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5 Insightful Analyst Questions From Masimo’s Q2 Earnings Call

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Masimo’s second quarter saw a negative market reaction despite the company reporting revenue and non-GAAP profit above Wall Street’s expectations. Management attributed results to ongoing cost structure improvements and a realignment of the sales force to emphasize commercial execution. CEO Catherine Szyman described the margin expansion as a direct outcome of “effective cost structure actions taken last year,” coupled with strong consumables growth and operational discipline. While the company faced new tariff impacts and a cybersecurity incident, successful mitigation efforts and resilient service revenue supported the quarter’s performance.

Is now the time to buy MASI? Find out in our full research report (it’s free).

Masimo (MASI) Q2 CY2025 Highlights:

  • Revenue: $370.9 million vs analyst estimates of $368.7 million (7.9% year-on-year growth, 0.6% beat)
  • Adjusted EPS: $1.33 vs analyst estimates of $1.22 (9% beat)
  • Adjusted EBITDA: $114.7 million vs analyst estimates of $119.6 million (30.9% margin, 4% miss)
  • The company slightly lifted its revenue guidance for the full year to $1.52 billion at the midpoint from $1.52 billion
  • Management raised its full-year Adjusted EPS guidance to $5.33 at the midpoint, a 7% increase
  • Operating Margin: 17.4%, up from 12.2% in the same quarter last year
  • Constant Currency Revenue rose 7.4% year on year (10.1% in the same quarter last year)
  • Market Capitalization: $8.16 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Masimo’s Q2 Earnings Call

  • Marie Thibault (BTIG): Asked about inputs to the updated guidance and whether hospital census, capital equipment trends, or the recent cybersecurity event impacted the outlook. CFO Micah Young said assumptions for consumables and capital sales were unchanged, and the cybersecurity incident had no material long-term effect.
  • Jason Bednar (Piper Sandler): Pressed on the status of the Philips partnership after a competitor announced a new deal with Philips. CEO Catherine Szyman emphasized the relationship remains strong and ongoing discussions aim to sustain revenue growth with Philips.
  • Michael Polark (Wolfe Research): Queried the sharp decline in the company’s incremental contract metric and whether sales force changes were a factor. Young clarified that deal timing, not sales force structure, explained the sequential variation, and the pipeline remains solid.
  • Frederick Wise (Stifel): Sought clarification on expectations for board shipments and the timeline for seeing benefits from commercial and product initiatives. Young and Szyman indicated normal seasonality for shipments and said more detailed product timing would be discussed at the investor conference later this year.
  • Vik Chopra (Wells Fargo): Requested an update on hemodynamic monitoring product launches and competitive positioning. Szyman confirmed pilots are underway with a full launch expected in the back half of next year, leveraging both technology improvements and dedicated teams.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be monitoring (1) the pace of adoption for new intelligent monitoring and wearable technologies, (2) the effectiveness of ongoing tariff mitigation efforts and their impact on margins, and (3) execution of the expanded commercial strategy, especially in underpenetrated markets like Asia Pacific. Progress on the Philips partnership and rollout of next-generation hemodynamic monitors will also be key indicators of strategic progress.

Masimo currently trades at $149.01, down from $164.32 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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