CRL earnings analysis
What we found in CRL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Charles River Laboratories reported Q1 2026 revenue of $995.8 million, exceeding estimates, but faced a significant GAAP net loss attributable to shareholders of $14.8 million due to substantial divestiture losses. Segment performance varied, with growth in Manufacturing offset by declines in Research Models and Services. The company's operating cash flow decreased significantly, indicating ongoing pressures despite positive revenue trends.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Estimates
- Q1 2026 revenue reached $995.8 million, surpassing the estimate of $976.2 million and representing a year-over-year growth of 1.2%.
- EPS Beats Expectations
- The company reported a diluted EPS of $2.06, exceeding the estimate of $1.95 by 5.6%.
- Manufacturing Segment Growth
- Manufacturing revenue increased by 6.8% to $190.5 million, driven mainly by Microbial Solutions.
- Operating Margin Improvement
- Operating income increased significantly to $119.9 million, which represents a margin of 12.0%, up from 7.6% in the prior year.
- Major Asset Divestitures
- Completed divestiture of CDMO and Cell Solutions businesses, resulting in a pre-tax loss of $118 million.
- Cost Savings Initiatives
- Management anticipates generating $300 million in annualized cost savings by the end of 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Substantial GAAP Net Loss
- The company recorded a net loss of $14.8 million, a decline from a profit of $25.5 million in Q1 2025, primarily impacted by divestiture losses.
- Declining Cash Flows
- Operating cash flows dropped to $41.1 million from $171.7 million year-over-year, largely due to increased variable compensation payments.
- Increased Debt Levels
- Total debt rose to $2.67 billion from $2.12 billion, raising concerns about liquidity and leverage.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.06
- Operating margin
- 12.0%
- Segment
- Research Models and Services (RMS)
- Segment
- Discovery and Safety Assessment (DSA)
- Segment
- Manufacturing Solutions (Manufacturing)
What they said about what is next.
2026 guidance reaffirmed with expectations of revenue decline between -5.5% to -4.0%.
The filing reads worse than the one before it.
What came before.
- 10-K · February 19, 2025
- Charles River reports FY2024 revenue of $4,049,989,000 with operating income of $227,347,000 and diluted EPS of $0.20, while generating strong operating cash flow of $734,577,000 (free cash flow approx. $501,610,000…
- 10-Q · May 9, 2024
- Charles River reported revenue of $1,011.6M for the quarter, down 1.7% year-over-year, while operating income fell 25.0% to $126.0M and operating margin compressed 380 bps to 12.5%. Performance was driven by weakness in…
- 10-K · February 14, 2024
- Charles River (CRL) describes a strategy of offering an integrated drug discovery and non-clinical development platform across three reportable segments (RMS, DSA, Manufacturing) and augmenting organic growth with…
- 10-Q · November 8, 2023
- Charles River reported Q3 revenue of $1,026,623,000, up $37,466,000 or 3.8% year-over-year, with operating income essentially flat at $151,502,000 (14.8% of revenue). DSA drove growth while Manufacturing declined; net…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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