Diagnostics revenue grew 3% year-over-year to $19.2 million, while Sample Management Solutions revenue declined 22% due to a large consumer genetics customer.
Ended Q2 with zero debt and $235 million in cash and equivalents.
Excluding the consumer genetics customer, Sample Management revenue grew year-over-year, resulting in an overall 5% core revenue growth.
GAAP gross margin was 42.1% and non-GAAP gross margin was 43.2%, both better than expectations.
GAAP operating loss was $18 million and non-GAAP operating loss was $13.2 million.
Operating cash flow was negative $10 million, consistent with investments in innovation and clinical trials.
Total revenue for Q2 2025 was $31.2 million, with core revenue at $30.8 million, above the midpoint of guidance.
Cash balance ended at $225 million with net debt just over $380 million, resulting in net leverage of just above 1.5x based on midpoint adjusted EBITDA guidance.
Consolidated revenue decreased by just over 7% due to portfolio restructuring, offset by strong same-unit growth of over 6%.
D&A expense declined to $5.3 million from $8.8 million prior year, reflecting practice dispositions.
G&A expenses decreased slightly year-over-year due to staffing reductions and lower professional services and legal fees, partially offset by increased incentive compensation.
Operating cash flow was $138 million, up from $109 million prior year, driven by higher earnings and improved working capital.
Other nonoperating expenses decreased to $4.9 million from $10 million, reflecting higher interest income and lower interest expense.
Pediatrix Medical Group reported adjusted EBITDA of just over $73 million for Q2 2025, exceeding expectations.
Practice-level SW&B expenses declined year-over-year due to portfolio restructuring, but same-unit expenses increased due to higher incentive compensation and salary increases averaging 3% to 3.5%.
Same-unit pricing increased 3.5%, driven by patient acuity, RCM cash collections, and contract administrative fees.
Same unit revenue growth was over 6%, driven by strong hospital-based volume with NICU days up 6%, higher acuity levels, strong RCM collections, and increased hospital administrative fees.
Adjusted operating profit increased 9% to $1.4 billion, with three of four segments delivering double-digit growth in adjusted operating profit.
Corporate expenses decreased 4% excluding McKesson Ventures gains, driven by lower opioid-related expenses and technology costs.
First quarter earnings per diluted share increased 5% to $8.26, or 14% excluding gains from McKesson Ventures equity investments.
Free cash flow was negative $1.1 billion, impacted by $3.4 billion cash used for acquisitions and $189 million in capital expenditures.
International segment revenues increased 1% to $3.7 billion, with operating profit down 3% due to divestitures; excluding divested businesses, revenues grew 5% and operating profit was flat.
McKesson reported record consolidated revenues of $97.8 billion for Q1 fiscal 2026, a 23% increase year-over-year.
Medical-Surgical Solutions segment revenues increased 2% to $2.7 billion, with operating profit up 22% due to operational efficiencies and cost optimization.
Prescription Technology Solutions segment revenues increased 16% to $1.4 billion, with operating profit up 21%, driven by higher demand for access solutions including prior authorization services for GLP-1 medications.
U.S. Pharmaceutical segment revenues rose 25% to $90 billion, driven by increased prescription volumes, growth in oncology and specialty products, and new strategic customer onboarding.
Dafinchi