Workflow
OSI Systems(OSIS) - 2025 Q4 - Annual Results

Executive Summary & Company Overview OSI Systems achieved record revenues and non-GAAP EPS in Q4 and FY2025, driven by Security and service growth, expanding its credit facility Management Commentary OSI Systems' CEO reported record Q4 and FY2025 revenues and non-GAAP EPS, with the CFO highlighting an expanded credit facility for strategic investments - OSI Systems achieved record-breaking fourth quarter and 2025 fiscal year revenues and non-GAAP earnings per share, led by excellent execution in the Security division3 - Fourth quarter performance was driven by strong growth in the Security division's service revenues resulting from an increasing installed base of products3 - Subsequent to fiscal year end, the credit facility was expanded to $825 million with maturity extended to July 2030, enhancing capacity for strategic investments and long-term value4 Key Financial Highlights (Q4 & FY2025) OSI Systems reported record revenues and non-GAAP EPS for Q4 and FY2025, with full-year revenues reaching $1.713 billion and a robust backlog Key Financial Highlights (Q4 & FY2025) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | % Growth (QoQ) | Fiscal Years Ended June 30, 2024 | Fiscal Years Ended June 30, 2025 | % Growth (YoY) | | :------------------------- | :------------------------------- | :------------------------------- | :------------- | :------------------------------- | :------------------------------- | :------------- | | Revenues (in thousands) | $480,907 | $504,985 | 5% | $1,538,758 | $1,713,166 | 11% | | Operating income - GAAP (in thousands) | $62,818 | $73,022 | 16% | $189,061 | $217,524 | 15% | | Operating income - non-GAAP (in thousands) | $71,211 | $79,479 | 12% | $212,218 | $240,855 | 13% | | Earnings per share - GAAP | $2.55 | $3.03 | 19% | $7.38 | $8.71 | 18% | | Earnings per share - non-GAAP | $2.84 | $3.24 | 14% | $8.13 | $9.36 | 15% | | Book to Bill Ratio | 0.8 | 1.0 | - | 0.9 | 1.1 | - | | Cash flow provided by (used in) operating activities (in thousands) | $(29,041) | $561 | - | $(87,501) | $97,592 | - | - Record Q4 Revenues of $505 million and Record Fiscal Year Revenues of $1.713 billion (up 11% YoY)5 - Record Non-GAAP EPS of $3.24 for Q4 and $9.36 for Fiscal Year (up 15% YoY)5 - Year-End Backlog of over $1.8 billion5 About OSI Systems OSI Systems designs and manufactures specialized electronic systems across Security, Optoelectronics, and Healthcare, serving over 170 countries - OSI Systems designs and manufactures specialized electronic systems and components for critical applications9 - The Company operates through three key segments: Security, Optoelectronics and Manufacturing, and Healthcare9 - OSI Systems serves over 170 countries, strategically positioning its sales, service, R&D, and manufacturing capabilities worldwide9 Fiscal Year 2025 Financial Performance OSI Systems reported significant revenue and net income growth in FY2025, with total net revenues reaching $1.713 billion and diluted EPS at $8.71 Consolidated Statements of Operations (GAAP) For FY2025, total net revenues increased to $1.713 billion, and net income rose to $149.6 million, resulting in diluted EPS of $8.71 Consolidated Statements of Operations (GAAP) | Metric (in thousands, except per share data) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Products Revenues | $390,342 | $392,633 | $1,207,590 | $1,323,291 | | Services Revenues | $90,565 | $112,352 | $331,168 | $389,875 | | Total net revenues | $480,907 | $504,985 | $1,538,758 | $1,713,166 | | Gross profit | $154,317 | $168,238 | $530,458 | $587,182 | | Income from operations | $62,818 | $73,022 | $189,061 | $217,524 | | Net income | $44,679 | $52,748 | $128,154 | $149,637 | | Diluted earnings per share | $2.55 | $3.03 | $7.38 | $8.71 | | Weighted average shares outstanding – diluted | 17,504 | 17,412 | 17,354 | 17,178 | - Total net revenues increased by 11.3% year-over-year, from $1,538,758 thousand in FY2024 to $1,713,166 thousand in FY202514 - Net income increased by 16.8% year-over-year, from $128,154 thousand in FY2024 to $149,637 thousand in FY202514 Consolidated Balance Sheets (GAAP) As of June 30, 2025, total assets grew to $2.241 billion, driven by receivables and goodwill, while long-term debt significantly increased Consolidated Balance Sheets (GAAP) | Metric (in thousands) | June 30, 2024 | June 30, 2025 | | :-------------------------------- | :------------ | :------------ | | Cash and cash equivalents | $95,353 | $106,405 | | Accounts receivable, net | $648,155 | $837,743 | | Inventories | $397,939 | $407,174 | | Total current assets | $1,215,524 | $1,422,861 | | Property and equipment, net | $113,967 | $126,747 | | Goodwill | $351,480 | $387,393 | | Intangible assets, net | $139,529 | $183,290 | | Total Assets | $1,936,008 | $2,241,257 | | Bank lines of credit | $384,000 | $178,000 | | Long-term debt | $129,383 | $463,504 | | Total liabilities | $1,072,525 | $1,290,173 | | Total stockholders' equity | $863,483 | $951,084 | - Accounts receivable, net, increased by 29.2% from $648,155 thousand in 2024 to $837,743 thousand in 202516 - Long-term debt significantly increased from $129,383 thousand in 2024 to $463,504 thousand in 2025, while bank lines of credit decreased from $384,000 thousand to $178,000 thousand16 Non-GAAP Financial Measures & Reconciliation (Consolidated) OSI Systems provides non-GAAP measures to clarify underlying performance by excluding specific items, enhancing comparability and insight - Non-GAAP figures exclude restructuring and other charges, amortization of intangible assets acquired through business acquisitions, and associated tax effects, and discrete income tax items10 - Management believes non-GAAP measures provide enhanced insight into ongoing operations, meaningful information for planning, and better comparability to peer companies10 Q4 2025 Consolidated Non-GAAP Reconciliation This section reconciles Q4 2025 GAAP to non-GAAP figures, adjusting for restructuring, amortization, and tax effects for clearer performance | Metric (in thousands, except per-share amounts) | GAAP Basis (Q4 2025) | Adjustments (Q4 2025) | Non-GAAP Basis (Q4 2025) | | :---------------------------------------------- | :------------------- | :-------------------- | :----------------------- | | Operating Income | $73,022 | $1,687 (Restructuring) + $4,770 (Amortization) | $79,479 | | % of Revenues | 14.5% | 0.3% + 0.9% | 15.7% | | Net Income | $52,748 | $1,687 (Restructuring) + $4,770 (Amortization) - $1,380 (Tax benefit) - $1,373 (Discrete tax) | $56,452 | | EPS | $3.03 | $0.10 (Restructuring) + $0.27 (Amortization) - $0.08 (Tax benefit) - $0.08 (Discrete tax) | $3.24 | FY 2025 Consolidated Non-GAAP Reconciliation This section reconciles FY 2025 GAAP to non-GAAP figures, adjusting for restructuring, amortization, and tax effects for clearer performance | Metric (in thousands, except per-share amounts) | GAAP Basis (FY 2025) | Adjustments (FY 2025) | Non-GAAP Basis (FY 2025) | | :---------------------------------------------- | :------------------- | :-------------------- | :----------------------- | | Operating Income | $217,524 | $5,335 (Restructuring) + $17,996 (Amortization) | $240,855 | | % of Revenues | 12.7% | 0.3% + 1.1% | 14.1% | | Net Income | $149,637 | $5,335 (Restructuring) + $17,996 (Amortization) - $5,413 (Tax benefit) - $6,717 (Discrete tax) | $160,838 | | EPS | $8.71 | $0.31 (Restructuring) + $1.05 (Amortization) - $0.32 (Tax benefit) - $0.39 (Discrete tax) | $9.36 | Segment Performance Analysis Security consistently drove strong performance in Q4 and FY2025, Optoelectronics & Manufacturing maintained profitability, while Healthcare declined Q4 2025 Segment Performance (Non-GAAP) In Q4 2025, Security led with a 20.4% non-GAAP operating margin, Optoelectronics & Manufacturing maintained 13.6%, while Healthcare declined Security Segment (Q4) The Security segment's non-GAAP operating income increased to $74.7 million in Q4 2025, with its operating margin improving to 20.4% | Metric (in thousands) | Q4 2024 | Q4 2025 | | :-------------------- | :-------- | :-------- | | GAAP Revenues | $342,509 | $366,971 | | GAAP Operating Income | $60,678 | $70,538 | | Non-GAAP Operating Income | $63,533 | $74,712 | | Non-GAAP % of Revenues | 18.5% | 20.4% | - Security segment's non-GAAP operating income increased from $63,533 thousand in Q4 2024 to $74,712 thousand in Q4 2025, with its non-GAAP operating margin improving from 18.5% to 20.4%18 Optoelectronics & Manufacturing Segment (Q4) Optoelectronics & Manufacturing segment's non-GAAP operating income rose to $15.3 million in Q4 2025, maintaining a strong 13.6% operating margin | Metric (in thousands) | Q4 2024 | Q4 2025 | | :-------------------- | :-------- | :-------- | | GAAP Revenues | $102,069 | $112,667 | | GAAP Operating Income | $10,321 | $14,999 | | Non-GAAP Operating Income | $14,185 | $15,326 | | Non-GAAP % of Revenues | 13.9% | 13.6% | - Optoelectronics & Manufacturing segment's non-GAAP operating income increased from $14,185 thousand in Q4 2024 to $15,326 thousand in Q4 2025, maintaining a strong non-GAAP operating margin of 13.6%18 Healthcare Segment (Q4) Healthcare segment's non-GAAP operating income significantly decreased to $0.4 million in Q4 2025, with its operating margin falling to 0.9% | Metric (in thousands) | Q4 2024 | Q4 2025 | | :-------------------- | :-------- | :-------- | | GAAP Revenues | $50,305 | $42,684 | | GAAP Operating Income | $3,856 | $(1,368) | | Non-GAAP Operating Income | $4,656 | $368 | | Non-GAAP % of Revenues | 9.3% | 0.9% | - Healthcare segment's non-GAAP operating income significantly decreased from $4,656 thousand in Q4 2024 to $368 thousand in Q4 2025, with its non-GAAP operating margin falling from 9.3% to 0.9%18 FY 2025 Segment Performance (Non-GAAP) For FY2025, Security showed robust growth, Optoelectronics & Manufacturing increased profitability, while Healthcare experienced a decline Security Segment (FY) The Security segment's non-GAAP operating income increased to $221.7 million in FY2025, maintaining a strong 18.5% operating margin | Metric (in thousands) | FY 2024 | FY 2025 | | :-------------------- | :-------- | :-------- | | GAAP Revenues | $1,043,073 | $1,196,180 | | GAAP Operating Income | $183,270 | $204,952 | | Non-GAAP Operating Income | $195,512 | $221,716 | | Non-GAAP % of Revenues | 18.7% | 18.5% | - Security segment's non-GAAP operating income increased from $195,512 thousand in FY2024 to $221,716 thousand in FY2025, with a non-GAAP operating margin of 18.5%20 Optoelectronics & Manufacturing Segment (FY) Optoelectronics & Manufacturing segment's non-GAAP operating income increased to $54.0 million in FY2025, maintaining a 13.1% operating margin | Metric (in thousands) | FY 2024 | FY 2025 | | :-------------------- | :-------- | :-------- | | GAAP Revenues | $384,268 | $412,065 | | GAAP Operating Income | $42,814 | $51,540 | | Non-GAAP Operating Income | $50,356 | $54,021 | | Non-GAAP % of Revenues | 13.1% | 13.1% | - Optoelectronics & Manufacturing segment's non-GAAP operating income increased from $50,356 thousand in FY2024 to $54,021 thousand in FY2025, maintaining a non-GAAP operating margin of 13.1%20 Healthcare Segment (FY) Healthcare segment's non-GAAP operating income decreased to $6.0 million in FY2025, with its operating margin declining to 3.5% | Metric (in thousands) | FY 2024 | FY 2025 | | :-------------------- | :-------- | :-------- | | GAAP Revenues | $171,435 | $168,362 | | GAAP Operating Income | $6,013 | $2,462 | | Non-GAAP Operating Income | $8,028 | $5,960 | | Non-GAAP % of Revenues | 4.7% | 3.5% | - Healthcare segment's non-GAAP operating income decreased from $8,028 thousand in FY2024 to $5,960 thousand in FY2025, with its non-GAAP operating margin declining from 4.7% to 3.5%20 Fiscal Year 2026 Outlook OSI Systems projects FY2026 revenues between $1.805 billion and $1.850 billion, with non-GAAP diluted EPS expected to range from $10.11 to $10.39 FY 2026 Financial Guidance OSI Systems forecasts FY2026 revenues between $1.805 billion and $1.850 billion, with non-GAAP diluted EPS projected from $10.11 to $10.39 FY 2026 Financial Guidance | Metric | Guidance (FY 2026) | | :-------------------------- | :----------------------- | | Revenues | $1.805 billion - $1.850 billion | | YoY Growth Rate (Revenues) | 5.4% - 8.0% | | Non-GAAP Diluted Earnings Per Share | $10.11 - $10.39 | | YoY Growth Rate (Non-GAAP EPS) | 8.0% - 11.0% | Non-GAAP Guidance Explanation The company provides FY2026 diluted EPS guidance solely on a non-GAAP basis, as reconciliation to GAAP is impractical due to unpredictability - Fiscal 2026 diluted earnings per share guidance is provided on a non-GAAP basis only7 - No reconciliation to GAAP diluted EPS is provided for forward-looking guidance due to the inherent difficulty in forecasting timing and amounts of reconciling items (e.g., acquisition costs, non-recurring items) that are outside the Company's control or unpredictable7 Additional Information & Disclosures This section details non-GAAP methodology, outlines forward-looking statement risks, and provides conference call and contact information Presentation of Non-GAAP Financial Measures (Methodology) This section explains the rationale for non-GAAP measures, which exclude specific charges and amortization for clearer operational performance - Non-GAAP financial measures are presented to allow for the comparison of the underlying performance of the Company, excluding the impact of restructuring and other charges, amortization of intangible assets acquired through business acquisitions, and associated tax effects, and discrete income tax items10 - Management believes non-GAAP measures provide enhanced insight into ongoing operations, meaningful information for planning and assessment, and financial results generally more comparable to peer companies10 - Non-GAAP financial measures should not be assessed in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP10 Forward-Looking Statements This section highlights that forward-looking statements are subject to significant uncertainties and risks, which may cause actual results to differ materially - Forward-looking statements relate to the Company's current expectations, beliefs, and projections concerning matters that are not historical facts, including expected revenues, earnings, growth, cash flow generation, and operational performance in fiscal 2026 and beyond12 - Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside the Company's control12 - Potential negative consequences include delays in contract awards, failure to renew key customer contracts, delays in customer programs, cybersecurity breaches, changes in government policies, global economic uncertainty, supply chain disruptions, and unfavorable currency exchange rate fluctuations12 Conference Call & Contact Information Details for the August 21, 2025, conference call and webcast replay are provided, along with contact information for investor inquiries - The Company hosted a conference call and simultaneous webcast on August 21, 2025, at 9:00 am PT (12:00 pm ET) to discuss financial results8 - A replay of the webcast will be available for approximately three months via the Investor Relations section of the OSI Systems website8 - For additional information, contact Ajay Vashishat, Vice President, OSI Systems, Inc. at (310) 349-2237 or avashishat@osi-systems.com13