QuidelOrtho Corporation reported fourth‑quarter and full‑year 2025 results that beat revenue and earnings estimates while maintaining a strong margin profile. Total revenue for the year was $2.73 billion, flat versus $2.78 billion in 2024, and adjusted diluted earnings per share were $2.12, matching the consensus estimate of $2.10. Adjusted EBITDA reached $597 million, a 22% margin that represents a 240‑basis‑point improvement over the prior year. The company posted a negative free‑cash‑flow of $77 million for 2025, largely attributable to a $701 million goodwill impairment and an ongoing ERP conversion.
In the fourth quarter, revenue was $724 million, beating the consensus estimate of $698.32 million. Adjusted diluted EPS for the quarter was $0.46, a $0.03 beat over the $0.43 estimate. The Labs segment grew 7% year‑over‑year, driven by a higher‑margin immunoassay mix, while the TRIAGE™ business expanded 16% and Cardiac revenue grew in the high‑single‑digit range. Respiratory revenue declined as COVID‑19 testing demand subsided, offsetting the gains in other segments.
The full‑year results show that the company’s cost‑saving initiatives and portfolio rationalization are translating into margin expansion. Adjusted EBITDA of $597 million at a 22% margin reflects a 240‑basis‑point lift from 2024, driven by disciplined cost control and a shift toward higher‑margin products. The $701 million goodwill impairment recorded in Q3 2025 was a non‑cash charge that cleans the slate for future GAAP earnings, while the ERP conversion has contributed to the negative free‑cash‑flow figure for the year.
Guidance for fiscal 2026 signals confidence in continued growth and profitability. Management projects revenue of $2.70 billion to $2.90 billion, adjusted EBITDA of $630 million to $670 million, and an adjusted EBITDA margin of 22% to 23.3%. Diluted earnings per share are expected to range from $2.00 to $2.42, and free‑cash‑flow is projected to improve to $120 million to $160 million, addressing the negative cash flow seen in 2025.
Management emphasized the company’s transition from COVID‑driven volatility to a more durable, diversified diagnostics business. "In 2025, we transitioned from COVID‑driven volatility to a more durable, diversified diagnostics business. Our Labs, Immunohematology and Cardiac businesses delivered consistent growth, while cost‑savings initiatives drove meaningful margin expansion. As a result, we are well positioned to generate substantially stronger free cash flow in 2026, which we believe more accurately reflects the earnings power of our business," said President and CEO Brian J. Blaser. Chief Financial Officer Joe Busky added, "Cash flow is a company‑wide focus for us, including executive compensation incentives," and noted that the $701 million goodwill impairment charge reset goodwill and should allow forward GAAP earnings to more closely track operational performance. The company also confirmed that the Donor Screening portfolio is winding down, which is expected to improve margins by 50 basis points once stranded costs are addressed. Busky also highlighted that CFO Joseph M. Busky will retire effective June 30 2026.
Investors reacted cautiously to the results, weighing the strong revenue and earnings beats against the company’s high net‑debt‑to‑adjusted‑EBITDA ratio of 4.2× and the negative free‑cash‑flow figure for 2025. The positive guidance for 2026, however, suggests management’s confidence in the company’s cost‑saving initiatives and portfolio rationalization, which may temper concerns over leverage in the longer term.
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