Hologic (HOLX) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue was $1.01 billion, down 1.2% year-over-year but at the high end of guidance; non-GAAP EPS was $1.03, flat year-over-year and at the high end of guidance.

• GAAP diluted EPS was ($0.08), down from $0.72 last year, due to $220.9M in non-cash intangible asset impairment charges.

• Diagnostics and skeletal health segments grew, while breast health declined due to lower mammography equipment sales and China/Africa headwinds.

• Major acquisitions included Gynesonics ($340.7M) and Endomag ($313.9M), expanding GYN Surgical and Breast Health portfolios.

• Management maintained annual revenue guidance but lowered EPS guidance due to tariffs and geopolitical headwinds.

Financial highlights

• Revenue decreased 1.2% year-over-year to $1,005.3M; organic revenue excluding COVID-19 fell 1.4%.

• Non-GAAP gross margin was 61.1%, up 40 bps year-over-year; GAAP gross margin dropped to 37.5% due to impairment charges.

• Non-GAAP net income was $232.9M; GAAP net loss was ($17.4M).

• Adjusted EBITDA was $325.8M, down 2.9% year-over-year.

• Cash and equivalents at quarter-end were $1.43B, with $192M in short-term investments.

Outlook and guidance

• FY2025 revenue guidance maintained at $4,050–$4,100M; non-GAAP EPS guidance lowered to $4.15–$4.25.

• Q3 2025 revenue guidance is $1,000–$1,010M; non-GAAP EPS guidance is $1.04–$1.07.

• Guidance reflects tariff and geopolitical headwinds, with tariff costs estimated at $20–$25M per quarter starting Q4 2025.

• Management expects continued headwinds in Breast Health and ongoing cost reduction and restructuring initiatives.

• Diagnostics expected to grow mid-single digits ex-COVID; breast health to decline low single digits reported, mid-single digits organically; surgical to grow high single digits reported, low single digits organically.