guidance for fiscal '25 at this time.  **[HOLX_3382238_17]**  They are focused on delivering current results and investing for future growth, with more details to be shared in the November call.  **[HOLX_3382238_17]** 

6. **International Margin Expansion**  
   **Q:** How will you drive margin expansion internationally?  
   **A:** Strategies include going **direct** in more markets, improving outcomes through better market development and access capabilities.  **[HOLX_3382238_19]**  Investments over the past five years in commercial infrastructure are reaching a leverage point.  **[HOLX_3382238_19]**  Additionally, the **Surgical** portfolio, being accretive to margins, will contribute to overall margin improvement.  **[HOLX_3382238_19]** 

7. **Competitive Position in Diagnostics**  
   **Q:** How do you view competitive dynamics in Molecular Diagnostics?  
   **A:** Hologic focuses on building their business by serving customers and growing categories rather than on market share.  **[HOLX_3382238_16]**  They've expanded their respiratory menu and added the **Fusion sidecar**, strengthening offerings in reference labs, hospital systems, and public health labs.  **[HOLX_3382238_16]**  They believe they have economic and workflow advantages, along with superior assay sensitivity and specificity.  **[HOLX_3382238_16]** 

8. **Breast Health Impact from USPSTF Guidelines**  
   **Q:** How will new mammography guidelines affect your Breast Health business?  
   **A:** Management does not expect significant impact since the **USPSTF** remains in the biannual screening world.  **[HOLX_3382238_12]**  Breast Health is a capital sale and less volume-dependent, so changes in screening frequency have minimal effect.  **[HOLX_3382238_12]**  They see the guidelines as a step forward for women but note they don't go far enough for women over 74.  **[HOLX_3382238_12]** 

9. **Genius Digital Cytology Feedback**  
   **Q:** What's the early feedback on the Genius Digital Cytology system?  
   **A:** The system was recently approved in the U.S., and the company is partnering with lab customers on implementation and workflow integration.  **[HOLX_3382238_15]**  There's excitement about its potential in a **labor-constrained environment**, but minimal contribution is expected in fiscal '24.  **[HOLX_3382238_15]** 

10. **Panther System Utilization**  
    **Q:** How is assay utilization trending on the Panther system?  
    **A:** Since 2019, the percentage of customers running four or more assays increased from about **20%** to nearly **40%** by 2022.  **[HOLX_3382238_23]**  For Panthers placed since April 2020, over **90%** of new customers run at least one other assay, and over **55%** run at least two other assays.  **[HOLX_3382238_23]**  This reflects the value and workflow efficiency customers find with the Panther system.  **[HOLX_3382238_23]** 

11. **International BV/CV/TV Opportunity**  
    **Q:** What's the growth potential for BV/CV/TV assays internationally?  
    **A:** The company is at early stages internationally, with the market and indications not fully developed.  **[HOLX_3382238_18]**  It's seen as a longer-term market development opportunity with minimal near-term expectations.  **[HOLX_3382238_18]**  However, there's strong momentum in the **U.S. market**.  **[HOLX_3382238_18]** 

12. **Breast Health Equipment Lifecycle**  
    **Q:** How will you monetize upgrade opportunities in Breast Health devices?  
    **A:** Hologic has been intentional in smoothing out the business and moving away from boom-bust replacement cycles.  **[HOLX_3382238_22]**  They offer backward-compatible software and upgrades, allowing customers to improve systems without waiting for next-gen gantries.  **[HOLX_3382238_22]**  New developments are in progress to be discussed, likely in **2025**.  **[HOLX_3382238_22]** 

13. **International Growth Drivers**  
    **Q:** What regions or products are driving international growth?  
    **A:** Growth comes from a mix of products in various countries, particularly in the **Surgical** and **Interventional** spaces.  **[HOLX_3382238_20]**  Acquisitions like their distributor in the **Nordics** enhance direct sales efforts.  **[HOLX_3382238_20]**  Success is built on incremental expansion and reinvestment across geographies and products.  **[HOLX_3382238_20]** 

14. **HPV Primary Screening Trial Design**  
    **Q:** What's needed to establish an HPV primary screening claim?  
    **A:** The company is focused on maintaining **co-testing** as the gold standard.  **[HOLX_3382238_13]**  They note a modest uptick in cervical cancer coinciding with extended screening intervals, reinforcing belief in co-testing.  **[HOLX_3382238_13]**  There are no immediate plans to pursue HPV primary screening claims.  **[HOLX_3382238_13]** 

790023f8e5dd03e716ceb1049c7616fd5d759528e00bb4a8d23c823f5fd06173

1. **Margin Outlook**  
   **Q:** How will margins trend this year amid headwinds?  
   **A:** Management expects margins to face headwinds in the first half due to the **IV fluid shortage** impacting their most profitable surgical business and other transitory factors. However, they anticipate margin expansion in the back half of the year as these issues are resolved and benefits from network optimization initiatives materialize. They provided a full-year revenue guidance midpoint of **4% growth** and anticipate accelerated growth in the latter half, which will help drive margin expansion.  **[HOLX_3405607_8]** ,  **[HOLX_3405607_13]** 

2. **IV Fluid Shortage Impact**  
   **Q:** How will the IV fluid shortage affect your businesses?  
   **A:** The **IV fluid shortage**, resulting from hurricane impacts, is expected to be a headwind in Q1 and possibly into Q2, particularly affecting the surgical and breast businesses that require these fluids. This shortage is considered transitory, and management believes it will be resolved over the course of the year, potentially turning from a headwind into a tailwind as procedures are rescheduled.  **[HOLX_3405607_8]** ,  **[HOLX_3405607_13]** ,  **[HOLX_3405607_14]** ,  **[HOLX_3405607_15]** 

3. **Skeletal Health Headwinds**  
   **Q:** Is skeletal health still a headwind in fiscal '25?  
   **A:** Yes, the skeletal health business is experiencing a stop ship situation, roughly impacting revenues by **$5 million per month**. Management expects shipments to resume in the latter half of Q1, making it a headwind in the first half. This transitory issue contributes to lower growth early in the year but is anticipated to improve as the year progresses.  **[HOLX_3405607_13]** ,  **[HOLX_3405607_15]** 

4. **Guidance vs. Long-Range Plan**  
   **Q:** How does the guidance bridge to the 5–7% LRP target?  
   **A:** The full-year guidance of **3.4% to 4.7%** ex-COVID growth reflects transitory headwinds in the first half, including the skeletal health stop ship, IV fluid shortages, and conservative estimates for respiratory products. As these issues are resolved, management expects accelerated revenue growth in the back half, aligning with their long-range plan of **5–7% growth**.  **[HOLX_3405607_13]** 

5. **Breast Health Outlook**  
   **Q:** What's the outlook for Breast Health with the new gantry launch?  
   **A:** The new gantry is expected to impact revenues more significantly in fiscal years **'26 to '28**. This year might see a slight slowdown in gantry sales prior to the launch. However, growth will be supported by the service business, interventional products, and acquisitions like Endomag. Management anticipates normalized growth rates in '25, with a steady replacement cycle rather than a significant surge of upgrades.  **[HOLX_3405607_9]** ,  **[HOLX_3405607_12]** ,  **[HOLX_3405607_24]** ,  **[HOLX_3405607_27]** 

6. **Share Repurchase Program**  
   **Q:** Will the $250 million share repurchase occur in one quarter?  
   **A:** The company plans to initiate the **$250 million** share repurchase program in the next couple of weeks and expects to complete it within the fiscal second quarter, providing a prorated benefit in fiscal 2025.  **[HOLX_3405607_16]** 

7. **Biotheranostics Growth**  
   **Q:** What's the growth outlook for Biotheranostics and key assays?  
   **A:** **BV/CV/TV assays**, their second-largest assay generating several hundred million dollars in revenue, are expected to continue growing at double-digit rates in '25, though slightly lower due to an increasing base. **Biotheranostics** is closer to the **$100 million-plus** level, also achieving solid double-digit growth in '24 and expected to maintain similar growth in '25. Management believes Biotheranostics is still in the early stages with low market penetration, indicating significant growth potential ahead.  **[HOLX_3405607_10]** ,  **[HOLX_3405607_29]** 

8. **Panther Placements and Utilization**  
   **Q:** How are Panther placements and assay utilization trending?  
   **A:** The installed base has grown to over **3,300 Panthers worldwide**, significantly higher than pre-pandemic levels. While placements have slowed, there's no negative impact on business growth. The focus is now on driving assay adoption and utilization without needing to place many new Panthers, which is beneficial for capital efficiency. Trends in customers running multiple assays continue to improve.  **[HOLX_3405607_22]** ,  **[HOLX_3405607_23]** 

9. **Conservative Respiratory Outlook**  
   **Q:** What's your outlook for respiratory products?  
   **A:** Management is taking a conservative stance due to the unpredictability of flu seasonality. The transition to the respiratory panel contributed several tens of millions of dollars in revenue in '24, but they don't expect another transition year, making it a headwind in the first half. This conservatism could represent a headwind of at least **$10 to $20 million**.  **[HOLX_3405607_11]** ,  **[HOLX_3405607_13]** ,  **[HOLX_3405607_15]** 

10. **M&A and Capital Allocation**  
    **Q:** What are your capital allocation priorities in 2025?  
    **A:** The company continues to pursue a balanced approach between M&A and share repurchases. M&A efforts are driven within each division, focusing on assets that complement their portfolios and where Hologic brings expertise, as seen with acquisitions like Endomagnetics and Gynasonix. There's no specific priority among divisions, and they expect similar capital allocation patterns in 2025 as seen in 2024.  **[HOLX_3405607_21]** 

11. **NovaSure Decline in U.S.**  
    **Q:** Can the decline of NovaSure in the U.S. be stabilized?  
    **A:** **NovaSure** volumes in the U.S. are experiencing a slow decline due to alternatives like IUDs and hormonal treatments for abnormal uterine bleeding. While the company maintains market share, they expect this trend to continue. However, international sales are expanding with a strong growth rate, helping offset the U.S. decline and allowing the overall business to post market-leading results.  **[HOLX_3405607_19]** 

12. **Gynasonix Acquisition**  
    **Q:** How does Gynasonix fit into your portfolio?  
    **A:** The Gynasonix acquisition complements their existing GYN Surgical portfolio, aligning with procedures their surgical team handles daily. The **Sonata system** addresses different types of fibroids than their current products, filling a gap between Accesa and MyoSure without cannibalizing existing products. This addition strengthens their offerings in treating fibroids across various types.  **[HOLX_3405607_12]** ,  **[HOLX_3405607_20]** 

13. **Tax Rate Outlook**  
    **Q:** Is there upside to the 19.5% tax rate guidance for '25?  
    **A:** The projected effective tax rate for fiscal '25 is **19.5%**, down 25 basis points from fiscal '24, primarily due to limiting foreign losses that weren't deductible. While they are always exploring opportunities to drive the rate lower, management is not committing to a rate below 19.5% at this time.  **[HOLX_3405607_18]** 

14. **International Growth and Margins**  
    **Q:** How will international growth impact margins?  
    **A:** International business is expected to grow at a faster rate than the domestic business. While international growth can be dilutive to margins, the company anticipates operating margin improvement, starting at **30%** and expecting an increase of **50 to 100 basis points** over the course of '25. They balance margin improvement initiatives with the understanding that international growth brings its own leverage opportunities.  **[HOLX_3405607_17]** ,  **[HOLX_3405607_28]** 

15. **Chip Shortage Resolution**  
    **Q:** Have you moved past the higher cost of chips?  
    **A:** The company is likely on the tail end of dealing with higher chip costs. There may still be a few components working through the system, but they expect to move past this issue as they progress through fiscal '25. This should favorably impact margins over time.  **[HOLX_3405607_25]** 

16. **Skeletal Health Recovery**  
    **Q:** Will you recoup lost Skeletal Health sales in fiscal '25?  
    **A:** While focused on resuming shipments and meeting customer demand, management is not projecting a significant recoupment of the **$15 million per quarter** lost during the stop ship period. The priority is restoring the business rather than expecting immediate sales recovery on top of base expectations.  **[HOLX_3405607_26]** 

17. **Facility Integration Benefits**  
    **Q:** How will facility integrations impact margins?  
    **A:** The integration within the Breast Health business is expected to be completed over the course of the year, bringing manufacturing and R&D together for synergies. Management anticipates this will contribute to margin improvements as they progress through fiscal '25, though they haven't provided specific figures.  **[HOLX_3405607_24]** 

c0a6d09f83f79040b225c9e1adf505765a13f2e934b62835068c0b3c39f95bbe

- **Hologic's Molecular Diagnostics segment, excluding COVID assays, grew 10.5% in Q3**, demonstrating strong performance driven by the Panther platform and increasing utilization of their assay menu, particularly in sexual health and virology testing.  **[HOLX_3394881_15]**
- **Significant international growth opportunities** are evident, with expanding adoption of digital cytology and HPV co-testing, especially in countries like Germany, leveraging enhanced relationships with ministries of health to drive market expansion.  **[HOLX_3394881_3]** **[HOLX_3394881_13]**
- Despite a temporary issue in Skeletal Health, **Hologic's core businesses—Diagnostics, Breast Health, and Surgical—are performing strongly**, with expectations to return to pre-pandemic gantry placement levels in Breast Health by **2025**, indicating robust future growth.  **[HOLX_3394881_25]** **[HOLX_3394881_4]**

00c43798099ad59c54c80b0450ab74e25063b67c301d8f1e68959a11ff5c4be5

- **Limited near-term international growth opportunities for the BV/CV/TV assay**, as the market is underdeveloped and the company has **minimal expectations** internationally in the near term.  **[HOLX_3382238_18]**
- **Full-year guidance was not raised despite exceeding expectations**, due to currency headwinds, indicating potential caution about future performance.  **[HOLX_3382238_14]**
- **Increased competition from larger peers** in the market could impact Hologic's market share and growth in certain segments.  **[HOLX_3382238_16]**

fe90fea71783b5d70b63f0e192363b8034072a6c9b25217f5980bf20cd1e0cd4

- **Hologic's acquisition of Gynasonix adds the Sonata system, which fills the gap between their Accesa and MyoSure products by targeting different types of fibroids, thus enhancing their GYN Surgical portfolio.**  **[HOLX_3405607_20]**
- **With over 3,300 Panther systems installed worldwide, significantly higher than before the pandemic, Hologic's molecular diagnostics revenue excluding COVID grew 9% in fiscal '24**, driven by increased assay adoption despite slower Panther placements.  **[HOLX_3405607_22]**
- **Key growth drivers such as the BV/CV/TV assays, now their second largest assay generating several hundred million dollars in revenue, and Biotheranostics with over $100 million in revenue, are expected to continue strong double-digit growth in fiscal '25.**  **[HOLX_3405607_10]**

3ed2b2482bef8f95184ee0cd371accda2f75d709a24cfd0d1823c4eb5f7323e5

Hologic Inc (HOLX)

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