Bio-Rad(US:BIO)2025-10-29 20:18Financial Performance - For the third quarter of 2025, net sales were $653.0 million, a slight increase of 0.5% compared to $649.7 million in the same period of 2024[131]. - The Life Science segment reported sales of $261.8 million for Q3 2025, essentially flat year-over-year, with a currency neutral decrease of 1.5%[132]. - The Clinical Diagnostics segment sales for Q3 2025 were $391.2 million, an increase of 0.6%, but a currency neutral decrease of 1.8% due to lower reimbursement rates for diabetes testing in China[133]. - For the first nine months of 2025, sales were $1.89 billion, a decrease of 0.5% compared to $1.90 billion in the same period of 2024[143]. - The Clinical Diagnostics segment sales for the first nine months of 2025 were $1.14 billion, a decrease of 0.8% year-over-year[145]. Gross Margin and Expenses - Consolidated gross margin for Q3 2025 was 52.6%, down from 54.8% in Q3 2024, primarily due to higher material costs[134]. - Consolidated gross margins for the first nine months of 2025 were 52.6%, down from 54.6% in the same period of 2024[146]. - Selling, general and administrative expenses for Q3 2025 were $206.8 million, or 31.7% of sales, compared to $200.4 million, or 30.8% of sales in Q3 2024[135]. - Research and development expenses decreased to $71.3 million, or 10.9% of sales, from $91.0 million, or 14.0% of sales in Q3 2024[136]. Cash Flow and Investments - As of September 30, 2025, the company had $1.4 billion in cash, cash equivalents, and short-term investments, with approximately 18% held in foreign subsidiaries[156]. - Net cash provided by operations increased to $367.3 million for the nine months ended September 30, 2025, compared to $331.0 million for the same period in 2024, primarily due to improved working capital[160]. - Net cash used in investing activities rose to $155.5 million for the nine months ended September 30, 2025, from $129.7 million in 2024, driven by cash outflows for the acquisition of Stilla[161]. - Net cash used in financing activities increased to $286.5 million for the nine months ended September 30, 2025, compared to $192.6 million in 2024, mainly due to higher share repurchase payments[162]. - The company repurchased 1,205,381 shares of Class A common stock for $295.5 million during the nine months ended September 30, 2025, compared to 690,857 shares for $203.6 million in 2024[162]. - As of September 30, 2025, $284.6 million remained available for repurchases under the 2023 Share Repurchase Program[162]. Debt and Credit Facilities - The company received $1.2 billion in cash proceeds from the issuance of Senior Notes in March 2022, with maturities in March 2027 and March 2032[158]. - The interest rates on the Senior Notes are 3.3% and 3.7% per annum, payable semiannually[158]. - The company has access to a $200.0 million unsecured Revolving Credit Agreement, available through February 2029, with no outstanding borrowings as of September 30, 2025[157]. Management Outlook - Management believes that cash, cash equivalents, and short-term investments, along with cash flow from operations, will be adequate for operations and acquisitions for the next twelve months and beyond[159]. - There have been no material changes in market risk disclosures from the previous annual report as of September 30, 2025[164].