Bio-Rad Laboratories (BIO) Q4 2025 earnings summary

Executive summary

• 2025 saw modest revenue growth of 0.7% year-over-year, with results within revised guidance for revenue and operating margin, but gross margin was pressured by higher supply chain costs and execution-related issues.

• Diagnostics segment returned to growth, driven by large customer orders, improved reimbursement in China, and strong sales of quality control, blood typing, and diabetes products; Life Science segment saw strong QX700 ddPCR instrument sales but was impacted by weak academic and biotech funding.

• Integration and acquisition of Stilla Technologies expanded the digital PCR portfolio, with positive initial market adoption and expected accretive impact by mid-2026.

• Strategic partnerships advanced clinical diagnostics for oncology, and over 1,200 products gained new international registrations.

• Free cash flow for 2025 was strong at $375 million, supported by working capital improvements and robust cash from operations.

Financial highlights

• Q4 2025 revenue was $693 million, up 3.9% year-over-year; full-year revenue was $2,583 million, up 0.7%.

• Q4 2025 non-GAAP gross margin: 52.5% (down from 53.9% in Q4 2024); non-GAAP operating margin: 12% (down from 13.8%).

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

• Q4 2025 GAAP net income was $720 million, driven by a gain in Sartorius AG investment and offset by a $172.8 million impairment.

• Free cash flow for 2025 was $375 million, up from $290 million in 2024.

Outlook and guidance

• 2026 currency neutral revenue growth expected between 0.5% and 1.5%.

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

• Diagnostics/Clinical Diagnostics segment 2026 revenue growth expected at 1–2%.

• Full-year 2026 non-GAAP gross margin projected at 54–54.5%; operating margin at 12–12.5%.

• Free cash flow for 2026 projected at $375–395 million.