Financial Performance - Consolidated net sales for Q3 2025 were $653.0 million, a 0.5% increase from $649.7 million in Q3 2024; on a currency neutral basis, sales decreased by approximately 1.7%[131] - Life Science segment sales for Q3 2025 were $261.8 million, flat compared to Q3 2024; on a currency neutral basis, sales decreased by 1.5% due to constrained academic research funding[132] - Clinical Diagnostics segment sales for Q3 2025 were $391.2 million, a 0.6% increase from Q3 2024; on a currency neutral basis, sales decreased by 1.8% primarily 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% from $1.90 billion in the same period of 2024; on a currency neutral basis, sales decreased by 0.7%[143] Profitability and Margins - Consolidated gross margin for Q3 2025 was 52.6%, down from 54.8% in Q3 2024, driven by higher material costs and reduced fixed manufacturing absorption[134] - Consolidated gross margins for the first nine months of 2025 were 52.6%, down from 54.6% in the same period of 2024, with decreases in both Life Science and Clinical Diagnostics segments[146] Expenses - SG&A 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, due to higher employee-related and restructuring costs[135] - R&D expenses for Q3 2025 were $71.3 million, or 10.9% of sales, down from $91.0 million, or 14.0% of sales in Q3 2024, primarily due to higher in-process R&D charges in the prior year[136] Cash Flow and Investments - 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] Share Repurchase and Financing - 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] - 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, and interest rates of 3.3% and 3.7% per annum, respectively[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] Tax and Market Risk - The effective income tax rate for Q3 2025 was 20.7%, down from 24.2% in Q3 2024, primarily driven by the geographical mix of earnings and unrealized gains/losses in equity securities[141] - There have been no material changes in market risk disclosures from the previous annual report[164] Management Outlook - Management believes that cash, cash equivalents, and short-term investments, along with cash flow from operations, will be adequate for operations, R&D, and acquisitions for the next twelve months and beyond[159]
Bio-Rad(BIO_B) - 2025 Q3 - Quarterly Report