Business Context and Reporting Period
Company: Revvity, Inc. (RVTY)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 28, 2025 (52 weeks)
Business Overview: Revvity is a leading provider of health science solutions, technologies, and services operating in two segments: Life Sciences (reagents, instruments, software for drug discovery) and Diagnostics (reproductive health, immunodiagnostics). The company employs approximately 11,000 people globally and markets products in over 160 countries.
Key Financial Metrics
| Metric | Fiscal 2025 | Fiscal 2024 | Change |
|---|---|---|---|
| Total Revenue | $2,856.1 million | $2,755.0 million | +4.0% |
| Net Income | $241.2 million | $270.4 million | -10.8% |
| Diluted EPS | $2.07 | $2.20 | -5.9% |
| Gross Margin | 54.8% | 55.8% | -104 bps |
| Operating Income | $356.6 million | $346.7 million | +2.9% |
| Operating Margin | 12.5% | 12.6% | -10 bps |
| Free Cash Flow (Est.) | $515.5 million | $578.4 million | -10.9% |
| Cash & Equivalents | $919.9 million | $1,163.4 million | -21.0% |
| Total Debt (Principal) | $3,239.5 million | $3,172.2 million | +2.1% |
Note: Free Cash Flow calculated as Net Cash from Operating Activities ($589.0M) less Capital Expenditures ($73.5M).
Material Changes vs. Prior Period
- Revenue Growth: Driven by a 5% increase in the Diagnostics segment (Immunodiagnostics +$41.3M; Reproductive Health +$27.2M) and a 2% increase in Life Sciences (Software +$35.6M, offset by a slight decline in Life Sciences Solutions).
- Margin Compression: Gross margin decreased 104 basis points primarily due to increased tariffs (approx. $25M impact on cost of revenue), unfavorable foreign exchange rates, and product mix shifts. Operating margin decreased 10 basis points.
- Restructuring Costs: Significant increase in restructuring and other costs to $55.9 million in 2025 (vs. $17.5 million in 2024), driven by workforce reductions affecting ~5% of the global workforce and facility consolidations.
- Share Repurchases: Aggressive capital return program with $820.8 million spent on share repurchases in 2025 (vs. $369.6 million in 2024). A new $1.0 billion repurchase program was authorized in October 2025.
- Discontinued Operations: Continued receipt of brand fee proceeds ($56.2M) from the 2023 sale of the Applied, Food, and Enterprise Services businesses.
Guidance, Outlook, and Risks
- Outlook: Management anticipates continued long-term growth and margin expansion. Capital expenditures are projected to increase in fiscal 2026 to support digital capabilities and product innovation.
- Tariff Impact: Tariffs implemented in 2025 increased costs by ~$25 million. While mitigation strategies (pricing adjustments, manufacturing optimization) were deployed, additional tariffs could materially affect results.
- Goodwill Impairment Risk: The Life Sciences Solutions reporting unit (carrying value $4.5 billion) had a fair value exceeding its carrying value by 10-20% during the annual test. Management notes that changes in revenue growth or discount rate assumptions could trigger future impairment charges.
- Regulatory & Environmental: Subject to extensive FDA and international regulations. Environmental accruals stand at $10.8 million for remediation of known matters.
- Subsequent Event: Completed acquisition of Advanced Chemistry Development Inc. (ACD/Labs) for $72 million cash plus up to $8 million contingent consideration.
Investor Verification Checklist
- Tariff Mitigation: Verify the sustainability of pricing adjustments and manufacturing optimizations used to offset the $25 million tariff impact.
- Goodwill Valuation: Monitor the Life Sciences Solutions reporting unit for potential impairment given the narrow margin of safety (10-20%) in the fair value test.
- Restructuring Execution: Track the realization of cost savings from the $55.9 million restructuring program and the impact of the 5% workforce reduction on operational capacity.
- China Exposure: Assess the impact of China diagnostic testing policy changes and timing of collections in China, which contributed to a $96.8 million net cash decrease in working capital.
- Debt Maturity: Confirm refinancing plans for the €500 million 2026 Notes maturing in July 2026.