Company diagnostic
Diagnostics and life science tools
BIO
Bio-Rad Laboratories
Net income of $759.9M rests on $948.3M of non-operating gains, mainly the Sartorius stake; adjusted operating margin of 8.5% trails the 12.8% median and inventory sits at 217.4 days.
Why now
In the news
Bio-Rad reported third-quarter 2026 net sales of $656.4 million on November 4, 2026, up 0.5%, with another fair value gain on its Sartorius stake and $77.2 million of restructuring costs, per the company's results release.
Business health score
39
Out of 100
Addressable estimate
$124.5M addressable estimate (observed gap $273.3M)
Revenue
$2,583.2M (FY2025)
Operating margin
8.5% adjusted (1.8% reported)
As reported
Filing
Form 10-K, fiscal year 2025 (year ended December 31, 2025)
Run
November 10, 2026
Processing
8
minutes
Output
37
-page PDF and Excel model
Data quality
90
Point-in-time analysis from the filing and run date shown. The news context reflects reporting available on that date, and this page is not updated as events move on.
Score by dimension
Financial health
43
Growth potential
Strategic readiness
Market position
Innovation and digital
Operational efficiency
34
First 100-day action
Set up a cross-functional steering committee (CFO, COO, supply chain, commercial) to run the inventory reduction, SG&A rationalization and gross margin work, with defined decision rights and a weekly cadence.
How it compares
- Revenue growth: 0.7% vs peer median 2.3% (Behind median)
- Gross margin: 51.9% vs peer median 56.7% (Well behind median)
- Operating margin, adjusted: 8.5% (1.8% reported) vs peer median 12.8% (Well behind median)
- EBITDA margin, adjusted: 14.9% (8.2% reported) vs peer median 26.7% (Well behind median)
- SG&A, % of revenue: 32.7% vs peer median 27.9% (Behind median)
- R&D, % of revenue: 10.7% vs peer median 7.6% (Top quartile)
- Debt to equity: 0.16x vs peer median 0.44x (Top quartile)
- Inventory turnover: 1.68x vs peer median 2.55x (Well behind median)
- Days sales outstanding: 65.1 days vs peer median 69 days (Better than median)
- Days inventory outstanding: 217.4 days vs peer median 143 days (Well behind median)
- Days payable outstanding: 37.9 days vs peer median 52 days (Well behind median)
Top three levers
Lever 1
SG&A overhead rationalization and shared services expansion
Why this lever
SG&A of $844.3M is 32.7% of revenue against a 27.9% diagnostics median, a 4.8-point gap and an observed $124M. The report points to consolidating administrative functions and regional management layers into shared services, and treats 40% of the gap as addressable, an estimate to be tested.
Size
$49.6M
Observed gap $124M
Lever 2
Gross margin recovery through COGS efficiency and manufacturing yield
Why this lever
Gross margin of 51.9% trails the 56.7% median by 4.8 points, an observed gap of $124M. The report points to raw material procurement, direct manufacturing cost and production yield across Life Science reagents and Clinical Diagnostics, and treats 40% as addressable.
Size
$49.6M
Observed gap $124M
Lever 3
Inventory reduction and supply chain optimization
Why this lever
Inventory at 217.4 days trails the 143-day median by 74.4 days. Closing the gap is a one-time cash release; the recurring benefit is the carrying cost.
Size
$25.3M a year
Carrying benefit on a one-time $253.4M cash release
Questions for management
- What is the current status of the July 2026 restructuring plan? Which specific functions and geographies are being consolidated, and what is the timeline for headcount reductions and facility closures?
- How much of the $124M gross margin gap (51.9% vs. 56.7% sector median) is attributable to product mix (Life Science vs. Diagnostics), manufacturing yield, or procurement costs? What are the specific cost-reduction targets by category?
- What is the addressable share of the $124M SG&A gap (32.7% vs. 27.9% sector median)? Which cost categories (sales, marketing, G&A, IT, HR, finance) are most elevated, and what is the timeline for shared services consolidation?
Summary
Bio-Rad Laboratories reported fiscal 2025 revenue of $2,583.2M, up 0.7%, and net income of $759.9M. That profit rests on $948.3M of non-operating gains, mainly the fair value of its Sartorius stake: operating income was $47.2M, a 1.8% margin, after $172.8M of non-cash intangible impairments. Adjusted for the impairment, operating margin is 8.5%. Net margin and returns are therefore observed, not scored.
Against global diagnostics peers, adjusted operating margin trails the 12.8% median, gross margin of 51.9% trails 56.7% and SG&A at 32.7% of revenue trails 27.9%. The report sizes three levers, $124.5M in total against observed gaps of $273.3M, and labels the addressable shares estimates. Inventory at 217.4 days against a 143-day median would release $253.4M of cash once if closed; only the $25.3M annual carrying benefit counts in the value bridge.
The balance sheet is a strength. Cash of $529.8M and short-term investments of $1,010.9M exceed total debt of $1,203M, a net cash position of $337.7M, and debt to equity of 0.16x is top quartile. The first 100-day move is a steering committee for the inventory, SG&A and gross margin work. The questions for management cover the July 2026 restructuring, the sources of the gross margin gap and the addressable share of SG&A.
What this report does not cover
Net margin, return on assets, return on equity and total-asset turnover are observed, not scored: $948.3M of $995.5M pre-tax income was earned outside operations, and $6,103.6M of $10,576.5M total assets is a non-current investment (turnover on operating assets is 0.58x). Four of six health dimensions are not rated, because fewer than two benchmarked metrics were available for each. The July 2026 restructuring plan and later results come from market intelligence and are not reflected in the FY2025 figures.
More company diagnostics and category insights
All insightsRun this on a company you are assessing
Request a free analysisThis analysis is generated by the ValueChaser platform from the company's public Form 10-K, ValueChaser benchmarks and public market intelligence. It is not investment advice, does not reflect any non-public information and is not affiliated with or endorsed by the company.
