UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 2 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________to __________ Commission file number 001-07928 BIO-RAD LABORATORIES, INC. | (Exact name of registrant as specified in its charter) | | | --- | ...

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) [Executive Summary](index=1&type=section&id=Executive%20Summary) Bio-Rad Laboratories delivered solid Q2 2025 financial results and expanded its Droplet Digital™ PCR portfolio - Bio-Rad achieved **solid quarterly performance** in the second quarter of 2025, with growth in both revenue and operating margin[3](index=3&type=chunk) - Completed the acquisition of Stilla Technologies, a developer of Droplet Digital PCR, effectively expanding its Droplet Digital™ PCR product line with the QX Continuum™ and QX700™ series systems[3](index=3&type=chunk) [About Bio-Rad](index=4&type=section&id=About%20Bio-Rad) Bio-Rad is a global leader in life science and clinical diagnostics with over 7,500 employees and $2.6 billion in 2024 revenue - Bio-Rad Laboratories, Inc, is a leader in developing, manufacturing, and marketing products for the life science research and clinical diagnostics markets[28](index=28&type=chunk) - The company has a global network of **over 7,500 employees**[28](index=28&type=chunk) Bio-Rad 2024 Revenues | Metric | Amount | | :--- | :--- | | 2024 Revenues | $2.6 billion | [Second-Quarter 2025 Financial Performance](index=1&type=section&id=Second-Quarter%202025%20Financial%20Performance) [Overall Financial Highlights (GAAP & Non-GAAP)](index=1&type=section&id=Overall%20Financial%20Highlights%20(GAAP%20%26%20Non-GAAP)) Q2 2025 net sales grew 2.1% to $651.6 million, with GAAP net income swinging to a profit of $317.8 million Q2 2025 vs Q2 2024 GAAP Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue (millions) | $651.6 | $638.5 | +2.1% | | Gross margin | 53.0% | 55.6% | -2.6 pp | | Income from operations (millions) | $77.1 | $101.5 | -24.0% | | Net income (loss) (millions) | $317.8 | $(2,165.5) | N/A (swing to profit) | | Income (loss) per diluted share | $11.67 | $(76.26) | N/A (swing to profit) | Q2 2025 vs Q2 2024 Non-GAAP Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue (millions) | $651.6 | $638.5 | +2.1% | | Gross margin | 53.7% | 56.4% | -2.7 pp | | Income from operations (millions) | $88.6 | $106.9 | -17.1% | | Net income (millions) | $71.0 | $88.3 | -19.6% | | Income per diluted share | $2.61 | $3.11 | -16.1% | - Total net sales for the second quarter of 2025 were **$651.6 million**, an increase of 2.1% compared to the second quarter of 2024; on a currency-neutral basis, quarterly sales grew 1.0%[6](index=6&type=chunk) Segment Performance [Life Science Segment](index=1&type=section&id=Life%20Science%20Segment) The Life Science segment's net sales grew 4.9% to $262.8 million, driven by process chromatography and food safety products Q2 2025 Life Science Segment Net Sales | Metric | Q2 2025 Sales (millions) | YoY Growth | Currency-Neutral YoY Growth | | :--- | :--- | :--- | :--- | | Life Science Sales | $262.8 | +4.9% | +3.8% | - The currency-neutral sales increase was primarily driven by higher sales of **process chromatography and food safety products**[8](index=8&type=chunk) [Clinical Diagnostics Segment](index=2&type=section&id=Clinical%20Diagnostics%20Segment) The Clinical Diagnostics segment's net sales were flat at $388.8 million, impacted by lower China reimbursement Q2 2025 Clinical Diagnostics Segment Net Sales | Metric | Q2 2025 Sales (millions) | YoY Growth | Currency-Neutral YoY Growth | | :--- | :--- | :--- | :--- | | Clinical Diagnostics Sales | $388.8 | Flat | -0.7% | - The currency-neutral sales decline was mainly driven by **lower diabetes testing reimbursement in China**, partially offset by increased demand for quality control and immunology products[9](index=9&type=chunk) [Other Financial Details](index=2&type=section&id=Other%20Financial%20Details) Q2 2025 GAAP net income of $317.8 million was driven by favorable changes in the Sartorius AG investment's fair value - The Q2 2025 net income of **$317.8 million** (versus a net loss of $2,165.5 million in Q2 2024) was primarily attributable to changes in the fair value of the Sartorius AG investment[10](index=10&type=chunk) Q2 2025 Effective Tax Rates | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP Effective Tax Rate | 23.2% | 22.3% | | Non-GAAP Effective Tax Rate | 22.7% | 23.5% | - The increase in the 2025 GAAP tax rate was due to the accounting treatment of equity securities and the geographical mix of earnings; the decrease in the 2025 non-GAAP tax rate was due to the geographical mix of earnings[11](index=11&type=chunk)[12](index=12&type=chunk) [Full-Year 2025 Financial Outlook](index=2&type=section&id=Full-Year%202025%20Financial%20Outlook) Bio-Rad updated its full-year 2025 outlook, raising its non-GAAP operating margin guidance to 12.0% to 13.0% Updated Full-Year 2025 Financial Outlook (Non-GAAP, Currency-Neutral) | Metric | Updated Expectation | Prior Expectation | | :--- | :--- | :--- | | Revenue Growth | 0% to 1.0% | -1.0% to 1.5% | | Operating Margin | 12.0% to 13.0% | 10.0% to 12.0% | [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) [Purpose and Rationale](index=2&type=section&id=Purpose%20and%20Rationale) Non-GAAP measures are used to provide supplemental data for evaluating ongoing operational performance and making decisions - Non-GAAP measures are used to analyze overall business performance, make operating decisions, forecast and plan for future periods, and determine payments under compensation plans[17](index=17&type=chunk)[38](index=38&type=chunk) - Disclosure of non-GAAP financial measures provides useful supplemental data to enhance transparency in reviewing financial and operational performance and helps investors understand and evaluate operating results and compare them to peer companies[17](index=17&type=chunk)[18](index=18&type=chunk)[38](index=38&type=chunk) [Specific Adjustments](index=3&type=section&id=Specific%20Adjustments) Non-GAAP adjustments exclude items like amortization of intangibles, restructuring costs, and fair value changes of securities - Items excluded from non-GAAP measures include: amortization of acquisition-related intangible assets; certain acquisition-related expenses and benefits; restructuring charges; asset impairment charges; gains and losses from changes in fair value of equity securities and loan receivables; gains and losses on equity-method investments; and significant legal-related charges or benefits and associated legal costs[16](index=16&type=chunk)[37](index=37&type=chunk) - These items are excluded because they are outside of normal operations and/or, in certain cases, are difficult to forecast accurately, or their uniqueness may limit the comparability of ongoing operational performance[16](index=16&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[37](index=37&type=chunk) [Limitations](index=3&type=section&id=Limitations) Non-GAAP measures are not prepared in accordance with GAAP and should not be considered a substitute for GAAP results - Non-GAAP financial measures are not prepared in accordance with Generally Accepted Accounting Principles (GAAP) and may differ from non-GAAP financial measures used by other companies[24](index=24&type=chunk) - These non-GAAP financial measures are of limited value because they exclude certain items that may have a material impact on reported financial results[24](index=24&type=chunk) - The presentation of this additional information is not intended to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP[24](index=24&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) This statement presents GAAP results for the three and six months ended June 30, 2025, compared to the prior year Condensed Consolidated Statements of Income (GAAP) | Metric (millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $651.6 | $638.5 | $1,237.0 | $1,249.3 | | Cost of goods sold | $306.3 | $283.4 | $585.7 | $568.2 | | Gross profit | $345.3 | $355.1 | $651.3 | $681.1 | | Selling, general and administrative expense | $207.7 | $194.7 | $416.5 | $409.6 | | Research and development expense | $60.5 | $58.9 | $134.0 | $125.3 | | Income from operations | $77.1 | $101.5 | $100.8 | $146.2 | | Interest expense | $12.6 | $12.3 | $24.6 | $24.5 | | Foreign currency exchange (gains) losses, net | $1.1 | $(1.7) | $(1.6) | $(3.7) | | (Gains) losses from change in fair market value of equity securities and loan receivable | $(334.4) | $2,895.4 | $(366.2) | $2,473.2 | | Other income, net | $(16.2) | $(18.2) | $(53.4) | $(52.6) | | Income (loss) before income taxes | $414.0 | $(2,786.3) | $497.4 | $(2,295.2) | | (Provision for) benefit from income taxes | $(96.2) | $620.8 | $(115.6) | $513.6 | | Net income (loss) | $317.8 | $(2,165.5) | $381.8 | $(1,781.6) | | Basic earnings (loss) per share | $11.67 | $(76.26) | $13.84 | $(62.61) | | Diluted earnings (losses) per share | $11.67 | $(76.26) | $13.84 | $(62.61) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's financial position as of June 30, 2025, compared to December 31, 2024 Condensed Consolidated Balance Sheets (GAAP) | Metric (millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current assets:** | | | | Cash and cash equivalents | $369.3 | $488.1 | | Short-term investments | $1,004.5 | $1,176.4 | | Accounts receivable, net | $469.9 | $452.5 | | Inventories, net | $798.8 | $760.0 | | Other current assets | $168.6 | $153.3 | | **Total current assets** | **$2,811.1** | **$3,030.3** | | Property, plant and equipment, net | $549.7 | $528.1 | | Operating lease right-of-use assets | $190.4 | $160.5 | | Goodwill, net | $581.6 | $410.5 | | Purchased intangibles, net | $396.9 | $293.6 | | Other investments | $5,576.5 | $4,839.2 | | Other assets | $107.9 | $101.9 | | **Total assets** | **$10,214.1** | **$9,364.1** | | **Current liabilities:** | | | | Accounts payable, accrued payroll and employee benefits | $297.1 | $246.5 | | Current maturities of long-term debt | $1.3 | $1.2 | | Income and other taxes payable | $36.2 | $31.2 | | Other current liabilities | $214.3 | $188.9 | | **Total current liabilities** | **$548.9** | **$467.8** | | Long-term debt, net of current maturities | $1,201.1 | $1,200.4 | | Other long-term liabilities | $1,335.4 | $1,126.6 | | **Total liabilities** | **$3,085.4** | **$2,794.8** | | **Total stockholders' equity** | **$7,128.7** | **$6,569.3** | | **Total liabilities and stockholders' equity** | **$10,214.1** | **$9,364.1** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 Condensed Consolidated Statements of Cash Flows (GAAP) | Metric (millions) | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Cash flows from operating activities:** | | | | Net cash provided by operating activities | $246.4 | $167.4 | | **Cash flows from investing activities:** | | | | Payments for acquisitions | $(216.7) | — | | Payments for purchases of marketable securities and investments | $(306.6) | $(654.5) | | Proceeds from sales and maturities of marketable securities and investments | $490.8 | $662.9 | | Other investing activities | $(80.0) | $(82.4) | | Net cash used in investing activities | $(112.5) | $(74.0) | | **Cash flows from financing activities:** | | | | Payments on long-term debt | $(0.3) | $(0.3) | | Payments for purchases of treasury stock | $(242.1) | $(105.7) | | Other financing activities | $8.4 | $9.4 | | Net cash used in financing activities | $(234.0) | $(96.6) | | Effect of foreign exchange rate changes on cash | $(18.0) | $6.5 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(118.1) | $3.3 | | Cash, cash equivalents and restricted cash at beginning of period | $489.8 | $404.4 | | Cash, cash equivalents and restricted cash at end of period | $371.7 | $407.7 | Reconciliation of GAAP to Non-GAAP Measures [Income Statement Adjustments](index=8&type=section&id=Income%20Statement%20Adjustments) This section reconciles GAAP to non-GAAP income statement items for Q2 and YTD 2025 and 2024 Reconciliation of GAAP to Non-GAAP Gross Profit | Metric (millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP gross profit | $345.3 | $355.1 | $651.3 | $681.1 | | Amortization of purchased intangibles | $4.5 | $4.4 | $8.9 | $8.9 | | Restructuring (benefits) costs | $0.1 | $0.6 | $4.7 | $1.1 | | **Non-GAAP gross profit** | **$349.9** | **$360.1** | **$664.9** | **$691.1** | | GAAP gross margin | 53.0% | 55.6% | 52.7% | 54.5% | | **Non-GAAP gross margin** | **53.7%** | **56.4%** | **53.8%** | **55.3%** | Reconciliation of GAAP to Non-GAAP Income from Operations | Metric (millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP income from operations | $77.1 | $101.5 | $100.8 | $146.2 | | Amortization of purchased intangibles | $5.2 | $5.2 | $10.2 | $10.8 | | Acquisition related (benefits) costs | $2.8 | $0.2 | $2.8 | $0.4 | | Restructuring (benefits) costs | $2.4 | $(1.5) | $35.6 | $5.6 | | Other non-recurring items (2) | $1.1 | $1.5 | $2.2 | $3.0 | | **Non-GAAP income from operations** | **$88.6** | **$106.9** | **$151.6** | **$166.0** | | GAAP operating margin | 11.8% | 15.9% | 8.1% | 11.7% | | **Non-GAAP operating margin** | **13.6%** | **16.7%** | **12.3%** | **13.3%** | Reconciliation of GAAP to Non-GAAP Net Income (Loss) | Metric (millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP net income (loss) | $317.8 | $(2,165.5) | $381.8 | $(1,781.6) | | Amortization of purchased intangibles | $5.2 | $5.2 | $10.2 | $10.8 | | Acquisition related (benefits) costs | $2.8 | $0.2 | $2.8 | $0.4 | | Restructuring (benefits) costs | $2.4 | $(1.5) | $35.6 | $5.6 | | (Gains) losses from change in fair market value of equity securities and loan receivable | $(334.4) | $2,895.4 | $(366.2) | $2,473.2 | | (Gains) losses on equity-method investments | $0.7 | $0.9 | $(0.8) | $1.7 | | Other non-recurring items (2) | $1.1 | $1.5 | $2.2 | $3.0 | | Income tax effect of non-GAAP adjustments (1) | $75.4 | $(647.9) | $76.4 | $(559.5) | | **Non-GAAP net income** | **$71.0** | **$88.3** | **$142.0** | **$153.6** | | GAAP diluted income (loss) per share | $11.67 | $(76.26) | $13.84 | $(62.61) | | **Non-GAAP diluted income per share** | **$2.61** | **$3.11** | **$5.15** | **$5.39** | [Adjusted EBITDA](index=10&type=section&id=Adjusted%20EBITDA) This section reconciles GAAP net income (loss) to Adjusted EBITDA for Q2 and YTD 2025 and 2024 Reconciliation of Net Income (Loss) to Adjusted EBITDA | Metric (millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP net income (loss) | $317.8 | $(2,165.5) | $381.8 | $(1,781.6) | | Interest expense | $12.6 | $12.3 | $24.6 | $24.5 | | (Provision for) benefit from income taxes | $96.2 | $(620.8) | $115.6 | $(513.6) | | Depreciation and amortization | $40.6 | $36.4 | $78.7 | $73.5 | | Foreign currency exchange (gains) losses, net | $1.1 | $(1.7) | $(1.6) | $(3.7) | | Other income, net | $(16.2) | $(18.2) | $(53.4) | $(52.6) | | (Gains) losses from change in fair market value of equity securities and loan receivable | $(334.4) | $2,895.4 | $(366.2) | $2,473.2 | | Dividend from Sartorius AG | — | — | $17.6 | $17.9 | | Acquisition related (benefits) costs | $2.8 | $0.2 | $2.8 | $0.4 | | Restructuring (benefits) costs | $2.4 | $(1.5) | $35.6 | $5.6 | | Other non-recurring items (2) | $1.1 | $1.5 | $2.2 | $3.0 | | **Adjusted EBITDA** | **$124.0** | **$138.1** | **$237.7** | **$246.6** | | Adjusted EBITDA Margin | 19.0% | 21.6% | 19.2% | 19.7% | [Free Cash Flow](index=11&type=section&id=Free%20Cash%20Flow) This section reconciles GAAP net cash from operating activities to free cash flow for Q2 and YTD 2025 and 2024 Reconciliation of Free Cash Flow | Metric (millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP net cash provided by operating activities | $116.5 | $97.7 | $246.4 | $167.4 | | Payments for property, plant, and equipment | $(45.7) | $(42.3) | $(80.1) | $(82.5) | | **Free cash flow** | **$70.8** | **$55.4** | **$166.3** | **$84.9** | [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call and Webcast](index=2&type=section&id=Conference%20Call%20and%20Webcast) Bio-Rad will host a conference call and webcast on July 31, 2025, to discuss Q2 2025 results and outlook - The conference call is scheduled for **July 31, 2025, at 2:00 PM Pacific Time (5:00 PM Eastern Time)**[14](index=14&type=chunk) - Dial-in numbers are (800) 715-9871 within the U.S. or (+1) (646) 307-1963 outside the U.S., with access code 9562470[14](index=14&type=chunk) - A live webcast and supplemental earnings presentation slides will be available in the "Events & Presentations" section of the company's website's Investor Relations area[15](index=15&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines risks and uncertainties related to forward-looking statements and disclaims any update obligation - Statements concerning future financial performance or results are forward-looking and involve risks and uncertainties[29](index=29&type=chunk) - Risks include international operations, global economic and geopolitical conditions, tariffs or other trade barriers, reductions in customer government funding or capital expenditures, uncertainty of a biopharma recovery, international legal and regulatory risks, ability to develop and market new or improved products, ability to compete effectively, foreign currency fluctuations, ability to successfully integrate acquired companies, products or technologies, supply chain issues, product quality and liability issues, changes in the healthcare industry, and natural disasters and other catastrophic events beyond the company's control[29](index=29&type=chunk) - Bio-Rad Laboratories, Inc, assumes no obligation to update these forward-looking statements[29](index=29&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) This section provides contact details for investor relations and corporate communications - Investor Contact: Edward Chung, Investor Relations, 510-741-6104, ir@bio-rad.com[30](index=30&type=chunk) - Media Contact: Anna Gralinska, Corporate Communications, 510-741-6643, cc@bio-rad.com[30](index=30&type=chunk)

Financial Performance - Net sales for Q1 2025 were $585.4 million, a decrease of 4.2% from $610.8 million in Q1 2024[117] - Life Science segment sales decreased by 5.4% to $228.6 million in Q1 2025, while Clinical Diagnostics segment sales decreased by 3.2% to $356.8 million[118][119] - Consolidated gross margin for Q1 2025 was 52.3%, down from 53.4% in Q1 2024, with Life Science segment gross margin increasing by 1.7 percentage points and Clinical Diagnostics segment gross margin decreasing by 2.9 percentage points[120] Research and Development - Research and development expense increased to $73.5 million, or 12.6% of sales, compared to $66.4 million, or 10.9% of sales in Q1 2024[122] Cash Flow and Investments - Net cash provided by operations was $129.9 million for Q1 2025, up from $69.8 million in Q1 2024[131] - The company had $1.66 billion in cash, cash equivalents, and short-term investments as of March 31, 2025[129] Taxation - The effective income tax rate increased to 23.3% in Q1 2025 from 21.8% in Q1 2024, primarily due to the geographical mix of earnings[127] Share Repurchase - The company repurchased 399,295 shares of Class A common stock for $100.9 million under the 2023 Share Repurchase Program[135] Foreign Currency Impact - Foreign currency exchange gains for Q1 2025 were $2.7 million, compared to $2.0 million in Q1 2024[124] Market Outlook - The company expects ongoing challenges in the biopharma market and reduced government spending to continue impacting business through the rest of 2025[111]

Financial Performance - First-quarter 2025 total net sales were $585.4 million, a decrease of 4.2% compared to $610.8 million in Q1 2024[5] - Life Science segment net sales for Q1 2025 were $228.6 million, down 5.4% year-over-year, primarily due to challenges in the academic research market[6] - Clinical Diagnostics segment net sales for Q1 2025 were $356.8 million, a decrease of 3.2% compared to the same period in 2024[7] - Net sales for Q1 2025 were $585.4 million, a decrease of 4.4% compared to $610.8 million in Q1 2024[30] - Gross profit for Q1 2025 was $306.0 million, representing a gross margin of 52.3%, down from 53.4% in Q1 2024[30] - Net income for Q1 2025 was $64.0 million, a significant decline of 83.3% from $383.9 million in Q1 2024[30] - Basic earnings per share for Q1 2025 were $2.29, compared to $13.46 in Q1 2024[30] Margins and Income - First-quarter gross margin was 52.3%, down from 53.4% in Q1 2024[8] - Non-GAAP net income for Q1 2025 was $71.0 million, or $2.54 per share, compared to $65.3 million, or $2.30 per share, in Q1 2024[11] - The estimated non-GAAP operating margin for 2025 is now expected to be approximately 10.0% to 12.0%, down from the previous expectation of 13.0% to 13.5%[12] - Non-GAAP gross profit for Q1 2025 was $315.0 million, with a margin of 53.8%, compared to $330.9 million and 54.2% in Q1 2024[37] - Adjusted EBITDA stands at $113.7 million, reflecting a 19.4% margin, compared to $108.4 million, which is a 17.7% margin in the previous period[39] - GAAP income from operations is $23.7 million, a 4.0% margin, compared to $44.6 million, which is a 7.3% margin in the prior period[38] Tax and Restructuring - The effective tax rate for Q1 2025 was 23.3%, compared to 21.8% in Q1 2024[10] - The company incurred restructuring costs of $33.2 million in the current period, compared to $7.1 million in the previous period[38] - The company reported a provision for income taxes of $(19.4) million, compared to $(107.2) million in the previous period[39] Cash Flow and Assets - Cash received from customers in Q1 2025 was $640.0 million, slightly up from $638.3 million in Q1 2024[34] - Net cash provided by operating activities in Q1 2025 was $129.9 million, an increase of 86.1% from $69.8 million in Q1 2024[34] - Total assets as of March 31, 2025, were $9,526.9 million, up from $9,364.1 million at the end of 2024[32] - Total stockholders' equity increased to $6,679.4 million as of March 31, 2025, compared to $6,569.3 million at the end of 2024[32] Market Outlook - Bio-Rad is moderating its full-year 2025 outlook, expecting non-GAAP, currency-neutral revenue to decline by approximately 1.0% to grow by 1.5%[12] - Bio-Rad remains committed to advancing growth and margin expansion initiatives despite current market uncertainties[3] Investment and Fair Market Value - The company recognized a change in the fair market value of its investment in Sartorius AG, contributing to a net income of $64.0 million in Q1 2025[9] - The company reported losses from changes in fair market value of equity securities and loan receivable amounting to $(31.8) million, compared to $(422.2) million in the previous period[38] GAAP and Non-GAAP Measures - GAAP net income for the current period is $64.0 million, representing a 10.9% increase, compared to $383.9 million, which is a 62.9% increase in the previous period[38] - Non-GAAP net income is reported at $71.0 million, a 12.1% increase, versus $65.3 million, which is a 10.7% increase from the prior period[38] - GAAP diluted income per share is $2.29, while non-GAAP diluted income per share is $2.54, compared to $13.45 and $2.30 respectively in the prior period[38] - The company does not provide a reconciliation of non-GAAP financial expectations to GAAP measures due to the unpredictable nature of future charges[41]

Financial Performance - Life Science and Clinical Diagnostics segments generated 40% and 60% of consolidated net sales, respectively, for the year ended December 31, 2024[10]. - Sartorius reported sales revenue of €3,395.7 million and a net profit of €290.0 million for the year ended December 31, 2023[45]. - Bio-Rad had $1.20 billion in principal amount of fixed-rate long-term debt outstanding as of December 31, 2024[181]. Revenue Sources - Approximately 41% of consolidated net sales were generated from the U.S., while 59% came from international locations, with Europe being the largest region[10]. - The worldwide sales for products in the Life Science market are estimated at approximately $19 billion, while the Clinical Diagnostics market is estimated at approximately $16 billion[12][14]. - The installed base of diagnostic test systems creates a recurring revenue source through the sale of test kits for each sample analyzed[14]. - The company estimates that revenue in the Clinical Diagnostics segment is highly recurring due to standardization of test methodologies[14]. Employee and R&D Information - The company employs around 950 employees focused on research and development, continuously developing new products and applications[26]. - Approximately 7,700 employees are employed globally, with 48% in the Americas, 35% in Europe, the Middle-East and Africa, and 17% in Asia Pacific[37]. Regulatory and Compliance - The company is subject to various regulatory requirements, including compliance with FDA regulations and international standards[27][30]. Investment and Assets - As of December 31, 2024, the fair value of the investment in Sartorius was $4,469.2 million, representing approximately 38% of the outstanding ordinary shares and 28% of the preference shares[43]. - Sartorius had current assets of €1,956.9 million and non-current assets of €7,798.5 million as of December 31, 2023[45]. - Bio-Rad's investment in Sartorius is accounted for at fair market value and is not included in the consolidated financial statements[43]. Financial Risk Management - Bio-Rad's financial risk management program aims to reduce variance in expected cash flows arising from foreign exchange rate and interest rate changes[175]. - A hypothetical 10% depreciation/appreciation of foreign currencies relative to the U.S. dollar would result in an unrealized gain/loss of $32.1 million on Bio-Rad's derivative position as of December 31, 2024[179]. - A hypothetical increase or decrease in interest rates by 50 and 100 basis points would have resulted in a decrease or increase in the fair value of Bio-Rad's net investment position of approximately $10.9 million and $21.7 million, respectively[180]. - A 10% depreciation/appreciation on the quoted stock prices for ordinary and preference shares of Sartorius at December 31, 2024, would result in an approximate loss/gain of $0.45 billion reported in the financial statement[182]. Distribution Channels - The company has direct distribution channels in over 36 countries outside the United States, supplemented by distributors and agents in various locations[9]. Intellectual Property - The company owns over 2,150 U.S. and international patents, viewing them as valuable assets for product development[16].

Sales Performance - Fourth-quarter 2024 total net sales were $667.5 million, a decrease of 2.0% compared to $681.2 million in Q4 2023[4] - Life Science segment net sales for Q4 2024 were $275.0 million, a decline of 5.5% year-over-year, primarily due to weakness in the biotech and biopharma markets[5] - Clinical Diagnostics segment net sales for Q4 2024 were $392.5 million, an increase of 0.9% compared to the same period in 2023, driven by demand for quality control and blood typing products[6] - Full-year 2024 net sales decreased 3.9% to $2,566.5 million compared to $2,671.2 million in 2023[12] - Full-year 2024 reported net sales for the Life Science segment were $1,028.1 million, a decrease of 12.6% year-over-year[13] - Full-year 2024 reported net sales for the Clinical Diagnostics segment were $1,537.9 million, an increase of 3.7% compared to the prior year[13] Financial Results - The company experienced a net loss of $715.8 million in Q4 2024, compared to a net income of $349.7 million in Q4 2023, resulting in a basic loss per share of $25.57[37] - For the full year 2024, Bio-Rad's revenues totaled $2.566 billion, down from $2.671 billion in 2023, marking a decline of 3.9%[37] - Non-GAAP net income for 2024 was $291.1 million, or $10.31 per share, compared to $345.2 million, or $11.78 per share in 2023[18] - GAAP net income for the period was $(715.8) million, a decrease of 107.2% compared to the previous year[48] - The company reported a significant loss of $(1,844.2) million in GAAP net income for the year, a decrease of 71.9%[48] Margins and Expenses - Full-year 2024 gross margin was 53.7%, compared to 53.4% in 2023[14] - GAAP gross profit for Q4 2024 was $342.0 million, representing 51.2% of revenue, compared to $366.3 million and 53.8% in Q4 2023[45] - Non-GAAP gross profit for the year ended December 31, 2024, was $1,411.6 million, or 55.0% of revenue, up from $1,448.3 million and 54.2% in the previous year[45] - GAAP income from operations for Q4 2024 was $58.4 million, or 8.7% of revenue, down from $95.3 million and 14.0% in Q4 2023[46] - Non-GAAP income from operations for the year ended December 31, 2024, was $331.3 million, or 12.9% of revenue, compared to $378.9 million and 14.2% in the previous year[46] - GAAP research and development expense for Q4 2024 was $79.6 million, compared to $63.9 million in Q4 2023[46] - Non-GAAP research and development expense for the year ended December 31, 2024, was $281.8 million, up from $254.8 million in the previous year[46] - GAAP selling, general and administrative expense for Q4 2024 was $204.0 million, slightly down from $207.1 million in Q4 2023[45] - Non-GAAP selling, general and administrative expense for the year ended December 31, 2024, was $798.5 million, compared to $814.6 million in the previous year[45] Future Outlook - For full-year 2025, the company expects non-GAAP, currency-neutral revenue growth of approximately 1.5% to 3.5%[20] - The company expects a non-GAAP operating margin of approximately 13.0% to 13.5% for 2025[34] - The anticipated acquisition of Stilla Technologies is expected to close by the end of Q3 2025, enhancing Bio-Rad's digital PCR product portfolio[22] - The anticipated acquisition of Stilla Technologies is expected to further Bio-Rad's planned transformation and commercial excellence[34] - The company expects continued investment in new products and technologies to drive future growth and market expansion[46] - The company noted that future financial expectations are subject to significant uncertainty and cannot be reasonably predicted[51] Cash Flow and Assets - Cash and cash equivalents increased to $488.1 million as of December 31, 2024, compared to $403.8 million at the end of 2023[40] - The company reported a net cash provided by operating activities of $455.2 million for the year ended December 31, 2024, compared to $374.9 million in 2023[42] - Bio-Rad's total assets decreased to $9.364 billion in 2024 from $12.299 billion in 2023, a decline of 23.6%[40] Restructuring and Costs - The company incurred restructuring costs of $14.7 million in the current period, compared to $2.1 million in the previous year[48] - Forecasted non-GAAP operating margin for 2025 excludes 87 basis points related to amortization of purchased intangibles[51] Share Performance - The company reported a diluted non-GAAP income per share of $2.90, compared to $3.10 in the previous year[48] - The weighted average shares used in the non-GAAP diluted income per share calculation were 28,025 million[48] Other Financial Metrics - Adjusted EBITDA for the current period was $126.1 million, reflecting an 18.9% margin, compared to $136.8 million and a 20.1% margin in the prior year[48] - The company reported a GAAP loss before income taxes of $908.9 million for Q4 2024, compared to a profit of $428.4 million in Q4 2023[46] - The company experienced gains from changes in the fair market value of equity securities and loan receivables amounting to $976.5 million[48]

Financial Performance - Net sales for Q3 2024 were $649.7 million, a 2.8% increase from $632.1 million in Q3 2023, with a 3.4% increase on a currency neutral basis [123]. - Net sales for the first nine months of 2024 were $1.90 billion, a decrease of 4.6% from $1.99 billion in the same period of 2023, with a 4.0% decrease on a currency neutral basis [135]. - Life Science segment sales for Q3 2024 were $260.9 million, a decrease of 1.0% year-over-year, with a 0.6% decrease on a currency neutral basis [124]. - Life Science segment sales for the first nine months of 2024 were $753.1 million, a decrease of 15.1% year-over-year, with a 14.8% decrease on a currency neutral basis [136]. - Clinical Diagnostics segment sales for Q3 2024 were $388.8 million, a 5.6% increase year-over-year, with a 6.4% increase on a currency neutral basis [125]. - Clinical Diagnostics segment sales for the first nine months of 2024 were $1.1 billion, an increase of 4.1% year-over-year, with a 4.8% increase on a currency neutral basis [137]. Expenses and Margins - Consolidated gross margin for Q3 2024 was 54.8%, up from 53.1% in Q3 2023, driven by cost control measures and product mix [126]. - R&D expense for Q3 2024 was $91.0 million, or 14.0% of sales, compared to $43.5 million, or 6.9% of sales in Q3 2023, primarily due to a one-time acquired in-process R&D expense [128]. - SG&A expense for the first nine months of 2024 was $610.0 million, or 32.1% of sales, down from $634.6 million, or 31.9% of sales in the same period of 2023 [141]. Cash Flow and Investments - Net cash provided by operations increased to $331.0 million for the nine months ended September 30, 2024, compared to $293.9 million for the same period in 2023 [152]. - Net cash used in investing activities rose to $129.7 million for the nine months ended September 30, 2024, from $52.0 million in 2023, primarily due to higher payments for acquired in-process research and development [153]. - Net cash used in financing activities decreased to $192.6 million for the nine months ended September 30, 2024, down from $225.0 million in 2023, mainly due to lower payments for treasury stock purchases [154]. - During the third quarter of 2024, the company repurchased 330,381 shares of Class A common stock for $97 million under the 2023 Share Repurchase Program, with $577.1 million remaining available for future repurchases [156]. Tax and Financial Position - Effective income tax rate for Q3 2024 was 24.2%, compared to 22.5% in Q3 2023, primarily affected by the geographical mix of earnings [134]. - As of September 30, 2024, the company had $1.63 billion in cash, cash equivalents, and short-term investments, with approximately 16% held in foreign subsidiaries [150]. - The company had no outstanding borrowings under its $200.0 million unsecured Revolving Credit Agreement as of September 30, 2024 [148]. Operational Insights - The increase in operating cash flows was primarily due to lower cash paid to suppliers and employees, despite lower cash received from customers [152]. - The company regularly monitors the mix of domestic and foreign cash flows as part of its ongoing liquidity assessments [150]. - The company intends to repatriate certain foreign earnings as long as local laws do not restrict such actions and there are no substantial incremental costs [151]. - There have been no material changes in market risk disclosures from the previous annual report as of September 30, 2024 [168].

Financial Performance - Total net sales for Q3 2024 were $649.7 million, a 2.8% increase from $632.1 million in Q3 2023[2] - Net income for Q3 2024 was $653.2 million, significantly higher than $106.3 million in Q3 2023, resulting in earnings per diluted share of $23.34 compared to $3.64[6][11] - Gross margin for Q3 2024 was 54.8%, up from 53.1% in Q3 2023[5] - Basic earnings per share for Q3 2024 were $23.37, compared to $3.65 in Q3 2023, showing strong profitability growth[34] - GAAP net income for the quarter was $653,172,000, a significant increase of 100.5% compared to $106,257,000 in the previous year[44] Segment Performance - Life Science segment net sales decreased by 1.0% to $260.9 million compared to Q3 2023, while Clinical Diagnostics segment net sales increased by 5.6% to $388.8 million[3][4] - The increase in Clinical Diagnostics sales was primarily driven by higher demand for quality control products and a favorable comparison for immunology products[4] Margins and Expenses - Non-GAAP gross margin was 55.6% for Q3 2024, compared to 53.9% in Q3 2023[9] - Non-GAAP operating margin is estimated to be between 12.75% to 13.25% for the full year 2024[13] - Research and development expenses increased significantly to $90,997,000 in Q3 2024 from $43,535,000 in Q3 2023, indicating a focus on innovation[34] - GAAP income from operations was $64,466,000, reflecting a margin of 9.9%, compared to 14.4% in the prior year[43] - Non-GAAP income from operations was $73,294,000, with a margin of 11.3%, compared to 12.9% year-over-year[43] Cash Flow and Assets - Cash provided by operating activities for Q3 2024 was $331,048,000, an increase from $293,896,000 in Q3 2023[38] - Total assets decreased to $10,603,472,000 as of September 30, 2024, from $12,299,070,000 at the end of 2023[36] - Total stockholders' equity decreased to $7,487,859,000 as of September 30, 2024, from $8,741,133,000 at the end of 2023[36] Tax and Compliance - The effective tax rate for Q3 2024 was 24.2%, up from 22.5% in Q3 2023[7] - The company is focused on compliance with the European Union's In Vitro Diagnostics Regulation (IVDR) for previously approved products, indicating a strategic move towards regulatory alignment[46] Future Outlook - The company expects non-GAAP revenue to decline by approximately 2.5% to 4.0% on a currency-neutral basis for the full year 2024[13] - The forecasted non-GAAP operating margin for 2024 excludes 85 basis points related to amortization of purchased intangibles, indicating a focus on maintaining operational efficiency[47] - The company anticipates future gains and charges that are difficult to predict, including those related to foreign currency fluctuations and legal matters[47] Other Financial Metrics - Non-GAAP net income was $56,362,000, representing 8.7% of revenue, compared to 10.8% in the prior year[44] - Adjusted EBITDA for the current period was $106,861, reflecting a 16.4% margin, while the previous period's adjusted EBITDA was $112,736 with a 17.8% margin[45] - The company reported a significant loss from changes in fair market value of equity securities amounting to $(792,888,000)[44] - Interest expense for the current period was $12,174, slightly down from $12,398 in the previous period[45] - The company incurred restructuring costs of $1,441, which is a decrease from $1,532 in the previous period[45] - Other non-recurring items amounted to $1,663, compared to $1,877 in the previous period[45]

Financial Performance - Net sales for Q2 2024 were $638.5 million, a decrease of 6.3% from $681.1 million in Q2 2023, with a currency neutral decrease of approximately 5.4%[110] - Net sales for the first six months of 2024 were $1.25 billion, an 8.0% decrease from $1.36 billion in the first six months of 2023[117] - Life Science segment sales for Q2 2024 were $250.5 million, down 16.5% year-over-year, driven by ongoing weakness in the biotech and biopharma markets[110] - Life Science segment sales for the first six months of 2024 were $492.2 million, down 21.1% year-over-year, with a currency neutral decrease of 20.8%[117] - Clinical Diagnostics segment sales for Q2 2024 were $387.9 million, an increase of 2.1% year-over-year, with a currency neutral increase of 3.2%[111] - Clinical Diagnostics segment sales for the first six months of 2024 were $756.6 million, an increase of 3.3% year-over-year, with a currency neutral increase of 4.0%[118] Expenses and Margins - Consolidated gross margin for Q2 2024 was 55.6%, up from 53.2% in Q2 2023, driven by cost control measures and product mix[112] - Selling, general and administrative (SG&A) expense for Q2 2024 was $194.7 million, or 30.5% of sales, compared to $207.8 million, or 30.5% of sales in Q2 2023[113] - Research and development (R&D) expense for Q2 2024 was $58.9 million, or 9.2% of sales, down from $65.0 million, or 9.5% of sales in Q2 2023[113] Cash Flow and Investments - Net cash provided by operations decreased to $167.4 million for the six months ended June 30, 2024, down from $196.2 million in 2023, primarily due to lower cash received from customers and higher income tax paid[125] - Net cash used in investing activities increased to $74.0 million for the six months ended June 30, 2024, compared to $42.5 million in 2023, driven by higher capital expenditures and the timing of marketable securities transactions[126] - Net cash used in financing activities decreased to $96.6 million for the six months ended June 30, 2024, from $198.4 million in 2023, mainly due to lower treasury stock purchases[127] Share Repurchase and Stock Activity - During Q2 2024, the company repurchased 346,226 shares of Class A common stock for $100 million under the 2023 Share Repurchase Program, with $174.0 million remaining available for future repurchases[128] - The board of directors authorized an increase in the 2023 Share Repurchase Program by an additional $500 million for repurchasing outstanding common stock[128] - The company reissued 21,017 shares of Class A treasury stock at a total cost of $7.4 million during Q2 2024 to fulfill employee grants[128] Market Risk and Accounting - There were no material changes in market risk disclosures compared to the previous annual report for the year ended December 31, 2023[133] - The company did not adopt any new accounting pronouncements during the three and six months ended June 30, 2024[132] Losses - Losses from change in fair market value of equity securities and loan receivable were $2.90 billion in Q2 2024, compared to $1.60 billion in Q2 2023[115]

Financial Performance - Total net sales for Q2 2024 were $638.5 million, a decrease of 6.3% compared to $681.1 million in Q2 2023[1] - Life Science segment net sales decreased by 16.5% to $250.5 million, primarily due to weakness in biotech and biopharma markets[2] - Clinical Diagnostics segment net sales increased by 2.1% to $387.9 million, driven by demand for quality control and blood typing products[2] - The company reported a net loss of $2,165.5 million, or $76.26 per share, compared to a net loss of $1,162.3 million, or $39.59 per share, in the same period last year[5] - Non-GAAP net income for Q2 2024 was $88.5 million, or $3.11 per share, compared to $88.5 million, or $3.00 per share, in Q2 2023[6] - The company expects non-GAAP revenue to decline by approximately 2.5% to 4.0% for the full year 2024, a revision from previous growth estimates of 1.0% to 2.5%[7] - Non-GAAP operating margin is estimated to be about 12.0% to 13.0%, down from prior estimates of 13.5% to 14.0%[7] Gross Margin and Profitability - Gross margin for Q2 2024 was 55.6%, up from 53.2% in Q2 2023[5] - GAAP gross profit for the quarter was $355,119 million, representing a gross margin of 55.6%[31] - Non-GAAP gross profit was $360,206 million, with a gross margin of 56.4%[31] - GAAP income from operations was $101,496 million, with an operating margin of 15.9%[34] - Non-GAAP income from operations reached $107,058 million, reflecting an operating margin of 16.8%[34] - Adjusted EBITDA reached $138,208, showing a growth of 21.6% compared to the prior year[35] Expenses and Liabilities - Research and development expenses for Q2 2024 were $58,904 thousand, a decrease of 9.5% from $65,042 thousand in Q2 2023[24] - Total liabilities decreased to $2,909,659 thousand as of June 30, 2024, down from $3,557,937 thousand at the end of 2023[26] - The company incurred restructuring costs of $1,421 million during the period[31] - Non-GAAP selling, general and administrative expenses were $193,780 million[31] Cash Flow and Equity - Cash provided by operating activities for Q2 2024 was $167,438 thousand, a decrease from $196,185 thousand in Q2 2023[28] - The company reported a net cash increase of $3,346 thousand for Q2 2024, compared to a decrease of $(44,063) thousand in Q2 2023[28] - Total stockholders' equity decreased to $6,778,787 thousand as of June 30, 2024, from $8,741,133 thousand at the end of 2023[26] Tax and Share Repurchase - The effective tax rate for Q2 2024 was 22.3%, slightly down from 22.5% in Q2 2023[3] - The board authorized an increase of $500 million to the 2023 Share Repurchase Program, bringing the total available for repurchases to approximately $578 million[8] Non-GAAP Measures - The company utilizes non-GAAP financial measures to provide additional insights into its operational performance, excluding certain non-recurring items[29] - The company does not provide a reconciliation of non-GAAP financial expectations to GAAP measures due to the unpredictable nature of future charges[37] - The forecasted non-GAAP operating margin excludes 89 basis points related to amortization of purchased intangibles[37] Market and Foreign Exchange - The company experienced a foreign currency exchange loss of $(1,699) during the reporting period[35] - The company experienced a significant loss from changes in fair market value of equity securities amounting to $2,895,355 million[34] - Gains from changes in fair market value of equity securities and loan receivable amounting to $2,895,355[35] Share Metrics - The weighted average shares used in the non-GAAP net income per share calculation were 28,395, compared to 29,355 in the previous period[35] - The diluted loss per share was reported at $(76.26), a significant increase from $(39.59) in the previous period[35]