Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q3 2025 Earnings Presentation
21 slides from Varex Imaging's earnings presentation, Aug 7, 2025
Slide 1: Making the Invisible Visible: Q3 FY25 Earnings Presentation
Making the Invisible Visible Q3 FY25 Earnings Presentation August 7, 2025 8/7/2025 1
Slide 2: Forward Looking Statements / Non-GAAP Measures
Forward Looking Statements / Non-GAAP Measures Forward Looking Statements This supplement contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning financial results; earnings guidance; tariffs and trade wars and their imp
Slide 3: Q3 FY25 Results
Q3 FY25 Results Non-GAAP Non-GAAP Cash, Cash Equiv., Revenue Gross Margin1 EPS1 & Mkt. Sec.2 $203M $153M 34% $0.18 Industrial segment strength continued Strong gross margin despite tariff headwinds Paid off $200M convertible notes on June 2 1 Non-GAAP. For a reconciliation to the most directly
Slide 4: Q3 FY25 Performance
Q3 FY25 Performance Revenue (Y/Y) Gross Margin (Non-GAAP; Adjusted EBITDA (Y/Y) Y/Y) $209 $29 $203 34% $23 32% -3% +100bps1 +27% Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Diluted EPS (Non-GAAP; Cash, Cash Equiv. & Mkt. Y/Y) Sec.2 (Q/Q) $0.18 $226 Cash used to $0.14 pay down convertible debt $153 on
Slide 5: Q3 FY25 Sales Performance
Q3 FY25 Sales Performance1 CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 1Sales performance is Q3FY25 sales compared to five quarter average trend 8/7/2025 5
Slide 6: Vertically Integrated Cargo Security Systems Provider
Vertically Integrated Cargo Security Systems Provider Linear Detector Arrays Linear Accelerator ACTIS 6 Software Suite Leveraging Competency as Core Component Supplier to Deliver Cargo Security Systems Direct to End Customer 8/7/2025 6
Slide 7: Q3 FY25 Revenue Details
Q3 FY25 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $61 $62 $71 $142 $70 Medical Industrial Americas EMEA APAC Revenue, $M Q3 25 Q2 25 Q1 25 Q4 24 Q3 24 Revenue, $M Q3 25 Q2 25 Q1 25 Q4 24 Q3 24 Medical 142 154 145 144 149 Americas 71 69 65 66 70 Industrial 61 59 55 61
Slide 8: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q3 FY25 Q2 FY25 Q3 FY24 Revenue $203 $213 $209 Gross Margin 33% 36% 32% $148 $55 $58 Operating Expenses 73% 26% 28% ($81) $22 $9 Operating Income (40%) 10% 4% Net Earnings ($89) $7 $1 EPS, diluted ($2.15) $0.17 $0.03 Avg. shares, diluted
Slide 9: Quarterly Results – Non-GAAP
Quarterly Results – Non-GAAP1 $ in Millions, except per share data Q3 FY25 Q2 FY25 Q3 FY24 Revenue $203 $213 $209 Gross Margin (Non-GAAP) 34% 36% 32% $51 $51 $53 Operating Expenses (Non-GAAP) 25% 24% 25% $17 $26 $15 Operating Income (Non-GAAP) 8% 12% 7% Net Earnings (Non-GAAP) $8 $12 $6 EPS, diluted
Slide 10: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q3 FY25 Q2 FY25 Q3 FY24 Assets Cash, Cash Equiv., Mkt. Sec. & CDs1 $153 $226 $192 Accounts Receivable, net $137 $146 $152 Inventories, net $299 $285 $282 Total Assets $1,073 $1,358 $1,253 Liabilities Accounts Payable $71 $71 $68 Total Debt, net $368 $567 $443
Slide 11: Select Debt and Cash Flow Statement Data
Select Debt and Cash Flow Statement Data $ in Millions Q3 FY25 Q2 FY25 Q3 FY24 Debt Gross Debt1 $370 $570 $447 (Ratings: Moody’s B2 / S&P BB-) Net Debt2 $217 $219 $255 Adjusted EBITDA3 Adjusted EBITDA $29 $34 $23 Adjusted EBITDA (TTM) $110 $103 $105 Net debt leverage (TTM) 2.0x 2.1x 2.4x Cash Flow S
Slide 12: Guidance Q4 FY25
Guidance Q4 FY25 Revenue Non-GAAP EPS, diluted $210 - $230M $0.10 - $0.30 Gross Margin: 32% – 33% Operating Expense: ~$51M Assumptions Interest & Other Expense, net: ($9M) – ($10M) Tax rate: ~25% Share count, diluted: ~42M shares 8/7/2025 12
Slide 13: Q&A
Making the Invisible Visible Q&A 8/7/2025 13
Slide 14: Non-GAAP Reconciliation
Making the Invisible Visible Non – GAAP Reconciliation 8/7/2025 14
Slide 15: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Nine Months Ended (In millions) July 4, 2025 June 28, 2024 July 4, 2025 June 28, 2024 GROSS PROFIT RECONCILIATION Revenues, net $ 203.0 $ 209.1 $ 615.7 $ 605.3 Gross profit 67.5 66.9 212.7 189.8 Amortization o
Slide 16: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Nine Months Ended (In millions) July 4, 2025 June 28, 2024 July 4, 2025 June 28, 2024 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling, general, and administrative $ 32.9 $ 35.6 $ 99.3 $ 103.
Slide 17: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Nine Months Ended (In millions) July 4, 2025 June 28, 2024 July 4, 2025 June 28, 2024 OPERATING (LOSS) INCOME RECONCILIATION Operating (loss) income $ (80.7) $ 9.3 $ (47.4) $ 21.2 Amortization of intangible as
Slide 18: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) July 4, 2025 June 28, 2024 July 4, 2025 June 28, 2024 (LOSS) INCOME BEFORE TAXES RECONCILIATION (Loss) income before taxes $ (86.6) $ 0.8 $ (73.3) $ 2.
Slide 19: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Nine Months Ended (In millions) July 4, 2025 June 28, 2024 July 4, 2025 June 28, 2024 ADJUSTED EBITDA RECONCILIATION Net (loss) income attributable to Varex $ (89.1) $ 1.4 $ (82.5) $ 2.3 Interest expense 9.4 7
Slide 20: Discussion of Non–GAAP Financial Measures
Discussion of Non–GAAP Financial Measures This press release includes non-GAAP financial measures derived from our Condensed Consolidated Statements of Operations. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles, or GAA
Slide 21: Making the Invisible Visible
Making the Invisible Visible