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Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-08 · 138 added, 76 removed, 186 unchanged (54% of the section changed)

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This Quarterly Report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act.

These statements are any statement contained herein that is not strictly historical, including, but not limited to, certain statements under Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including under “Outlook” and “Liquidity Outlook,” and statements located elsewhere herein regarding our commercial, integration and other strategic goals, our cost-savings initiatives, industry prospects, our expected results of operations or financial position, and future plans, objectives, strategies, expectations and intentions.

These statements are any statement contained herein that is not strictly historical, including, but not limited to, certain statements under Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including under “Outlook” and “Liquidity Outlook,” and statements located elsewhere herein regarding our commercial, integration and other strategic goals, our cost-savings and operational improvement initiatives, industry prospects, our expected results of operations or financial position, and other future plans, objectives, strategies, expectations and intentions.

Without limiting the foregoing, the words “may,” “will,” “could,” “would,” “should,” “might,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “goal,” “project,” “strategy,” “future,” “continue,” “aim,” “strive,” “seek” or similar words, expressions or the negative of such terms or other comparable terminology are intended to identify forward-looking statements.

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Actual results or outcomes may differ significantly from those set forth or implied in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth or implied in the forward-looking statements:

The following factors, among others, could cause actual results or outcomes to differ from those set forth or implied in the forward-looking statements:

fluctuations in demand for our non-respiratory and respiratory products;

supply chain, production, logistics, distribution and labor disruptions and challenges;

the challenges and costs of integrating, restructuring and achieving anticipated synergies as a result of the Combinations;

the challenges and costs of integrating, restructuring and achieving anticipated synergies as a result of the Combinations or other acquisitions;

failure to exercise the option to acquire or complete the proposed acquisition of LEX Diagnostics on the anticipated timeline, or at all, including risks and uncertainties related to LEX Diagnostics’ ability to secure FDA clearance and satisfy other customary closing conditions and provisions;

inability to realize the anticipated benefits of acquisitions, discontinuances of certain business operations (such as the Savanna Exit) or the Optimization Plan on our anticipated timelines, or at all;

delays in the development of or failures or delays in the receipt of approvals for new or enhanced products;

and other macroeconomic, geopolitical, market, business, competitive and/or regulatory factors affecting our business generally, including those arising from the effects of announced or future or amended tariffs, trade policies and global trade relations, as well as those discussed under Part II, Item 1A, “Risk Factors” of this Quarterly Report and Part I, Item 1A, “Risk Factors” of our Annual Report.

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Labs, Transfusion Medicine (Immunohematology and Donor Screening product categories), Point of Care and Molecular Diagnostics.

We also generate non-core revenue, including through our contract manufacturing business and certain business collaborations, which accounted for $33.4 million and $31.0 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

For the three months ended March 30, 2025, Total revenues decreased by 3% to $692.8 million as compared to the same period in the prior year.

We also generate non-core revenue, including through our contract manufacturing business and certain business collaborations, which accounted for $59.8 million and $51.0 million for the six months ended June 29, 2025 and June 30, 2024, respectively.

For the six months ended June 29, 2025, Total revenues decreased by 3% to $1,306.7 million as compared to the same period in the prior year.

This decrease was primarily driven by variability of our U.S.

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Our revenues can be highly concentrated over a small number of products, including certain of our respiratory products.

For the three months ended March 30, 2025 and March 31, 2024, revenues related to our respiratory

products accounted for 17% and 19% of our Total revenues, respectively.

The respiratory product revenue included $23.4 million and $50.2 million revenue related to COVID-19 for the three months ended March 30, 2025 and March 31, 2024, respectively.

For the six months ended June 29, 2025 and June 30, 2024, revenues related to our respiratory products accounted for 13% and 14% of our Total revenues, respectively.

The respiratory product revenue included $32.9 million and $69.1 million revenue related to COVID-19 for the six months ended June 29, 2025 and June 30, 2024, respectively.

Planned Wind-Down of U.S.

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The wind-down of our U.S.

donor screening portfolio is expected to be substantially complete by the end of 2025.

donor screening portfolio is expected to be substantially complete by the first half of 2026.

Restructuring and Other Charges

In the second quarter of 2025, we launched multi-year, enterprise-wide cost-reduction, strategic productivity and margin improvement initiatives (the “Optimization Plan”) that aim to (i) realign our costs with our long-term revenue expectations, (ii) drive operational efficiencies in manufacturing and distribution cost bases and (iii) support and align with our strategy to invest in key priorities.

The cumulative pretax charges to be incurred by us to implement the Optimization Plan are expected to be approximately $100 million through 2027.

The Optimization Plan is expected to deliver net cost savings of approximately $50 million to be achieved through 2027.

The key initiatives of the Optimization Plan are:

• Rationalization and consolidation of facilities to reduce operational costs, improve processes, and optimize resource allocation.

• A structured approach to procurement to drive identified sourcing cost savings.

• A distribution rationalization plan, mainly in EMEA, to streamline a complex corporate structure to reduce costs and improve efficiency.

We continue to monitor our operations for cost-reduction, strategic productivity and margin improvement opportunities to streamline our operations globally and identify additional cost savings.

We may expand our cost-reduction, strategic productivity and margin improvement initiatives in the future, the costs of which could be material.

Additionally, in the second quarter of 2025, we announced a strategic refocusing of our Molecular Diagnostics business, including our plan to discontinue the development of the Savanna platform, which exit we expect to be substantially complete by the first half of 2027, and our intent to acquire LEX Diagnostics.

Refer to Item 1, “Financial Statements—Note 13.

Restructuring, Integration and Other Charges” for further details regarding these actions.

Recent Macroeconomic Trends and Challenges

In recent months, the United States has announced tariffs on imports from most countries, including significant tariffs on imports from U.K., Canada, Mexico and China, leading to increasing trade and political tensions.

In April 2025, the U.S.

announced tariffs on imports from most countries, including significant tariffs on imports from U.K., Canada, Mexico and China, leading to increasing trade and political tensions.

In response to tariffs, other countries have implemented retaliatory tariffs on U.S.

These actions and the related rising political tensions could negatively impact global macroeconomic conditions and the stability of global financial markets, which could have a material adverse effect on our business, financial condition and results of operations, including through increased supply chain costs.

There is substantial uncertainty about the duration of existing tariffs or pauses in tariffs, tariff levels and whether additional tariffs or other retaliatory actions may be imposed, modified or suspended.

While trade negotiations are ongoing and certain bilateral trade deals have been announced, there remains substantial uncertainty about the duration of existing tariffs or pauses in tariffs, tariff levels and whether additional tariffs or retaliatory actions may be imposed, modified or suspended.

We continue to closely monitor these events as they unfold and assess their potential impact on our operations to inform our response strategy.

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Results of Operations

The following table compares Total revenues by business unit for the three months ended March 30, 2025 and March 31, 2024:

Three Months Ended

(Dollars in millions) March 30, 2025 March 31, 2024 % Change

The following table compares Total revenues by business unit for the three and six months ended June 29, 2025 and June 30, 2024:

Three Months Ended Six Months Ended

(Dollars in millions) June 29, 2025 June 30, 2024 % Change June 29, 2025 June 30, 2024 % Change

Labs $ 369.7 $ 354.2 4 % $ 742.7 $ 711.3 4 %

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Prior periods have been revised to align with the current period presentation.

For the three months ended March 30, 2025, Total revenues decreased to $692.8 million from $711.0 million for the same period in the prior year.

For the three months ended June 29, 2025, Total revenues decreased to $613.9 million from $637.0 million for the same period in the prior year.

Labs revenue increased 4% compared to the prior year period, primarily due to growth in reagents, consumables and services, partially offset by a decline in instrument revenue.

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donor screening business.

The Point of Care business unit contributed to revenue decline, driven by a decrease of $15.8 million, or 37% in sales of QuickVue SARS Antigen assays.

Point of Care revenue decreased 21% compared to the prior year period, primarily due to decreases in sales of QuickVue and Sofia SARS Antigen assays.

Molecular Diagnostics revenue increased slightly compared to the prior year period.

Currency exchange rates did not significantly impact our growth rate for the three months ended June 29, 2025.

For the six months ended June 29, 2025, Total revenues decreased to $1,306.7 million from $1,348.0 million for the same period in the prior year.

Labs revenue increased 4% compared to the prior year period, primarily due to growth in reagents, consumables and services, partially offset by a decline in instrument revenue.

Immunohematology revenue increased 3%

compared to the prior year period, primarily due to reagent growth.

Donor Screening revenue decreased 61% compared to the prior year period, primarily due to the wind-down of the U.S.

donor screening business.

The Point of Care business unit contributed to revenue decline, driven by a decrease of $29.8 million, or 16% in sales of QuickVue SARS and Sofia SARS Antigen assays.

Molecular Diagnostics revenue increased 14% compared to the prior year period, driven by higher Savanna revenue.

Currency exchange rates had an unfavorable impact of 150 basis points on our growth rate for the three months ended March 30, 2025.

Currency exchange rates had an unfavorable impact of 70 basis points on our growth rate for the six months ended June 29, 2025.

Cost of Sales, Excluding Amortization of Intangible Assets

Cost of sales, excluding amortization of intangible assets, decreased to $349.5 million, or 50.4% of Total revenues, for the three months ended March 30, 2025, compared to $378.9 million, or 53.3% of Total revenues, for the three months ended March 31, 2024.

Cost of sales, excluding amortization of intangible assets, decreased to $339.0 million, or 55.2% of Total revenues, for the three months ended June 29, 2025, compared to $361.0 million, or 56.7% of Total revenues, for the three months ended June 30, 2024.

The decrease in cost of sales, excluding amortization of intangible assets, was driven primarily by procurement-related cost-savings initiatives actioned in 2024.

Cost of sales, excluding amortization of intangible assets, decreased to $688.5 million, or 52.7% of Total revenues, for the six months ended June 29, 2025, compared to $739.9 million, or 54.9% of Total revenues, for the six months ended June 30, 2024.

The decrease in cost of sales, excluding amortization of intangible assets, was driven primarily by procurement-related cost-savings initiatives actioned in 2024.

Operating Expenses

The following table summarizes operating expenses for the three months ended March 30, 2025 and March 31, 2024:

Three Months Ended

(Dollars in millions) March 30, 2025 % of

Total Revenues March 31, 2024 % of

The following table summarizes operating expenses for the three and six months ended June 29, 2025 and June 30, 2024:

Three Months Ended Six Months Ended

(Dollars in millions) June 29, 2025 % of

Total Revenues June 30, 2024 % of

Total Revenues June 29, 2025 % of

Total Revenues June 30, 2024 % of

Total Revenues

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Amortization of intangible assets 47.9 7.8 % 51.9 8.1 % 95.9 7.3 % 103.6 7.7 %

Integration related costs 16.1 2.3 % 22.6 3.2 %

Goodwill impairment charge — N/M 1,743.9 N/M

Restructuring, integration and other charges 178.9 29.1 % 30.9 4.9 % 195.0 14.9 % 53.5 4.0 %

Goodwill impairment charge — N/M — N/M — N/M 1,743.9 N/M

Asset impairment charge — N/M 56.9 N/M — N/M 56.9 N/M

Other operating expenses 5.1 0.8 % 9.3 1.5 % 11.5 0.9 % 17.3 1.3 %

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Selling, Marketing and Administrative Expenses

Selling, marketing and administrative expenses for the three months ended March 30, 2025 decreased by $17.7 million, or 8.6%, to $187.0 million from $204.7 million for the same period in the prior year, primarily due to compensation costs related to cost-savings initiatives actioned in 2024.

Selling, marketing and administrative expenses for the three months ended June 29, 2025 decreased by $10.2 million, or 5.4%, to $178.0 million from $188.2 million for the same period in the prior year, primarily due to lower compensation costs related to cost-savings initiatives actioned in 2024 and lower outside services.

Selling, marketing and administrative expenses for the six months ended June 29, 2025 decreased by $27.9 million, or 7.1%, to $365.0 million from $392.9 million for the same period in the prior year, primarily due to lower compensation costs related to cost-savings initiatives actioned in 2024 and lower outside services.

Research and Development Expense

Research and development expense for the three months ended March 30, 2025 decreased by $6.0 million, or 10.1%, to $53.2 million from $59.2 million for the same period in the prior year, primarily due to compensation costs related to cost-savings initiatives actioned in 2024.

Research and development expense for the three months ended June 29, 2025 decreased by $10.6 million, or 18.8%, to $45.7 million from $56.3 million for the same period in the prior year, primarily due to cost-savings initiatives actioned in 2024.

Research and development expense for the six months ended June 29, 2025 decreased by $16.6 million, or 14.4%, to $98.9 million from $115.5 million for the same period in the prior year, primarily due to lower clinical supplies and compensation costs related to cost-savings initiatives actioned in 2024.

Amortization of Intangible Assets

Amortization of intangible assets was $48.0 million and $51.7 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

Integration Related Costs

Integration related costs were $16.1 million and $22.6 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

The decrease in costs compared to the prior year period was primarily due to lower consulting costs and compensation related charges.

Amortization of intangible assets was $47.9 million and $95.9 million for the three and six months ended June 29, 2025, respectively, and $51.9 million and $103.6 million for the three and six months ended June 30, 2024, respectively.

Restructuring, integration and other charges

Restructuring, integration and other charges were $178.9 million and $195.0 million for the three and six months ended June 29, 2025, respectively, and $30.9 million and $53.5 million for the three and six months ended June 30, 2024, respectively.

The increases were primarily driven by restructuring and other charges related to the (i) implementation of cost-reduction, strategic productivity and margin improvement initiatives under the Optimization Plan and (ii) the Savanna Exit, partially offset by a decrease in integration-related charges.

Refer to Item 1, “Financial Statements—Note 13.

Restructuring, Integration and Other Charges” for more information.

Goodwill Impairment Charge

We recognized a non-cash goodwill impairment charge of $1.7 billion for the three months ended March 31, 2024.

We recognized a non-cash goodwill impairment charge of $1.7 billion for the six months ended June 30, 2024.

Asset Impairment Charge

We recognized an impairment charge of $56.9 million related to the long-lived assets classified as assets held for sale for each of the three and six months ended June 30, 2024.

Other Operating Expenses

Other operating expenses were $6.4 million and $8.0 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

Other operating expenses were $5.1 million and $11.5 million for the three and six months ended June 29, 2025, respectively, and $9.3 million and $17.3 million for the three and six months ended June 30, 2024, respectively.

Other operating expenses were primarily related to the profit share expense for our Joint Business.

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Interest Expense, Net

Interest expense, net was $40.0 million and $39.0 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

Interest expense, net was $40.5 million and $80.5 million for the three and six months ended June 29, 2025, respectively, and $41.0 million and $80.0 million for the three and six months ended June 30, 2024, respectively.

Refer to Item 1, “Financial Statements—Note 7.

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Other Expense, Net

Other expense, net was $1.4 million and $1.9 million for the three months ended March 30, 2025 and March 31, 2024, respectively.

For the three months ended March 30, 2025, we recognized a provision for income taxes of $3.9 million in relation to loss before income taxes of $8.8 million, resulting in a negative effective tax rate of 44.3%.

For the three months ended March 31, 2024, we recognized an income tax benefit of $92.9 million in relation to loss before income taxes of $1,798.9 million, resulting in an effective tax rate of 5.2%.

For the three months ended March 30, 2025, the effective tax rate differed from the U.S.

Other expense, net was $8.4 million and $9.8 million for the three and six months ended June 29, 2025, respectively, and $4.4 million and $6.3 million for the three and six months ended June 30, 2024, respectively.

The increases from the prior year periods were primarily related to net foreign currency losses, partially offset by Credit Agreement amendment fees in the prior year periods.

For the three months ended June 29, 2025, we recognized a provision for income taxes of $25.8 million in relation to loss before income taxes of $229.6 million, resulting in a negative effective tax rate of 11.2%.

For the three months ended June 30, 2024, we recognized an income tax benefit of $15.2 million in relation to loss before income taxes of $162.9 million, resulting in an effective tax rate of 9.3%.

For the three months ended June 29, 2025, the effective tax rate differed from the U.S.

federal statutory rate primarily due to the impacts of operating losses in certain subsidiaries not benefited due to the establishment of valuation allowances.

For the three months ended June 30, 2024, the effective tax rate differed from the U.S.

federal statutory rate primarily due to Subpart F income and the Base Erosion and Anti-Abuse Tax liability.

For the six months ended June 29, 2025, we recognized a provision for income taxes of $29.7 million in relation to loss before income taxes of $238.4 million, resulting in a negative effective tax rate of 12.5%.

For the six months ended June 30, 2024, we recognized an income tax benefit of $108.1 million in relation to loss before income taxes of $1,961.8 million, resulting in an effective tax rate of 5.5%.

For the six months ended June 29, 2025, the effective tax rate differed from the U.S.

federal statutory rate primarily due to the impacts of operating losses in certain subsidiaries not being benefited due to the establishment of valuation allowances.

For the three months ended March 31, 2024, the effective tax rate differed from the U.S.

For the six months ended June 30, 2024, the effective tax rate differed from the U.S.

federal statutory rate primarily due to goodwill impairment charges that were nondeductible for tax purposes.

On July 4, 2025, the OBBBA was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

We are in the process of evaluating the impacts on our Consolidated Financial Statements.

Segment Results

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Total revenues and Adjusted EBITDA for North America were as follows:

Three Months Ended

(Dollars in millions) March 30, 2025 March 31, 2024 % Change

Three Months Ended Six Months Ended

(Dollars in millions) June 29, 2025 June 30, 2024 % Change June 29, 2025 June 30, 2024 % Change

Total revenues $ 310.7 $ 350.1 (11) % $ 717.4 $ 784.0 (8) %

Adjusted EBITDA $ 159.7 $ 185.6 (14) % $ 394.0 $ 422.2 (7) %

Total revenues were $406.7 million for the three months ended March 30, 2025, compared to $433.9 million for the three months ended March 31, 2024.

Total revenues were $310.7 million for the three months ended June 29, 2025, compared to $350.1 million for the three months ended June 30, 2024.

The decrease was primarily driven by the wind-down of the U.S.

donor screening business and a decrease in sales of QuickVue SARS Antigen assays, partially offset by an increase in Labs revenues.

Adjusted EBITDA was $234.3 million for the three months ended March 30, 2025, compared to $236.6 million for the three months ended March 31, 2024.

donor screening business and decreases in sales of QuickVue and Sofia SARS Antigen assays, partially offset by an increase in Labs revenues.

Total revenues were $717.4 million for the six months ended June 29, 2025, compared to $784.0 million for the six months ended June 30, 2024.

The decrease was primarily driven by the wind-down of the U.S.

donor screening business and decreases in sales of QuickVue and Sofia SARS Antigen assays, partially offset by an increase in Labs revenues.

Adjusted EBITDA was $159.7 million for the three months ended June 29, 2025, compared to $185.6 million for the three months ended June 30, 2024.

The decrease was primarily driven by decreases in revenue due to the wind-down of the U.S.

donor screening business and sales of QuickVue SARS Antigen assays, partially offset by an increase in Labs revenues and lower operating expenses due to cost-savings initiatives.

donor screening business and decreases in sales of QuickVue and Sofia SARS Antigen assays, partially offset by lower operating expenses due to cost-savings initiatives and an increase in Labs revenues.

Adjusted EBITDA was $394.0 million for the six months ended June 29, 2025, compared to $422.2 million for the six months ended June 30, 2024.

The decrease was primarily driven by decreases in revenue due to the wind-down of the U.S.

Total revenues and Adjusted EBITDA for EMEA were as follows:

Three Months Ended

(Dollars in millions) March 30, 2025 March 31, 2024 % Change

Three Months Ended Six Months Ended

(Dollars in millions) June 29, 2025 June 30, 2024 % Change June 29, 2025 June 30, 2024 % Change

Total revenues $ 87.3 $ 81.1 8 % $ 176.2 $ 165.9 6 %

Adjusted EBITDA $ 18.3 $ 12.1 51 % $ 34.8 $ 23.7 47 %

Total revenues were $88.9 million for the three months ended March 30, 2025, compared to $84.8 million for the three months ended March 31, 2024, primarily driven by increases in revenues across most of our business units.

Adjusted EBITDA was $16.5 million for the three months ended March 30, 2025, compared to $11.6 million for the three months ended March 31, 2024, primarily driven by lower operating expenses due to cost-savings initiatives and increases in revenues.

Total revenues were $87.3 million for the three months ended June 29, 2025, compared to $81.1 million for the three months ended June 30, 2024, primarily driven by increases in revenues across all business units.

Total revenues were $176.2 million for the six months ended June 29, 2025, compared to $165.9 million for the six months ended June 30, 2024, primarily driven by increases in Immunohematology and Point of Care revenues.

Adjusted EBITDA was $18.3 million for the three months ended June 29, 2025, compared to $12.1 million for the three months ended June 30, 2024.

The increase was primarily driven by increases in revenues, lower distribution costs and other operating expenses due to cost-savings initiatives.

Adjusted EBITDA was $34.8 million for the six months ended June 29, 2025, compared to $23.7 million for the six months ended June 30, 2024, primarily driven by increases in revenues, lower distribution costs and other operating expenses due to cost-savings initiatives.

Total revenues and Adjusted EBITDA for China were as follows:

Three Months Ended

(Dollars in millions) March 30, 2025 March 31, 2024 % Change

Three Months Ended Six Months Ended

(Dollars in millions) June 29, 2025 June 30, 2024 % Change June 29, 2025 June 30, 2024 % Change

Total revenues $ 83.4 $ 81.6 2 % $ 158.4 $ 157.7 — %

Adjusted EBITDA $ 42.1 $ 35.7 18 % $ 71.4 $ 61.8 16 %

Total revenues were $75.0 million for the three months ended March 30, 2025, compared to $76.1 million for the three months ended March 31, 2024, driven by a decrease in Point of Care revenues, partially offset by an increases in Labs and Donor Screening revenues.

Adjusted EBITDA was $29.3 million for the three months ended March 30, 2025, compared to $26.1 million for the three months ended March 31, 2024.

Total revenues were $83.4 million for the three months ended June 29, 2025, compared to $81.6 million for the three months ended June 30, 2024, driven by an increase of 9% in Labs revenues, partially offset by decreases in revenues of other business units.

Total revenues were $158.4 million for the six months ended June 29, 2025, compared to $157.7 million for the six months ended June 30, 2024, driven by an increase of 5% in Labs revenues, partially offset by a decrease in Point of Care revenues.

Adjusted EBITDA was $42.1 million for the three months ended June 29, 2025, compared to $35.7 million for the three months ended June 30, 2024.

The increase was primarily driven by the impact from changes in product mix and higher Labs revenues.

Adjusted EBITDA was $71.4 million for the six months ended June 29, 2025, compared to $61.8 million for the six months ended June 30, 2024.

The increase was primarily driven by the impact from changes in product mix and higher Labs revenues.

Total revenues and Adjusted EBITDA for Other were as follows:

Three Months Ended

(Dollars in millions) March 30, 2025 March 31, 2024 % Change

Three Months Ended Six Months Ended

(Dollars in millions) June 29, 2025 June 30, 2024 % Change June 29, 2025 June 30, 2024 % Change

Total revenues $ 132.5 $ 124.2 7 % $ 254.7 $ 240.4 6 %

Adjusted EBITDA $ 37.9 $ 34.0 11 % $ 67.5 $ 65.5 3 %

Total revenues were $122.2 million for the three months ended March 30, 2025, compared to $116.2 million for the three months ended March 31, 2024, primarily driven by an increase in Labs revenues.

Adjusted EBITDA was $29.6 million for the three months ended March 30, 2025, compared to $31.5 million for the three months ended March 31, 2024, primarily driven by higher operating expenses and the impact from changes in product mix.

Total revenues were $132.5 million for the three months ended June 29, 2025, compared to $124.2 million for the three months ended June 30, 2024, primarily driven by increases in Labs and Immunohematology revenues.

Total revenues were $254.7 million for the six months ended June 29, 2025, compared to $240.4 million for the six months ended June 30, 2024, primarily driven by an increase in Labs revenues.

Adjusted EBITDA was $37.9 million for the three months ended June 29, 2025, compared to $34.0 million for the three months ended June 30, 2024.

The increase was primarily driven by increases in Labs and Immunohematology revenues and lower operating expenses, partially offset by the impact from changes in product mix.

Adjusted EBITDA was $67.5 million for the six months ended June 29, 2025, compared to $65.5 million for the six months ended June 30, 2024, primarily driven by an increase in Labs revenues, partially offset by the impact from changes in product mix.

Liquidity and Capital Resources

As of March 30, 2025 and December 29, 2024, our principal sources of liquidity consisted of the following:

(In millions) March 30, 2025 December 29, 2024

As of June 29, 2025 and December 29, 2024, our principal sources of liquidity consisted of the following:

(In millions) June 29, 2025 December 29, 2024

Cash and cash equivalents $ 151.7 $ 98.3

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Working capital including cash and cash equivalents $ 139.4 $ 220.1

As of March 30, 2025, we had $127.1 million in Cash and cash equivalents, a $28.8 million increase from December 29, 2024.

Our cash requirements fluctuate as a result of numerous factors, including cash generated from operations, progress in R&D, capital expansion projects and acquisition and business development activities.

As of June 29, 2025, we had $151.7 million in Cash and cash equivalents, a $53.4 million increase from December 29, 2024.

Our cash requirements fluctuate as a result of numerous factors, including cash generated from operations, progress in R&D, capital expansion projects and acquisition, restructuring and business development activities.

We believe our organizational structure allows us the necessary flexibility to move funds throughout our subsidiaries to meet our operational working capital needs.

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Our Credit Agreement consists of a $2,750.0 million Term Loan and an $800.0 million Revolving Credit Facility.

Availability under the Revolving Credit Facility, after deducting letters of credit of $12.7 million and $250.0 million borrowings outstanding, was $537.3 million as of March 30, 2025.

Availability under the Revolving Credit Facility, after deducting letters of credit of $12.7 million and $390.0 million borrowings outstanding, was $397.3 million as of June 29, 2025.

On April 25, 2024, we entered into Amendment No.

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The Credit Agreement contains a minimum Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of 3.00 to 1.00 as of the end of any fiscal quarter for the most recently completed four fiscal quarters.

We were in compliance with the financial covenants as of March 30, 2025.

We were in compliance with the financial covenants as of June 29, 2025.

Capital Expenditures

Capital expenditures, including investments, were $56.2 million for the three months ended March 30, 2025.

Capital expenditures, including investments, were $87.2 million for the six months ended June 29, 2025.

We continue to make capital expenditures in connection with the expansion of our manufacturing capabilities and other facility-related activities.

Cash Flow Summary

Three Months Ended

(In millions) March 30, 2025 March 31, 2024

Six Months Ended

(In millions) June 29, 2025 June 30, 2024

Net cash provided by (used for) operating activities $ 18.8 $ (98.6)

Net cash used for investing activities (89.2) (55.5)

Net cash provided by (used for) financing activities 17.6 (18.5)

Net cash provided by financing activities 120.9 144.0

Effect of exchange rates on cash 2.7 (1.9)

Net increase (decrease) in cash, cash equivalents and restricted cash $ 53.2 $ (12.0)

Three Months Ended March 30, 2025

Cash provided by operating activities was $65.6 million for the three months ended March 30, 2025 and reflected a net loss of $12.7 million and non-cash adjustments of $123.7 million, primarily associated with depreciation and amortization and stock-based compensation expense, partially offset by $53.1 million in cash outflows for inventories.

Cash used for investing activities of $56.2 million for the three months ended March 30, 2025 was related to purchases of property, plant, equipment, investments and intangibles.

Cash provided by financing activities was $17.6 million for the three months ended March 30, 2025 and was primarily related to net proceeds from the Revolving Credit Facility of $52.0 million, partially offset by payments on long-term borrowings of $36.0 million.

Three Months Ended March 31, 2024

Cash used for operating activities was $0.7 million for the three months ended March 31, 2024 and reflected a net loss of $1,706.0 million and non-cash adjustments of $1,791.6 million, primarily associated with a goodwill impairment charge and change in deferred tax assets and liabilities as well as depreciation and amortization and stock-based compensation expense.

Six Months Ended June 29, 2025

Cash provided by operating activities was $18.8 million for the six months ended June 29, 2025 and reflected a net loss of $268.1 million and non-cash adjustments of $407.0 million, primarily associated with depreciation and amortization, asset write off related to restructuring, integration and other charges, and stock-based compensation expense, partially offset by $102.6 million in cash outflows for inventories.

Cash used for investing activities of $89.2 million for the six months ended June 29, 2025 was primarily related to purchases of property, plant, equipment, investments and intangibles.

Cash provided by financing activities was $120.9 million for the six months ended June 29, 2025 and was primarily related to net proceeds from the Revolving Credit Facility of $192.0 million, partially offset by payments on long-term borrowings of $72.0 million.

Six Months Ended June 30, 2024

Cash used for operating activities was $98.6 million for the six months ended June 30, 2024 and reflected a net loss of $1,853.7 million and non-cash adjustments of $1,971.1 million, primarily associated with a goodwill impairment charge and change in deferred tax assets and liabilities as well as depreciation and amortization, asset impairment charge and stock-based compensation expense.

We benefited from collections on accounts receivables, which contributed cash inflows of $24.2 million, offset by other changes in working capital, including $95.2 million cash outflows for inventories.

Cash used for investing activities was $20.2 million for the three months ended March 31, 2024 and was primarily related to $66.1 million in purchases of property, plant, equipment, investments and intangibles.

Cash used for investing activities was $55.5 million for the six months ended June 30, 2024 and was primarily related to $101.4 million in purchases of property, plant, equipment, investments and intangibles.

We also sold $63.1 million of marketable securities.

Cash used for financing activities was $18.5 million for the three months ended March 31, 2024 and was primarily related to payments on long-term borrowings of $51.9 million and net proceeds from the Revolving Credit Facility of $40.0 million.

Cash provided by financing activities was $144.0 million for the six months ended June 30, 2024 and was primarily related to net proceeds from the Revolving Credit Facility of $253.0 million, partially offset by payments on long-term borrowings of $103.7 million.

Liquidity Outlook

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Recent Accounting Pronouncements

There have been no accounting pronouncements issued or adopted during the three months ended March 30, 2025 that are expected to have a material impact on the Company’s financial statements.

There have been no accounting pronouncements issued or adopted during the six months ended June 29, 2025 that are expected to have a material impact on the Company’s financial statements.

Critical Accounting Estimates

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A comprehensive discussion of our critical accounting estimates is included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report.

There have been no significant changes to our critical accounting policies and estimates during the three months ended March 30, 2025.

There have been no significant changes to our critical accounting policies and estimates during the six months ended June 29, 2025.

Quantitative and Qualitative Disclosures About Market Risk

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis