Exhibit 99.1

 

OSI SYSTEMS REPORTS FISCAL 2025 FOURTH QUARTER 

AND FULL FISCAL YEAR FINANCIAL RESULTS

 

·Record Q4 Revenues of $505 Million

·Record Fiscal Year Revenues of $1.713 billion (up 11% YoY)

·Q4 GAAP EPS of $3.03 and Record Non-GAAP EPS of $3.24

·Fiscal Year GAAP EPS of $8.71 and Record Non-GAAP EPS of $9.36 (up 15% YoY)

·Year-End Backlog of > $1.8 Billion

 

HAWTHORNE, Calif. — (BUSINESS WIRE) — August 21, 2025 — OSI Systems, Inc. (the “Company” or “OSI Systems”) (NASDAQ: OSIS) today announced its financial results for the three months and fiscal year ended June 30, 2025.

 

Ajay Mehra, OSI Systems’ President and Chief Executive Officer, stated “We are pleased to report record-breaking fourth quarter and 2025 fiscal year revenues and non-GAAP earnings per share, led by excellent execution in our Security division. Fourth quarter performance was driven by strong growth in the Security division’s service revenues resulting from an increasing installed base of our products. With robust bookings, solid backlog and high visibility into our opportunity pipeline, we are poised for success in fiscal 2026 and expect to deliver strong cash flow this fiscal year.”

 

Financial Summary 

 

   Three Months Ended June 30,   Fiscal Years Ended June 30, 
(In thousands, except per-share amounts)  2024   2025   % Growth   2024   2025   % Growth 
Revenues  $480,907   $504,985    5%  $1,538,758   $1,713,166    11%
                               
Operating income - GAAP  $62,818   $73,022    16%  $189,061   $217,524    15%
% of revenues   13.1%   14.5%        12.3%   12.7%     
                               
Operating income - non- GAAP  $71,211   $79,479    12%  $212,218   $240,855    13%
% of revenues   14.8%   15.7%        13.8%   14.1%     
                               
Earnings per share - GAAP  $2.55   $3.03    19%  $7.38   $8.71    18%
Earnings per share - non-GAAP  $2.84   $3.24    14%  $8.13   $9.36    15%
                               
Effective tax rate - GAAP   18.3%   19.8%        20.5%   19.6%     
Normalized tax rate - non-GAAP   21.2%   21.9%        23.4%   23.2%     
                               
Book to Bill Ratio   0.8    1.0         0.9    1.1      
                              
Cash flow provided by (used in) operating activities  $(29,041)  $561        $(87,501)  $97,592      
Capital expenditures  $8,499   $6,119        $22,102   $23,832      

 

Alan Edrick, OSI Systems’ Executive Vice President and Chief Financial Officer, added “Subsequent to fiscal year end, we expanded our credit facility to increase our total borrowing capacity to $825 million and extended the maturity to July 2030. With this enhanced facility coupled with our expected strong cash flow generation in fiscal 2026, we are well-positioned to invest in strategic initiatives and drive long-term value.”

 

 

 

 

Fiscal Year 2026 Outlook

 

    Guidance
Revenues   $1.805 billion - $1.850 billion
YoY Growth Rate   5.4% - 8.0%
     
Non-GAAP Diluted Earnings Per Share   $10.11 - $10.39
YoY Growth Rate   8.0% - 11.0%

 

The Company is providing its fiscal 2026 revenues and non-GAAP diluted earnings per share guidance, as indicated above. Actual revenues and non-GAAP diluted earnings per share could vary from this guidance due to factors discussed under “Forward-Looking Statements” or other factors.

 

The Company’s fiscal 2026 diluted earnings per share guidance is provided on a non-GAAP basis only. The Company does not provide a reconciliation of guidance for non-GAAP adjusted diluted EPS to GAAP diluted EPS (the most directly comparable GAAP measure) on a forward-looking basis because the Company is unable to provide a meaningful or accurate compilation of reconciling items and certain information is not available. This is due to the inherent difficulty and complexity in accurately forecasting the timing and amounts of various items included in the calculation of GAAP diluted EPS but excluded in the calculation of non-GAAP diluted EPS, such as acquisition costs and other non-recurring items that have not yet occurred, are out of the Company’s control or cannot otherwise reasonably be predicted. For the same reasons, the Company is unable to address the significance of unavailable information which may be material and therefore could result in GAAP diluted EPS being materially different from projected non-GAAP diluted EPS.

 

Conference Call Information

 

The Company will host a conference call and simultaneous webcast beginning at 9:00 am PT (12:00 pm ET) today to discuss its financial results for the 2025 fourth fiscal quarter and full fiscal year. To listen, please visit the Investor Relations section of the OSI Systems website at http://investors.osi-systems.com/index.cfm and follow the link that will be posted on the front page. A replay of the webcast will be available beginning shortly after the conclusion of the conference call for approximately three months thereafter. The replay can be accessed through the Company’s website at www.osi-systems.com.

 

About OSI Systems

 

OSI Systems designs and manufactures specialized electronic systems and components for critical applications. The Company operates through three key segments: Security, Optoelectronics and Manufacturing, and Healthcare. Its Security division delivers advanced inspection systems, turnkey screening solutions, and comprehensive support services to protect people and infrastructure. The Optoelectronics and Manufacturing segment serves as a trusted global supplier of high-performance optoelectronic solutions and precision manufacturing services for leading OEMs. The Healthcare segment focuses on patient monitoring, diagnostic cardiology, and related services to enhance clinical care and patient outcomes. Serving over 170 countries, OSI Systems strategically positions its sales, service, R&D, and manufacturing capabilities worldwide to provide fast and efficient delivery and support. For more information on OSI Systems or any of its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-E

 

2

 

 

Presentation of Non-GAAP Financial Measures

 

This earnings release includes a presentation of non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP operating income (loss) by segment and non-GAAP operating margin, all of which are non-GAAP financial measures. The presentation of these non-GAAP figures is provided to allow for the comparison of the underlying performance of the Company, excluding the impact of restructuring and other charges (including certain legal costs), amortization of intangible assets acquired through business acquisitions, and associated tax effects, and discrete income tax items. Although we exclude amortization of acquired intangible assets from our non-GAAP figures, revenue generated from such intangibles is included in determining non-GAAP financial performance of the Company. Management believes that the non-GAAP financial measures presented in this earnings release provide (i) enhanced insight into the ongoing operations of the Company, (ii) meaningful information regarding the Company’s financial results (excluding amounts management does not view as reflective of ongoing operating results) for purposes of planning, forecasting and assessing the performance of the Company’s businesses, (iii) a meaningful comparison of financial results of the current period against results of past periods and (iv) financial results that are generally more comparable to financial results of peer companies than are GAAP figures. Non-GAAP financial measures should not be assessed in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. Our non-GAAP measures may not be the same as measures used by other companies due to possible differences in methods and in the items or events for which adjustments are made.

 

Reconciliations of GAAP financial information to non-GAAP financial information are provided in the accompanying tables. The financial results calculated in accordance with GAAP and reconciliations from those financial results should be carefully evaluated.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to the Company's current expectations, beliefs, and projections concerning matters that are not historical facts. Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside the Company's control and which may cause actual results to differ materially from those described in or implied by any forward-looking statement. Forward-looking statements include, but are not limited to, information provided regarding expected revenues, earnings, growth, cash flow generation, and operational performance in fiscal 2026 and beyond. The Company could be exposed to a variety of negative consequences as a result of delays related to the award of domestic and international contracts; failure to secure the renewal of key customer contracts; delays in customer programs; delays in revenue recognition related to the timing of customer acceptance; the impact of potential information technology, cybersecurity or data security breaches; changes in domestic and foreign government spending and budgetary, procurement and trade policies adverse to the Company's businesses; the impact of the Russia-Ukraine conflict or conflicts in the Middle East, including the potential for broad economic disruption; global economic uncertainty, including the impact of tariffs; material delays and cancellations of orders or deliveries thereon, supply chain disruptions, plant closures, or other adverse impacts on the Company’s ability to execute business plans; unfavorable currency exchange rate fluctuations; unfavorable interest rate fluctuations; effect of changes in tax legislation; market acceptance of the Company's new and existing technologies, products, and services; the Company's ability to win new business and convert orders received to sales within the current fiscal year; contract and regulatory compliance matters, and actions which, if brought, could result in judgments, settlements, fines, injunctions, debarment, or penalties; and other risks and uncertainties, including, but not limited to, those detailed herein and from time to time in the Company's Securities and Exchange Commission filings, which could have a material and adverse impact on the Company's business, financial condition, and results of operations. For additional information on these and other factors that could cause the Company's future results to differ materially from those in any forward-looking statements, see the section titled "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K and other risks described therein and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which are based on currently available information and speak only as of the date on which they are made. The Company assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent required to do so under federal securities laws.

 

For Additional Information, Contact:

 

OSI Systems, Inc. 

Ajay Vashishat 

Vice President 

Telephone: (310) 349-2237 

avashishat@osi-systems.com

 

3

 

 

OSI SYSTEMS, INC. AND SUBSIDIARIES 

UNAUDITED CONDENSED Consolidated Statements of Operations 

(in thousands, except per share data)

 

  

Three Months Ended

June 30,

  

Fiscal Year Ended

June 30,

 
   2024   2025   2024   2025 
Revenues:                    
Products   $390,342   $392,633   $1,207,590   $1,323,291 
Services    90,565    112,352    331,168    389,875 
Total net revenues    480,907    504,985    1,538,758    1,713,166 
Cost of goods sold:                    
Products    274,408    277,821    822,346    908,997 
Services    52,182    58,926    185,954    216,987 
Total cost of goods sold    326,590    336,747    1,008,300    1,125,984 
Gross profit    154,317    168,238    530,458    587,182 
Operating expenses:                    
Selling, general and administrative    71,745    74,685    269,731    290,879 
Research and development    15,859    18,844    65,275    73,444 
Restructuring and other charges, net    3,895    1,687    6,391    5,335 
Total operating expenses    91,499    95,216    341,397    369,658 
Income from operations    62,818    73,022    189,061    217,524 
Interest and other expense, net    (8,158)   (7,224)   (27,847)   (31,430)
Income before income taxes    54,660    65,798    161,214    186,094 
Provision for income taxes    (9,981)   (13,050)   (33,060)   (36,457)
                     
Net income   $44,679   $52,748   $128,154   $149,637 
                     
Diluted earnings per share   $2.55   $3.03   $7.38   $8.71 
Weighted average shares outstanding – diluted    17,504    17,412    17,354    17,178 

 

4

 

 

OSI SYSTEMS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

   June 30, 2024   June 30, 2025 
Assets          
           
Cash and cash equivalents   $95,353   $106,405 
Accounts receivable, net    648,155    837,743 
Inventories    397,939    407,174 
Prepaid expenses and other current assets    74,077    71,539 
Total current assets    1,215,524    1,422,861 
Property and equipment, net    113,967    126,747 
Goodwill    351,480    387,393 
Intangible assets, net    139,529    183,290 
Other non-current assets    115,508    120,966 
Total Assets   $1,936,008   $2,241,257 
           
Liabilities and Stockholders' Equity          
           
Bank lines of credit   $384,000   $178,000 
Current portion of long-term debt    8,167    8,130 
Accounts payable and accrued expenses    248,427    281,304 
Other current liabilities    174,043    229,504 
Total current liabilities    814,637    696,938 
Long-term debt    129,383    463,504 
Other long-term liabilities    128,505    129,731 
Total liabilities    1,072,525    1,290,173 
Total stockholders’ equity    863,483    951,084 
Total Liabilities and Stockholders’ Equity   $1,936,008   $2,241,257 

 

5

 

 

SEGMENT INFORMATION AND NON-GAAP FINANCIAL MEASURES 

 

    Three Months Ended June 30,  
    2024     2025  
(In thousands, except per-share amounts)   Revenues   Operating
Income
  % of
Revenues
    Net
Income
    EPS     Revenues     Operating
Income
    % of
Revenues
    Net
Income
    EPS  
OSI Consolidated                                                                            
GAAP basis   $ 480,907   $ 62,818     13.1 %   $ 44,679     $ 2.55     $ 504,985     $ 73,022     $ 14.5 %   $ 52,748     $ 3.03  
Restructuring and other charges, net           3,895     0.8 %     3,895       0.22               1,687       0.3 %     1,687       0.10  
Amortization of acquired intangible assets           4,498     0.9 %     4,498       0.26               4,770       0.9 %     4,770       0.27  
Tax benefit of non-GAAP adjustments                         (1,796 )     (0.10 )                              (1,380 )     (0.08 )
Discrete tax benefit                         (1,596 )     (0.09 )                             (1,373 )     (0.08 )
Non-GAAP basis         $ 71,211     14.8 %   $ 49,680     $ 2.84             $ 79,479       15.7 %   $ 56,452     $ 3.24  
                                                                             
    Revenues   Operating
Income
  % of
Revenues
                    Revenues     Operating
Income
    % of
Revenues
                 
Revenue and Operating Income by Segment                                                                            
Security                                                                            
GAAP basis   $ 342,509   $ 60,678     17.7 %                   $ 366,971     $ 70,538       19.2 %                
Restructuring and other charges, net           54     0.0 %                             -       0.0 %                
Amortization of acquired intangible assets           2,801     0.8 %                             4,174       1.2 %                
Non-GAAP basis           63,533     18.5 %                             74,712       20.4 %                
                                                                             
Optoelectronics & Manufacturing                                                                            
GAAP basis     102,069     10,321     10.1 %                     112,667       14,999       13.3 %                
Restructuring and other charges, net           2,468     2.4 %                             -       0.0 %                
Amortization of acquired intangible assets           1,396     1.4 %                             327       0.3 %                
Non-GAAP basis           14,185     13.9 %                             15,326       13.6 %                
                                                                             
Healthcare                                                                            
GAAP basis     50,305     3,856     7.7 %                     42,684       (1,368 )     -3.2 %                
Restructuring and other charges, net           499     1.0 %                             1,467       3.4 %                
Amortization of acquired intangible assets           301     0.6 %                             269       0.7 %                
Non-GAAP basis           4,656     9.3 %                             368       0.9 %                
                                                                             
Corporate Elimination                                                                            
GAAP basis     (13,976 )   (12,037 )                           (17,337 )     (11,147 )                        
Restructuring and other charges, net           874                                     220                          
Non-GAAP basis           (11,163 )                                   (10,927 )                        
                                                                             
OSI Consolidated                                                                            
GAAP basis   $ 480,907     62,818     13.1 %                   $ 504,985       73,022       14.5 %                
Restructuring and other charges, net           3,895     0.8 %                             1,687       0.3 %                
Amortization of acquired intangible assets           4,498     0.9 %                             4,770       0.9 %                
Non-GAAP basis         $ 71,211     14.8 %                           $ 79,479       15.7 %                

 

6

 

 

SEGMENT INFORMATION AND NON-GAAP FINANCIAL MEASURES

 

    Years Ended June 30,  
    2024     2025  
(In thousands, except per-share amounts)   Revenues     Operating
Income
    % of
Revenues
    Net
Income
    EPS     Revenues     Operating
Income
    % of
Revenues
    Net
Income
    EPS  
OSI Consolidated                                                            
GAAP basis   $ 1,538,758     $ 189,061       12.3 %   $ 128,154     $ 7.38     $ 1,713,166     $ 217,524       12.7 %   $ 149,637     $ 8.71  
Restructuring and other charges, net             6,391       0.4 %     6,391       037               5,335       0.3 %     5,335       0.31  
Amortization of acquired intangible assets             16,766       1.1 %     16,766       0.97               17,996       1.1 %     17,996       1.05  
Tax benefit of non-GAAP adjustments                             (5,428 )     (0.32 )                             (5,413 )     (0.32 )
Discrete tax benefit                             (4,729 )     (0.27 )                             (6,717 )     (0.39 )
Non-GAAP basis           $ 212,218       13.8 %   $ 141,154     $ 8.13             $ 240,855       14.1 %   $ 160,838     $ 9.36  
                                                                     
    Revenues     Operating
Income
    % of
Revenues
                    Revenues     Operating
Income
    % of
Revenues
                 
Revenue and Operating Income by Segment
                                                                               
Security                                                                                
GAAP basis   $ 1,043,073     $ 183,270       17.5 %                   $ 1,196,180     $ 204,952       17.1 %                
Restructuring and other charges, net             675       0.1 %                             1,882       0.2 %                
Amortization of acquired intangible assets             11,567       1.1 %                             14,882       1.2 %                
Non-GAAP basis             195,512       18.7 %                             221,716       18.5 %                
                                                                                 
Optoelectronics & Manufacturing                                                                                
GAAP basis     384,268       42,814       11.2 %                     412,065       51,540       12.5 %                
Restructuring and other charges, net             3,548       0.9 %                             619       0.2 %                
Amortization of acquired intangible assets             3,994       1.0 %                             1,862       0.4 %                
Non-GAAP basis             50,356       13.1 %                             54,021       13.1 %                
                                                                                 
Healthcare                                                                                
GAAP basis     171,435       6,013       3.5 %                     168,362       2,462       1.5 %                
Restucturing and other charges, net             810       0.5 %                             2,246       1.3 %                
Amortization of acquired intangible assets             1,205       0.7 %                             1,252       0.7 %                
Non-GAAP basis             8,028       4.7 %                             5,960       3.5 %                
                                                                                 
Corporate Elimination                                                                                
GAAP basis     (60,018 )     (43,036 )                             (63,441 )     (41,430 )                        
Restructuring and other charges, net             1,358                                       588                          
Non-GAAP basis             (41,678 )                                     (40,842 )                        
                                                                                 
OSI Consolidated                                                                                
GAAP basis   $ 1,538,758       189,061       12.3 %                   $ 1,713,166       217,524       12.7 %                
Restructuring and other charges, net             6,391       0.4 %                             5,335       0.3 %                
Amortization of acquired intangible assets             16,766       1.1 %                             17,996       1.1 %                
Non-GAAP basis           $ 212,218       13.8 %                            $ 240,855       14.1 %                

 

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