Financial Performance - Q3'25 GAAP revenue reached $10238 million, a 12% increase compared to Q3'24 [67] - Q3'25 Non-GAAP revenue also reached $10238 million, with a 12% increase or 04% on a constant currency basis [68] - The company's full-year 2025 revenue guidance is between $4081 million and $4091 million, representing a 13% to 15% increase [71] - Non-GAAP diluted EPS for the full year 2025 is projected to be between $423 and $426, a 37% to 44% increase [71] Segment Performance - Diagnostics revenue in Q3'25 was $4489 million, a 09% increase [69] - Breast Health revenue in Q3'25 was $3652 million, a decrease of 58% [69] - GYN Surgical revenue in Q3'25 was $1784 million, a 63% increase [69] - Skeletal Health revenue in Q3'25 was $313 million, a substantial increase of 621% [69] Strategic Positioning - The company's net debt leverage ratio is 06x, with $19 billion in cash and investments as of Q3'25 [59] - The company has deployed over $57 billion since FY20, including $36 billion on share repurchases and $21 billion on M&A [60] - The company aims to continue double-digit non-GAAP EPS growth, driven by mid-single-digit revenue growth, modest operating margin expansion, regular acquisitions, and meaningful buybacks [57]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q3 FY2025 Performance Highlights](index=1&type=section&id=Q3%20FY2025%20Performance%20Highlights) Hologic achieved better-than-expected revenue and Non-GAAP EPS growth in Q3 FY2025, driven by a recovery in Breast Health and solid performance in other segments, with total revenue up 1.2% to $1,023.8 million and Non-GAAP diluted EPS up 1.9% to $1.08 | Metric | Amount/Percentage | Change (YoY) | | :------------------- | :---------------- | :----------- | | **Revenue** | $1,023.8 million USD | +1.2% (+0.4% constant currency) | | **GAAP Diluted EPS** | $0.86 | +4.9% | | **Non-GAAP Diluted EPS** | $1.08 | +1.9% | | **Operating Cash Flow** | $343.2 million USD | N/A | - Company revenue and Non-GAAP EPS both exceeded prior guidance ranges[1](index=1&type=chunk)[2](index=2&type=chunk) [Financial Guidance for Q4 and Full Fiscal Year 2025](index=3&type=section&id=Financial%20Guidance%20for%20Q4%20and%20Full%20Fiscal%20Year%202025) Hologic anticipates mid-single-digit organic constant currency revenue growth (excluding COVID-19 related revenue) and faster Non-GAAP EPS growth for Q4 FY2025, updating its full-year FY2025 revenue and Non-GAAP EPS guidance Q4 FY2025 Financial Guidance | Metric | Guidance Range (million USD) | Reported Growth (%) | Constant Currency Growth (%) | Organic Growth (%) | Organic (ex-COVID-19) Growth (%) | | :---------- | :--------------------------- | :------------------ | :----------------------- | :----------------- | :------------------------------- | | **Revenue** | $1,030 - $1,040 | 4.3% - 5.3% | 3.7% - 4.7% | 2.7% - 3.7% | 3.9% - 5.0% | | **GAAP EPS** | $0.90 - $0.93 | 18.4% - 22.4% | N/A | N/A | N/A | | **Non-GAAP EPS** | $1.09 - $1.12 | 7.9% - 10.9% | N/A | N/A | N/A | Full Fiscal Year 2025 Financial Guidance (Updated) | Metric | Current Guidance (million USD) | Previous Guidance (million USD) | Reported Growth (%) | Constant Currency Growth (%) | Organic Growth (%) | Organic (ex-COVID-19) Growth (%) | | :---------- | :----------------------------- | :------------------------------ | :------------------ | :----------------------- | :----------------- | :------------------------------- | | **Revenue** | $4,081 - $4,091 | $4,050 - $4,100 | 1.3% - 1.5% | 1.1% - 1.4% | (0.5%) - (0.2%) | 0.6% - 0.8% | | **GAAP EPS** | $2.56 - $2.59 | $2.47 - $2.57 | (22.9%) - (22.0%) | N/A | N/A | N/A | | **Non-GAAP EPS** | $4.23 - $4.26 | $4.15 - $4.25 | 3.7% - 4.4% | N/A | N/A | N/A | [Detailed Financial Results - Q3 FY2025](index=2&type=section&id=Detailed%20Financial%20Results%20-%20Q3%20FY2025) [Consolidated GAAP and Non-GAAP Financial Performance](index=2&type=section&id=Consolidated%20GAAP%20and%20Non-GAAP%20Financial%20Performance) Hologic's total revenue grew 1.2% in Q3 FY2025, with GAAP gross margin increasing by 90 basis points while Non-GAAP gross margin decreased by 80 basis points due to product mix and increased reserves, leading to a 4.9% rise in GAAP diluted EPS and a 1.9% rise in Non-GAAP diluted EPS Q3 FY2025 Consolidated Financial Data | Metric | Q3 FY2025 GAAP | Q3 FY2024 GAAP | GAAP Change | Q3 FY2025 Non-GAAP | Q3 FY2024 Non-GAAP | Non-GAAP Change | | :---------------- | :------------- | :------------- | :---------- | :----------------- | :----------------- | :-------------- | | **Revenue** | $1,023.8 million USD | $1,011.4 million USD | 1.2% | $1,023.8 million USD | $1,011.4 million USD | 1.2% | | **Gross Margin** | 56.3% | 55.4% | 90 bps | 60.3% | 61.1% | (80 bps) | | **Operating Expenses** | $322.0 million USD | $316.3 million USD | 1.8% | $309.6 million USD | $302.8 million USD | 2.2% | | **Operating Margin** | 24.9% | 24.1% | 80 bps | 30.1% | 31.2% | (110 bps) | | **Net Margin** | 19.0% | 19.2% | (20 bps) | 23.8% | 24.8% | (100 bps) | | **Diluted EPS** | $0.86 | $0.82 | 4.9% | $1.08 | $1.06 | 1.9% | - GAAP gross margin growth was primarily driven by lower impairment charges, while Non-GAAP gross margin decline was influenced by product mix and increased reserves[9](index=9&type=chunk) - Non-GAAP operating margin decreased mainly due to expected profit dilution from the Endomagnetics and Gynesonics acquisitions[9](index=9&type=chunk) [Revenue Performance by Segment](index=2&type=section&id=Revenue%20Performance%20by%20Segment) Hologic's Q3 FY2025 revenue performance varied across segments, with Diagnostics revenue growing due to molecular diagnostics sales, Breast Health declining from mammography capital equipment sales, GYN Surgical revenue increasing from acquisitions and international sales, and Skeletal Health achieving significant growth [Diagnostics Segment Revenue](index=2&type=section&id=Diagnostics%20Segment%20Revenue) Total Diagnostics revenue grew 1.8% (0.9% constant currency) to $448.9 million, primarily driven by increased molecular diagnostics sales, partially offset by lower COVID-19 test sales, with organic diagnostics sales (excluding COVID-19) growing 3.9% | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | Reported Change (%) | Constant Currency Change (%) | | :-------------------------- | :---------------------- | :---------------------- | :------------------ | :--------------------------- | | **Total Diagnostics Revenue** | $448.9 | $440.8 | 1.8% | 0.9% | | **Molecular Diagnostics Revenue** | $320.5 | $310.7 | 3.2% | 2.4% | | **Organic Molecular Diagnostics (ex-COVID-19)** | $289.0 | $272.7 | 6.0% | 5.2% | | **COVID-19 Related Revenue** | $31.5 | $38.0 | (17.1%) | (17.8%) | - Molecular Diagnostics revenue growth was primarily driven by BV CV/TV and Panther Fusion assay sales[2](index=2&type=chunk) [Breast Health Segment Revenue](index=2&type=section&id=Breast%20Health%20Segment%20Revenue) Total Breast Health revenue decreased (5.1%) or (5.8%) constant currency to $365.2 million, mainly due to lower mammography capital equipment sales, partially offset by growth from Endomagnetics revenue and service contract revenue, with organic Breast Health revenue declining (10.1%) | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | Reported Change (%) | Constant Currency Change (%) | | :-------------------------- | :---------------------- | :---------------------- | :------------------ | :--------------------------- | | **Total Breast Health Revenue** | $365.2 | $385.0 | (5.1%) | (5.8%) | | **Breast Imaging Revenue** | $264.7 | $309.2 | (14.4%) | (15.0%) | | **Interventional Breast Solutions Revenue** | $100.5 | $75.8 | 32.6% | 31.8% | | **Organic Breast Health Revenue** | $345.5 | $384.5 | (10.1%) | (10.8%) | - Interventional Breast Solutions revenue growth benefited from the Endomagnetics acquisition[2](index=2&type=chunk) [GYN Surgical Segment Revenue](index=2&type=section&id=GYN%20Surgical%20Segment%20Revenue) GYN Surgical revenue increased 7.1% (6.3% constant currency) to $178.4 million, primarily driven by the acquired Gynesonics business and strong international sales, with organic GYN Surgical revenue growing 2.0% | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | Reported Change (%) | Constant Currency Change (%) | | :---------------- | :---------------------- | :---------------------- | :------------------ | :--------------------------- | | **GYN Surgical Revenue** | $178.4 | $166.6 | 7.1% | 6.3% | | **Organic GYN Surgical Revenue** | $169.9 | $166.6 | 2.0% | 1.2% | [Skeletal Health Segment Revenue](index=2&type=section&id=Skeletal%20Health%20Segment%20Revenue) Skeletal Health revenue achieved significant growth, increasing 64.7% (62.1% constant currency) to $31.3 million, with strong performance in both the U.S. and international markets | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | Reported Change (%) | Constant Currency Change (%) | | :---------------- | :---------------------- | :---------------------- | :------------------ | :--------------------------- | | **Skeletal Health Revenue** | $31.3 | $19.0 | 64.7% | 62.1% | - U.S. market grew **42.0%**, and international markets grew **108.0%** (**100.2%** constant currency)[5](index=5&type=chunk) [Other Key Financial Metrics](index=3&type=section&id=Other%20Key%20Financial%20Metrics) Hologic maintained a strong cash position and low leverage ratio, repurchased shares, and refinanced debt during the third quarter, with adjusted EBITDA slightly increasing and adjusted ROIC slightly decreasing | Metric | Amount/Ratio | | :-------------------------- | :------------- | | **Cash and Cash Equivalents at Period End** | $1.74 billion USD | | **Adjusted Net Leverage Ratio** | 0.6x | | **Adjusted EBITDA (Q3 FY25)** | $340.9 million USD | - The company repurchased **0.7 million** shares for **$36 million** during the third quarter[9](index=9&type=chunk) - The company refinanced its term loan and revolving credit facility in July, with new facilities maturing in July 2030[2](index=2&type=chunk) - Adjusted Return on Invested Capital (ROIC) was **13.9%**, a decrease of **20 basis points** year-over-year[9](index=9&type=chunk)[34](index=34&type=chunk) Q3 FY2025 Revenue by Geographic Region | Region | Revenue Share | | :----------- | :------------ | | **United States** | 74.3% | | **Europe** | 14.5% | | **Asia Pacific** | 5.9% | | **Rest of World** | 5.3% | [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The Condensed Consolidated Statements of Income show total revenue of $1,023.8 million for Q3 FY2025, a slight increase from the prior year, with net income remaining relatively stable at $194.9 million and diluted EPS at $0.86 Condensed Consolidated Statements of Income (Excerpt) | Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | **Total Revenue** | $1,023.8 million USD | $1,011.4 million USD | $3,050.9 million USD | $3,042.3 million USD | | **Gross Profit** | $576.6 million USD | $560.3 million USD | $1,534.4 million USD | $1,670.1 million USD | | **Operating Income** | $254.6 million USD | $244.0 million USD | $477.4 million USD | $652.6 million USD | | **Net Income** | $194.9 million USD | $194.5 million USD | $378.5 million USD | $610.9 million USD | | **Diluted Earnings Per Share** | $0.86 | $0.82 | $1.66 | $2.57 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, Hologic's total assets were $8,806.1 million, a decrease from September 28, 2024, with cash and cash equivalents decreasing while net property, plant, and equipment and other assets increased, and total liabilities and stockholders' equity also decreased accordingly Condensed Consolidated Balance Sheets (Excerpt) | Metric | As of June 28, 2025 (million USD) | As of September 28, 2024 (million USD) | | :-------------------------------- | :------------------------------- | :------------------------------- | | **Total Assets** | $8,806.1 | $9,156.0 | | **Cash and Cash Equivalents** | $1,735.2 | $2,160.2 | | **Total Current Assets** | $3,421.4 | $3,823.3 | | **Goodwill and Intangible Assets** | $4,286.1 | $4,287.7 | | **Total Current Liabilities** | $962.5 | $1,037.2 | | **Long-Term Debt (less current portion)** | $2,509.0 | $2,497.1 | | **Total Stockholders' Equity** | $4,842.5 | $5,130.0 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 28, 2025, net cash provided by operating activities was $702.0 million, a decrease from the prior year, with net cash used in investing activities of $350.6 million primarily for business acquisitions, and net cash used in financing activities of $778.8 million mainly for common stock repurchases Condensed Consolidated Statements of Cash Flows (Excerpt) | Metric | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | | **Net Cash Provided by Operating Activities** | $702.0 million USD | $918.2 million USD | | **Net Cash Used in Investing Activities** | $(350.6) million USD | $(185.3) million USD | | **Net Cash Used in Financing Activities** | $(778.8) million USD | $(1,051.8) million USD | | **Net Decrease in Cash and Cash Equivalents** | $(425.0) million USD | $(316.6) million USD | | **Cash and Cash Equivalents at Period End** | $1,735.2 million USD | $2,439.1 million USD | - Net business acquisitions (net of cash acquired) amounted to **$321.5 million** for the first nine months of FY2025[25](index=25&type=chunk) - Expenditures for common stock repurchases totaled **$752.9 million** for the first nine months of FY2025[25](index=25&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Hologic utilizes various Non-GAAP financial measures, including constant currency revenue, organic revenue, Non-GAAP gross margin, operating margin, net income, EPS, adjusted EBITDA, adjusted net leverage ratio, and adjusted ROIC, to supplement GAAP information, aid management decision-making, and help investors understand core business performance by excluding specific cash and non-cash items such as amortization, impairment, restructuring, and acquisition-related expenses - Non-GAAP measures supplement GAAP financial information and may differ from similar measures used by other companies[11](index=11&type=chunk) - These metrics are used by management for financial and operational decision-making, including evaluating historical performance, comparing with competitors, and determining management incentive compensation[12](index=12&type=chunk) - Non-GAAP adjustments include amortization of intangible assets, goodwill and intangible asset impairment, contingent consideration adjustments, restructuring charges, acquisition-related expenses, loss on debt extinguishment, unrealized gains and losses on forward foreign exchange contracts, and other one-time or non-recurring items[10](index=10&type=chunk) [Reconciliation of GAAP Revenue to Organic Revenue](index=10&type=section&id=Reconciliation%20of%20GAAP%20Revenue%20to%20Organic%20Revenue) This reconciliation details the process of adjusting GAAP revenue to organic revenue and organic revenue excluding COVID-19, showing Q3 FY2025 organic revenue of $988.6 million and organic revenue excluding COVID-19 of $957.1 million, reflecting the exclusion of divested businesses (Blood Screening, SSI) and acquired businesses (Endomagnetics, Gynesonics) as well as COVID-19 related sales Q3 FY2025 Revenue Reconciliation | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | | :-------------------------- | :---------------------- | :---------------------- | | **Consolidated GAAP Revenue** | $1,023.8 | $1,011.4 | | Less: Blood Screening Revenue | $(7.0) | $(7.9) | | Less: SSI Revenue | $(0.1) | $(0.5) | | Less: Endomagnetics Revenue | $(19.6) | — | | Less: Gynesonics Revenue | $(8.5) | — | | **Organic Revenue** | $988.6 | $1,003.0 | | Less: COVID-19 Test Kits | $(6.5) | $(13.3) | | Less: COVID-19 Related Revenue | $(25.0) | $(24.7) | | **Organic Revenue (ex-COVID-19)** | $957.1 | $965.0 | - Organic revenue excludes divested Blood Screening and SSI ultrasound imaging businesses, and acquired Endomagnetics and Gynesonics businesses (for the first year post-acquisition)[4](index=4&type=chunk)[10](index=10&type=chunk) [Reconciliation of GAAP to Non-GAAP Profitability Metrics](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Profitability%20Metrics) This section provides detailed reconciliations from GAAP to Non-GAAP gross profit, operating expenses, operating income, income before taxes, net income, and their respective margins, with key adjustments including amortization of acquired intangible assets, impairment charges, and restructuring costs Q3 FY2025 Gross Profit Reconciliation | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | | :-------------------------- | :---------------------- | :---------------------- | | **GAAP Gross Profit** | $576.6 | $560.3 | | Adjustments (Amortization, Impairment, etc.) | $41.1 | $57.7 | | **Non-GAAP Gross Profit** | $617.7 | $618.0 | | **GAAP Gross Margin** | 56.3% | 55.4% | | **Non-GAAP Gross Margin** | 60.3% | 61.1% | Q3 FY2025 Operating Expenses Reconciliation | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | | :-------------------------- | :---------------------- | :---------------------- | | **GAAP Operating Expenses** | $322.0 | $316.3 | | Adjustments (Amortization, Restructuring, etc.) | $(12.4) | $(13.5) | | **Non-GAAP Operating Expenses** | $309.6 | $302.8 | Q3 FY2025 Net Income and EPS Reconciliation | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | | :-------------------------- | :---------------------- | :---------------------- | | **GAAP Net Income** | $194.9 | $194.5 | | Total Adjustments | $49.2 | $56.2 | | **Non-GAAP Net Income** | $244.1 | $250.7 | | **GAAP Diluted EPS** | $0.86 | $0.82 | | **Non-GAAP Diluted EPS** | $1.08 | $1.06 | [Reconciliation of GAAP to Non-GAAP EPS Guidance](index=14&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20EPS%20Guidance) This section provides reconciliations of GAAP to Non-GAAP EPS guidance for Q4 and the full fiscal year 2025, with key adjustments including amortization of acquired intangible assets, intangible asset impairment, acquisition-related costs, restructuring, integration, and other expenses, along with their tax impacts Q4 FY2025 EPS Guidance Reconciliation | Metric | Low | High | | :-------------------------- | :--- | :--- | | **GAAP Net Earnings Per Share** | $0.90 | $0.93 | | Amortization of Acquired Intangible Assets | $0.21 | $0.21 | | Restructuring, Integration, and Other Costs | $0.02 | $0.02 | | Tax Impact of Exclusions | $(0.04) | $(0.04) | | **Non-GAAP Net Earnings Per Share** | $1.09 | $1.12 | Full FY2025 EPS Guidance Reconciliation | Metric | Low | High | | :-------------------------- | :--- | :--- | | **GAAP Net Earnings Per Share** | $2.56 | $2.59 | | Amortization of Acquired Intangible Assets | $0.85 | $0.85 | | Intangible Asset Impairment | $0.97 | $0.97 | | Acquisition Related | $0.20 | $0.20 | | Restructuring, Integration, and Other Costs | $0.10 | $0.10 | | Income Tax Related Items | $0.03 | $0.03 | | Tax Impact of Exclusions | $(0.48) | $(0.48) | | **Non-GAAP Net Earnings Per Share** | $4.23 | $4.26 | [Adjusted Return on Invested Capital (ROIC) Reconciliation](index=14&type=section&id=Adjusted%20Return%20on%20Invested%20Capital%20(ROIC)%20Reconciliation) For the trailing twelve months ended June 28, 2025, the adjusted ROIC was 13.9%, calculated by adjusting GAAP net income to Non-GAAP net operating profit after tax and dividing by average net debt plus average stockholders' equity, with adjustments for impairment charges - Adjusted Return on Invested Capital (ROIC) was **13.9%** for the trailing twelve months ended June 28, 2025[33](index=33&type=chunk)[34](index=34&type=chunk) Adjusted Return on Invested Capital Calculation (Excerpt) | Metric | Amount (million USD) | | :-------------------------- | :------------------- | | **Adjusted Net Operating Profit After Tax** | $973.2 | | **Average Net Debt Plus Average Stockholders' Equity** | $7,014.2 | - Stockholders' equity has been adjusted to remove the after-tax impact of goodwill and intangible asset impairment charges[35](index=35&type=chunk) [Net Leverage Ratio Reconciliation](index=15&type=section&id=Net%20Leverage%20Ratio%20Reconciliation) As of June 28, 2025, Hologic's net leverage ratio was 0.6x, calculated by dividing net principal debt ($784.2 million) by EBITDA for the trailing four quarters ($1,316.3 million) Net Leverage Ratio Calculation | Metric | Amount (million USD) | | :-------------------------- | :------------------- | | **Total Principal Debt** | $2,519.4 | | **Total Cash and Cash Equivalents** | $(1,735.2) | | **Net Principal Debt** | $784.2 | | **EBITDA for Trailing Four Quarters** | $1,316.3 | | **Net Leverage Ratio** | 0.6 | [Explanatory Notes to Reconciliations](index=13&type=section&id=Explanatory%20Notes%20to%20Reconciliations) This section provides detailed explanations for each adjustment in the Non-GAAP reconciliations, including amortization of acquired intangible assets, fair value remeasurement of inventory, restructuring and integration costs, acquisition-related expenses, loss on debt extinguishment, and impairment charges - Amortization of intangible assets: Reflects non-cash expenses for acquired intangible assets[31](index=31&type=chunk) - Intangible asset impairment: Includes impairment charges related to Acessa, Bolder, Mobidiag, Diagenode acquisitions, and BioZorb[31](index=31&type=chunk) - Restructuring and integration/consolidation costs: Include severance, retention, relocation costs, and legal, tax, and professional consulting services related to acquisitions and facility consolidations[31](index=31&type=chunk) - Acquisition-related expenses: Include legal, consulting, and due diligence fees incurred prior to transaction close, and accelerated vesting of unvested stock options related to the Gynesonics acquisition[31](index=31&type=chunk) [Additional Company Information](index=5&type=section&id=Additional%20Company%20Information) [About Hologic, Inc.](index=5&type=section&id=About%20Hologic%2C%20Inc.) Hologic, Inc. is an innovative medical technology company primarily dedicated to improving women's health and well-being through early detection and treatment - The company focuses on improving women's health and well-being through early detection and treatment[15](index=15&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking information involving known and unknown risks and uncertainties, with statements based on current assumptions, and actual results may differ materially due to factors such as competition, market demand, regulatory approvals, economic conditions, and supply chain issues - Forward-looking statements involve company plans, objectives, expectations, and intentions, and are subject to known and unknown risks and uncertainties[16](index=16&type=chunk) - Risks that could cause actual results to differ include competition, market developments, product demand forecasts, healthcare industry consolidation, acquisition impacts, third-party payor decisions, regulatory approvals, product defects, legal proceedings, climate change, tax legislation, global challenges (macroeconomic uncertainty, war), supply chain constraints, and cybersecurity threats[17](index=17&type=chunk) - The company expressly disclaims any obligation to publicly update or revise any such statements[18](index=18&type=chunk) [Contacts](index=6&type=section&id=Contacts) Provides contact information for Hologic's investor relations team - Investor Relations contacts: Michael Watts (Corporate Vice President) and Peter Sattler (Senior Manager)[19](index=19&type=chunk)

Core Insights - Hologic (HOLX) has a strong Breast Health business with leading market share in mammography products, but faced revenue declines of 2.1% and 6.9% in Q1 and Q2 of fiscal 2025 due to soft capital equipment sales and budget constraints among hospital customers, though growth is expected to resume in Q4 [1][9] Group 1: Business Performance - The Breast Health division's revenue decline is attributed to anticipated slowdowns in capital equipment sales and budget constraints among private and government hospitals [1][9] - Service revenues increased by 12% year-over-year in Q2, making up 21% of total revenues, indicating a shift towards more stable revenue streams [5] Group 2: Strategic Initiatives - A new leadership team has been established, focusing on separating capital and disposable product sales representatives to enhance performance [2] - Hologic has refined its end-of-life strategy for aging gantries, encouraging upgrades through a new offensive strategy [3] Group 3: Acquisitions and Market Position - The acquisition of Endomagnetics in 2024 has strengthened Hologic's position in the interventional breast health market, with a direct sales approach implemented for these products in North America [4] - Hologic's stock has declined by 20.4% over the past year, compared to a 10.5% decline in the industry [8] Group 4: Financial Metrics - Hologic is trading at a forward price-to-earnings ratio of 3.45X, below the industry average of 4.17X, indicating potential undervaluation [10] - EPS estimates for fiscal 2025 and 2026 have shown a bearish trend over the past 90 days, with current estimates at 4.19 for 2025 and 4.50 for 2026 [11][12]

Core Viewpoint - Hologic (HOLX) is expected to report a slight decline in quarterly earnings and revenues compared to the previous year, with analysts maintaining their consensus estimates over the last month [1][2]. Revenue Projections - Total revenues are forecasted to be $1.01 billion, reflecting a year-over-year decrease of 0.4% [1]. - Specific revenue estimates include: - GYN surgical revenues projected at $179.82 million, a year-over-year increase of 7.9% [4]. - Diagnostics - Molecular diagnostics expected to reach $316.12 million, up 1.8% from the prior year [4]. - Diagnostics - Blood screening anticipated at $5.65 million, down 28.5% year-over-year [5]. - Breast health - Breast imaging revenues estimated at $277.39 million, a decrease of 10.3% [5]. - Total Diagnostics revenues projected at $437.46 million, indicating a decline of 0.8% [5]. - Skeletal health revenues expected to be $25.34 million, up 33.4% from the previous year [6]. - Diagnostics - Cytology and perinatal forecasted at $117.36 million, down 4% [6]. - Total Breast health revenues estimated at $363.15 million, a decrease of 5.7% [6]. - Breast health - Interventional breast solutions projected at $85.76 million, an increase of 13.1% [7]. - Service and other revenues expected to be $202.73 million, up 1.3% [7]. - Product revenues anticipated at $801.50 million, down 1.2% from the prior year [7]. Stock Performance - Hologic shares have increased by 1.5% over the past month, compared to a 4.6% increase in the Zacks S&P 500 composite [8]. - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [8].

Industry Overview - The cancer diagnostics market is experiencing steady growth due to increasing demand for early cancer detection, technological advancements, and the importance of personalized medicine [1] - Companies like Hologic and Exact Sciences are gaining investor attention for their strong positioning in the cancer diagnostics space [1] Hologic Analysis - Hologic's growth is driven by a combination of organic and inorganic innovation, particularly in its Diagnostics division led by the Molecular Diagnostics unit [3] - The company holds nearly 80% of the U.S. market share in Breast Health with its 3D Genius mammography machine [4] - Hologic's Surgical division is expanding internationally, supported by market development efforts and acquisitions [5] - The company reported a 30% operating margin in Q2 of fiscal 2025, despite challenges such as tariff-related inventory cost increases [7] - Hologic's revenue outlook for China has been trimmed to reduce geopolitical risk exposure [6] Exact Sciences Analysis - Exact Sciences is undergoing a transformative phase in 2025, with its Cologuard CRC screening test gaining momentum [8] - The company is advancing its innovation pipeline, including the launch of Cologuard Plus and Oncodetect, which have secured Medicare coverage [10] - Exact Sciences reported a 61% year-over-year increase in adjusted EBITDA, supported by productivity and cost-cutting initiatives [11] - The company is focused on boosting free cash flow, although high debt levels remain a concern [12] Financial Projections - Hologic's fiscal 2025 EPS is estimated to improve by 2.7% to $4.19, with estimates trending downward in the last 90 days [13] - Exact Sciences has a consensus EPS estimate of 16 cents for 2025, reflecting a 169.6% improvement, with bullish trends in analyst estimates [14] Price Performance & Valuation - Over the past year, Hologic shares have decreased by 15.9%, while Exact Sciences shares have increased by 7.4% [15] - Hologic's forward price-to-sales ratio is 3.47X, lower than the industry average of 4.34X, while Exact Sciences' ratio is 2.76X [16] Conclusion - Hologic's diversified business model and strong balance sheet support its long-term growth outlook, despite potential economic pressures [18] - Exact Sciences is benefiting from Cologuard adoption and a strong innovation pipeline, making it a more appealing investment option at present [19]

Core Insights - Hologic's international expansion is a key growth strategy, currently generating about 25% of total revenues from outside the U.S., which is lower than many peers, indicating significant room for growth [1][8] - The company has achieved over 10% annual international growth through targeted investments in international capabilities [1] - The Surgical division has seen over 20% growth in international business, supported by increased reimbursement and product guidelines [2] International Performance - MyoSure is experiencing rapid growth internationally due to untapped markets and demand for minimally invasive treatments [3] - Gynesonics, recently acquired, is expected to grow at a strong double-digit rate with Hologic's sales support [3] - International sales in Q2 were impacted by challenges such as a physician strike in South Korea and reduced hospital spending in China [4] Competitor Analysis - Becton, Dickinson and Company (BD) reported a 1.2% increase in international revenues in Q2 2025, with expectations of a $90 million hit to operating expenses due to tariffs [5] - Abbott's international sales accounted for approximately 61% of its 2024 net sales, with a 6.6% year-over-year increase in Q2 2025 [6] Stock Performance and Valuation - Hologic shares have declined 8.5% year-to-date, compared to a 10.2% decline in the industry [7] - The stock is trading at a forward five-year price-to-earnings ratio of 14.84X, below the industry average of 28.28X [9] - Consensus estimates for Hologic's fiscal 2025 EPS have shown a downward trend over the past 90 days [10]

Hologic (HOLX) closed at $65.37 in the latest trading session, marking a +2.64% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw a decrease of 0.39%. The medical device maker's shares have seen a decrease of 1.15% over the last month, surpassing the Medical sector's loss of 1.83% and falling behind the S&P 500's gain of 5.88%.The investment community will be paying close attention to the ear ...

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Core Viewpoint - Hologic (HOLX) is expected to report a slight decline in both earnings per share (EPS) and revenues for the third quarter of fiscal 2025, with EPS estimated at $1.05 and revenues at $1.01 billion, reflecting year-over-year decreases of 0.9% and 0.4% respectively [1][4]. Financial Performance - The Zacks Consensus Estimate for Q3 EPS indicates a decrease from the previous year, with a drop of 1 cent in the last 60 days [1]. - The company has a mixed earnings record over the past four quarters, beating estimates in three and missing once, with an average earnings surprise of 1.23% [2]. Segment Analysis - The Diagnostics segment is expected to show mixed results, with U.S. strength countered by challenges in Africa and China. Molecular Diagnostics is anticipated to positively impact revenues, particularly through the BV/CV/TV assay [5][6]. - The Breast Health segment is projected to decline by 4.7% year over year to $366.8 million, primarily due to lower capital equipment sales, although recurring service revenues may help mitigate some losses [7]. - The GYN Surgical segment may experience growth of 6.4% year over year to $177.3 million, supported by strong international sales and the integration of Gynesonics [8]. - The Skeletal Health segment is expected to see significant growth of 40.2%, reaching $26.6 million, driven by the ramp-up of the Horizon DXA system [9]. Stock Performance and Valuation - Hologic's stock has declined 18.5% over the past year, underperforming both the industry and broader medical sector [10]. - The company is currently trading at a forward five-year Price/Sales (P/S) ratio of 3.35X, which is lower than the industry average of 4.01X, indicating a relatively favorable valuation [13]. Investment Considerations - Hologic continues to show robust growth potential across its Diagnostics and Medtech segments, with a strong product portfolio and recent acquisitions enhancing its market position [16]. - However, the company faces macroeconomic challenges, including tariff pressures and reduced revenue forecasts from China, which could impact margins and overall growth [17].

Core Insights - Breast cancer remains a major global health issue and the leading cause of cancer-related deaths among women, with Artificial Intelligence (AI) increasingly playing a crucial role in improving clinical outcomes and decision-making [1] Group 1: Hologic's Innovations and Market Position - Hologic has set a new standard in breast cancer screening with its Genius 3D mammography exam, which is FDA-approved and superior to 2D mammography for all women, including those with dense breast tissue [2] - The company's Genius AI platform enhances cancer detection and operational efficiency, and it powers the FDA-approved 3DQuorum technology, which significantly reduces read time for radiologists [2] - Hologic's Genius AI Detection 2.0 solution has shown consistent results across diverse populations, and the upcoming Genius AI Detection PRO solution promises greater accuracy and fewer false positives [3] - The Envision Mammography Platform, which offers a 2.5-second scan time, is set to be launched, making it the fastest 3D mammography platform available [4] Group 2: Competitive Landscape - GE Healthcare has the largest global footprint in breast imaging systems, with innovations like the Pristina Via mammography system and Invenia ABUS Premium, which enhance the screening experience and drive faster, reproducible results [5] - RadNet, through its subsidiary DeepHealth, has acquired See-Mode Technologies to enhance its AI-powered ultrasound solutions and plans to acquire iCAD, known for its AI-powered breast health solutions [6] Group 3: Financial Performance and Valuation - Hologic's stock has declined by 12.3% year-to-date, compared to the industry's 10.2% decline [7] - The company is trading at a forward three-year price-to-earnings ratio of 14.25X, which is lower than the industry average of 28.35X [9] - Consensus estimates for earnings per share (EPS) have decreased by 0.5% for fiscal 2025 and 1.1% for 2026 over the past 60 days [10]