Financial Data and Key Metrics Changes - Fourth quarter revenue was $724 million, representing a 2% year-over-year increase from $708 million, with a 7% growth in non-respiratory revenue excluding donor screening [7][18] - Full year revenue reached $2.73 billion, achieving the 2025 financial guidance, with non-respiratory revenue growing 5% [7][18] - Adjusted EBITDA margin was 22%, a 240 basis point improvement over the prior year [8][22] - Adjusted diluted EPS was $0.46 for Q4 and $2.12 for the full year, reflecting a 15% year-over-year growth [22] Business Line Data and Key Metrics Changes - Labs business reported a 7% growth in Q4 and 6% for the full year, representing 55% of total company revenue [7][18] - Immunohematology grew 3% for the full year, maintaining its leading global market position [18] - Triage business revenue increased by 16% in Q4 and 7% for the full year [18] - Respiratory revenue declined by 14% in Q4 and 20% for the full year due to lower COVID testing [18] Market Data and Key Metrics Changes - North America region revenue was up 4% in Q4 but down 2% for the year, excluding donor screening [20] - Europe, Middle East, and Africa (EMEA) growth was flat in Q4 and up 4% for the year, with adjusted EBITDA margins increasing by over 900 basis points [20] - Latin America saw a 17% increase in Q4 and 18% for the year, while Japan and Asia-Pacific grew 4% in Q4 and 6% for the year [20] - China grew 5% in Q4 and 3% for the full year [21] Company Strategy and Development Direction - The company established three priorities: customer-centric operations, strengthening operational and financial performance, and accelerating product development for long-term growth [6][9] - The focus is on optimizing the customer experience and driving effective execution across all business dimensions [9] - The company aims to maximize value by delivering superior outcomes for customers and converting that value into attractive returns for shareholders [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth, citing strong market positions and high renewal rates [35] - The company anticipates continued growth in the Labs business and is optimistic about new product launches in 2026 [14][25] - Management acknowledged challenges in cash flow conversion but emphasized ongoing efforts to improve cash flow metrics [31][89] Other Important Information - A significant non-cash goodwill impairment charge of $701 million was recorded in Q3, which does not impact cash or operations [22] - The CFO announced plans to retire in June, with a search for a successor already initiated [9][10] Q&A Session Summary Question: Free cash flow guidance and timing issues - The CFO explained that Q4 cash flow was lower than expected due to timing issues with accounts receivable and late revenue collection [30][31] Question: Sustainability of Labs business growth - Management highlighted strong underlying growth rates and opportunities in immunoassay and underpenetrated markets as key factors for sustaining growth [35] Question: Updates on China market and VBP program - Management stated that there are no new updates on the nationalized VBP program for dry chemistry test strips, with potential impacts estimated at 0.5% to 1% of total revenue [40][41] Question: Gross margin outlook - The CFO discussed factors affecting gross margins, including tariffs and product mix, and projected flat gross margins for 2026 with potential improvements in the following years [68][70] Question: LEX Diagnostics platform timeline - Management indicated that the FDA review process for the LEX platform is progressing as planned, with no current issues [73] Question: R&D pipeline and U.S. market focus - Management confirmed that while OUS markets are a priority, there are plans to enhance the U.S. product offerings through new menu additions [77][79]