CooperCompanies Announces Third Quarter 2025 Results

Core Insights - CooperCompanies reported strong margins, double-digit earnings growth, and robust free cash flow, although revenues were below expectations. The company raised its earnings guidance for the fiscal year 2025, anticipating improved revenue in Q4 and fiscal 2026 driven by MyDAY® [2][5]. Financial Performance - Total revenue for the third quarter of fiscal 2025 was $1,060.3 million, representing a 6% increase year-over-year. CooperVision (CVI) revenue was $718.4 million, up 6%, while CooperSurgical (CSI) revenue was $341.9 million, up 4% [5][6]. - GAAP diluted earnings per share (EPS) was $0.49, down 6% from the previous year, while non-GAAP diluted EPS increased by 15% to $1.10 [5][6]. - Gross margin was 65%, down from 66% year-over-year, primarily due to a product line exit at CooperSurgical. Non-GAAP gross margin improved by 70 basis points to 67% [6][19]. - Operating margin was 17%, down from 19% year-over-year, but non-GAAP operating margin increased by 60 basis points to 26% [6][19]. Revenue Breakdown - CooperVision revenue by category included: - Toric and multifocal lenses: $358.8 million, a 10% increase year-over-year - Sphere and other lenses: $359.6 million, a 3% increase year-over-year [4][7]. - Revenue by geography showed: - Americas: $286.0 million, a 2% increase year-over-year - EMEA: $292.1 million, a 14% increase year-over-year - Asia Pacific: $140.3 million, a 1% increase year-over-year [4][7]. Cash Flow and Share Repurchase - Cash provided by operations was $261.5 million, with capital expenditures of $96.9 million, resulting in free cash flow of $164.6 million [6][9]. - The company repurchased $52.1 million of common stock, approximately 724.3 thousand shares, under its existing share repurchase program [9]. Fiscal Year 2025 Guidance - The company updated its fiscal year 2025 financial guidance, projecting total revenue of $4,076 - $4,096 million with organic growth of 4% to 4.5% [10][13]. - Non-GAAP diluted EPS guidance for fiscal 2025 is projected to be between $4.08 and $4.12 [13].