Completed Lex Diagnostics Acquisition
Acquired Lex Diagnostics (April 2026) adding an ultrafast molecular point-of-care platform; secured initial customer orders, expecting to place a few hundred instruments in 2026 with measurable assay pull-through and associated revenue beginning in early 2027; expanding UK manufacturing capacity to support ramp.
Product Launches and Commercial Traction
Launched high-sensitivity troponin assay in the U.S., now shipping to more than 300 U.S. customers; began rollout of VITROS 450 (CE Mark secured) targeting JAPAC then LATAM/EMEA to support international labs growth; these launches expected to support mid-single-digit revenue growth in the labs business (labs = >50% of revenue).
Q1 Revenue and Non-Respiratory Mix
Total reported Q1 revenue was $620 million with non-respiratory revenue of $552 million ($544 million excluding donor screening), demonstrating diversified revenue streams outside of the respiratory shortfall.
Immunohematology Growth
Immunohematology revenue grew 3% year-over-year, driven by performance in North America, China, and JAPAC.
Cost Discipline and Opex Efficiency
Non-GAAP operating expenses decreased 2% in Q1 driven by R&D efficiencies; company has taken significant cost actions historically (~1,000 positions removed) and outlined procurement, facility consolidation (Raritan shutdown), and targeted staff reductions to drive margin expansion.
Full-Year Profitability and Cash Guidance
Updated full-year 2026 guidance expects adjusted EBITDA of $615 million to $630 million (~23% adjusted EBITDA margin, +100 bps vs 2025), adjusted diluted EPS $0.80 to $2.00, and positive free cash flow of $100 million to $120 million for the year.
Strong Working Capital Actions and FX Tailwind
Delivered strong accounts receivable collections of $54 million in Q1 and reduced CapEx by $22 million versus prior-year; foreign currency was favorable by 210 basis points in the quarter.