Masimo Corporation (MASI): BCG Matrix [Dec-2025 Updated]

You're looking at Masimo Corporation (MASI) after the major 2025 strategic clean-up-specifically, exiting consumer audio for $350 million-and the portfolio map is now sharp. We've used the BCG Matrix to distill where the firm's focus lies: the core healthcare segment is firing on all cylinders, targeting 8.5% to 10.0% growth, while the reliable pulse oximetry consumables generate the necessary cash, projecting $428 million to $440 million in operating profit. This cash is now fueling the high-potential, high-risk Question Marks, like the new wearables fighting for share in a market growing near 9.45% CAGR. See the full breakdown of their Stars, Cash Cows, Dogs, and Question Marks right here.

Background of Masimo Corporation (MASI)

You're looking at Masimo Corporation (MASI) as of late 2025, a company that has recently sharpened its focus by divesting its non-healthcare operations. This strategic pivot was finalized in September 2025 with the sale of Viper Holdings Corporation, which housed the consumer audio brand Sound United, to Harman International Industries. This move allows Masimo to concentrate entirely on its core medical technology business.

The financial performance in 2025 reflects this healthcare emphasis. For the twelve months ending September 30, 2025, Masimo Corporation reported total revenue of approximately $2.182B, marking a significant year-over-year increase of 38.48%. This strong top-line momentum continued into the third quarter of 2025.

Looking specifically at the third quarter ended September 27, 2025, Masimo posted GAAP revenue of $371.5 million, which was an 8.2% growth on a reported basis. On a non-GAAP basis, revenue was $371.2 million, showing 7.6% growth when measured in constant currency. The company's profitability metrics also showed improvement, with Non-GAAP net income per diluted share reaching $1.32, representing 38% growth compared to the prior year period.

Management's outlook for the full year 2025, as updated in November, projected Non-GAAP revenue between $1,505 and $1,535 million, translating to an 8% to 11% increase on a constant currency basis. Furthermore, the company raised its full-year Non-GAAP earnings per diluted share guidance to a range of $5.62 to $5.79, excluding the impact of new tariffs.

Masimo's competitive strength remains rooted in its proprietary Signal Extraction Technology, or SET, which enables accurate noninvasive monitoring even in challenging patient conditions. The company is actively investing in R&D, particularly in areas like hemodynamics, aiming for a potential 'game-changer' system launch in 2026. They are also focused on expanding market share within existing installed bases, including that of Philips, and driving commercial excellence across their advanced monitoring categories.

To support its operations and capital investments following the divestiture, Masimo executed a key financial maneuver on December 1, 2025, securing a new $1 billion Credit Facility. This facility comprises a $250 million unsecured term loan and $750 million in revolving commitments, designed to bolster financial stability and operational flexibility as they execute this focused growth strategy.

Masimo Corporation (MASI) - BCG Matrix: Stars

You're looking at the segment of Masimo Corporation (MASI) that is driving top-line expansion, the area where high market share meets a growing market. These are the products that need capital to fend off competitors and cement their leadership position, which is exactly what the Boston Consulting Group (BCG) matrix suggests for a Star.

The core of Masimo Corporation (MASI)'s Star category is clearly its advanced monitoring platforms. These are the areas where the company is seeing the highest growth rates, indicating strong market adoption and a high-share position in expanding segments of patient monitoring.

• Advanced Rainbow® Pulse CO-Oximetry and multi-parameter monitoring platforms, which include noninvasive measurements like Oxygen Reserve Index (ORi™), Total Hemoglobin (SpHb®), and Pleth Variability Index (PVi®).
• New hospital automation and connectivity solutions, such as the Masimo Hospital Automation Platform and the ROOT connectivity hub.
• Advanced parameters like capnography, which are seeing growth rates of 20%.

The financial performance of the core business supports this positioning. Masimo Corporation (MASI) has guided for full-year 2025 Non-GAAP revenue growth in the range of 8.5% to 10.0% on a constant currency basis, which is intended to outpace the general market growth for pulse oximetry, which was valued at $2.46 billion in 2025. To be fair, the third quarter of 2025 saw reported GAAP revenue growth of 8.2%, with Non-GAAP revenue growing 7.6% in constant currency. This sustained growth trajectory is what keeps these products in the Star quadrant; they are leaders, but they consume cash to maintain that edge.

The investment required to maintain this leadership is evident in the high growth of specific solution sets. The company is actively investing to accelerate adoption in these high-potential areas. Here's a quick look at how the growth rates compare across the core healthcare segments as of early 2025:

In the broader non-invasive patient monitoring technology space, Masimo Corporation (MASI) holds a strong, high-share position, though it is not the absolute market leader. In the global pulse oximetry monitoring market in 2024, Medtronic led, with Masimo Corporation (MASI) positioned as the second-leading competitor globally. This close competition necessitates continued heavy investment in R&D and commercial placement for the advanced platforms to convert their technological lead into a definitive market share lead over rivals like Medtronic. The company is focused on leveraging its pulse oximetry sales force into adjacent categories where it holds less than 20% market share in each, aiming for 10% to 20% growth in those areas.

The strategy for these Stars is clear: invest to grow share until the market growth naturally slows, at which point they should transition into Cash Cows. The company's focus on elevating commercial excellence and accelerating intelligent monitoring is the action plan for supporting these high-potential assets. Finance: draft the capital allocation plan for the next two quarters, prioritizing deployment in Hospital Automation and Advanced Parameters by Friday.

Masimo Corporation (MASI) - BCG Matrix: Cash Cows

You're looking at the core engine of Masimo Corporation's profitability, the segment that generates the necessary capital to fund riskier ventures. This is where the established, market-leading products live, and for Masimo, that centers squarely on their pulse oximetry consumables.

The Masimo SET® Pulse Oximetry Consumables, which include the essential sensors and cables, represent the quintessential Cash Cow. These are sold into a mature hospital monitoring market, yet Masimo's proprietary technology allows them to maintain a high market share and command premium pricing, leading to high profit margins and significant, predictable cash flow.

Here's a look at the financial expectations and market context for this segment:

The recurring revenue stream from these consumables is massive; it comprised approximately 88% of the healthcare segment's total revenue in 2025 estimates. This high-volume, high-utilization model is what makes it a Cash Cow. The installed base of Masimo SET® and rainbow SET™ monitors, estimated at over 1,591,000 units as of December 30, 2017, is the primary driver for the continuous, recurring sales of single-patient-use sensors.

Even though the overall hospital pulse oximetry market is mature, Masimo's SET technology has consistently taken market share, with SET pulse oximetry consumable revenues growing at 8% per year since 2017. This suggests the segment is not just milking the market but actively growing its share within it, which is a strong indicator of competitive advantage. The market itself is projected to grow at a 7.6% CAGR through 2035.

The expected 2025 Non-GAAP operating profit from continuing operations, when excluding the impact of new tariffs, is projected to be between \$428 million and \$440 million. This cash generation is vital for the corporation's overall financial health.

You can see the characteristics that define this quadrant:

• Masimo SET® technology maintains accuracy under motion and low perfusion.
• The technology has shown no clinically significant difference in accuracy between light and dark skin tones.
• The segment generates the necessary cash to fund Masimo Corporation's Stars and Question Marks.
• Investments are focused on efficiency and maintaining the installed base, not broad market promotion.

Masimo was the second-leading competitor in the global pulse oximetry monitoring market in 2024, competing closely with Medtronic. Finance: draft 13-week cash view by Friday.

Masimo Corporation (MASI) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Dogs are in low growth markets and have low market share. Dogs should be avoided and minimized. Expensive turn-around plans usually do not help.

The Sound United Consumer Audio Division, which included brands like Denon, Marantz, and Polk, represented the primary Dog within Masimo Corporation's portfolio as of 2025.

The clear exit strategy involved the divestiture of this division to HARMAN International. The definitive agreement was for an aggregate purchase price of $350 million in cash, subject to adjustments. The transaction was expected to close by the end of 2025, and Masimo Corporation confirmed closing the sale in the third quarter of 2025.

The non-core status was confirmed by its classification in financial reporting. The Sound United business was reported in discontinued operations starting in the first quarter of 2025, having been classified as held-for-sale.

The business was a significant drag on reported profitability prior to the sale. For the first quarter ended March 29, 2025, Masimo Corporation reported a GAAP loss from discontinued operations, net of tax, of ($218) million. This loss included a substantial impairment of intangibles related to the non-healthcare consumer business amounting to $295 million.

The unit's performance leading up to the divestiture demonstrated its low-growth, cash-consuming nature, contrasting sharply with the core healthcare operations. The decision to sell signals a complete removal of this segment's financial volatility from Masimo Corporation's ongoing results.

The characteristics that defined this segment as a Dog included:

• Inclusion of brands like Denon, Marantz, and Polk.
• Reporting under discontinued operations in 2025 filings.
• Resulting in a $218 million GAAP loss in Q1 2025.
• The ultimate sale price was $350 million in cash.
• The sale was finalized in the third quarter of 2025.

Finance: finalize the post-close accounting treatment for the Sound United divestiture by year-end.

Masimo Corporation (MASI) - BCG Matrix: Question Marks

QUESTION MARKS for Masimo Corporation (MASI) represent business areas characterized by high market growth but a low relative market share. These units consume significant cash to fund their growth but have yet to generate substantial returns, placing them in a precarious position requiring immediate strategic attention.

The primary candidates for this quadrant center on Masimo Corporation's expansion into the consumer health and broader wellness space, exemplified by new devices like the Masimo W1 watch. This device, which received FDA 510(k) clearance in May 2025 for continuous and spot-check measurements of heart rate and oxygen saturation ($\text{SpO}_2$), is a key part of the company's growing health and wellness solutions portfolio. While the $\text{W1}$ watch was recognized as one of the 200 Best Inventions of 2024, its market penetration against established consumer tech giants remains low, fitting the low relative market share profile.

The market dynamics for these new ventures are undeniably attractive, though the specific growth rate for home healthcare is estimated in the scenario as $\mathbf{9.45\%}$ CAGR. The broader context shows high growth: the global wearable medical devices market is expected to grow at a $\sim\mathbf{20\%}$ CAGR from 2025 to 2032, and the Digital Health Market is projected for a $\mathbf{20.2\%}$ CAGR between 2025 and 2035. Masimo Corporation's non-invasive hemoglobin ($\text{SpHb}$) technology, which leverages multiple light wavelengths, operates within the non-invasive hemoglobin monitoring tools market, valued at $\text{USD }675 \text{ million}$ in 2024, projected to reach $\text{USD }1.95 \text{ billion}$ by 2031 at a $\mathbf{16.4\%}$ CAGR. The challenge is converting this technological advantage into dominant market share quickly.

The need for significant investment is evident in the R&D required for new non-invasive measurements, such as the $\text{SpHb}$ technology, which aims to provide continuous monitoring between invasive blood samples. The financial commitment to innovation is ongoing, as seen in the company's recent financial performance and guidance. For instance, the first quarter of 2025 saw a GAAP loss from discontinued operations, net of tax, of $\mathbf{(\$218) \text{ million}}$, which included an impairment of intangibles of $\mathbf{\$295 \text{ million}}$ for the non-healthcare consumer business. This signals a significant cash burn or write-down associated with this segment.

Market uncertainty is amplified by legal battles, which represent both a risk and a potential for high upside through securing exclusivity. Masimo Corporation's litigation expenses have been substantial, reaching $\mathbf{\$24 \text{ million}}$ in Q2 2025, following $\mathbf{\$19.7 \text{ million}}$ in Q1 2025, with total 2024 spending at $\mathbf{\$70 \text{ million}}$. A recent victory involved a California jury awarding Masimo Corporation $\mathbf{\$634 \text{ million}}$ in damages against Apple Inc. for patent infringement, though Apple has indicated an intention to appeal this decision.

The strategic path for these Question Marks requires a decisive capital allocation choice, as they currently consume cash, with Non-GAAP operating profit guidance for the full year 2025 (including tariff impacts) set between $\mathbf{\$406 \text{ million}}$ and $\mathbf{\$422 \text{ million}}$.

Key financial and statistical data points related to the Question Marks segment are summarized below:

The $\text{SpHb}$ accuracy specification with $\text{RD rainbow SET}{\text{\textregistered}}$ sensors is $\text{ARMS}$ $\mathbf{1 \text{ g/dL}}$ in the range of $\mathbf{8-17 \text{ g/dL}}$. The decision for Masimo Corporation is whether to allocate substantial capital to aggressively capture share in these high-growth areas, aiming for them to transition into Stars, or to reduce cash consumption by divesting or minimizing support for these units.

• Invest heavily to gain share in consumer wearables.
• Support R&D for non-invasive measurement expansion.
• Monitor the outcome of the $\mathbf{\$634 \text{ million}}$ patent appeal against Apple.
• Align investment with the $\mathbf{\$1,500 \text{ million}}$ to $\mathbf{\$1,530 \text{ million}}$ full-year 2025 Non-GAAP revenue guidance.