HOLX earnings analysis
What we found in HOLX'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
Hologic reported Q1 revenue of $1,047.8 million (up $26.0 million vs. Q1 prior year) while GAAP diluted EPS declined to $0.79 from $0.87 a year ago. Gross profit rose to $586.4 million but gross margin contracted to ~56.0% from ~56.8% year-over-year; operating income improved to $237.0 million. Operating cash flow was strong at $229.9 million, producing free cash flow of ~$215.2 million after $14.7 million of capex. The quarter includes merger-related disclosures (deal at $76.00 per share plus up to $3.00 CVR) and subsequent legal activity plus a BioZorb settlement the company says is fully covered by insurance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth year-over-year
- Total revenue increased to $1,047.8 million in the quarter from $1,021.8 million a year ago (increase of $26.0 million, ≈ +2.5%).
- Operating cash flow and free cash flow
- Net cash provided by operating activities was $229.9 million and free cash flow (operating cash flow less capex of $14.7 million) was ~$215.2 million for the quarter.
- Strong cash balance
- Cash and cash equivalents rose to $2,168.0 million from $1,959.5 million at the prior quarter end (increase of $208.5 million).
- GYN Surgical and Skeletal Health strength
- GYN Surgical revenue increased to $180.8 million from $166.3 million (+$14.5 million, +8.7%) and Skeletal Health grew to $26.7 million from $15.8 million (+$10.9 million, +69.0%).
- Capital equipment revenue jump
- Capital equipment, components and software revenue rose to $187.2 million from $154.2 million (increase of $33.0 million).
- Operating income improved
- Income from operations increased to $237.0 million from $229.8 million (increase of $7.2 million) and operating margin was ~22.6%.
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.
- EPS decline year-over-year
- GAAP diluted EPS fell to $0.79 from $0.87 a year ago (decrease of $0.08, ≈ -9.2%).
- Gross margin contraction
- Gross margin declined to ~56.0% (gross profit $586.4 million on $1,047.8 million revenue) from ~56.8% a year ago (gross profit $580.5 million on $1,021.8 million revenue).
- Revenue mix headwinds — disposables down
- Disposables revenue decreased to $644.2 million from $663.7 million (decline of $19.5 million), partially offset by capital equipment growth.
- Merger- and litigation-related risk
- Company entered a Merger Agreement to be acquired for $76.00 per share plus a non-tradable CVR up to $3.00 per share, and subsequent purported stockholder class actions were filed on January 14 and 15, 2026 (post-period events).
- Contingent consideration / CVR uncertainty
- The transaction includes a CVR (up to $3.00 per share) tied to Breast Health revenue metrics (deal structure disclosed), creating achievement and valuation uncertainty tied to future revenue performance.
- Ongoing legal / settlement items
- Company executed a BioZorb settlement on January 7, 2026; the settlement amount is fully covered by insurance and the Company 'expects it will bear no financial liability related to the settlement agreement.'
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.79
- Gross margin
- 56.0%
- Operating margin
- 22.6%
- Segment
- Diagnostics: $464.4M (down $6.2M vs. $470.6M prior year)
- Segment
- Breast Health: $375.9M (up $6.8M vs. $369.1M prior year)
- Segment
- - Breast Imaging: $280.0M (vs. $281.6M prior year)
- Segment
- - Interventional Breast Solutions: $95.9M (vs. $87.5M prior year)
- Segment
- GYN Surgical: $180.8M (up $14.5M vs. $166.3M prior year)
- Segment
- Skeletal Health: $26.7M (up $10.9M vs. $15.8M prior year)
- Segment
- Revenue by type: Disposables $644.2M (down $19.5M), Capital equipment $187.2M (up $33.0M), Service $211.0M (up $12.4M)
What they said about what is next.
No numeric FY or quarterly revenue/EPS guidance provided in the 10-Q. Management states the merger is 'expected to close in the first half of calendar year 2026' and discloses a settlement (Jan 7, 2026) fully covered by insurance. The company did not provide formal forward EPS or revenue ranges in MD&A; material uncertainties include CVR payouts tied to future Breast Health revenue metrics.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 2, 2025
- Hologic reported Q2 revenue of $1,005.3M, down slightly from $1,017.8M in the prior-year quarter, but results were heavily impacted by large intangible asset impairments recorded in the quarter. Gross profit fell to…
- 10-Q · July 30, 2024
- Hologic reported Q3 revenue of $1,011.4 million (up $27.0 million vs $984.4M a year ago) with GAAP diluted EPS of $0.82 (vs a loss of $0.16). Gross profit expanded to $560.3 million (gross margin 55.4% vs 37.3%) and…
- 10-Q · February 2, 2024
- Hologic reported Q1 revenue of $1,013.1 million, down from $1,074.2 million a year ago, while GAAP diluted EPS rose to $1.03 from $0.75. Operating income declined to $198.2 million from $262.4 million, driven by lower…
- 10-Q · February 1, 2023
- Hologic reported Q1 revenue of $1,074.2 million, down from $1,471.1 million a year ago, with diluted EPS of $0.75 versus $1.95 in the prior-year quarter. Gross margin compressed to 57.54% from 67.05% and operating…
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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