Bio-Rad(BIO) - 2025 Q2 - Quarterly Results

Press Release: Bio-Rad Reports Second-Quarter 2025 Financial Results Executive Summary & Q2 Highlights Bio-Rad achieved solid Q2 2025 results with revenue growth and a significant GAAP net income increase, alongside a strategic acquisition - The CEO highlighted solid quarterly results achieved through focused execution and expense management in a dynamic environment[3] - Completed the acquisition of droplet digital PCR developer Stilla Technologies, expanding its Droplet Digital™ PCR offering with the new QX700™ series instruments[3] Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP Results | | | | Revenue (millions) | $651.6 | $638.5 | | Gross Margin | 53.0% | 55.6% | | Net Income (Loss) (millions) | $317.8 | $(2,165.5) | | Diluted EPS (Loss) | $11.67 | $(76.26) | | Non-GAAP Results | | | | Revenue (millions) | $651.6 | $638.5 | | Gross Margin | 53.7% | 56.4% | | Net Income (millions) | $71.0 | $88.3 | | Diluted EPS | $2.61 | $3.11 | Second-Quarter 2025 Performance Analysis Q2 2025 net sales increased 2.1%, driven by Life Science, while GAAP net income significantly improved due to investment gains Overall Performance Total net sales for Q2 2025 rose 2.1% to $651.6 million, with GAAP net income significantly boosted by equity investment gains - Total net sales were $651.6 million, a 2.1% increase as reported and a 1.0% increase on a currency-neutral basis compared to Q2 2024[6] - The primary driver for the currency-neutral sales increase was higher sales of process chromatography products[6] - A significant change in the fair market value of the company's investment in Sartorius AG was the main contributor to the GAAP net income of $317.8 million, compared to a net loss of $(2,165.5) million in Q2 2024[10] - Non-GAAP net income was $71.0 million ($2.61 per share), a decrease from $88.3 million ($3.11 per share) in Q2 2024[11] Segment Performance Life Science segment sales grew 4.9%, while Clinical Diagnostics remained flat due to offsetting factors Q2 2025 Segment Net Sales | Segment | Net Sales (millions) | YoY Change (Reported) | YoY Change (Currency-Neutral) | | :--- | :--- | :--- | :--- | | Life Science | $262.8 | +4.9% | +3.8% | | Clinical Diagnostics | $388.8 | ~0.0% | -0.7% | - The Life Science segment's growth was driven by increased sales of process chromatography and food safety products[8] - The Clinical Diagnostics segment's currency-neutral sales decrease was primarily due to lowered reimbursements for diabetes testing in China, which was partially offset by increased demand for quality control and immunology products[9] Updated Full-Year 2025 Financial Outlook Bio-Rad raised its full-year 2025 outlook, improving non-GAAP revenue growth and operating margin forecasts Full-Year 2025 Financial Outlook Update | Metric | Updated 2025 Outlook | Prior 2025 Outlook | | :--- | :--- | :--- | | Non-GAAP, Currency-Neutral Revenue Growth | 0% to 1.0% | -1.0% to 1.5% | | Non-GAAP Operating Margin | 12.0% to 13.0% | 10.0% to 12.0% | Financial Statements This section provides unaudited condensed consolidated financial statements, including income, balance sheet, and cash flow statements Condensed Consolidated Statements of Income (Loss) Q2 2025 net sales were $651.6 million, with net income of $317.8 million driven by equity security fair value gains Q2 2025 Income Statement Highlights (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales | $651.6 | $638.5 | | Gross profit | $345.3 | $355.1 | | Income from operations | $77.1 | $101.5 | | (Gains) losses from change in fair market value of equity securities | $(334.4) | $2,895.4 | | Net income (loss) | $317.8 | $(2,165.5) | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $10.21 billion, with stockholders' equity reaching $7.13 billion Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $2,811.1 | $3,030.3 | | Total assets | $10,214.1 | $9,364.1 | | Total current liabilities | $548.9 | $467.8 | | Total liabilities | $3,085.4 | $2,794.8 | | Total stockholders' equity | $7,128.7 | $6,569.3 | Condensed Consolidated Statements of Cash Flows Net cash from operations significantly increased to $246.4 million for H1 2025, while investing and financing activities used cash Six Months Ended June 30 Cash Flow Highlights (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $246.4 | $167.4 | | Net cash used in investing activities | $(112.5) | $(74.0) | | Net cash used in financing activities | $(234.0) | $(96.6) | | Net (decrease) in cash | $(118.1) | $3.3 | Reconciliation of GAAP to Non-GAAP Measures This section reconciles GAAP to non-GAAP results, detailing adjustments for Q2 2025 income, EBITDA, and free cash flow Q2 2025 GAAP to Non-GAAP Reconciliation Highlights (in millions) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Gross Profit | $345.3 (53.0%) | $349.9 (53.7%) | | Income from Operations | $77.1 (11.8%) | $88.6 (13.6%) | | Net Income (Loss) | $317.8 | $71.0 | | Diluted EPS (Loss) | $11.67 | $2.61 | Adjusted EBITDA and Free Cash Flow (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Adjusted EBITDA | $124.0 | $138.1 | | Free Cash Flow | $70.8 | $55.4 | - Major exclusions from GAAP results to calculate non-GAAP measures include amortization of intangibles ($5.2M), acquisition costs ($2.8M), restructuring costs ($2.4M), and gains from equity securities ($334.4M) for Q2 2025[40][41] Other Information This section provides supplementary information, including non-GAAP explanations, corporate profile, and forward-looking statements disclaimer - The company uses non-GAAP measures to provide greater transparency and to assess the performance of ongoing business operations by excluding items like amortization of acquisition-related assets, restructuring charges, and fair value changes of equity securities[16][17][18] - Bio-Rad is a leader in life science research and clinical diagnostics markets, with over 7,500 employees and $2.6 billion in revenues in 2024[28] - Forward-looking statements are subject to risks including global economic conditions, supply chain issues, ability to integrate acquisitions, and foreign currency fluctuations[29]