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Sep 27
Masimo Q3 2025 Earnings Report
Masimo reported its financial results for the third quarter ended September 27, 2025, showing continued positive momentum in its core healthcare business.
Key Takeaways
Masimo delivered a strong third quarter in 2025, with GAAP revenue reaching $371.5 million, an 8.2% increase. The company also achieved a GAAP net income per diluted share of $0.99 and a non-GAAP net income per diluted share of $1.32, representing 38% growth year-over-year. This performance was driven by robust sales growth and successful operating efficiency initiatives, alongside strategic moves like the sale of Sound United and an expanded partnership with Philips.
GAAP revenue for Q3 2025 was $371.5 million, an 8.2% increase compared to the prior year.
Non-GAAP net income per diluted share grew by 38% to $1.32.
Operating margin improved by 450 basis points due to sales growth and efficiency initiatives.
Masimo completed the sale of Sound United and expanded its strategic partnership with Philips during the quarter.
Masimo
Masimo
Forward Guidance
Masimo updated its full-year 2025 guidance for continuing operations, projecting non-GAAP revenue between $1,510 million and $1,530 million, representing 8.5% to 10.0% growth on a constant currency basis. The company also provided updated guidance for non-GAAP operating profit and non-GAAP earnings per diluted share, both excluding and including the impact of new tariffs.
Positive Outlook
- Projected non-GAAP revenue growth of 8.5% to 10.0% on a constant currency basis for full-year 2025.
- Non-GAAP operating profit guidance of $428 million to $440 million (excluding tariffs).
- Non-GAAP operating margin guidance of 28.4% to 28.8% (excluding tariffs).
- Non-GAAP earnings per diluted share guidance of $5.62 to $5.79 (excluding tariffs).
- Guidance includes the financial impact of one additional calendar week, which occurs every five or six years.
Challenges Ahead
- New tariffs are expected to impact financial results, leading to lower operating profit and EPS.
- Non-GAAP operating profit guidance of $412 million to $424 million (including tariffs).
- Non-GAAP operating margin guidance of 27.3% to 27.7% (including tariffs).
- Non-GAAP earnings per diluted share guidance of $5.40 to $5.55 (including tariffs).
- The implementation of tariffs remains a dynamic and uncertain situation that could cause actual results to differ materially from projections.