Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q2 2026 Earnings Presentation
21 slides from Varex Imaging's earnings presentation, May 7, 2026
Slide 1: Making the Invisible Visible
Making the Invisible Visible Q2 FY26 Earnings Presentation May 7, 2026 5/7/2026 1
Slide 2: Forward Looking Statements / Non-GAAP Measures
Forward Looking Statements / Non-GAAP Measures Forward Looking Statements This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning unaudited financial results; revenue and earnings guidance; industry or
Slide 3: Q2 FY26 Results
Q2 FY26 Results Non-GAAP Non-GAAP Cash, Cash Equiv., Revenue Gross Margin1 Diluted EPS1 & Mkt. Sec.2 $216M $88M 34% $0.21 Medical sales up 2% y/y, strong global CT sales Industrial sales up 1% y/y, driven by cargo and photon counting Gross margin benefited from photon counting sales Cash bal
Slide 4: Q2 FY26 Sales Performance
Q2 FY26 Sales Performance1 CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 1Sales performance is Q2FY26 sales compared to five quarter average trend 5/7/2026 4
Slide 5: Q2 FY26 Performance
Q2 FY26 Performance Revenue (Y/Y) Gross Margin (Non-GAAP; Adjusted EBITDA1 (Non- $213 $216 Y/Y) GAAP Y/Y) 36% $36 34% $27 +1% -240bps -25% Q2 FY25 Q2 FY26 Q2FY25 Q2FY26 Q2FY25 Q2FY26 Diluted EPS1 (Non-GAAP; Cash, Cash Equiv. & Mkt. Y/Y) Sec.2 (Q/Q) $0.31 $126 $88 $0.21 -32% -30% Q2FY25 Q2FY26 Q1FY26
Slide 6: Q2 FY26 Revenue Details
Q2 FY26 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $60 $77 $79 $156 $60 Medical Industrial Americas EMEA APAC Revenue ($M) Q2 26 Q1 26 Q4 25 Q3 25 Q2 25 Revenue ($M) Q2 26 Q1 26 Q4 25 Q3 25 Q2 25 Medical 156 145 152 142 154 Americas 79 75 72 71 69 Industrial 60 65 77
Slide 7: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q2 FY26 Q1 FY26 Q2 FY25 Revenue $216 $210 $213 Gross Margin 34% 33% 36% $58 $54 $55 Operating Expenses 27% 26% 26% $14 $15 $22 Operating Income (Loss) 7% 7% 10% Net Earnings (Loss) ($8) $2 $7 EPS, diluted ($0.19) $0.05 $0.16 Avg. shares,
Slide 8: Quarterly Results – Non-GAAP
Quarterly Results – Non-GAAP1 $ in Millions, except per share data Q2 FY26 Q1 FY26 Q2 FY25 Revenue $216 $210 $213 Gross Margin (Non-GAAP) 34% 34% 36% $54 $52 $51 Operating Expenses (Non-GAAP) 25% 25% 24% $19 $19 $26 Operating Income (Non-GAAP) 9% 9% 12% Net Earnings (Non-GAAP) $9 $8 $15 EPS, diluted
Slide 9: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q2 FY26 Q1 FY26 Q2 FY25 Assets Cash, Cash Equiv., Mkt. Sec. & CDs* $88 $126 $226 Accounts Receivable, net $148 $147 $146 Inventories, net $347 $328 $285 Total Assets $1,089 $1,098 $1,358 Liabilities Accounts Payable $96 $79 $71 Total Debt, net $348 $368 $567 T
Slide 10: Select Debt and Cash Flow Statement Data
Select Debt and Cash Flow Statement Data $ in Millions Q2 FY26 Q1 FY26 Q2 FY25 Debt Gross Debt1 $351 $370 $570 (Ratings: Moody’s B2 / S&P B+) Net Debt2 $263 $244 $219 Adjusted EBITDA3 Adjusted EBITDA $27 $29 $36 Adjusted EBITDA (TTM) $118 $127 $107 Net Debt Leverage (TTM) 2.2x 1.9x 2.1x Cash Flow St
Slide 11: Guidance
Guidance Q3 FY26 Fiscal Year 2026 Revenue Non-GAAP EPS, diluted Revenue Non-GAAP EPS, diluted $210 - $225M $0.15 - $0.30 $860 - $880M $0.80 - $1.00 Gross Margin: 33% – 34% Gross Margin: 33% – 34% Operating Expense: ~$54M Operating Expense: ~$213M Assumptions Interest & Other Expense, net: ($6M)–($7M
Slide 12: Q&A
Making the Invisible Visible Q&A 5/7/2026 12
Slide 13: Non-GAAP Reconciliation
Making the Invisible Visible Non – GAAP Reconciliation 5/7/2026 13
Slide 14: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Six Months Ended (In millions) April 3, 2026 April 4, 2025 April 3, 2026 April 4, 2025 GROSS PROFIT RECONCILIATION Revenues, net $ 216.0 $ 212.9 $ 425.6 $ 412.7 Gross profit 72.6 76.7 142.4 145.2 Amortization
Slide 15: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Six Months Ended (In millions) April 3, 2026 April 4, 2025 April 3, 2026 April 4, 2025 SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling, general, and administrative $ 36.0 $ 32.6 $ 68.7 $ 66
Slide 16: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Six Months Ended (In millions) April 3, 2026 April 4, 2025 April 3, 2026 April 4, 2025 OPERATING INCOME RECONCILIATION Operating income $ 14.4 $ 22.1 $ 29.8 $ 33.3 Amortization of intangible assets (includes a
Slide 17: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Six Months Ended (In millions, except per share amounts) April 3, 2026 April 4, 2025 April 3, 2026 April 4, 2025 (LOSS) INCOME BEFORE TAXES RECONCILIATION (Loss) income before taxes $ (6.4) $ 10.8 $ (2.6) $ 13
Slide 18: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended Six Months Ended (In millions) April 3, 2026 April 4, 2025 April 3, 2026 April 4, 2025 ADJUSTED EBITDA RECONCILIATION Net (loss) income attributable to Varex $ (8.1) $ 6.9 $ (5.8) $ 6.6 Interest expense 7.8 10
Slide 19: Reconciliation of 2025 Non-GAAP Financial Information to Updated Policy
Reconciliation of 2025 Non-GAAP Financial Information As Previously Reported to 2025 Non-GAAP Financial Results as per Updated Policy - Excluding gains and losses from equity-method investments(Unaudited) 5/7/2026 19
Slide 20: Discussion of Non–GAAP Financial Measures
Discussion of Non–GAAP Financial Measures This presentation includes non-GAAP financial measures derived from the company’s Condensed Consolidated Statements of Operations. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principle
Slide 21: Making the Invisible Visible
Making the Invisible Visible