Core Viewpoint - The Meridian Contrarian Fund reported a strong performance in Q2 2025, with a return of 16.42%, outperforming the Russell 2500 Index and the Russell 2500 Value Index, amidst a significant recovery in the U.S. equity market, which rose 23% during the quarter [1] Group 1: Fund Performance - The U.S. large-cap stocks gained 11.1% in Q2 2025, with growth stocks outperforming value stocks [1] - The Meridian Contrarian Fund's return of 16.42% (net) exceeded the Russell 2500 Index's return of 8.59% and the Russell 2500 Value Index's return of 7.29% [1] Group 2: QuidelOrtho Corporation (NASDAQ:QDEL) - QuidelOrtho Corporation is a diagnostic testing solutions provider, with a one-month return of -7.51% and a 52-week loss of 41.75%, closing at $26.53 per share on September 25, 2025, with a market capitalization of $1.802 billion [2] - The Meridian Contrarian Fund invested in QuidelOrtho following its merger with Ortho Clinical Diagnostics, believing it positioned the company for improved growth and margins [3] - Despite the company's earnings being in line with expectations, broader macro concerns affected its stock performance, particularly in the respiratory business and potential funding cuts in government health programs [3] Group 3: Hedge Fund Interest - QuidelOrtho Corporation was held by 31 hedge fund portfolios at the end of Q2 2025, a decrease from 32 in the previous quarter [4] - The company reported Q2 revenue of $614 million, down from $637 million in the prior year [4]

Core Viewpoint - QuidelOrtho Corporation is expanding its QUICKVUE portfolio with the introduction of the QUICKVUE Influenza + SARS Test, aimed at enhancing point-of-care diagnostic testing capabilities for respiratory illnesses [1][3]. Product Features and Benefits - The QUICKVUE Influenza + SARS Test allows for rapid, simultaneous detection of influenza A, influenza B, and SARS-CoV-2 antigens from a single patient sample, providing results in as fast as 10 minutes [2][5]. - This test is designed for use in various healthcare settings, including physician office laboratories, urgent care centers, emergency departments, and pharmacies, facilitating timely treatment decisions and improved patient outcomes [2][3]. - The test is a CLIA-waived, 510(k)–cleared immunoassay, emphasizing its reliability and efficiency in differentiating between COVID-19 and seasonal flu infections [1][3]. Market Position and Strategy - The launch of the QUICKVUE Influenza + SARS Test reinforces QuidelOrtho's leadership in point-of-care respiratory testing and expands its portfolio of respiratory solutions [3][4]. - The company aims to provide healthcare professionals with cost-effective solutions that streamline clinical decisions and manage seasonal surges in respiratory infections [3][4]. - QuidelOrtho's commitment to innovation is evident in its continuous development of diagnostic solutions that improve patient outcomes across various healthcare settings [4].

QuidelOrtho Conference Call Summary Company Overview - **Company**: QuidelOrtho (NasdaqGS: QDEL) - **Date**: September 10, 2025 - **Key Speaker**: Joe Buske, CFO Key Industry Insights Financial Performance - **Q2 Highlights**: Achieved 400+ basis points margin improvement compared to the previous year, marking two consecutive strong quarters in 2025 [2][3] - **Revenue Growth**: Base business continues to grow at a mid-single digit rate, particularly in labs and immunohematology [4] Strategic Decisions - **Manufacturing Facility Closure**: Decision to close a large manufacturing facility in Raritan, New Jersey, aimed at enhancing operating margins in the coming years [3] - **Product Development Shift**: Transition from Savannah molecular product development to acquiring Lex, a UK-based business, pending FDA approval for a respiratory panel [3][11] Market Positioning - **Lab Strategy**: Focus on small to mid-sized hospitals and labs, utilizing integrated analyzers for routine chemistry and immunoassays, which has proven effective [5][7] - **Automation Growth**: Integrated analyzers have seen high single-digit to low double-digit growth, indicating successful implementation of automation strategies [7][8] Regional Growth Opportunities - **Emerging Markets**: High single-digit to low double-digit growth expected in less developed regions such as Latin America and Asia Pacific, compared to low to mid-single digit growth in developed markets [9] Product Development and Future Outlook Lex Acquisition - **Strategic Rationale**: Pivoting to Lex due to its competitive advantages in turnaround time, ease of use, and cost-effectiveness compared to Savannah [11] - **Expansion Plans**: Focus on adding RSV and strep to the respiratory panel, with further opportunities in women's health and STIs [13] COVID-19 Revenue Trends - **Revenue Decline**: COVID revenue has significantly decreased from $1.4 billion in 2021 to an expected $70-100 million in 2025, with a stable professional use space revenue [18][19] Flu Season Expectations - **Flu Revenue Guidance**: Anticipating a typical flu season with projected volumes of 50-55 million tests, maintaining steady market share [20][21] Challenges and Risks Transfusion Medicine Business - **Business Wind Down**: The donor screening business is being phased out, with expected revenue dropping from $120 million last year to $40-50 million this year [23][24] China Market Dynamics - **Resilience Against Headwinds**: QuidelOrtho's unique dry slide technology has insulated it from some of the volume-based procurement initiatives affecting competitors [28][29] - **Long-term Growth Potential**: Despite complexities, the company sees opportunities for growth in the immunoassay business in China [31] Margin Improvement and Financial Strategy EBITDA Margin Goals - **Targeted Growth**: Aiming for adjusted EBITDA margins in the mid to high 20% range by mid-2027, up from 22% this year [32][34] - **Cost Reduction Initiatives**: Significant staffing reductions and indirect procurement initiatives are expected to yield substantial savings [33][34] Debt Management - **Debt Refinancing Benefits**: Recent refinancing has improved maturity profiles and financial covenants, providing more flexibility [36][37] - **Leverage Ratio Goals**: Targeting a leverage ratio of 2.5 to 3.5 by 2026, aligning with margin improvement timelines [39][40] Conclusion - **Opportunities**: The Lex product is viewed as the most significant growth opportunity in the near term [46] - **Challenges**: Ongoing macroeconomic conditions pose challenges to margin improvement and debt reduction goals [48] - **Stable Base Business**: The labs and immunohematology segments represent a stable revenue foundation, contributing to predictable growth [50][51]

Core Viewpoint - QuidelOrtho Corporation (NASDAQ:QDEL) is recognized as one of the best small-cap stocks to buy, with RBC Capital raising its price target from $60 to $62 while maintaining a Buy rating [1][3]. Financial Performance and Strategy - QuidelOrtho has successfully completed a series of transactions to refinance its debt structure, extending debt maturities and reducing required amortization payments, which enhances financial flexibility [2][3]. - The company prioritizes reducing total debt and net debt leverage, improving debt covenant terms, and enhancing cash flow to support future growth [3]. Market Growth and Opportunities - The company has experienced significant growth in international markets during Q2 FY2025, particularly in Latin America, Japan, Asia Pacific, and EMEA regions [4]. - QuidelOrtho is focusing on its molecular strategy, including the acquisition of LEX Diagnostics, which is expected to enhance its growth potential [4]. Analyst Insights - As of September 5, the average price target for QuidelOrtho is $37.50, indicating an upside potential of approximately 30.75% from current levels [5]. - QuidelOrtho operates in various segments, including Labs, Transfusion Medicine, Point of Care, and Molecular Diagnostics [5].

Company Overview - QuidelOrtho Corporation is a global leader in in vitro diagnostics, focusing on innovative diagnostic technologies for point-of-care settings, clinical labs, and transfusion medicine [1][3] - The company specializes in immunoassay and molecular testing, clinical chemistry, and transfusion medicine, providing fast, accurate, and reliable diagnostics [4] Upcoming Event - QuidelOrtho's management team will participate in the Baird 2025 Global Healthcare Conference on September 10, 2025, with a fireside chat scheduled to begin at 3:10 p.m. ET / 12:10 p.m. PT [1] Access to Information - Interested parties can access the live webcast and replay of the event through the "Events & Presentations" section on QuidelOrtho's Investor Relations page [2]

Core Viewpoint - QuidelOrtho Corporation has successfully completed a series of transactions to refinance its debt structure, extending debt maturities and reducing required amortization payments, which supports future growth [1][3]. Summary of New Transactions - The company has secured a $1.15 billion 5-year senior secured Term Loan A, replacing the previous Term Loan A from 2022 [8]. - A $100 million delayed draw Term Loan A has been established, which remains undrawn at the close [8]. - Additionally, a $1.45 billion 7-year senior secured Term Loan B has been arranged [8]. - The refinancing includes a $700 million revolving credit facility that replaces and pays in full the previous credit facility [8]. Financial Strategy - The Chief Financial Officer emphasized that the highest capital allocation priority is to reduce total debt and net debt leverage, improving financial flexibility and cash flow [3]. - The improved debt covenant terms and reduced amortization requirements will provide greater options for funding continued business growth [3].

Core Insights - QuidelOrtho emphasizes the importance of early detection through rapid diagnostic testing to manage seasonal health challenges posed by influenza, RSV, COVID-19, and vaccine-preventable diseases [1] Company Overview - QuidelOrtho Corporation (Nasdaq: QDEL) is a leader in developing and manufacturing intelligent in vitro diagnostics solutions, providing fast, accurate, and reliable diagnostics across various settings [3] - The company focuses on immunoassay and molecular testing, clinical chemistry, and transfusion medicine, aiming to transform data into actionable insights for healthcare providers and the public [3] Industry Impact - Rapid diagnostics support better health outcomes by enabling targeted treatment and reducing unnecessary antibiotic use [5] - Monitoring absenteeism data can serve as an early indicator of community spread, allowing for timely interventions [5] - Preventive practices are crucial in reducing transmission of illnesses in schools and homes, thereby protecting community health [5]

Core Insights - QuidelOrtho Corporation has appointed Erich Wolff as Executive Vice President, Strategy & Corporate Development, to lead enterprise strategy and business development [1][2] - Mr. Wolff has over 20 years of experience in strategy, M&A, and business development in the healthcare and diagnostics sectors [2][3] - The company aims to leverage Mr. Wolff's expertise to enhance its growth strategies and deliver long-term value [3][4] Company Overview - QuidelOrtho is a global leader in in vitro diagnostics, focusing on developing intelligent diagnostic solutions [6][7] - The company provides fast, accurate, and reliable diagnostics across various settings, including home, hospital, lab, and clinic [7] - QuidelOrtho emphasizes innovation and collaboration with global healthcare customers to advance diagnostic capabilities [7]

Core Insights - QuidelOrtho aims to enhance diagnostic excellence by repurposing and certifying high-performing analyzers to improve access to reliable diagnostic technology for healthcare facilities in underserved communities [1][3] - The certification process for analyzers includes over 140 system checks, functional adjustments, hardware cleaning or replacement, and extensive performance testing, ensuring alignment with QuidelOrtho's quality and performance criteria [1][2] - The program features certified VITROS XT 7600 and 5600 Integrated Systems and the VITROS 3600 Immunodiagnostic System, designed to support community labs with general chemistries, immunoassay tests, and drug screening [2] Company Overview - QuidelOrtho Corporation (Nasdaq: QDEL) is a leader in in vitro diagnostics, focusing on developing intelligent solutions that transform data into actionable insights for a broader audience [4] - The company specializes in immunoassay and molecular testing, clinical chemistry, and transfusion medicine, providing fast, accurate, and reliable diagnostics across various settings [4][5] - QuidelOrtho is committed to advancing diagnostics and improving healthcare outcomes through innovation and collaboration with global healthcare customers [5]

Core Insights - QuidelOrtho Corporation (QDEL) reported adjusted earnings per share (EPS) of $0.12 for Q2 2025, reversing a loss of $0.07 from the previous year and exceeding the Zacks Consensus Estimate of breakeven [1][6] - The company experienced a revenue decline of 3.6% year-over-year, totaling $613.9 million, but this figure surpassed the Zacks Consensus Estimate by 0.4% [2][6] - QDEL's shares rose nearly 12.8% in after-market trading, although they have decreased 46.8% year-to-date compared to a 4.9% increase in the industry [3] Revenue Breakdown - Respiratory revenues fell to $46.7 million, down 19.5% year-over-year, while Non-Respiratory revenues were $567.2 million, down 2% [2] - Revenue contributions from various business units included Labs at $369.7 million (up 4.4%), Immunohematology at $132.3 million (up 4.3%), and Donor Screening at $13.3 million (down 61.2%) [7][8] Geographical Performance - North America revenues were $310.7 million, reflecting an 11.3% decline, while EMEA revenues increased by 7.6% to $87.3 million [9][10] - Revenues from China were $83.4 million (up 2.2%), and Other regions contributed $132.5 million (up 6.7%) [10] Margin and Cost Management - Adjusted gross margin improved by 150 basis points to 45.7%, with adjusted operating margin increasing by 420 basis points to 9.8% [6][12] - Adjusted operating profit rose by 67.7% year-over-year to $60.2 million, while adjusted selling, marketing, and administrative expenses decreased by 5.9% [11][12] Financial Position - QuidelOrtho ended Q2 2025 with cash and cash equivalents of $151.7 million, up from $127.1 million at the end of Q1 [13] - Total debt increased to $2.61 billion from $2.49 billion in the previous quarter [13] Guidance and Future Outlook - The company reaffirmed its 2025 revenue guidance of $2.60 billion to $2.81 billion, with a consensus estimate of $2.72 billion [15][16] - QDEL anticipates stable growth across most business lines, particularly in Labs and Immunohematology, with expected COVID-19 revenues between $110 million and $140 million [17][21] - Management expects a gross tariff impact of $20–$25 million in 2025, reduced from previous estimates due to effective mitigation strategies [20]