$VREX

Varex Imaging Corp

CIK:0001681622|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 03, 2026	Jul. 04, 2025	Jul. 03, 2026	Jul. 04, 2025
Income Statement [Abstract]
Revenues, net	$ 210.5	$ 203.0	$ 636.1	$ 615.7
Cost of revenues	133.8	135.5	417.0	403.0
Gross profit	76.7	67.5	219.1	212.7
Operating expenses:
Research and development	23.3	21.4	67.2	66.9
Selling, general, and administrative	30.6	32.9	99.3	99.3
Impairment of goodwill	0.0	93.9	0.0	93.9
Total operating expenses	53.9	148.2	166.5	260.1
Operating income (loss)	22.8	(80.7)	52.6	(47.4)
Interest income	0.9	2.5	1.9	7.5
Interest expense	(5.8)	(9.4)	(30.9)	(27.6)
Other (expense) income, net	(1.7)	1.0	(10.0)	(5.8)
Interest and other expense, net	(6.6)	(5.9)	(39.0)	(25.9)
Income (loss) before taxes	16.2	(86.6)	13.6	(73.3)
Income tax expense	0.3	2.5	3.3	8.8
Net income (loss)	15.9	(89.1)	10.3	(82.1)
Less: Net income attributable to noncontrolling interests	0.2	0.0	0.4	0.4
Net income (loss) attributable to Varex	$ 15.7	$ (89.1)	$ 9.9	$ (82.5)
Net income (loss) per common share attributable to Varex
Basic (in USD per share)	$ 0.37	$ (2.15)	$ 0.24	$ (2.00)
Diluted (in USD per share)	$ 0.37	$ (2.15)	$ 0.23	$ (2.00)
Weighted average common shares outstanding
Basic (in shares)	42.1	41.5	42.0	41.3
Diluted (in shares)	42.6	41.5	42.5	41.3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Jul. 03, 2026	Jul. 04, 2025
Cash flows from operating activities:
Net income (loss)	$ 10.3	$ (82.1)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Share-based compensation expense	11.6	11.6
Depreciation	17.3	17.6
Amortization of intangible assets	3.3	2.9
Deferred taxes	0.1	(3.2)
Loss from equity method investments	4.3	2.5
Amortization of deferred loan costs	1.1	2.3
Impairment of goodwill	0.0	93.9
Inventory write-down	4.3	3.0
Loss on debt extinguishment	9.4	0.1
Other, net	2.6	0.1
Changes in assets and liabilities:
Accounts receivable	11.0	20.2
Inventories, net	(53.4)	(37.6)
Prepaid expenses and other assets	(7.3)	(5.3)
Accounts payable	12.9	11.6
Accrued liabilities and other current and long-term liabilities	(20.7)	(11.4)
Deferred revenues	(3.4)	7.6
Net cash provided by operating activities	3.4	33.8
Cash flows from investing activities:
Purchases of property, plant, and equipment	(25.9)	(17.3)
Proceeds from sales of marketable debt securities	2.0	10.5
Proceeds from maturities of marketable debt securities	8.1	45.3
Purchase of marketable debt securities	0.0	(30.6)
Proceeds from maturities of certificates of deposit	0.0	3.4
Settlement of net investment hedge	0.0	(0.8)
Other, net	(1.3)	0.5
Net cash (used in) provided by investing activities	(17.1)	11.0
Cash flows from financing activities:
Proceeds from issuance of term loans	345.5	0.0
Taxes related to net share settlement of equity awards	(1.5)	(1.9)
Proceeds from issuance of senior secured notes	0.0	126.9
Debt extinguishment costs	(7.2)	0.0
Repayments of borrowings	(377.8)	(201.5)
Proceeds from revolver borrowings	26.2	0.0
Repayments of revolver borrowings	(17.5)	0.0
Payment of debt issuance costs	(0.7)	(1.2)
Proceeds from shares issued under employee stock purchase plan	1.7	1.7
Other, net	(0.8)	(1.0)
Net cash used in financing activities	(32.1)	(77.0)
Effects of exchange rate changes on cash and cash equivalents and restricted cash	(0.2)	0.3
Net decrease in cash and cash equivalents and restricted cash	(46.0)	(31.9)
Cash and cash equivalents and restricted cash at beginning of period	147.1	170.4
Cash and cash equivalents and restricted cash at end of period	101.1	138.5
Supplemental cash flow information:
Cash paid for interest	33.0	30.6
Income taxes paid, net of refunds	11.2	17.1
Supplemental non-cash activities:
Purchases of property, plant, and equipment financed through accounts payable	$ 6.2	$ 0.7

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jul. 03, 2026	Oct. 03, 2025
Current assets:
Cash and cash equivalents	$ 99.2	$ 145.0
Marketable securities	0.0	10.1
Accounts receivable, net of allowance for credit losses of $1.9 million and $2.1 million at July 3, 2026 and October 3, 2025, respectively	144.7	156.6
Inventories, net	347.1	299.4
Prepaid expenses and other current assets	42.1	30.7
Total current assets	633.1	641.8
Property, plant, and equipment, net	169.3	157.8
Goodwill	197.6	198.4
Intangible assets, net	12.4	14.0
Investments in privately-held companies	20.2	24.5
Deferred tax assets	2.0	2.9
Operating lease assets	27.7	29.4
Other assets	37.7	38.6
Total assets	1,100.0	1,107.4
Current liabilities:
Accounts payable	83.5	69.9
Accrued liabilities and other current liabilities	72.6	98.4
Current operating lease liabilities	4.5	4.4
Current maturities of long-term debt, net	18.2	1.5
Deferred revenues	8.6	13.0
Total current liabilities	187.4	187.2
Long-term debt, net	328.9	366.0
Deferred tax liabilities	4.5	5.5
Operating lease liabilities	22.0	24.0
Other long-term liabilities	46.7	38.1
Total liabilities	589.5	620.8
Stockholders' equity:
Preferred stock, $0.01 par value: 20,000,000 shares authorized, none issued	0.0	0.0
Common stock, $0.01 par value: 150,000,000 shares authorized; Shares issued and outstanding: TBU and 41,689,672 at July 3, 2026 and October 3, 2025, respectively	0.4	0.4
Additional paid-in capital	495.1	483.3
Accumulated other comprehensive loss	(2.9)	(5.2)
Retained earnings (accumulated deficit)	4.0	(5.9)
Total Varex stockholders' equity	496.6	472.6
Noncontrolling interests	13.9	14.0
Total stockholders' equity	510.5	486.6
Total liabilities and stockholders' equity	$ 1,100.0	$ 1,107.4