Core Insights - Hologic's Diagnostics unit has faced significant challenges this year due to geopolitical factors, particularly cuts in USAID funding affecting its HIV testing business in Africa and a difficult operating environment in China impacting its Cytology business, resulting in only 0.9% year-over-year growth in Q3 of fiscal 2025 [1][8] - Despite these challenges, the underlying growth drivers in the Diagnostics segment remain strong, with specific products like the BV, CV/TV assay and the Panther Fusion platform contributing positively to growth [2][3][8] - Hologic's entry into the oncology space through Biotheranostics is showing promise, particularly with the Breast Cancer Index test gaining strong adoption [4][8] Diagnostics Segment Performance - The BV, CV/TV assay has become Hologic's second-largest assay globally, targeting the estimated 60% of U.S. women who are not tested for vaginitis [2] - The Panther Fusion platform is gaining traction as customers adopt more testing menus, contributing to solid growth in the fiscal third quarter [3][8] - Hologic plans to expand its IVD test offerings for gastrointestinal and hospital-acquired infections, which is expected to enhance future growth in the Diagnostics segment [3] Competitive Landscape - Abbott's Diagnostics sales declined by 1.5% in Q2 of 2025, primarily due to decreased COVID-19 testing sales and challenges in China, which are projected to impact full-year sales growth by approximately $700 million [5] - Danaher reported growth in its molecular diagnostics business, offsetting declines in respiratory tests, and announced a partnership with AstraZeneca to develop precision medicine diagnostic tools [6] Stock Performance and Valuation - Hologic's stock has declined by 5.8% year-to-date, compared to an 11.7% decline in the industry [7] - The company is trading at a forward five-year price-to-earnings ratio of 15.05X, significantly lower than the industry average of 27.49X, indicating potential value [9]

Core Insights - Hologic reported strong Q3 fiscal 2025 results, exceeding expectations with revenues of $1.02 billion and adjusted EPS of $1.08, driven by robust performance in the Molecular Diagnostics and Interventional segments [5][9][22] - The company aims for improved growth in Q4, supported by a rebound in the Breast Health business and solid performances across other divisions [1][9] - Hologic's stock rose 4.4% following the results, although it has declined 5.9% year-to-date, which is better than the industry average decline of 8.8% [2][22] Financial Performance - Revenues of $1.02 billion and adjusted EPS of $1.08 surpassed Zacks Consensus Estimates [5][9] - The Molecular Diagnostics business saw a 7.3% increase in U.S. sales, while overall Diagnostics grew modestly by 0.9% [5][6] - Breast Health revenues decreased by 5.8% year-over-year but improved from the previous quarter, with Interventional sales rising by 31.8% [6][8] - Gross margin (non-GAAP) was 60.3%, down 80 basis points, and operating margin was 30.1%, down 110 basis points [8] Guidance and Forecast - Hologic raised its 2025 revenue guidance to a range of $4.08-$4.09 billion and non-GAAP EPS to $4.23-$4.26 [9][10] - The company expects mid-single-digit growth in Diagnostics, low-single-digit decline in Breast Health, and high-single-digit growth in Surgical [10] - The Zacks Consensus Estimate for fiscal 2025 earnings has increased by 0.7%, indicating year-over-year growth [11] Strategic Developments - Hologic is optimistic about the Breast Health segment, led by new commercial leadership and product innovations, including the upcoming launch of the Genius AI Detection PRO solution [14] - The company is addressing the U.S. vaginitis testing gap and plans to diversify its diagnostic offerings [15] - Hologic's shares are trading at a forward five-year price-to-sales (P/S) ratio of 3.55, lower than the industry average of 4.10 [16][19] Challenges - Hologic faces ongoing macroeconomic volatility, including a 10% baseline tariff on U.S. imports, with an estimated quarterly gross tariff impact of $10-$12 million for fiscal 2026 [20][21] - The international Diagnostics division is affected by challenges in China and reduced funding for HIV testing in Africa [21]

Core Insights - Hologic, Inc. reported adjusted earnings per share (EPS) of $1.08 for Q3 fiscal 2025, reflecting a 1.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.86% [1] - The company's revenues reached $1.02 billion, a 1.2% increase year-over-year, also exceeding the Zacks Consensus Estimate by 1.68% [2] - Despite the positive earnings and revenue results, Hologic's shares fell 0.7% in after-hours trading following the announcement [2] Revenue Breakdown - U.S. revenues decreased by 0.6% to $760.7 million, missing projections [3] - International revenues increased by 6.9% to $263.1 million, surpassing expectations [3] Segment Performance - Diagnostics segment revenues grew by 1.8% to $448.9 million, driven by higher molecular diagnostics sales [4] - Breast Health segment revenues fell by 5.1% to $365.2 million, attributed to lower sales of mammography capital equipment [6] - Surgical revenues increased by 7.1% to $178.4 million, primarily due to the acquired Gynesonics business [8] - Skeletal Health revenues surged by 64.7% to $31.3 million, exceeding projections [9] Margin Analysis - Adjusted gross margin decreased by 80 basis points to 60.3% due to product mix and increased reserves [10] - Adjusted operating margin contracted by 110 basis points to 30.1%, impacted by margin dilution from acquisitions [10] Financial Position - Hologic ended Q3 fiscal 2025 with cash and cash equivalents of $1.74 billion, up from $1.43 billion at the end of Q1 [11] - Total long-term debt was $2.51 billion, slightly down from $2.52 billion in the previous quarter [11] - Net cash provided by operating activities was $702 million, down from $918.2 million a year ago [11] Future Outlook - For fiscal 2025, Hologic expects revenues between $4.08 billion and $4.09 billion, indicating a year-over-year increase of 1.3%-1.5% [12] - Adjusted EPS is projected to be in the range of $4.23-$4.26, reflecting a growth of 3.7%-4.4% year-over-year [13] - For Q4 fiscal 2025, revenues are forecasted between $1.03 billion and $1.04 billion, suggesting a year-over-year increase of 4.3%-5.3% [13] - Adjusted EPS for Q4 is estimated between $1.09 and $1.12, implying a growth of 7.9% to 10.9% year-over-year [14] Overall Assessment - Hologic delivered earnings and revenue beats in Q3 fiscal 2025, with significant contributions from Diagnostics and Surgical units [15] - The company is making progress towards improved growth, although it faces challenges in gross and operating margins [16]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents Hologic, Inc.'s unaudited consolidated financial statements and management's financial analysis [Item 1. Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents Hologic, Inc.'s unaudited consolidated financial statements and related notes for the periods ended June 28, 2025 [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) The company reported a slight increase in total revenues for both the three and nine months ended June 28, 2025, compared to the prior year, with net income stable for the three-month period but significantly decreased for the nine-month period | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Revenues | $1,023.8 | $1,011.4 | $3,050.9 | $3,042.3 | | Gross profit | $576.6 | $560.3 | $1,534.4 | $1,670.1 | | Income from operations | $254.6 | $244.0 | $477.4 | $652.6 | | Net income | $194.9 | $194.5 | $378.5 | $610.9 | | Diluted EPS | $0.86 | $0.82 | $1.66 | $2.57 | | Diluted Shares Outstanding (thousands) | 225,462 | 236,466 | 228,186 | 238,081 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income increased for the three months ended June 28, 2025, primarily due to a positive change in foreign currency translation adjustment, while for the nine-month period, it decreased due to lower net income despite a positive foreign currency translation | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net income | $194.9 | $194.5 | $378.5 | $610.9 | | Changes in foreign currency translation adjustment | $51.1 | $(2.8) | $21.7 | $17.4 | | Other comprehensive income (loss) | $50.0 | $(2.5) | $21.4 | $8.1 | | Comprehensive income | $244.9 | $192.0 | $399.9 | $619.0 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets and total stockholders' equity decreased compared to September 28, 2024, mainly driven by a reduction in cash and cash equivalents and a decrease in intangible assets, partially offset by an increase in goodwill | Metric | June 28, 2025 ($ millions) | September 28, 2024 ($ millions) | | :-------------------------------- | :------------------------- | :---------------------------- | | Total current assets | $3,421.4 | $3,823.3 | | Property, plant and equipment, net | $570.5 | $537.8 | | Intangible assets, net | $642.2 | $844.6 | | Goodwill | $3,643.9 | $3,443.1 | | Total assets | $8,806.1 | $9,156.0 | | Total current liabilities | $962.5 | $1,037.2 | | Long-term debt, net of current portion | $2,509.0 | $2,497.1 | | Total stockholders' equity | $4,842.5 | $5,130.0 | | Total liabilities and stockholders' equity | $8,806.1 | $9,156.0 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased from September 28, 2024, to June 28, 2025, primarily due to significant share repurchases and other comprehensive losses, partially offset by net income and stock-based compensation - Total stockholders' equity decreased from **$5,130.0 million** as of September 28, 2024, to **$4,842.5 million** as of June 28, 2025, primarily driven by **$752.9 million** in common stock repurchases and **$51.2 million** in other comprehensive losses, partially offset by **$378.5 million** in net income and **$72.0 million** in stock-based compensation[16](index=16&type=chunk)[20](index=20&type=chunk)[23](index=23&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased for the nine months ended June 28, 2025, compared to the prior year, with investing activities using significantly more cash due to business acquisitions, and financing activities also using substantial cash, primarily for share repurchases | Activity | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $702.0 | $918.2 | | Net cash used in investing activities | $(350.6) | $(185.3) | | Net cash used in financing activities | $(778.8) | $(1,051.8) | | Net decrease in cash and cash equivalents | $(425.0) | $(316.6) | | Cash and cash equivalents, end of period | $1,735.2 | $2,439.1 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail Hologic, Inc.'s accounting policies, revenue recognition, fair value measurements, acquisitions, debt, and other financial events [(1) Basis of Presentation](index=10&type=section&id=(1)%20Basis%20of%20Presentation) The unaudited consolidated financial statements are prepared in accordance with SEC rules for Form 10-Q, using GAAP, and include normal recurring adjustments, with management's estimates and assumptions being crucial, and the company having refinanced its term loan and revolving credit facility on July 15, 2025 - The unaudited consolidated financial statements are prepared in accordance with SEC rules for Form 10-Q and U.S. GAAP, relying on management's significant estimates and assumptions[26](index=26&type=chunk)[28](index=28&type=chunk) - On July 15, 2025, the company refinanced its term loan and revolving credit facility, reducing the term loan to **$1.17 billion** and the revolver to **$1.25 billion**, with terms substantially consistent with the prior credit facility[29](index=29&type=chunk) [(2) Revenue](index=10&type=section&id=(2)%20Revenue) Total revenues increased slightly for both the three and nine months ended June 28, 2025, with Diagnostics and GYN Surgical segments showing growth, while Breast Health experienced a decline, and disposables remaining the largest revenue source | Segment | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | | :---------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Diagnostics | $448.9 | $440.8 | $1,373.1 | $1,338.7 | | Breast Health | $365.2 | $385.0 | $1,090.4 | $1,147.3 | | GYN Surgical | $178.4 | $166.6 | $507.3 | $484.8 | | Skeletal Health | $31.3 | $19.0 | $80.1 | $71.5 | | **Total** | **$1,023.8** | **$1,011.4** | **$3,050.9** | **$3,042.3** | | Revenue Type | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Disposables | $658.4 | $623.2 | $1,959.0 | $1,871.0 | | Capital equipment, components and software | $152.0 | $188.0 | $462.0 | $596.2 | | Service | $208.8 | $196.8 | $615.3 | $560.6 | | Other | $4.6 | $3.4 | $14.6 | $14.5 | | **Total** | **$1,023.8** | **$1,011.4** | **$3,050.9** | **$3,042.3** | - The company expects to recognize approximately **$898.2 million** in future revenue from remaining performance obligations, with **15%** in fiscal 2025, **43%** in fiscal 2026, **23%** in fiscal 2027, **12%** in fiscal 2028, and **7%** thereafter, primarily from support and maintenance contracts and extended warranties in Breast Health and Skeletal Health[39](index=39&type=chunk) [(3) Leases](index=13&type=section&id=(3)%20Leases) The company acts as a lessor for certain assets, primarily diagnostics instruments, under operating lease arrangements, with lease revenue representing less than 3% of consolidated revenue - The company leases diagnostics instruments to customers under operating lease arrangements, with lease revenue accounting for less than **3%** of consolidated revenue[43](index=43&type=chunk) [(4) Fair Value Measurements](index=13&type=section&id=(4)%20Fair%20Value%20Measurements) The company measures various assets and liabilities at fair value, including money market funds, U.S. Treasury securities, derivative instruments, and contingent consideration, and recorded significant intangible asset impairment charges totaling $204.0 million in Q2 fiscal 2025 | Item | June 28, 2025 Fair Value ($ millions) | September 28, 2024 Fair Value ($ millions) | | :-------------------------------- | :-------------------------------- | :--------------------------------- | | **Assets:** | | | | Money market mutual funds | $461.9 | $341.7 | | U.S. Treasury securities | $380.9 | $626.3 | | Interest rate swaps | $4.5 | $3.1 | | Forward foreign currency contracts | $0.1 | — | | **Liabilities:** | | | | Contingent consideration | — | $1.1 | | Forward foreign currency contracts | $11.1 | $12.6 | - During Q2 fiscal 2025, the company recorded **$204.0 million** in intangible asset impairment charges related to developed technology, trade names, and customer relationships from the Acessa, Bolder, Diagenode, and Mobidiag acquisitions, reducing their carrying values significantly, with an additional **$16.9 million** impairment recorded for a Mobidiag in-process R&D project[51](index=51&type=chunk) [(5) Business Combinations](index=17&type=section&id=(5)%20Business%20Combinations) In fiscal 2025, Hologic acquired Gynesonics for $340.7 million, expanding its GYN Surgical segment, and in fiscal 2024, it acquired Endomag for $313.9 million, enhancing its Breast Health segment, with both acquisitions resulting in significant goodwill and identifiable intangible assets - On January 2, 2025, Hologic acquired Gynesonics, Inc. for **$340.7 million**, allocating **$146.1 million** to intangible assets and **$191.0 million** to goodwill, to expand its GYN Surgical segment[59](index=59&type=chunk)[61](index=61&type=chunk)[65](index=65&type=chunk) - On July 25, 2024, Hologic acquired Endomagnetics Ltd (Endomag) for **$313.9 million**, allocating **$197.8 million** to intangible assets and **$140.1 million** to goodwill, to enhance its Breast Health segment with breast surgery localization and lymphatic tracing technologies[66](index=66&type=chunk)[68](index=68&type=chunk)[72](index=72&type=chunk) [(6) Strategic Investments](index=19&type=section&id=(6)%20Strategic%20Investments) Hologic invested $24.5 million for a 45% ownership in Maverix Medical LLC, a VIE accounted for under the equity method, and holds other non-marketable equity securities totaling $53.3 million as of June 28, 2025 - Hologic invested **$24.5 million** for a **45%** ownership in Maverix Medical LLC, a variable interest entity (VIE) accounted for under the equity method, and recorded a proportionate share of Maverix's net loss of **$5.9 million** for the nine months ended June 28, 2025[73](index=73&type=chunk) - The company holds other non-marketable equity securities totaling **$53.3 million** as of June 28, 2025, measured at cost less impairment, adjusted for observable price changes[75](index=75&type=chunk) [(7) Disposition](index=20&type=section&id=(7)%20Disposition) On October 3, 2023 (Q1 fiscal 2024), Hologic completed the sale of its SSI ultrasound imaging business for $1.9 million in cash, after funding it with $33.2 million, and recorded a $51.7 million charge in Q4 fiscal 2023 to adjust the asset group to fair value less costs to sell - Hologic sold its SSI ultrasound imaging business for **$1.9 million** in cash on October 3, 2023, after funding it with **$33.2 million**, and recorded a **$51.7 million** charge in Q4 fiscal 2023 to reflect the asset group's fair value less costs to sell[76](index=76&type=chunk) [(8) Restructuring](index=20&type=section&id=(8)%20Restructuring) Hologic implemented several restructuring initiatives, including reorganizing and reducing costs in China (Q3 fiscal 2025, $4.1 million severance), reorganizing U.S. departments (Q2 fiscal 2025, $5.0 million severance), and refining the Mobidiag business strategy (Q1 fiscal 2024), which involved facility closures, employee terminations, and related impairment and severance charges - In Q3 fiscal 2025, Hologic reorganized and reduced costs in China, terminating **85** employees and recording **$4.1 million** in severance benefits[78](index=78&type=chunk) - In Q2 fiscal 2025, the company reorganized U.S. departments, terminating **50** employees in Breast Health, Surgical, and Corporate functions, resulting in **$5.0 million** in severance benefits[79](index=79&type=chunk) - The Mobidiag business strategy was refined in Q1 fiscal 2024, leading to the discontinuation of certain products, closure of Finland and France facilities, and transfer of operations to San Diego, resulting in **$7.2 million** in accelerated depreciation, a **$12.5 million** lease asset impairment, and **$16.4 million** in total severance charges for **190** employees[80](index=80&type=chunk)[81](index=81&type=chunk) [(9) Borrowings and Credit Arrangements](index=21&type=section&id=(9)%20Borrowings%20and%20Credit%20Arrangements) As of June 28, 2025, Hologic had $2.51 billion in total debt, comprising a $1.17 billion term loan, $942.4 million in 2029 Senior Notes, and $398.1 million in 2028 Senior Notes, and refinanced its credit agreement on July 15, 2025, maintaining similar terms | Debt Type | June 28, 2025 ($ millions) | September 28, 2024 ($ millions) | | :-------------------------------- | :------------------------- | :---------------------------- | | Term Loan | $1,168.5 | $1,158.7 | | 2028 Senior Notes | $398.1 | $397.6 | | 2029 Senior Notes | $942.4 | $940.8 | | **Total debt obligations** | **$2,509.0** | **$2,534.6** | - On July 15, 2025, Hologic refinanced its 2021 Term Loan and Revolver with a new 2025 Credit Agreement, establishing a **$1.17 billion** secured term loan maturing July 15, 2030, and a **$1.25 billion** secured revolving credit facility also maturing July 15, 2030[89](index=89&type=chunk)[94](index=94&type=chunk)[215](index=215&type=chunk)[218](index=218&type=chunk) - The 2025 Credit Agreement includes financial covenants (total leverage ratio and interest coverage ratio) with which the company was in compliance as of June 28, 2025[88](index=88&type=chunk)[217](index=217&type=chunk) [(10) Trade Receivables and Allowance for Credit Losses](index=23&type=section&id=(10)%20Trade%20Receivables%20and%20Allowance%20for%20Credit%20Losses) Hologic applies ASU No. 2016-13 for trade receivables, using an estimated loss rate method based on historical experience and current conditions, with the allowance for credit losses remaining stable at $40.4 million as of June 28, 2025 - Hologic applies ASU No. 2016-13 for trade receivables, using an estimated loss rate method that considers historical collection experience, current conditions, and forecasts[97](index=97&type=chunk) | Period | Balance at Beginning of Period ($ millions) | Credit Loss (Gain) ($ millions) | Write-offs, Payments and Foreign Exchange ($ millions) | Balance at End of Period ($ millions) | | :---------------- | :---------------------------------------- | :------------------------------ | :----------------------------------------------------- | :------------------------------------ | | 9 Months Ended June 28, 2025 | $41.4 | $(0.4) | $(0.6) | $40.4 | | 9 Months Ended June 29, 2024 | $38.5 | $5.8 | $(2.9) | $41.4 | [(11) Derivatives](index=23&type=section&id=(11)%20Derivatives) Hologic uses interest rate swaps as cash flow hedges for variable rate debt and forward foreign currency exchange contracts and options to mitigate operational exposures from foreign currency fluctuations, with the remaining interest rate swap having a fair value asset position of $4.5 million as of June 28, 2025 - Hologic uses interest rate swaps as cash flow hedges for variable rate debt, with a notional amount of **$500 million**, fixing the SOFR component at **3.46%** (first contract) and **2.98%** (second contract), and the fair value of the remaining swap was an asset of **$4.5 million** as of June 28, 2025[102](index=102&type=chunk) - The company enters into forward foreign currency exchange contracts and foreign currency option contracts (not designated for hedge accounting) with a notional amount of **$212.2 million** as of June 28, 2025, to mitigate operational exposures from foreign currency fluctuations, primarily in Euro, the U.K. Pound, Australian dollar, Canadian dollar, Chinese Yuan, and Japanese Yen[103](index=103&type=chunk) | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Realized gain (loss) from forward foreign currency contracts | $1.9 | $1.7 | $6.2 | $3.5 | | Unrealized gain (loss) from forward foreign currency contracts | $(13.9) | $(0.5) | $1.6 | $(6.2) | | Unrealized gain (loss) from foreign currency option contracts | — | — | $(0.8) | — | | **Total gain (loss) recognized in income** | **$(12.0)** | **$1.2** | **$7.0** | **$(2.7)** | [(12) Commitments and Contingencies](index=25&type=section&id=(12)%20Commitments%20and%20Contingencies) Hologic is facing product liability complaints related to its BioZorb 3D Bioabsorbable Marker, with approximately 175 plaintiffs alleging injuries and undisclosed side effects, and the company believes it has valid defenses but cannot reasonably assess the outcome at this early stage - Hologic is a defendant in product liability complaints filed by approximately **175** plaintiffs, alleging injuries and undisclosed side effects from the BioZorb 3D Bioabsorbable Marker, and the company plans to vigorously defend its position but cannot reasonably assess the outcome[106](index=106&type=chunk) [(13) Net Income Per Share](index=26&type=section&id=(13)%20Net%20Income%20Per%20Share) Diluted net income per common share decreased for the nine months ended June 28, 2025, compared to the prior year, primarily due to lower net income and a reduced weighted average number of diluted shares outstanding | Metric | 3 Months Ended June 28, 2025 (thousands) | 3 Months Ended June 29, 2024 (thousands) | 9 Months Ended June 28, 2025 (thousands) | 9 Months Ended June 29, 2024 (thousands) | | :------------------------------------ | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Basic weighted average common shares outstanding (thousands) | 224,315 | 234,604 | 226,791 | 236,373 | | Diluted weighted average common shares outstanding (thousands) | 225,462 | 236,466 | 228,186 | 238,081 | | Basic EPS ($) | $0.87 | $0.83 | $1.67 | $2.58 | | Diluted EPS ($) | $0.86 | $0.82 | $1.66 | $2.57 | [(14) Stock-Based Compensation](index=26&type=section&id=(14)%20Stock-Based%20Compensation) Stock-based compensation expense increased for the nine months ended June 28, 2025, totaling $72.0 million, with the company granting 0.6 million stock options and 0.7 million RSUs during this period, and significant unrecognized compensation expense remaining | Category | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Cost of revenues | $2.6 | $2.6 | $9.4 | $8.5 | | Research and development | $1.6 | $2.2 | $6.6 | $8.4 | | Selling and marketing | $3.5 | $3.5 | $11.2 | $10.4 | | General and administrative | $5.8 | $6.3 | $44.8 | $41.8 | | **Total** | **$13.5** | **$14.6** | **$72.0** | **$69.1** | - As of June 28, 2025, Hologic had **$10.9 million** of unrecognized compensation expense for stock options (weighted-average period of **2.5 years**) and **$55.4 million** for stock units (RSUs, PSUs, FCF PSUs, MSUs) (weighted-average period of **1.9 years**)[111](index=111&type=chunk) [(15) Other Balance Sheet Information](index=28&type=section&id=(15)%20Other%20Balance%20Sheet%20Information) Inventories increased to $713.7 million as of June 28, 2025, primarily in raw materials and finished goods, and property, plant, and equipment, net, also increased to $570.5 million, with equipment under customer usage agreements being a significant component | Category | June 28, 2025 ($ millions) | September 28, 2024 ($ millions) | | :--------------- | :------------------------- | :---------------------------- | | Raw materials | $277.2 | $251.4 | | Work-in-process | $64.5 | $62.0 | | Finished goods | $372.0 | $366.4 | | **Total** | **$713.7** | **$679.8** | | Category | June 28, 2025 ($ millions) | September 28, 2024 ($ millions) | | :-------------------------------- | :------------------------- | :---------------------------- | | Equipment | $389.0 | $378.1 | | Equipment under customer usage agreements | $575.5 | $523.1 | | Building and improvements | $253.0 | $247.1 | | **Total Property, Plant and Equipment, Gross** | **$1,343.2** | **$1,266.5** | | Less – accumulated depreciation and amortization | $(772.7) | $(728.7) | | **Net Property, Plant and Equipment** | **$570.5** | **$537.8** | [(16) Business Segments and Geographic Information](index=28&type=section&id=(16)%20Business%20Segments%20and%20Geographic%20Information) Hologic operates in four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health, with Diagnostics and GYN Surgical revenues increasing, while Breast Health declined, and the U.S. remaining the largest geographic market, though its percentage of total revenue slightly decreased | Segment | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | | :---------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Diagnostics | $448.9 | $440.8 | $1,373.1 | $1,338.7 | | Breast Health | $365.2 | $385.0 | $1,090.4 | $1,147.3 | | GYN Surgical | $178.4 | $166.6 | $507.3 | $484.8 | | Skeletal Health | $31.3 | $19.0 | $80.1 | $71.5 | | **Total** | **$1,023.8** | **$1,011.4** | **$3,050.9** | **$3,042.3** | | Geographic Region | 3 Months Ended June 28, 2025 (%) | 3 Months Ended June 29, 2024 (%) | 9 Months Ended June 28, 2025 (%) | 9 Months Ended June 29, 2024 (%) | | :---------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | United States | 74.3% | 75.7% | 74.2% | 74.9% | | Europe | 14.5% | 12.6% | 14.5% | 13.4% | | Asia-Pacific | 5.9% | 6.4% | 5.9% | 6.4% | | Rest of World | 5.3% | 5.3% | 5.4% | 5.3% | | **Total** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | [(17) Income Taxes](index=30&type=section&id=(17)%20Income%20Taxes) Hologic's effective tax rate for the nine months ended June 28, 2025, was 16.6%, higher than the 5.1% in the prior year, primarily due to impairment charges in high-tax jurisdictions and the absence of a significant discrete tax benefit from a worthless stock deduction recognized in the prior year | Period | 3 Months Ended June 28, 2025 (%) | 3 Months Ended June 29, 2024 (%) | 9 Months Ended June 28, 2025 (%) | 9 Months Ended June 29, 2024 (%) | | :---------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Effective Tax Rate | 17.1% | 19.2% | 16.6% | 5.1% | - The effective tax rate for the nine months ended June 28, 2025, was impacted by impairment charges in high-tax jurisdictions and the geographic mix of income, while the prior year benefited from a **$107.2 million** discrete tax benefit related to a worthless stock deduction[120](index=120&type=chunk)[121](index=121&type=chunk) [(18) Intangible Assets](index=31&type=section&id=(18)%20Intangible%20Assets) Intangible assets, net, decreased to $642.2 million as of June 28, 2025, from $844.6 million in September 2024, primarily due to significant impairment charges totaling $204.0 million in Q2 fiscal 2025 related to developed technology, customer relationships, and trade names from Acessa, Bolder, Diagenode, and Mobidiag | Description | Gross Carrying Value (June 28, 2025) ($ millions) | Accumulated Amortization (June 28, 2025) ($ millions) | | :-------------------------------- | :---------------------------------------- | :-------------------------------------------- | | Developed technology | $4,544.7 | $3,974.4 | | In-process research and development | $8.2 | — | | Customer relationships | $593.7 | $576.5 | | Trade names | $262.9 | $228.1 | | **Total acquired intangible assets** | **$5,409.5** | **$4,779.0** | - In Q2 fiscal 2025, Hologic recorded **$204.0 million** in impairment charges for developed technology, customer relationships, and trade names from Acessa, Bolder, Diagenode, and Mobidiag, due to reduced forecasted revenues and operating results, with an additional **$16.9 million** impairment recorded for Mobidiag's in-process R&D[125](index=125&type=chunk)[127](index=127&type=chunk) - Estimated remaining amortization expense for acquired intangible assets is **$47.3 million** for the remainder of fiscal 2025, **$150.4 million** for fiscal 2026, **$63.2 million** for fiscal 2027, **$60.0 million** for fiscal 2028, and **$53.7 million** for fiscal 2029[124](index=124&type=chunk) [(19) Product Warranties](index=32&type=section&id=(19)%20Product%20Warranties) Product warranty activity remained stable, with the balance at the end of the nine months ended June 28, 2025, at $9.9 million, consistent with the beginning of the period | Period | Balance at Beginning of Period ($ millions) | Provisions ($ millions) | Settlements/Adjustments ($ millions) | Balance at End of Period ($ millions) | | :---------------- | :---------------------------------------- | :---------------------- | :----------------------------------- | :------------------------------------ | | 9 Months Ended June 28, 2025 | $9.9 | $7.2 | $(7.2) | $9.9 | | 9 Months Ended June 29, 2024 | $8.3 | $7.2 | $(6.3) | $9.2 | [(20) Accumulated Other Comprehensive Income (Loss)](index=33&type=section&id=(20)%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Accumulated other comprehensive loss decreased to $(90.1) million as of June 28, 2025, from $(111.5) million in September 2024, primarily due to positive foreign currency translation adjustments, partially offset by losses on available-for-sale securities and hedged interest rate swaps | Component | Beginning Balance (Sept 28, 2024) ($ millions) | OCI (Loss) before Reclassifications (9 Months Ended June 28, 2025) ($ millions) | Ending Balance (June 28, 2025) ($ millions) | | :-------------------------------- | :--------------------------------------------- | :---------------------------------------------------------------- | :------------------------------------------ | | Foreign Currency Translation | $(114.9) | $21.7 | $(93.2) | | Available For-Sale Debt Securities | $1.6 | $(1.5) | $0.1 | | Hedged Interest Rate Swaps | $1.8 | $1.2 | $3.0 | | **Total** | **$(111.5)** | **$21.4** | **$(90.1)** | [(21) Share Repurchase](index=33&type=section&id=(21)%20Share%20Repurchase) Hologic's Board authorized a new $1.5 billion stock repurchase program on September 12, 2024, with $937.5 million remaining unused as of June 28, 2025, and the company repurchased 4.7 million shares for $312.6 million under this authorization and completed a $250.0 million accelerated share repurchase (ASR) program in Q1 fiscal 2025 - On September 12, 2024, Hologic authorized a new **$1.5 billion** stock repurchase program, with **$937.5 million** remaining unused as of June 28, 2025[134](index=134&type=chunk)[221](index=221&type=chunk) - During the nine months ended June 28, 2025, the company repurchased **4.7 million** shares for **$312.6 million** under the new authorization and completed a **$250.0 million** accelerated share repurchase (ASR) program in Q1 fiscal 2025, acquiring **3.3 million** shares[134](index=134&type=chunk)[135](index=135&type=chunk) [(22) New Accounting Pronouncements](index=33&type=section&id=(22)%20New%20Accounting%20Pronouncements) Hologic is evaluating the impact of new FASB ASUs: ASU 2023-07 (Segment Reporting, effective fiscal 2025), ASU 2023-09 (Income Taxes, effective fiscal 2026), and ASU 2024-03 (Expense Disaggregation, effective fiscal 2028), on its consolidated financial statements - Hologic is evaluating the impact of ASU 2023-07 (Segment Reporting, effective fiscal 2025), ASU 2023-09 (Income Taxes, effective fiscal 2026), and ASU 2024-03 (Expense Disaggregation, effective fiscal 2028) on its consolidated financial statements[136](index=136&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Hologic's financial condition, results of operations, acquisitions, liquidity, and critical accounting estimates for the periods ended June 28, 2025 [CAUTIONARY STATEMENT](index=35&type=section&id=CAUTIONARY%20STATEMENT) This section highlights that the report contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially - The report contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors, which may cause actual results to differ materially from those expressed or implied[141](index=141&type=chunk)[142](index=142&type=chunk) [OVERVIEW](index=36&type=section&id=OVERVIEW) Hologic is a developer, manufacturer, and supplier of diagnostics products, medical imaging systems, and surgical products focused on women's health, operating in four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health - Hologic is a developer, manufacturer, and supplier of premium diagnostics products, medical imaging systems, and surgical products focused on women's health, operating through four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health[143](index=143&type=chunk) - The Diagnostics segment offers molecular diagnostic assays (Panther, Panther Fusion), ThinPrep cytology systems, and Rapid Fetal Fibronectin Test, including assays for STDs, HPV, viral loads, vaginitis, and acute respiratory infections[144](index=144&type=chunk) - The Breast Health segment provides solutions for breast imaging (3D mammography), biopsy, breast surgery, and pathology, including Selenia 3D Dimensions and 3Dimensions systems[145](index=145&type=chunk)[146](index=146&type=chunk) - The GYN Surgical segment includes MyoSure, NovaSure, Fluent, Acessa ProVu, Gynesonics Sonata, CoolSeal, and JustRight surgical stapler for treating uterine fibroids, abnormal uterine bleeding, and other gynecological conditions[147](index=147&type=chunk) - The Skeletal Health segment offers Horizon DXA for bone density and body composition, and Fluoroscan Insight FD mini C-arm for orthopedic surgical procedures on extremities[148](index=148&type=chunk) [ACQUISITIONS](index=38&type=section&id=ACQUISITIONS) Hologic completed two significant acquisitions: Gynesonics in January 2025 for $340.7 million, enhancing its GYN Surgical segment, and Endomag in July 2024 for $313.9 million, strengthening its Breast Health segment, with both involving substantial allocations to intangible assets and goodwill - On January 2, 2025, Hologic acquired Gynesonics, Inc. for **$340.7 million**, allocating **$146.1 million** to intangible assets and **$191.0 million** to goodwill, to expand its GYN Surgical segment[151](index=151&type=chunk) - On July 25, 2024, Hologic acquired Endomagnetics Ltd (Endomag) for **$313.9 million**, allocating **$197.8 million** to intangible assets and **$140.1 million** to goodwill, to enhance its Breast Health segment[152](index=152&type=chunk) [DISPOSITION](index=38&type=section&id=DISPOSITION) Hologic completed the sale of its SSI ultrasound imaging business on October 3, 2023, for $1.9 million in cash, after funding it with $33.2 million - Hologic sold its SSI ultrasound imaging business for **$1.9 million** in cash on October 3, 2023, after funding it with **$33.2 million**[153](index=153&type=chunk) [RESULTS OF OPERATIONS](index=38&type=section&id=RESULTS%20OF%20OPERATIONS) Hologic's results of operations for the three and nine months ended June 28, 2025, show mixed performance across segments, with slight revenue growth driven by Diagnostics and GYN Surgical, offset by declines in Breast Health, and operating expenses increasing due to acquisitions and impairment charges [Product Revenues](index=38&type=section&id=Product%20Revenues) Product revenues slightly decreased for the three and nine months ended June 28, 2025, compared to the prior year, with Diagnostics and GYN Surgical seeing increases, while Breast Health experienced a significant decline due to lower digital mammography system sales, and Skeletal Health showed strong growth in the three-month period | Segment | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :---------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Diagnostics | $415.1 | $406.9 | 2.0% | $1,271.3 | $1,246.8 | 2.0% | | Breast Health | $200.9 | $228.9 | (12.2)% | $603.1 | $696.7 | (13.4)% | | GYN Surgical | $175.7 | $165.4 | 6.2% | $499.7 | $479.6 | 4.2% | | Skeletal Health | $18.7 | $10.0 | 87.0% | $46.9 | $44.1 | 6.3% | | **Total** | **$810.4** | **$811.2** | **(0.1)%** | **$2,421.0** | **$2,467.2** | **(1.9)%** | - Diagnostics product revenues increased due to higher sales volumes of BV/CV assays and Fusion respiratory assays, partially offset by decreased SARS-CoV-2 assay sales[156](index=156&type=chunk)[157](index=157&type=chunk) - Breast Health product revenues decreased significantly (**12.2%** for 3 months, **13.4%** for 9 months) primarily due to lower sales of digital mammography systems (3D Dimensions), attributed to longer sales cycles and insufficient sales force execution, partially offset by the Endomag acquisition[158](index=158&type=chunk) - Skeletal Health product revenues increased significantly (**87.0%** for 3 months) due to increased sales volume of Horizon DXA systems, following the resolution of a temporary stop-ship order[160](index=160&type=chunk) [Service and Other Revenues](index=40&type=section&id=Service%20and%20Other%20Revenues) Service and other revenues increased by 6.6% and 9.5% for the three and nine months ended June 28, 2025, respectively, driven by growth in Breast Health service contracts from an expanded installed base and higher lab testing volumes from the Biotheranostics business | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Service and Other Revenues | $213.4 | $200.2 | 6.6% | $629.9 | $575.1 | 9.5% | - The increase in service and other revenues was primarily due to higher Breast Health service contract revenue from an expanded installed base and increased lab testing volumes from the Biotheranostics business, particularly for the Breast Cancer Index test[164](index=164&type=chunk) [Cost of Product Revenues](index=40&type=section&id=Cost%20of%20Product%20Revenues) Cost of product revenues as a percentage of product revenues increased for both the three and nine months ended June 28, 2025, primarily due to lower sales of higher-margin Breast Health products, increased sales of lower-margin GYN Surgical products, and significant intangible asset impairment charges | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Cost of Product Revenues | $310.5 | $298.2 | 4.1% | $916.6 | $913.9 | 0.3% | | Amortization of Acquired Intangible Assets | $41.1 | $44.4 | (7.3)% | $135.3 | $134.9 | 0.3% | | Impairment of Intangible Assets | — | $13.3 | ** | $183.4 | $39.2 | ** | | **Total** | **$351.6** | **$355.9** | **(1.2)%** | **$1,235.3** | **$1,088.0** | **13.5%** | - The cost of product revenues as a percentage of product revenues increased to **38.3%** (3 months) and **37.9%** (9 months) in fiscal 2025, up from **36.8%** and **37.0%** in the prior year, mainly due to lower sales of higher-margin Breast Health products and increased sales of lower-margin GYN Surgical products[166](index=166&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) - Intangible asset impairment charges of **$183.4 million** were recorded in the nine months ended June 28, 2025, primarily related to developed technology from Acessa, Bolder, Diagenode, and Mobidiag businesses[174](index=174&type=chunk) - The company estimates direct tariff costs of approximately **$10 million to $12 million** quarterly, primarily on GYN Surgical and Breast Health interventional breast solutions disposable products from Costa Rica (**10%** tariff) and Skeletal Health products from Mexico (mostly exempt)[171](index=171&type=chunk) [Cost of Service and Other Revenues](index=42&type=section&id=Cost%20of%20Service%20and%20Other%20Revenues) Service and other revenues gross margin increased to 55.2% and 55.4% for the three and nine months ended June 28, 2025, respectively, driven by higher service contract revenue from an expanded installed base and increased lab testing revenue from Biotheranostics | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Cost of Service and Other Revenue | $95.6 | $95.2 | 0.4% | $281.2 | $284.2 | (1.1)% | - Gross margin for service and other revenues increased to **55.2%** (3 months) and **55.4%** (9 months) in fiscal 2025, up from **52.4%** and **50.6%** in the prior year, due to increased service contract and preventative maintenance revenue from an expanded installed base of digital mammography systems and higher-margin lab testing revenue from Biotheranostics[176](index=176&type=chunk) [Operating Expenses](index=43&type=section&id=Operating%20Expenses) Total operating expenses increased for both the three and nine months ended June 28, 2025, primarily due to higher selling and marketing and general and administrative expenses, largely driven by recent acquisitions, and significant intangible asset impairment charges, while research and development expenses decreased | Expense Category | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Research and development | $61.4 | $64.1 | (4.3)% | $183.1 | $205.5 | (10.9)% | | Selling and marketing | $152.2 | $146.3 | 4.0% | $472.8 | $439.4 | 7.6% | | General and administrative | $99.1 | $94.0 | 5.4% | $334.5 | $306.2 | 9.2% | | Amortization of acquired intangible assets | $3.0 | $5.3 | (43.4)% | $11.5 | $24.3 | (52.7)% | | Impairment of intangible assets | — | $0.4 | ** | $37.5 | $5.6 | 569.6% | | Restructuring charges | $6.3 | $6.2 | ** | $17.6 | $34.8 | ** | | **Total Operating Expenses** | **$322.0** | **$316.3** | **1.8%** | **$1,057.0** | **$1,017.5** | **3.9%** | - Research and development expenses decreased due to lower compensation, benefits, and project spend, partially offset by expenses from Endomag and Gynesonics acquisitions and increased consulting[177](index=177&type=chunk) - Selling and marketing expenses increased due to the inclusion of expenses from the Endomag (**$6.6 million** for 3 months, **$26.0 million** for 9 months) and Gynesonics (**$6.3 million** for 3 months, **$18.7 million** for 9 months) acquisitions[178](index=178&type=chunk) - Impairment of intangible assets in operating expenses totaled **$37.5 million** for the nine months ended June 28, 2025, including a **$16.9 million** charge for Mobidiag's in-process R&D asset and **$20.5 million** allocated to customer lists and trade names from Acessa, Bolder, Diagenode, and Mobidiag[182](index=182&type=chunk) [Interest Income](index=44&type=section&id=Interest%20Income) Interest income decreased by 42.3% and 31.0% for the three and nine months ended June 28, 2025, respectively, due to lower average cash and investment balances and reduced U.S. Federal Funds Rate | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :--------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Interest Income | $16.4 | $28.4 | (42.3)% | $55.5 | $80.3 | (31.0)% | - The decrease in interest income was primarily due to lower average cash and investment balances and a reduction in the U.S. Federal Funds Rate over the last twelve months[184](index=184&type=chunk) [Interest Expense](index=44&type=section&id=Interest%20Expense) Interest expense decreased by 9.4% and 1.8% for the three and nine months ended June 28, 2025, respectively, primarily due to a lower principal balance on the 2021 Credit Agreement and reduced interest rates | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :--------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Interest Expense | $(28.9) | $(31.9) | (9.4)% | $(88.5) | $(90.2) | (1.8)% | - The decrease in interest expense was primarily due to a lower principal balance outstanding under the 2021 Credit Agreement and a reduction in interest rates, partially offset by a **$9.4 million** reduction in amounts received under interest rate swap agreements for the nine-month period[186](index=186&type=chunk) [Other Income (Expense), net](index=45&type=section&id=Other%20Income%20(Expense)%2C%20net) Other income (expense), net, shifted to a net expense of $(7.1) million for the three months ended June 28, 2025, primarily due to foreign currency exchange losses and a share loss from Maverix Medical, while for the nine-month period, it was a net income of $9.6 million, driven by foreign currency exchange gains and deferred compensation plan gains | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :------- | :---------------------------------------- | :---------------------------------------- | :------- | | Other Income (Expense), net | $(7.1) | $0.2 | ** | $9.6 | $0.8 | ** | - For the three months ended June 28, 2025, other income (expense), net, was **$(7.1) million**, primarily due to **$10.6 million** in net foreign currency exchange losses and a **$2.5 million** share loss from Maverix Medical, partially offset by a **$5.9 million** gain from life insurance contracts[187](index=187&type=chunk) - For the nine months ended June 28, 2025, other income (expense), net, was **$9.6 million**, driven by **$11.5 million** in net foreign currency exchange gains and **$3.9 million** from life insurance contracts, partially offset by a **$5.9 million** share loss from Maverix Medical[188](index=188&type=chunk) [Provision for Income Taxes](index=45&type=section&id=Provision%20for%20Income%20Taxes) The provision for income taxes decreased for the three months ended June 28, 2025, but significantly increased for the nine-month period, with effective tax rates of 17.1% and 16.6%, respectively, and the nine-month increase was due to impairment charges in high-tax jurisdictions and the absence of a prior-year discrete tax benefit | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Provision for Income Taxes | $40.1 | $46.2 | (13.2)% | $75.5 | $32.6 | ** | - The effective tax rate for the nine months ended June 28, 2025, was **16.6%**, significantly higher than the **5.1%** in the prior year, primarily due to impairment charges in high-tax jurisdictions and the absence of a **$107.2 million** discrete tax benefit from a worthless stock deduction recorded in Q1 fiscal 2024[190](index=190&type=chunk)[192](index=192&type=chunk) [Segment Results of Operations](index=46&type=section&id=Segment%20Results%20of%20Operations) Segment results show Diagnostics and GYN Surgical revenues increasing, while Breast Health declined, and operating income varied, with Diagnostics improving, Breast Health slightly down, GYN Surgical significantly decreasing due to impairment, and Skeletal Health remaining challenged [Diagnostics](index=46&type=section&id=Diagnostics) Diagnostics revenues increased by 1.8% and 2.6% for the three and nine months ended June 28, 2025, respectively, driven by product and lab testing revenue growth, and operating income increased significantly due to higher gross profit and lower operating expenses, despite impairment charges | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Total Revenues | $448.9 | $440.8 | 1.8% | $1,373.1 | $1,338.7 | 2.6% | | Operating Income | $111.1 | $89.7 | 23.9% | $249.5 | $210.1 | 18.8% | | Operating Income as % of Segment Revenue | 24.7% | 20.3% | | 18.2% | 15.7% | | - The increase in operating income was driven by higher gross profit (**55.0%** for 3 months) due to increased sales of Women's Health and Fusion respiratory assays, favorable manufacturing variances, and lower intangible asset amortization from impairment charges[195](index=195&type=chunk) - Operating expenses decreased due to lower R&D headcount, bonus expense, and marketing initiatives, and the prior year included significant lease impairment and intellectual property charges[196](index=196&type=chunk) [Breast Health](index=47&type=section&id=Breast%20Health) Breast Health revenues decreased by 5.1% and 5.0% for the three and nine months ended June 28, 2025, respectively, primarily due to lower product sales of digital mammography systems, and operating income also decreased, despite an increase in gross margin driven by service revenue growth and prior-year impairment charges | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Total Revenues | $365.2 | $385.0 | (5.1)% | $1,090.4 | $1,147.3 | (5.0)% | | Operating Income | $99.6 | $102.4 | (2.7)% | $262.8 | $296.2 | (11.3)% | | Operating Income as % of Segment Revenue | 27.3% | 26.6% | | 24.1% | 25.8% | | - Gross margin increased to **57.0%** (3 months) and **56.4%** (9 months) due to prior-year BioZorb impairment charges, increased service contract revenue, and the inclusion of Endomag, partially offset by lower sales of 3D Dimensions systems[199](index=199&type=chunk) - Operating expenses increased due to the inclusion of Endomag acquisition expenses (**$11.2 million** for 3 months, **$40.5 million** for 9 months), partially offset by decreased marketing and bonus expenses[200](index=200&type=chunk) [GYN Surgical](index=47&type=section&id=GYN%20Surgical) GYN Surgical revenues increased by 7.1% and 4.6% for the three and nine months ended June 28, 2025, respectively, driven by product revenue growth, particularly from the Gynesonics acquisition, but operating income decreased significantly due to higher operating expenses and a substantial decrease in gross profit for the nine-month period, impacted by impairment charges | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Total Revenues | $178.4 | $166.6 | 7.1% | $507.3 | $484.8 | 4.6% | | Operating Income | $48.8 | $56.7 | (13.9)% | $(29.3) | $144.3 | (120.3)% | | Operating Income as % of Segment Revenue | 27.4% | 34.0% | | (5.8)% | 29.8% | | - Gross margin decreased to **67.2%** (3 months) and **43.4%** (9 months) due to impairment charges related to Acessa and Bolder developed technology assets (**$110.4 million**) and increased sales of lower-margin products like Fluent Fluid Management systems and Sonata[204](index=204&type=chunk)[205](index=205&type=chunk) - Operating expenses increased due to Gynesonics acquisition expenses (**$9.9 million** for 3 months, **$44.2 million** for 9 months), including **$20.8 million** for accelerated unvested stock options, and intangible asset impairment charges (**$16.0 million**) from Acessa and Bolder businesses[206](index=206&type=chunk) [Skeletal Health](index=48&type=section&id=Skeletal%20Health) Skeletal Health revenues increased by 64.7% and 12.0% for the three and nine months ended June 28, 2025, respectively, primarily due to increased Horizon DXA system sales, with operating income remaining flat for the three-month period but decreasing significantly for the nine-month period due to lower gross profit from non-cancelable purchase commitments and increased rework costs | Metric | 3 Months Ended June 28, 2025 ($ millions) | 3 Months Ended June 29, 2024 ($ millions) | Change (%) | 9 Months Ended June 28, 2025 ($ millions) | 9 Months Ended June 29, 2024 ($ millions) | Change (%) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Total Revenues | $31.3 | $19.0 | 64.7% | $80.1 | $71.5 | 12.0% | | Operating Income | $(4.9) | $(4.8) | 2.1% | $(5.6) | $2.0 | (380.0)% | | Operating Income as % of Segment Revenue | (15.5)% | (25.3)% | | (7.0)% | 2.7% | | - Gross margin decreased to **4.6%** (3 months) and **17.6%** (9 months) due to a charge for non-cancelable purchase commitments related to the Insight FD system, increased costs to rework Horizon DXA systems, and lower average selling prices[208](index=208&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=48&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Hologic's liquidity as of June 28, 2025, was characterized by $2.46 billion in working capital and $1.74 billion in cash, which decreased by $425.0 million in the first nine months of fiscal 2025, primarily due to significant cash usage in investing and financing activities, partially offset by operating cash flow - As of June 28, 2025, Hologic had **$2,458.9 million** in working capital and **$1,735.2 million** in cash and cash equivalents[210](index=210&type=chunk) - Cash and cash equivalents decreased by **$425.0 million** during the first nine months of fiscal 2025, driven by **$350.6 million** used in investing activities (Gynesonics acquisition, capital expenditures, strategic investments) and **$778.8 million** used in financing activities (share repurchases, debt payments), partially offset by **$702.0 million** provided by operating activities[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk) [Debt](index=49&type=section&id=Debt) Hologic's total recorded debt outstanding was $2.51 billion as of June 28, 2025, consisting of a $1.17 billion term loan, $942.4 million in 2029 Senior Notes, and $398.1 million in 2028 Senior Notes - Total recorded debt outstanding was **$2.51 billion** as of June 28, 2025, comprising a **$1.17 billion** term loan, **$942.4 million** in 2029 Senior Notes, and **$398.1 million** in 2028 Senior Notes[214](index=214&type=chunk) [2025 Credit Agreement (Subsequent Event)](index=49&type=section&id=2025%20Credit%20Agreement%20(Subsequent%20Event)) On July 15, 2025, Hologic refinanced its credit facilities, establishing a new $1.17 billion secured term loan and a $1.25 billion secured revolving credit facility, both maturing on July 15, 2030, with the agreement including customary financial covenants, with which the company was in compliance as of June 28, 2025 - On July 15, 2025, Hologic refinanced its credit facilities, establishing a **$1.17 billion** secured term loan and a **$1.25 billion** secured revolving credit facility, both maturing on July 15, 2030[215](index=215&type=chunk)[218](index=218&type=chunk) - The 2025 Credit Agreement includes financial covenants (total net leverage ratio and interest coverage ratio) that Hologic was in compliance with as of June 28, 2025[217](index=217&type=chunk) [2028 Senior Notes](index=50&type=section&id=2028%20Senior%20Notes) Hologic has $400.0 million aggregate principal of 4.625% Senior Notes due February 1, 2028, which are general senior unsecured obligations - Hologic has **$400.0 million** aggregate principal of **4.625%** Senior Notes due February 1, 2028, which are general senior unsecured obligations[219](index=219&type=chunk) [2029 Senior Notes](index=50&type=section&id=2029%20Senior%20Notes) Hologic has $950.0 million aggregate principal of 3.250% Senior Notes due February 15, 2029, which are general senior unsecured obligations - Hologic has **$950.0 million** aggregate principal of **3.250%** Senior Notes due February 15, 2029, which are general senior unsecured obligations[220](index=220&type=chunk) [Stock Repurchase Program](index=50&type=section&id=Stock%20Repurchase%20Program) On September 12, 2024, Hologic authorized a new $1.5 billion stock repurchase program, with $937.5 million remaining unused as of June 28, 2025 - Hologic's Board authorized a new **$1.5 billion** stock repurchase program on September 12, 2024, with **$937.5 million** remaining unused as of June 28, 2025[221](index=221&type=chunk) [Legal Contingencies](index=50&type=section&id=Legal%20Contingencies) Hologic is involved in various legal proceedings, including product liability complaints related to the BioZorb 3D Bioabsorbable Marker, and the company accrues loss contingencies when an adverse outcome is probable and estimable - Hologic is involved in product liability complaints regarding the BioZorb 3D Bioabsorbable Marker and accrues loss contingencies when an adverse outcome is probable and reasonably estimable under ASC 450[223](index=223&type=chunk) [Future Liquidity Considerations](index=50&type=section&id=Future%20Liquidity%20Considerations) Hologic expects its current cash, investments, operating cash flows, and revolving credit facility to provide sufficient funds for existing commitments and normal operations over the next twelve months, with longer-term liquidity dependent on future operating performance and potential additional capital for future expenditures or acquisitions - Hologic anticipates sufficient liquidity for the next twelve months from cash, investments, operating cash flows, and the 2025 Revolver to fund existing commitments and normal operations[224](index=224&type=chunk) - Longer-term liquidity is contingent on future operating performance, and additional capital may be required for substantial capital expenditures, debt repayment, acquisitions, or strategic transactions[224](index=224&type=chunk)[225](index=225&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=51&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Hologic's financial statements rely on significant estimates and judgments, including revenue recognition, allowances, valuations, purchase price allocations, recoverability of long-lived assets and goodwill, and tax reserves, with no material changes reported from the prior annual report - Hologic's financial statements involve significant estimates and judgments across areas like revenue recognition, allowances, business combinations, asset recoverability, and tax reserves[226](index=226&type=chunk) - No material changes to critical accounting policies or estimates were reported from the Annual Report on Form 10-K for the fiscal year ended September 28, 2024[227](index=227&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Hologic's primary market risk exposures are interest rate risk and foreign currency exchange risk, with a hypothetical 10% increase in SOFR increasing annual interest expense by $2.9 million (net of hedges), and a 100 basis point change in market rates changing annual interest income by $14.7 million, while foreign currency exchange risk is not considered significant - Hologic's primary market risk exposures are interest rate risk and foreign currency exchange risk[229](index=229&type=chunk) - A hypothetical **10%** adverse movement (increase in SOFR rate) would increase annual interest expense by approximately **$2.9 million** (net of interest rate swap hedge)[230](index=230&type=chunk) - A hypothetical **100 basis point** change in market rates would change annual interest income by approximately **$14.7 million** based on current cash and investment balances[231](index=231&type=chunk) - Foreign currency exchange risk is not considered significant, with a hypothetical **10%** increase or decrease in foreign currencies not expected to have a material adverse impact on financial condition or results of operations[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Hologic's management, including the CEO and CFO, concluded that its disclosure controls and procedures were effective as of June 28, 2025, and no material changes in internal control over financial reporting occurred during the latest fiscal quarter - Hologic's disclosure controls and procedures were evaluated and deemed effective as of June 28, 2025, by management, including the CEO and CFO[235](index=235&type=chunk) - No material changes in internal control over financial reporting occurred during the latest fiscal quarter[236](index=236&type=chunk) [PART II – OTHER INFORMATION](index=53&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides other information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 12 to the Consolidated Financial Statements - Information on legal proceedings is incorporated by reference from Note 12 to the Consolidated Financial Statements[238](index=238&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) There are no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended September 28, 2024, or any subsequently filed reports - No material changes to risk factors from the Annual Report on Form 10-K for fiscal year ended September 28, 2024, or subsequently filed reports[239](index=239&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the period from April 27, 2025, to May 24, 2025, Hologic repurchased 667,618 shares of common stock at an average price of $53.36 per share under its $1.5 billion stock repurchase program, with $937.5 million remaining unused | Period of Repurchase | Total Number of Shares Purchased () | Average Price Paid Per Share ($) | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under Our Programs ($ millions) | | :-------------------------------- | :----------------------------------- | :------------------------------- | :---------------------------------------------------------------------------------------------------------------- | | March 30, 2025 – April 26, 2025 | — | — | $973.1 | | April 27, 2025 – May 24, 2025 | 667,618 | $53.36 | $937.5 | | May 25, 2025 – June 28, 2025 | — | — | $937.5 | | **Total** | **667,618** | **$53.36**

Core Insights - Hologic reported Q3 2025 financial results with GAAP revenue of $1,023.8 million and non-GAAP earnings per share of $1.08, both exceeding analyst expectations [1][2] - The company experienced strong operating cash flow but faced challenges in organic revenue growth and margins, particularly in the Breast Health segment [1] Financial Performance - Non-GAAP EPS was $1.08, up 1.9% year-over-year, while GAAP EPS increased by 4.9% to $0.86 [2] - GAAP revenue of $1,023.8 million represented a 1.2% increase from Q3 2024 [2] - Non-GAAP gross margin decreased by 0.8 percentage points to 60.3%, and operating margin fell by 1.1 percentage points to 30.1% [2][9] - Net income (non-GAAP) was $244.1 million, down 2.6% from the previous year [2] Segment Performance - The Diagnostics segment saw a revenue increase of 1.8% to $448.9 million, with core molecular diagnostic products driving growth despite a 17.1% decline in COVID-19 related revenue [5] - Breast Health revenue declined by 5.1%, with organic revenue down 10.1%, attributed to a post-pandemic lull in equipment replacement [6] - The Surgical segment revenue increased by 7.1%, supported by the Gynesonics acquisition and strong international sales [7] - Skeletal Health revenue surged by 64.7%, recovering from previous supply constraints [8] Strategic Focus - Hologic is focusing on innovation in diagnostic testing and expanding advanced imaging products, with an emphasis on regulatory compliance and R&D investment [4] - The company aims to increase recurring revenue streams through service contracts and disposable products [4] Future Guidance - For Q4 FY2025, management projects GAAP revenue between $1.03 billion and $1.04 billion, indicating a 4.3% to 5.3% year-over-year increase [11] - Non-GAAP EPS is expected to rise to between $1.09 and $1.12, reflecting a 7.9% to 10.9% increase [11] - Full-year revenue guidance is set between $4.081 billion and $4.091 billion, with non-GAAP EPS projected at $4.23 to $4.26 [11] Cash Flow and Share Repurchase - The company generated $343.2 million in operating cash flow and held $1.74 billion in cash and equivalents at the end of the quarter [10] - Hologic repurchased 0.7 million shares for $36 million during the quarter [10]

Financial Performance - Hologic reported quarterly earnings of $1.08 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, and showing a slight increase from $1.06 per share a year ago, resulting in an earnings surprise of +2.86% [1] - The company posted revenues of $1.02 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.68%, compared to revenues of $1.01 billion in the same quarter last year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.09 on revenues of $1.04 billion, while for the current fiscal year, the estimate is $4.19 on revenues of $4.08 billion [7] - The trend of estimate revisions for Hologic was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - Hologic operates within the Zacks Medical - Instruments industry, which is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for stock performance compared to higher-ranked industries [8] - The performance of Hologic's stock may be influenced by the overall outlook for the medical instruments industry, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5][8]

Financial Data and Key Metrics Changes - Total revenue for Q3 was $1,024 million, representing a slight growth of 0.4% year-over-year, exceeding guidance by approximately $14 million [8][17] - Non-GAAP earnings per share reached $1.08, a 1.9% increase compared to the previous year, and above the high end of guidance [8][32] - Non-GAAP operating margin was maintained just above 30%, reflecting effective expense control [8][32] Business Line Data and Key Metrics Changes - Diagnostics revenue was $448.9 million, growing 0.9% overall and 2.9% organically, excluding COVID-related sales [18] - Breast Health revenue was $365.2 million, declining 5.8% or 10.8% organically, but showed sequential growth compared to Q2 [26] - Surgical revenue increased by 6.3% to $178.4 million, with international growth leading at 24.8% [27] - Skeletal revenue grew significantly by 62.1% to $31.3 million, driven by resumed shipping of DEXA models [29] Market Data and Key Metrics Changes - The diagnostics business faced challenges due to geopolitical issues, particularly in China and funding cuts in Africa, impacting growth [18][20] - The Breast Health business is expected to rebound, with improved sales execution and new product launches anticipated to drive future growth [9][26] Company Strategy and Development Direction - The company aims for mid-single-digit organic revenue growth in the upcoming fiscal year, supported by a strengthened Breast Health business and ongoing product innovations [9][36] - Focus on enhancing the Breast Health portfolio through new product launches and improved sales strategies [10][12] - Continued investment in international markets is expected to contribute positively to overall growth [101] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to solid growth, citing progress in overcoming recent challenges [6][9] - The company anticipates a strong Q4, with expectations for revenue growth driven by improved sales execution and product offerings [36][38] - Management acknowledged headwinds from geopolitical factors affecting diagnostics but remains confident in the underlying growth drivers [18][20] Other Important Information - The company has made significant progress in mitigating tariff impacts, reducing expected tariff expenses to $10-12 million per quarter [30][31] - The discontinuation of the Fluoriscan product is expected to have a minimal impact on overall revenue [46][77] Q&A Session Summary Question: Outlook for fiscal 2026 and potential headwinds - Management expects mid-single-digit growth for fiscal 2026, with headwinds from the discontinuation of Fluoriscan and challenges in China and HIV funding impacting growth [46][47] Question: Capital allocation and M&A considerations - The company has focused on share buybacks and remains open to M&A opportunities but has no significant deals in the pipeline currently [51][110] Question: Visibility into Breast Health business for Q4 - Management is confident in the Breast Health business's recovery, supported by improved sales force execution and new product launches [60][62] Question: Impact of tariffs and mitigation strategies - The company has successfully mitigated about half of the anticipated tariff impacts through operational efficiencies [114][116] Question: Diagnostic growth expectations for fiscal 2026 - Diagnostics growth is expected to be in the mid-single-digit range, influenced by headwinds from China and HIV funding [122][124]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $1,024 million, representing a slight growth of 0.4% year-over-year, exceeding guidance by approximately $14 million [6][16] - Non-GAAP earnings per share reached $1.08, a 1.9% increase compared to the previous year, and slightly above the high end of guidance [6][31] - Non-GAAP operating margin was maintained just above 30%, reflecting effective expense control [6][31] Business Line Data and Key Metrics Changes - **Diagnostics**: Revenue was $448.9 million, growing 0.9% overall and 2.9% organically, excluding COVID-related sales [17] - **Breast Health**: Revenue declined 5.8% to $365.2 million, with a 10.8% organic decline when excluding Endomagnetics and SSI [24] - **Surgical**: Revenue increased 6.3% to $178.4 million, with international growth leading at 24.8% [25][26] - **Skeletal**: Revenue grew significantly by 62.1% to $31.3 million, driven by resumed shipping of DEXA models [28] Market Data and Key Metrics Changes - The diagnostics business faced challenges due to geopolitical issues, particularly in China and funding cuts in Africa, impacting growth [17][18] - The Breast Health business showed sequential improvement, indicating a potential rebound in Q4 [24] - International markets for surgical products showed strong adoption, particularly in regions with newly established reimbursement [26] Company Strategy and Development Direction - The company aims to return to mid-single-digit organic revenue growth in FY 2026, supported by a strengthening Breast Health business and improved commercial execution [7][36] - Focus on innovation in Breast Health, including the launch of new AI solutions and the integration of Endomagnetics into the product portfolio [11][13] - Continued emphasis on operational efficiency and mitigating tariff impacts through supply chain adjustments [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to solid growth, citing progress in overcoming recent challenges [5][7] - The company anticipates that headwinds from China and HIV funding will continue to affect growth in FY 2026 [46][88] - Confidence in the Breast Health business is growing, with expectations for improved performance in Q4 and beyond [60][61] Other Important Information - Non-GAAP gross margin for Q3 was 60.3%, reflecting an 80 basis point decline year-over-year due to product mix and strategic decisions [32] - The company expects to incur $10 to $12 million in tariffs per quarter moving forward, significantly lower than previous estimates [30][40] Q&A Session Summary Question: Outlook for fiscal 2026 and potential headwinds - Management expects mid-single-digit growth for FY 2026, with considerations for the discontinuation of FloraScan and ongoing challenges in China and HIV funding [46][47] Question: Capital allocation and M&A considerations - The company has focused on share buybacks and is not currently pursuing significant M&A opportunities [51] Question: Visibility into Breast Health business for Q4 - Management is confident in the sales force's performance and expects a return to growth in the Breast Health segment [58][60] Question: Impact of tariffs and mitigation strategies - The company has successfully mitigated about half of the anticipated tariff impacts through operational efficiencies [29][112] Question: Updates on molecular diagnostics and future growth - Management anticipates diagnostics growth to remain in the mid-single-digit range, with strong potential in molecular diagnostics [120][122]

Financial Performance - Q3'25 GAAP revenue reached $10238 million, a 12% increase compared to Q3'24 [67] - Q3'25 Non-GAAP revenue also reached $10238 million, with a 12% increase or 04% on a constant currency basis [68] - The company's full-year 2025 revenue guidance is between $4081 million and $4091 million, representing a 13% to 15% increase [71] - Non-GAAP diluted EPS for the full year 2025 is projected to be between $423 and $426, a 37% to 44% increase [71] Segment Performance - Diagnostics revenue in Q3'25 was $4489 million, a 09% increase [69] - Breast Health revenue in Q3'25 was $3652 million, a decrease of 58% [69] - GYN Surgical revenue in Q3'25 was $1784 million, a 63% increase [69] - Skeletal Health revenue in Q3'25 was $313 million, a substantial increase of 621% [69] Strategic Positioning - The company's net debt leverage ratio is 06x, with $19 billion in cash and investments as of Q3'25 [59] - The company has deployed over $57 billion since FY20, including $36 billion on share repurchases and $21 billion on M&A [60] - The company aims to continue double-digit non-GAAP EPS growth, driven by mid-single-digit revenue growth, modest operating margin expansion, regular acquisitions, and meaningful buybacks [57]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q3 FY2025 Performance Highlights](index=1&type=section&id=Q3%20FY2025%20Performance%20Highlights) Hologic achieved better-than-expected revenue and Non-GAAP EPS growth in Q3 FY2025, driven by a recovery in Breast Health and solid performance in other segments, with total revenue up 1.2% to $1,023.8 million and Non-GAAP diluted EPS up 1.9% to $1.08 | Metric | Amount/Percentage | Change (YoY) | | :------------------- | :---------------- | :----------- | | **Revenue** | $1,023.8 million USD | +1.2% (+0.4% constant currency) | | **GAAP Diluted EPS** | $0.86 | +4.9% | | **Non-GAAP Diluted EPS** | $1.08 | +1.9% | | **Operating Cash Flow** | $343.2 million USD | N/A | - Company revenue and Non-GAAP EPS both exceeded prior guidance ranges[1](index=1&type=chunk)[2](index=2&type=chunk) [Financial Guidance for Q4 and Full Fiscal Year 2025](index=3&type=section&id=Financial%20Guidance%20for%20Q4%20and%20Full%20Fiscal%20Year%202025) Hologic anticipates mid-single-digit organic constant currency revenue growth (excluding COVID-19 related revenue) and faster Non-GAAP EPS growth for Q4 FY2025, updating its full-year FY2025 revenue and Non-GAAP EPS guidance Q4 FY2025 Financial Guidance | Metric | Guidance Range (million USD) | Reported Growth (%) | Constant Currency Growth (%) | Organic Growth (%) | Organic (ex-COVID-19) Growth (%) | | :---------- | :--------------------------- | :------------------ | :----------------------- | :----------------- | :------------------------------- | | **Revenue** | $1,030 - $1,040 | 4.3% - 5.3% | 3.7% - 4.7% | 2.7% - 3.7% | 3.9% - 5.0% | | **GAAP EPS** | $0.90 - $0.93 | 18.4% - 22.4% | N/A | N/A | N/A | | **Non-GAAP EPS** | $1.09 - $1.12 | 7.9% - 10.9% | N/A | N/A | N/A | Full Fiscal Year 2025 Financial Guidance (Updated) | Metric | Current Guidance (million USD) | Previous Guidance (million USD) | Reported Growth (%) | Constant Currency Growth (%) | Organic Growth (%) | Organic (ex-COVID-19) Growth (%) | | :---------- | :----------------------------- | :------------------------------ | :------------------ | :----------------------- | :----------------- | :------------------------------- | | **Revenue** | $4,081 - $4,091 | $4,050 - $4,100 | 1.3% - 1.5% | 1.1% - 1.4% | (0.5%) - (0.2%) | 0.6% - 0.8% | | **GAAP EPS** | $2.56 - $2.59 | $2.47 - $2.57 | (22.9%) - (22.0%) | N/A | N/A | N/A | | **Non-GAAP EPS** | $4.23 - $4.26 | $4.15 - $4.25 | 3.7% - 4.4% | N/A | N/A | N/A | [Detailed Financial Results - Q3 FY2025](index=2&type=section&id=Detailed%20Financial%20Results%20-%20Q3%20FY2025) [Consolidated GAAP and Non-GAAP Financial Performance](index=2&type=section&id=Consolidated%20GAAP%20and%20Non-GAAP%20Financial%20Performance) Hologic's total revenue grew 1.2% in Q3 FY2025, with GAAP gross margin increasing by 90 basis points while Non-GAAP gross margin decreased by 80 basis points due to product mix and increased reserves, leading to a 4.9% rise in GAAP diluted EPS and a 1.9% rise in Non-GAAP diluted EPS Q3 FY2025 Consolidated Financial Data | Metric | Q3 FY2025 GAAP | Q3 FY2024 GAAP | GAAP Change | Q3 FY2025 Non-GAAP | Q3 FY2024 Non-GAAP | Non-GAAP Change | | :---------------- | :------------- | :------------- | :---------- | :----------------- | :----------------- | :-------------- | | **Revenue** | $1,023.8 million USD | $1,011.4 million USD | 1.2% | $1,023.8 million USD | $1,011.4 million USD | 1.2% | | **Gross Margin** | 56.3% | 55.4% | 90 bps | 60.3% | 61.1% | (80 bps) | | **Operating Expenses** | $322.0 million USD | $316.3 million USD | 1.8% | $309.6 million USD | $302.8 million USD | 2.2% | | **Operating Margin** | 24.9% | 24.1% | 80 bps | 30.1% | 31.2% | (110 bps) | | **Net Margin** | 19.0% | 19.2% | (20 bps) | 23.8% | 24.8% | (100 bps) | | **Diluted EPS** | $0.86 | $0.82 | 4.9% | $1.08 | $1.06 | 1.9% | - GAAP gross margin growth was primarily driven by lower impairment charges, while Non-GAAP gross margin decline was influenced by product mix and increased reserves[9](index=9&type=chunk) - Non-GAAP operating margin decreased mainly due to expected profit dilution from the Endomagnetics and Gynesonics acquisitions[9](index=9&type=chunk) [Revenue Performance by Segment](index=2&type=section&id=Revenue%20Performance%20by%20Segment) Hologic's Q3 FY2025 revenue performance varied across segments, with Diagnostics revenue growing due to molecular diagnostics sales, Breast Health declining from mammography capital equipment sales, GYN Surgical revenue increasing from acquisitions and international sales, and Skeletal Health achieving significant growth [Diagnostics Segment Revenue](index=2&type=section&id=Diagnostics%20Segment%20Revenue) Total Diagnostics revenue grew 1.8% (0.9% constant currency) to $448.9 million, primarily driven by increased molecular diagnostics sales, partially offset by lower COVID-19 test sales, with organic diagnostics sales (excluding COVID-19) growing 3.9% | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | Reported Change (%) | Constant Currency Change (%) | | :-------------------------- | :---------------------- | :---------------------- | :------------------ | :--------------------------- | | **Total Diagnostics Revenue** | $448.9 | $440.8 | 1.8% | 0.9% | | **Molecular Diagnostics Revenue** | $320.5 | $310.7 | 3.2% | 2.4% | | **Organic Molecular Diagnostics (ex-COVID-19)** | $289.0 | $272.7 | 6.0% | 5.2% | | **COVID-19 Related Revenue** | $31.5 | $38.0 | (17.1%) | (17.8%) | - Molecular Diagnostics revenue growth was primarily driven by BV CV/TV and Panther Fusion assay sales[2](index=2&type=chunk) [Breast Health Segment Revenue](index=2&type=section&id=Breast%20Health%20Segment%20Revenue) Total Breast Health revenue decreased (5.1%) or (5.8%) constant currency to $365.2 million, mainly due to lower mammography capital equipment sales, partially offset by growth from Endomagnetics revenue and service contract revenue, with organic Breast Health revenue declining (10.1%) | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | Reported Change (%) | Constant Currency Change (%) | | :-------------------------- | :---------------------- | :---------------------- | :------------------ | :--------------------------- | | **Total Breast Health Revenue** | $365.2 | $385.0 | (5.1%) | (5.8%) | | **Breast Imaging Revenue** | $264.7 | $309.2 | (14.4%) | (15.0%) | | **Interventional Breast Solutions Revenue** | $100.5 | $75.8 | 32.6% | 31.8% | | **Organic Breast Health Revenue** | $345.5 | $384.5 | (10.1%) | (10.8%) | - Interventional Breast Solutions revenue growth benefited from the Endomagnetics acquisition[2](index=2&type=chunk) [GYN Surgical Segment Revenue](index=2&type=section&id=GYN%20Surgical%20Segment%20Revenue) GYN Surgical revenue increased 7.1% (6.3% constant currency) to $178.4 million, primarily driven by the acquired Gynesonics business and strong international sales, with organic GYN Surgical revenue growing 2.0% | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | Reported Change (%) | Constant Currency Change (%) | | :---------------- | :---------------------- | :---------------------- | :------------------ | :--------------------------- | | **GYN Surgical Revenue** | $178.4 | $166.6 | 7.1% | 6.3% | | **Organic GYN Surgical Revenue** | $169.9 | $166.6 | 2.0% | 1.2% | [Skeletal Health Segment Revenue](index=2&type=section&id=Skeletal%20Health%20Segment%20Revenue) Skeletal Health revenue achieved significant growth, increasing 64.7% (62.1% constant currency) to $31.3 million, with strong performance in both the U.S. and international markets | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | Reported Change (%) | Constant Currency Change (%) | | :---------------- | :---------------------- | :---------------------- | :------------------ | :--------------------------- | | **Skeletal Health Revenue** | $31.3 | $19.0 | 64.7% | 62.1% | - U.S. market grew **42.0%**, and international markets grew **108.0%** (**100.2%** constant currency)[5](index=5&type=chunk) [Other Key Financial Metrics](index=3&type=section&id=Other%20Key%20Financial%20Metrics) Hologic maintained a strong cash position and low leverage ratio, repurchased shares, and refinanced debt during the third quarter, with adjusted EBITDA slightly increasing and adjusted ROIC slightly decreasing | Metric | Amount/Ratio | | :-------------------------- | :------------- | | **Cash and Cash Equivalents at Period End** | $1.74 billion USD | | **Adjusted Net Leverage Ratio** | 0.6x | | **Adjusted EBITDA (Q3 FY25)** | $340.9 million USD | - The company repurchased **0.7 million** shares for **$36 million** during the third quarter[9](index=9&type=chunk) - The company refinanced its term loan and revolving credit facility in July, with new facilities maturing in July 2030[2](index=2&type=chunk) - Adjusted Return on Invested Capital (ROIC) was **13.9%**, a decrease of **20 basis points** year-over-year[9](index=9&type=chunk)[34](index=34&type=chunk) Q3 FY2025 Revenue by Geographic Region | Region | Revenue Share | | :----------- | :------------ | | **United States** | 74.3% | | **Europe** | 14.5% | | **Asia Pacific** | 5.9% | | **Rest of World** | 5.3% | [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The Condensed Consolidated Statements of Income show total revenue of $1,023.8 million for Q3 FY2025, a slight increase from the prior year, with net income remaining relatively stable at $194.9 million and diluted EPS at $0.86 Condensed Consolidated Statements of Income (Excerpt) | Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | **Total Revenue** | $1,023.8 million USD | $1,011.4 million USD | $3,050.9 million USD | $3,042.3 million USD | | **Gross Profit** | $576.6 million USD | $560.3 million USD | $1,534.4 million USD | $1,670.1 million USD | | **Operating Income** | $254.6 million USD | $244.0 million USD | $477.4 million USD | $652.6 million USD | | **Net Income** | $194.9 million USD | $194.5 million USD | $378.5 million USD | $610.9 million USD | | **Diluted Earnings Per Share** | $0.86 | $0.82 | $1.66 | $2.57 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, Hologic's total assets were $8,806.1 million, a decrease from September 28, 2024, with cash and cash equivalents decreasing while net property, plant, and equipment and other assets increased, and total liabilities and stockholders' equity also decreased accordingly Condensed Consolidated Balance Sheets (Excerpt) | Metric | As of June 28, 2025 (million USD) | As of September 28, 2024 (million USD) | | :-------------------------------- | :------------------------------- | :------------------------------- | | **Total Assets** | $8,806.1 | $9,156.0 | | **Cash and Cash Equivalents** | $1,735.2 | $2,160.2 | | **Total Current Assets** | $3,421.4 | $3,823.3 | | **Goodwill and Intangible Assets** | $4,286.1 | $4,287.7 | | **Total Current Liabilities** | $962.5 | $1,037.2 | | **Long-Term Debt (less current portion)** | $2,509.0 | $2,497.1 | | **Total Stockholders' Equity** | $4,842.5 | $5,130.0 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 28, 2025, net cash provided by operating activities was $702.0 million, a decrease from the prior year, with net cash used in investing activities of $350.6 million primarily for business acquisitions, and net cash used in financing activities of $778.8 million mainly for common stock repurchases Condensed Consolidated Statements of Cash Flows (Excerpt) | Metric | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | | **Net Cash Provided by Operating Activities** | $702.0 million USD | $918.2 million USD | | **Net Cash Used in Investing Activities** | $(350.6) million USD | $(185.3) million USD | | **Net Cash Used in Financing Activities** | $(778.8) million USD | $(1,051.8) million USD | | **Net Decrease in Cash and Cash Equivalents** | $(425.0) million USD | $(316.6) million USD | | **Cash and Cash Equivalents at Period End** | $1,735.2 million USD | $2,439.1 million USD | - Net business acquisitions (net of cash acquired) amounted to **$321.5 million** for the first nine months of FY2025[25](index=25&type=chunk) - Expenditures for common stock repurchases totaled **$752.9 million** for the first nine months of FY2025[25](index=25&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Hologic utilizes various Non-GAAP financial measures, including constant currency revenue, organic revenue, Non-GAAP gross margin, operating margin, net income, EPS, adjusted EBITDA, adjusted net leverage ratio, and adjusted ROIC, to supplement GAAP information, aid management decision-making, and help investors understand core business performance by excluding specific cash and non-cash items such as amortization, impairment, restructuring, and acquisition-related expenses - Non-GAAP measures supplement GAAP financial information and may differ from similar measures used by other companies[11](index=11&type=chunk) - These metrics are used by management for financial and operational decision-making, including evaluating historical performance, comparing with competitors, and determining management incentive compensation[12](index=12&type=chunk) - Non-GAAP adjustments include amortization of intangible assets, goodwill and intangible asset impairment, contingent consideration adjustments, restructuring charges, acquisition-related expenses, loss on debt extinguishment, unrealized gains and losses on forward foreign exchange contracts, and other one-time or non-recurring items[10](index=10&type=chunk) [Reconciliation of GAAP Revenue to Organic Revenue](index=10&type=section&id=Reconciliation%20of%20GAAP%20Revenue%20to%20Organic%20Revenue) This reconciliation details the process of adjusting GAAP revenue to organic revenue and organic revenue excluding COVID-19, showing Q3 FY2025 organic revenue of $988.6 million and organic revenue excluding COVID-19 of $957.1 million, reflecting the exclusion of divested businesses (Blood Screening, SSI) and acquired businesses (Endomagnetics, Gynesonics) as well as COVID-19 related sales Q3 FY2025 Revenue Reconciliation | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | | :-------------------------- | :---------------------- | :---------------------- | | **Consolidated GAAP Revenue** | $1,023.8 | $1,011.4 | | Less: Blood Screening Revenue | $(7.0) | $(7.9) | | Less: SSI Revenue | $(0.1) | $(0.5) | | Less: Endomagnetics Revenue | $(19.6) | — | | Less: Gynesonics Revenue | $(8.5) | — | | **Organic Revenue** | $988.6 | $1,003.0 | | Less: COVID-19 Test Kits | $(6.5) | $(13.3) | | Less: COVID-19 Related Revenue | $(25.0) | $(24.7) | | **Organic Revenue (ex-COVID-19)** | $957.1 | $965.0 | - Organic revenue excludes divested Blood Screening and SSI ultrasound imaging businesses, and acquired Endomagnetics and Gynesonics businesses (for the first year post-acquisition)[4](index=4&type=chunk)[10](index=10&type=chunk) [Reconciliation of GAAP to Non-GAAP Profitability Metrics](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Profitability%20Metrics) This section provides detailed reconciliations from GAAP to Non-GAAP gross profit, operating expenses, operating income, income before taxes, net income, and their respective margins, with key adjustments including amortization of acquired intangible assets, impairment charges, and restructuring costs Q3 FY2025 Gross Profit Reconciliation | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | | :-------------------------- | :---------------------- | :---------------------- | | **GAAP Gross Profit** | $576.6 | $560.3 | | Adjustments (Amortization, Impairment, etc.) | $41.1 | $57.7 | | **Non-GAAP Gross Profit** | $617.7 | $618.0 | | **GAAP Gross Margin** | 56.3% | 55.4% | | **Non-GAAP Gross Margin** | 60.3% | 61.1% | Q3 FY2025 Operating Expenses Reconciliation | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | | :-------------------------- | :---------------------- | :---------------------- | | **GAAP Operating Expenses** | $322.0 | $316.3 | | Adjustments (Amortization, Restructuring, etc.) | $(12.4) | $(13.5) | | **Non-GAAP Operating Expenses** | $309.6 | $302.8 | Q3 FY2025 Net Income and EPS Reconciliation | Metric | Q3 FY2025 (million USD) | Q3 FY2024 (million USD) | | :-------------------------- | :---------------------- | :---------------------- | | **GAAP Net Income** | $194.9 | $194.5 | | Total Adjustments | $49.2 | $56.2 | | **Non-GAAP Net Income** | $244.1 | $250.7 | | **GAAP Diluted EPS** | $0.86 | $0.82 | | **Non-GAAP Diluted EPS** | $1.08 | $1.06 | [Reconciliation of GAAP to Non-GAAP EPS Guidance](index=14&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20EPS%20Guidance) This section provides reconciliations of GAAP to Non-GAAP EPS guidance for Q4 and the full fiscal year 2025, with key adjustments including amortization of acquired intangible assets, intangible asset impairment, acquisition-related costs, restructuring, integration, and other expenses, along with their tax impacts Q4 FY2025 EPS Guidance Reconciliation | Metric | Low | High | | :-------------------------- | :--- | :--- | | **GAAP Net Earnings Per Share** | $0.90 | $0.93 | | Amortization of Acquired Intangible Assets | $0.21 | $0.21 | | Restructuring, Integration, and Other Costs | $0.02 | $0.02 | | Tax Impact of Exclusions | $(0.04) | $(0.04) | | **Non-GAAP Net Earnings Per Share** | $1.09 | $1.12 | Full FY2025 EPS Guidance Reconciliation | Metric | Low | High | | :-------------------------- | :--- | :--- | | **GAAP Net Earnings Per Share** | $2.56 | $2.59 | | Amortization of Acquired Intangible Assets | $0.85 | $0.85 | | Intangible Asset Impairment | $0.97 | $0.97 | | Acquisition Related | $0.20 | $0.20 | | Restructuring, Integration, and Other Costs | $0.10 | $0.10 | | Income Tax Related Items | $0.03 | $0.03 | | Tax Impact of Exclusions | $(0.48) | $(0.48) | | **Non-GAAP Net Earnings Per Share** | $4.23 | $4.26 | [Adjusted Return on Invested Capital (ROIC) Reconciliation](index=14&type=section&id=Adjusted%20Return%20on%20Invested%20Capital%20(ROIC)%20Reconciliation) For the trailing twelve months ended June 28, 2025, the adjusted ROIC was 13.9%, calculated by adjusting GAAP net income to Non-GAAP net operating profit after tax and dividing by average net debt plus average stockholders' equity, with adjustments for impairment charges - Adjusted Return on Invested Capital (ROIC) was **13.9%** for the trailing twelve months ended June 28, 2025[33](index=33&type=chunk)[34](index=34&type=chunk) Adjusted Return on Invested Capital Calculation (Excerpt) | Metric | Amount (million USD) | | :-------------------------- | :------------------- | | **Adjusted Net Operating Profit After Tax** | $973.2 | | **Average Net Debt Plus Average Stockholders' Equity** | $7,014.2 | - Stockholders' equity has been adjusted to remove the after-tax impact of goodwill and intangible asset impairment charges[35](index=35&type=chunk) [Net Leverage Ratio Reconciliation](index=15&type=section&id=Net%20Leverage%20Ratio%20Reconciliation) As of June 28, 2025, Hologic's net leverage ratio was 0.6x, calculated by dividing net principal debt ($784.2 million) by EBITDA for the trailing four quarters ($1,316.3 million) Net Leverage Ratio Calculation | Metric | Amount (million USD) | | :-------------------------- | :------------------- | | **Total Principal Debt** | $2,519.4 | | **Total Cash and Cash Equivalents** | $(1,735.2) | | **Net Principal Debt** | $784.2 | | **EBITDA for Trailing Four Quarters** | $1,316.3 | | **Net Leverage Ratio** | 0.6 | [Explanatory Notes to Reconciliations](index=13&type=section&id=Explanatory%20Notes%20to%20Reconciliations) This section provides detailed explanations for each adjustment in the Non-GAAP reconciliations, including amortization of acquired intangible assets, fair value remeasurement of inventory, restructuring and integration costs, acquisition-related expenses, loss on debt extinguishment, and impairment charges - Amortization of intangible assets: Reflects non-cash expenses for acquired intangible assets[31](index=31&type=chunk) - Intangible asset impairment: Includes impairment charges related to Acessa, Bolder, Mobidiag, Diagenode acquisitions, and BioZorb[31](index=31&type=chunk) - Restructuring and integration/consolidation costs: Include severance, retention, relocation costs, and legal, tax, and professional consulting services related to acquisitions and facility consolidations[31](index=31&type=chunk) - Acquisition-related expenses: Include legal, consulting, and due diligence fees incurred prior to transaction close, and accelerated vesting of unvested stock options related to the Gynesonics acquisition[31](index=31&type=chunk) [Additional Company Information](index=5&type=section&id=Additional%20Company%20Information) [About Hologic, Inc.](index=5&type=section&id=About%20Hologic%2C%20Inc.) Hologic, Inc. is an innovative medical technology company primarily dedicated to improving women's health and well-being through early detection and treatment - The company focuses on improving women's health and well-being through early detection and treatment[15](index=15&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking information involving known and unknown risks and uncertainties, with statements based on current assumptions, and actual results may differ materially due to factors such as competition, market demand, regulatory approvals, economic conditions, and supply chain issues - Forward-looking statements involve company plans, objectives, expectations, and intentions, and are subject to known and unknown risks and uncertainties[16](index=16&type=chunk) - Risks that could cause actual results to differ include competition, market developments, product demand forecasts, healthcare industry consolidation, acquisition impacts, third-party payor decisions, regulatory approvals, product defects, legal proceedings, climate change, tax legislation, global challenges (macroeconomic uncertainty, war), supply chain constraints, and cybersecurity threats[17](index=17&type=chunk) - The company expressly disclaims any obligation to publicly update or revise any such statements[18](index=18&type=chunk) [Contacts](index=6&type=section&id=Contacts) Provides contact information for Hologic's investor relations team - Investor Relations contacts: Michael Watts (Corporate Vice President) and Peter Sattler (Senior Manager)[19](index=19&type=chunk)