Tue, May 6, 8:59 PM (12 days ago)
**Masimo Corporation (MASI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $372.0 million, up 9.5% YoY. - **Gross Profit:** $234.0 million, up 13.3% YoY. - **Operating Income:** $78.0 million, up 46.9% YoY. - **Net Loss:** $(170.7) million, down from a profit of $18.9 million YoY. - **EPS:** $(3.17) diluted, down from $0.36 YoY. **Profit Margins:** - **Gross Margin:** 62.9%, up from 60.8% YoY. - **Operating Margin:** 21.0%, up from 15.6% YoY. **Cash Flow:** - **Operating Cash Flow:** $37.9 million, down from $38.6 million YoY. - **Investing Cash Flow:** $15.5 million, up from $(10.8) million YoY. - **Financing Cash Flow:** $(47.0) million, down from $(26.1) million YoY. **Earnings Changes:** - **Revenue Growth:** Driven by timing of shipments and large tender contract renewal. - **Gross Profit Increase:** Due to operational efficiencies and product cost reductions. - **Operating Income Growth:** Despite higher legal and professional fees, offset by lower compensation and marketing costs. - **Net Loss:** Primarily due to impairment charges in discontinued operations. **Quarterly Performance Discussion:** - **Revenue:** Increased due to timing of shipments and large tender contract renewal. - **Gross Profit:** Improved due to operational efficiencies and product cost reductions. - **Operating Income:** Increased despite higher legal fees, offset by lower compensation and marketing costs. - **Net Loss:** Driven by impairment charges in discontinued operations. **Trends & Uncertainties:** - **Economic Trends:** Supply chain volatility, inflation, interest rates, energy costs, recession, and foreign currency fluctuations. - **Tariffs:** Potential impact on costs and pricing. - **Seasonality:** Lower revenues in Q3 due to summer vacation schedules. - **Conflicts:** Monitoring uncertainty from Russia-Ukraine and Israel-Palestine-Iran wars. - **Executive Leadership:** Changes in CEO and board members. **Future Operations Impact:** - **Sale of Non-Healthcare Business:** Expected to close by end of 2025. - **Cybersecurity Incident:** Temporary impact on manufacturing and order processing. - **Stock Repurchase Program:** $5.0 million shares available for repurchase. **Discontinued Operations:** - **Non-Healthcare Business:** Classified as held-for-sale, reported as discontinued operations. - **Impairment Charges:** $295.0 million in impairment charges. **Liquidity & Capital Resources:** - **Working Capital:** $637.5 million, with $130.8 million in cash and cash equivalents. - **Credit Facility:** $321.2 million available borrowing capacity. **Market Risk:** - **Interest Rate Risk:** Managed through hedging activities. - **Foreign Currency Risk:** Exposure to Euro, British Pound, and Mexican Peso. - **Inflation Risk:** Impact on commodity prices, labor costs, and transportation. **Legal Proceedings:** - **Ongoing Litigations:** Apple, Politan, and other shareholder disputes. - **Cybersecurity Incident:** Investigation and remediation ongoing. **Stock-Based Compensation:** - **Total Expense:** $9.1 million, up from $8.7 million YoY. **Segment Reporting:** - **Healthcare Segment:** Primary focus, with gross profit of $234.1 million. **Subsequent Events:** - **Sale of Non-Healthcare Business:** Definitive agreement with HARMAN International. - **Cybersecurity Incident:** Ongoing investigation and remediation. **Ticker:** MASI