Labcorp Reports 5.3% Revenue Growth to $3.345 Billion in Q1 2025

Labcorp Holdings Inc. reported a revenue increase of 5.3% for the first quarter of 2025, reaching $3.345 billion compared to $3.177 billion in the same period of 2024. The growth was attributed to a 3.7% contribution from acquisitions, net of divestitures, and 2.1% from organic revenue, although this was partially offset by a 0.5% negative impact from foreign currency translation. The company's gross profit for the quarter was $948 million, up from $897 million a year earlier, while net earnings attributable to Labcorp decreased to $212.8 million, or $2.52 per diluted share, down from $228 million, or $2.69 per diluted share, in the prior year.

In terms of operational performance, Labcorp's Diagnostics Laboratories (Dx) segment generated revenues of $2.630 billion, a 6.0% increase from $2.480 billion in the previous year, driven by both acquisitions and organic growth. The Biopharma Laboratory Services (BLS) segment saw a more modest revenue increase of 1.5%, totaling $721 million. The total volume of requisitions increased by 3.0%, with acquisition volume contributing 2.1% and organic volume increasing by 0.9%. The company reported a decrease in operating income to $326 million from $321 million, reflecting higher selling, general, and administrative expenses, which rose to $546 million from $508 million.

Strategically, Labcorp made several acquisitions during the quarter, including a $53.5 million investment in various businesses and a 15% minority interest in SYNLAB for approximately $151.6 million, which closed in March 2025. Additionally, the company announced plans to acquire select assets from OPKO Health, focusing on oncology-related clinical testing services, with a purchase price of up to $225 million. These acquisitions are expected to enhance Labcorp's service offerings and market position.

On the operational front, Labcorp's cash and cash equivalents decreased significantly to $369.4 million from $1.519 billion at the end of 2024, primarily due to a $1 billion payment on senior notes. The company reported net cash provided by operating activities of $18.5 million, a turnaround from a cash usage of $29.8 million in the same quarter last year. The company also maintained compliance with all covenants under its credit facilities and expects to continue doing so over the next 12 months.

Looking ahead, Labcorp anticipates continued growth driven by its strategic acquisitions and organic revenue initiatives. The company remains focused on enhancing its operational efficiencies and expanding its market presence, particularly in the diagnostics and biopharma sectors. The management expressed confidence in the company's ability to navigate market challenges and capitalize on emerging opportunities in the healthcare landscape.