QuidelOrtho Corporation Q2 FY2025 earnings call

• Second quarter results: Total revenue $614M, adjusted EBITDA margin improved 330 basis points, adjusted diluted EPS improved. - Cost structure actions: Impact starting to kick in, adjusted EBITDA margin and EPS improved. - Commercial and operations: Global commercial team focused on key markets, value expansion, R&D working on innovation, operations optimizing cost structure. - Acquisition: Intent to acquire LEX Diagnostics in molecular space, FDA review underway, expected to begin placements in early 2026. - Customer focus: Earned first place rankings by ServiceTrak for clinical chemistry and service.

Total revenue for the second quarter of 2025 was $614 million, down 1% excluding COVID and Donor Screening. Labs and Immunohematology business units had organic constant currency growth of 5% and 3% respectively. Respiratory business had a relatively small $2 million revenue decline excluding COVID. OUS performance was strong with growth in Latin America, Japan, Asia Pacific, and EMEA. EMEA grew 3% in the quarter and 6% year-to-date. Other region grew 10% in the quarter with 14% growth in Latin America and 6% in Japan and Asia Pacific. China had 2% growth despite tariff-related shipment holds in April, with mid-single-digit growth expected for the full year. Molecular revenue grew 24%.

• Full year 2025 total reported revenue expected between $2.6 billion and $2.81 billion with neutral FX impact. - Adjusted EBITDA expected $575 million to $615 million (22% margin). - Adjusted diluted EPS between $2.07 to $2.57. - Gross tariff impacts now $20 million to $25 million, offsetting lower COVID revenue impact. - Incremental cost savings of $30 million to $50 million expected in 2025.

• Potential factors affecting actual results: Tariffs, macroeconomic conditions, proposed acquisition of LEX Diagnostics. - Risks related to global trade tensions and their impact on results.

Q: Walk through respiratory expectations for remainder of year and COVID guidance?

A: Joe Busky said COVID revenue expected $70M to $100M vs prior $110M to $140M due to less severe strains.

Q: China revenue guidance and risk?

A: Brian Blaser said China mid-single-digit growth expected, most impacts behind us.

Q: EBITDA moving pieces?

A: Joe Busky said lower COVID revenue, lower tariffs, Savanna discontinuation offsetting.

Q: Molecular commercialization and strategy?

A: Brian Blaser said LEX platform in review, will use existing and ortho commercial teams.

Q: Free cash flow in back half?

A: Joe Busky said more cash flow expected in second half to reach 25%-30% adjusted EBITDA conversion.

Q: Incremental savings cadence?

A: Joe Busky said savings back-end loaded, $30M to $50M expected in 2025.

Q: LEX commercialization and manufacturing?

A: Brian Blaser said no commercial efforts yet, FDA approval needed.

Q: Flu mix and combo test?

A: Joe Busky said greater than 50% mix of flu expected to be combo test.

Q: Molecular portfolio post-LEX?

A: Brian Blaser said LEX platform driving growth, Savanna and Lyra to have place in portfolio.