Masimo Corporation Reports 9.4% Revenue Growth, Announces Merger with Danaher

Masimo Corporation's Form 10-K filing for fiscal year 2025 reveals a company in transition, marked by strategic divestitures and a pending merger. The aggregate market value of voting stock held by non-affiliates was approximately $3.9 billion as of June 28, 2025, with 52,192,538 shares of common stock outstanding as of January 31, 2026. The company's healthcare business, which develops and markets noninvasive patient monitoring technologies, hospital automation solutions, and remote monitoring devices, remains the core focus.

The company reported total revenue of $1.53 billion for the year ended January 3, 2026, an increase of 9.4% compared to $1.40 billion for the year ended December 28, 2024. This growth was primarily driven by increased sales volumes in consumable products and an additional selling week due to the company's 52/53 fiscal calendar. Gross profit increased by 19.0% to $945.2 million, with gross profit margin improving to 61.9% from 56.9% in the previous year, attributed to improved manufacturing efficiencies and a beneficial product mix.

Operating expenses decreased by 7.8% to $635.2 million, mainly due to lower legal and professional fees, occupancy costs, and advertising expenses, partially offset by increased compensation costs. Research and development expenses also decreased by 30.6% to $126.4 million. The company reported net income from continuing operations of $207.7 million, a significant increase from $16.2 million in the prior year. However, a net loss from discontinued operations of $359.2 million resulted in an overall net loss of $151.5 million for the fiscal year.

A significant strategic development was the completion of the sale of Sound United, the company's non-healthcare consumer business, on September 23, 2025, to Harman International Industries for $350 million. Furthermore, on February 16, 2026, Masimo entered into a merger agreement with Danaher Corporation, with the expectation that the merger will close in the second half of 2026, pending stockholder and regulatory approvals. Upon completion of the merger, each share of Masimo common stock will be converted into the right to receive $180.00 in cash. The company's strategy focuses on innovation, empowering clinicians, and targeted growth in core markets, with a refocused innovation strategy centered around conventional pulse oximetry, the Masimo rainbow SET platform, and the Masimo Hospital Automation platform. The company's full-time employee count decreased from approximately 3,600 to 2,200, primarily due to the Sound United sale.