Bio-Rad Reports First-Quarter 2025 Financial Results

Bio-Rad Laboratories, Inc. (NYSE: BIO and BIO.B), a global leader in life science research and clinical diagnostics products, today announced financial results for the first quarter ended March 31, 2025.

Norman Schwartz, Bio-Rad’s Chairman and Chief Executive Officer, stated: “We navigated a highly dynamic first quarter that became progressively more challenging, yet we delivered solid margins through focused execution and careful expense management. Given the current levels of market uncertainty, we are moderating our full-year 2025 outlook to reflect the evolving macro environment. Going forward, we remain committed to advancing our growth and margin expansion initiatives.”

Financial Results Highlights

First-Quarter 2025 Results

First-quarter 2025 total net sales were $585.4 million, a decrease of 4.2 percent compared to $610.8 million reported for the first quarter of 2024. On a currency-neutral basis, quarterly sales decreased 1.5 percent compared to the same period in 2024, primarily due to lower sales in our Life Science segment.

Life Science segment net sales for the first quarter were $228.6 million, a decrease of 5.4 percent compared to the same period in 2024. On a currency-neutral basis, Life Science segment sales decreased by 3.5 percent compared to the same quarter in 2024. The currency-neutral year-over-year sales decrease was driven by ongoing challenges in the academic research market, particularly in the Americas.

Clinical Diagnostics segment net sales for the first quarter were $356.8 million, a decrease of 3.2 percent compared to the same period in 2024. On a currency-neutral basis, net sales decreased 0.1 percent versus the same quarter last year. The currency-neutral year-over-year sales decrease was primarily driven by lowered reimbursements for diabetes testing in China, partially offset by increased demand for our quality control products.

First-quarter gross margin was 52.3 percent compared to 53.4 percent during the first quarter of 2024.

Income from operations during the first quarter of 2025 was $23.7 million versus $44.6 million during the same quarter last year.

During the first quarter of 2025, the company recognized a change in the fair market value of its investment in Sartorius AG, which substantially contributed to a net income of $64.0 million, or $2.29 per share, on a diluted basis, versus a net income of $383.9 million, or $13.45 per share, on a diluted basis, reported for the same period of 2024.

The effective tax rate for the first quarter of 2025 was 23.3 percent, compared to 21.8 percent for the same period in 2024. The higher rate in 2025 was driven by geographical mix of earnings.

Non-GAAP gross margin was 53.8 percent for the first quarter of 2025 compared to 54.2 percent during the first quarter of 2024.

Non-GAAP income from operations during the first quarter of 2025 was $63.0 million versus $59.0 million during the comparable prior-year period.

Non-GAAP net income for the first quarter of 2025 was $71.0 million, or $2.54 per share, on a diluted basis, compared to $65.3 million, or $2.30 per share, on a diluted basis, during the same period in 2024.

The non-GAAP effective tax rate for the first quarter of 2025 was 20.6 percent, compared to 22.4 percent for the same period in 2024. The lower rate in 2025 was driven by geographical mix of earnings.

Updated Full-Year 2025 Financial Outlook

Bio-Rad is updating its financial outlook for the full year 2025. The company currently expects non-GAAP, currency-neutral revenue to range from approximately a 1.0 percent decline to 1.5 percent growth versus its prior revenue growth estimate of approximately 1.5 to 3.5 percent, and an estimated non-GAAP operating margin of approximately 10.0 to 12.0 percent compared to its prior expectation of approximately 13.0 to 13.5 percent.

Conference Call and Webcast

Management will discuss the company’s first quarter 2025 results and financial outlook in a conference call scheduled for 2:30 PM Pacific Time (5:30 PM Eastern Time) on May 1, 2025. To participate, dial (800) 715-9871 within the U.S., or (+1) (646) 307-1963 from outside the U.S., and provide access code: 9562470.

A live webcast of the conference call will also be available in the "Investor Relations" section of the company’s website under "Events & Presentations" at investors.bio-rad.com. A replay of the webcast will be available for up to a year.

Use of Non-GAAP and Currency-Neutral Reporting

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including non-GAAP net income and non-GAAP EPS, which exclude amortization of acquisition-related intangible assets, certain acquisition-related expenses and benefits, restructuring charges, asset impairment charges, gains and losses from change in fair market value of equity securities and loan receivable, gains and losses on equity-method investments, and significant legal-related charges or benefits and associated legal costs. Non-GAAP net income and non-GAAP EPS also exclude certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability, tax provisions/benefits related to the previous items, and significant discrete tax events. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods.

We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures to be helpful in assessing the performance of the ongoing operation of our business. We believe that disclosing non-GAAP financial measures provides useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. We also believe that disclosing non-GAAP financial measures provides useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. More specifically, management adjusts for the excluded items for the following reasons:

Amortization of purchased intangible assets: we do not acquire businesses and assets on a predictable cycle. The amount of purchase price allocated to purchased intangible assets and the term of amortization can vary significantly and are unique to each acquisition or purchase. We believe that excluding amortization of purchased intangible assets allows the users of our financial statements to better review and understand the historic and current results of our operations, and also facilitates comparisons to peer companies.

Acquisition-related expenses and benefits: we incur expenses or benefits with respect to certain items associated with our acquisitions, such as transaction costs, professional fees for assistance with the transaction; valuation or integration costs; changes in the fair value of contingent consideration, gain or loss on settlement of pre-existing relationships with the acquired entity; or adjustments to purchase price. We exclude such expenses or benefits as they are related to acquisitions and have no direct correlation to the operation of our on-going business.

Restructuring, impairment charges, and gains and losses from change in fair market value of equity securities and loan receivable, and gains and losses on equity-method investments: we incur restructuring and impairment charges on individual or groups of employed assets and charges and benefits arising from gains and losses from change in fair market value of equity securities and loan receivable, and gains and losses (including impairments) on equity-method investments, which arise from unforeseen circumstances and/or often occur outside of the ordinary course of our on-going business. Although these events are reflected in our GAAP financials, these unique transactions may limit the comparability of our on-going operations with prior and future periods.

Significant litigation charges or benefits and legal costs: we may incur charges or benefits as well as legal costs in connection with litigation and other contingencies unrelated to our core operations. We exclude these charges or benefits, when significant, as well as legal costs associated with significant legal matters, because we do not believe they are reflective of on-going business and operating results.

Income tax expense: we estimate the tax effect of the excluded items identified above to determine a non-GAAP annual effective tax rate applied to the pretax amount in order to calculate the non-GAAP provision for income taxes. We also adjust for items for which the nature and/or tax jurisdiction requires the application of a specific tax rate or treatment.

From time to time in the future, there may be other items excluded if we believe that doing so is consistent with the goal of providing useful information to investors and management.

Percentage sales growth in currency neutral amounts are calculated by translating prior period sales in each local currency using the current period’s monthly average foreign exchange rates for that currency and comparing that to current period sales.

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

We do not provide a reconciliation of our non-GAAP financial expectations to expectations for the most comparable GAAP measure because the amount and timing of many future charges that impact these measures (such as amortization of future acquisition-related intangible assets, future acquisition-related expenses and benefits, future restructuring charges, future asset impairment charges, future valuation changes of equity-owned securities, future gains and losses on equity-method investments or future legal charges or benefits), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all.

BIO-RAD is a trademark of Bio-Rad Laboratories, Inc.

About Bio-Rad

Bio-Rad Laboratories, Inc. (NYSE: BIO and BIO.B) is a leader in developing, manufacturing, and marketing a broad range of products for the life science research and clinical diagnostics markets. Based in Hercules, California, Bio-Rad operates a global network of research, development, manufacturing, and sales operations with over 7,500 employees, and $2.6 billion in revenues in 2024. Our customers include universities, research institutions, hospitals, and biopharmaceutical companies, as well as clinical, food safety and environmental quality laboratories. Together, we develop innovative, high-quality products that advance science and save lives. To learn more, visit bio-rad.com

Forward-Looking Statements

This release may be deemed to contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements we make regarding estimated future financial performance or results; remaining committed to advancing our growth and margin expansion initiatives; and for the full year 2025: currently expecting non-GAAP, currency-neutral revenue to range from approximately a 1.0 percent decline to a 1.5 percent growth versus its prior revenue growth estimate of approximately 1.5 to 3.5 percent, and an estimated non-GAAP operating margin of approximately 10.0 to 12.0 percent compared to its prior expectation of approximately 13.0 to 13.5 percent. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "expect,” "estimate," "continue," "believe," "anticipate," “target,” "will," "project," "assume," “plan,” “remain,” "may," "intend," or similar expressions or the negative of those terms or expressions, although not all forward-looking statements contain these words. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. These risks and uncertainties include risks relating to our international operations; global economic and geopolitical conditions; tariffs or other trade barriers; reductions in government funding or capital spending of our customers; the uncertain pace of the biopharma sector’s recovery; international legal and regulatory risks; our ability to develop and market new or improved products; our ability to compete effectively; foreign currency exchange fluctuations; supply chain issues; product quality and liability issues; our ability to integrate acquired companies, products or technologies into our company successfully; changes in the healthcare industry; and natural disasters and other catastrophic events beyond our control. For further information regarding the Company's risks and uncertainties, please refer to the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the Company's public reports filed with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 to be filed with the SEC. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Bio-Rad Laboratories, Inc. disclaims any obligation to update these forward-looking statements.

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“We navigated a highly dynamic first quarter that became progressively more challenging, yet we delivered solid margins through focused execution and careful expense management. "