QuidelOrtho (QDEL) reported third‑quarter 2025 results that included $700 million in revenue, a 4% year‑over‑year decline driven by lower COVID‑19 and U.S. Donor Screening sales. The company posted a GAAP net loss of $733 million, largely due to a $701 million goodwill impairment charge, but generated an adjusted EBITDA of $177 million, giving an adjusted EBITDA margin of 25% versus 23% in the prior year. Adjusted diluted earnings per share were $0.80, beating consensus estimates of roughly $0.46–$0.47—a beat of about $0.34 per share or 73%.
The revenue drop masks a 5% organic growth in the core business when COVID‑19 and Donor Screening are excluded. Labs and Immunohematology segments continued to expand, offsetting the decline in legacy product lines. The company’s cost‑optimization plan, which includes the completion of a debt refinancing on August 21, 2025, has reduced amortization costs and improved liquidity, allowing tighter control over operating expenses and supporting the margin expansion.
The EPS beat is largely attributable to disciplined cost management and a favorable product mix. While revenue fell, the company maintained pricing power in its high‑margin segments and leveraged scale to keep variable costs in check. The 200‑basis‑point lift in adjusted EBITDA margin reflects both the elimination of the goodwill impairment from adjusted calculations and the successful execution of the company’s cost‑control initiatives.
Full‑year guidance remains unchanged for revenue ($2.68 billion to $2.74 billion) and adjusted EBITDA ($585 million to $605 million), with an adjusted EBITDA margin guidance of 22%. However, the company lowered its full‑year adjusted EPS guidance, signaling a more conservative outlook for earnings per share while maintaining confidence in its revenue trajectory. The debt refinancing completed in August has strengthened the balance sheet, providing a buffer for future investments in high‑growth areas.
Management highlighted the addition of a high‑sensitivity Troponin assay to the VITROS platform as a key innovation driving future growth. CEO Brian J. Blaser emphasized that the company is “expanding margins and accelerating innovation” and that the core business is growing organically at 5% after excluding legacy product declines. The company is winding down its U.S. Donor Screening portfolio to focus on higher‑margin recurring revenue streams.
The market reacted positively, with the stock closing up 0.88% on the day of the announcement. Investors were encouraged by the strong EPS and revenue beats, the 25% adjusted EBITDA margin, and the company’s clear focus on core growth and cost discipline. The goodwill impairment, while significant on a GAAP basis, did not dampen investor confidence because it is a non‑cash charge that does not affect the company’s operating performance.
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