Masimo Corporation Reports Q1 2025 Financial Results with 9.5% Revenue Growth

Masimo Corporation reported its financial results for the first quarter of 2025, revealing a total revenue of $372.0 million, a 9.5% increase from $339.6 million in the same period last year. The growth was primarily driven by higher capital sales linked to a large tender contract renewal, although it faced a $4.1 million negative impact from foreign exchange rate fluctuations. The company's gross profit also rose to $234.0 million, representing a gross margin of 62.9%, up from 60.8% in the prior year, attributed to operational efficiencies and reduced product costs.

In terms of profitability, Masimo reported an operating income of $78.0 million, compared to $53.1 million in the previous year, reflecting a significant improvement in operational performance. However, the company experienced a net loss of $170.7 million, largely due to a $217.9 million loss from discontinued operations, which included substantial impairment charges related to its non-healthcare consumer audio business. This marked a stark contrast to the net income of $18.9 million reported in the same quarter of 2024.

Masimo's operational metrics showed a notable increase in customer engagement, with approximately 72,200 noninvasive technology boards and instruments shipped during the quarter, compared to 50,400 in the prior year. The company also reported a significant rise in revenue from its OEM channel, which increased by 41.3% to $40.7 million. The healthcare segment's revenue reached $371.0 million, up from $339.6 million, indicating strong demand for its patient monitoring technologies.

Strategically, Masimo has made significant organizational changes, including the appointment of Catherine Szyman as CEO effective February 12, 2025, following the termination of former CEO Joe Kiani. The company is also in the process of selling its non-healthcare business to HARMAN International for $350 million, a move expected to close by the end of 2025. Additionally, Masimo is addressing a cybersecurity incident that has temporarily affected its manufacturing capabilities and order fulfillment.

Looking ahead, Masimo remains optimistic about its long-term growth prospects despite current economic challenges, including inflation and supply chain volatility. The company anticipates that its existing cash reserves, along with available borrowing capacity under its credit facility, will adequately support its operational and capital needs over the next 12 months. However, it acknowledges the potential need for additional financing in the future to support its strategic initiatives.