QuidelOrtho (QDEL) - 2026 Q1 - Quarterly Report

Revenue Performance - Total revenues for the three months ended March 30, 2025, decreased by 3% to $692.8 million compared to$ 711.0 million for the same period in the prior year[90]. - Revenue from respiratory products accounted for 17% of total revenues for the three months ended March 30, 2025, down from 19% in the prior year, with COVID-19 related revenue decreasing from $50.2 million to$ 23.4 million[81]. - Labs revenue increased by 5% to $373.1 million, driven by growth in reagents, consumables, and services, while Point of Care revenue decreased by 8% to$ 170.8 million[89]. - Total revenues for North America decreased by 6% to $406.7 million for the three months ended March 30, 2025, compared to$ 433.9 million for the same period in 2024[104]. - EMEA segment reported a 5% increase in total revenues to $88.9 million, with Adjusted EBITDA rising 42% to$ 16.5 million[106]. - China total revenues decreased by 1% to $75.0 million, while Adjusted EBITDA increased by 12% to$ 29.3 million[108]. - Total revenues for the "Other" segment increased by 5% to $122.2 million, but Adjusted EBITDA decreased by 6% to$ 29.6 million[111]. Expenses and Cost Management - Cost of sales decreased to $349.5 million, or 50.4% of total revenues, down from$ 378.9 million, or 53.3% of total revenues, for the same period last year[91]. - Selling, marketing, and administrative expenses decreased by 8.6% to $187.0 million, primarily due to cost-savings initiatives[93]. - Research and development expenses decreased by 10.1% to$ 53.2 million, also attributed to cost-savings initiatives[94]. - Integration-related costs decreased to $16.1 million from$ 22.6 million in the prior year, reflecting lower consulting and compensation-related charges[96]. Tax and Financial Position - The effective tax rate for the three months ended March 30, 2025, was negative 44.3%, compared to an effective tax rate of 5.2% in the prior year, primarily due to operating losses in certain subsidiaries[101]. - Cash and cash equivalents increased by $28.8 million to$ 127.1 million as of March 30, 2025[113]. - Net cash provided by operating activities was $65.6 million for the three months ended March 30, 2025, compared to a cash outflow of$ 0.7 million in the same period of 2024[117]. - Capital expenditures for the three months ended March 30, 2025, were $56.2 million, primarily for manufacturing capacity expansion[116]. - The company anticipates that current cash and cash equivalents, along with cash from operations, will be sufficient to fund near-term capital and operating needs for at least the next 12 months[122]. Strategic Initiatives - The company initiated a wind-down plan for the U.S. donor screening portfolio, expected to be substantially complete by the end of 2025, contributing to revenue decline[82]. - The company expects overall demand for its products to continue to fluctuate, influenced by seasonal respiratory demands and competitive pressures[85]. - The company is focused on expanding the number of instruments placed in the field through a reagent rental model to enhance recurring revenue and cash flows[126].