OSI Systems Reports Fiscal 2025 Fourth Quarter and Full Fiscal Year Financial Results

Record Q4 Revenues of $505 Million Record Fiscal Year Revenues of $1.713 billion (up 11% YoY) Q4 GAAP EPS of $3.03 and Record Non-GAAP EPS of $3.24 Fiscal Year GAAP EPS of $8.71 and Record Non-GAAP EPS of $9.36 (up 15% YoY) Year-End Backlog of > $1.8 Billion

HAWTHORNE, Calif., August 21, 2025--(BUSINESS WIRE)--OSI Systems, Inc. (the "Company" or "OSI Systems") (NASDAQ: OSIS) today announced its financial results for the three months and fiscal year ended June 30, 2025.

Ajay Mehra, OSI Systems’ President and Chief Executive Officer, stated: "We are pleased to report record-breaking fourth quarter and 2025 fiscal year revenues and non-GAAP earnings per share, led by excellent execution in our Security division. Fourth quarter performance was driven by strong growth in the Security division’s service revenues resulting from an increasing installed base of our products. With robust bookings, solid backlog and high visibility into our opportunity pipeline, we are poised for success in fiscal 2026 and expect to deliver strong cash flow this fiscal year."

Financial Summary Three Months Ended June 30, Fiscal Years Ended June 30, (In thousands, except per-share amounts) 2024 2025 % Growth 2024 2025 % Growth Revenues $ 480,907 $ 504,985 5% $ 1,538,758 $ 1,713,166 11% Operating income - GAAP $ 62,818 $ 73,022 16% $ 189,061 $ 217,524 15% % of revenues 13.1% 14.5% 12.3% 12.7% Operating income - non- GAAP $ 71,211 $ 79,479 12% $ 212,218 $ 240,855 13% % of revenues 14.8% 15.7% 13.8% 14.1% Earnings per share - GAAP $ 2.55 $ 3.03 19% $ 7.38 $ 8.71 18% Earnings per share - non-GAAP $ 2.84 $ 3.24 14% $ 8.13 $ 9.36 15% Effective tax rate - GAAP 18.3% 19.8% 20.5% 19.6% Normalized tax rate - non-GAAP 21.2% 21.9% 23.4% 23.2% Book to Bill Ratio 0.8 1.0 0.9 1.1 Cash flow provided by (used in) operating activities $ (29,041) $ 561 $ (87,501) $ 97,592 Capital expenditures $ 8,499 $ 6,119 $ 22,102 $ 23,832

Alan Edrick, OSI Systems’ Executive Vice President and Chief Financial Officer, added: "Subsequent to fiscal year end, we expanded our credit facility to increase our total borrowing capacity to $825 million and extended the maturity to July 2030. With this enhanced facility coupled with our expected strong cash flow generation in fiscal 2026, we are well-positioned to invest in strategic initiatives and drive long-term value."

Fiscal Year 2026 Outlook

Guidance Revenues $1.805 billion - $1.850 billion YoY Growth Rate 5.4% - 8.0% Non-GAAP Diluted Earnings Per Share $10.11 - $10.39 YoY Growth Rate 8.0% - 11.0%

The Company is providing its fiscal 2026 revenues and non-GAAP diluted earnings per share guidance, as indicated above. Actual revenues and non-GAAP diluted earnings per share could vary from this guidance due to factors discussed under "Forward-Looking Statements" or other factors.

Story Continues

The Company’s fiscal 2026 diluted earnings per share guidance is provided on a non-GAAP basis only. The Company does not provide a reconciliation of guidance for non-GAAP adjusted diluted EPS to GAAP diluted EPS (the most directly comparable GAAP measure) on a forward-looking basis because the Company is unable to provide a meaningful or accurate compilation of reconciling items and certain information is not available. This is due to the inherent difficulty and complexity in accurately forecasting the timing and amounts of various items included in the calculation of GAAP diluted EPS but excluded in the calculation of non-GAAP diluted EPS, such as acquisition costs and other non-recurring items that have not yet occurred, are out of the Company’s control or cannot otherwise reasonably be predicted. For the same reasons, the Company is unable to address the significance of unavailable information which may be material and therefore could result in GAAP diluted EPS being materially different from projected non-GAAP diluted EPS.

Conference Call Information

The Company will host a conference call and simultaneous webcast beginning at 9:00 am PT (12:00 pm ET) today to discuss its financial results for the 2025 fourth fiscal quarter and full fiscal year. To listen, please visit the Investor Relations section of the OSI Systems website at http://investors.osi-systems.com/index.cfm and follow the link that will be posted on the front page. A replay of the webcast will be available beginning shortly after the conclusion of the conference call for approximately three months thereafter. The replay can be accessed through the Company’s website at www.osi-systems.com.

About OSI Systems

OSI Systems designs and manufactures specialized electronic systems and components for critical applications. The Company operates through three key segments: Security, Optoelectronics and Manufacturing, and Healthcare. Its Security division delivers advanced inspection systems, turnkey screening solutions, and comprehensive support services to protect people and infrastructure. The Optoelectronics and Manufacturing segment serves as a trusted global supplier of high-performance optoelectronic solutions and precision manufacturing services for leading OEMs. The Healthcare segment focuses on patient monitoring, diagnostic cardiology, and related services to enhance clinical care and patient outcomes. Serving over 170 countries, OSI Systems strategically positions its sales, service, R&D, and manufacturing capabilities worldwide to provide fast and efficient delivery and support. For more information on OSI Systems or any of its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-E

Presentation of Non-GAAP Financial Measures

This earnings release includes a presentation of non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP operating income (loss) by segment and non-GAAP operating margin, all of which are non-GAAP financial measures. The presentation of these non-GAAP figures is provided to allow for the comparison of the underlying performance of the Company, excluding the impact of restructuring and other charges (including certain legal costs), amortization of intangible assets acquired through business acquisitions, and associated tax effects, and discrete income tax items. Although we exclude amortization of acquired intangible assets from our non-GAAP figures, revenue generated from such intangibles is included in determining non-GAAP financial performance of the Company. Management believes that the non-GAAP financial measures presented in this earnings release provide (i) enhanced insight into the ongoing operations of the Company, (ii) meaningful information regarding the Company’s financial results (excluding amounts management does not view as reflective of ongoing operating results) for purposes of planning, forecasting and assessing the performance of the Company’s businesses, (iii) a meaningful comparison of financial results of the current period against results of past periods and (iv) financial results that are generally more comparable to financial results of peer companies than are GAAP figures. Non-GAAP financial measures should not be assessed in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. Our non-GAAP measures may not be the same as measures used by other companies due to possible differences in methods and in the items or events for which adjustments are made.

Reconciliations of GAAP financial information to non-GAAP financial information are provided in the accompanying tables. The financial results calculated in accordance with GAAP and reconciliations from those financial results should be carefully evaluated.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to the Company's current expectations, beliefs, and projections concerning matters that are not historical facts. Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside the Company's control and which may cause actual results to differ materially from those described in or implied by any forward-looking statement. Forward-looking statements include, but are not limited to, information provided regarding expected revenues, earnings, growth, cash flow generation, and operational performance in fiscal 2026 and beyond. The Company could be exposed to a variety of negative consequences as a result of delays related to the award of domestic and international contracts; failure to secure the renewal of key customer contracts; delays in customer programs; delays in revenue recognition related to the timing of customer acceptance; the impact of potential information technology, cybersecurity or data security breaches; changes in domestic and foreign government spending and budgetary, procurement and trade policies adverse to the Company's businesses; the impact of the Russia-Ukraine conflict or conflicts in the Middle East, including the potential for broad economic disruption;global economic uncertainty, including the impact of tariffs; material delays and cancellations of orders or deliveries thereon, supply chain disruptions, plant closures, or other adverse impacts on the Company’s ability to execute business plans; unfavorable currency exchange rate fluctuations; unfavorable interest rate fluctuations; effect of changes in tax legislation; market acceptance of the Company's new and existing technologies, products, and services; the Company's ability to win new business and convert orders received to sales within the current fiscal year; contract and regulatory compliance matters, and actions which, if brought, could result in judgments, settlements, fines, injunctions, debarment, or penalties; and other risks and uncertainties, including, but not limited to, those detailed herein and from time to time in the Company's Securities and Exchange Commission filings, which could have a material and adverse impact on the Company's business, financial condition, and results of operations. For additional information on these and other factors that could cause the Company's future results to differ materially from those in any forward-looking statements, see the section titled "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K and other risks described therein and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, which are based on currently available information and speak only as of the date on which they are made. The Company assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent required to do so under federal securities laws.

OSI SYSTEMS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data) Three Months Ended

June 30, Fiscal Year Ended

June 30, 2024 2025 2024 2025 Revenues: Products $ 390,342 $ 392,633 $ 1,207,590 $ 1,323,291 Services 90,565 112,352 331,168 389,875 Total net revenues 480,907 504,985 1,538,758 1,713,166 Cost of goods sold: Products 274,408 277,821 822,346 908,997 Services 52,182 58,926 185,954 216,987 Total cost of goods sold 326,590 336,747 1,008,300 1,125,984 Gross profit 154,317 168,238 530,458 587,182 Operating expenses: Selling, general and administrative 71,745 74,685 269,731 290,879 Research and development 15,859 18,844 65,275 73,444 Restructuring and other charges, net 3,895 1,687 6,391 5,335 Total operating expenses 91,499 95,216 341,397 369,658 Income from operations 62,818 73,022 189,061 217,524 Interest and other expense, net (8,158 ) (7,224 ) (27,847 ) (31,430 ) Income before income taxes 54,660 65,798 161,214 186,094 Provision for income taxes (9,981 ) (13,050 ) (33,060 ) (36,457 ) Net income $ 44,679 $ 52,748 $ 128,154 $ 149,637 Diluted earnings per share $ 2.55 $ 3.03 $ 7.38 $ 8.71 Weighted average shares outstanding – diluted 17,504 17,412 17,354 17,178

OSI SYSTEMS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) June 30, 2024 June 30, 2025 Assets Cash and cash equivalents $ 95,353 $ 106,405 Accounts receivable, net 648,155 837,743 Inventories 397,939 407,174 Prepaid expenses and other current assets 74,077 71,539 Total current assets 1,215,524 1,422,861 Property and equipment, net 113,967 126,747 Goodwill 351,480 387,393 Intangible assets, net 139,529 183,290 Other non-current assets 115,508 120,966 Total Assets $ 1,936,008 $ 2,241,257 Liabilities and Stockholders' Equity Bank lines of credit $ 384,000 $ 178,000 Current portion of long-term debt 8,167 8,130 Accounts payable and accrued expenses 248,427 281,304 Other current liabilities 174,043 229,504 Total current liabilities 814,637 696,938 Long-term debt 129,383 463,504 Other long-term liabilities 128,505 129,731 Total liabilities 1,072,525 1,290,173 Total stockholders’ equity 863,483 951,084 Total Liabilities and Stockholders’ Equity $ 1,936,008 $ 2,241,257

SEGMENT INFORMATION AND NON-GAAP FINANCIAL MEASURES Three Months Ended June 30, 2024 2025 (In thousands, except per-share amounts) Operating % of Net Operating % of Net Revenues Income Revenues Income EPS Revenues Income Revenues Income EPS OSI Consolidated GAAP basis $ 480,907 $ 62,818 13.1 % $ 44,679 $ 2.55 $ 504,985 $ 73,022 14.5 % $ 52,748 $ 3.03 Restructuring and other charges, net 3,895 0.8 % 3,895 0.22 1,687 0.3 % 1,687 0.10 Amortization of acquired intangible assets 4,498 0.9 % 4,498 0.26 4,770 0.9 % 4,770 0.27 Tax benefit of non-GAAP adjustments (1,796 ) (0.10 ) (1,380 ) (0.08 ) Discrete tax benefit (1,596 ) (0.09 ) (1,373 ) (0.08 ) Non-GAAP basis $ 71,211 14.8 % $ 49,680 $ 2.84 $ 79,479 15.7 % $ 56,452 $ 3.24 Operating % of Operating % of Revenues Income Revenues Revenues Income Revenues Revenue and Operating Income by Segment Security GAAP basis $ 342,509 $ 60,678 17.7 % $ 366,971 $ 70,538 19.2 % Restructuring and other charges, net 54 0.0 % - 0.0 % Amortization of acquired intangible assets 2,801 0.8 % 4,174 1.2 % Non-GAAP basis 63,533 18.5 % 74,712 20.4 % Optoelectronics & Manufacturing GAAP basis 102,069 10,321 10.1 % 112,667 14,999 13.3 % Restructuring and other charges, net 2,468 2.4 % - 0.0 % Amortization of acquired intangible assets 1,396 1.4 % 327 0.3 % Non-GAAP basis 14,185 13.9 % 15,326 13.6 % Healthcare GAAP basis 50,305 3,856 7.7 % 42,684 (1,368 ) -3.2 % Restructuring and other charges, net 499 1.0 % 1,467 3.4 % Amortization of acquired intangible assets 301 0.6 % 269 0.7 % Non-GAAP basis 4,656 9.3 % 368 0.9 % Corporate/Elimination GAAP basis (13,976 ) (12,037 ) (17,337 ) (11,147 ) Restructuring and other charges, net 874 220 Non-GAAP basis (11,163 ) (10,927 ) OSI Consolidated GAAP basis $ 480,907 62,818 13.1 % $ 504,985 73,022 14.5 % Restructuring and other charges, net 3,895 0.8 % 1,687 0.3 % Amortization of acquired intangible assets 4,498 0.9 % 4,770 0.9 % Non-GAAP basis $ 71,211 14.8 % $ 79,479 15.7 %

SEGMENT INFORMATION AND NON-GAAP FINANCIAL MEASURES Years Ended June 30, 2024 2025 (In thousands, except per-share amounts) Operating % of Net Operating % of Net Revenues Income Revenues Income EPS Revenues Income Revenues Income EPS OSI Consolidated GAAP basis $ 1,538,758 $ 189,061 12.3 % $ 128,154 $ 7.38 $ 1,713,166 $ 217,524 12.7 % $ 149,637 $ 8.71 Restructuring and other charges, net 6,391 0.4 % 6,391 0.37 5,335 0.3 % 5,335 0.31 Amortization of acquired intangible assets 16,766 1.1 % 16,766 0.97 17,996 1.1 % 17,996 1.05 Tax benefit of non-GAAP adjustments (5,428 ) (0.32 ) (5,413 ) (0.32 ) Discrete tax benefit (4,729 ) (0.27 ) (6,717 ) (0.39 ) Non-GAAP basis $ 212,218 13.8 % $ 141,154 $ 8.13 $ 240,855 14.1 % $ 160,838 $ 9.36 Operating % of Operating % of Revenues Income Revenues Revenues Income Revenues Revenue and Operating Income by Segment Security GAAP basis $ 1,043,073 $ 183,270 17.5 % $ 1,196,180 $ 204,952 17.1 % Restructuring and other charges, net 675 0.1 % 1,882 0.2 % Amortization of acquired intangible assets 11,567 1.1 % 14,882 1.2 % Non-GAAP basis 195,512 18.7 % 221,716 18.5 % Optoelectronics & Manufacturing GAAP basis 384,268 42,814 11.2 % 412,065 51,540 12.5 % Restructuring and other charges, net 3,548 0.9 % 619 0.2 % Amortization of acquired intangible assets 3,994 1.0 % 1,862 0.4 % Non-GAAP basis 50,356 13.1 % 54,021 13.1 % Healthcare GAAP basis 171,435 6,013 3.5 % 168,362 2,462 1.5 % Restructuring and other charges, net 810 0.5 % 2,246 1.3 % Amortization of acquired intangible assets 1,205 0.7 % 1,252 0.7 % Non-GAAP basis 8,028 4.7 % 5,960 3.5 % Corporate/Elimination GAAP basis (60,018 ) (43,036 ) (63,441 ) (41,430 ) Restructuring and other charges, net 1,358 588 Non-GAAP basis (41,678 ) (40,842 ) OSI Consolidated GAAP basis $ 1,538,758 189,061 12.3 % $ 1,713,166 217,524 12.7 % Restructuring and other charges, net 6,391 0.4 % 5,335 0.3 % Amortization of acquired intangible assets 16,766 1.1 % 17,996 1.1 % Non-GAAP basis $ 212,218 13.8 % $ 240,855 14.1 %

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Contacts

For Additional Information, Contact:
OSI Systems, Inc.
Ajay Vashishat
Vice President
Telephone: (310) 349-2237
[email protected]

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