QuidelOrtho Revenue Falls 12% To $619 Million, Trims Outlook And Starts Restructuring
The diagnostics maker targets over $80 million in 2027 savings and cut the top of its 2026 revenue and EPS ranges.
QuidelOrtho, which makes diagnostic tests and the instruments that run them, said third-quarter revenue fell 12% to $619 million as China pricing changes and a softer respiratory season hit sales. The company posted a net loss of $54 million, launched a restructuring and narrowed its 2026 forecast, according to an 8-K filed Tuesday.
Where the quarter broke
The 12% drop was the same as reported and in constant currency. The GAAP net loss was $0.78 per share, and the operating loss was $8 million. Adjusted EBITDA, an adjusted profit measure, was $148 million, a 23.9% margin versus 25.3% a year earlier.
Point of Care revenue fell 27% to $120 million on a softer respiratory season. Labs revenue fell 6% to $353 million, mainly on lower China sales tied to recently announced changes to In Vitro Diagnostics pricing.
Outside China, Labs revenue grew 3% as reported and 4% in constant currency. Immunohematology, the blood-typing business, was flat at $142 million. Excluding respiratory, China and U.S. Donor Screening, total revenue grew 2% as reported and 3% in constant currency.
Operating cash flow was $20 million and free cash flow was $0.3 million.
Two businesses, one fewer executive
The new cost program reorganizes the company around two units, Core Diagnostics and Point of Care Diagnostics. QuidelOrtho expects it to deliver over $80 million in annual savings in 2027, with roughly $30 million to $35 million of one-time charges in the fourth quarter of 2026.
Effective November 9, Bryan Hanson becomes Head of Core Diagnostics and Jonathan Siegrist, PhD, becomes Head of Point of Care Diagnostics. Hanson had been executive vice president of global portfolio management and marketing; Siegrist, executive vice president of research and development and chief technology officer. Each gets a $650,000 base salary and a $650,000 retention bonus payable 12 months after the effective date.
The board also eliminated the Chief Operations Officer role, ending Phil McLellan's employment on the same date. CEO Brian J. Blaser said the company is "taking decisive action to strengthen the Company."
A narrower 2026 forecast
The top of every range came down:
- Revenue: $2.52 billion to $2.54 billion, from $2.52 billion to $2.60 billion.
- Adjusted EBITDA: $540 million to $545 million, from $540 million to $560 million.
- Adjusted EPS: $0.65 to $0.70, from $0.65 to $0.90.
The company, a maker of lab, point-of-care, blood-typing and molecular tests sold in more than 140 countries and territories, holds its call at 5:00 p.m. ET Tuesday.
The new leadership roles start November 9, and the fourth-quarter restructuring charges are the first cost of the savings plan.
