Revenue growth remains highly volatile, fluctuating from a 9.9% decline in 2024Q3 to an 11.3% expansion in 2025Q4, while gross margins remain constrained within a narrow 30.1% to 36.0% range.
| Sales/Revenue | 857.5M | 844.6M | 811M | 893.4M | 859.4M | 818.1M | 738.3M | 780.6M | 773.4M | 698.1M | 620.1M | 632.3M | 685.2M |
| Revenue Growth % | 4.05% | 4.14% | -9.22% | 3.96% | 5.05% | 10.81% | -5.42% | 0.93% | 10.79% | 12.58% | -1.93% | -7.72% | - |
| Cost of Goods Sold | 569.8M | 554.1M | 554.1M | 603.1M | 575.9M | 546.6M | 548.1M | 523.9M | 519.5M | 444.6M | 371.7M | 381.7M | 406.6M |
| COGS % of Revenue | - | 65.61% | 68.32% | 67.51% | 67.01% | 66.81% | 74.24% | 67.12% | 67.17% | 63.69% | 59.94% | 60.37% | 59.34% |
| Gross Profit | 287.7M | 290.5M | 256.9M | 290.3M | 283.5M | 271.5M | 190.2M | 256.7M | 253.9M | 253.5M | 248.4M | 250.6M | 278.6M |
| Gross Margin % | 33.55% | 34.39% | 31.68% | 32.49% | 32.99% | 33.19% | 25.76% | 32.88% | 32.83% | 36.31% | 40.06% | 39.63% | 40.66% |
| Gross Profit Growth % | - | 13.08% | -11.51% | 2.4% | 4.42% | 42.74% | -25.91% | 1.1% | 0.16% | 2.05% | -0.88% | -10.05% | - |
| Operating Expenses | 319M | 318.3M | 224.8M | 213.2M | 195.3M | 197.4M | 223.9M | 206.2M | 209.4M | 169.8M | 139.3M | 123.1M | 102.6M |
| OpEx % of Revenue | - | 37.69% | 27.72% | 23.86% | 22.73% | 24.13% | 30.33% | 26.42% | 27.08% | 24.32% | 22.46% | 19.47% | 14.97% |
| Selling, General & Admin | 135.6M | 133.3M | 137.8M | 128.4M | 118.3M | 125.5M | 142.2M | 128.1M | 126.4M | 102.5M | 85.8M | 72.7M | 62.6M |
| SG&A % of Revenue | - | 15.78% | 16.99% | 14.37% | 13.77% | 15.34% | 19.26% | 16.41% | 16.34% | 14.68% | 13.84% | 11.5% | 9.14% |
| Research & Development | 89.5M | 91.1M | 87M | 84.8M | 77M | 71.9M | 78.9M | 78.1M | 83M | 67.3M | 53.5M | 50.4M | 40M |
| R&D % of Revenue | - | 10.79% | 10.73% | 9.49% | 8.96% | 8.79% | 10.69% | 10.01% | 10.73% | 9.64% | 8.63% | 7.97% | 5.84% |
| Other Operating Expenses | 1000K | 93.9M | 0 | 0 | 0 | 0 | 2.8M | 0 | 0 | 0 | -900K | 500K | -400K |
| Operating Income | -31.3M | -27.8M | 32.1M | 77.1M | 88.2M | 74.1M | -33.7M | 8.2M | 44.5M | 83.7M | 109.1M | 127.5M | 176M |
| Operating Margin % | -3.65% | -3.29% | 3.96% | 8.63% | 10.26% | 9.06% | -4.56% | 1.05% | 5.75% | 11.99% | 17.59% | 20.16% | 25.69% |
| Operating Income Growth % | - | -186.6% | -58.37% | -12.58% | 19.03% | 319.88% | -510.98% | -81.57% | -46.83% | -23.28% | -14.43% | -27.56% | - |
| EBITDA | -4.2M | -600K | 63.2M | 110.3M | 121.8M | 111.4M | 5.8M | 47.4M | 86.7M | 111.1M | 124.4M | 139.8M | 186.1M |
| EBITDA Margin % | -0.49% | -0.07% | 7.79% | 12.35% | 14.17% | 13.62% | 0.79% | 6.07% | 11.21% | 15.91% | 20.06% | 22.11% | 27.16% |
| EBITDA Growth % | -105.12% | -100.95% | -42.7% | -9.44% | 9.34% | 1820.69% | -87.76% | -45.33% | -21.96% | -10.69% | -11.02% | -24.88% | - |
| D&A (Non-Cash Add-back) | 27.1M | 27.2M | 31.1M | 33.2M | 33.6M | 37.3M | 39.5M | 39.2M | 42.2M | 27.4M | 15.3M | 12.3M | 10.1M |
| EBIT | -26.1M | -23.7M | 31.8M | 61.5M | 80.9M | 67.2M | -48.2M | 42.6M | 47.4M | 87.1M | 109.1M | 127.5M | 176M |
| Net Interest Income | -37.6M | -27M | -23.8M | -25.6M | -40.6M | -43.3M | -31.3M | -21M | -21.5M | -12.1M | -1.6M | -700K | -600K |
| Interest Income | 4.5M | 8.5M | 7.3M | 3.7M | 400K | 100K | 100K | 100K | 200K | 200K | 300K | 500K | 300K |
| Interest Expense | 42.1M | 35.5M | 31.1M | 29.3M | 41M | 43.4M | 31.4M | 21.1M | 21.7M | 12.3M | 1.9M | 1.2M | 900K |
| Other Income/Expense | -43.8M | -31.4M | -27.1M | -45.8M | -43.7M | -45.5M | -38.9M | 0 | -18.8M | -8.9M | -4.1M | 100K | -1.8M |
| Pretax Income | -75.1M | -59.2M | 5M | 31.3M | 44.5M | 28.6M | -72.6M | 21.5M | 25.7M | 74.8M | 105M | 127.6M | 174.2M |
| Pretax Margin % | -8.76% | -7.01% | 0.62% | 3.5% | 5.18% | 3.5% | -9.83% | 2.75% | 3.32% | 10.71% | 16.93% | 20.18% | 25.42% |
| Income Tax | 7.4M | 10.7M | 52.2M | -16.6M | 13.7M | 10.7M | -15.2M | 5.7M | -2.6M | 22.8M | 36M | 46.8M | 64.1M |
| Effective Tax Rate % | -9.85% | -18.07% | 1044% | -53.04% | 30.79% | 37.41% | 20.94% | 26.51% | -10.12% | 30.48% | 34.29% | 36.68% | 36.8% |
| Net Income | -82.7M | -70.3M | -47.7M | 47.4M | 30.3M | 17.4M | -57.9M | 15.5M | 27.5M | 51.6M | 68.5M | 80M | 110.1M |
| Net Margin % | -9.64% | -8.32% | -5.88% | 5.31% | 3.53% | 2.13% | -7.84% | 1.99% | 3.56% | 7.39% | 11.05% | 12.65% | 16.07% |
| Net Income Growth % | 11.46% | -47.38% | -198.96% | 56.44% | 74.14% | 130.05% | -473.55% | -43.64% | -46.71% | -24.67% | -14.37% | -27.34% | - |
| Net Income (Continuing) | -82.5M | -69.9M | -47.2M | 47.9M | 30.8M | 17.9M | -57.4M | 15.8M | 28.3M | 52M | 69M | 80.8M | 110.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 13.9M | 14M | 14.1M | 13.3M | 13.3M | 13.2M | 14.1M | 13.8M | 13.2M | 11.2M | 10.3M | 11M | 0 |
| EPS (Diluted) | -1.97 | -1.70 | -1.17 | 0.96 | 0.73 | 0.43 | -1.49 | 0.40 | 0.72 | 1.36 | 1.78 | 2.08 | 2.87 |
| EPS Growth % | 14.62% | -45.3% | -208.33% | 31.51% | 69.77% | 128.86% | -472.5% | -44.44% | -47.06% | -23.6% | -14.42% | -27.53% | - |
| EPS (Basic) | - | -1.70 | -1.17 | 1.20 | 0.76 | 0.44 | -1.49 | 0.41 | 0.73 | 1.37 | 1.79 | 2.09 | 2.88 |
| Diluted Shares Outstanding | 41.9M | 41.4M | 40.8M | 50.3M | 41.6M | 40.3M | 38.8M | 38.6M | 38.4M | 38M | 38.4M | 38.4M | 38.4M |
| Basic Shares Outstanding | 41.9M | 41.4M | 40.8M | 40.3M | 39.8M | 39.3M | 38.8M | 38.2M | 37.9M | 37.6M | 38.2M | 38.2M | 38.2M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical and competitive margin pressure
According to recent financial filings, Varex's revenue growth has exhibited significant inconsistency, fluctuating from a 9.9% decline in 2024Q3 to a 11.3% expansion by 2025Q4, suggesting that the company's top-line performance is heavily tethered to cyclical hospital capital expenditure cycles and lumpy OEM stocking orders.
The erratic revenue trajectory implies that Varex lacks a stable organic growth engine, likely due to its reliance on large-scale imaging system cycles rather than purely recurring service revenue. Investors should monitor whether the recent deceleration to 1.5% growth in 2026Q2 reflects a structural cooling in demand or merely the timing of major customer procurement cycles.
As reported in quarterly statements, Varex's gross margins have hovered within a narrow 30.1% to 36.0% range, indicating that the firm faces structural challenges in achieving the pricing power necessary to offset the high-fixed-cost nature of its specialized vacuum electronics manufacturing and intense global competition.
The inability to consistently expand gross margins suggests that Varex may be struggling to pass through inflationary costs for refractory metals like tungsten to its OEM partners. This lack of margin expansion appears to be a primary factor in the company's difficulty in maintaining consistent GAAP profitability, warranting further investigation into its pricing strategy.
Based on Varex's reported income statements, operating income has failed to scale predictably with revenue, as evidenced by the sharp -39.8% operating margin recorded in 2025Q3, which highlights a significant vulnerability to under-absorption of fixed costs during periods of even modest top-line contraction.
The company's operating leverage appears constrained by a high-fixed-cost manufacturing footprint that does not easily adjust to revenue volatility. This suggests that unless Varex can achieve a higher volume threshold or successfully shift its product mix toward higher-margin industrial applications, operating profitability may remain susceptible to sudden, sharp declines.
As indicated by the company's financial disclosures, net income has been frequently impacted by non-operating items and significant quarterly swings, such as the $89.1 million net loss in 2025Q3, which complicates the assessment of the firm's true underlying earning power and operational efficiency.
The frequent divergence between operating income and net income suggests that investors should be cautious of relying on headline EPS figures, which may be distorted by restructuring charges or tax valuation allowances. The persistent presence of negative net income in several recent quarters warrants further investigation into whether these are truly transitory or indicative of a deeper structural deficit.
Based on industry trends, the primary challenge to Varex's narrative is the potential for domestic Chinese manufacturers to erode the company's market share in the CT tube segment, a risk that could permanently impair the firm's ability to command premium pricing in its most critical product category.
Short-sellers would likely focus on the risk that Varex's 'Switzerland' positioning is being undermined by localization policies that favor domestic suppliers over independent merchant vendors. If the company cannot maintain its technological lead in high-heat-capacity tubes, the current valuation may be predicated on a competitive advantage that is rapidly narrowing.
Quick answers to the most common questions about buying VREX stock.
For fiscal year 2025, Varex Imaging Corporation (VREX) reported total revenue of $844.6M. This represents a 23.3% increase compared to $685.2M in 2014.
Varex Imaging Corporation (VREX) reported a net loss of $70.3M for the fiscal year ending 2025.
Varex Imaging Corporation (VREX) reported an operating income of $-27.8M, resulting in an operating profit margin of -3.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Varex Imaging Corporation (VREX) generated $290.5M in gross profit for the year, representing a gross profit margin of 34.4%. This demonstrates the company's core pricing power and production efficiency.