Varex Imaging 2025 Q3 Earnings Beats Expectations, But Posts Sharp Net Loss

Varex Imaging (VREX) released its fiscal 2025 Q3 earnings on August 7, 2025. The company exceeded revenue expectations, posting $203 million against a consensus of $190.2 million. However, it swung to a net loss amid significant operating challenges. The company’s guidance for the upcoming quarter reflects optimism in both the Medical and Industrial segments.

Varex Imaging reported total revenue of $203 million in fiscal 2025 Q3, slightly below the $209.10 million recorded in the same period a year ago, representing a 2.9% decline. The Medical segment remained the company’s largest revenue driver, contributing $142.10 million, while the Industrial segment generated $60.90 million. Collectively, the two segments accounted for all of Varex’s net revenue, underscoring the company’s continued focus on its core markets.

Varex Imaging swung to a loss of $2.15 per share in the third quarter of 2025, a dramatic shift from the $0.03 per share profit reported in the same period in 2024, reflecting a 7,266.7% negative change. On a net income basis, the company reported a loss of $89.10 million in the third quarter, a 6,040.0% deterioration from the $1.50 million profit achieved in the same period in 2024. The steep loss underscores the company's ongoing operational challenges despite the revenue outperforming expectations.

The stock price of Varex Imaging has shown mixed short-term performance, rising 8.47% during the latest trading day and gaining 7.28% over the most recent full trading week. However, it has declined 7.35% month-to-date, reflecting investor uncertainty in the face of the earnings report.

Following the earnings release, investors who purchased VREX shares on August 7 saw a positive return over the next 30 days. The stock closed at $7.81 on the day of the earnings report and rose to $7.04 within the following month, representing a 13.52% increase. This result highlights the potential benefit of capitalizing on positive revenue surprises, as the beat likely boosted investor confidence and demand for the stock. While this return may vary depending on purchase price, it demonstrates that a revenue-driven strategy can yield tangible gains in the short term.

Sunny Sanyal, Chief Executive Officer, noted that the company's Q3 revenue of $203 million exceeded expectations, driven by strong performance in the Industrial segment and better-than-anticipated Medical revenue in China. He expressed optimism about continued adoption of systems in cargo inspection applications and expects a robust demand environment for both the Medical and Industrial segments. Sanyal projected approximately 3% sales growth for fiscal year 2025, signaling confidence in future performance despite the recent loss.

For the fourth quarter of fiscal 2025, Varex Imaging expects revenue to range between $210 million and $230 million, with non-GAAP net earnings per diluted share projected between $0.10 and $0.30. Guidance is provided on a non-GAAP basis only, as the company is unable to reconcile to GAAP due to the unpredictability of certain adjustments. Despite this, the company remains positive about its growth trajectory, anticipating continued demand in both core segments.

Additional News
The Punch newspaper on August 7, 2025, reported several key developments in Nigeria. Notably, the immediate past Deputy Governor of Abia State, Chief Ude Oko-Chukwu, resigned from the Peoples Democratic Party (PDP), marking a significant shift in political alliances. Additionally, the National Correctional Service Corps (NCSC) carried out a major sweep, sacking 15 officers and demoting 59 others in a move to improve internal discipline. In the business sector, Stanbic IBTC announced a savings promotion that awarded 148 customers a total of N23 million, highlighting the bank's efforts to engage its clients through incentives. Meanwhile, in Lagos, a tragic incident left five people injured when a fuel tanker collided with a commercial bus at the Toyota Bus Stop. These developments reflect the dynamic political, business, and social environment in Nigeria during the period.