QuidelOrtho Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 5 lowered. The quarter’s numbers.

Key takeaways

Total revenue fell 10.5%: Total revenue was $619.8 million, down 10.5% from $692.8 million, or 12.6% in constant currency. Management tied the quarter to the respiratory season and to business disruption in China and the Middle East. Source
Point of Care fell on respiratory season: Point of Care revenue was $112.8 million, down 34.0% from $170.9 million as reported. The company attributed the decline primarily to the respiratory season. Source
LEX platform acquired in April: The LEX Diagnostics acquisition was completed in April. The company described the platform as an ultra-fast molecular system for point-of-care testing. Source
Adjusted EBITDA margin fell to 17.5%: Adjusted EBITDA margin was 17.5%, against 23.1% in the prior-year quarter. Source
China pricing guidelines still draft: Guidance includes expected 2026 impact from the current draft of China NHSA IVD pricing guidelines. Management said the full impact cannot yet be assessed. Source
Operating cash flow was negative: Cash used for operating activities was $33.0 million, against $65.6 million provided a year earlier. Cash and cash equivalents were $140.4 million, against $169.8 million at year-end. Source
Guidance ranges updated after Q1: Management said guidance was updated after first-quarter performance and current China market dynamics, with each guidance line now lower. Source

“Importantly, we believe the underlying business remains strong and we are well positioned to deliver on our objectives to expand our adjusted EBITDA margin and improve cash flow in 2026.”
Brian J. Blaser, President and Chief Executive Officer of QuidelOrtho

Guidance

Area	Period	Figure	Against last quarter
Total revenues (reported) Source	full-year 2026	$2.70 - $2.75 billion	Lowered from $2.7 - $2.9 billion
Adjusted EBITDA Source	full-year 2026	$615 - $630 million	Lowered from $630 - $670 million
Adjusted EBITDA margin Source	full-year 2026	23%	Lowered from 23.3%
Adjusted diluted earnings per share Source	full-year 2026	$1.80 - $2.00	Lowered from $2.00 - $2.42
Free cash flow Source	full-year 2026	$100 - $120 million	Lowered from $120 - $160 million

What changed from last quarter

Guidance lowered: Full-year 2026 guidance ranges were updated after first-quarter performance and China market dynamics. Each guidance line in the release is lower than the February 11 figure. Source
New: The company completed its acquisition of LEX Diagnostics in April. The April 15 release had described the deal as proposed. Source
Ended: The company terminated its joint business arrangement with Grifols, which the release links in part to a decrease in revenue. Source
New: The company reported the U.S. launch of its High-Sensitivity Troponin assay. The April 15 release did not mention this launch. Source

Results and growth drivers

Total revenue fell 10.5%: Total revenue was $619.8 million, down 10.5% from $692.8 million, or 12.6% in constant currency. Management tied the quarter to the respiratory season and to business disruption in China and the Middle East. Source
GAAP loss and adjusted EBITDA: GAAP net loss was $91.8 million and GAAP operating loss was $31.8 million. Adjusted EBITDA was $108.7 million, compared with $159.8 million a year earlier. Source
Per-share loss, GAAP and adjusted: GAAP diluted loss per share was $1.35. Adjusted diluted loss per share was $0.04, compared with adjusted diluted earnings of $0.74 a year earlier. Source

Segments and regions

Point of Care fell on respiratory season: Point of Care revenue was $112.8 million, down 34.0% from $170.9 million as reported. The company attributed the decline primarily to the respiratory season. Source
Labs fell on China distributor sales: Labs revenue was $353.1 million, down 5.3% as reported and 7.6% in constant currency. Management said the main driver was slower China distributor sales, which it believes relate to pending NHSA pricing changes. Source
Immunohematology grew 7.6%: Immunohematology revenue was $138.3 million, up 7.6% as reported and 3.4% in constant currency. Growth was driven by North America, China and JPAC. Source
Donor Screening revenue fell: Donor Screening revenue was $7.8 million, down 39.1% from $12.8 million in the prior-year quarter. Source

“We believe these innovations enhance our portfolio and position us to drive sustainable, long-term growth,”
Brian J. Blaser, President and Chief Executive Officer of QuidelOrtho

Products, launches and LEX

Troponin assay launched in U.S.: Management said the company advanced its key strategic priorities, including the U.S. launch of its High-Sensitivity Troponin assay. Source
VITROS 450 rolling out abroad: Management said the VITROS 450 platform rollout is under way in select international markets. Source
LEX platform acquired in April: The LEX Diagnostics acquisition was completed in April. The company described the platform as an ultra-fast molecular system for point-of-care testing. Source

Costs and operating expenses

Cost of sales and SG&A rose: Cost of sales, excluding amortization of intangibles, was $356.0 million, against $349.5 million. Selling, marketing and administrative expense was $199.3 million, against $187.0 million. Source
R&D and restructuring costs fell: Research and development expense was $44.9 million, against $53.2 million. Restructuring, integration and other charges were $4.4 million, against $16.1 million. Source
Compensation and cloud costs excluded: Adjusted results excluded $5.5 million of employee compensation charges and $8.0 million of amortization of deferred cloud computing implementation costs. Source

“Despite macroeconomic challenges and a softer first quarter respiratory season, QuidelOrtho is taking decisive cost actions to drive full-year 2026 performance,”
Brian J. Blaser, President and Chief Executive Officer

Margins, pricing and interest

Adjusted EBITDA margin fell to 17.5%: Adjusted EBITDA margin was 17.5%, against 23.1% in the prior-year quarter. Source
China pricing guidelines still draft: Guidance includes expected 2026 impact from the current draft of China NHSA IVD pricing guidelines. Management said the full impact cannot yet be assessed. Source
Interest expense rose to $51.1 million: Interest expense, net was $51.1 million, against $40.0 million a year earlier. The provision for income taxes was $12.3 million, against $3.9 million. Source

Cash flow and balance sheet

Operating cash flow was negative: Cash used for operating activities was $33.0 million, against $65.6 million provided a year earlier. Cash and cash equivalents were $140.4 million, against $169.8 million at year-end. Source
Inventories rose, receivables fell: Inventories were $611.5 million, up from $577.6 million at year-end. Accounts receivable, net was $359.9 million, down from $417.0 million. Source
Current borrowings rose: Current portion of borrowings was $228.2 million, against $178.3 million at year-end. Long-term borrowings were $2,459.8 million, against $2,471.9 million. Source

Strategy and guidance context

Grifols joint business arrangement ended: Revenue was reduced in part by the company's termination of its joint business arrangement with Grifols. Source
Priorities on operations, margin, cash: Management listed operational execution, margin expansion, cash flow improvement and the innovation pipeline as priorities.
Guidance ranges updated after Q1: Management said guidance was updated after first-quarter performance and current China market dynamics, with each guidance line now lower. Source

Coming up, as management said on 5 May 2026

Assumption list in presentation: The full list of assumptions behind the 2026 guidance is on page 6 of the first quarter 2026 presentation on the investor relations page. Source
China pricing rules pending: Management said the China impact cannot be fully assessed until final NHSA guidelines and implementation timelines are confirmed. Source

Figures management reported

Figure	Reported
Point of Care revenue Source	$112.8 million, down 34.0% as reported
Labs revenue Source	$353.1 million, down 5.3% as reported
Immunohematology revenue Source	$138.3 million, up 7.6% as reported
Donor Screening revenue Source	$7.8 million, down 39.1%
Molecular Diagnostics revenue Source	$7.8 million, up 2.6% as reported
Research and development expense Source	$44.9 million, against $53.2 million
High-Sensitivity Troponin assay Source	U.S. launch
VITROS 450 platform Source	rollout in select international markets
LEX Diagnostics acquisition Source	completed in April

Risks management discussed

Regulatory: Pending China NHSA pricing changes are cited as a driver of slower China distributor sales, and the final guidelines are not yet confirmed. Source
External: Guidance does not assume a significant or prolonged effect from the Middle East conflict, which the company said disrupted business in the quarter. Source
Demand: Management said the earlier guidance ranges were broad to reflect respiratory season variability and other factors.
Financial: Management said it cannot reliably predict impairment charges, which may have a material effect on future GAAP results. Source

Earlier plans management reported on

Not stated: The April 15 release said the low end of the February 2026 guidance remained achievable. The May 5 release lowered the ranges.
Met: Management said first-quarter results were in line with the preliminary revenue announced on April 15. Source
Not stated: The April 15 release said the company continued to expect positive full-year 2026 free cash flow.
Not stated: The company had said in February that free cash flow would be negative for the first half of 2026.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

QuidelOrtho Reports First Quarter 2026 Financial Results

― LEX Diagnostics Acquisition Expected to Accelerate Growth in Point-of-Care Molecular Diagnostics ―

― Key Product Launches in U.S. and International Markets Expected to Drive Future Growth ―

― Company Updates Full-Year 2026 Financial Guidance ―

SAN DIEGO, CA May 5, 2026 - QuidelOrtho Corporation (Nasdaq: QDEL) (the “Company” or “QuidelOrtho”), a global leader of innovative in vitro diagnostics, today announced financial results for the first quarter ended March 29, 2026.

Key First Quarter 2026 Results:

(all comparisons are to the prior year period)

Total revenue was $620 million, as reported
Point of Care revenue of $113 million declined by 34% as reported and 35% in constant currency, primarily due to a significantly weaker respiratory season compared to the first quarter of 2025.
Labs revenue of $353 million declined by 5% as reported and 8% in constant currency, primarily due to slower distributor sales in China that the Company believes is related to pending changes to the China National Health Security Administration (“NHSA”) In Vitro Diagnostics (“IVD”) pricing guidelines, business disruption related to the Middle East conflict, and a decrease in revenue related in part to the Company’s termination of its joint business arrangement with Grifols.
Immunohematology revenue of $138 million grew 8% as reported and 3% in constant currency, primarily driven by growth in North America, China and JPAC.
GAAP net loss was $92 million; GAAP operating loss was $32 million; adjusted EBITDA was $109 million.
GAAP diluted loss per share was $1.35; adjusted diluted loss per share was $0.04.

“Our first quarter results were in line with our preliminary revenue announcement and reflected a significantly weaker respiratory season and business disruption in China and the Middle East,” said Brian J. Blaser, President and Chief Executive Officer of QuidelOrtho. “Importantly, we believe the underlying business remains strong and we are well positioned to deliver on our objectives to expand our adjusted EBITDA margin and improve cash flow in 2026.”

“We completed our acquisition of LEX Diagnostics in April, adding an ultra-fast molecular diagnostics platform for point-of-care testing. We also advanced our key strategic priorities, including the U.S. launch of our High-Sensitivity Troponin assay and the rollout of the VITROS 450 platform in select international markets. We believe these innovations enhance our portfolio and position us to drive sustainable, long-term growth,” Blaser continued.

Full-year 2026 Financial Guidance

The Company provided its initial financial guidance for full-year 2026 on February 11, 2026. On April 15, 2026, the Company announced preliminary revenue for the first quarter 2026 and indicated that the low end of its full-year 2026 financial guidance ranges remained achievable. Considering first-quarter performance and current market dynamics in China, the Company has updated its previously provided financial guidance. This guidance includes expected 2026 impact from the current draft of the China NHSA IVD pricing guidelines. The Company cannot fully assess the impact until the final NHSA guidelines and implementation timelines are confirmed. In addition, this guidance does not assume a significant, prolonged impact related to the Middle East conflict.

Full-year 2026 Financial Guidance	Updated (as of 5/5/26)	Previous (as of 2/11/26)
Total revenues (reported)	$2.70 - $2.75 billion	$2.7 - $2.9 billion
Adjusted EBITDA	$615 - $630 million	$630 - $670 million
Adjusted EBITDA margin	23%	23.3%
Adjusted diluted earnings per share	$1.80 - $2.00	$2.00 - $2.42
Free cash flow	$100 - $120 million	$120 - $160 million

Please see page 6 of the First Quarter 2026 Financial Results presentation on the “Investor Relations” page of the Company’s website for the full list of assumptions on which the Company’s current 2026 financial guidance is based.

A reconciliation of forward-looking non-GAAP measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share and free cash flow, to the most directly comparable GAAP measures is not provided because comparable GAAP measures for such measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. We are not, without unreasonable effort, able to reliably predict the impact of impairment charges and related tax benefits and other non-recurring adjustments. These items are uncertain, depend on various factors and may have a material impact on our future GAAP results. In addition, the Company believes any such reconciliation would imply a degree of precision and certainty that could be confusing to investors. See "Forward-Looking Statements" and "Non-GAAP Financial Measures."

Conference Call Information

Following the release of financial results, QuidelOrtho will hold a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results. Interested parties can access the call from the “Events & Presentations” section of the “Investor Relations” page of the Company’s website at https://ir.quidelortho.com. Presentation materials will also be posted to the “Events & Presentations” section of the “Investor Relations” page of the Company’s website at the time of the call.

A replay of the conference call will be available shortly after the event on the “Investor Relations” page of the Company’s website under the “Events & Presentations” section.

QuidelOrtho is dedicated to advancing diagnostics to power a healthier future. For more information, please visit quidelortho.com and follow QuidelOrtho on LinkedIn, Facebook and X.

About QuidelOrtho Corporation

With expertise spanning clinical chemistry, immunoassay, immunohematology and molecular testing, QuidelOrtho Corporation (Nasdaq: QDEL) is a leading global provider of diagnostic solutions, dedicated to advancing fast, accurate and reliable results that help improve patient outcomes - from the point of care to hospital, lab to clinic. Building on a legacy of innovation, QuidelOrtho works with healthcare providers to advance diagnostics that connect insights with solutions, defining a clearer path for informed decisions and better care.

Forward-Looking Statements

Forward-looking statements notice

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are any statement contained herein that is not strictly historical, including, but not limited to, QuidelOrtho’s commercial and other strategic goals, financial guidance for 2026 and related assumptions and other future financial condition and operating results, including growth expectations and expected results of operations, financial position or cost-savings and operational improvement initiatives, and other future plans, objectives, strategies, expectations and intentions. Without limiting the foregoing, the words “may,” “will,” “could,” “would,” “should,” “might,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “goal,” “project,” “strategy,” “future,” “continue,” “aim,” “strive,” “seek” or similar words, expressions or the negative of such terms or other comparable terminology are intended to identify forward-looking statements. Such statements are based on the beliefs and expectations of QuidelOrtho’s management as of the date of this press release and are subject to significant known and unknown risks and uncertainties. Actual results or outcomes may differ significantly from those set forth or implied in the forward-looking statements.

Forward-looking statements notice

The following factors, among others, could cause actual results or outcomes to differ from those set forth or implied in the forward-looking statements: fluctuations in demand for QuidelOrtho’s non-respiratory and respiratory products; supply chain, production, logistics, distribution and labor disruptions and challenges; inability to successfully identify, consummate or realize the anticipated benefits of strategic transactions, strategic restructurings, divestitures, spin-offs or discontinuances of certain business operations, or debt financings, on the anticipated timelines, or at all; delays in the development of or failures or delays in the receipt of approvals for new or enhanced products; failure of new products and services to be commercially viable or accepted; changes in reimbursement rates for our products, including reimbursement rate reductions proposed by the China NHSA; disruptions and challenges related to the ongoing conflicts in the Middle East; and other macroeconomic, geopolitical, market, business, competitive and/or regulatory factors affecting the business of QuidelOrtho generally, including those arising from the effects of announced or future or amended tariffs, trade policies, investigations, global trade relations and other tariff-related developments, as well as those discussed in QuidelOrtho’s Annual Report on Form 10-K for the fiscal year ended December 28, 2025 and subsequent reports filed with the Securities and Exchange Commission (the “Commission”), including under Part I, Item 1A, “Risk Factors” of the Form 10-K. You should not rely on forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. All forward-looking statements are based on information currently available to QuidelOrtho and speak only as of the date of this press release. QuidelOrtho undertakes no obligation to update any of the forward-looking information or time-sensitive information included in this press release, whether as a result of new information, future events, changed expectations or otherwise, except as required by law.

Non-GAAP Financial Measures

This press release contains financial measures that are considered non-GAAP financial measures under applicable rules and regulations of the Commission, including but not limited to “constant currency Point of Care revenue changes,” “constant currency Labs revenue changes,” “constant currency Immunohematology revenue changes,” “adjusted EBITDA,” “adjusted EBITDA margin,” “adjusted diluted loss per share,” “free cash flow” and other non-GAAP financial measures included in the reconciliation tables accompanying this press release. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures eliminate impacts of certain non-cash, unusual or other items that the Company does not consider indicative of its ongoing operating performance, and the Company generally uses these non-GAAP financial measures to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results and comparison to competitors’ operating results. The Company’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company’s business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and reports filed with the Commission in their entirety. Reconciliations of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this press release.

QuidelOrtho

Consolidated Statements of Loss

(In millions, except per share data)

	Three Months Ended
	March 29, 2026	March 30, 2025
Total revenues	$619.8	$692.8
Cost of sales, excluding amortization of intangibles	356.0	349.5
Selling, marketing and administrative	199.3	187.0
Research and development	44.9	53.2
Amortization of intangible assets	46.8	48.0
Restructuring, integration and other charges	4.4	16.1
Other operating expenses	0.2	6.4
Operating (loss) income	(31.8)	32.6
Interest expense, net	51.1	40.0
Other (income) expense, net	(3.4)	1.4
Loss before income taxes	(79.5)	(8.8)
Provision for income taxes	12.3	3.9
Net loss	$(91.8)	$(12.7)
Basic loss per share	$(1.35)	$(0.19)
Diluted loss per share	$(1.35)	$(0.19)
Weighted-average shares outstanding - basic	68.2	67.5
Weighted-average shares outstanding - diluted	68.2	67.5

QuidelOrtho

Condensed Consolidated Balance Sheets

(In millions)

	March 29, 2026	December 28, 2025
ASSETS
Current assets:
Cash and cash equivalents	$140.4	$169.8
Accounts receivable, net	359.9	417.0
Inventories	611.5	577.6
Prepaid expenses and other current assets	232.8	250.5
Assets held for sale	32.4	32.4
Total current assets	1,377.0	1,447.3
Property, plant and equipment, net	1,339.3	1,358.3
Right-of-use assets	158.0	155.5
Intangible assets, net	2,520.2	2,563.8
Other assets	234.2	244.4
Total assets	$5,628.7	$5,769.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$243.5	$279.4
Accrued payroll and related expenses	135.4	120.3
Income tax payable	12.7	11.5
Current portion of borrowings	228.2	178.3
Other current liabilities	342.6	376.6
Total current liabilities	962.4	966.1
Operating lease liabilities	155.4	154.4
Long-term borrowings	2,459.8	2,471.9
Deferred tax liabilities	87.3	90.0
Other liabilities	112.4	166.4
Total liabilities	3,777.3	3,848.8
Total stockholders’ equity	1,851.4	1,920.5
Total liabilities and stockholders’ equity	$5,628.7	$5,769.3

QuidelOrtho

Condensed Consolidated Statements of Cash Flows

(In millions)

	Three Months Ended
	March 29, 2026	March 30, 2025
Cash (used for) provided by operating activities	$(33.0)	$65.6
Cash used for investing activities	(34.0)	(56.2)
Cash provided by financing activities	37.6	17.6
Effect of exchange rates on cash	-	1.7
Net (decrease) increase in cash, cash equivalents and restricted cash	(29.4)	28.7
Cash, cash equivalents and restricted cash at beginning of period	169.8	98.5
Cash, cash equivalents and restricted cash at end of period	$140.4	$127.2
Reconciliation to amounts within the consolidated balance sheets:
Cash and cash equivalents	$140.4	$127.1
Restricted cash in Other assets	-	0.1
Cash, cash equivalents and restricted cash	$140.4	$127.2

QuidelOrtho

Reconciliation of Non-GAAP Financial Information - Adjusted Net (Loss) Income

(In millions, except per share data; unaudited)

	Three Months Ended
	March 29, 2026	Diluted EPS	March 30, 2025	Diluted EPS
Net loss	$(91.8)	$(1.35)	$(12.7)	$(0.19)
Adjustments:
Amortization of intangibles	46.8		48.0
Restructuring, integration and other charges	4.4		16.1
Amortization of deferred cloud computing implementation costs	8.0		4.3
Employee compensation charges	5.5		-
Incremental depreciation on PP&E fair value adjustment	3.3		5.2
Accelerated depreciation	2.0		-
Loss (gain) on investments	0.9		(0.3)
EU medical device regulation transition costs	0.7		0.2
Other adjustments	4.7		1.2
Income tax impact of adjustments	13.1		(11.8)
Adjusted net (loss) income	$(2.4)	$(0.04)	$50.2	$0.74
Weighted-average shares outstanding - diluted		68.2		67.9

QuidelOrtho

Reconciliation of Non-GAAP Financial Information - Adjusted EBITDA

(In millions, unaudited)

	Three Months Ended
	March 29, 2026	March 30, 2025
Net loss	$(91.8)	$(12.7)
Depreciation and amortization	112.9	107.1
Interest expense, net	51.1	40.0
Provision for income taxes	12.3	3.9
Restructuring, integration and other charges	4.4	16.1
Amortization of deferred cloud computing implementation costs	8.0	4.3
Employee compensation charges	5.5	-
Loss (gain) on investments	0.9	(0.3)
EU medical device regulation transition costs	0.7	0.2
Other adjustments	4.7	1.2
Adjusted EBITDA	$108.7	$159.8
Total revenues	$619.8	$692.8
Adjusted EBITDA margin	17.5%	23.1%

QuidelOrtho

Reconciliation of Non-GAAP Financial Information - Revenues by Business Unit

(In millions, unaudited)

	Three Months Ended
	March 29, 2026	March 30, 2025	% Change	Currency Impact	Constant Currency
Labs	$353.1	$373.0	(5.3)%	2.3%	(7.6)%
Immunohematology	138.3	128.5	7.6%	4.2%	3.4%
Donor Screening	7.8	12.8	(39.1)%	0.4%	(39.5)%
Point of Care	112.8	170.9	(34.0)%	0.6%	(34.6)%
Molecular Diagnostics	7.8	7.6	2.6%	4.4%	(1.8)%
Total revenues	$619.8	$692.8	(10.5)%	2.1%	(12.6)%

(a) The term “constant currency” means we have translated local currency revenues for all reporting periods to U.S. dollars using currency exchange rates held constant for each period. This additional non-GAAP financial information is not meant to be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP.

Contacts
Juliet Cunningham
Vice President, Investor Relations
IR@QuidelOrtho.com
Stephanie Kleewein
Senior Corporate Communications and PR Manager media@QuidelOrtho.com