--- title: "QuidelOrtho | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 619.8 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285477770.md" datetime: "2026-05-07T03:18:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285477770.md) - [en](https://longbridge.com/en/news/285477770.md) - [zh-HK](https://longbridge.com/zh-HK/news/285477770.md) --- # QuidelOrtho | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 619.8 M 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. ### Segment Revenue 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 . #### Revenue by Business Unit (Three Months Ended) - **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 . - **Immunohematology:** $138.3 million (March 29, 2026) vs. $128.5 million (March 30, 2025), an 8% increase, primarily due to reagent growth . - **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 . - **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 . - **Molecular Diagnostics:** $7.8 million (March 29, 2026) vs. $7.6 million (March 30, 2025), a 3% increase . #### Revenue by Geographic Segment (Three Months Ended March 29, 2026) - **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 . - **EMEA:** $92.5 million, a 4% change from $88.9 million in the prior year, primarily due to increased Immunohematology revenues . - **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 . - **JPAC:** $70.0 million, a 3% change from $68.1 million in the prior year, primarily due to increased Labs revenues . - **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 . ### Operational Metrics - **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 . - **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 . - **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 . #### Operating Expenses (Three Months Ended) - **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 . - **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 . - **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 . - **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 . - **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 . #### Adjusted EBITDA by Geographic Segment (Three Months Ended) - **North America:** $169.4 million (March 29, 2026) vs. $234.3 million (March 30, 2025), a -28% decrease . - **EMEA:** $20.1 million (March 29, 2026) vs. $16.5 million (March 30, 2025), a 22% increase . - **China:** $20.5 million (March 29, 2026) vs. $29.3 million (March 30, 2025), a -30% decrease . - **JPAC:** $16.5 million (March 29, 2026) vs. $17.6 million (March 30, 2025), a -6% decrease . - **Latin America:** $15.8 million (March 29, 2026) vs. $12.0 million (March 30, 2025), a 32% increase . - **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 . - **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 . - **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% . ### Cash Flow - **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 . - **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 . - **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 . - **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 . ### Unique Metrics and Strategic Initiatives - **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 . - **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 . - **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 . - **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 . ### Future Outlook and Strategy 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 . ### Related Stocks - [QDEL.US](https://longbridge.com/en/quote/QDEL.US.md) ## Related News & Research - [QuidelOrtho forecasts $2.7B-$2.75B 2026 revenue while targeting $100M-$120M free cash flow amid China pricing uncertainty](https://longbridge.com/en/news/285349432.md) - [QuidelOrtho misses Q1 revenue estimates, cuts FY outlook](https://longbridge.com/en/news/285265504.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Yext to Announce First Quarter Fiscal Year 2027 Financial Results on June 2, 2026 | YEXT Stock News](https://longbridge.com/en/news/286970613.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md)