OraSure Technologies, Inc. (OSUR) | Investment Case

1. Company Snapshot

1.a. Company Description

OraSure Technologies, Inc., together with its subsidiaries, develops, manufactures, markets, and sells oral fluid diagnostic products and specimen collection devices in the United States, Europe, and internationally.It operates in two segments, Diagnostics and Molecular Solutions.The company's principal products include InteliSwab COVID-19 rapid test, InteliSwab COVID-19 rapid test pro, InteliSwab COVID-19 rapid test rx, OraQuick Rapid HIV test, OraQuick In-Home HIV test, OraQuick HIV self-test, OraQuick HCV rapid antibody test, OraQuick Ebola rapid antigen test, OraSure oral fluid collection device used in conjunction with screening and confirmatory tests for HIV-1 antibodies; Intercept drug testing systems; immunoassay tests and reagents; and Q.E.D. saliva alcohol test.

It also offers genomic products under the Oragene and ORAcollect brands; microbiome collection products; and GenoFIND genomics laboratory services.In addition, the company provides ORAcollect, RNA and OMNIgene, and RAL collection devices for use in connection with COVID-19 molecular testing; offers Colli-Pee collection device for the volumetric collection of first void urine; and manufactures and sells kits that are used to collect, stabilize, transport, and store samples of genetic material for molecular testing in the academic research and commercial applications, including ancestry, disease risk management, lifestyle, and animal testing.Further, it provides other diagnostic products, such as immunoassays and other in vitro diagnostic tests.

The company markets its products to clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians' offices, and commercial and industrial entities.OraSure Technologies, Inc.was incorporated in 2000 and is headquartered in Bethlehem, Pennsylvania.

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1.b. Last Insights on OSUR

OraSure Technologies' recent performance was negatively impacted by a Q4 loss of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.02. This earnings miss, despite topping revenue estimates, suggests a decline in profitability. The company's recent upgrade to a Zacks Rank #1 (Strong Buy) on January 27, 2025, seems to have been short-lived, as the latest earnings release failed to meet expectations. Additionally, the absence of any significant new product announcements or acquisitions in the recent quarter may have contributed to the disappointing results.

1.c. Company Highlights

Last Price	2.49
Change Percentage	-3.11%
Open	2.59
Previous Close	2.57
Market Cap ( Millions)	185
Volume	495203
Year High	4.22
Year Low	2.08
M A 50	2.72
M A 200	3.0

FCF Yield	6.57%
Dividend Yield	0.00%
ROE	-12.66%
Debt / Equity	3.71%
Net Debt / EBIDTA	-30.34%
Price To Book	0.49
Price Earnings Ratio	-3.64
Price To FCF	15.22
Price To sales	4.78
EV / EBITDA	-4.34

2. OraSure Technologies' Q3 Earnings: A Closer Look

OraSure Technologies reported total revenue of $27.1 million in Q3, with core revenue of $27.0 million, comprising Diagnostics revenue of $14.5 million and Sample Management revenue of $10.3 million. The company's GAAP gross margin stood at 43.5%, while non-GAAP gross margin was 44.2%. OraSure Technologies ended Q3 with an EPS loss of $0.13, beating estimates of a loss of $0.16. The company's cash and cash equivalents stood at $216 million, and it deployed $5 million to repurchase approximately 1.5 million shares of its common stock.

Publication Date: Nov -23

                                    📋 Highlights
                                    Q3 Revenue Breakdown::
                                                Total revenue $27.1M, with Diagnostics ($14.5M) and Sample Management ($10.3M) as key segments.
International Diagnostics Decline::
                                                Full-year 2025 revenue expected to drop 20% to low-to-mid $30M compared to 2024.
Acquisition of BioMedomics::
                                                $4M upfront deal to add Sickle SCAN test, projected as cash flow breakeven with strong ROI potential.
Q4 Guidance::
                                                Revenue forecast $25–28M; gross margin expected to decline due to higher international revenue mix.
Cash Position & Share Repurchases::
                                                Ended Q3 with $216M cash, repurchased 1.5M shares for $5M, maintaining breakeven core operations.

                                

Business Outlook and Guidance

The company expects its International Diagnostics business to generate revenue in the low to mid-$30 million range for the full year 2025, representing a decline of approximately 20% compared to 2024. The U.S. Diagnostics business is expected to generate revenue in the low to mid-$30 million range, representing a low single-digit percentage decline compared to 2024. For Q4, OraSure Technologies expects revenue to be between $25 million and $28 million, with margins expected to be lower than Q3 due to a mix change, with more international revenue expected.

Strategic Acquisition and Innovation

OraSure Technologies has signed a definitive agreement to acquire BioMedomics for $4 million upfront and potential contingent consideration, expanding its Diagnostic portfolio with Sickle SCAN, a rapid point-of-need test for sickle cell disease. As the company stated, "Our core business is essentially breakeven, and we focus our spending on innovation." The acquisition is expected to be cash flow breakeven with a path to a very attractive ROI. The company continues to invest in automation, operational efficiencies, and innovation, including its Sherlock CT/NG clinical trial submission.

Valuation and Growth Prospects

With a P/S Ratio of 4.36 and an expected revenue growth rate of 3.7% next year, OraSure Technologies' valuation appears reasonable. The company's Free Cash Flow Yield stands at 7.21%, indicating a potentially attractive return for investors. However, the ROE of -12.66% and a Net Debt / EBITDA ratio of -0.3 suggest that the company's profitability and debt management remain areas of concern.

3. NewsRoom

OraSure Technologies, Inc. (OSUR) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

OraSure Technologies (OSUR) Reports Q3 Loss, Lags Revenue Estimates

Nov -06

Source: zacks.com

OraSure to Announce Third Quarter 2025 Financial Results and Host Earnings Call on November 5th

Oct -29

Source: globenewswire.com

OraSure Technologies Appoints Steven K. Boyd to its Board of Directors

Oct -28

Source: globenewswire.com

Exclusive: Altai Capital lays groundwork for board fight at OraSure Technologies, sources say

Sep -09

Source: reuters.com

Exclusive: Healthcare entrepreneur's letter threatens 'adversarial path' after OraSure Tech rebuffs bid

Aug -25

Source: reuters.com

OraSure (OSUR) Q2 Revenue Falls 43%

Aug -06

Source: fool.com

OraSure Technologies, Inc. (OSUR) Q2 2025 Earnings Call Transcript

Aug -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.77%)

6. Segments

COVID-19

Expected Growth: 10.98%

OraSure Technologies, Inc.'s 10.98% growth is driven by increased demand for COVID-19 testing solutions, government contracts, and emergency use authorizations. The company's molecular diagnostic tests and oral fluid collection devices have become essential tools in the fight against the pandemic, leading to significant revenue growth.

Human Immunodeficiency Virus

Expected Growth: 10.43%

OraSure Technologies, Inc.'s 10.43% growth in Human Immunodeficiency Virus (HIV) segment is driven by increasing adoption of rapid point-of-care diagnostic tests, rising HIV awareness and testing rates, and growing demand for self-testing solutions. Additionally, expansion into new markets, strategic partnerships, and innovative product developments contribute to the segment's growth.

Molecular Sample Management Solutions

Expected Growth: 10.55%

OraSure Technologies' Molecular Sample Management Solutions growth is driven by increasing demand for COVID-19 testing, adoption of molecular diagnostics in healthcare, and growing need for efficient sample management in research and clinical trials. Additionally, the company's innovative products and strategic partnerships contribute to its 10.55% growth.

Hepatitis C Virus

Expected Growth: 9.95%

OraSure Technologies' Hepatitis C Virus segment growth of 9.95% is driven by increasing adoption of its point-of-care diagnostic tests, expanding global reach, and rising awareness about Hepatitis C screening. Additionally, growing demand for non-invasive testing and increasing government initiatives for disease prevention and control contribute to the segment's growth.

Risk Assessment Testing

Expected Growth: 10.38%

OraSure Technologies' 10.38% growth in Risk Assessment Testing is driven by increasing demand for rapid diagnostic tests, expansion into new markets, and strategic partnerships. The company's innovative products, such as the InteliSwab COVID-19 rapid test, have gained traction amidst the pandemic. Additionally, growing awareness of infectious diseases and government initiatives to enhance public health infrastructure have contributed to the segment's growth.

Molecular Services

Expected Growth: 9.95%

OraSure Technologies' Molecular Services segment growth is driven by increasing demand for COVID-19 testing, expansion into new markets, and strategic partnerships. The company's molecular diagnostic products, such as the Omnisample saliva collection device, have seen significant adoption. Additionally, the company's investments in digital health and telehealth platforms have enhanced its offerings, contributing to the 9.95% growth.

Non-product and Services

Expected Growth: 10.43%

OraSure Technologies' Non-product and Services segment growth of 10.43% is driven by increasing demand for molecular diagnostic testing, expansion of COVID-19 testing, and growing government and institutional contracts. Additionally, strategic partnerships and collaborations have contributed to the segment's growth, as well as investments in digital health and telehealth platforms.

Other Product and Services

Expected Growth: 9.98%

OraSure Technologies' Other Product and Services segment growth of 9.98% is driven by increasing demand for molecular diagnostic products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on developing innovative products, such as its oral fluid collection devices, has contributed to the segment's growth.

7. Detailed Products

Oral Fluid Collection Devices

Devices used to collect and stabilize oral fluid samples for diagnostic testing

Rapid Point-of-Care Tests

Rapid diagnostic tests that provide quick results for various diseases and conditions

Molecular Diagnostic Tests

Tests that use molecular biology techniques to detect and quantify specific genetic material

Microbial Detection Tests

Tests that detect and identify microorganisms such as bacteria, viruses, and fungi

IntelliSwab

A rapid, oral fluid-based HIV test that provides results in 20 minutes

OraQuick

A rapid, oral fluid-based HIV test that provides results in 20 minutes

Drugs of Abuse Tests

Tests that detect the presence of drugs and their metabolites in oral fluid, urine, or blood

8. OraSure Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for OraSure Technologies, Inc. is medium due to the presence of alternative diagnostic tests and products in the market.

Bargaining Power Of Customers

The bargaining power of customers for OraSure Technologies, Inc. is low due to the company's strong brand reputation and limited switching costs.

Bargaining Power Of Suppliers

The bargaining power of suppliers for OraSure Technologies, Inc. is medium due to the presence of multiple suppliers and the company's moderate dependence on them.

Threat Of New Entrants

The threat of new entrants for OraSure Technologies, Inc. is low due to the high barriers to entry in the diagnostic testing industry, including regulatory hurdles and high research and development costs.

Intensity Of Rivalry

The intensity of rivalry for OraSure Technologies, Inc. is high due to the presence of several established competitors in the diagnostic testing industry, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.04%
Debt Cost	3.95%
Equity Weight	96.96%
Equity Cost	5.09%
WACC	5.05%
Leverage	3.14%

11. Quality Control: OraSure Technologies, Inc. passed 8 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Utah Medical Products

A-Score: 5.4/10

Value: 4.7

Growth: 3.0

Quality: 8.4

Yield: 4.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

Pro-Dex

A-Score: 5.2/10

Value: 6.7

Growth: 6.0

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

LeMaitre Vascular

A-Score: 4.8/10

Value: 1.2

Growth: 7.4

Quality: 7.0

Yield: 2.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

Warby Parker

A-Score: 4.5/10

Value: 3.3

Growth: 7.4

Quality: 4.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

Nephros

A-Score: 4.4/10

Value: 1.4

Growth: 6.3

Quality: 7.7

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

OraSure Technologies

A-Score: 3.4/10

Value: 7.1

Growth: 4.2

Quality: 5.0

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

14.05%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.05%

OraSure Technologies, Inc. - US68554V1089

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OSUR

1.c. Company Highlights

Higher Growth

Better Quality

Fairly Valued

Earnings Beats

Revenues Beats

Average Quality

Weak Momentum

Stable Momentum

Revenues Miss

Earnings Miss

Cheaper

Lower Quality

Average Yield

Average Growth

2. OraSure Technologies' Q3 Earnings: A Closer Look

Business Outlook and Guidance

Strategic Acquisition and Innovation

Valuation and Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.77%)

6. Segments

COVID-19

Expected Growth: 10.98%

Human Immunodeficiency Virus

Expected Growth: 10.43%

Molecular Sample Management Solutions

Expected Growth: 10.55%

Hepatitis C Virus

Expected Growth: 9.95%

Risk Assessment Testing

Expected Growth: 10.38%

Molecular Services

Expected Growth: 9.95%

Non-product and Services

Expected Growth: 10.43%

Other Product and Services

Expected Growth: 9.98%

7. Detailed Products

Oral Fluid Collection Devices

Rapid Point-of-Care Tests

Molecular Diagnostic Tests

Microbial Detection Tests

IntelliSwab

OraQuick

Drugs of Abuse Tests

8. OraSure Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: OraSure Technologies, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

12.e Scoring ^Insights

12.f DCF ^BETA