Quidel Stock Earnings Reports

Q1 2026 results were materially impacted by a significantly milder and shorter respiratory season (ILI visits down ~30% vs. Q1 2025) and distributor caution in China ahead of proposed national IVD pricing guidelines. Reported revenue was $620M; adjusted EBITDA was $109M (18% margin); adjusted diluted loss per share was $0.04. Management completed the acquisition of LEX Diagnostics (ultra-fast molecular POCT) in April and expects instrument placements to begin in Q2 with meaningful assay pull-through and revenue starting in early 2027. New product rollouts include a high-sensitivity troponin assay (now shipping to 300+ U.S. customers) and the VITROS 450 (CE marked) for select international markets. Updated full-year 2026 guidance: revenue $2.70B–$2.75B, adjusted EBITDA $615M–$630M (≈23% margin), adjusted diluted EPS $1.80–$2.00, and free cash flow $100M–$120M. Management expects the China pricing changes to affect roughly half of China sales, believes the business will remain accretive to margins, and is preparing mitigation actions; final rules/timing remain uncertain and may shift. Near-term cash flow was negative (operating cash flow -$33M, free cash flow -$67M) driven by weaker respiratory season, timing of payables/accrued interest, and inventory increases ahead of launches. Management reiterated focus on margin expansion through procurement, facility consolidation (Raritan shutdown), staffing reductions, and leveraging higher-margin product mix (including LEX), targeting mid-to-high-20s% EBITDA margins over time.