QuidelOrtho Corporation (QDEL): Business Model Canvas [Dec-2025 Updated]

You're digging into the business engine of QuidelOrtho Corporation right now, trying to see past the COVID testing boom, and honestly, the real story is about margin expansion post-merger. As a former head analyst, I see a clear pivot: they are aggressively targeting over $140 million in cost savings while their pandemic revenue shrinks to a projected $70 million to $100 million for fiscal year 2025. The whole ship is being steered toward a total revenue guidance between $2.68 billion and $2.74 billion for FY2025, relying heavily on recurring reagent sales from their core platforms. Let's break down the nine building blocks that show exactly how they plan to make that happen below.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Key Partnerships

You're looking at the backbone of QuidelOrtho Corporation's market penetration, which relies heavily on established relationships to move its diagnostic products. These aren't just handshake deals; they are quantifiable agreements driving revenue and market share as of late 2025.

Global distribution agreements with major medical supply companies

The integration of Ortho Clinical Diagnostics brought with it an expansive global commercial infrastructure. This existing footprint is key to placing QuidelOrtho Corporation's point-of-care portfolio globally. The combined company anticipated driving revenue synergies in excess of $100 million by 2025 from these cross-selling opportunities, leveraging a broad global reach across 130-plus countries.

Strategic collaborations with large Integrated Delivery Networks (IDNs) and reference laboratories

The Labs business unit is the bedrock of stability for QuidelOrtho Corporation, making up 54% of total revenue in Q1 2025 and half of the revenue overall. This segment is supported by highly predictable, long-term contracts. These agreements with IDNs and labs often span 5 to 7 years and include guaranteed minimums, which is crucial for forecasting. For instance, in the third quarter of 2025, the Labs business grew 4% as reported, contributing to a total revenue of $700 million for the quarter.

Here's a quick look at the segment performance supporting these partnerships:

Technology and research partnerships for new assay development, like the LEX Diagnostics acquisition

QuidelOrtho Corporation is actively realigning its molecular diagnostics strategy, evidenced by the planned acquisition of full ownership of LEX Diagnostics for approximately $100 million upon FDA clearance, which is anticipated in late 2025 or early 2026. This move is a direct partnership to capture a piece of the rapidly growing molecular diagnostics market, estimated at $9 billion. The LEX platform is designed to deliver results for Flu A/B and COVID-19 detection in approximately six minutes. This strategic shift involved discontinuing the development of the Savanna platform to reallocate resources.

• Acquisition consideration for LEX Diagnostics: $100 million.
• Molecular Diagnostics Market Size: Estimated at $9 billion.
• LEX Diagnostics Test Time (Positive Result): Approximately six minutes.
• Savanna Platform: Development discontinued.

Blood bank and hospital networks for Immunohematology product placement

The Transfusion Medicine business, which houses the Immunohematology portfolio, maintains the #1 global market position. This leadership is built on deep, long-standing partnerships with blood bankers. QuidelOrtho Corporation has achieved over 5,500 placements across these networks. The reliability of this segment is underscored by the fact that a patient is safely transfused every second due to their pretransfusion testing. The segment showed solid growth, with Immunohematology revenue increasing 4% as reported in Q2 2025 and 5% in Q3 2025.

The scale of the Immunohematology partnership base is significant:

Finance: review Q4 2025 cash collection forecast against Q3 receivable timing adjustments by Monday.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Key Activities

You're focused on the operational engine of QuidelOrtho Corporation (QDEL) as of late 2025. The core activities show a company deep in integration and focused on driving profitability through efficiency while launching key new products. Here's the quick math on what's driving their day-to-day execution.

Manufacturing and global supply chain optimization for diagnostic tests

A significant part of the day-to-day involves streamlining how QuidelOrtho Corporation manufactures and moves its diagnostic tests globally. This activity directly supports margin expansion. For instance, in the third quarter of 2025, the adjusted EBITDA margin reached 25%, a 180 basis point improvement year-over-year. This operational focus is key, especially as the company is in the process of winding down its U.S. Donor Screening portfolio. The overall non-GAAP operating expenses decreased by 7% in the first three quarters of 2025, a direct result of these ongoing cost-saving actions.

Executing on the $140 million+ in cost savings and integration synergies

Delivering on the post-merger promises is a major Key Activity. QuidelOrtho Corporation highlighted achieving $140 million in cost savings since 2024 as of the third quarter of 2025. The initial, pre-merger targets included realizing approximately $90 million of run-rate cost-related synergies by the end of year three. The execution of these cost actions is clearly flowing through the financials; the year-to-date adjusted EBITDA margin for the first nine months of 2025 reached 22%, which is an increase of 320 basis points compared to the prior year period. Still, integration work carries costs; the third quarter of 2025 results included $40 million in restructuring, integration and other charges.

Here is a look at the financial impact supporting this activity:

Research and development (R&D) for new high-sensitivity assays (e.g., VITROS troponin I)

QuidelOrtho Corporation is actively investing in its pipeline, with R&D being a component of its non-GAAP operating expenses. A major focus has been menu expansion, exemplified by the VITROS high-sensitivity Troponin I assay. This assay received FDA 510(k) clearance in the U.S. in November 2025. This development elevates the cardiac panel, offering higher sensitivity and precision to aid in the diagnosis of myocardial infarction (MI). The commercial rollout for U.S. laboratories running VITROS Systems began later in the fourth quarter of 2025.

Instrument placement and recurring reagent/consumable sales

The business model relies on placing instruments to secure recurring revenue from consumables. You can see the strength of the installed base through the growth in core lab segments. For the third quarter of 2025, non-respiratory revenue, excluding COVID-19 and Donor Screening, grew 6% in constant currency. Specifically, Labs revenue grew 5% as reported in Q3 2025. Immunohematology revenue, which is part of the core lab business, grew 5% as reported in Q2 2025. The full-year 2025 revenue guidance is narrowed to between $2.68 billion and $2.74 billion.

Global regulatory compliance and FDA clearances

Navigating the regulatory landscape is critical for market access. The most recent success here is the FDA 510(k) clearance for the VITROS hs Troponin I Assay. This clearance allows for the assay's quantitative measurement of cardiac troponin I (cTnI) in human plasma to support MI diagnosis. Furthermore, QuidelOrtho Corporation continues progress on the LEX Diagnostics acquisition, with FDA clearance anticipated in late 2025 or early 2026.

You should review the Q4 2025 results when they are released in February 2026 to see the initial revenue impact from the hs Troponin I launch, which started late in Q4. Finance: draft 13-week cash view by Friday.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Key Resources

You're looking at the core assets QuidelOrtho Corporation (QDEL) relies on to run its diagnostics business as of late 2025. These aren't just line items; they are the engines driving revenue and market position.

Proprietary diagnostic platforms: VITROS, Sofia, Solana, and Triage systems

The strength here is in the established installed base and recent innovation. QuidelOrtho Corporation highlighted the clearance of its new VITROS high-sensitivity troponin assay as a major Research and Development milestone in Q3 2025. Conversely, the company confirmed plans to discontinue development of the Savanna platform. The Sofia platform maintains a significant footprint, with a reported installed base of 79,000 analyzer placements as of early 2022, which the company uses to drive assay sales.

Extensive global intellectual property and patent portfolio

While a precise patent count isn't readily available, the focus on innovation is clear through strategic investments. QuidelOrtho Corporation has an intent to acquire full ownership of LEX Diagnostics for a consideration at closing of approximately $100 million, contingent upon U.S. Food and Drug Administration (FDA) clearance, which is expected in late 2025 or early 2026. This acquisition signals a key strategic addition to the intellectual property and technology base.

Global manufacturing and distribution footprint

Operational efficiency is a key resource being actively managed. QuidelOrtho Corporation has delivered over $140 million in cost savings to date, contributing to an improved Adjusted EBITDA margin of 25% in Q3 2025. The company initiated a major manufacturing site consolidation during 2025. The recurring revenue base, which represented over 90% of total 2024 revenue, speaks to the stability of the distribution network supporting these assets.

Highly specialized R&D and regulatory affairs teams

These teams are tasked with portfolio expansion and navigating regulatory hurdles. The R&D focus is on improving productivity and expanding the assay menu content. The regulatory team is managing the path for the LEX Diagnostics acquisition, targeting FDA 510(k) clearance late in 2025 or early 2026. Operating expenses, which include Research and Development expenses, decreased by 7% on a non-GAAP basis in Q3 2025 due to cost-saving initiatives.

Installed base of clinical chemistry and immunoassay analyzers

The installed base drives recurring consumable sales across the Labs and Transfusion Medicine segments. The Labs business revenue grew 5% as reported in Q3 2025. The Immunohematology business remains the number one global brand leader in its segment. The company continues to leverage its large installed base in both laboratory and Point-of-Care (POC) settings.

Here's a quick look at the financial scale supporting these resources as of the third quarter of 2025:

The company is definitely focused on operational improvements to bolster the value derived from these physical and intellectual assets.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Value Propositions

You're looking at the core reasons why labs and clinics choose QuidelOrtho Corporation. It's about the breadth of their offering, the economics of their core systems, the speed of their critical tests, and the reliability of their support structure.

Comprehensive diagnostic portfolio from Point-of-Care to central lab testing is supported by a business structure that generated $700 million in total revenue for the third quarter of 2025. This portfolio spans multiple critical areas, with specific segment contributions in Q1 2025 including Point of Care generating $170.80 million and Labs revenue growing 5% as reported.

For central lab testing, the value proposition around the VITROS clinical chemistry systems centers on economics and performance. While a specific TCO (Total Cost of Ownership) percentage isn't public, the company is actively promoting accessibility through its Certified Analyzer Program, offering certified VITROS XT 7600 and 5600 Integrated Systems and the VITROS 3600 Immunodiagnostic System to smaller hospitals 'at a fraction of the cost.' The Labs business unit itself showed solid growth, with Q3 2025 revenue increasing 5% as reported.

The promise of rapid, accurate results is delivered through key platforms like Triage and Sofia. The Point of Care segment, which includes these rapid tests, brought in $170.80 million in revenue in the first quarter of 2025. Furthermore, QuidelOrtho Corporation announced FDA 510(k) Clearance for the VITROS Immunodiagnostic Products hs Troponin I Assay in late 2025, enhancing the cardiac marker offering.

Expertise in transfusion medicine and immunohematology is a major differentiator. QuidelOrtho Corporation maintained its position as the #1 global brand leader in Immunohematology as of early 2025. This expertise is critical in a market valued at $61.2 billion in 2024, projected to reach $88.8 billion by 2030. The Immunohematology revenue stream grew 4% as reported in Q2 2025.

High-touch customer service is quantified by industry recognition. In the 2025 IMV ServiceTrak Awards, QuidelOrtho Corporation achieved the #1 Overall Net Promoter Score (NPS) by Manufacturer, marking a 17-point increase in NPS, the largest gain in that category. The company has held the #1 ranking for Overall Customer Satisfaction since 2018. Service efficiency is also high, with 65% of all customer requests resolved remotely without needing onsite service.

Here's a quick look at the financial context supporting these value drivers:

The commitment to operational excellence is evident in margin improvement, with the Adjusted EBITDA margin reaching 23% in Q1 2025 (a 450 basis point increase) and 25% in Q3 2025 (a 180 basis point improvement year-over-year). These improvements are driven by cost-saving initiatives, including achieving $100 million in annualized cost savings by mid-2025.

The value propositions are backed by specific service achievements:

• Ranked #1 Overall Manufacturer Performance in 2025 IMV ServiceTrak Awards.
• Ranked #1 Overall Service Engineer Performance in 2025 IMV ServiceTrak Awards.
• Ranked #1 Overall Training Performance in 2025 IMV ServiceTrak Awards.
• Offers certified VITROS systems for smaller facilities.
• Transfusion Medicine is the #1 global brand leader in Immunohematology.

Finance: draft 13-week cash view by Friday.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Customer Relationships

You're looking at how QuidelOrtho Corporation keeps its high-value diagnostic customers locked in, and honestly, it's all about making the switch to a competitor painful by embedding their products deep into your daily workflow. This isn't just about selling a machine; it's about selling uptime and efficiency, which is why a significant portion of their business is built on repeat purchases and ongoing support.

The core of the relationship for their central lab business-which made up 54% of total company revenue in Q1 2025-revolves around dedicated, long-term agreements. These contracts cover the big-ticket items, like the VITROS® Automation Solutions, ensuring you're locked into their ecosystem for reagents and service.

The financial proof of this sticky relationship is clear: over 90% of QuidelOrtho's revenue in Q4 2024 came from recurring sales of reagents, consumables, and services. That's the engine driving customer retention, so you know they prioritize keeping those instruments running and stocked.

Here's a quick look at how the recurring revenue streams and service contracts support the major lab segment:

Automated, high-volume replenishment of reagents and consumables is the practical side of those long-term contracts. For instance, in Immunohematology, they offer a full line of reagent red blood cells designed to standardize and drive efficiency across your lab operations, whether you use manual, semi-manual, or automated testing systems. This ensures that once you commit to a platform like the Ortho Vision Swift Automated Immunohematology System, you're buying years of supply chain dependency.

When you need to optimize the actual process, you call in the specialists. QuidelOrtho offers specialized technical support and consulting services under the VALUMETRIX™ banner. These experts use globally recognized techniques like Lean Six Sigma thinking to evaluate and optimize your lab processes. They don't just talk theory; they show results. For example, in one STAT lab engagement, the VALUMETRIX™ Team's process refinement allowed for 10% growth while simultaneously cutting the mean chemistry turnaround time by 19%. Annual automated ValuChecks^SM are used to evaluate processes for continuous quality improvements, which is a great way to keep the consulting relationship active.

For your Point-of-Care (POC) platforms, like the Sofia® 2 analyzer, the relationship shifts toward self-service and digital support, though human teams are still involved. The Sofia® 2 analyzer includes on-board data management, capable of storing up to 1,000 tests (FIFO), and it can interface directly with EMR and LIS systems, which automates result transmission and cuts down on manual transcription errors. Furthermore, the integrated VIRENA™ wireless connectivity allows you to view results remotely and facilitates quality control monitoring across your entire network of Sofia 2 instruments.

The focus on service excellence is definitely paying off in customer perception. QuidelOrtho earned three awards in the 2025 IMV ServiceTrak™ Awards, including top rankings for Integrated Systems service. More importantly, their commitment to customer experience initiatives delivered a 17-point increase in Net Promoter Score (NPS), which is the largest gain in that category, showing higher customer loyalty and satisfaction.

For smaller, high-throughput settings like pharmacies using the Sofia 2 analyzer, they offer workflow partnerships. One such partnership enables pharmacies to onboard patients 80 percent faster than with a manual process, which is a concrete, time-saving metric that builds immediate trust. You can see the relationship strategy is tailored:

• Dedicated, long-term contracts for central lab automation.
• High-volume reagent sales driving over 90% of recurring revenue.
• Consulting services like VALUMETRIX™ achieving 19% turnaround time reductions.
• Digital self-service via VIRENA™ for POC platforms.
• Partnerships cutting pharmacy onboarding time by 80%.

Finance: draft 13-week cash view by Friday.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Channels

You're looking at how QuidelOrtho Corporation moves its diagnostic products-from high-sensitivity troponin assays to immunohematology systems-to the end-user, which is a mix of major hospitals, clinical labs, and international customers. Honestly, the channel strategy reflects the complexity of their portfolio, blending direct access for key accounts with broad distribution for scale.

Direct global sales force for major hospital and lab systems

The direct sales force is definitely the primary route for QuidelOrtho Corporation's core, high-value capital equipment and integrated systems, like the VITROS platform. This team handles the complex sales cycle required for major hospital networks and large reference laboratories. While we don't have a specific headcount for the direct sales team as of late 2025, we know the output of this channel is substantial, driving the performance of the core business units. For instance, the Labs business segment posted a revenue growth of 5% as reported in the third quarter of 2025, indicating strong traction through direct engagement with these large customers. This channel is critical for securing long-term reagent and consumable contracts following an initial instrument placement.

Third-party medical device distributors and wholesalers

For broader market penetration, especially in smaller clinical labs or for specific product lines like certain point-of-care offerings, QuidelOrtho Corporation relies on established third-party distributors and wholesalers. This leverages existing logistics networks you wouldn't want to build from scratch. The Immunohematology segment, which grew 4% as reported in Q3 2025, likely sees significant contribution from these indirect channels to reach transfusion medicine centers across various geographies. This approach helps manage the cost-to-serve for lower-volume accounts.

International commercial teams, especially in high-growth regions like China

QuidelOrtho Corporation maintains dedicated international commercial teams to manage regulatory compliance, local marketing, and direct sales efforts outside the U.S. The company noted a favorable impact from foreign currency translation of approximately 90 basis points on Q3 2025 revenue, showing that international sales are a meaningful part of the total $700 million quarterly revenue. While specific China revenue figures aren't broken out, the focus on global reach implies these teams are actively pushing the portfolio, including the recently FDA-cleared high-sensitivity troponin assay, into new markets to offset declines in other areas, like the winding down of the U.S. Donor Screening portfolio.

Online portals for ordering consumables and technical documentation

The digital channel is essential for recurring revenue and customer support efficiency. QuidelOrtho Corporation uses online portals for customers to manage orders for high-volume consumables and access critical technical documentation, like assay protocols or service manuals. This self-service model helps keep non-GAAP operating expenses down, which decreased by 7% in Q3 2025. It's the backbone for managing the installed base efficiently.

Here's a quick look at the revenue scale that these channels are moving as of the third quarter of 2025:

The company's overall strategy is clearly weighted toward driving growth in the core Labs and Immunohematology segments through both direct and distributor channels, aiming for a full-year 2025 revenue guidance midpoint around $2.71 billion (based on Q1 estimates, narrowed to $2.68 billion-$2.74 billion in Q3). The success of the direct sales force is tied to securing placements that generate the recurring revenue from the 5% Labs growth.

You can find presentation materials and access replays for calls detailing these channel strategies on the Investor Relations page at https://ir.quidelortho.com.

Finance: draft 13-week cash view by Friday.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Customer Segments

You're looking at the core groups QuidelOrtho Corporation (QDEL) serves as of late 2025, which directly shapes how they structure their sales and R&D efforts. Honestly, the business is clearly segmented by the type of testing environment, moving away from pandemic-era reliance.

The company's Q3 2025 total reported revenue came in at $700 million, with non-respiratory revenue making up $588 million of that total, showing a 5% increase as reported for that non-COVID core business.

Central Clinical Laboratories and Reference Labs (high-volume testing)

This segment, which QuidelOrtho groups under its Labs business, is a key driver of the underlying growth. You see this reflected in their recent performance metrics.

• Labs business revenue grew 5% as reported in Q3 2025.
• The overall full-year 2025 revenue guidance is narrowed to a range of $2.68 billion to $2.74 billion.

Blood Banks and Transfusion Medicine Centers (global market leader)

QuidelOrtho Corporation positions itself as a global leader in diagnostics, with a strong focus here, evidenced by product announcements like the MTS DAT Card completion for their gel-based testing solutions. This segment is tied closely to the broader, high-value blood banking industry.

Here's a look at the market context for this customer base:

The company is actively managing its Donor Screening portfolio, projecting revenues between $40 million and $50 million for the full year 2025, while noting the wind-down of the U.S. Donor Screening business.

Point-of-Care settings: Physician offices, clinics, and Emergency Departments

For immediate testing needs, the Triage product line is the key indicator here. This area is showing strong momentum compared to other divisions.

• The Triage product line posted a 7% growth rate in Q3 2025.
• The Point of Care division, excluding COVID-19 business, was expected to see mid-single-digit growth for the full year 2025.

International healthcare systems (EMEA, Latin America, Japan)

Geographic diversity is important to QuidelOrtho Corporation's stability, especially as they manage the decline in U.S. COVID-19 and Donor Screening revenue. They report success in specific international areas.

You can see the geographic performance reflected in their recent results:

• The company registered robust revenues from EMEA, China and Other regions in Q3 2025.
• Growth in the Chinese market for 2025 is projected to be within the mid- to high-single-digit range.

Finance: draft 13-week cash view by Friday.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Cost Structure

You're looking at the expense side of the QuidelOrtho Corporation (QDEL) model, which is heavily influenced by manufacturing complexity and ongoing integration efforts. Here's a breakdown of the key cost drivers based on late 2025 figures.

The cost structure reflects the ongoing integration following the merger and the inherent expense in producing diagnostic tools. For instance, the third quarter of 2025 saw significant one-time charges related to these activities.

Integration and restructuring charges hit the books hard in Q3 2025, totaling $40 million. This charge included approximately $11 million tied to stopping the development of the Savanna platform and about $28 million for ERP system integration costs. Year-to-date through Q3 2025, the cumulative restructuring, integration, and other charges reached $234.6 million.

Manufacturing and product costs are a major component, suggested by the reported adjusted gross profit margin. For the third quarter of 2025, the adjusted gross profit margin stood at 48.7%. This margin reflects the cost of goods sold (COGS) relative to revenue, which is naturally high given the complex reagent and instrument manufacturing involved in their diagnostic offerings.

Investment in the future pipeline is another significant outflow. Research and development (R&D) is a necessary expense for platform integration and new product launches. The company reported GAAP R&D expenses of $41.5 million for the third quarter of 2025.

The operational overhead for running a global commercial presence is substantial. Sales, General, and Administrative (SG&A) expenses, combined with R&D, make up the non-GAAP operating expenses. For Q3 2025, the combined non-GAAP operating expenses (SG&A and R&D) were $217 million, representing a 7% decrease year-over-year due to cost savings actions. Year-to-date through Q3 2025, non-GAAP SG&A alone was $525.8 million.

Finally, the cost of capital is a growing factor. Following a recent refinancing, QuidelOrtho Corporation projects its full-year 2025 interest expense on debt to be $177 million. This projection was an increase of $17 million from prior expectations, attributed to the August refinancing raising the weighted average rate by about 100 basis points and higher amortization of financing fees. The net interest expense recorded in Q3 2025 was $46.1 million.

Here's a summary of the key cost components for the third quarter of 2025 and full-year 2025 projections:

The operational cost management is evident in the reduction of combined non-GAAP operating expenses. You can see the impact of cost savings initiatives in these figures:

• Non-GAAP operating expenses (SG&A + R&D) decreased by $16 million or 7% in Q3 2025 versus prior year.
• Achieved $100 million annualized cost-savings initiatives as of Q2 2025 guidance.
• Targeting an additional $30-$50 million of cost-savings in the remainder of 2025.

The high fixed cost base is also reflected in the GAAP results, which included a non-cash goodwill impairment charge of $701 million in Q3 2025. This charge significantly impacted the GAAP operating margin, which was (101)% for the quarter.

Finance: draft 13-week cash view by Friday.

QuidelOrtho Corporation (QDEL) - Canvas Business Model: Revenue Streams

You're looking at the core engine of QuidelOrtho Corporation's revenue generation as of late 2025. Honestly, the story here is about the shift from pandemic-driven peaks to the more sustainable, albeit lower, base business. The company's financial guidance frames this transition quite clearly.

Full-Year 2025 Revenue Expectations

Management has narrowed its full-year 2025 total reported revenue guidance to a range of $2.68 billion to $2.74 billion. This guidance reflects confidence in the core operations even as legacy revenue streams normalize. For context, the trailing twelve months revenue as of the end of Q3 2025 was reported at $2.71 Billion USD.

The revenue streams are fundamentally built around the consumables that keep the installed base of diagnostic equipment running. You'll see this reflected in the high percentage attributed to recurring sales.

• Recurring revenue constituted 97% of QuidelOrtho Corporation's total revenue for the third quarter of 2025.
• Non-respiratory revenue for Q3 2025 was $588 million.
• Non-respiratory revenue, excluding the U.S. Donor Screening exit, grew 6% in constant currency for Q3 2025.

The growth drivers within this recurring base are what management is leaning on to offset the expected decline in COVID-19 testing. For instance, in Q3 2025, the Labs business revenue grew 5% as reported, and the Triage product line posted 7% growth. Also, the Immunohematology segment saw growth of 5% in that same quarter.

Here's a quick math look at how the major components are expected to stack up for the full year 2025:

Instrument Sales and Service Contracts

While the bulk of revenue is recurring consumables, the initial placement of instruments-like the VITROS platform-is key to securing that future consumable stream. Instrument sales and leases are the initial transaction that locks in the long-term consumable revenue. Service and maintenance contracts for these installed diagnostic systems are defintely bundled into the recurring revenue stream, supporting the 97% figure reported for Q3 2025. The company is also focused on new assay clearances, such as the VITROS high-sensitivity troponin assay, which is designed to drive future utilization.

The COVID-19 Revenue Normalization

The most significant change in the revenue profile is the expected drop in COVID-19 testing revenue. Management now projects COVID-19 revenue for the full year 2025 to be in the range of $70 million to $100 million. This compares to the prior year's figures, where Q3 2025 COVID-19 revenue was down 63% year-over-year, contributing to the overall revenue decline in that quarter. The company is clearly moving toward an endemic-level expectation for this revenue line.