QuidelOrtho Corporation

Good morning or good afternoon. Welcome to the Quiddo Ortho fourth quarter and full year 2025 financial results conference call and webcast. At this time, all participants are in a listen-only mode. For those of you participating in the conference call, there will be an opportunity for your questions at the end of today's prepared remarks. Please note this conference call is being recorded. An audio replay of the conference call will be available on the company's website shortly after this call. I would now like to turn the call over to Julia Cunningham, Vice President of Investor Relations.

Thank you. Good afternoon, everyone. Thanks for joining us. With me today are Brian Blazer, President and Chief Executive Officer, Jonathan Segrist, Chief Technology Officer, and Joe Buskey, Chief Financial Officer. This conference call is being simultaneously webcast on the investor relations page of our website. To assist in the presentation, we also posted supplemental information on our IR page that will be referenced throughout this call. This conference call and supplemental information contains forward-looking statements which are made as of today, February 11, 2026. We assume no obligation to update any forward-looking statement except as required by law. Statements that are not strictly historical including the company's expectations, plan, financial guidance, future performance, and prospects are forward-looking statements that are subject to certain risks, uncertainty, assumptions, and other factors. Actual results may vary materially from those expressed or implied in these forward-looking statements. Please refer to our SEC filings for a description of potential risks. In addition, today's call includes discussion of certain non-GAAP financial measures. Tables reconciling these non-GAAP measures to their most directly comparable GAAP measures are available in our earnings release and supplemental information on the IR page of our website. Lastly, unless stated otherwise, all year-over-year revenue growth rates given on today's call are on a constant currency basis. And now I'd like to turn the call over to our CEO, Brian Blazer.

Thank you, Juliette. Good afternoon, everyone. I'd like to begin today's call with a brief reflection on my experience since joining Vital Ortho in May 2024, and then focus on how the work we've done positions the company for the future. And I'll highlight key progress from 2025, which includes strong mid-single-digit growth, before turning the call over to Jonathan to discuss our recent progress in R&D. When I joined the business, Quidel Ortho was a company I knew well and respected, with broad and differentiated portfolios spanning the entire patient care journey. It was clear that the opportunity ahead was not driven by structural issues, but more about optimizing our business model and executing more consistently and with greater discipline to unlock the full potential of the portfolio. Early on, I conducted a comprehensive review of the business with the leadership team across our portfolio, operations, commercial execution, and talent. And from that work, we established three clear priorities. Putting customers at the center of everything we do, strengthening operational and financial performance, and accelerating product development to support long-term growth. In 2025, we did exactly what we set out to do. We realigned our cost structure. strengthened execution rigor, and improved the way the organization operates day to day. To date, our actions have generated $140 million in cost savings, expanded adjusted EBITDA margins to the low 20s, and increased our financial flexibility. And we did this while delivering strong growth in our labs business, supported by our recurring revenue business model. And importantly, we believe the changes we made in the business will be lasting in nature and designed to be sustained. And with that context, I'd like to turn now to our Q4 financial highlights, which will be in constant currency unless otherwise noted. Joe will provide greater detail on our Q4 in the full year results as well as provide our 2026 financial guidance later in the call. Fourth quarter revenue was $724 million as reported with 7% growth in non-respiratory excluding donor screening. Our labs business reported strong growth of 7% in Q4 driven by continued strength in clinical chemistry. Respiratory revenue declined as expected due to COVID-19. However, we saw strong blue revenue growth of 6%. For the full year, we achieved our 2025 financial guidance with $2.73 billion in revenue as reported. Excluding donor screening, non-respiratory revenue grew 5%. Our labs business had strong mid-single-digit growth at 6% for the full year and represented 55% of total company revenue, pointing to the strength of our underlying business. Respiratory revenue totaled $402 million, as reported. Operating expenses decreased by 5% as a direct result of our company-wide cost savings initiatives. Adjusted EBITDA margin was 22% in line with our 2025 guidance and representing a 240 basis point improvement over the prior year. Our full year results included a significant non-cash goodwill charge in our GAAP results that was recorded in Q3. And let me be clear that this was an accounting reset that reflects post-pandemic market valuations. It does not impact our cash, our operations, or our ability to invest in the core business engine you see performing today. In closing, we're pleased with our 2025 performance and progress against our priorities. Looking ahead, our objective is to maximize the value of Quidel Ortho by delivering superior outcomes for our customers and, over time, converting that value into attractive returns for shareholders. We are guided by a clear financial and operating framework. driving above market growth, expanding margins through execution and mix, generating strong cash flow, and strengthening the balance sheet. These are long-term objectives that reflect the earnings power of the business when executed consistently. And to support this, we have aligned the organization to optimize the customer experience and drive effective execution across every dimension of the business. We are sharpening our focus by prioritizing higher growth markets, and being selective in how and where we deploy capital while also continuing to build a strong leadership team and a culture grounded in quality, accountability, and continuous improvement. Our progress this year would not have been possible without the dedication of our employees around the world. Together, we are rebuilding a culture that is grounded in continuous improvement and positioning the company for long-term success. And as teams evolve, leadership transitions naturally occur. Today, we announced that Joe Buskey has decided to retire as CFO in June. We have initiated a search for his successor. Both Joe and I are fully committed to ensuring a smooth transition. Joe has built a highly capable finance organization and has been instrumental in achieving our cost savings initiatives over the past 18 months. I want to sincerely thank Joe for his many contributions to Quidel Ortho and wish him all the best in his retirement. Thank you, Joe. Delivering on our ambitions requires a strong and disciplined R&D team. As I mentioned earlier, this was an area we identified as needing improvement, and we were pleased to welcome Jonathan Segrist in late 2024 to lead these critical functions. Jonathan has played a key role in advancing our continuous improvement culture in R&D, and he has several important innovations underway, so I asked him to join us today and provide a deeper look at what's ahead. Jonathan?