OSI Systems Reports 9.6% Revenue Growth to $444.4 Million in Q3 2025

OSI Systems, Inc. reported a notable increase in financial performance for the third quarter and nine months ended March 31, 2025, as detailed in its latest 10-Q filing. The company achieved total net revenues of $444.4 million for the quarter, reflecting a 9.6% increase from $405.4 million in the same period last year. For the nine-month period, revenues rose to $1.21 billion, up 14.2% from $1.06 billion. The growth was primarily driven by the Security division, which saw revenues increase by 10.1% to $314.9 million in the third quarter, and by 18.4% to $829.2 million year-to-date, largely due to increased product and service sales.

The company's profitability also improved, with net income for the third quarter rising to $41.1 million, or $2.45 per diluted share, compared to $34.0 million, or $1.95 per diluted share, in the prior year. For the nine-month period, net income increased to $96.9 million, or $5.67 per diluted share, from $83.5 million, or $4.82 per diluted share, in the previous year. This growth in profitability was attributed to higher gross profit, which increased to $150.3 million for the quarter, up from $136.1 million, and to $418.9 million for the nine months, compared to $376.1 million in the prior year.

Strategically, OSI Systems made significant moves, including the acquisition of a privately held provider of military and surveillance solutions for approximately $76 million, which is expected to enhance its product offerings and customer base. The company also reported an increase in its employee headcount, reflecting its expansion efforts. As of March 31, 2025, OSI Systems had 16,788,617 shares of common stock outstanding, down from 17,055,497 shares a year earlier, following a stock repurchase program that saw the company buy back 531,314 shares for about $80 million.

Operationally, the company reported a strong increase in customer engagement metrics, particularly in the Security division, which accounted for 69% of total revenues for the nine months ended March 31, 2025. The Optoelectronics and Manufacturing division also contributed significantly, with revenues of $253.3 million, while the Healthcare division reported $125.7 million in revenues. The company noted that its cash and cash equivalents stood at $95.8 million, with a substantial portion held by foreign subsidiaries, indicating a solid liquidity position.

Looking ahead, OSI Systems expressed optimism about its growth trajectory, citing a strong pipeline of contracts and ongoing demand for its products and services across various sectors. However, the company acknowledged potential risks related to global economic conditions, supply chain disruptions, and geopolitical tensions that could impact its operations. The management remains focused on leveraging its recent acquisitions and expanding its market presence to drive future growth.