Varex Imaging (NASDAQ:VREX) Issues Earnings Results

Key Points

• Varex reported Q2 revenue of $216M and non‑GAAP EPS of $0.21, slightly missing estimates, and provided full‑year guidance of $860M–$880M revenue and $0.80–$1.00 non‑GAAP EPS while setting Q3 EPS guidance at $0.15–$0.30.
• The company completed a debt refinancing that cut interest expense and left net debt near $263M with trailing‑12M leverage around 2.2x, improving financial flexibility.
• Operational headwinds remain: inventory rose to about $347M (~220 days), cash fell by ~$37M, Varex recorded a GAAP net loss of $8M (GAAP EPS −$0.19) and took a $1.8M non‑cash mark‑to‑market charge on Micro‑X shares.

Varex Imaging (NASDAQ:VREX - Get Free Report) announced its earnings results on Thursday. The company reported $0.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.22 by ($0.01), FiscalAI reports. The firm had revenue of $216.00 million during the quarter, compared to analysts' expectations of $216.92 million. Varex Imaging had a negative net margin of 7.92% and a positive return on equity of 8.43%. Varex Imaging updated its Q3 2026 guidance to 0.150-0.300 EPS.

Here are the key takeaways from Varex Imaging's conference call:

• Varex reported Q2 revenue of $216M, non‑GAAP gross margin of 34%, non‑GAAP EPS of $0.21, and provided full‑year guidance of $860M–$880M revenue and $0.80–$1.00 non‑GAAP EPS.
• The company completed a debt refinancing that reduced outstanding debt and annual interest expense, leaving net debt of about $263M and trailing‑12M leverage near 2.2x, improving financial flexibility.
• Industrial momentum continued—bookings and implementations for cargo inspection systems increased, photon‑counting adoption (notably in food inspection) is strong, and management expects industrial to be an expanding growth and margin driver.
• Operational headwinds include inventory rising to $347M (220 days), cash down $37M (mainly from refinancing), a GAAP net loss of $8M (GAAP EPS −$0.19), and a $1.8M non‑cash mark‑to‑market charge on Micro‑X shares that management did not adjust out.
• Manufacturing ramps in India are underway—detector capacity utilization is currently low but expected to reach ~60%–70% by year‑end, which management says should shift a current gross‑margin/OpEx headwind into a tailwind over time.

Varex Imaging Stock Down 2.8%

Shares of Varex Imaging stock traded down $0.34 during trading hours on Thursday, reaching $11.83. 563,251 shares of the company were exchanged, compared to its average volume of 272,965. Varex Imaging has a 1 year low of $6.76 and a 1 year high of $14.56. The stock's fifty day moving average is $11.55 and its 200 day moving average is $12.17. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.87 and a current ratio of 3.89. The firm has a market cap of $495.68 million, a PE ratio of -7.21 and a beta of 0.96.

Insider Buying and Selling at Varex Imaging

In other news, Director Jay K. Kunkel sold 4,510 shares of the company's stock in a transaction on Friday, March 20th. The stock was sold at an average price of $11.14, for a total transaction of $50,241.40. Following the sale, the director owned 23,450 shares of the company's stock, valued at approximately $261,233. This represents a 16.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 4.60% of the company's stock.

Institutional Trading of Varex Imaging

A number of large investors have recently modified their holdings of VREX. Millennium Management LLC increased its position in shares of Varex Imaging by 119.8% during the third quarter. Millennium Management LLC now owns 913,169 shares of the company's stock worth $11,323,000 after acquiring an additional 497,650 shares during the period. Qube Research & Technologies Ltd grew its stake in shares of Varex Imaging by 2,514.9% during the second quarter. Qube Research & Technologies Ltd now owns 318,127 shares of the company's stock worth $2,758,000 after purchasing an additional 305,961 shares in the last quarter. Deerfield Management Company L.P. acquired a new position in shares of Varex Imaging during the third quarter worth $3,537,000. Essex Investment Management Co. LLC acquired a new position in shares of Varex Imaging during the fourth quarter worth $3,196,000. Finally, JPMorgan Chase & Co. grew its stake in shares of Varex Imaging by 381.8% during the third quarter. JPMorgan Chase & Co. now owns 284,227 shares of the company's stock worth $3,524,000 after purchasing an additional 225,238 shares in the last quarter.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on VREX shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Varex Imaging in a research report on Friday, March 27th. Wall Street Zen lowered Varex Imaging from a "strong-buy" rating to a "buy" rating in a research report on Saturday, April 25th. Zacks Research raised Varex Imaging from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 13th. B. Riley Financial reissued a "buy" rating on shares of Varex Imaging in a research report on Thursday, February 12th. Finally, Jefferies Financial Group reissued a "hold" rating and issued a $14.50 target price on shares of Varex Imaging in a research report on Monday, February 2nd. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Varex Imaging currently has a consensus rating of "Moderate Buy" and a consensus target price of $16.17.

Varex Imaging Company Profile

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company's medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.

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