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- **Revenue Beat & Margin Resilience**: Q3 EPS $1.08 vs. $1.07, with 30.1% operating margin despite $1.4M tariffs.
- **Breast Health Turnaround**: Sequential gantry growth, interventional +6%, Endomag +100% to $20M/Q3.
- **FY26 Outlook**: Mid-single-digit growth, $10M/Q tariff, $6M FX tailwind, $18M Fluoroscan exit.

**【CEO Opening Remarks】**
- Hologic reported Q3 revenue of $1.024 billion, exceeding guidance by $14 million, with EPS of $1.08, $0.01 above expectations.
- CEO Steve MacMillan highlights progress in Breast Health, citing sequential improvement in gantry shipments and interventional sales growth.

**【CFO Financial Review】**
- CFO Karleen Oberton notes Q3 gross margin at 60.3%, down 80bps YoY due to product mix and $1.4M tariffs.
- Operating expenses decline 4.3% ex-acquisitions, with $343M operating cash flow and $1.88B cash on hand.

**【Q&A Highlights】**
- CEO MacMillan: Breast Health to return to growth in Q4, driven by Endomag ($20M/Q3) and refocused sales force.
- CFO Oberton: FY26 tariff mitigation to $10-12M/Q, with $6M FX tailwind in Q4.
- Management reaffirms mid-single-digit FY26 growth, excluding $18M Fluoroscan exit.

Hologic, Inc. (HOLX) Q3 2025 Earnings Call Transcript

- **Q2 Revenue Resilience**: $1.005B total, flat YoY, with Diagnostics (+1.5%) and Surgical (+5.1%) offsetting Breast Health decline.
- **Profitability Strength**: Non-GAAP EPS $1.03 (high end of guidance), 61.1% gross margin (+40bps YoY).
- **Tariff Headwinds**: $20-25M/Q impact starting Q3, partially offsetting $20M China revenue cut.
- **Growth Catalysts**: Q4+ acceleration from breast health execution, Endomagnetics/Gynesonics integration, and new product pipeline.
- **Service Growth**: 12% service revenue expansion (21% of total), driven by breast health and diagnostics.


**【CEO Summary Section】**
- Total Q2 revenue: $1.005 billion (flat YoY in constant currency, high end of guidance). Diagnostics grew despite Africa funding cuts; skeletal business rebounded from supply constraints.
- Non-GAAP EPS: $1.03 (flat YoY, high end of guidance). Gross margin expansion and share buybacks drove profitability.
- Key strengths: Reliability of business model, customer relationships (21% of revenue from recurring services), and fortress balance sheet ($1.6B cash).
- Risks: China market challenges (lowered FY25 China revenue to $50M), Africa HIV testing decline.
- Outlook: Q4+ growth from breast health execution, easier comps, and new product launches (e.g., Endomagnetics, Gynesonics).

**【COO Business Update】**
- **Diagnostics**: $453.6M (+1.5% YoY, +7.8% ex-COVID). BV/CV/TV assay growth, respiratory tests benefited from flu season. Africa HIV testing down due to USAID cuts.
- **Breast Health**: $356.2M (-6.9% YoY). Service revenue up 12% to $212.6M (45% of segment). Reorg to separate capital/disposable sales teams; Endomagnetics direct sales in NA.
- **Surgical**: $162.5M (+5.1% YoY). Fluent Pro adoption strong; Gynesonics integration on track.
- **Skeletal**: $33M (+22.9% YoY). DEXA production ramp exceeded expectations.
- **Tariffs Impact**: $20-25M/Q impact from Costa Rica (67%) and China (15%). Mitigation efforts underway, but limited pricing flexibility.

**【CFO Financial Commentary】**
- Non-GAAP gross margin: 61.1% (+40bps YoY). Accretive margins from Endomagnetics and Gynesonics.
- Operating expenses: $312.9M (+1.7% YoY). Ex-acquisitions, down 4.6% due to cost control.
- Q2 cash flow: $169.5M. FY25 ending cash: $1.6B+.
- **Guidance Update**: FY25 non-GAAP EPS: $4.10-4.20 (down $0.10). FY25 revenue: $4.05-4.10B (unchanged). Q3 EPS: $1.04-1.07.
- Tariffs impact: $5M/Q3, $20M/Q4 in COGS. China revenue reduction: $20M FY25.

**【Q&A Key Themes】**
- **Tariffs Mitigation**: No major supplier price hikes yet. Focus on inventory management and production shifts (USMCA exemptions for Mexico).
- **Breast Health Recovery**: Service attach rates improving; Q4 gantry upgrades expected to accelerate.
- **China Risk**: Derisked FY25 forecast; $50M China revenue target reflects geopolitical uncertainty.
- **New Product Launches**: Envision gantry (Q4 FY26) expected to drive long-term growth; Endomagnetics wireless biopsy adoption ramping.
- **Utilization Trends**: Elective procedures stable; breast health service demand resilient.


Hologic (HOLX)-1 May 25-2025 Q2 Earnings call transcript

- **Q1 Performance**: Revenue $1.022B (+1% const. curr.), non-GAAP EPS $1.03 (5% growth), meeting high-end guidance.
- **Growth Drivers**: Diagnostics (+5.2%), Surgical (+2.5%), Gynesonics ($28M annual sales).
- **Breast Health Challenges**: Capital sales down 2.1%, 2025 expected softness due to 3D replacement cycles.
- **Financial Strength**: Gross margin 61.6% (+80bps), operating margin 29.4% (+90bps), $2B cash for M&A and buybacks.
- **Long-Term Outlook**: Double-digit EPS growth target, 2026 gantry launch, and expanding Panther Fusion menu.
- **Risks**: FX headwind ($30M), U.S. policy disruptions ($30M HIV testing), delayed dexa shipments.


**【CEO Summary Section】**
- Total revenue for Q1 FY2025 was $1.022 billion, up 1% on a constant currency basis, with non-GAAP EPS of $1.03, at the high end of guidance.
- Emphasized long-term goal of double-digit EPS growth, driven by mid-single-digit revenue growth, margin expansion, and strategic acquisitions.
- Highlighted historical performance: 4.8% CAGR in revenue (2014-2024) and 10.8% CAGR in non-GAAP EPS.
- Key growth drivers include Diagnostics molecular assays (e.g., BV/CV/TV), Surgical international expansion, and new acquisitions like Gynesonics.

**【COO Business Review】**
- **Diagnostics**: $470.6M revenue (+5.2% YoY), led by molecular diagnostics (+11% ex-COVID). Panther Fusion adoption at 40% of U.S. customers, with strong performance of Biotheranostics and vaginitis testing.
- **Breast Health**: $369.1M (-2.1% YoY), impacted by lower capital equipment sales. Service revenue (+>40% of total) offset hardware decline. 2025 expected to be softer due to 3D-to-3D replacement cycles and delayed M.gen launch.
- **Surgical**: $166.3M (+2.5% YoY), driven by international growth (+20%). U.S. recovery from IV fluid shortage; Gynesonics acquisition expected to add $28M in annual sales.
- **Skeletal**: $15.8M (-37.4% YoY) due to delayed Horizon dexa shipments, expected to normalize by Q3.

**【CFO Financial Commentary】**
- Non-GAAP gross margin 61.6% (+80bps YoY), driven by product mix and efficiencies.
- Operating expenses $329M (+0.5% YoY), stable ex-Endomagnetics. Operating margin 29.4% (+90bps YoY).
- Full-year guidance: Revenue $4.05-4.10B (down $100M from prior), non-GAAP EPS $4.25-4.35. FX headwind $30M, offset by Diagnostics and Surgical growth.
- Risks include U.S. policy disruptions ($30M HIV testing impact) and potential tariffs on Mexico manufacturing.

**【Q&A Highlights】**
- **Breast Health Capital Sales**: 2025 expected to be down low single digits, with Q4 recovery. New M.gen gantry launch in 2026 may drive 2026 growth.
- **M&A Strategy**: Focus on $20-50M tuck-in acquisitions with >10% ROIC, e.g., Endomagnetics and Gynesonics.
- **Panther Fusion Adoption**: 40% U.S. customers, potential to reach 100% as menu expands (e.g., H5N1 assay development).
- **Policy Risks**: Tariffs on Mexico manufacturing ($10M-$15M annual impact), delayed F/D funding for HIV testing.
- **Margins**: Q1 operating margin 29.4%, expected to improve sequentially with lower Q2 expenses and higher Q4 revenue.


Hologic (HOLX)-5 Feb 25-2025 Q1 Earnings call transcript

Hologic (HOLX)-4 Nov 24-2024 Q4 Earnings call transcript

Hologic (HOLX)-29 Jul 24-2024 Q3 Earnings call transcript

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Hologic (HOLX)-9 Nov 23-2023 Q4 Earnings call transcript

Hologic (HOLX)-31 Jul 23-2023 Q3 Earnings call transcript

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Hologic (HOLX)-31 Jul 18-2018 Q3 Earnings call transcript

Hologic (HOLX)-2 May 18-2018 Q2 Earnings call transcript

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