QuidelOrtho 2025 Q2 Earnings Widens Losses Amid Revenue Decline

QuidelOrtho reported Q2 2025 earnings that missed expectations with widened losses despite cost savings initiatives. The company’s adjusted EPS of $0.12 beat estimates but was overshadowed by a 72.9% increase in net loss. It reiterated full-year guidance in line with expectations.

Revenue
QuidelOrtho’s total revenue for Q2 2025 declined by 3.6% year-over-year to $613.90 million, with a notable drag from respiratory and donor screening segments. Labs revenue grew 4% to $369.70 million, and Immunohematology increased by 4% to $132.30 million. However, Donor Screening revenue plummeted by 61.2% to $13.30 million, and Point of Care revenue fell 20.6% to $93 million. Molecular Diagnostics showed resilience, growing 27.3% to $5.60 million. Geographically, North America’s revenue dropped 11.3% to $310.70 million, while EMEA and China posted marginal gains.

Earnings/Net Income
QuidelOrtho’s net loss widened significantly to $255.40 million in Q2 2025, representing a 72.9% increase from $147.70 million in the prior year period. Per-share loss expanded to $3.77, a 71.4% deterioration from $2.20 in Q2 2024. Despite these losses, the company’s adjusted EBITDA margin improved by 330 basis points to 17%, and adjusted gross profit margin reached 45.7%.

Price Action
The stock price of QuidelOrtho plummeted 19.78% month-to-date and 14.01% in the latest trading day, reflecting investor caution amid the earnings report and broader market conditions.

Post Earnings Price Action Review
QuidelOrtho’s adjusted EPS outperformed expectations, reporting $0.12 compared to analyst estimates of $0.01, signaling strong operational efficiency. While total revenue declined by 3.6% year-on-year to $613.9 million, the company’s full-year revenue guidance of $2.71 billion aligns with expectations. Despite the revenue drop, the market reacted positively to the earnings, showing confidence in the company’s strategic direction and cost management initiatives. The adjusted EBITDA margin improved by 330 basis points to 17%, and adjusted gross profit margin increased to 45.7%. However, significant insider selling over the past year, totaling $310.5 million, may indicate caution, though recent performance could attract renewed interest. Citi maintained a Buy rating but reduced its price target to $40. The company’s pivot toward molecular testing and cost-saving initiatives is a positive long-term signal, but its Altman Z-Score of 0.69 raises concerns about potential insolvency. Investors should monitor operational challenges and strategic developments.

CEO Commentary
Brian J. Blaser, CEO of QuidelOrtho, noted that the second quarter results reflected the company’s commitment to commercial and operational execution, with strong top and bottom-line performance despite a challenging global environment. The CEO highlighted achieving $100 million in annualized cost savings, announcing the acquisition of LEX Diagnostics, and initiating a major manufacturing site consolidation as key priorities. He expressed optimism, stating the company is well positioned to deliver sustainable value for shareholders, customers, and employees.

Guidance
QuidelOrtho reiterated its full-year 2025 financial guidance, including total revenue of $2.60–$2.81 billion, adjusted EBITDA of $575–$615 million (22% margin), and adjusted diluted EPS of $2.07–$2.57. Foreign currency exchange is expected to be neutral for the full year. The guidance excludes GAAP adjustments such as impairment charges and employee compensation costs, which are not reliably forecastable.

Additional News
QuidelOrtho announced its intention to acquire LEX Diagnostics to enhance growth potential in molecular testing. The company also initiated a major manufacturing site consolidation and achieved $100 million in annualized cost savings from 2024 initiatives. These moves signal a strategic pivot toward efficiency and long-term value creation.