Hologic(HOLX) - 2025 Q4 - Annual Results

Revenue Performance - Revenue for Q4 2025 was $1,049.5 million, representing a 6.2% increase compared to Q4 2024[3] - Total revenues for the three months ended September 27, 2025, were $1,049.5 million, an increase from $987.9 million for the same period in 2024, representing a growth of 6.3%[18] - Consolidated GAAP revenue increased to $1,049.5 million, up 6.2% from $987.9 million year-over-year[24] - Organic revenue, excluding COVID-19 related revenue, was $998.6 million, representing a 6.2% increase from $940.1 million[24] Earnings and Profitability - GAAP diluted EPS increased by 9.2% to $0.83, while non-GAAP diluted EPS rose by 11.9% to $1.13[5] - Net income for the three months ended September 27, 2025, was $187.3 million, compared to $178.6 million for the same period in 2024, reflecting an increase of 4.9%[18] - Net income for the year ended September 27, 2025, was $565.7 million, down 28.4% from $789.5 million in the previous year[22] - GAAP net income for the twelve months ended September 27, 2025, was $565.7 million, with a non-GAAP net income of $970.3 million[28] - Non-GAAP earnings per share for the twelve months ended September 27, 2025, was $4.26, compared to $4.08 for the twelve months ended September 28, 2024[28] Margins and Expenses - GAAP gross margin was 55.6%, a decrease of 90 basis points, primarily due to expenses from closing the Manchester manufacturing facility[7] - The gross profit margin for the three months ended September 27, 2025, was approximately 55.6%, compared to 56.5% for the same period in 2024[18] - Research and development expenses for the three months ended September 27, 2025, were $65.1 million, slightly down from $67.3 million in the same period of 2024[18] - Selling and marketing expenses increased to $147.8 million for the three months ended September 27, 2025, compared to $146.0 million for the same period in 2024[18] - The total operating expenses for the three months ended September 27, 2025, were $346.5 million, compared to $327.6 million for the same period in 2024, indicating an increase of 5.5%[18] Cash Flow and Assets - Cash flow from operations was $355.1 million in Q4 2025[5] - The company ended the quarter with cash and cash equivalents of $1.96 billion and short-term investments of $243 million[7] - Cash and cash equivalents at the end of the period were $1,959.5 million, down from $2,160.2 million, a decrease of 9.3%[22] - Total current assets decreased to $3,668.1 million from $3,823.3 million, a decline of 4.1% year-over-year[20] Strategic Developments - The company announced a definitive agreement to be acquired by funds managed by Blackstone and TPG, valued at up to $79 per share[5] - The company is not providing financial guidance for fiscal year 2026 due to the acquisition agreement[7] - The company is in the process of a proposed acquisition by affiliates of Blackstone Inc. and TPG Capital, which may impact future operations and strategies[13] - Acquisition of businesses net of cash acquired amounted to $321.5 million, reflecting ongoing strategic investments[22] Operational Efficiency - The company reported a non-GAAP operating margin of 31.2%, compared to 30.0% in the previous year, indicating improved operational efficiency[25] - Adjusted EBITDA for the last four quarters was $1,339.7 million, reflecting a strong operational performance[31] - The company reported a net leverage ratio of 0.4, indicating a solid balance sheet position[31] Market Focus - Hologic's ability to predict product demand and develop successful market strategies remains a key focus amid competitive pressures and market uncertainties[14] - The company emphasizes the importance of reviewing both GAAP and non-GAAP financial measures for a comprehensive understanding of its financial performance[11] Geographic Revenue Distribution - Geographic revenue distribution showed the United States contributing 74.3% of total revenues for the twelve months ended September 27, 2025[32]