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Varex Imaging Faces Financial Strain Amidst Potential Goodwill Impairment Charges

Varex Imaging Faces Financial Strain Amidst Potential Goodwill Impairment Charges

Varex Imaging Corporation (VREX) has disclosed a new risk, in the Accounting & Financial Operations category.

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Varex Imaging Corporation faces significant financial risk due to potential impairment charges related to its goodwill, which stood at $198.4 million as of October 3, 2025. The company is required to conduct annual tests on intangible assets with indefinite lives, including goodwill, and may need to record impairment charges that could negatively impact earnings or increase losses. A recent example includes a $93.9 million goodwill impairment charge recorded for its Medical reporting unit, driven by factors such as a decrease in stock price and market capitalization, as well as external pressures like tariffs and MOFCOM Investigations. The sensitivity of their goodwill impairment analysis to key assumptions suggests that further impairment charges could occur, posing a threat to the company’s financial health and operational results.

Overall, Wall Street has a Moderate Buy consensus rating on VREX stock based on 2 Buys and 1 Hold.

To learn more about Varex Imaging Corporation’s risk factors, click here.

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