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Mar 29
Charles River Labs Q1 2025 Earnings Report
Charles River Laboratories reported its Q1 2025 results with decreased revenue and GAAP earnings, while improving non-GAAP margins and increasing its full-year guidance.
Key Takeaways
Charles River Laboratories posted Q1 2025 revenue of $984.2M, down 2.7% YoY, with a GAAP EPS of $0.50 and non-GAAP EPS of $2.34. Despite lower revenue across all segments, non-GAAP operating margins improved due to cost-saving measures. The company raised its FY25 guidance slightly, citing improved DSA bookings.
Q1 2025 revenue declined 2.7% YoY to $984.2 million, with organic revenue down 1.8%
GAAP EPS dropped to $0.50 from $1.30; non-GAAP EPS rose to $2.34 from $2.27
Net income attributable to shareholders was $25.5 million, down from $67.3 million a year ago
2025 financial guidance was raised, supported by improved DSA bookings
Charles River Labs
Charles River Labs
Charles River Labs Revenue by Segment
Revenue by Segment
Research Models and Services Revenue
CapyFin.comDiscovery and Safety Assessment Revenue
CapyFin.comManufacturing Solutions Revenue
CapyFin.com Forward Guidance
Charles River increased its 2025 financial guidance due to strong DSA bookings and expects moderate improvement in revenue and non-GAAP EPS.
Positive Outlook
- Improved DSA net bookings during Q1 expected to contribute incremental revenue
- Raised 2025 revenue guidance to a range of -5.5% to -3.5% reported
- Raised 2025 organic revenue guidance to -4.5% to -2.5%
- Raised 2025 non-GAAP EPS guidance to $9.30 – $9.80
- Favorable tax rate, interest expense, and share count impacting non-GAAP earnings positively
Challenges Ahead
- Lower revenue expected across all segments year-over-year
- Continued uncertainty in the broader market
- Higher amortization expense due to accelerated amortization of CDMO client relationships
- Third-party legal costs impacting margins in DSA segment
- Foreign currency expected to unfavorably impact reported revenue by ~1.0%