Revenue: As of FY2026 Q1, the actual value is USD 619.8 M, missing the estimate of USD 659.18 M.EPS: As of FY2026 Q1, the actual value is USD -1.35, missing the estimate of USD -0.71.EBIT: As of FY2026 Q1, the actual value is USD 19.3 M.<h3>Segment Revenue</h3>QuidelOrtho Corporation’s Total Revenues decreased by 11% to $619.8 million for the three months ended March 29, 2026, compared to $692.8 million for the same period in the prior year, with currency exchange rates having a favorable impact of 210 basis points on the growth rate . Revenues related to respiratory products constituted 11% and 17% of Total revenues for the three months ended March 29, 2026, and March 30, 2025, respectively . Non-core revenue was $24.7 million for the three months ended March 29, 2026, down from $33.4 million for the three months ended March 30, 2025 .<h4>Revenue by Business Unit (Three Months Ended)</h4><ul><li>Labs: $353.1 million (March 29, 2026) vs. $373.0 million (March 30, 2025), a -5% change, primarily due to the termination of the Joint Business arrangement and slower distributor sales in China .</li><li>Immunohematology: $138.3 million (March 29, 2026) vs. $128.5 million (March 30, 2025), an 8% increase, primarily due to reagent growth .</li><li>Donor Screening: $7.8 million (March 29, 2026) vs. $12.8 million (March 30, 2025), a -39% decrease, primarily due to the wind-down of the U.S. donor screening business .</li><li>Point of Care: $112.8 million (March 29, 2026) vs. $170.9 million (March 30, 2025), a -34% decrease, primarily due to reduced sales of SOFIA SARS and QUICKVUE SARS Antigen assays .</li><li>Molecular Diagnostics: $7.8 million (March 29, 2026) vs. $7.6 million (March 30, 2025), a 3% increase .</li></ul><h4>Revenue by Geographic Segment (Three Months Ended March 29, 2026)</h4><ul><li>North America: $328.9 million, a -19% change from $406.7 million in the prior year, driven by decreases in SARS antigen assays and Labs revenues due to the Joint Business arrangement termination .</li><li>EMEA: $92.5 million, a 4% change from $88.9 million in the prior year, primarily due to increased Immunohematology revenues .</li><li>China: $63.5 million, a -15% change from $75.0 million in the prior year, mainly due to decreased Labs revenues from slower distributor sales related to pending IVD pricing guidelines .</li><li>JPAC: $70.0 million, a 3% change from $68.1 million in the prior year, primarily due to increased Labs revenues .</li><li>Latin America: $64.9 million, a 20% change from $54.1 million in the prior year, primarily due to increased Labs revenues and product mix changes .</li></ul><h3>Operational Metrics</h3><ul><li>Net Loss: QuidelOrtho Corporation reported a net loss of -$91.8 million for the three months ended March 29, 2026, compared to a net loss of -$12.7 million for the three months ended March 30, 2025 .</li><li>Cost of Sales: Cost of sales, excluding amortization of intangible assets, increased to $356.0 million (57.4% of Total revenues) for the three months ended March 29, 2026, from $349.5 million (50.4% of Total revenues) for the three months ended March 30, 2025, primarily due to higher employee compensation costs .</li><li>Operating (Loss) Income: Operating loss was -$31.8 million for the three months ended March 29, 2026, compared to operating income of $32.6 million for the three months ended March 30, 2025 .</li></ul><h4>Operating Expenses (Three Months Ended)</h4><ul><li>Selling, marketing and administrative: $199.3 million (32.2% of Total revenues) for March 29, 2026, an increase of $12.3 million or 6.6% from $187.0 million (27.0% of Total revenues) for March 30, 2025, mainly due to higher employee compensation costs and cloud computing amortization .</li><li>Research and development: $44.9 million (7.2% of Total revenues) for March 29, 2026, a decrease of $8.3 million or 15.6% from $53.2 million (7.7% of Total revenues) for March 30, 2025, primarily due to lower third-party material and clinical costs .</li><li>Amortization of intangible assets: $46.8 million (7.6% of Total revenues) for March 29, 2026, compared to $48.0 million (6.9% of Total revenues) for March 30, 2025 .</li><li>Restructuring, integration and other charges: $4.4 million (0.7% of Total revenues) for March 29, 2026, compared to $16.1 million (2.3% of Total revenues) for March 30, 2025 .</li><li>Other operating expenses: $0.2 million for March 29, 2026, a decrease from $6.4 million for March 30, 2025, primarily due to the termination of the Joint Business arrangement .</li></ul><h4>Adjusted EBITDA by Geographic Segment (Three Months Ended)</h4><ul><li>North America: $169.4 million (March 29, 2026) vs. $234.3 million (March 30, 2025), a -28% decrease .</li><li>EMEA: $20.1 million (March 29, 2026) vs. $16.5 million (March 30, 2025), a 22% increase .</li><li>China: $20.5 million (March 29, 2026) vs. $29.3 million (March 30, 2025), a -30% decrease .</li><li>JPAC: $16.5 million (March 29, 2026) vs. $17.6 million (March 30, 2025), a -6% decrease .</li><li>Latin America: $15.8 million (March 29, 2026) vs. $12.0 million (March 30, 2025), a 32% increase .</li><li>Interest Expense, Net: Interest expense, net was $51.1 million for the three months ended March 29, 2026, compared to $40.0 million for the three months ended March 30, 2025 .</li><li>Other (Income) Expense, Net: Other income, net was $3.4 million for the three months ended March 29, 2026, compared to Other expense, net of -$1.4 million for the three months ended March 30, 2025, primarily due to net foreign currency gains .</li><li>Provision for Income Taxes: QuidelOrtho Corporation recognized a provision for income taxes of $12.3 million for the three months ended March 29, 2026, on a loss before income taxes of -$79.5 million, resulting in a negative effective tax rate of 15.5% . For the three months ended March 30, 2025, the provision was $3.9 million on a loss before income taxes of -$8.8 million, resulting in a negative effective tax rate of 44.3% .</li></ul><h3>Cash Flow</h3><ul><li>Net Cash (Used for) Provided by Operating Activities: Net cash used for operating activities was -$33.0 million for the three months ended March 29, 2026, a decrease from $65.6 million provided by operating activities for the three months ended March 30, 2025, influenced by a net loss of -$91.8 million and cash outflows of -$72.6 million for inventories .</li><li>Net Cash Used for Investing Activities: Net cash used for investing activities was -$34.0 million for the three months ended March 29, 2026, compared to -$56.2 million for the three months ended March 30, 2025, related to purchases of property, plant, equipment, investments, and intangibles .</li><li>Net Cash Provided by Financing Activities: Net cash provided by financing activities was $37.6 million for the three months ended March 29, 2026, compared to $17.6 million for the three months ended March 30, 2025, primarily due to net proceeds from the Revolving Credit Facility of $50.0 million, partially offset by net payments on long-term borrowings of -$9.8 million .</li><li>Cash and Cash Equivalents: Cash and cash equivalents were $140.4 million as of March 29, 2026, a decrease of -$29.4 million from $169.8 million as of December 28, 2025 .</li></ul><h3>Unique Metrics and Strategic Initiatives</h3><ul><li>Optimization Plan: QuidelOrtho Corporation launched an Optimization Plan in Q2 2025, expecting cumulative pre-tax charges of approximately $100.0 million through 2027, with $20.4 million incurred to date, aiming for net cost savings of approximately $50.0 million through 2027 by realigning costs, driving operational efficiencies, and supporting strategic investments .</li><li>SAVANNA Exit: The company is discontinuing the development of the SAVANNA platform, with the exit expected to be substantially complete by the first half of 2027 .</li><li>Wind-Down of U.S. Donor Screening Portfolio: A wind-down plan for the U.S. donor screening portfolio (ORTHO VERSEIA Integrated Processor platform and microplate assays) was initiated in February 2024 and is expected to be substantially complete by mid-year 2026 .</li><li>Acquisition of LEX Diagnostics: On April 17, 2026, QuidelOrtho Corporation acquired LEX Diagnostics Limited for approximately $100 million in cash, with potential earn-out payments of up to $35 million, to expand its molecular diagnostics portfolio and accelerate growth in point-of-care molecular diagnostics .</li></ul><h3>Future Outlook and Strategy</h3>QuidelOrtho Corporation anticipates continued demand fluctuations for its non-respiratory and respiratory products, alongside persistent pricing pressures due to market competition and seasonal demands . The company plans to evaluate strategic opportunities to expand product lines, production capabilities, and geographic footprint, while also rationalizing facilities to improve long-term results . Despite a weaker respiratory season and potential impacts from China’s IVD pricing guidelines, QuidelOrtho intends to focus on prudently managing its business and introducing new products .

QuidelOrtho | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 619.8 M