QuidelOrtho (QDEL) investor relations material

Executive summary

• Q3 revenue was $618.9M, down 11.6% YoY in constant currency and 12% reported; excluding China, respiratory, and U.S. Donor Screening, revenue grew 3% in constant currency.

• Labs and Immunohematology grew outside China, while China pricing changes and weaker respiratory demand weighed on results.

• A new operating model and restructuring target over $80M in annual savings in 2027, prioritizing profitability, cash flow, and leverage.

Financial highlights

• Adjusted gross margin was 47.8%, down 90 bps YoY; adjusted EBITDA was $148M, with a 23.9% margin, and adjusted diluted EPS was $0.31.

• Adjusted operating expenses were $210M, down 3% YoY; they were 34% of revenue as lower sales reduced expense leverage.

• Q3 GAAP net loss was $53.8M versus adjusted net income of $21.2M; GAAP diluted loss per share was $0.78.

• Operating cash flow was $19.6M and free cash flow was $0.3M; net capex was $19M versus $49M a year earlier.

• 9M revenue was $1.870B, down 7.8% YoY in constant currency; adjusted EBITDA was $386M and adjusted diluted EPS was $0.41.

Outlook and guidance

• FY2026 guidance narrowed to revenue of $2.52B-$2.54B, adjusted EBITDA of $540M-$545M, adjusted EBITDA margin of 21%, and adjusted diluted EPS of $0.65-$0.70.

• Labs and Immunohematology are expected to grow at low- to mid-single digits, excluding China.

• China is expected to represent 8% of revenue in 2026 and 4%-5% in 2027; destocking and pricing pressure are expected to continue.

• Restructuring targets over $80M in annual savings in 2027, with $30M-$35M of one-time charges expected in Q4 2026; savings begin in Q4 and ramp through 2027.

• Guidance assumptions include depreciation of $255M-$260M, interest expense of $219M-$223M, an effective tax rate of ~27%, and capex of $115M-$125M, excluding reagent-rental instruments.