Q2 2026 QuidelOrtho Corp Earnings Call Transcript
Key Points
- Total revenue increased 2% in Q2 2026, with revenue outside China growing 6%, reflecting broad-based strength across core franchises and regions.
- Labs revenue outside China grew 9%, Immunohematology revenue outside China increased 5%, and TRIAGE expanded by 9%, demonstrating solid commercial execution.
- Adjusted EBITDA increased 21% to $129 million, with EBITDA margin expanding 310 basis points to 20% of revenue, driven by operational-improvement initiatives.
- The NULEXA (LEX) Point of Care Molecular platform is on track for commercialization, with encouraging early-customer engagement and a scalable platform for future menu expansion.
- Geographic performance was strong and broad-based, with North America growing 6%, JPAC growing 10%, and Latin America growing 8%.
- The company is taking aggressive mitigation steps in China and across the business to manage through challenges and strengthen the cost structure.
- China revenue declined 23% year over year due to uncertainty from proposed IVD pricing guidelines, impacting customer buying behavior and inventory levels.
- The respiratory market remained softer than expected, with test-positivity rates down markedly compared with 2025, leading to a cautious forecast for the second half.
- Full-year 2026 guidance was revised downward for revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS due to China headwinds and a prudent respiratory-season outlook.
- Free cash flow guidance was withdrawn due to uncertainty around working-capital impacts from China and respiratory-season dynamics, reflecting a lack of clarity.
- Q2 adjusted gross margin declined 130 basis points to 44.4%, negatively impacted by unfavorable geographic mix from lower China volumes.
- Operating cash flow was negative $111 million and free cash flow was negative $136 million in Q2, with net-debt leverage at 4.3 times adjusted EBITDA.
Welcome to the second-quarter 2026 financial results conference call and webcast.
(Operator Instructions) Please note this conference call is being recorded. An audio replay of the conference call will be available on the company's website, shortly after this call.
I would now like to turn the conference over to Juliet Cunningham, Vice President of Investor Relations. Please go ahead.
Good afternoon, everyone. Thanks for joining us today.
With me are Brian Blaser, President and Chief Executive Officer; and Micah Young, Chief Financial Officer.
This conference call is being simultaneously webcast on the Investor Relations page of our website.
To assist in the presentation, we also posted supplemental information on our Investor Relations page that will be referenced throughout this call.
This conference call and supplemental information contain forward-looking statements, which are made, as of today, August 6, 2026. We assume no
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