Varex Imaging Reports $466.5M Revenue with Increased Losses Due to Goodwill Impairment

Varex Imaging Corporation reported a net revenue of $466.5 million for the fiscal year ending October 3, 2025, marking a 7.5% increase from the previous year's revenue of $434.5 million. The company's profitability, however, was impacted by a significant goodwill impairment charge of $93.9 million, resulting in a net loss of $69.9 million compared to a net loss of $48.3 million in fiscal year 2024. The increase in revenue was driven by a $10.9 million rise in medical segment sales, primarily from CT, oncology, and mammography products, and a $22.7 million increase in industrial segment sales, particularly in security inspection products and X-ray tubes.

The company experienced notable changes in its operational landscape, including a shift in revenue distribution across geographic regions. The Americas saw a revenue increase of $10 million, while EMEA and APAC regions reported increases of $4.5 million and $19.1 million, respectively. Varex's customer base remains concentrated, with its top five customers accounting for approximately 40% of total revenue. Canon Medical Systems Corporation was the largest customer, contributing 18% of total revenue.

Strategically, Varex has focused on expanding its manufacturing capabilities in response to the ongoing U.S.-China trade tensions and tariffs, which have affected its cost structure and competitive positioning. The company has implemented a local-for-local strategy to mitigate tariff impacts and enhance its supply chain resilience. Additionally, Varex is actively pursuing new applications for its technology in the non-destructive testing sector, which it identifies as a significant growth opportunity.

Operationally, Varex employed approximately 2,400 full-time equivalent employees as of October 3, 2025, with a continued emphasis on research and development, which accounted for 10.8% of total revenue. The company reported a backlog of approximately $262 million, indicating a solid pipeline of future revenue. However, the company faces challenges related to supply chain disruptions and fluctuating material costs, which could impact its ability to meet customer demand and maintain profitability.

Looking ahead, Varex anticipates continued volatility in its operating environment due to geopolitical tensions, economic instability, and regulatory changes. The company remains committed to enhancing its product offerings and operational efficiencies while navigating the complexities of the current market landscape.