QuidelOrtho (QDEL) investor relations material

Executive summary

• Q2 2026 revenue was $631 million, up 2–3% year-over-year, with 95% recurring revenue and growth driven by Labs and Point of Care segments; excluding China, revenue rose 6%.

• Year-to-date 2026 revenue was $1.25 billion, down 4–6% year-over-year, mainly due to lower respiratory sales, China headwinds, and the termination of a joint business.

• Adjusted EBITDA for Q2 was $129 million (up 8–21% year-over-year), with margin expanding to 20–20.5%.

• Net loss for Q2 was $93 million; for the first half, net loss narrowed to $184.7 million.

• LEX Diagnostics acquisition completed, expanding molecular diagnostics portfolio and progressing NULEXA platform commercialization.

Financial highlights

• Q2 revenue: $631 million (up 2–3% year-over-year); six-month revenue: $1.25 billion (down 4–6%).

• Adjusted gross margin for Q2: 44.4%, down 130 basis points year-over-year; six-month gross margin: 42.9%.

• Adjusted EBITDA margin for Q2: 20–20.5%; adjusted EPS: $0.13.

• Operating cash flow for Q2: negative $111 million; free cash flow: negative $136 million; six-month free cash flow: negative $203 million.

• Cash and cash equivalents at quarter-end: $123.4 million; net debt at quarter-end: $2.8 billion.

Outlook and guidance

• Full-year 2026 revenue guidance revised to $2.52–$2.60 billion, adjusted EBITDA to $540–$560 million (21–22% margin), and adjusted EPS to $0.65–$0.90.

• Free cash flow guidance withdrawn due to uncertainty in China and respiratory season timing.

• Guidance reflects persistent China challenges, a softer respiratory market, and the LEX Diagnostics acquisition.

• Management expects continued demand and pricing fluctuations, focusing on cost management and new product introductions.