Hologic Reports Q1 Fiscal 2025 Results with $1.02 Billion Revenue and $201 Million Net Income

Hologic, Inc. reported its financial results for the first quarter of fiscal 2025, ending December 28, 2024, revealing total revenues of $1.02 billion, a slight increase from $1.01 billion in the same period last year. The company's net income for the quarter was $201 million, down from $246.5 million a year earlier, resulting in a diluted earnings per share of $0.87 compared to $1.03 in the prior year. The decrease in profitability was attributed to a decline in product revenues, particularly in the Breast Health and Skeletal Health segments, which were partially offset by growth in Diagnostics and GYN Surgical revenues.

In terms of segment performance, the Diagnostics segment saw a revenue increase of 5.1% to $470.6 million, driven by higher sales of molecular diagnostic assays. Conversely, the Breast Health segment experienced a revenue decline of 2.3% to $369.1 million, primarily due to decreased sales of digital mammography systems. The GYN Surgical segment reported a modest revenue increase of 2.5% to $166.3 million, while the Skeletal Health segment faced a significant drop of 37.8% to $15.8 million, largely due to a temporary stop-ship of its Horizon DXA systems.

Hologic's operational metrics showed a total cash and cash equivalents balance of $1.78 billion as of December 28, 2024, down from $2.16 billion at the end of the previous quarter. The company also reported a decrease in its employee headcount, reflecting ongoing restructuring efforts, particularly in its Mobidiag business, which included the closure of facilities in Finland and France. The company recorded restructuring charges of $3.9 million during the quarter, down from $22.5 million in the same period last year.

Strategically, Hologic completed the acquisition of Endomagnetics Ltd. in July 2024 for approximately $313.9 million, which is expected to enhance its Breast Health portfolio. Additionally, the company announced the acquisition of Gynesonics, Inc. for about $350 million, aimed at expanding its GYN Surgical segment. Hologic's management expressed confidence in the company's ability to navigate current market conditions and anticipated continued growth in its Diagnostics segment, supported by a strong pipeline of products and services.

Looking ahead, Hologic expects to recognize approximately $863.7 million in revenue from remaining performance obligations, primarily related to support and maintenance contracts. The company remains focused on leveraging its acquisitions and expanding its product offerings to drive future growth, while also managing its operational costs and improving efficiency across its business segments.