0001906324-25-000160
SEC filingQuidelOrtho fully impaired its remaining goodwill ($700.7M) in Q3 2025 and refinanced with a new $2.6B credit agreement.
As of September 28, 2025, QuidelOrtho held $98.1M cash and equivalents, essentially flat year-end 2024. Total debt rose to $2,659.0M from $2,483.1M, driven by a refinancing in August 2025 that replaced the previous credit agreement with a new $2.6B facility (Term Loan A $1.15B, Term Loan B $1.45B, Revolving $700M). The weighted average interest rate on term loans was 7.16% (6.86% on Term Loan A, 8.43% on Term Loan B). Shareholders' equity collapsed to $2,036.4M from $2,984.5M due to a $733M net loss and $700.7M goodwill impairment. Inventory grew to $613.8M (current) from $533.7M, reflecting higher finished goods.
No aggregate purchase commitments were disclosed. The company faced a $10.8M judgment related to a COVID-19 raw materials dispute, settled in Q4 2025. Legal contingencies include securities class action and derivative suits; no accrual beyond $9.4M recorded in Q3 for the supplier dispute. Total restructuring accruals stood at $7.0M for employee terminations under the Optimization Plan and Savanna exit.
No share buybacks or dividends were reported. The company prioritized debt refinancing: issued $2,546.2M in new term loans and repaid $2,287.6M of old debt, resulting in a net debt increase of $175.9M. Capital expenditures totaled $142.9M (7.12% of revenue), including $118.5M transferred from inventory to fixed assets. The company also paid $6.7M as a loan to LEX Diagnostics.
Note 4 breaks out four reportable segments: North America, EMEA, China, and Other. For the nine months ended September 28, 2025, North America contributed 55% of total revenue ($1,098.8M) and 68% of segment Adjusted EBITDA ($604.8M), but its revenue declined 10% YoY. EMEA grew 7.2% to $268.0M (Adjusted EBITDA $59.2M), China grew 2.1% to $243.0M ($108.2M), and Other grew 8.2% to $396.8M ($111.7M). The segment metric is Adjusted EBITDA, which excludes corporate costs, depreciation, restructuring, and impairment charges.
Operating cash flow (CFO) of -$26.7M for the nine months ended September 28, 2025 contrasts sharply with the net loss of -$1,001.1M. The large difference is attributable to non-cash charges: goodwill impairment ($700.7M), depreciation & amortization ($329.5M), asset write-offs ($152.2M), and stock-based compensation ($35.1M). However, CFO was dragged down by significant working capital outflows: accounts receivable increased $88.7M, inventories rose $141.7M, and accounts payable decreased $15.9M. These uses of cash reflect operational challenges and likely inventory build. Capex of $142.9M remained high, resulting in negative free cash flow (CFO minus capex) of -$169.6M. Financing activities provided $166.9M, driven by net proceeds from long-term borrowings ($2,546.2M) offset by repayments ($2,287.6M) and a $98.0M reduction in revolving credit facility. The company did not repurchase shares or pay dividends. The cash balance decreased slightly by $0.4M to $98.1M. Overall, cash generation was poor, with operating cash flow turning negative and capital spending absorbing significant cash, necessitating external financing.