Q3 2025 Hologic Inc Earnings Call Transcript
Key Points
- Hologic Inc (HOLX) exceeded its revenue and non-GAAP earnings per share guidance for the third quarter of fiscal 2025.
- The diagnostics business showed growth, with molecular diagnostics leading the way, particularly in the United States.
- The breast health business showed sequential improvement, with positive contributions from the skeletal franchise as supply constraints lifted.
- Endomagnetics, acquired last summer, contributed nearly $20 million in revenue with a healthy gross margin, exceeding deal expectations.
- The company has made significant progress in mitigating tariff impacts, reducing expected quarterly tariff expenses by half.
- Breast health revenues declined by 5.8% compared to the prior year, although this was expected.
- The operating environment in China and reduced funding for HIV tests in Africa negatively impacted the diagnostics business.
- Non-GAAP gross margin decreased by 80 basis points due to product mix and a reserve recorded in the skeletal health division.
- Operating expenses increased by 2.2%, driven by acquisitions and increased expenses related to the deferred compensation plan.
- The company faces ongoing challenges with tariffs, expecting $10 million to $12 million in tariff expenses per quarter in fiscal 2026.
Ladies and gentlemen, good afternoon and welcome to Hologic's third quarter fiscal 2025 earnings conference call. My name is Lisa, and I'll be your operator for today's call. (Operator Instructions) I would now like to introduce Mike Watts, Corporate Vice President, Investor Relations, to begin our call.
Thank you, Lisa. Good afternoon and thank you for joining Hologic's third quarter fiscal 2025 earnings call. With me today is Stephan MacMillan, the company's Chairman, President and Chief Executive Officer; Essex Mitchell, our Chief Operating Officer; and Karleen Oberton, our Chief Financial Officer.
Our third quarter press release is available now on the Investors Section of our website. We will also post our prepared remarks to our website shortly after we deliver them, and a replay of this call will be available for 30 days.
Before we begin, we'd like to inform you that certain statements we make today will be forward-looking. These statements involve known and unknown
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