Revvity(RVTY) - 2026 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Unaudited Financial Statements Revvity, Inc. reports total revenues of $664.8 million for the first quarter of 2025, a 2% increase year-over-year, with net income rising to $42.2 million from $26.0 million in the prior year. Diluted EPS from continuing operations was $0.35. The balance sheet remains stable with total assets of $12.36 billion. Cash flow from operations was strong at $128.2 million, though slightly lower than the previous year Condensed Consolidated Statements of Operations For the three months ended March 30, 2025, Revvity reported total revenues of $664.8 million, up from $649.9 million in the same period of 2024. Operating income significantly increased to $72.2 million from $44.1 million year-over-year. Net income for the quarter was $42.2 million, or $0.35 per diluted share, compared to $26.0 million, or $0.21 per diluted share, in the prior-year period Q1 2025 vs Q1 2024 Statement of Operations Highlights | Metric | Three Months Ended March 30, 2025 | Three Months Ended March 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $664,762 | $649,920 | +2.3% | | Operating Income from Continuing Operations | $72,230 | $44,116 | +63.7% | | Income from Continuing Operations | $41,669 | $28,696 | +45.2% | | Net Income | $42,237 | $26,013 | +62.4% | | Diluted EPS (Continuing Operations) | $0.35 | $0.23 | +52.2% | | Diluted EPS (Net Income) | $0.35 | $0.21 | +66.7% | (In thousands, except per share data) Condensed Consolidated Statements of Comprehensive Income The company reported a comprehensive income of $121.9 million for the first quarter of 2025, a significant turnaround from a comprehensive loss of $22.6 million in the same period of 2024. This change was primarily driven by a positive foreign currency translation adjustment of $79.7 million Q1 2025 vs Q1 2024 Comprehensive Income | Metric | Three Months Ended March 30, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Income | $42,237 | $26,013 | | Foreign currency translation adjustments | $79,654 | $(48,927) | | Comprehensive Income (Loss) | $121,891 | $(22,649) | (In thousands) Condensed Consolidated Balance Sheets As of March 30, 2025, Revvity's balance sheet showed total assets of $12.36 billion, a slight decrease from $12.39 billion at year-end 2024. Cash and cash equivalents stood at $1.14 billion. Total liabilities were stable at $4.72 billion, and total stockholders' equity was $7.64 billion Balance Sheet Highlights | Metric | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,137,620 | $1,163,396 | | Total current assets | $2,317,938 | $2,349,608 | | Goodwill | $6,511,488 | $6,463,619 | | Total assets | $12,360,724 | $12,392,478 | | Total current liabilities | $648,187 | $653,100 | | Long-term debt | $3,168,384 | $3,150,476 | | Total liabilities | $4,723,594 | $4,725,604 | | Total stockholders' equity | $7,637,130 | $7,666,874 | (In thousands) Condensed Consolidated Statements of Cash Flows For the first quarter of 2025, net cash provided by operating activities was $128.2 million, compared to $147.6 million in the prior-year period. Net cash used in investing activities was $6.4 million. Financing activities used $163.7 million, primarily due to $153.6 million in common stock repurchases. The quarter ended with a total cash position of $1.14 billion Q1 2025 vs Q1 2024 Cash Flow Summary | Activity | Three Months Ended March 30, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $128,155 | $147,563 | | Net cash used in investing activities | $(6,378) | $(18,181) | | Net cash used in financing activities | $(163,664) | $(35,013) | | Net (decrease) increase in cash | $(25,765) | $85,092 | (In thousands) - The significant increase in cash used for financing activities was driven by common stock repurchases totaling $153.6 million in Q1 2025, compared to $10.8 million in Q1 2024[22][113] Notes to Condensed Consolidated Financial Statements The notes detail the basis of presentation, revenue disaggregation, discontinued operations from the 2023 sale of the Applied, Food and Enterprise Services businesses, and segment reporting changes effective in 2025. Key details include a stock repurchase program with $707.2 million remaining, a quarterly dividend of $0.07 per share, and total debt of $3.17 billion. No goodwill impairment was recorded - Effective at the beginning of fiscal year 2025, the company integrated its Applied Genomics business into the Life Sciences segment. Prior period financial information has been reclassified for consistent comparison[41][42] - During Q1 2025, the company repurchased 1.32 million shares of common stock for $150.0 million under its Repurchase Program. As of March 30, 2025, $707.2 million remained available for future repurchases[48] - The company declared a quarterly cash dividend of $0.07 per share for Q1 2025 and subsequently for Q2 2025[51] - Total long-term debt stood at $3.17 billion as of March 30, 2025. In January 2025, the company replaced its credit facility with a new $1.5 billion senior unsecured revolving credit facility expiring in 2030[37] Management's Discussion and Analysis of Financial Condition and Results of Operations Management reports a 2% revenue increase to $664.8 million in Q1 2025, driven by growth in both the Diagnostics (3%) and Life Sciences (1%) segments. Gross margin improved by 186 basis points to 56.5% due to higher volume and favorable mix, while operating margin expanded from 7% to 11%. The company highlights investments in new products and digital capabilities, and discusses its liquidity position, including a new $1.5 billion credit facility and an ongoing stock repurchase program Overview In Q1 2025, Revvity's revenue grew 2% to $664.8 million, with the Diagnostics segment up 3% and Life Sciences up 1%. The growth in Diagnostics was driven by Immunodiagnostics and Reproductive Health, while Life Sciences growth was led by Software revenue. Consolidated gross margins increased by 186 basis points, and operating margins expanded from 7% to 11% year-over-year Q1 2025 Performance Summary | Metric | Q1 2025 vs Q1 2024 | Key Drivers | | :--- | :--- | :--- | | Overall Revenue | +2% ($664.8M) | Growth in both segments | | Diagnostics Segment Revenue | +3% | Increased demand in Immunodiagnostics and Reproductive Health | | Life Sciences Segment Revenue | +1% | Growth in Software, offset by decrease in Life Sciences Solutions | | Gross Margin | +186 bps | Higher sales volume, productivity, favorable product mix | | Operating Margin | 11% (from 7%) | Gross margin expansion and cost containment | Consolidated Results of Continuing Operations Revenue for Q1 2025 increased by 2% to $664.8 million. Cost of revenue decreased by 2%, leading to a gross margin improvement to 56.5%. SG&A expenses fell 4% to $249.7 million, while R&D expenses rose 6% to $53.6 million, reflecting continued investment in innovation. The effective tax rate increased to 20.5% from 16.9% in the prior year - Cost of revenue as a percentage of revenue decreased from 45.4% to 43.5%, resulting in a gross margin increase of 186 basis points to 56.5%, primarily due to higher sales volume, productivity, and favorable product mix[89] - The company estimates that recently enacted tariffs could increase its gross cost of revenue by approximately $135 million for the fiscal year, but mitigation actions are expected to limit the operating income impact to approximately $20 million[90] - R&D expenses increased by 6% to $53.6 million, representing 8.1% of revenue, driven by investments in new product development[93] - The effective tax rate for Q1 2025 was 20.5%, up from 16.9% in Q1 2024, primarily due to projected higher income in higher tax rate jurisdictions. The company expects a full-year effective tax rate of approximately 20%[96] Reporting Segment Results of Continuing Operations In Q1 2025, the Life Sciences segment revenue grew 1% to $340.4 million, with operating income up 5% to $105.7 million. The Diagnostics segment revenue increased 3% to $324.4 million, but its operating income decreased 3% to $74.0 million due to investments in growth initiatives Q1 2025 Segment Performance | Segment | Revenue (Q1 2025) | Revenue Change (YoY) | Operating Income (Q1 2025) | Operating Income Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | Life Sciences | $340.4M | +1% | $105.7M | +5% | | Diagnostics | $324.4M | +3% | $74.0M | -3% | - Life Sciences revenue growth was driven by a $9.0 million increase in Software revenue, partially offset by a $5.2 million decrease in Life Sciences Solutions revenue[97] - Diagnostics revenue growth was driven by an $8.9 million increase in Immunodiagnostics and a $2.1 million increase in Reproductive Health[99] Liquidity and Capital Resources As of March 30, 2025, Revvity had $1.14 billion in cash and cash equivalents and $1.5 billion available under a new credit facility. The company expects internal operations to fund operating expenses, capital expenditures, and dividends for the foreseeable future. Key uses of cash include debt service, potential acquisitions, and share repurchases under a $1.0 billion program, of which $707.2 million remained available - The company's principal sources of funds are internal operations, a $1.5 billion senior unsecured revolving credit facility, and access to debt markets[103][104] - A stock repurchase program authorized up to $1.0 billion. As of March 30, 2025, $707.2 million remained available for repurchases[106] - Net cash from operating activities decreased to $134.1 million in Q1 2025 from $150.1 million in Q1 2024, primarily due to timing of collections and payments[111] - In January 2025, the company replaced its prior credit facility with a new $1.5 billion senior unsecured revolving credit facility available through January 7, 2030[116] Quantitative and Qualitative Disclosures About Market Risk The company is exposed to market risks, including changes in interest rates and currency exchange rates. It uses derivative instruments to manage volatility. The company states that its market risks have not materially changed from the disclosures provided in its 2024 Form 10-K - The company's market risks, primarily related to interest rates and foreign currency exchange rates, have not materially changed from the disclosures in its Annual Report on Form 10-K for the fiscal year ended December 29, 2024[119] Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 30, 2025, and concluded they were effective at a reasonable assurance level. There were no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of March 30, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[124] - No changes occurred in the company's internal control over financial reporting during the first fiscal quarter of 2025 that materially affected, or are reasonably likely to materially affect, these controls[125] PART II. OTHER INFORMATION Legal Proceedings The company is subject to various claims and legal proceedings in the ordinary course of business. Management has established accruals for probable and estimable losses and believes that the ultimate resolution of these matters will not have a material adverse effect on its financial statements - Revvity is involved in various legal proceedings and has established accruals for potential losses. Management does not expect the outcomes to have a material adverse effect on the company's financial condition[128] Risk Factors The company outlines significant risks that could impact its business. These include dependency on market conditions and government funding, global economic and political instability, failure to innovate, challenges in executing M&A, intense competition, supply chain disruptions, IT system breaches, and potential impairment of its $9.1 billion in intangible assets. Other risks involve intellectual property protection, regulatory compliance (FDA, data privacy), foreign operations, substantial debt levels with restrictive covenants, and stock price volatility - Business operations are sensitive to declines in customer markets, changes in government funding, and global economic conditions, including tariffs and political conflicts[129][130] - The company faces risks from rapid technological change and must successfully introduce new products to remain competitive. Failure to do so could lead to market share loss[133] - As of March 30, 2025, the company had $9.1 billion of net intangible assets, including goodwill, which are subject to impairment risk if business conditions deteriorate[149] - The company has a substantial amount of debt, which includes restrictive covenants that may limit business activities. Failure to comply could result in debt acceleration[164][166] Unregistered Sales of Equity Securities and Use of Proceeds During the first quarter of 2025, Revvity repurchased a total of 1,355,665 shares of its common stock at an average price of $113.28 per share. Of this total, 1,324,629 shares were repurchased under the publicly announced stock repurchase program. As of March 30, 2025, approximately $707.2 million remained available for repurchase under this program Q1 2025 Stock Repurchase Activity | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased Under Program | Remaining Authorization | | :--- | :--- | :--- | :--- | :--- | | Q1 ended Mar 30, 2025 | 1,355,665 | $113.28 | 1,324,629 | $707,209,819 | - The company repurchased 31,036 shares for $3.6 million to satisfy tax withholding obligations related to employee equity awards, separate from the main repurchase program[175] Other Information During the first quarter of 2025, three executive officers, Joel S. Goldberg, Prahlad Singh, and Tajinder S. Vohra, adopted Rule 10b5-1 trading arrangements for future sales of company stock. No directors or officers terminated any such arrangements during the quarter - Three Section 16 officers, including the CEO, adopted Rule 10b5-1 trading plans during the quarter ended March 30, 2025[177][178] Exhibits This section lists the exhibits filed with the Form 10-Q, including the company's articles of organization, by-laws, a new credit agreement, and certifications by the CEO and CFO as required by the Sarbanes-Oxley Act. It also includes the Inline XBRL documents