Hologic(HOLX) - 2026 Q1 - Quarterly Results

Financial Performance - Revenue for the first quarter of fiscal 2026 was $1,047.8 million, representing a 2.5% increase compared to $1,021.8 million in the same quarter last year[1] - GAAP diluted EPS decreased by 9.2% to $0.79, while non-GAAP diluted EPS increased by 1.0% to $1.04[1] - Net income for the three months ended December 27, 2025, was $179.1 million, down from $201.0 million in the prior year, representing a decrease of 10.9%[18] - Basic net income per share decreased to $0.80 from $0.87, while diluted net income per share also fell to $0.79 from $0.87[18] - Consolidated GAAP revenue increased to $1,047.8 million, up 2.7% from $1,021.8 million year-over-year[24] - Organic revenue, excluding COVID-19 related revenue, was $1,002.2 million, reflecting a 2.9% increase from $973.8 million in the prior year[24] - Non-GAAP net income was $235.5 million, compared to $238.6 million in the same quarter of 2024, resulting in a non-GAAP net income percentage of 22.5%[26] - Adjusted EBITDA for the quarter was $330.4 million, an increase from $326.0 million year-over-year[26] Revenue Breakdown - Diagnostics revenue was $464.4 million, a decrease of 1.3%, with organic diagnostics sales growing 1.2% excluding COVID-19 related revenue[5] - Breast Health revenue increased by 1.8% to $375.9 million, driven by strong sales of Endomagnetics products[5] - Surgical revenue grew by 8.7% to $180.8 million, primarily due to increased sales from the acquired Gynesonics business[5] - U.S. revenue increased by 2.0% to $773.5 million, while international revenue increased by 4.0% to $274.3 million[7] - Geographic revenues for the three months ended December 2025 show the United States at 73.8%, Europe at 15.4%, Asia-Pacific at 5.4%, and the rest of the world at 5.4%[37] - The United States revenue increased from 74.2% to 73.8% year-over-year, while Europe decreased from 14.6% to 15.4%[37] - Asia-Pacific revenue slightly increased from 5.9% to 5.4% year-over-year, indicating stable performance in the region[37] - The rest of the world revenue showed a minor decrease from 5.3% to 5.4% year-over-year, reflecting consistent market presence[37] - Overall, the company maintained a steady revenue distribution across geographic regions, with no significant fluctuations[37] Cash Flow and Financial Position - Cash flow from operations was $229.9 million, an increase of 21.4% compared to the prior year[5] - The company ended the quarter with cash and cash equivalents of $2.17 billion and an adjusted net leverage ratio of 0.3 times[7] - Cash and cash equivalents increased to $2,168.0 million as of December 27, 2025, compared to $1,959.5 million at the end of September 2025, reflecting a growth of 10.6%[20] - Total assets rose to $9,180.7 million as of December 27, 2025, up from $9,014.9 million at the end of September 2025, indicating an increase of 1.8%[20] - Total stockholders' equity increased to $5,245.1 million from $5,047.9 million, marking a growth of 3.9%[20] - The net leverage ratio as of December 27, 2025, was 0.3, indicating a strong balance sheet position[36] Expenses - Research and development expenses for the quarter were $60.5 million, slightly up from $60.3 million in the same quarter last year[18] - Selling and marketing expenses decreased to $154.9 million from $166.1 million, a reduction of 6.7%[18] - Capital expenditures for the quarter were $14.7 million, a decrease from $16.8 million in the same period last year[22] - The company plans to continue strategic investments, with $24.0 million allocated in the current quarter, compared to $6.0 million in the previous year[22] Merger and Acquisition - The company has scheduled a special meeting for stockholders to vote on a merger agreement with Blackstone and TPG[5] - Due to the merger agreement, the company is not providing annual or quarterly financial guidance for fiscal 2026[7] - Hologic is currently in the process of a proposed acquisition by affiliates of Blackstone Inc. and TPG Capital, with a Definitive Proxy Statement filed with the SEC[15] - The company faces various risks related to the proposed transaction, including regulatory approvals and potential impacts on stockholder relationships[14] Future Outlook - The performance metrics suggest a stable market environment for the company in the reported period[37] - The company continues to focus on geographic diversification to sustain revenue growth[37] - Future outlook may involve strategies to enhance revenue in underperforming regions like Asia-Pacific[37] - The company is likely to explore new product developments and market expansions to drive future growth[37]