The key expectation was the May 5 outlook, and it has been materially reset. No dependable full-year published consensus is available in the supplied context, so the company’s previous guidance was the clearest standing expectation; management had previously reiterated that 2026 revenue, EBITDA and EPS should remain broadly on track.
| Metric | Updated guidance | Previous guidance | Change in midpoint |
|---|---|---|---|
| Reported revenue | $2.52–$2.60B | $2.70–$2.75B | approximately -5.7% |
| Adjusted EBITDA | $540–$560M | $615–$630M | approximately -11.6% |
| Adjusted EBITDA margin | 21%–22% | 23% | down about 1 percentage point |
| Adjusted diluted EPS | $0.65–$0.90 | $1.80–$2.00 | approximately -59% |
| Free cash flow | Withdrawn | $100–$120M | no current target |
(Guidance table)
The second quarter itself was not the main problem; the forward reset was. Revenue rose 2.8% year over year to $630.9 million, while adjusted EBITDA increased to $129.3 million from $106.8 million, lifting the margin to 20.5% from 17.4%. But the six-month picture remained weaker: revenue fell 4.3% to $1.25 billion and adjusted EBITDA declined 10.7% to $238.0 million. (Financial highlights; Adjusted EBITDA reconciliation)
China and respiratory demand are now large enough to overwhelm healthier core trends. China revenue fell 18.7% reported and 23.3% in constant currency, while revenue outside China grew 6.1% reported and 5.9% in constant currency. Labs excluding China grew 9.0%, and Point of Care rose 16.3%, but Donor Screening and Molecular Diagnostics declined sharply and management cited a softer global respiratory environment. (Segment results; China revenue; Labs excluding China)
The cash signal is worse than the adjusted earnings signal. Operating cash flow was negative $143.6 million in the first six months versus positive $18.8 million a year earlier, cash fell to $123.4 million from $169.8 million at year-end, and current borrowings rose to $355.7 million from $178.3 million. With free-cash-flow guidance withdrawn, investors lose visibility just as working-capital pressure and balance-sheet leverage are becoming more important. (Cash Flow statement; Balance Sheet)
Net read: a broad negative revision, not merely a quarterly miss. The filing preserves evidence of strength outside China, but the roughly 6% revenue reset, roughly 12% EBITDA reset, nearly 60% EPS reduction and withdrawal of cash-flow guidance substantially lower the earnings and cash-conversion expectations investors had entering the release.
Read the original 8-K on SEC EDGAR ↗