Masimo Reports Q2 Revenue of $370.9M, Beats Expectations Despite Cybersecurity Incident

Masimo has appointed several senior executives, including a chief commercial officer, and resolved a cybersecurity incident that occurred in the spring. Q2 revenue was $370.9 million, a 7.9% increase YoY, while net income from continuing operations was $44.9 million, an 81% increase YoY. The company has also reduced its tariff burden by more than half and boosted its full-year earnings forecast.

Masimo Corporation (NASDAQ: MASI) reported strong second-quarter (Q2) financial results, with revenue reaching $370.9 million, a 7.9% year-over-year (YoY) increase [1]. Net income from continuing operations stood at $44.9 million, marking an 81% YoY increase. The company also reduced its tariff burden by more than half and resolved a cybersecurity incident that occurred in the spring.

The appointment of several senior executives, including Greg Meehan as chief commercial officer, Huimin Wang as president of Japan and Asia Pacific, Tim Benner as chief marketing and strategy officer, Linnette Torres as executive vice president of quality and regulatory, and Giri Chodavarapu as chief information officer, underscores Masimo's commitment to strategic growth and operational excellence [1].

Masimo's Q2 earnings per share (EPS) of $1.33 beat analyst expectations by $0.11, while revenue of $370.3 million exceeded estimates by $1.65 million [2]. The company has also reaffirmed its 2025 outlook, projecting non-GAAP revenue of $1,505 to $1,535 million, an 8% to 11% increase on a constant currency basis [2].

However, concerns persist regarding Masimo's relationship with Philips, a key customer. The company has assured that the agreement with Philips is still in place and that talks are ongoing to extend the partnership "well into the future" [1].

The cybersecurity incident, which occurred in the spring, led to net expenses of about $4.5 million to recover and fortify its systems [1]. Additionally, the divestiture of Sound United, Masimo's consumer audio business, is on track to close by the end of the year, with Samsung Electronics' Harman International unit acquiring the business for $350 million [1].

Masimo has boosted its full-year earnings forecast, with adjusted earnings now projected in a range of $5.20 to $5.45 per share, up from the previous $4.80 to $5.15 range [1].

References:
[1] https://www.medtechdive.com/news/Masimo-Q2-cybersecurity-tariffs-executives-Sound-United/757122/
[2] https://seekingalpha.com/news/4479105-masimo-and-nbsp-non-gaap-eps-of-1_33-beats-by-0_11-revenue-of-370_3m-beats-by-1_65m