Varex Imaging Reports $89.1 Million Net Loss and Revenue Decline in Latest Quarter

Varex Imaging Corporation reported a net loss of $89.1 million for the three months ended July 4, 2025, compared to a net income of $1.5 million for the same period in the previous year. The company's revenues decreased by 2.9% to $203.0 million, down from $209.1 million in the prior year. For the nine months ended July 4, 2025, total revenues increased slightly to $615.7 million from $605.3 million, while the net loss for the period was $82.1 million, compared to a net income of $2.7 million in the same period last year. The significant loss in the latest quarter was primarily attributed to a goodwill impairment charge of $93.9 million related to the Medical reporting unit.

In terms of operational performance, Varex's Medical segment generated revenues of $142.1 million, a decline of 4.4% from the previous year, largely due to decreased sales in CT, fluoroscopy, and radiography modalities. Conversely, the Industrial segment saw a slight increase in revenues to $60.9 million. Geographically, revenue from the Americas rose by 1.1%, while EMEA and APAC regions experienced declines of 1.8% and 8.2%, respectively. The company’s gross profit for the quarter was $67.5 million, reflecting a gross margin of 33.3%, up from 32.0% in the prior year.

Varex's total operating expenses surged to $148.2 million, a 157.3% increase compared to the previous year, primarily due to the aforementioned goodwill impairment. Research and development expenses remained stable at $21.4 million, while selling, general, and administrative expenses decreased to $32.9 million. The company reported interest expenses of $9.4 million, up from $7.4 million, reflecting the impact of additional debt incurred from the issuance of Senior Secured Notes.

The company’s balance sheet showed total assets of $1.073 billion as of July 4, 2025, down from $1.214 billion at the end of the previous fiscal year. Cash and cash equivalents decreased to $136.4 million, while total debt stood at $367.5 million. Varex's employee headcount was approximately 2,300, with ongoing investments in research and development to support long-term growth. The company anticipates that its operating cash flow, cash reserves, and available credit will be sufficient to meet its operational needs over the next 12 months.

Looking ahead, Varex remains cautious about the impact of ongoing economic and geopolitical uncertainties, including tariffs and trade tensions, particularly with China. The company is actively monitoring these developments and is committed to implementing strategies to mitigate potential adverse effects on its business. Despite the challenges, Varex continues to focus on innovation and strengthening customer relationships to drive future growth.