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…
Earnings analysis · 10-Q
HOLX earnings analysis
Filed January 29, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.79
What stood out
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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%).
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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.
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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).
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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%).
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Capital equipment revenue jump
Capital equipment, components and software revenue rose to $187.2 million from $154.2 million (increase of $33.0 million).
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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%.
What to watch
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EPS decline year-over-year
GAAP diluted EPS fell to $0.79 from $0.87 a year ago (decrease of $0.08, ≈ -9.2%).
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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).
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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.
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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).
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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.
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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.'
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.