Varex Imaging Corporation (VREX) Financial Results Summary

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November 19, 2025•5 min read

Varex Imaging Corporation (VREX) Financial Results Summary

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
Up 11% year-over-year (from $205.7 million in Q4 FY24)
GAAP Gross Margin: 34%
Non-GAAP Gross Margin: 34%
GAAP Operating Margin: 9%
Non-GAAP Operating Margin: 10%
GAAP Net Income: $0.29 per diluted share
Non-GAAP Net Income: $0.37 per diluted share
Up 95% from $0.19 in Q4 FY24
Cash Flow from Operations: $8 million

Revenue Breakdown

Medical Segment Revenue: $152 million
Up 5% year-over-year (from $144.4 million in Q4 FY24)
Industrial Segment Revenue: $77 million
Up 25% year-over-year (from $61.3 million in Q4 FY24)

FY25 Summary

Total Revenues: $845 million
Up 4% year-over-year (from $811 million in FY24)
GAAP Gross Margin: 34%
Non-GAAP Gross Margin: 35%
GAAP Operating Margin: (3)%
Non-GAAP Operating Margin: 9%
GAAP Net Loss: $(1.70) per diluted share
Non-GAAP Net Income: $0.90 per diluted share
Up 73% from $0.52 in FY24
Cash Flow from Operations: $42 million

Financial Commentary

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.
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

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