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Mar 31, 2025
Varex Imaging Q2 2025 Earnings Report
Varex Imaging Corporation announced its unaudited financial results for the second quarter of fiscal year 2025, reporting an increase in revenues and non-GAAP EPS compared to the same period last year.
Key Takeaways
Varex Imaging Corporation reported strong demand in Q2 FY25, leading to year-over-year sales growth in both segments. The company achieved margin expansion, profitability, and cash generation, with revenues reaching $213 million and non-GAAP EPS increasing to $0.26.
Revenues increased by 3% year-over-year to $213 million.
Non-GAAP gross margin improved to 36% from 33% in the prior year.
Non-GAAP diluted EPS rose to $0.26, up from $0.16 in Q2 FY24.
Cash flow from operations was $17 million for the quarter.
Revenue by Segment
Forward Guidance
For the third quarter of fiscal year 2025, Varex expects revenues between $180 million and $200 million, with non-GAAP net earnings per diluted share projected to be between -$0.05 and $0.10.
Positive Outlook
- Continued focus on repaying outstanding principal of Convertible Notes due June 2025, which will reduce overall debt burden and simplify capital structure.
- Commitment to improving sales mix and productivity gains to drive margin expansion and profitability.
Challenges Ahead
- High tariffs imposed by China on U.S. products have caused some China-based customers to pause purchases.
- Reduced outlook for the short term due to the impact of tariffs.
- Sales in China are expected to be approximately $10 million, indicating a significant impact from the tariffs.
- Non-GAAP net earnings per diluted share guidance includes a potential loss.
- Inability to provide a meaningful or accurate GAAP forecast for net earnings per diluted share due to uncertainties and unpredictability of reconciling items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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