Bio-Rad Laboratories (BIO) Q4 2025 earnings summary

Executive summary

• Delivered Q4 and full year 2025 results within revised guidance for revenue and operating margin, but gross margin fell short due to higher supply chain costs and execution-related pressures.

• Expanded Droplet Digital PCR leadership via Stilla Technologies acquisition and integration, with positive initial market adoption and advanced oncology diagnostics through new partnerships and product registrations in over 60 countries.

• Diagnostics segment returned to growth, driven by large customer orders, stable reimbursement in China, and strong quality controls, blood typing, and diabetes products.

• Restructuring and cost discipline actions were implemented to lower the cost base and improve operational rigor.

• Early signs of stabilization in core markets and improved biopharma funding set an encouraging tone for 2026.

Financial highlights

• Q4 2025 revenue: $693M (GAAP and non-GAAP), up 3.9% year-over-year; full-year 2025 revenue: $2.583B, up 0.7%.

• Q4 2025 non-GAAP gross margin: 52.5% (down from 53.9% in Q4 2024); full-year non-GAAP gross margin: 53.3% (down from 55% in 2024).

• Q4 2025 non-GAAP net income: $68M ($2.51 EPS), down from $81M ($2.90 EPS) in Q4 2024; full-year non-GAAP net income: $271M ($9.92 EPS), down from $291M ($10.31 EPS) in 2024.

• Q4 2025 operating loss: $119M (GAAP), including $173M impairment charges; non-GAAP Q4 operating margin: 12%.

• Free cash flow for 2025: $375M, up from $290M in 2024; cash from operations reached $532M.

Outlook and guidance

• 2026 currency neutral revenue growth guided at 0.5%-1.5% for the full year; Q1 expected to be down low single digits year-over-year, with sequential improvement.

• Life Science segment 2026 revenue growth expected at 0%-0.5%; core Life Science (ex-Process Chromatography) to grow nearly 4%, ddPCR mid-single digits.

• Diagnostics/Clinical Diagnostics segment 2026 revenue growth guided at 1%-2%; quality controls business to grow mid-single digits.

• Full year 2026 non-GAAP gross margin projected at 54%-54.5%; operating margin at 12%-12.5%; free cash flow expected at $375M-$395M.