Slide 1: Making the Invisible Visible: Q1 FY26 Earnings Presentation
Making the Invisible Visible Q1 FY26 Earnings Presentation February 10, 2026 2/10/2026 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 unaudited financial results; revenue and earnings guidance; industry or bu
Slide 3: Q1 FY26 Results
Q1 FY26 Results Non-GAAP Non-GAAP Cash, Cash Equiv., Revenue Gross Margin1 Diluted EPS1 & Mkt. Sec.2 $210M $126M 34% $0.19 Medical sales stable y/y, CT sales remain strong Industrial sales up 17% y/y, cargo security momentum continues Gross margin remained strong driven primarily by product mi
Slide 4: Q1 FY26 Performance
Q1 FY26 Performance Revenue (Y/Y) Gross Margin (Non-GAAP; Adjusted EBITDA1 (Non- Y/Y) GAAP Y/Y) $210 $200 35% 34% $29 $26 +5% -90bps +12% Q1FY25 Q1FY26 Q1FY25 Q1FY26 Q1FY25 Q1FY26 Diluted EPS1 (Non-GAAP; Cash, Cash Equiv. & Mkt. Y/Y) Sec.2 (Q/Q) $155 $126 $0.19 $0.10 +90% -19% Q1FY25 Q1FY26 Q4FY25 Q
Slide 5: Q1 FY26 Sales Performance
Q1 FY26 Sales Performance1 CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 1Sales performance is Q1FY26 sales compared to five quarter average trend 2/10/2026 5
Slide 6: RSNA 2025: Advancing System-Level Partnerships
RSNA 2025: Advancing System-Level Partnerships • Record customer engagement focused on design-in pipeline • Debuted integrated, modality-based value proposition • Customer alignment reinforces long-term growth opportunities 2/10/2026 / 6
Slide 7: Q1 FY26 Revenue Details
Q1 FY26 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $65 $70 $75 $145 $65 Medical Industrial Americas EMEA APAC Revenue ($M) Q1 26 Q4 25 Q3 25 Q2 25 Q1 25 Revenue ($M) Q1 26 Q4 25 Q3 25 Q2 25 Q1 25 Medical 145 152 142 154 145 Americas 75 72 71 69 65 Industrial 65 77 61
Slide 8: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q1 FY26 Q4 FY25 Q1 FY25 Revenue $210 $229 $200 Gross Margin 33% 34% 34% $54 $58 $57 Operating Expenses 26% 25% 29% $15 $20 $11 Operating Income (Loss) 7% 9% 6% Net Earnings (Loss) $2 $12 ($0) EPS, diluted $0.05 $0.29 ($0.01) Avg. shares,
Slide 9: Quarterly Results – Non-GAAP
Quarterly Results – Non-GAAP1 $ in Millions, except per share data Q1 FY26 Q4 FY25 Q1 FY25 Revenue $210 $229 $200 Gross Margin (Non-GAAP) 34% 34% 35% $52 $55 $55 Operating Expenses (Non-GAAP) 25% 24% 27% $19 $23 $14 Operating Income (Non-GAAP) 9% 10% 7% Net Earnings (Non-GAAP) $8 $15 $4 EPS, diluted
Slide 10: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q1 FY26 Q4 FY25 Q1 FY25 Assets Cash, Cash Equiv., Mkt. Sec. & CDs* $126 $155 $219 Accounts Receivable, net $147 $157 $138 Inventories, net $328 $299 $280 Total Assets $1,098 $1,107 $1,332 Liabilities Accounts Payable $79 $70 $66 Total Debt, net $368 $368 $567
Slide 11: Select Debt and Cash Flow Statement Data
Select Debt and Cash Flow Statement Data $ in Millions Q1 FY26 Q4 FY25 Q1 FY25 Debt Gross Debt1 $370 $370 $571 (Ratings: Moody’s B2 / S&P B+) Net Debt2 $244 $215 $228 Adjusted EBITDA3 Adjusted EBITDA $29 $35 $26 Adjusted EBITDA (TTM) $127 $124 $97 Net Debt Leverage (TTM) 1.9x 1.7x 2.4x Cash Flow Sta
Slide 12: Guidance Q2 FY26
Guidance Q2 FY26 Revenue Non-GAAP EPS, diluted $210 - $225M $0.15 - $0.25 Gross Margin: 33% – 34% Operating Expense: ~$52M Assumptions Interest & Other Expense, net: ($7M) – ($8M) Tax rate: ~23% Share count, diluted: ~42M shares 2/10/2026 12
Slide 13: Q&A
Making the Invisible Visible Q&A 2/10/2026 13
Slide 14: Non-GAAP Reconciliation
Making the Invisible Visible Non – GAAP Reconciliation 2/10/2026 14
Slide 15: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended (In millions) January 2, 2026 January 3, 2025 GROSS PROFIT RECONCILIATION Revenues, net $ 209.6 $ 199.8 Gross profit 69.8 68.5 Amortization of intangible assets 0.6 0.5 Non-GAAP gross profit $ 70.4 $ 69.0 Gros
Slide 16: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended (In millions) January 2, 2026 January 3, 2025 SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling, general, and administrative $ 32.7 $ 33.8 Amortization of intangible assets 0.4 0.4 Restructur
Slide 17: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended (In millions) January 2, 2026 January 3, 2025 OPERATING INCOME RECONCILIATION Operating income $ 15.4 $ 11.2 Amortization of intangible assets (includes amortization impacts to cost of revenues) 1.0 0.9 Restru
Slide 18: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended (In millions, except per share amounts) January 2, 2026 January 3, 2025 INCOME BEFORE TAXES RECONCILIATION Income before taxes $ 3.8 $ 2.5 Total operating income adjustments 3.5 3.2 Loss from equity-method inv
Slide 19: Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation between GAAP and Non-GAAP Financial Measures (Unaudited) Three Months Ended (In millions) January 2, 2026 January 3, 2025 ADJUSTED EBITDA RECONCILIATION Net income (loss) attributable to Varex $ 2.3 $ (0.3) Interest expense 7.9 7.9 Income tax expense 1.4 2.6 Depreciation 5.7 6.2 Amort
Slide 20: 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) INCOME BEFORE TAXES RECONCILIATION (In millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Non-GA
Slide 21: 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 22: Making the Invisible Visible
Making the Invisible Visible