Hologic (HOLX) 7th Annual Evercore ISI HealthCONx Conference summary

Fiscal 2024 review and 2025 outlook

• Achieved internal expectations for Q4, with strong top and bottom line growth, continuing a positive trend despite COVID-related declines now fully lapsed in 2025.

• Fiscal 2025 guidance midpoint is 4% growth, with Q1 and Q2 expected at 2% due to unique headwinds, and higher growth implied for Q3 and Q4.

• Key first-half headwinds include a skeletal product stop-ship, IV fluid shortages impacting elective procedures, and a muted respiratory season.

• Margin improvements are expected in the second half as revenue headwinds abate and operating expenses decline seasonally.

• No significant changes in customer behavior or macro impacts observed post-elections; exposure to China and Mexico remains limited.

Segment performance and growth drivers

• Molecular business continues double-digit growth, driven by expanded Panther placements and a broad assay menu, with BV/CV poised to become the largest assay.

• Biotheranostics, acquired in 2021, is accretive to molecular growth and has surpassed $100 million in annual revenue.

• Service revenue in breast health has grown mid-single digits, supported by increased attach rates, pricing discipline, and recognized service quality.

• Interventional segment growth is fueled by organic and inorganic investments, including the Endomag acquisition, with BioZorb recall having minimal impact.

• International revenues, about 25% of total, have grown high single digits due to direct market strategies, expanded commercial capabilities, and strong surgical performance.

Product innovation and pipeline

• Digital Genius cytology platform launched to stabilize and secure the cytology business, offering workflow improvements and international opportunities.

• New gantry for breast imaging launched at RSNA, focusing on image quality and patient experience, with commercial impact expected in 2026.

• Next-gen Fluent for fluid management and additional assay menu expansions are in development across divisions.

• Several new assays, including GI and hospital-acquired infection, are expected to contribute revenue from 2026.