Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Instruments Supplies
Q2 2025
Published: May 30, 2025
Earnings Highlights
Revenue of $1.00B up 6.3% year-over-year
EPS of $0.44 decreased by 2.5% from previous year
Gross margin of 62.8%
Net income of 87.70M
"'I want to emphasize our prioritization on debt reduction while evaluating share repurchases simultaneously,' said Brian Andrews, CFO." - Brian Andrews
The Cooper Companies Inc (COO) Q2 2025 Financial Results: Steady Growth in a Dynamic Market
Executive Summary
For Q2 2025, The Cooper Companies Inc reported robust financial results highlighted by a consolidated revenue of $1.002 billion, up 6% year-over-year and a strong operational performance across both of its segments, CooperVision and CooperSurgical. Organic revenue growth was particularly impressive, standing at 7%, indicative of the company's growth strategy and market share gains. CooperVision's revenue reached $670 million, growing 5% overall, while CooperSurgical increased to $333 million, up 8% organically. Management emphasized successful product launches in the competitive contact lens market and operational efficiencies that enhanced margins, despite facing a complex global environment. The company maintained a confident outlook with revised revenue guidance for the fiscal year, underscoring its strategic initiatives for future growth.
Key Performance Indicators
Revenue
1.00B
QoQ: 3.90% | YoY:6.33%
Gross Profit
629.30M
62.79% margin
QoQ: -4.68% | YoY:8.33%
Operating Income
184.80M
QoQ: 1.54% | YoY:14.29%
Net Income
87.70M
QoQ: -15.92% | YoY:-1.35%
EPS
0.44
QoQ: -15.63% | YoY:-2.51%
Revenue Trend
Margin Analysis
Key Insights
Q2 2025 Revenue: $1.002 billion (YoY growth of 6.33%).
CooperVision Revenue: $670 million (up 5%).
CooperSurgical Revenue: $333 million (up 8% organically).
Gross Profit Margin: 62.93%, improved from previous year due to operational efficiencies.
Operating Income: $184.8 million, up 14.29% YoY.
Financial Highlights
Revenue Trends:
- Q2 2025 Revenue: $1.002 billion (YoY growth of 6.33%).
- CooperVision Revenue: $670 million (up 5%).
- CooperSurgical Revenue: $333 million (up 8% organically).
Profitability Metrics:
- Gross Profit Margin: 62.93%, improved from previous year due to operational efficiencies.
- Operating Income: $184.8 million, up 14.29% YoY.
- Net Income: $87.7 million, a slight decrease of 1.35% YoY due to increased R&D expenditure.
- EPS: $0.96, up 14% YoY.
Liquidity & Leverage:
- Current Ratio: 2.10 (indicative of strong short-term financial health).
- Total Debt: $2.585 billion with a net debt increase to $2.469 billion.
- Interest Coverage Ratio: 5.55, highlighting the company's ability to cover interest expenses comfortably.
Cash Flow Performance:
- Free Cash Flow: $18 million, with net cash provided by operating activities at $96 million.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.00B
6.33%
3.90%
Gross Profit
629.30M
8.33%
-4.68%
Operating Income
184.80M
14.29%
1.54%
Net Income
87.70M
-1.35%
-15.92%
EPS
0.44
-2.51%
-15.63%
Key Financial Ratios
currentRatio
2.1
grossProfitMargin
62.8%
operatingProfitMargin
18.4%
netProfitMargin
8.75%
returnOnAssets
0.71%
returnOnEquity
1.06%
debtEquityRatio
0.31
operatingCashFlowPerShare
$0.48
freeCashFlowPerShare
$0.09
priceToBookRatio
1.97
priceEarningsRatio
46.54
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Market Resilience: Al White, CEO, noted, 'This was another solid quarter with consolidated organic revenue growth of 7%. We are dealing with a more complex global operating environment, but we’re controlling what we can.'
Product Innovation and Launches: 'We remain very bullish on our MyDay product family as we increase availability in new markets.'
Future Outlook: Brian Andrews stated, 'We're raising our non-GAAP EPS guidance to $4.05 to $4.11 which is growth of roughly 10% to 11.5% year over year.'
'I want to emphasize our prioritization on debt reduction while evaluating share repurchases simultaneously,' said Brian Andrews, CFO.
— Brian Andrews
'Our myopia management portfolio grew 19% with MiSight up 35%... We remain focused on reducing upfront barriers with promotional strategies,' said Al White, CEO.
— Al White
Forward Guidance
Management tightened revenue guidance due to a more cautious outlook on market growth, particularly for contact lenses and fertility segments. The adjusted revenue guidance for the fiscal year now expects revenues of approximately $4.110 billion to $4.150 billion, reflecting a growth of 5.5% to 6.5%. They stress the importance of monitoring market share gains and pricing strategies in light of current economic conditions.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
COO Focus
62.79%
18.40%
1.06%
46.54%
WST
32.90%
18.60%
4.32%
53.22%
HOLX
38.00%
-0.70%
-0.38%
-198.92%
ICUI
34.80%
1.29%
-1.05%
-32.73%
HAE
54.20%
15.00%
3.85%
30.01%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, The Cooper Companies Inc presents a solid investment case supported by strong market growth, innovative product launches, and favorable financial health metrics. Future growth prospects remain bright, especially in daily silicone hydrogel lenses and fertility solutions. However, investors should watch for potential consumer spending changes and pricing pressures in the contact lens market. Strategic initiatives announced by management provide a roadmap for navigating the evolving landscape, making COOS a compelling long-term investment.
Key Investment Factors
Growth Potential
The switch to daily silicone hydrogel lenses, particularly the MyDay and Clarity ranges, continues to show strong growth potential. Management highlighted a significant product pipeline and market expansion opportunities.
Profitability Risk
Potential risks include unforeseen pressures on pricing due to competitive dynamics, economic challenges affecting consumer behavior toward contact lens purchases, and ongoing tariff impacts on cost structures.
Financial Position
Healthy liquidity with a current ratio of 2.10 and reasonable debt levels considering a low interest coverage ratio of 5.55.
SWOT Analysis
Strengths
Strong brand recognition and market position in the contact lens industry
Diverse product offerings across CooperVision and CooperSurgical
Continuous innovation with a growing pipeline of new products
Weaknesses
Dependence on consumer confidence and discretionary spending