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QuidelOrtho Corp (QDEL)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 2026 results and materials (8‑K 2.02, press release, transcript) were not yet available; the latest reported quarter is Q3 2025, where revenue was $700M, adjusted EBITDA margin reached 25%, and non‑respiratory revenue grew mid‑single digits despite a 63% decline in COVID revenue .
  • Street consensus for Q2 2026 implies a modest sequential reset from Q3 seasonality: revenue ~$628.5M*, EBITDA ~$126.5M*, EPS ~$0.18*; six analysts contribute to both revenue and EPS estimates*.
  • Guidance into year‑end 2025 was narrowed at Q3: revenues $2.68–$2.74B, adjusted EBITDA $585–$605M, and adjusted EPS cut to $2.00–$2.15 due to higher interest expense and mix‑driven tax rate changes .
  • Near‑term catalysts/tradeables: high‑sensitivity troponin I 510(k) on VITROS (commercial rollout starting in the U.S.), ongoing cost‑reduction/margin expansion, donor screening wind‑down removing a top‑line headwind, and potential LEX Diagnostics clearance/limited 2026 rollout .

Values with an asterisk (*) in this report are S&P Global consensus estimates.

What Went Well and What Went Wrong

  • What Went Well

    • Margin expansion and cost control: “Adjusted EBITDA in Q3 was $177 million, and adjusted EBITDA margin was 25%,” with cumulative cost savings now “over $140 million,” supporting mid‑to‑high‑20s margin ambitions .
    • Product pipeline: FDA 510(k) clearance for VITROS high‑sensitivity troponin I strengthens the cardiac panel and should support future labs growth and competitive positioning .
    • Core portfolio resilience ex‑COVID: Q3 2025 non‑respiratory revenue +4.6% y/y; Labs +5% and Immunohematology +7.7% as reported, with broad-based OUS strength (e.g., EMEA +9.3% reported) .

  • What Went Wrong

    • Respiratory drag: COVID revenue down 63% y/y in Q3, pulling total respiratory revenue down 32% and weighing on POC growth despite durable Flu combo test trends .
    • Non‑cash goodwill impairment: $701M in Q3 (no goodwill remaining) due to stock price/market cap declines; GAAP loss obscures underlying non‑GAAP progress .
    • Cash/Leverage optics: Q3 adjusted FCF negative on ERP timing; net debt/adj. EBITDA of 4.4x (goal 2.5–3.5x), with refinancing lifting full‑year interest ~$17M .

Financial Results

Note: Q2 2026 actuals are not yet published. We benchmark the latest reported results (Q2–Q3 2025) against Q2 2026 Street consensus.

MetricQ2 2025Q3 2025Q2 2026 Consensus*
Revenue ($USD Millions)$613.9 $699.9 $628.5*
Adjusted EBITDA ($USD Millions)$106.8 $177.1 $126.5*
Adjusted EBITDA Margin %17.4% 25.3% —
Adjusted Diluted EPS ($)$0.12 $0.80 $0.18*

S&P Global consensus disclaimer: Values with * are retrieved from S&P Global.

Segment breakdown (last reported)

Segment Revenue ($USD Millions)Q2 2025Q3 2025
Labs$369.7 $373.8
Immunohematology$132.3 $142.0
Donor Screening$13.3 $14.7
Point of Care$93.0 $164.6
Molecular Diagnostics$5.6 $4.8
Total$613.9 $699.9

KPIs (mix/geo and program‑specific)

KPIQ2 2025Q3 2025
COVID‑19 Revenue ($USD Millions)$9.0 (CFO) $26.9
Donor Screening Revenue ($USD Millions)$13.3 $14.7
North America Revenue ($USD Millions)$310.7 $381.4
EMEA Revenue ($USD Millions)$87.3 $91.8
China Revenue ($USD Millions)$83.4 $84.6
Other Regions Revenue ($USD Millions)$132.5 $142.1
Net Debt / Adjusted EBITDA (x)4.2x 4.4x

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenues (reported)FY 2025$2.60–$2.81B $2.68–$2.74B Narrowed (midpoint unchanged)
Adjusted EBITDAFY 2025$575–$615M $585–$605M Narrowed (midpoint unchanged)
Adjusted EBITDA MarginFY 202522% 22% Maintained
Adjusted Diluted EPSFY 2025$2.07–$2.57 $2.00–$2.15 Lowered on interest ($0.19) and tax ($0.05)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025)Previous Mentions (Q3 2025)Current Period (Q2 2026)Trend
Tariffs/MacroExpected 2025 tariff gross headwinds $20–$25M; mitigation to net neutral/positive Continued mitigation; offsets expected in 2025 Not yet reportedImproving mitigation
Supply Chain/ERPERP conversion completed; integration costs to decline H2’25 Q3 cash timing from ERP; system conversion costs declining; 2026 integration costs to drop significantly Not yet reportedTransitioning to tailwind
Product PerformanceLabs +5%, IH +3% (cc); Respiratory - y/y on COVID Labs +5%, IH +7.7%; respiratory down 32% on COVID -63% Not yet reportedCore ex‑COVID resilient
Pipeline/RegulatoryLEX FDA submission (dual 510(k)/CLIA); limited 1H’26 placements contemplated if cleared LEX clearance expected late ’25/early ’26; limited rollout early ’26 Not yet reportedOn track (watch FDA)
Cardiac Menu—VITROS hs‑troponin 510(k) cleared; U.S. rollout later in year Not yet reportedPositive catalyst
Regional TrendsChina mid‑single‑digit 2025 growth guide; less exposed to VBP China ~5% cc growth; localization compliance; LATAM +21% ex‑COVID Not yet reportedMixed but stable
Leverage/FCFTarget 25–30% FCF/EBITDA in 2025; leverage to 2.5–3x over time FCF timing headwind in Q3; reaffirm 25–30% for 2025; leverage 4.4x Not yet reportedGradual improvement targeted
Donor Screening ExitDown 61% y/y in Q2; wind‑down continues Residual $40–$50M in 2025; fully winds down 1H’26; ~50 bps margin accretion post‑stranded cost removal Not yet reportedHeadwind abating

Management Commentary

  • “Adjusted EBITDA in Q3 was $177 million, and adjusted EBITDA margin was 25%, which is a 180 basis point improvement from the prior year period.” — Joe Busky, CFO
  • “These initiatives have now delivered over $140 million in cost savings and put us well on our path to sustainable mid to high 20s EBITDA margins.” — Brian Blaser, CEO
  • “We continue to anticipate FDA clearance [for LEX Diagnostics] by late 2025 or early 2026.” — Brian Blaser, CEO
  • “The team has also done an outstanding job of managing the impact of tariffs, and we continue to expect to fully offset these impacts in 2025.” — Brian Blaser, CEO
  • “Q3 leverage ratio was slightly higher than anticipated due to the ERP system conversion impacts to our Q3 cash flow.” — Joe Busky, CFO

Q&A Highlights

  • Margin cadence: Q4 margins expected slightly lower than Q3 due to higher low‑margin instrument mix and higher seasonal incentive comp .
  • LEX Diagnostics: Clearance expected late ’25/early ’26; limited early‑’26 rollout; likely margin dilutive in 2026 until scale; accretion expected post‑2027 .
  • Donor Screening: 2025 revenue $40–$50M, fully winds down in 1H’26; ~50 bps margin accretion after stranded costs removed (late ’26/early ’27) .
  • Free cash flow: 2025 recurring FCF reiterated at 25–30% of adjusted EBITDA; path to 50% FCF/EBITDA by mid‑2027, not 2026 .
  • China: Mid‑single‑digit growth expectation reiterated; limited impact from VBP/DRG given stat‑lab mix and localization compliance .

Estimates Context

  • Q2 2026 Street consensus (S&P Global): Revenue ~$628.5M*, EBITDA ~$126.5M*, EPS ~$0.18*, with 6 estimates for revenue and EPS*.
  • Implications: Consensus embeds seasonal step‑down from Q3 run‑rate and continued normalization of COVID testing; the bar for a beat likely sits in execution on core Labs/IH growth, cost controls, and any early respiratory uptick versus seasonal norms .

S&P Global consensus disclaimer: Values with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Underlying core growth remains intact ex‑COVID, with Labs/IH momentum and improved OUS contribution; watch for sustainability of mid‑single‑digit growth into 2026 .
  • Margin story credible: 25% adjusted EBITDA in Q3, narrowed FY’25 guide at 22% margin; 2026 likely sees continued cost benefits though mix (instruments, LEX ramp) may cap upside near‑term .
  • Respiratory is now a smaller, volatile tail; ABC combo flu remains durable, but COVID normalization reduces upside optionality; trading set‑ups hinge on seasonality vs expectations .
  • Donor screening headwind fades by mid‑2026 with eventual ~50 bps margin lift post stranded‑cost removal; this should support the medium‑term margin trajectory .
  • Pipeline catalysts: VITROS hs‑troponin U.S. rollout (labs retention/share wins) and potential LEX clearance/limited ’26 placements (point‑of‑care molecular) .
  • Balance sheet optics improving post‑refi, but leverage (4.4x) and higher interest expense temper EPS; cash flow conversion timing bear‑watch into 2026 .
  • For Q2 2026, the “beat/miss” setup will largely hinge on execution in core Labs/IH, tariff offset continuity, and respiratory season timing; consensus looks conservative vs Q3 run‑rate given seasonality* .

Sources: Company press releases, 8‑K filings, and earnings call transcripts as cited. Q2 2026 consensus figures are retrieved from S&P Global (see asterisk notation).

Additional detail:

  • Q3 2025 press release and 8‑K: revenue $700M; adjusted EPS $0.80; adjusted EBITDA $177M; goodwill impairment $701M .
  • Q2 2025 press release and 8‑K: revenue $613.9M; adjusted EBITDA $106.8M; adjusted EPS $0.12; reiterated FY’25 guidance .
  • VITROS hs‑troponin 510(k) clearance press release (Nov 3, 2025) .