Masimo (MASI) Q4 2024 earnings summary

Executive summary

• Q4 2024 consolidated revenue reached $601 million, up 9% year-over-year; healthcare revenue grew 8–9% to $368 million, non-healthcare revenue rose 11% to $232 million.

• Full-year 2024 consolidated revenue was $2,094 million, with healthcare revenue up 9–10% to $1,395 million and non-healthcare revenue down 10% to $699 million.

• Q4 non-GAAP EPS was $1.80, up 44% year-over-year; full-year non-GAAP EPS was $4.40, up 16% year-over-year.

• Q4 GAAP net loss per share was ($6.52) due to a $304 million impairment of Sound United; full-year GAAP net loss per share was ($5.72).

• Strategic realignment included cost optimization, project portfolio rationalization, and a planned divestiture of the Sound United consumer business.

Financial highlights

• Q4 consolidated gross margin was 52–52.2%; healthcare gross margin improved to 63% in Q4 and 62.7% for the year.

• Q4 operating profit was $134 million, up 46% year-over-year; Q4 non-GAAP operating margin was 22.4% (up 570 bps); full-year non-GAAP operating margin was 17% (up 170 bps).

• Q4 non-GAAP net income was $98.2 million; full-year non-GAAP net income was $239.7 million.

• Cash from operations for 2024 was $196.4 million, up from $94.1 million in 2023.

• Consumable and service revenue grew 14% to $1,245 million; capital equipment revenue declined 20%.

Outlook and guidance

• 2025 healthcare revenue guidance: $1,500–$1,530 million (8–10% reported growth, 8–11% constant currency).

• Projected 2025 non-GAAP operating profit: $413–$428 million (27.5–28% margin); non-GAAP EPS: $5.10–$5.40 (22–29% growth, excluding Sound United).

• Guidance excludes proceeds from Sound United sale, new tax policies, and potential tariff impacts.

• Sound United to be classified as held for sale and excluded from non-GAAP financials and guidance.

• 2025 includes an extra fiscal week, mostly offset by product line removals and accounting changes.