QuidelOrtho Corporation

What they do

QuidelOrtho operates in five geographic segments—North America, EMEA, China, JPAC, and Latin America—and generates revenue from four business units: Labs, Transfusion Medicine, Point of Care, and Molecular Diagnostics. Labs provides clinical chemistry and immunoassay instruments and tests; Transfusion Medicine includes immunohematology and donor screening products; Point of Care includes rapid tests like Triage and Sofia; Molecular Diagnostics includes PCR-based assays. The company sells directly and through distributors to hospitals, labs, physician offices, and OTC markets, with manufacturing in the U.S., U.K., and China.

Revenue drivers

• Labs — Largest business unit, generating $383 million in Q2 2026 (61% of total revenue), grew 4% reported/2% constant currency; outside China grew 9%, but slower China sales due to IVD pricing changes.
• Transfusion Medicine — Immunohematology revenue of $134 million in Q2 2026 (21% of total), grew 1% both reported and constant currency; outside China grew 5%. Includes Ortho Vision and BioVue systems.
• Point of Care — Revenue of $108 million in Q2 2026 (17% of total), grew 16% both as reported and constant currency, with Triage growing 10% (9% constant currency).
• Molecular Diagnostics — Part of the diversified portfolio; not separately disclosed in Q2 2026, but includes Savanna and Lyra platforms; impacted by softer global respiratory environment.

Recent performance

For Q2 2026 (ended June 28, 2026), total revenue was $631 million, up 3% reported and 2% constant currency; excluding China, revenue grew 6% both as reported and constant currency. GAAP net loss was $93 million (14.7% margin), GAAP operating loss was $22 million (3.5% margin), and adjusted EBITDA was $129 million (20.5% margin). For the six months ended June 28, 2026, total revenue was $1.25 billion (Q1 $620 million, Q2 $631 million). Full-year 2025 revenue was $2.73 billion with a net loss of $1.13 billion; 2024 revenue was $2.78 billion with a net loss of $2.05 billion.

Strategy

Management is focused on strengthening the balance sheet and improving cash conversion, which they state is the top priority. They are executing a wind-down of the U.S. donor screening portfolio (VIP platform and microplate assays), expected substantially complete by first half of 2026. They are pursuing strategic transactions, including the proposed acquisition of LEX Diagnostics, and have an Optimization Plan for cost savings. They also plan to exit the Savanna business (SAVANNA Exit). Management aims to build a more resilient company by focusing on core franchises and regions, excluding China, while mitigating the impact of China's IVD pricing changes.

Risks

• China pricing and demand headwinds — Recently proposed IVD pricing guidelines from China's National Health Security Administration and slower sales in China are pressuring revenue and earnings.
• Respiratory product volatility — A softer global respiratory environment is continuing to impact demand for respiratory products, a key revenue stream.
• High leverage and liquidity — As of June 28, 2026, cash and equivalents were only $123.4 million against $2.70 billion in long-term debt (as of Dec 28, 2025), and operating cash flow was $105 million in 2025.
• Strategic execution risk — The proposed acquisition of LEX Diagnostics and the SAVANNA Exit may not close on time or realize expected benefits, and the wind-down of U.S. donor screening may not be completed as planned.

Outlook

Management updated full-year 2026 guidance downward: total revenues of $2.52-2.60 billion (previously $2.70-2.75 billion), adjusted EBITDA of $540-560 million (previously $615-630 million), adjusted diluted EPS of $0.65-0.90 (previously $1.80-2.00). Free cash flow guidance was withdrawn. These revisions reflect China IVD pricing headwinds and a softer global respiratory environment. Management remains committed to improving cash conversion and strengthening the balance sheet.