Bio-Rad Q1 2025 Earnings Report
Key Takeaways
Bio-Rad reported a challenging first quarter for 2025 with a decrease in total net sales compared to the prior year. Despite the revenue decline, the company delivered solid margins through focused execution and careful expense management. The Life Science segment saw reduced sales primarily due to challenges in the academic research market, while the Clinical Diagnostics segment experienced a slight decrease mainly from lower diabetes testing reimbursements in China, offset by quality control product demand. Net income was significantly lower year-over-year due to a smaller gain from the change in fair market value of its Sartorius AG investment in Q1 2025 compared to Q1 2024.
Total net sales for Q1 2025 decreased by 4.2% year-over-year to $585.4 million.
GAAP net income was $64.0 million, or $2.29 per diluted share, down significantly from $383.9 million in Q1 2024, largely due to investment valuation changes.
Non-GAAP diluted income per share was $2.54 in Q1 2025, an increase from $2.30 in Q1 2024.
The company updated its full-year 2025 guidance, moderating expected non-GAAP currency-neutral revenue growth and reducing the estimated non-GAAP operating margin range.
Bio-Rad
Bio-Rad
Bio-Rad Revenue by Segment
Forward Guidance
Bio-Rad updated its full-year 2025 financial outlook, lowering expectations for non-GAAP currency-neutral revenue growth and non-GAAP operating margin.
Positive Outlook
- Management remains committed to advancing growth initiatives.
- Management remains committed to advancing margin expansion initiatives.
- Continued focus on focused execution.
- Continued focus on careful expense management.
- Company believes disclosing non-GAAP measures provides useful supplemental data.
Challenges Ahead
- Moderating full-year 2025 outlook due to current market uncertainty.
- Updated non-GAAP, currency-neutral revenue guidance lowered to approximately a 1.0% decline to 1.5% growth (vs. prior 1.5% to 3.5%).
- Updated estimated non-GAAP operating margin lowered to approximately 10.0% to 12.0% (vs. prior 13.0% to 13.5%).
- GAAP results include volatile gains/losses from Sartorius AG investment valuation changes.
- Ongoing challenges in the academic research market, particularly in the Americas, expected to continue impacting Life Science segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income