Hologic Reports Decline in Q2 Fiscal 2025 Revenue and Net Loss

Hologic, Inc. reported a decline in financial performance for the second quarter of fiscal 2025, with total revenues of $1.005 billion, a decrease of 1.5% from $1.018 billion in the same period last year. The company's net loss for the quarter was $17.4 million, translating to a loss of $0.08 per share, compared to a net income of $169.9 million, or $0.72 per share, in the prior year. For the first half of the fiscal year, revenues totaled $2.027 billion, slightly down from $2.031 billion, while net income was $183.6 million, down from $416.4 million in the previous year.

The decline in revenue was primarily driven by a significant drop in the Breast Health segment, which saw a 18.1% decrease in product revenues for the quarter, attributed to lower sales of digital mammography systems and related products. This was partially offset by increases in the Diagnostics and GYN Surgical segments, which reported revenue growth of 0.8% and 4.2%, respectively. The company also recorded substantial impairment charges of $204 million related to its Acessa, Bolder, Diagenode, and Mobidiag product lines, which significantly impacted operating income.

Strategically, Hologic completed the acquisition of Gynesonics, Inc. for $340.7 million in January 2025, aimed at enhancing its GYN Surgical portfolio. The acquisition is expected to contribute positively to future revenues, although it also resulted in a one-time charge related to the acceleration of unvested stock options. Additionally, the company has been actively repurchasing shares, with $973.1 million remaining under its current stock repurchase authorization of $1.5 billion.

Operationally, Hologic's cash and cash equivalents stood at $1.43 billion as of March 29, 2025, down from $2.16 billion at the end of the previous fiscal year. The company generated $358.7 million in cash from operating activities during the first half of the fiscal year, despite a decrease in cash due to significant investments in acquisitions and share repurchases. Looking ahead, Hologic anticipates continued challenges in the Breast Health segment but remains optimistic about growth opportunities in its Diagnostics and GYN Surgical segments, bolstered by recent acquisitions and an expanding product portfolio.