Varex Imaging Corporation · NASDAQ:VREX

Varex Imaging — Q2 2025 Earnings Presentation

22 slides from Varex Imaging's earnings presentation, May 8, 2025

1. Slide 1: Making the Invisible Visible: Q2 FY25 Earnings Presentation

   Making the Invisible Visible Q2 FY25 Earnings Presentation May 8, 2025 5/8/2025 1

2. 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

3. Slide 3: Q2 FY25 Results

   Q2 FY25 Results Non-GAAP Non-GAAP Cash, Cash Equiv., Revenue Gross Margin1 EPS1 & Mkt. Sec.2 $213M $226M 36% $0.26  Both segments saw strong demand in the quarter  Gross margin expansion due to positive Medical sales mix  Cash generation remained strong 1 Non-GAAP. For a reconciliation to the mos

4. Slide 4: Q2 FY25 Year-over-Year Performance

   Q2 FY25 Year-over-Year Performance Revenue Gross Margin - Non-GAAP Adjusted EBITDA $34 $213 36% $206 $25 33% +3% +350bps +38% Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Diluted EPS - Non-GAAP Cash, Cash Equiv. & Mkt. Sec.* $0.26 $226 $190 $0.16 +63% +19% Q2FY24 Q2FY25 Q2FY24 Q2FY25 Note: $millions ex

5. Slide 5: Q2 FY25 Sales Performance

   Q2 FY25 Sales Performance1 CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 1Sales performance is Q2FY25 sales compared to five quarter average trend 5/8/2025 5

6. Slide 6: Q2 FY25 Revenue Details

   Q2 FY25 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $59 $72 $69 $154 $72 Medical Industrial Americas EMEA APAC Revenue, $M Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 Revenue, $M Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 Medical 154 145 144 149 149 Americas 69 65 66 70 68 Industrial 59 55 61 60

7. Slide 7: Quarterly Results - GAAP

   Quarterly Results - GAAP $ in Millions, except per share data Q2 FY25 Q1 FY25 Q2 FY24 Revenue $213 $200 $206 Gross Margin 36% 34% 32% $55 $57 $58 Operating Expenses 26% 29% 28% $22 $11 $8 Operating Income 10% 6% 4% Net Earnings $7 ($0) $1 EPS, diluted $0.17 ($0.01) $0.03 Avg. shares, diluted 51.2 41

8. Slide 8: Quarterly Results – Non-GAAP

   Quarterly Results – Non-GAAP1 $ in Millions, except per share data Q2 FY25 Q1 FY25 Q2 FY24 Revenue $213 $200 $206 Gross Margin (Non-GAAP) 36% 35% 33% $51 $55 $54 Operating Expenses (Non-GAAP) 24% 27% 26% $26 $14 $13 Operating Income (Non-GAAP) 12% 7% 6% Net Earnings (Non-GAAP) $12 $3 $7 EPS, diluted

9. Slide 9: Select Balance Sheet Data

   Select Balance Sheet Data $ in Millions Q2 FY25 Q1 FY25 Q2 FY24 Assets Cash, Cash Equiv., & Mkt. Sec.1 $226 $219 $190 Accounts Receivable, net $146 $138 $152 Inventories, net $285 $280 $286 Total Assets $1,358 $1,332 $1,252 Liabilities Accounts Payable $71 $66 $69 Total Debt, net $567 $567 $443 Tota

10. Slide 10: Select Debt and Cash Flow Statement Data

    Select Debt and Cash Flow Statement Data $ in Millions Q2 FY25 Q1 FY25 Q2 FY24 Debt Gross Debt1 $570 $571 $447 (Ratings: Moody’s B2 / S&P BB-) Net Debt2 $219 $228 $257 Adjusted EBITDA3 Adjusted EBITDA $34 $24 $25 Adjusted EBITDA (TTM) $103 $94 $120 Net debt leverage (TTM) 2.1x 2.4x 2.1x Cash Flow St

11. Slide 11: Guidance Q3 FY25

    Guidance Q3 FY25 Revenue Non-GAAP EPS, diluted $180 - $200M ($0.05) - $0.10 Gross Margin: 32% – 33% Operating Expense: ~$51M Assumptions Interest & Other Expense, net: ($9M) – ($10M) Tax rate: ~25% Share count, diluted: ~41M shares 5/8/2025 11

12. Slide 12: Q&A

    Making the Invisible Visible Q&A 5/8/2025 12

13. Slide 13: Non-GAAP Reconciliation

    Making the Invisible Visible Non – GAAP Reconciliation 5/8/2025 13

14. 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, except per share amounts) April 4, 2025 March 29, 2024 April 4, 2025 March 29, 2024 GROSS PROFIT RECONCILIATION Revenues, net $ 212.9 $ 206.2 $ 412.7 $ 396.2 Gross profit 76.7 65

15. 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, except per share amounts) April 4, 2025 March 29, 2024 April 4, 2025 March 29, 2024 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling, general, and administrativ

16. 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, except per share amounts) April 4, 2025 March 29, 2024 April 4, 2025 March 29, 2024 OPERATING INCOME RECONCILIATION Operating income $ 22.1 $ 7.7 $ 33.3 $ 11.9 Amortization of in

17. 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 4, 2025 March 29, 2024 April 4, 2025 March 29, 2024 INCOME BEFORE TAXES RECONCILIATION Income before taxes $ 10.8 $ 2.3 $ 13.3 $ 1.7 Total operati

18. 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, except per share amounts) April 4, 2025 March 29, 2024 April 4, 2025 March 29, 2024 ADJUSTED EBITDA RECONCILIATION Net income attributable to Varex $ 6.9 $ 1.4 $ 6.6 $ 0.9 Intere

19. Slide 19: Effect of Convertible Note Hedge and Warrants on Non-GAAP Diluted Share Count

    Effect of Convertible Note Hedge and Warrants on Non-GAAP Diluted Share Count Impact of Warrants and Convertible Note Hedge at Various Share Prices Shares added back for non- GAAP related to convertible Impact of Warrants on GAAP note hedge Share Price* Diluted Shares Non-GAAP Diluted Shares $20.00

20. Slide 20: Illustrative Impact of ASU 2020-06

    Illustrative Impact of ASU 2020-06 Quarterly ASU 2020-06 Share Count Illustration GAAP NON-GAAP* Net Income before Incremental Dilutive Net Income before effect of Add-back of After-tax Shares for EPS effect of Add-back of After-tax Incremental Dilutive Convertible Notes ($M) Interest Expense Calcul

21. Slide 21: 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

22. Slide 22: Making the Invisible Visible

    Making the Invisible Visible

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