Exchange: LSE | Sector: Healthcare | Industry: Medical Diagnostics Research
Q3 2025
Published: Oct 27, 2025
Earnings Highlights
Revenue of $698.95M down 4.2% year-over-year
EPS of $0.40 decreased by 48.7% from previous year
Gross margin of 53.6%
Net income of 46.65M
"N/A" - N/A
Revvity Inc (0KHE.L) QQ3 2025 Financial Results â Resilient Diagnostics Leader with Margin Discipline in a Dynamic Healthcare Market
Executive Summary
Revvity Inc delivered a solid Q3 2025 with revenue of $698.9 million, down 4.2% year over year and 3.0% quarter over quarter. The gross margin expanded modestly to 53.6%, reflecting favorable product mix and ongoing efficiency initiatives, while operating margin stood at 11.7% and net margin at 6.7%. Earnings per share were $0.40, supported by an EBITDA of $180.5 million and a robust depreciation and amortization level of $102.1 million. The company continues to generate meaningful operating cash flow per share (~$1.18) and free cash flow per share (~$1.02), underpinning a payout ratio of 17.4% and a cash-rich balance sheet with a cash per share of $7.91. Demand drivers remain anchored in two pillars: Discovery & Analytical Solutions and Diagnostics, with the Diagnostics segment positioned to benefit from growth in genomic workflows, early disease detection, and translational research. Near-term headwinds include a modest revenue pullback in a volatile macro environment and ongoing R&D intensity to sustain innovation pipelines. The absence of formal forward-looking guidance in the provided materials calls for close monitoring of product launches, clinical adoption rates, and capital allocation effectiveness going into 2026.
Earnings: Net income $46.652 million; EPS $0.40; Weighted average shares outstanding 117.735 million.
Leverage and liquidity: Current ratio 1.753; Quick ratio 1.443; Cash ratio 0.762; Debt to capitalization 0.314; Interest coverage ~3.60x; Cash per share $7.91; Operating cash flow per share $1.177; Free cash flow per share $1.020; Dividend payout ratio 17.4%.
Financial Highlights
Summary of core metrics for QQ3 2025 and relevant YoY/QoQ context:
- Revenue: $698.949 million; YoY -4.17%; QoQ -2.96%; Gross margin: 53.6% (0.536); Operating margin: 11.7% (0.117); Net margin: 6.7% (0.067); EBITDA: $180.517 million; EBITDA margin: 25.8% (0.258).
- Cost structure: Cost of revenue $324.345 million; R&D $50.797 million; SG&A $241.911 million; Total operating expenses $292.708 million; D&A $102.061 million; Interest expense $22.771 million.
- Earnings: Net income $46.652 million; EPS $0.40; Weighted average shares outstanding 117.735 million.
- Leverage and liquidity: Current ratio 1.753; Quick ratio 1.443; Cash ratio 0.762; Debt to capitalization 0.314; Interest coverage ~3.60x; Cash per share $7.91; Operating cash flow per share $1.177; Free cash flow per share $1.020; Dividend payout ratio 17.4%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
698.95M
-4.17%
-2.96%
Gross Profit
374.60M
4.15%
-4.57%
Operating Income
81.90M
-38.09%
-9.77%
Net Income
46.65M
-50.91%
-15.52%
EPS
0.40
-48.72%
-14.89%
Key Financial Ratios
currentRatio
1.75
grossProfitMargin
53.6%
operatingProfitMargin
11.7%
netProfitMargin
6.67%
returnOnAssets
0.38%
returnOnEquity
0.63%
debtEquityRatio
0.46
operatingCashFlowPerShare
$1.18
freeCashFlowPerShare
$1.02
dividendPayoutRatio
17.4%
priceToBookRatio
1.34
priceEarningsRatio
53.12
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript insights unavailable in the provided data. No earnings call quotes or themes were supplied within the input. Key qualitative signals cannot be corroborated from the transcript at this time. Note: if transcript text becomes available, we will update with management themes such as strategy execution, pipeline progress, and market conditions grouped by topic with relevant quotes.
N/A
â N/A
N/A
â N/A
Forward Guidance
No formal forward guidance was included in the provided materials. Given the two-segment structure (Discovery & Analytical Solutions and Diagnostics) and the favorable long-cycle demand drivers in genomics, immunodiagnostics, and analytical workflows, Revvity typically benefits from continued R&D investment, product refresh cycles, and expanded installed base. Investors should monitor: (1) cadence and success of new instrument platforms and assays; (2) uptake in genomic and translational research applications; (3) currency and macroeconomic impacts on life sciences budgets; (4) cash conversion efficiency and capital allocation (M&A vs internal investment). In absence of explicit targets, a prudent overlay is to assess quarterly progression toward sustained gross margin expansion, stable double-digit operating margins, and corroborated free cash flow growth.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0KHE.L Focus
53.60%
11.70%
0.63%
53.12%
0LWG.L
29.70%
5.35%
0.28%
220.56%
0JT5.L
49.00%
33.10%
14.00%
16.76%
0HUR.L
22.00%
11.40%
1.59%
32.22%
0LTI.L
57.70%
29.00%
10.10%
33.11%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Base case thesis: Revvity remains a defensible growth proxy in the diagnostics and life sciences research segment, backed by a strong margin profile and robust cash generation. The stock may trade at a premium given its earnings quality, cash conversion, and modest dividend coverage. Catalysts include successful new platform introductions, higher uptake of genomic and translational research solutions, and potential strategic actions that monetize the R&D pipeline without sacrificing balance sheet integrity. Risks include near-term revenue volatility and execution of product cycles. Monitor quarterly revenue trajectory, pipeline progress, and cost discipline to confirm a sustainable path toward higher operating leverage and free cash flow acceleration.
Key Investment Factors
Growth Potential
- Large addressable markets in diagnostics and life sciences research; steady demand for genomic workflows, early disease detection, and translational research tools; potential upside from new platform launches and software subscriptions in informatics and analytics.
- Positive cash generation (operating cash flow per share of ~1.18 and free cash flow per share of ~1.02) supports reinvestment, debt management, and capital returns intent.
Profitability Risk
- Revenue declined YoY and QoQ, exposing near-term sensitivity to macro volatility and budget cycles in healthcare and life sciences.
- R&D intensity remains high; sustained profitability depends on successful product adoption and portfolio diversification.
- Competitive intensity and currency exposure in a cross-border listing environment could compress margins or affect pricing power.
- Dependence on large, multi-year contracts and government or institutional spending cycles can introduce volatility.
Financial Position
- Strong liquidity indicators: current ratio 1.753 and cash per share $7.91; manageable leverage with debt/capitalization at ~0.314 and interest coverage around 3.6x.
- Healthy gross margin around mid-50s and solid EBITDA margin (~25.8%), supporting ongoing investment in R&D and platform development while preserving cash generation.
SWOT Analysis
Strengths
Diversified product portfolio across two durable segments (Discovery & Analytical Solutions and Diagnostics).
Solid gross margin and EBITDA generation indicating operating efficiency and pricing power.
Strong cash generation per share and conservative balance sheet metrics (low debt burden, healthy liquidity).
Weaknesses
Top-line decline YoY suggests sensitivity to macro conditions and potential exposure to project-based demand in life sciences.
R&D intensity requires sustained investment and may pressure near-term profitability if pipeline momentum falters.
Opportunities
Growth in genomic workflows, companion diagnostics, and precision medicine could broaden addressable markets.
Expansion of software/informatics subscriptions and data analytics offerings to complement hardware sales.
Threats
Competition from established players and emerging startups in diagnostics and life sciences instrumentation.
Regulatory changes, budget constraints, and currency headwinds impacting international revenues.