01—Abstract
Summary
Summary of the 10-Q filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Labcorp Holdings Inc. (LH) reported second-quarter 2025 revenues of $3.53 billiona, up from $3.22 billion a year earlier, with organic revenue growth of 5.4% and acquisitions contributing 3.5%.
Operating income rose to $394.5 millionb from $294.8 million, and net earnings attributable to Labcorp Holdings Inc. were $237.9 million, or $2.84 diluted EPS, versus $205.3 million, or $2.43, in the prior-year quarter. Diagnostics Laboratories (Dx) generated about 78% of revenues and Biopharma Laboratory Services (BLS) about 22%. Dx segment operating income was $482.8 million, and BLS segment operating income was $123.3 million.
For the six months ended June 30, 2025, revenues were $6.87 billionc, up 7.4%, and net cash provided by operating activities was $639.1 million, compared with $531.3 million a year earlier. The company repaid $1.0 billion of 3.60% senior notes due 2025 and used $200.0 million to repurchase common stock. Cash and cash equivalents fell to $647.3 million from $1.52 billion at December 31, 2024, while long-term debt was $5.08 billion.
Other, net expense of $32.7 milliond in the quarter reflected investment losses of $31.3 million, and the company also entered an equity method investment in SYNLAB. The filing also discloses pending acquisitions of select assets of BioReference Health's oncology lab business (up to $225.0 million) and select outreach assets of Community Health Systems (approximately $195.0 million), expected to close in the second half of 2025 and fourth quarter of 2025, respectively.
Legal matters disclosed include a Ravgen patent judgment under appeal and a Texas Medicaid qui tam action. The company reported that it was in compliance with its debt covenants and expects to remain so for the next 12 months.
02—Key points
Key Highlights
- Total revenues were $3,527.3 million in Q2 2025, up 9.5% from $3,220.9 million, with organic revenue growth of 5.4% and acquisitions contributing 3.5%.
- Operating income increased to $394.5 million from $294.8 million, and operating income for the six months rose to $720.5 million from $616.1 million.
- Diluted EPS was $2.84 for Q2 2025 versus $2.43 a year earlier; net earnings attributable to Labcorp Holdings Inc. were $237.9 million versus $205.3 million.
- Dx segment operating income was $482.8 million with a 17.6% operating margin; BLS segment operating income was $123.3 million with a 15.7% margin.
- Other, net expense was $32.7 million in Q2 2025, driven by investment losses of $31.3 million, compared with other income of $19.5 million a year earlier.
- The company repaid $1.0 billion of 3.60% senior notes due 2025 and repurchased $200.0 million of common stock in the first half of 2025; $1,080.4 million remained under the repurchase authorization.
- Pending acquisitions include BioReference Health's oncology lab assets (up to $225.0 million) and Community Health Systems' outreach assets (approximately $195.0 million), with the company expecting to pay up to $420.0 million in total.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Labcorp Holdings kept $0.07.
- Revenue$3.53B100.0%
- Cost of revenue−$2.48B70.3%
- Gross profit$1.05B29.7%
- Operating costs−$651.7M18.5%
- Operating income$394.5M11.2%
- Interest, other & tax−$156.6M4.4%
- Net income$237.9M6.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 1, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $3.53B$3.22B | +9.5% |
| Cost of Revenue | $2.48B$2.29B | +8.1% |
| Gross Profit | $1.05B$926.40M | +12.9% |
| SG&A Expenses | $579.30M$557.80M | +3.9% |
| Operating Income | $394.50M$294.80M | +33.8% |
| Interest Expense | $57.10M$47.60M | +20.0% |
| Net Income | $237.90M$205.30M | +15.9% |
| EPS (Basic) | $2.85$2.44 | +16.8% |
| EPS (Diluted) | $2.84$2.43 | +16.9% |
| Shares Outstanding (Basic) | 83.40M84.10M | −0.8% |
| Shares Outstanding (Diluted) | 83.90M84.30M | −0.5% |
05—Questions
Frequently Asked Questions
How did Labcorp's revenue and profitability trend in the second quarter of 2025?
Revenues rose 9.5% to $3,527.3 million, driven by organic growth of 5.4% and acquisitions of 3.5%. Operating income increased to $394.5 million from $294.8 million, and diluted EPS rose to $2.84 from $2.43.
What drove the change in Other, net in the quarter?
Other, net was an expense of $32.7 million, primarily due to investment losses of $31.3 million, compared with investment losses of $1.5 million in the prior-year quarter. A $22.4 million decrease in transition services fees charged to Fortrea also contributed to the change.
How did the company's liquidity and debt position change in the first half of 2025?
Cash and cash equivalents decreased to $647.3 million from $1,518.7 million at year-end 2024, mainly after repaying $1.0 billion of senior notes. Long-term debt was $5,077.3 million, and an accounts receivable securitization facility provided $225.0 million in proceeds. The company had $1,000.0 million available under its revolving credit facility at June 30, 2025.
What acquisitions are pending and what do they involve?
The company agreed to acquire select assets of the BioReference Health laboratory business focused on oncology testing for up to $225.0 million, expected to close in the second half of 2025. It also agreed to acquire select outreach business assets from Community Health Systems across 13 states for approximately $195.0 million, expected to close in the fourth quarter of 2025.
What is the status of the Ravgen patent litigation?
A jury found in 2022 that the company willfully infringed a Ravgen patent. Post-verdict orders included supplemental damages of $2.6 million and an ongoing royalty per test, and the company has appealed and posted an appeal bond to stay enforcement. The company strongly disagrees with the verdict and says it will vigorously defend the lawsuit.
06—Continue