AI Takeaway
CRL (Charles River Laboratories) reported a sharp deterioration in profitability in FY2025, with operating income collapsing 88.9% to $25.2M and a net loss of $144.3M, even as revenue declined only modestly by 0.9% to $4.0B, while operating cash flow remained resilient at $737.6M.
Revenue
$4.02B
-0.85% YoY
EPS (Basic)
$-2.91
-1555.00% YoY
Operating Income
$25.16M
-88.93% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 0.9% year-over-year to $4.02B in FY2025 from $4.05B in the prior year, suggesting continued headwinds in the contract research and preclinical services market, likely driven by reduced biotech/pharma client spending and project deferrals.
Source: Source: 10-K Income Statement
Operating income plummeted 88.9% to just $25.2M from $227.3M in the prior year, implying significant non-recurring charges, restructuring costs, or impairments that weighed heavily on the P&L beyond the modest revenue decline.
Source: Source: 10-K Income Statement
The company swung to a net loss of $144.3M (EPS: -$2.91) from net income of $22.2M ($0.20 EPS) in FY2024, a 750% deterioration, indicating substantial interest expense, impairment charges, or other non-operating losses compounding the operating weakness.
Source: Source: 10-K Income Statement & Balance Sheet
2 more insights available
Upgrade to unlockOperating margin collapsed from 5.6% to just 0.6% in FY2025, and the company posted a net loss of $144.3M. If revenue headwinds persist or additional charges materialize, the company could face sustained unprofitability, pressuring its financial flexibility.
Source: Source: 10-K Income Statement, Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.39 versus the $2.37 analyst consensus — a +1.0% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.02B | $4.05B | -0.85% |
Operating Income | $25.16M | $227.35M | -88.93% |
Net Income | $-144.34M | $22.2M | -750.08% |
EPS (Basic) | $-2.91 | $0.20 | -1555.00% |
EPS (Diluted) | $-2.91 | $0.20 | -1555.00% |
SG&A Expense | $743.07M | $751M | -1.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $7.14B | $7.53B | -5.22% |
Current Assets | $1.45B | $1.4B | +3.13% |
Total Liabilities | $3.92B | $4.02B | -2.39% |
Current Liabilities | $1.12B | $994.1M | +12.70% |
Stockholders' Equity | $3.16B | $3.46B | -8.58% |
Cash & Equivalents | $213.77M | $194.61M | +9.85% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $737.65M | $734.58M | +0.42% |
Investing Cash Flow | $-209.32M | $-245.09M | +14.59% |
Financing Cash Flow | $-536.73M | $-550.93M | +2.58% |
Share Buybacks | $360.67M | $119.17M | +202.64% |
D&A | $403.31M | $361.74M | +11.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 0.6% | 5.6% | -4.99% |
Net Margin | -3.6% | — | — |
ROE | -4.6% | — | — |
ROA | -2.0% | — | — |
Current Ratio | $1.292 | — | — |
Debt to Equity | $1.24 | — | — |
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CRL reported a net loss of $144.3M in FY2025, compared to net income of $22.2M in the prior year, a deterioration of over 750%. EPS fell to -$2.91 from $0.20, driven by an 88.9% collapse in operating income to just $25.2M despite only a 0.9% revenue decline.
Operating income dropped from $227.3M to $25.2M in FY2025, an 88.9% decline, even though revenue only fell 0.9% to $4.02B. This suggests significant non-recurring charges, restructuring costs, or asset impairments were recorded during the year, which are not fully detailed without the filing text.
Yes — CRL generated $737.6M in operating cash flow in FY2025, essentially flat with the prior year's $734.6M, because the net loss was largely offset by $403.3M in non-cash depreciation and amortization. Free cash flow was approximately $528M after investing activities.
CRL's financial health shows mixed signals: liquidity is adequate with a current ratio of 1.29x and $213.8M in cash, but leverage is elevated at a debt-to-equity ratio of 1.24x, and stockholders' equity declined 8.6% to $3.16B due to the net loss. The $360.7M in share buybacks also reduced the cash buffer significantly.
Yes, CRL repurchased $360.7M in shares in FY2025, more than triple the $119.2M spent in FY2024, representing a 202.6% increase. This aggressive buyback program occurred despite the company reporting a net loss of $144.3M, raising questions about capital allocation priorities.