QuidelOrtho Reports 4% Revenue Decline and $733M Net Loss in Q3 2025

QuidelOrtho Corporation reported a significant decline in its financial performance for the third quarter of 2025, with total revenues of $699.9 million, down 4% from $727.1 million in the same period last year. For the nine months ended September 28, 2025, revenues decreased by 3% to $2,006.6 million compared to $2,075.1 million in the prior year. The decrease was primarily attributed to a reduction in COVID-19 related revenues and the wind-down of the U.S. donor screening portfolio, which negatively impacted sales in the Point of Care and Donor Screening segments. The company also reported a net loss of $733.0 million for the quarter, compared to a loss of $19.9 million in the same quarter of 2024.

The company experienced a substantial goodwill impairment charge of $700.7 million during the third quarter, which significantly impacted its profitability. This charge was a result of an interim assessment indicating that the carrying values of certain reporting units exceeded their fair values. Additionally, restructuring and integration charges rose to $39.6 million for the quarter, reflecting ongoing efforts to streamline operations and reduce costs. In contrast, selling, marketing, and administrative expenses remained relatively stable, totaling $186.9 million, while research and development expenses decreased to $41.5 million, down 25.8% from the previous year.

Operationally, QuidelOrtho's Labs segment showed resilience, with a 5% revenue increase for the nine months ended September 28, 2025, driven by growth in reagents and consumables. However, the Point of Care segment saw a 20% decline in revenue for the quarter, primarily due to decreased sales of QuickVue and Sofia SARS Antigen assays. The company continues to face challenges in its Donor Screening business, which reported a 47% revenue drop for the quarter, largely due to the planned wind-down of its U.S. operations.

In terms of liquidity, QuidelOrtho had cash and cash equivalents of $98.1 million as of September 28, 2025, a slight decrease from $98.3 million at the end of the previous fiscal year. The company also entered into a new credit agreement in August 2025, securing $1.15 billion in term loans and a $700 million revolving credit facility to support its operations and strategic initiatives. The company anticipates that its current cash position, along with cash generated from operations and available credit, will be sufficient to meet its near-term capital and operating needs.

Looking ahead, QuidelOrtho expects continued fluctuations in demand for its respiratory and non-respiratory products, influenced by seasonal trends and competitive pressures. The company is focused on executing its Optimization Plan, which aims to achieve cost savings and operational efficiencies through facility rationalization and procurement strategies. Despite the challenges, QuidelOrtho remains committed to expanding its product offerings and improving its financial performance in the coming quarters.