Masimo Corporation Reports 8.2% Revenue Growth to $371.5 Million in Q3 2025

Masimo Corporation reported its financial results for the third quarter of 2025, revealing a total revenue of $371.5 million, an increase of 8.2% from $343.3 million in the same period last year. The growth was primarily driven by higher capital equipment sales and other revenue streams, with a notable contribution of approximately $1.9 million from favorable foreign exchange rate movements. The company's gross profit for the quarter was $230.6 million, representing a gross margin of 62.1%, up from 61.8% in the prior year, attributed to operational efficiencies and product cost reductions despite facing $5.3 million in incremental tariffs.

In terms of profitability, Masimo reported an operating income of $83.6 million for the quarter, significantly higher than the $38.2 million recorded in the same quarter of 2024. However, the company experienced a net loss of $100.4 million, compared to a net income of $9.8 million in the prior year, largely due to a loss from discontinued operations amounting to $154.1 million. This loss was primarily related to the sale of its non-healthcare business, Sound United, which was completed on September 23, 2025, for approximately $350 million.

Operationally, Masimo's healthcare segment continues to show resilience, with revenues from direct and distribution sales channels increasing by 6.2% to $330.1 million. The company shipped approximately 66,000 noninvasive technology boards and instruments during the quarter, up from 60,500 in the previous year. The total employee headcount as of September 27, 2025, was not disclosed, but the company has been actively managing its workforce in response to market conditions and operational needs.

Strategically, Masimo has focused on enhancing its product offerings and expanding its market presence. The company has been investing in research and development, with expenses decreasing to $30.5 million from $37.3 million year-over-year, reflecting a shift in focus towards more efficient project management. The company also reported a significant reduction in selling, general, and administrative expenses, which fell to $116.4 million from $136.6 million, primarily due to lower legal and professional fees.

Looking ahead, Masimo remains optimistic about its long-term growth prospects despite the challenges posed by economic conditions, including inflation and supply chain volatility. The company anticipates that its existing cash reserves, along with available borrowing capacity under its credit facility, will be sufficient to support ongoing operations and capital expenditures for the next 12 months. The management is also closely monitoring the impacts of recent tax law changes and geopolitical developments on its business operations.