Masimo(US:MASI)2025-11-04 21:09Financial Performance - Third quarter 2025 GAAP revenue reached $371.5 million, representing an 8.2% growth compared to the previous year[6] - Non-GAAP revenue for the third quarter was $371.2 million, reflecting a 7.6% growth on a constant currency basis[6] - Non-GAAP net income per diluted share increased by 38% to $1.32 compared to the prior year period[6] - GAAP net income from continuing operations for Q3 2025 was $53.7 million, up from $24.3 million in Q3 2024, representing a 121% increase[29] - Non-GAAP net income from continuing operations for Q3 2025 was $72.1 million, compared to $52.3 million in Q3 2024, reflecting a 38% growth[29] - Total revenue for Q3 2025 reached $371.5 million, an increase from $343.3 million in Q3 2024, marking an 8.5% year-over-year growth[34] - Operating income for Q3 2025 was $83.6 million, significantly higher than $38.2 million in Q3 2024, showing a 119% increase[34] - For the nine months ended September 27, 2025, the net loss was $219.8 million compared to a net income of $44.7 million for the same period in 2024[36] - Net income from continuing operations increased to $145.8 million, up from $81.2 million year-over-year[36] Financial Guidance - The company expects non-GAAP revenue for the full year 2025 to be between $1,510 million and $1,530 million, indicating an increase of 8.5% to 10.0% on a constant currency basis[4] - Non-GAAP operating profit is projected to be between $428 million and $440 million for the full year[7] - The company anticipates a non-GAAP operating margin of 28.4% to 28.8% for the upcoming period[7] - The financial guidance includes the impact of new tariffs, which may cause actual results to differ from projections[5] - Non-GAAP constant currency revenue guidance for full-year 2025 is projected between $1,514 million and $1,534 million, compared to $1,395 million in 2024, indicating a growth rate of 8.5% to 10%[30] Cash Flow and Assets - Cash and cash equivalents increased to $312.3 million as of September 27, 2025, up from $123.6 million at the end of 2024[32] - Total current assets decreased to $1,048.3 million from $1,225.8 million at the end of 2024, primarily due to a reduction in assets held-for-sale[32] - Total liabilities decreased to $1,007.5 million from $1,573.8 million at the end of 2024, indicating improved financial stability[32] - Net cash provided by operating activities from continuing operations was $156.9 million, compared to $135.5 million in the prior year[36] - The company reported a net cash increase of $134.0 million, with cash, cash equivalents, and restricted cash at the end of the period totaling $315.4 million[38] - Borrowings under the line of credit amounted to $344.0 million, while repayments were $516.5 million, resulting in a net cash used in financing activities of $(306.1) million[38] - The company generated $283.8 million in net cash from investing activities, significantly up from $(34.7) million in the previous year[36] Operational Efficiency - Operating margin improved by 450 basis points during the third quarter, driven by sales growth and operational efficiency initiatives[3] - Research and development expenses for Q3 2025 were $30.5 million, down from $37.3 million in Q3 2024, reflecting a focus on cost management[34] - The depreciation and amortization expense was $25.2 million, down from $30.7 million year-over-year[36] - Stock-based compensation expense increased to $26.9 million from $25.5 million in the prior year[36] Strategic Initiatives - The company closed the sale of Sound United to Harman and utilized the net proceeds for stock repurchase[3] - The strategic partnership with Philips was expanded during the quarter, indicating a focus on long-term growth[3] Product and Market Position - The company’s innovative Masimo SET technology is estimated to be used on over 200 million patients annually[40] - Masimo's products are the primary pulse oximetry used in all 10 top U.S. hospitals as ranked in the 2025 Newsweek World's Best Hospitals listing[40]