QuidelOrtho Corporation

Total revenue was $631 million in Q2 2026, up 2% year over year on a constant-currency basis. Revenue outside China increased 6%, while China revenue declined 23%; by segment, labs outside China grew 9%, immunohematology outside China increased 5%, and Triage grew 9%. Adjusted gross margin was 44.4%, down 130 basis points year over year. Adjusted EBITDA was $129 million, up 21%, and adjusted EPS was $0.13. For the full year 2026, the company now expects revenue of $2.52 billion to $2.6 billion, adjusted EBITDA of $540 million to $560 million, adjusted EBITDA margin of 21% to 22%, and adjusted EPS of $0.65 to $0.90. Free-cash-flow guidance was withdrawn.

Brian Blaser emphasized that the core business remains strong despite significant headwinds in China and a softer respiratory environment. He said the company is taking aggressive mitigation actions, protecting the installed base, and aligning commercial resources to the evolving reimbursement environment in China. He also highlighted progress on Neulixa, saying manufacturing scale-up, supply-chain readiness, and launch capabilities are advancing and that customer engagement has been encouraging.

Micah Young said he sees opportunities to improve execution, cash conversion, and leverage, and outlined priorities including working-capital improvement, reducing inventory tied up in the business, optimizing instrument investment returns, rationalizing capex, and directing capital to higher-return geographies and businesses. He reported $123 million in cash, $250 million in revolver borrowings, negative operating cash flow of $111 million, and negative free cash flow of $136 million in Q2, including a $25 million Grifols termination payment; he also noted $97 million of cash used for the Lex acquisition and net debt leverage of 4.3x adjusted EBITDA. He said updated guidance reflects persistent China pressure and a cautious respiratory assumption, and explained that free-cash-flow guidance was withdrawn because of uncertainty around market conditions and working-capital impacts.

Analysts pressed management on balance-sheet leverage, prompting Micah Young to say the company is focused on working capital, inventory reduction, instrument-investment returns, capex discipline, and capital allocation toward the highest-return areas. Jack Meehan also asked about the Financial Times report on a possible point-of-care sale; Brian Blaser declined to comment on rumors but said the board and management regularly evaluate portfolio options to maximize long-term shareholder value. On respiratory demand, management said U.S. positivity rates are much lower than last year and Southern Hemisphere data has been weaker, leading them to adopt a more conservative forecast.