SEC Form 10-Q filed by Haemonetics Corporation

11/6/25 6:03:25 AM ET

$HAE

Medical/Dental Instruments

Health Care

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hae-20250927

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 27, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-14041

HAEMONETICS CORPORATION

(Exact name of registrant as specified in its charter)


Massachusetts		04-2882273
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

125 Summer Street
Boston,	Massachusetts	02110
(Address of principal executive offices)		(Zip Code)

(781) 848-7100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common stock, $.01 par value per share

HAE

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes ☐No x

The number of shares of $0.01 par value common stock outstanding as of October 31, 2025: 46,809,672.

HAEMONETICS CORPORATION

INDEX



			PAGE
PART I. FINANCIAL INFORMATION			3

ITEM 1. Financial Statements			3

Unaudited Condensed Consolidated Statements of Income - Three and Six Months Ended September 27, 2025 and September 28, 2024			3
Unaudited Condensed Consolidated Statements of Comprehensive Income - Three and Six Months Ended September 27, 2025 and September 28, 2024			4
Unaudited Condensed Consolidated Balance Sheet - September 27, 2025 and Consolidated Balance Sheet - March 29, 2025			5
Unaudited Condensed Consolidated Statements of Stockholders’ Equity - Three and Six Months Ended September 27, 2025 and September 28, 2024			6
Unaudited Condensed Consolidated Statements of Cash Flows - Six Months Ended September 27, 2025 and September 28, 2024			8
Notes to Unaudited Condensed Consolidated Financial Statements			9

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			35

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk			46

ITEM 4. Controls and Procedures			47

PART II. OTHER INFORMATION			48

ITEM 1. Legal Proceedings			48

ITEM 1A. Risk Factors			48

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			48

ITEM 3. Defaults upon Senior Securities			48

ITEM 4. Mine Safety Disclosures			48

ITEM 5. Other Information			48

ITEM 6. Exhibits			49

SIGNATURES			50


	Three Months Ended				Six Months Ended
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024

	(Dollars and Shares in Thousands, Except Per Share Data)
Net revenues	$	327,315	$	345,511	$	648,709	$	681,683
Cost of goods sold	132,571		158,074		261,721		319,322
Gross profit	194,744		187,437		386,988		362,361
Operating expenses:
Research and development	14,872		14,139		31,133		28,588
Selling, general and administrative	101,615		106,946		212,334		215,194
Amortization of acquired intangible assets	11,182		12,264		22,574		24,735
Impairment of intangible assets	8,584		2,391		8,584		2,391



Total operating expenses	136,253		135,740		274,625		270,908
Operating income	58,491		51,697		112,363		91,453
Interest and other expense, net	(7,206)		(6,993)		(15,909)		(36)
Income before provision for income taxes	51,285		44,704		96,454		91,417
Provision for income taxes	12,601		10,873		23,739		19,213
Net income	$	38,684	$	33,831	$	72,715	$	72,204

Net income per common share:
Basic	$	0.81	$	0.66	$	1.52	$	1.42
Diluted	$	0.81	$	0.66	$	1.51	$	1.40

Weighted average shares outstanding
Basic	47,590		50,898		47,850		50,920
Diluted	47,664		51,240		48,009		51,402


	September 27, 2025		March 29, 2025

	(Dollars in Thousands, Except Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	296,426	$	306,763
Accounts receivable, less allowance for credit losses of $6,247 as of September 27, 2025 and $6,300 as of March 29, 2025	207,066		202,657
Inventories, net	336,206		365,141
Prepaid expenses and other current assets	59,984		60,414
Total current assets	899,682		934,975
Property, plant and equipment, net	292,476		284,052
Intangible assets, less accumulated amortization of $339,593 as of September 27, 2025 and $316,313 as of March 29, 2025	428,357		455,743
Goodwill	606,101		604,269
Deferred tax asset	7,571		7,803
Other long-term assets	207,969		164,106
Total assets	$	2,442,156	$	2,450,948
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable and current maturities of long-term debt	$	304,335	$	303,558
Accounts payable	61,691		66,999
Accrued payroll and related costs	48,269		59,423
Other current liabilities	134,023		148,133
Total current liabilities	548,318		578,113
Long-term debt	920,393		921,230
Deferred tax liability	58,201		62,575
Other long-term liabilities	66,071		68,194
Stockholders’ equity:
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 46,747,381 shares as of September 27, 2025 and 48,215,899 shares as of March 29, 2025	467		482
Additional paid-in capital	552,914		523,264
Retained earnings	336,323		352,174
Accumulated other comprehensive loss	(40,531)		(55,084)
Total stockholders’ equity	849,173		820,836
Total liabilities and stockholders’ equity	$	2,442,156	$	2,450,948


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Par Value

	(Dollars in Thousands, Except Share Data)
Balance, March 29, 2025	48,215,899	$	482	$	523,264	$	352,174	$	(55,084)	$	820,836
Employee stock purchase plan	64,884	1		3,475		—		—		3,476
Exercise of stock options	9,141	—		698		(236)		—		462
Shares repurchased	(363,886)	(4)		26,051		(26,047)		—		—
Issuance of restricted stock, net of cancellations	250,532	3		(3)		—		—		—

Tax withholding on employee equity awards	(17,847)	—		(783)		(3,876)		—		(4,659)

Share-based compensation expense	—	—		9,312		—		—		9,312
Net income	—	—		—		34,031		—		34,031
Other comprehensive income	—	—		—		—		18,842		18,842
Balance, June 28, 2025	48,158,723	$	482	$	562,014	$	356,046	$	(36,242)	$	882,300
Employee stock purchase plan	—	—		—		—		—		—
Exercise of stock options	857	—		74		(11)		—		63
Shares repurchased, including excise tax	(1,430,579)	(14)		(16,759)		(58,387)		—		(75,160)
Issuance of restricted stock, net of cancellations	18,626	(1)		—		—		—		(1)
Tax withholding on employee equity awards	(246)	—		(4)		(9)		—		(13)

Share-based compensation expense	—	—		7,589		—		—		7,589
Net income	—	—		—		38,684		—		38,684
Other comprehensive loss	—	—		—		—		(4,289)		(4,289)
Balance, September 27, 2025	46,747,381	$	467	$	552,914	$	336,323	$	(40,531)	$	849,173


	April 1, 2024
	(Dollars in Thousands)
Accounts receivable	$	3,784
Inventories	26,300
Prepaid expenses and other current assets	906
Property, plant and equipment	200
Intangible assets	105,800
Goodwill	70,256

Total assets acquired	207,246
Accounts payable	2,260
Accrued payroll and related costs	2,129
Other liabilities	496
Deferred tax liability	26,155

Total liabilities assumed	31,040
Net assets acquired	$	176,206


	Amount		Weighted-Average Amortization Period	Risk-Adjusted Discount Rates used in Purchase Price Allocation

	(Dollars in Thousands)
Developed technology	$	96,100	10 years	22.0	%
Customer contracts and related relationships	7,800		10 years	21.5	%
Trade names	1,900		10 years	21.5	%
Total	$	105,800


	December 12, 2023
	(Dollars in Thousands)
Accounts receivable	$	5,960
Inventories	12,075
Prepaid expenses and other current assets	2,062
Property, plant and equipment	3,028
Intangible assets	172,000
Goodwill	79,400
Other long-term assets	4,705
Total assets acquired	279,230
Accounts payable	3,251
Accrued payroll and related costs	1,723
Other liabilities	9,746
Deferred tax liability	14,805
Other long-term liabilities	5,853
Total liabilities assumed	35,378
Net assets acquired	$	243,852


	2020 Program		Portfolio Rationalization		Market and Regional Alignment		Total

	(Dollars in Thousands)
Balance as of March 29, 2025	$	290	$	2,735	$	—	$	3,025
Costs incurred, net of reversals	(67)		(1,908)		3,445		1,470
Payments	(182)		(123)		(2,010)		(2,315)

Balance as of September 27, 2025	$	41	$	704	$	1,435	$	2,180


	Plasma		Blood Center		Hospital		Total

	(Dollars in Thousands)
Carrying amount as of March 29, 2025	$	29,043	$	26,967	$	548,259	$	604,269



Currency translation	—		123		1,709		1,832
Carrying amount as of September 27, 2025	$	29,043	$	27,090	$	549,968	$	606,101


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Life (Years)


September 27, 2025	(Dollars in Thousands)
Amortizable:
Developed technology	$	509,111	$	174,864	$	334,247	12.1
Customer contracts and related relationships	137,366		74,105		63,261		12.6
Capitalized software	94,135		79,435		14,700		6.7
Patents and other	7,468		4,348		3,120		10.0
Trade names	16,082		6,841		9,241		12.3
Total	$	764,162	$	339,593	$	424,569

Non-amortizable:
In-process software development	$	3,788


Total	$	3,788


	Amortization Expense
	(Dollars in Thousands)
Remainder of Fiscal 2026	$	24,914
Fiscal 2027	$	48,158
Fiscal 2028	$	46,382
Fiscal 2029	$	45,135
Fiscal 2030	$	43,873


	Six Months Ended
	September 27, 2025		September 28, 2024

	(Dollars in Thousands)
Cash Flows from Operating Activities:
Net income	$	72,715	$	72,204
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	57,013		58,353
Amortization of fair value inventory step-up	4,491		8,978
Share-based compensation expense	16,901		14,485
Impairment of intangible assets	8,584		2,391


Gain on repurchase of convertible senior notes, net	—		(12,600)

Gains on sales of property, plant and equipment	(318)		(14,412)
Deferred income taxes	(3,956)		(6,176)

Other non-cash operating activities	2,679		4,523
Change in operating assets and liabilities:
Change in accounts receivable	(3,702)		(1,608)
Change in inventories	25,058		(47,008)
Change in prepaid income taxes	3,136		(3,713)
Change in other assets and other liabilities	(23,688)		(13,890)
Change in accounts payable and accrued expenses	(30,197)		(40,125)
Net cash provided by operating activities	128,716		21,402
Cash Flows from Investing Activities:
Capital expenditures	(8,770)		(15,089)
Non-cash transfers from inventory to property, plant and equipment for Haemonetics equipment	(29,149)		(6,754)
Acquisitions	—		(150,906)

Proceeds from sale of property, plant and equipment	417		20,551
Other investments	(25,966)		(10,366)
Net cash used in investing activities	(63,468)		(162,564)
Cash Flows from Financing Activities:

Proceeds from issuance of convertible notes	—		700,000
Repurchase of convertible senior notes	—		(185,500)
Purchase of capped call related to convertible notes	—		(88,200)


	September 27, 2025		March 29, 2025

	(Dollars in Thousands)
Land	$	2,199	$	1,985
Building and building improvements	109,584		105,079
Plant equipment and machinery	186,970		181,825
Office equipment and information technology	132,105		130,924
Haemonetics equipment	362,521		395,152
Construction in progress	21,930		22,229
Property, plant and equipment, at cost	815,309		837,194
Less: accumulated depreciation	(522,833)		(553,142)
Property, plant and equipment, net	$	292,476	$	284,052


	September 27, 2025		March 29, 2025

	(Dollars in Thousands)
Convertible notes, net of financing fees	$	986,420	$	983,951
Term loan, net of financing fees	237,550		240,028
Other borrowings	758		809
Total debt	1,224,728		1,224,788
Less: current portion	(304,335)		(303,558)
Long-term debt	$	920,393	$	921,230


Hedged Item	Original Notional Amount		Notional Amount as of September 27, 2025		Designation Date	Effective Date	Termination Date	Fixed Interest Rate	Estimated Asset Fair Value

	(Dollars in Thousands)




1-month USD Term SOFR	$	109,900	$	101,633	9/27/2024	9/30/2024	4/30/2029	3.3%	$	59
1-month USD Term SOFR	109,900		100,259		9/27/2024	9/30/2024	4/30/2029	3.3%	156
Total	$	219,800	$	201,892					$	215


	Debt Maturities
	(Dollars in Thousands)
Remainder of Fiscal 2026	$	303,153
Fiscal 2027	$	7,873
Fiscal 2028	$	12,563
Fiscal 2029	$	18,817
Fiscal 2030	$	900,072
Thereafter	$	469


	Allowance for Credit Losses (Recoveries)
	(Dollars in Thousands)
Balance as of March 29, 2025	$	6,300
Credit loss	760
Recoveries	(813)
Balance as of September 27, 2025	$	6,247


Derivative Instruments	Amount of Gain (Loss) Recognized in AOCL		Amount of (Loss) Gain Reclassified from AOCL into Earnings		Classification in Earnings	Amount of Gain (Loss) Excluded from Effectiveness Testing		Classification in Earnings

	(Dollars in Thousands)
Designated foreign currency hedge contracts, net of tax	$	1,485	$	(153)	Net revenues, cost of goods sold and SG&A	$	1,246	Interest and other expense, net
Non-designated foreign currency hedge contracts	$	—	$	—		$	(5,872)	Interest and other expense, net
Designated interest rate swaps, net of tax	$	(1,670)	$	2	Interest and other expense, net	$	—


	Classification	September 27, 2025		March 29, 2025

		(Dollars in Thousands)
Derivative Assets:
Designated foreign currency hedge contracts	Prepaid expenses and other current assets	$	1,025	$	193
Non-designated foreign currency hedge contracts	Prepaid expenses and other current assets	447		85
Designated interest rate swaps	Prepaid expenses and other current assets	637		1,305
Designated interest rate swaps	Other long-term assets	—		1,020
Total		$	2,109	$	2,603

Derivative Liabilities:
Designated foreign currency hedge contracts	Other current liabilities	$	(5,454)	$	471
Non-designated foreign currency hedge contracts	Other current liabilities	(28)		25

Designated interest rate swaps	Other long-term liabilities	422		—
Total		$	(5,060)	$	496


	September 27, 2025
	Level 1		Level 2		Level 3		Total

	(Dollars in Thousands)
Assets
Money market funds	$	138,619	$	—	$	—	$	138,619
Designated foreign currency hedge contracts	—		1,025		—		1,025
Non-designated foreign currency hedge contracts	—		447		—		447
Designated interest rate swaps	—		637		—		637
Total	$	138,619	$	2,109	$	—	$	140,728

Liabilities
Designated foreign currency hedge contracts	$	—	$	(5,454)	$	—	$	(5,454)
Non-designated foreign currency hedge contracts	—		(28)		—		(28)
Designated interest rate swaps	—		422		—		422
Contingent consideration	—		—		2,089		2,089
Total	$	—	$	(5,060)	$	2,089	$	(2,971)


	Options Outstanding	Weighted Average Exercise Price per Share		Weighted Average Remaining Life (years)	Aggregate Intrinsic Value

	(Dollars in Thousands, Except Share and Per Share Data)
Outstanding as of March 29, 2025	993,587	$	81.75	3.5	$	2,249
Granted	224,048	$	70.14
Exercised	(14,319)	$	57.11
Forfeited/Canceled	(125,582)	$	90.45
Outstanding as of September 27, 2025	1,077,734	$	78.66	3.9	$	—
Exercisable as of September 27, 2025	643,092	$	79.34	2.6	$	—
Vested or expected to vest as of September 27, 2025	974,285	$	78.80	4.2	$	—


	Shares	Weighted Average Grant Date Fair Value
Unvested as of March 29, 2025	303,003	$	81.27
Granted	218,066	$	70.70
Vested	(152,899)	$	78.25
Forfeited	(13,751)	$	80.99
Unvested as of September 27, 2025	354,419	$	76.08


	Foreign Currency		Defined Benefit Plans		Net Unrealized Gain (Loss) on Derivatives		Total

	(Dollars in Thousands)
Balance as of March 29, 2025	$	(56,248)	$	1,149	$	15	$	(55,084)
Other comprehensive income (loss) before reclassifications(1)	14,888		—		(184)		14,704
Amounts reclassified from AOCL(1)	—		—		(151)		(151)
Balance as of September 27, 2025	$	(41,360)	$	1,149	$	(320)	$	(40,531)


	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(1)(2)

	(Dollars in Thousands, Except Per Share Data)
June 29, 2025 – July 26, 2025	—	—		—	$	500,000
July 27, 2025 – August 23, 2025	1,113,586	$	53.88	1,113,586	$	425,000
August 24, 2025 – September 27, 2025	316,993	$	47.32	316,993	$	425,000
Total	1,430,579			1,430,579


Exhibit Number						Description


3.1						Restated Articles of Organization of the Company, reflecting Articles of Amendment dated August 23, 1993, August 21, 2006, July 26, 2018 and July 25, 2019 (filed as Exhibit 3.1 to the Company’s Form 8-K dated July 29, 2019 and incorporated herein by reference).

3.2						By-Laws of the Company, as amended through June 29, 2020 (filed as Exhibit 3.1 to the Company’s Form 8-K dated June 30, 2020 and incorporated herein by reference).

31.1*						Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002, of Christopher A. Simon, President and Chief Executive Officer of the Company.

31.2*						Certification pursuant to Section 302 of Sarbanes-Oxley of 2002, of James C. D'Arecca, Executive Vice President, Chief Financial Officer of the Company.

32.1**						Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Christopher A. Simon, President and Chief Executive Officer of the Company.

32.2**						Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of James C. D'Arecca, Executive Vice President, Chief Financial Officer of the Company.

101*						The following materials from Haemonetics Corporation on Form 10-Q for the quarter ended September 27, 2025 formatted in inline Extensible Business Reporting Language (XBRL) includes: (i) Condensed Consolidated Statements of Income, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statement of Stockholders' Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements.

104*						Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101).

SEC Form 10-Q filed by Haemonetics Corporation

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