Companies

Varex Imaging Corp

NASDAQ: VREX
$18.47
▼ $0.03 (−0.16%) today
Markets open · 9:45am ET

Q3 2025 Earnings

Reported Aug 7, 2025, 4:24pm ET · SEC source
$0.18
Beat +414.29%
EPS · est. $0.04
$203.0M
Beat +6.66%
Revenue · est. $190.3M
+13.3%
Beating market
VREX vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+20%Aug 7Aug 8report 4:24pm ETearnings+0.7%+20.0%
0+20%Aug 7Aug 8earnings+0.7%+20.0%
VREX +20.0%S&P 500 +0.7%
0+20%Aug 7Aug 8report 4:24pm ETearnings+0.9%+20.0%
0+20%Aug 7Aug 8earnings+0.9%+20.0%
VREX +20.0%NASDAQ +0.9%
−20%0+20%Aug 6Aug 15report 4:24pm ETearnings+1.6%+27.4%
−20%0+20%Aug 6Aug 15earnings+1.6%+27.4%
VREX +27.4%S&P 500 +1.6%
−20%0+20%Aug 6Aug 15report 4:24pm ETearnings+1.3%+27.4%
−20%0+20%Aug 6Aug 15earnings+1.3%+27.4%
VREX +27.4%NASDAQ +1.3%
+21.38%
Day of report
+3.06%
Next session
+14.66%
One week
+15.61%
30 days

S&P 500 over the same 30 days: +2.36%.

Did VREX Beat Earnings? Q3 2025 Results

Varex Imaging delivered a notably strong third quarter for fiscal 2025, with non-GAAP earnings of $0.18 per diluted share clearing the $0.04 consensus estimate by 414.29% and revenue of $203.00 million beating the $190.32 million forecast by 6.66%, even as the top line slipped 2.9% year-over-year. The standout driver was margin discipline, with non-GAAP gross margin widening to 33.5% from 32.5% a year ago, pushing adjusted EBITDA to $28.90 million from $22.80 million in the prior-year quarter. Results came despite a $93.90 million goodwill impairment charge that produced a GAAP net loss of $89.10 million for the period. Industrial segment revenue held firm at $60.90 million, up 1% year-over-year, aided by growing adoption of Varex systems in cargo inspection, while the Medical segment contributed $142.10 million. Analysts have taken note of the momentum, with Wall Street projecting meaningful upside in the shares. Looking ahead, Varex guided Q4 revenue of $210.00 million to $230.00 million and expects approximately 3% full-year sales growth.

Key Takeaways
  • Revenue exceeded the high end of guidance
  • Industrial segment remained strong with cargo inspection system adoption
  • Medical revenue in China better than expectations
  • Non-GAAP gross margin improved to 33.5% from 32.5% year-over-year
  • Non-GAAP operating margin expanded to 8.2% from 7.1% year-over-year

“We are pleased to report that third quarter revenue of $203 million was above the high-end of our guidance. Our Industrial segment remained strong in the quarter and Medical revenue in China was better than our expectations.”

Varex Imaging CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2025, Varex expects revenues between $210 million and $230 million, and non-GAAP net earnings per diluted share between $0.10 and $0.30. Management expects a healthy demand environment for both Medical and Industrial segments to drive sales growth of approximately 3% for the full fiscal year 2025. The company is encouraged by continued adoption of its systems in cargo inspection applications.

VREX YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$60.0M$120.0M$180.0M$209.1M$203.0MRevenue$66.9M$67.5MGross Profit
$0$60.0M$120.0M$180.0MRevenueGross Profit

VREX Revenue by Segment

Medical$142.1M−4.0%
Industrial$60.9M+1.0%

Figures from SEC filings and company reports. Not investment advice.