Varex Imaging Corp Q3 2025 Earnings Call Highlights: Revenue Beats Guidance Amid Mixed Segment Performance

Varex Imaging Corp reported Q3 2025 revenue of $203mln, exceeding guidance. The industrial segment showed strength, with a 1% YoY increase in revenue. Non-GAAP gross margin was 34%, surpassing expectations. However, total revenue was down 3% YoY, with the medical segment declining by 4%. Operating expenses were unusually high, resulting in an operating loss of $81mln and a net loss of $89mln on a GAAP basis.

Varex Imaging Corp (Nasdaq: VREX) reported its unaudited financial results for the third quarter of fiscal year 2025, revealing a mixed performance. The company reported revenue of $203 million, exceeding the high end of its guidance. The industrial segment showed strength, with a 1% year-over-year (YoY) increase in revenue. However, the company's non-GAAP gross margin was 34%, surpassing expectations due to higher volume and favorable product sales mix [1].

Despite the positive signs, total revenue was down 3% YoY, with the medical segment declining by 4%. Operating expenses were unusually high at $148 million, primarily due to a non-cash goodwill impairment charge of $94 million. This resulted in an operating loss of $81 million and a net loss of $89 million on a GAAP basis [1].

The company successfully paid off $200 million in convertible notes, reducing overall debt and simplifying the capital structure. Sales in China were better than forecasted, with a 4% YoY increase, contributing 15% of total revenues [2].

Varex Imaging Corp's Chief Executive Officer, Sunny Sanyal, expressed optimism about the continued adoption of its systems in cargo inspection applications and a healthy demand environment for both Medical and Industrial segments to drive sales growth of approximately 3% for fiscal year 2025 [1].

References:
[1] https://www.vareximaging.com/news/varex-announces-financial-results-for-third-quarter-fiscal-year-2025/
[2] https://ca.finance.yahoo.com/news/varex-imaging-corp-vrex-q3-074119601.html