QuidelOrtho (QDEL) investor relations material

Executive summary

• Q1 2026 revenue was $620 million, down 10.5–13% year-over-year, impacted by a milder respiratory season, China headwinds, and the termination of a joint business arrangement.

• Adjusted EBITDA was $109 million (17.5–18% margin), with a GAAP net loss of $91.8–$92 million and adjusted diluted loss per share of $0.04.

• Recurring revenue represented 96% of total revenue, highlighting a stable base.

• Acquisition of LEX Diagnostics completed in April 2026, expanding the molecular diagnostics portfolio.

• Key product launches included a high-sensitivity troponin assay in the U.S. and the VITROS 450 platform internationally.

Financial highlights

• Q1 2026 total reported revenue was $620 million; non-respiratory revenue was $551.9–$552 million.

• Adjusted gross profit margin was 43.8–44%, down 630 basis points year-over-year due to product mix.

• Net loss for Q1 2026 was $91.8–$92 million, compared to $12.7 million in Q1 2025.

• Operating cash flow was -$33 million; free cash flow was -$67 million.

• Cash and cash equivalents at quarter-end were $140–$140.4 million.

Outlook and guidance

• Full-year 2026 revenue guidance is $2.70–$2.75 billion, reflecting Q1 performance and lower expected China revenue.

• Adjusted EBITDA expected at $615–$630 million (23% margin); adjusted diluted EPS guidance is $1.80–$2.00.

• Free cash flow expected at $100–$120 million.

• Guidance reflects expected impact from China NHSA IVD pricing guidelines and assumes a typical flu season and no prolonged Middle East conflict.

• Second half 2026 expected to see revenue and margin ramp, driven by stabilization in China, new product launches, and average respiratory season.