QuidelOrtho’s second quarter was shaped by continued declines in COVID-19 testing, tempered by solid performance in its core laboratory and immunohematology businesses. Management attributed the year-on-year revenue decline mainly to lower COVID testing and the wind-down of donor screening, while highlighting that non-respiratory revenues, including labs and immunohematology, posted modest organic growth. CEO Brian Blaser explained, “Q2 is typically our lowest revenue quarter of the year due to seasonally low viral prevalence, especially in North America.” The company also cited improved cost control and operational efficiencies, particularly in procurement and manufacturing site consolidation, as key factors supporting profitability.
Is now the time to buy QDEL? Find out in our full research report (it’s free).
QuidelOrtho (QDEL) Q2 CY2025 Highlights:
- Revenue: $613.9 million vs analyst estimates of $611 million (3.6% year-on-year decline, in line)
- Adjusted EPS: $0.12 vs analyst estimates of $0.01 (significant beat)
- Adjusted EBITDA: $106.8 million vs analyst estimates of $95.86 million (17.4% margin, 11.4% beat)
- The company reconfirmed its revenue guidance for the full year of $2.71 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $2.32 at the midpoint
- EBITDA guidance for the full year is $595 million at the midpoint, in line with analyst expectations
- Operating Margin: -29.4%, down from -18.4% in the same quarter last year
- Constant Currency Revenue fell 3.9% year on year, in line with the same quarter last year
- Market Capitalization: $1.71 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From QuidelOrtho’s Q2 Earnings Call
- Margarate Elizabeth Boeye (William Blair): Asked for detail on lower COVID guidance and respiratory expectations; CFO Joseph Busky explained COVID assumptions were reduced due to lower severity and testing, while flu projections remain unchanged.
- Patrick Bernard Donnelly (Citi): Inquired about adjusted EBITDA levers; Busky clarified that lower COVID revenues are offset by cost savings from tariffs and Savanna discontinuation, keeping earnings guidance intact.
- Jack Melick (Jefferies): Sought specifics on point-of-care segment and Sofia platform; Busky noted flat performance in flu revenue and indicated that timing of cardiac testing orders will balance out in the second half.
- Conor Noel McNamara (RBC Capital Markets): Questioned strategy for the LEX Diagnostics launch; CEO Brian Blaser described a dual-channel approach leveraging both existing Sofia customers and new accounts, and emphasized the competitive advantage of the platform’s speed and flexibility.
- Casey Rene Woodring (JPMorgan): Asked about free cash flow ramp and incremental cost savings; Busky affirmed that seasonal patterns and procurement savings should drive stronger cash flow in the second half, with savings weighted toward year-end.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of international expansion, particularly in China and Latin America, (2) execution and regulatory progress for the LEX Diagnostics molecular platform, and (3) realization of procurement and operational savings that underpin margin targets. Additional attention will be given to how QuidelOrtho navigates further COVID volume declines and adapts to changes in global healthcare reimbursement policies.
QuidelOrtho currently trades at $25.19, up from $23.70 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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