QuidelOrtho (QDEL) 46th Annual William Blair Growth Stock Conference summary

Market Environment and Growth Drivers

• Diagnostic testing demand is driven by aging populations, chronic disease, decentralization of healthcare, emerging market investment, and a focus on wellness and prevention.

• The business is diversified across care settings, with a large installed base of over 145,000 instruments in 140 countries and a global footprint.

• 96% of revenue is recurring, supported by strong customer retention, long-term relationships, and a 95%+ contract renewal rate.

• Focused on $50 billion in attractive diagnostics segments, with labs as the largest and most stable business.

• Over 62% of the top 175 global hospitals use its solutions.

Portfolio and Innovation

• The portfolio covers labs, immunohematology, point-of-care, and molecular diagnostics, with strong platforms like VITROS, VISION, Sofia, ORTHO VISION, and NULEXA.

• NULEXA, acquired via LEX Diagnostics, offers the fastest molecular respiratory test, delivering PCR-quality results in 6–10 minutes, is CLIA waived, and stands out for speed, simplicity, and economics.

• Proprietary technologies enable high sensitivity, rapid turnaround, and scalable automation across settings.

• Recent innovation includes launches of VITROS 450, VITROS ECiQ, High-Sensitivity Troponin, RESULTS MANAGER, and NULEXA.

• Menu expansion and next-generation platforms are in the pipeline for 2026–2030, including new assays and automation solutions.

Financial Performance and Outlook

• Achieved $2.73 billion in FY25 revenue, 5% growth excluding COVID and donor screening, and $597 million adjusted EBITDA with a 22% margin; adjusted diluted EPS grew 15% year-over-year to $2.12.

• FY26 guidance projects $2.70–$2.75 billion in revenue, $615–$630 million adjusted EBITDA (23% margin), and $1.80–$2.00 adjusted diluted EPS.

• Free cash flow is expected to gain momentum in 2H 2026, targeting $100–$120 million for FY26 and 50% recurring FCF-to-EBITDA conversion in 2H'27.

• $140 million in cost savings achieved by end of 2025, with an additional $30–$40 million targeted for the current year.

• Committed to reducing net debt leverage to 2.5x–3.5x by the second half of 2027.