Bio-Rad Laboratories (BIO) Q4 2025 earnings summary

Executive summary

• 2025 delivered modest revenue growth of 0.7% year-over-year, with results within revised guidance but gross margin impacted by higher supply chain costs, execution issues, and one-time write-offs.

• Diagnostics segment returned to growth, driven by quality controls, blood typing, and diabetes products, while Life Science saw strong QX700 ddPCR sales but was impacted by constrained academic and biotech funding.

• Process Chromatography business grew over 20% in 2025 but is expected to be volatile due to customer concentration and regulatory changes.

• Expanded Droplet Digital PCR leadership via Stilla Technologies acquisition and integration, with positive initial market adoption and new partnerships advancing oncology diagnostics.

• Generated $532M in cash from operations and $375M in free cash flow for 2025; $296M deployed for share repurchases.

Financial highlights

• Q4 2025 revenue was $693M, up 3.9% year-over-year; full-year revenue was $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 in impairment charges; non-GAAP operating margin: 12% (down from 13.8%).

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

Outlook and guidance

• 2026 currency neutral revenue growth expected between 0.5%-1.5%; Q1 to be down low single-digit year-over-year, improving sequentially.

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

• Process Chromatography projected to decline mid-teens in 2026, with long-term mid-single-digit growth expected.

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

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