Sign in
QC

QuidelOrtho Corp (QDEL)·Q4 2025 Earnings Summary

Executive Summary

  • QuidelOrtho has not yet reported Q4 2025; the company’s next earnings release is scheduled for February 12, 2026. This recap synthesizes Q1–Q3 2025 results, guidance, and Q4-relevant press releases to frame expectations; we will update post-release with Q4 actuals and consensus comparisons .
  • Management narrowed full‑year 2025 revenue to $2.68–$2.74B and adjusted EBITDA to $585–$605M, affirming a 22% margin; adjusted EPS was updated to $2.00–$2.15 after the August refinancing, setting the bar for Q4 performance .
  • Cost actions are flowing through: Q3 adjusted EBITDA margin expanded to 25% from 23% YoY despite lower respiratory volumes; year-to-date adjusted EBITDA margin reached 22%, up 320 bps, positioning for mid-to-high 20s by mid‑2027 per management .
  • Mix watch for Q4: CFO flagged typical late‑season respiratory timing and higher instrument shipments that can compress Q4 margin slightly vs Q3, alongside higher Q4 incentive comp—key modeling considerations into the print .
  • Product catalyst: FDA 510(k) clearance of VITROS high‑sensitivity troponin I enhances the cardiac menu on VITROS and began U.S. rollout late Q4, a longer‑term share and pull‑through driver for Labs .

What Went Well and What Went Wrong

  • What Went Well

    • Margin execution: Adjusted EBITDA margin reached 25% in Q3 (up 180 bps YoY), driven by cost savings and procurement actions; non‑GAAP OpEx down 7% YoY .
    • Core growth resilience: Ex‑COVID and Donor Screening, Q3 total revenue grew 5% in constant currency; Labs +4% cc, Immunohematology +5% cc show durable non‑respiratory engines .
    • Strategic win: FDA 510(k) clearance for VITROS hs Troponin I elevates cardiac panel competitiveness; commercial rollout initiated late Q4 and cited by management as a key innovation milestone .

  • What Went Wrong

    • Respiratory drag: Q3 respiratory revenue fell 32% YoY (COVID down 63% YoY), pulling total revenue down 4% YoY .
    • GAAP optics: A $701M non‑cash goodwill impairment drove Q3 GAAP net loss margin to (105%), overshadowing underlying improvements .
    • Headwinds and charges: Q3 included $40M restructuring/integration charges; donor screening wind‑down remained a top‑line headwind and will fully roll off by 1H26, requiring stranded cost removal to capture ~50 bps margin accretion later in 2026/early 2027 .

Financial Results

Note: Q4 2025 not yet reported; we present Q1–Q3 reported metrics and guidance context. We will update this table with Q4 actuals and consensus after the release on Feb 12, 2026 .

MetricQ1 2025Q2 2025Q3 2025Q4 2025 (Reported)
Revenue ($MM)$692.8 $613.9 $699.9 TBD (post 2/12/26)
GAAP Diluted EPS$(0.19) $(3.77) $(10.78) TBD
Adjusted Diluted EPS$0.74 $0.12 $0.80 TBD
Adjusted EBITDA ($MM)$159.8 $106.8 $177.1 TBD
Adjusted EBITDA Margin (%)23.1% 17.4% 25.3% TBD

Segment revenue and mix (Q3 2025):

Segment ($MM)Q3 2025Q3 2024YoY % (as rpt)Notes
Labs$373.8 $356.0 +5.0% +4.4% cc; steady recurring base
Immunohematology$142.0 $131.9 +7.7% +5.2% cc
Donor Screening$14.7 $27.9 (47.3)% U.S. exit in process
Point of Care$164.6 $205.7 (20.0)% COVID down 63% YoY
Molecular Diagnostics$4.8 $5.6 (14.3)%
Total$699.9 $727.1 (3.7)% Ex‑COVID & Donor Screening: +5% cc

Regional revenue (Q3 2025):

Region ($MM)Q3 2025Q3 2024YoY % (as rpt)Notes
North America$381.4 $436.2 (12.6)% Ex‑respiratory & donor screening: +5% YoY, per management
EMEA$91.8 $84.0 +9.3% +2.4% cc; strong margin improvement YTD
China$84.6 $80.4 +5.2% ~5% cc growth; manageable BBP/DRG impacts
Other$142.1 $126.5 +12.3% LatAm strength
Total$699.9 $727.1 (3.7)% FX +90 bps tailwind

KPIs and other P&L items (Q3 2025):

KPI/ItemQ3 2025Prior YearNotes
Adjusted Gross Margin48.7% 49.2% 50 bps lower YoY on tariffs, offset by mitigations
Non‑GAAP OpEx (SG&A+R&D)$216.5MM $232.1MM Down 7% YoY from cost actions
Restructuring/Integration & Other$39.6MM $36.8MM Includes ERP, Savanna discontinuation
Goodwill Impairment$700.7MM $0 Triggered by stock price/market cap decline; zero goodwill remains
Net Debt / Adj. EBITDA (Q3)4.4x —Goal 2.5x–3.5x; refi done in Aug

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue (reported)FY25$2.60–$2.81B (Feb/Q1 reiterated) $2.68–$2.74B Narrowed range; midpoint unchanged
Adjusted EBITDAFY25$575–$615MM $585–$605MM Narrowed; midpoint unchanged
Adjusted EBITDA MarginFY2522% 22% Maintained
Adjusted Diluted EPSFY25$2.07–$2.57 $2.00–$2.15 Updated lower on higher interest, taxes
COVID RevenueFY25$110–$140MM (earlier) $70–$100MM Lowered on lower severity/testing
FX ImpactFY25Neutral/full‑year (Q2 update) Neutral (as of Oct 26 rates) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q2’25; Q-1: Q3’25)Current Period (Q4’25)Trend
Cost savings and margin pathQ2: Adj. EBITDA margin +330 bps; reiterated path to mid‑high 20s by mid‑2027 . Q3: 25% margin; $140MM savings to date .Not yet reported; watch Q4 margin mix (instruments, incentives) and FY25 22% margin reaffirmation Improving margins; near‑term Q4 mix headwind
Respiratory season timingQ2: COVID guide cut; flu outlook unchanged . Q3: Expect typical late Q4 into Q1 seasonality .Not yet reported; seasonality expected to drive late‑Q4 volumes Normalizing patterns
Tariffs & mitigationQ2: Gross tariff headwind cut to $20–$25MM; fully mitigated . Q3: Tariff impacts offset by cost actions .Not yet reportedMitigated
VITROS hs‑TroponinQ2: Focus on menu expansion . Q3: FDA clearance announced; rollout starting .Not yet reportedPositive product catalyst
China policy impactsQ2: Mid‑single‑digit FY25; less exposed via stat labs and mix . Q3: ~5% cc; manageable BBP/DRG; localization compliant .Not yet reportedStable outlook
Donor Screening wind‑downQ2/Q3: Headwind; $40–$50MM FY25, fully winds down 1H26; 50 bps margin accretion later .Not yet reportedHeadwind fades in 2026
LEX DiagnosticsQ2: Dual 510(k)/CLIA submission; limited 1H26 rollout; ramp into 2H26 season . Q3: Clearance late ’25/early ’26; margin dilutive in 2026 .Not yet reported2026–2027 ramp

Management Commentary

  • “Adjusted EBITDA in Q3 was $177 million, and adjusted EBITDA margin was 25%… These results reflect significant improvements in our underlying cost structure while also mitigating recent tariff headwinds.”
  • “We reported organic sales growth of 5%, excluding COVID sales and the U.S. donor screening business that we are in the process of exiting… We are expanding margins and accelerating innovation—most recently with the addition of high‑sensitivity Troponin on our VITROS platform.”
  • “We completed our debt refinancing in August… At the end of Q3, our net debt to adjusted EBITDA ratio was 4.4x… Our goal continues to be net debt leverage of between 2.5 and 3.5.”
  • On VITROS hs‑Troponin: “This new test elevates our cardiac panel to world‑class performance… getting this assay in the hands of our customers was a key focus… FDA clearance by 90 days from submission.” and product details .
  • On Q4 margin dynamics: “Margins might be slightly lower [vs Q3] because we will… see slightly higher instrument revenue in Q4… instrument revenue… is much lower than reagents… [and] a little higher incentive compensation expense in Q4.”

Q&A Highlights

  • Respiratory and mix: Q4 margin may be modestly lower on higher instrument mix and Q4 incentive accruals—useful for modeling sequential margin .
  • China: Mid‑single‑digit FY25 growth outlook maintained; stat‑lab concentration reduces DRG debundling exposure; localization strategy in place .
  • Donor Screening: FY25 revenue $40–$50MM; complete wind‑down in 1H26; ~50 bps margin accretion after removing stranded costs (late 2026/early 2027) .
  • Free cash flow: Conversion target remains 25–30% of adj. EBITDA in 2025; path to 50% by mid‑2027; Q3 shortfall due to ERP timing effects .
  • LEX Diagnostics: Potential clearance late ’25/early ’26; 2026 margin likely dilutive until scale; ramp toward 2026–2027 respiratory season .

Estimates Context

  • S&P Global consensus estimates (EPS, Revenue, EBITDA) for Q4 2025 were not retrievable at time of writing due to request limits. We will refresh and add a vs‑consensus table post‑release.
  • Company‑provided FY25 guidance at Q3—Revenue $2.68–$2.74B, Adjusted EBITDA $585–$605MM, Adjusted EPS $2.00–$2.15—implies Q4 contribution subject to late‑season respiratory timing and instrument mix .

Key Takeaways for Investors

  • Expect typical late‑Q4 respiratory contribution, but model a slight sequential margin dip vs Q3 on instrument mix and incentive comp; full‑year adjusted EBITDA margin still guided to 22% .
  • Underlying core remains resilient: ex‑COVID/Donor Screening, Q3 constant‑currency growth was +4–6%, led by Labs and Immunohematology; keep focus on recurring reagent pull‑through vs instruments .
  • Watch for hs‑Troponin adoption on VITROS: not a near‑term Q4 driver, but strategically important for cardiac leadership and Labs share; initial U.S. rollout began late Q4 .
  • Balance sheet/FCF: Post‑refi, leverage at 4.4x with a glidepath to 2.5–3.5x; FCF conversion targeted at 25–30% in 2025, stepping toward 50% by mid‑2027—monitor Q4 cash collections and ERP timing normalization .
  • Donor Screening headwind fades by mid‑2026, unlocking ~50 bps of margin accretion after stranded cost actions—supportive to medium‑term margin trajectory .
  • LEX Diagnostics is a 2026–2027 story; anticipate initial dilution in 2026 before scaling; the platform broadens point‑of‑care molecular with speed and value positioning .
  • GAAP optics are noisy (Q3 impairment); evaluate through adjusted margin expansion and cost‑out cadence into 2026 while tracking Q4 seasonality and guidance updates .

Appendix: Prior Quarters (for trend)

  • Q1 2025: Revenue $692.8MM; Adj. EPS $0.74; Adj. EBITDA $159.8MM (23.1% margin); guidance maintained .
  • Q2 2025: Revenue $613.9MM; Adj. EPS $0.12; Adj. EBITDA $106.8MM (17.4% margin); guidance reiterated .
  • Q3 2025: Revenue $699.9MM; Adj. EPS $0.80; Adj. EBITDA $177.1MM (25.3% margin); guidance narrowed/updated EPS .

Sources: Company press releases, 8‑K, 10‑Q, and earnings call transcripts as cited above.