Varex Imaging Corporation (VREX) Financial Results Summary
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Varex Imaging Corporation (VREX) Q4 2025 Financial Results Summary
SALT LAKE CITY, November 18, 2025 – Varex Imaging Corporation (Nasdaq: VREX) today announced its unaudited financial results for the fourth quarter and fiscal year 2025.
Q4 FY25 Summary
- Revenues: $229 million
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Up 11% year-over-year (from $205.7 million in Q4 FY24)
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GAAP Gross Margin: 34%
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Non-GAAP Gross Margin: 34%
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GAAP Operating Margin: 9%
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Non-GAAP Operating Margin: 10%
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GAAP Net Income: $0.29 per diluted share
- Non-GAAP Net Income: $0.37 per diluted share
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Up 95% from $0.19 in Q4 FY24
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Cash Flow from Operations: $8 million
Revenue Breakdown
- Medical Segment Revenue: $152 million
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Up 5% year-over-year (from $144.4 million in Q4 FY24)
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Industrial Segment Revenue: $77 million
- Up 25% year-over-year (from $61.3 million in Q4 FY24)
FY25 Summary
- Total Revenues: $845 million
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Up 4% year-over-year (from $811 million in FY24)
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GAAP Gross Margin: 34%
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Non-GAAP Gross Margin: 35%
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GAAP Operating Margin: (3)%
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Non-GAAP Operating Margin: 9%
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GAAP Net Loss: $(1.70) per diluted share
- Non-GAAP Net Income: $0.90 per diluted share
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Up 73% from $0.52 in FY24
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Cash Flow from Operations: $42 million
Financial Commentary
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CEO Sunny Sanyal expressed satisfaction with the fourth quarter revenue of $229 million, indicating it was driven by significant global CT tube sales in the Medical segment and a 25% revenue increase in the Industrial segment.
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The year saw advancements in key growth initiatives such as innovative technologies, including photon counting for CT and a new radiographic detector launched from India.
Balance Sheet & Cash Flow
- Cash, Cash Equivalents, and Marketable Securities: $155 million as of October 3, 2025
- Decreased from $213 million at the end of FY24 due to cash utilized to pay down Convertible Notes.
Outlook for Q1 FY26
- Expected Revenues: Between $200 million and $215 million
- Expected Non-GAAP Net Earnings per Diluted Share: Between $0.05 and $0.25
Shareholder Returns
- Dividends: No quarterly dividend declared for Q4 2025.
- Share Repurchase: No share repurchase program mentioned in the financial results or commentary.
Summary of Key Metrics
Q4 Highlights
- Revenue Growth:
- Total: Up 11%
- Medical: Up 5%
- Industrial: Up 25%
- Non-GAAP EPS: Up 95% from prior year.
FY25 Highlights
- Total Revenue Growth: Up 4%
- Non-GAAP EPS: Up 73% from prior year.
This report consists of preliminary, unaudited financial results for Varex Imaging Corporation, which are subject to adjustments before the official Form 10-K filing. All financial metrics indicated are on a year-over-year basis unless stated otherwise.
| Three Months Ended | Twelve Months Ended | |||
|---|---|---|---|---|
| October 3, 2025 | September 27, 2024 | October 3, 2025 | September 27, 2024 | |
| Revenues, net | ||||
| Medical | $152.1 | $144.4 | $592.6 | $581.7 |
| Industrial | $76.8 | $61.3 | $252.0 | $229.3 |
| Total revenues | $228.9 | $205.7 | $844.6 | $811.0 |
| Cost of revenues | ||||
| Medical | $104.1 | $97.5 | $392.5 | $405.0 |
| Industrial | $47.0 | $41.1 | $161.6 | $149.1 |
| Total cost of revenues | $151.1 | $138.6 | $554.1 | $554.1 |
| Gross profit | ||||
| Medical | $48.0 | $46.9 | $200.1 | $176.7 |
| Industrial | $29.8 | $20.2 | $90.4 | $80.2 |
| Total gross profit | $77.8 | $67.1 | $290.5 | $256.9 |
| Operating expenses: | ||||
| Research and development | $24.2 | $21.9 | $91.1 | $87.0 |
| Selling, general, and administrative | $34.0 | $34.3 | $133.3 | $137.8 |
| Impairment of goodwill | $— | $— | $93.9 | $— |
| Total operating expenses | $58.2 | $56.2 | $318.3 | $224.8 |
| Operating income (loss) | $19.6 | $10.9 | -27.8 | $32.1 |
| Interest income | $1.0 | $1.8 | $8.5 | $7.3 |
| Interest expense | -7.9 | -7.6 | -35.5 | -30.2 |
| Other income (expense), net | $1.4 | -2.6 | -4.4 | -4.2 |
| Interest and other expense, net | -5.5 | -8.4 | -31.4 | -27.1 |
| Income (loss) before taxes | $14.1 | $2.5 | -59.2 | $5.0 |
| Income tax expense | $1.9 | $53.5 | $10.7 | $53.3 |
| Net income (loss) | $12.2 | -51.0 | -69.9 | -48.3 |
| Less: Net income attributable to | ||||
| noncontrolling interests | $— | $0.1 | $0.4 | $0.5 |
| Net income (loss) attributable to Varex | $12.2 | -51.1 | -70.3 | -48.8 |
| Net income (loss) per common share | ||||
| attributable to Varex | ||||
| Basic | $0.29 | -1.25 | -1.70 | -1.20 |
| Diluted | $0.29 | -1.25 | -1.70 | -1.20 |
| Weighted average common shares | ||||
| outstanding | ||||
| Basic | $41.6 | $40.9 | $41.4 | $40.8 |
| Diluted | $41.8 | $40.9 | $41.4 | $40.8 |
| October 3, 2025 | September 27, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $145.0 | $168.7 |
| Marketable securities | $10.1 | $31.8 |
| Accounts receivable, net of allowance | ||
| for credit losses of $2.1 million and | ||
| $1.0 million at October 3, | ||
| 2025 and September 27, 2024, | $156.6 | $157.7 |
| Inventories, net | $299.4 | $264.8 |
| Prepaid expenses and other current | ||
| assets | $30.7 | $26.9 |
| Total current assets | $641.8 | $649.9 |
| Property, plant, and equipment, net | $157.8 | $153.4 |
| Goodwill | $198.4 | $291.0 |
| Intangible assets, net | $14.0 | $16.1 |
| Investments in privately-held companies | $24.5 | $26.8 |
| Deferred tax assets | $2.9 | $1.3 |
| Operating lease assets | $29.4 | $28.3 |
| Other assets | $38.6 | $46.8 |
| Total assets | $1,107.4 | $1,213.6 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $69.9 | $59.1 |
| Accrued liabilities and other current | $98.4 | $78.6 |
| liabilities | ||
| Current operating lease liabilities | $4.4 | $4.0 |
| Current maturities of long-term debt, | $1.5 | $46.3 |
| net | ||
| Deferred revenues | $13.0 | $7.9 |
| Total current liabilities | $187.2 | $195.9 |
| Long-term debt, net | $366.0 | $397.1 |
| Deferred tax liabilities | $5.5 | $4.0 |
| Operating lease liabilities | $24.0 | $23.0 |
| Other long-term liabilities | $38.1 | $50.4 |
| Total liabilities | $620.8 | $670.4 |
| Stockholders’ equity: | ||
| Preferred stock, $0.01 par value: | ||
| 20,000,000 shares authorized, none | $— | $— |
| issued | ||
| Common stock, $0.01 par value: | ||
| 150,000,000 shares authorized | ||
| Shares issued and outstanding: | ||
| 41,689,672 and 41,094,179 at October 3, | $0.4 | $0.4 |
| 2025 and September 27, 2024, | ||
| respectively. | ||
| Additional paid-in capital | $483.3 | $467.2 |
| Accumulated other comprehensive loss | -5.2 | -2.9 |
| (Accumulated deficit) retained earnings | -5.9 | $64.4 |
| Total Varex stockholders’ equity | $472.6 | $529.1 |
| Noncontrolling interests | $14.0 | $14.1 |
| Total stockholders’ equity | $486.6 | $543.2 |
| Total liabilities and stockholders’ | $1,107.4 | $1,213.6 |
| equity |
