QuidelOrtho Reports 4% Revenue Decline and $255.4 Million Net Loss in Q2 2025

QuidelOrtho Corporation reported a decline in financial performance for the second quarter of 2025, with total revenues of $613.9 million, down 4% from $637.0 million in the same period last year. For the first half of the fiscal year, revenues decreased by 3% to $1.306 billion compared to $1.348 billion in the prior year. The decrease was primarily attributed to a significant drop in COVID-19 related revenues, which fell to $32.9 million from $69.1 million year-over-year, alongside a 61% decline in the Donor Screening segment due to the planned wind-down of the U.S. donor screening portfolio. However, the Labs and Immunohematology segments saw growth, with revenues increasing by 4% in both categories.

The company reported a net loss of $255.4 million for the second quarter, compared to a loss of $147.7 million in the same quarter of 2024. The loss for the first half of 2025 was $268.1 million, a significant improvement from the $1.854 billion loss recorded in the first half of 2024, which included a substantial goodwill impairment charge. The increase in losses this quarter was largely driven by restructuring, integration, and other charges totaling $178.9 million, reflecting the costs associated with the company's Optimization Plan aimed at improving operational efficiency and reducing costs.

In terms of operational developments, QuidelOrtho has initiated a multi-year Optimization Plan, which is expected to incur approximately $100 million in pretax charges through 2027. This plan includes the rationalization of facilities and a structured approach to procurement to drive cost savings. The company also announced the discontinuation of the Savanna platform, with the exit expected to be completed by the first half of 2027. As of June 29, 2025, QuidelOrtho's cash and cash equivalents increased to $151.7 million from $98.3 million at the end of 2024, providing a stronger liquidity position.

Geographically, the North America segment reported a revenue decline of 11% for the second quarter, primarily due to the wind-down of the U.S. donor screening business and decreased sales of certain SARS antigen assays. Conversely, the EMEA segment experienced an 8% revenue increase, driven by growth across all business units. The China segment also reported a modest revenue increase of 2%. The company continues to focus on expanding its product lines and services while managing costs effectively to improve financial results.

Looking ahead, QuidelOrtho anticipates continued fluctuations in demand for its respiratory and non-respiratory products, influenced by seasonal trends and competitive pressures. The company aims to enhance its product offerings and operational efficiencies to drive long-term growth and profitability. The ongoing geopolitical and macroeconomic challenges, including tariffs and supply chain disruptions, may impact future performance, but the company remains committed to its strategic initiatives and operational improvements.