filings.toolsItem 1. Unaudited Financial Statements
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Item 1. Unaudited Financial Statements
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Income and Comprehensive Income
Periods Ended July 31,
(In millions, except for earnings per share)
(Unaudited)
| Three Months | Nine Months | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net sales | $ | 1,060.3 | $ | 1,002.8 | $ | 3,027.3 | $ | 2,877.0 | |||||||||||||||
| Cost of sales | 368.3 | 339.8 | 996.0 | 959.0 | |||||||||||||||||||
| Gross profit | 692.0 | 663.0 | 2,031.3 | 1,918.0 | |||||||||||||||||||
| Selling, general and administrative expense | 421.7 | 381.1 | 1,208.6 | 1,142.3 | |||||||||||||||||||
| Research and development expense | 44.6 | 39.0 | 130.8 | 117.4 | |||||||||||||||||||
| Amortization of intangibles | 50.0 | 50.4 | 149.4 | 151.0 | |||||||||||||||||||
| Operating income | 175.7 | 192.5 | 542.5 | 507.3 | |||||||||||||||||||
| Interest expense | 25.4 | 28.5 | 75.6 | 87.3 | |||||||||||||||||||
| Other (income) expense, net | (1.6) | 0.3 | 17.2 | 6.3 | |||||||||||||||||||
| Income before income taxes | 151.9 | 163.7 | 449.7 | 413.7 | |||||||||||||||||||
| Provision for income taxes (Note 6) | 53.6 | 59.0 | 159.4 | 138.9 | |||||||||||||||||||
| Net income | $ | 98.3 | $ | 104.7 | $ | 290.3 | $ | 274.8 | |||||||||||||||
| Earnings per share (Note 7): | |||||||||||||||||||||||
| Basic | $ | 0.49 | $ | 0.53 | $ | 1.45 | $ | 1.38 | |||||||||||||||
| Diluted | $ | 0.49 | $ | 0.52 | $ | 1.45 | $ | 1.37 | |||||||||||||||
| Number of shares used to compute earnings per share: | |||||||||||||||||||||||
| Basic | 199.3 | 199.1 | 199.6 | 198.8 | |||||||||||||||||||
| Diluted | 200.0 | 200.6 | 200.6 | 200.3 | |||||||||||||||||||
| Other comprehensive income, net of tax: | |||||||||||||||||||||||
| Cash flow hedges | $ | 3.9 | $ | (27.2) | $ | (17.7) | $ | (33.8) | |||||||||||||||
| Foreign currency translation adjustment | (3.7) | 24.7 | 47.3 | 62.5 | |||||||||||||||||||
| Comprehensive income | $ | 98.5 | $ | 102.2 | $ | 319.9 | $ | 303.5 |
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(In millions, unaudited)
| July 31, 2025 | October 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 124.9 | $ | 107.6 | |||||||
| Trade accounts receivable, net of allowance for credit losses of $52.1 at July 31, 2025, and $43.5 at October 31, 2024 | 792.3 | 717.0 | |||||||||
| Inventories (Note 3) | 881.0 | 802.7 | |||||||||
| Prepaid expense and other current assets | 339.6 | 324.2 | |||||||||
| Total current assets | 2,137.8 | 1,951.5 | |||||||||
| Property, plant and equipment, net | 1,988.7 | 1,863.4 | |||||||||
| Goodwill | 3,861.8 | 3,838.4 | |||||||||
| Other intangibles, net (Note 4) | 1,635.9 | 1,791.0 | |||||||||
| Deferred tax assets | 2,099.2 | 2,210.3 | |||||||||
| Other assets | 653.3 | 660.6 | |||||||||
| Total assets | $ | 12,376.7 | $ | 12,315.2 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term debt (Note 5) | $ | 46.9 | $ | 33.3 | |||||||
| Accounts payable | 255.9 | 260.5 | |||||||||
| Employee compensation and benefits | 181.1 | 174.8 | |||||||||
| Deferred revenue (Note 3) | 126.6 | 129.9 | |||||||||
| Other current liabilities | 399.6 | 424.3 | |||||||||
| Total current liabilities | 1,010.1 | 1,022.8 | |||||||||
| Long-term debt (Note 5) | 2,431.4 | 2,550.4 | |||||||||
| Deferred tax liabilities | 101.8 | 96.0 | |||||||||
| Long-term tax payable | 17.8 | 57.5 | |||||||||
| Deferred revenue (Note 3) | 199.4 | 193.3 | |||||||||
| Other liabilities | 263.2 | 311.6 | |||||||||
| Total liabilities | 4,023.7 | 4,231.6 | |||||||||
| Contingencies (Note 10) | |||||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, $0.10 par value, 1.0 shares authorized, zero shares issued or outstanding | — | — | |||||||||
| Common stock, $0.10 par value, 480.0 shares authorized, 217.6 issued and 198.8 outstanding at July 31, 2025, and 217.2 issued and 199.6 outstanding at October 31, 2024 | 21.8 | 21.7 | |||||||||
| Additional paid-in capital | 1,960.4 | 1,921.0 | |||||||||
| Accumulated other comprehensive loss | (392.1) | (421.7) | |||||||||
| Retained earnings | 7,558.7 | 7,268.4 | |||||||||
| Treasury stock at cost: 18.8 shares at July 31, 2025, and 17.6 shares at October 31, 2024 | (796.0) | (706.0) | |||||||||
| Total Cooper stockholders’ equity | 8,352.8 | 8,083.4 | |||||||||
| Noncontrolling interests | 0.2 | 0.2 | |||||||||
| Stockholders’ equity (Note 9) | 8,353.0 | 8,083.6 | |||||||||
| Total liabilities and stockholders’ equity | $ | 12,376.7 | $ | 12,315.2 | |||||||
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Stockholders' Equity
(In millions, except per share amounts)
(Unaudited)
| Common Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at October 31, 2023 | 198.1 | $ | 19.8 | 17.7 | $ | 1.8 | $ | 1,817.2 | $ | (453.8) | $ | 6,876.1 | $ | (710.3) | $ | 0.2 | $ | 7,551.0 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | 81.2 | — | — | 81.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | — | 31.8 | — | — | — | 31.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock for stock plans, net and employee stock purchase plan | 0.6 | — | — | — | 6.6 | — | — | 1.1 | — | 7.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | 23.6 | — | — | — | — | 23.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at January 31, 2024 | 198.7 | $ | 19.8 | 17.7 | $ | 1.8 | $ | 1,847.4 | $ | (422.0) | $ | 6,957.3 | $ | (709.2) | $ | 0.2 | $ | 7,695.3 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | 88.9 | — | — | 88.9 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | (0.6) | — | — | — | (0.6) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock for stock plans, net and employee stock purchase plan | 0.4 | 0.1 | — | — | 2.5 | — | — | 0.9 | — | 3.5 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | 16.8 | — | — | — | — | 16.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at April 30, 2024 | 199.1 | $ | 19.9 | 17.7 | $ | 1.8 | $ | 1,866.7 | $ | (422.6) | $ | 7,046.2 | $ | (708.3) | $ | 0.2 | $ | 7,803.9 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | 104.7 | — | — | 104.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | (2.5) | — | — | — | (2.5) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock for stock plans, net and employee stock purchase plan | — | — | (0.1) | — | 0.9 | — | — | 1.1 | — | 2.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | 17.1 | — | — | — | — | 17.1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at July 31, 2024 | 199.1 | $ | 19.9 | 17.6 | $ | 1.8 | $ | 1,884.7 | $ | (425.1) | $ | 7,150.9 | $ | (707.2) | $ | 0.2 | $ | 7,925.2 |
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Stockholders' Equity
(In millions, except per share amounts)
(Unaudited)
| Common Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at October 31, 2024 | 199.6 | $ | 19.9 | 17.6 | $ | 1.8 | $ | 1,921.0 | $ | (421.7) | $ | 7,268.4 | $ | (706.0) | $ | 0.2 | $ | 8,083.6 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | 104.3 | — | — | 104.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | (68.7) | — | — | — | (68.7) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock for stock plans, net and employee stock purchase plan | 0.3 | — | — | — | (11.0) | — | — | 1.0 | — | (10.0) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | 18.3 | — | — | — | — | 18.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at January 31, 2025 | 199.9 | $ | 19.9 | 17.6 | $ | 1.8 | $ | 1,928.3 | $ | (490.4) | $ | 7,372.7 | $ | (705.0) | $ | 0.2 | $ | 8,127.5 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | 87.7 | — | — | 87.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | 98.1 | — | — | — | 98.1 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock for stock plans, net and employee stock purchase plan | 0.1 | 0.1 | — | — | (5.9) | — | — | 0.9 | — | (4.9) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | 20.3 | — | — | — | — | 20.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock repurchase | (0.5) | — | 0.5 | — | — | — | — | (40.6) | — | (40.6) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at April 30, 2025 | 199.5 | $ | 20.0 | 18.1 | $ | 1.8 | $ | 1,942.7 | $ | (392.3) | $ | 7,460.4 | $ | (744.7) | $ | 0.2 | $ | 8,288.1 | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | 98.3 | — | — | 98.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | 0.2 | — | — | — | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock for stock plans, net and employee stock purchase plan | — | — | — | — | 1.3 | — | — | 1.3 | — | 2.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | — | — | — | — | 16.4 | — | — | — | — | 16.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock repurchase | (0.7) | — | 0.7 | — | — | — | — | (52.6) | — | (52.6) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at July 31, 2025 | 198.8 | $ | 20.0 | 18.8 | $ | 1.8 | $ | 1,960.4 | $ | (392.1) | $ | 7,558.7 | $ | (796.0) | $ | 0.2 | $ | 8,353.0 |
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
Nine Months Ended July 31,
(In millions, unaudited)
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 290.3 | $ | 274.8 | |||||||
| Depreciation and amortization | 279.0 | 284.1 | |||||||||
| Net changes in operating capital | (259.7) | (302.5) | |||||||||
| Deferred income taxes | 122.2 | 96.9 | |||||||||
| Other non-cash items | 116.4 | 87.9 | |||||||||
| Net cash provided by operating activities | 548.2 | 441.2 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, plant and equipment | (264.4) | (281.2) | |||||||||
| Acquisitions of businesses and assets, net of cash acquired, and other | (9.7) | (241.8) | |||||||||
| Net cash used in investing activities | (274.1) | (523.0) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from long-term debt, net of issuance costs | 2,174.9 | 2,807.8 | |||||||||
| Repayments of long-term debt | (2,294.7) | (2,749.2) | |||||||||
| Acquisition installment payment | (47.1) | — | |||||||||
| Net proceeds (payments) from short-term debt | 11.9 | (3.4) | |||||||||
| Net (payments) proceeds related to share-based compensation awards | (19.7) | 6.5 | |||||||||
| Repurchase of common stock | (93.3) | — | |||||||||
| Issuance of common stock for employee stock purchase plan | 6.5 | 5.9 | |||||||||
| Net cash (used in) provided by financing activities | (261.5) | 67.6 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 4.6 | 3.1 | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 17.2 | (11.1) | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 107.7 | 120.9 | |||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 124.9 | $ | 109.8 | |||||||
| Reconciliation of cash flow information: | |||||||||||
| Cash and cash equivalents | $ | 124.9 | $ | 109.7 | |||||||
| Restricted cash included in other current assets | — | 0.1 | |||||||||
| Total cash, cash equivalents, and restricted cash | $ | 124.9 | $ | 109.8 |
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
Note 1. General
The accompanying Consolidated Condensed Financial Statements of The Cooper Companies, Inc. and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information and with the requirements of Regulation S-X, Rule 10-01 for financial statements required to be filed as a part of this Quarterly Report on Form 10-Q. Unless the context requires otherwise, terms "the Company", "we", "us", and "our" are used to refer collectively to The Cooper Companies, Inc. and its subsidiaries.
The accompanying Consolidated Condensed Financial Statements and related notes are unaudited and should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024. The Consolidated Condensed Financial Statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the interim periods presented.
Accounting Policies
There have been no material changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024.
Estimates
The preparation of Consolidated Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. The Company continually monitors and evaluates the estimates used as additional information becomes available. Adjustments will be made to these provisions periodically to reflect new facts and circumstances that may indicate that historical experience may not be indicative of current and/or future results.
Accounting Pronouncements Issued But Not Yet Adopted
In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to measure credit losses on current accounts receivable and current contract assets. The practical expedient assumes that current conditions as of the balance sheet does not change for the remaining life of the asset. This ASU is effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the impact that the adoption of this guidance will have on our consolidated financial statements and disclosures.
In November 2024, the FASB issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the impact that the adoption of this guidance will have on our disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires public entities to disclose specific categories in the effective tax rate reconciliation and additional information for reconciling items that exceed a quantitative threshold. The guidance also requires all disaggregated information pertaining to taxes paid, net of refunds received, for federal, state and foreign income taxes. The new guidance is effective for fiscal years beginning after December 15, 2024, with the option to apply prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact that the adoption of this guidance will have on our consolidated financial statements and disclosures and expect to adopt this ASU for the fiscal year ending October 31, 2026.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances the disclosures required for operating segments in our annual and interim consolidated financial statements. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, which means it will be effective from our fiscal year ended October 31, 2025, and interim periods within fiscal years beginning from November 1, 2025, and will be applied retrospectively. We expect the adoption of this standard to expand our annual and interim disclosures for significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss beginning with our Annual Report on Form 10-K for the fiscal year ending October 31, 2025.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
No other recently issued accounting pronouncements had or are expected to have a material impact on our Consolidated Condensed Financial Statements.
Note 2. Acquisitions
All acquisitions were funded by cash generated from operations or facility borrowings.
On August 1, 2024, CooperSurgical completed the acquisition of obp Surgical, a U.S.-based medical device company with a suite of single-use cordless surgical retractors with integrated light source and evacuation channels. The purchase price of the acquisition was $100.0 million. Assets acquired consisted primarily of $45.6 million of developed technology, $8.5 million of customer relationships, $7.7 million of inventory, $5.4 million of other net assets, and $50.6 million of goodwill, which is primarily related to expected synergies from combined operations.
On June 7, 2024, CooperSurgical acquired a fertility company that specializes in sperm separation devices. The purchase price of the acquisition was $33.5 million. The Company accounted for this acquisition as an asset acquisition, whereby the Company allocated the total cost of the acquisition to the net assets acquired on the basis of their estimated relative fair values on the acquisition date. The primary asset acquired in this asset acquisition is a composite intangible asset of $39.6 million. The value of the composite intangible asset reflects, in addition to the purchase price, a deferred tax liability of $8.3 million arising from book/tax basis differences generated upon the acquisition. The composite intangible asset encompasses the portfolio of intellectual property associated with the sperm separation devices including the patents, trademarks, customer relationships, regulatory approvals, and commercialization rights, which have been valued as a single composite intangible asset as they are inextricably linked.
On November 1, 2023, CooperSurgical completed the acquisition of select Cook Medical assets focused primarily on the obstetrics, doppler monitoring, and gynecology surgery markets. The purchase price of the acquisition was $300.0 million, with $200.0 million paid at closing and two cash payments of $50.0 million each to be paid on November 1, 2024 and November 1, 2025. The present value of the acquisition purchase price was $291.6 million, which is included in the Company's balance sheet. Assets acquired primarily comprised of $157.9 million of technologies, $26.6 million of customer relationship related intangibles, and $107.2 million of goodwill. The goodwill is deductible for tax purposes.
Note 3. Balance Sheet Components
Inventories
| (In millions) | July 31, 2025 | October 31, 2024 | |||||||||
| Raw materials | $ | 199.2 | $ | 188.2 | |||||||
| Work-in-process | 20.0 | 18.5 | |||||||||
| Finished goods | 661.8 | 596.0 | |||||||||
| Total inventories | $ | 881.0 | $ | 802.7 |
Deferred revenue
The Company recognized revenue of approximately $31.9 million and $96.0 million for the three and nine months ended July 31, 2025, respectively, that was included in the deferred revenue balance at April 30, 2025 and October 31, 2024. The Company recognized revenue of approximately $30.0 million and $92.0 million for the three and nine months ended July 31, 2024, respectively, that was included in the deferred revenue balance at April 30, 2024 and October 31, 2023.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
Note 4. Intangible Assets
Intangible assets consisted of the following:
| July 31, 2025 | October 31, 2024 | ||||||||||||||||||||||||||||
| (In millions) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Weighted-Average Amortization Period (in years) | ||||||||||||||||||||||||
| Intangible assets with definite lives: | |||||||||||||||||||||||||||||
| Customer relationships | $ | 1,137.4 | $ | 453.8 | $ | 1,130.5 | $ | 402.5 | 19 | ||||||||||||||||||||
| Composite intangible assets (1) | 1,101.7 | 552.2 | 1,101.6 | 496.8 | 15 | ||||||||||||||||||||||||
| Technology | 703.3 | 423.7 | 706.4 | 384.3 | 11 | ||||||||||||||||||||||||
| Trademarks | 202.6 | 99.0 | 204.2 | 90.6 | 15 | ||||||||||||||||||||||||
| License and distribution rights and other | 44.7 | 26.2 | 47.9 | 27.2 | 11 | ||||||||||||||||||||||||
| 3,189.7 | $ | 1,554.9 | 3,190.6 | $ | 1,401.4 | ||||||||||||||||||||||||
| Less: accumulated amortization and translation | 1,554.9 | 1,401.4 | |||||||||||||||||||||||||||
| Intangible assets with definite lives, net | 1,634.8 | 1,789.2 | |||||||||||||||||||||||||||
| Intangible assets with indefinite lives, net (2) | 1.1 | 1.8 | |||||||||||||||||||||||||||
| Total other intangibles, net | $ | 1,635.9 | $ | 1,791.0 |
(1) Composite intangible assets primarily consist of technology, trade name, New Drug Application approval and physician relationships. The components are not reflected separately or within the corresponding categories because they are inextricably linked.
(2) Intangible assets with indefinite lives include technology and trademarks.
Balances include foreign currency translation adjustments.
As of July 31, 2025, the estimate of future amortization expenses for intangible assets with definite lives is as follows:
| Fiscal Years: | (In millions) | ||||
| Remainder of 2025 | $ | 48.7 | |||
| 2026 | 189.0 | ||||
| 2027 | 174.5 | ||||
| 2028 | 170.0 | ||||
| 2029 | 165.8 | ||||
| Thereafter | 886.8 | ||||
| Total remaining amortization for intangible assets with definite lives | $ | 1,634.8 |
There was no material impairment of goodwill or intangible assets recorded in the nine months ended July 31, 2025.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
Note 5. Financing Arrangements
The Company had outstanding debt as follows:
| (In millions) | July 31, 2025 | October 31, 2024 | |||||||||
| Short-term debt, excluding financing leases | $ | 46.0 | $ | 32.2 | |||||||
| Financing lease liabilities | 0.9 | 1.1 | |||||||||
| Short-term debt | $ | 46.9 | $ | 33.3 | |||||||
| Revolving credit | $ | 930.2 | $ | 1,049.2 | |||||||
| Term loans | 1,500.0 | 1,500.0 | |||||||||
| Other | 0.2 | 0.2 | |||||||||
| Less: unamortized debt issuance cost | (0.9) | (1.4) | |||||||||
| Long-term debt, excluding financing leases | 2,429.5 | 2,548.0 | |||||||||
| Financing lease liabilities | 1.9 | 2.4 | |||||||||
| Long-term debt | $ | 2,431.4 | $ | 2,550.4 | |||||||
| Total debt | $ | 2,478.3 | $ | 2,583.7 |
Additional information regarding our indebtedness is included in our notes to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024. The carrying value of the Company's revolving credit facility and term loans approximates fair value based on current market rates (Level 2). As of July 31, 2025, the Company was in compliance with all debt covenants.
Revolving Credit Agreement on May 1, 2024
On May 1, 2024, the Company entered into a Revolving Credit Agreement (the 2024 Credit Agreement), among the Company, CooperVision International Limited, the lenders from time to time party thereto, and PNC Bank, National Association, as administrative agent. The 2024 Credit Agreement provides for a multicurrency revolving credit facility (the 2024 Revolving Credit Facility) in an aggregate principal amount of $2,300.0 million which, unless terminated earlier, matures on May 1, 2029. On May 1, 2024, the Company used $1,170.0 million under the 2024 Revolving Credit Facility to fully repay all borrowings outstanding under the 2020 Term Loan Facility and the 2020 Revolving Credit Facility, and terminated the 2020 Credit Agreement (all as defined below). The Company has an uncommitted option to increase the revolving credit facility or establish a new term loan in an aggregate amount up to the greater of $1,150.0 million or 100% of consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), as defined in the 2024 Credit Agreement.
The 2024 Credit Agreement will bear interest, at the Company’s option, at either the base rate, or the adjusted SOFR, or adjusted foreign currency rate, plus, in each case, an applicable rate of between 0.00% and 0.50% in respect of base rate loans, and between 0.87% and 1.50% in respect of adjusted SOFR or adjusted foreign currency rate loans, in each case in accordance with a pricing grid tied to the Total Leverage Ratio, as defined in the 2024 Credit Agreement.
The Company pays an annual commitment fee that ranges from 0.10% to 0.20% of the unused portion of the 2024 Revolving Credit Facility based upon the Company’s Total Leverage Ratio, as defined in the 2024 Credit Agreement.
The 2024 Credit Agreement contains customary restrictive covenants, as well as financial covenants that require the Company to maintain a certain Total Leverage Ratio and Interest Coverage Ratio, each as defined in the 2024 Credit Agreement, consistent with the 2020 Credit Agreement discussed below.
On July 31, 2025, the Company had $930.2 million outstanding under the 2024 Revolving Credit Facility and the weighted-average interest rate on the 2024 Revolving Credit Facility was 5.43%.
Term Loan Agreement on December 17, 2021
On December 17, 2021, the Company entered into a Term Loan Agreement (the 2021 Credit Agreement) by and among the Company, the lenders from time to time party thereto, and PNC Bank, National Association, as administrative agent. The 2021 Credit Agreement provides for a term loan facility (the 2021 Term Loan Facility) in an aggregate principal amount of $1,500.0 million, which, unless terminated earlier, matures on December 17, 2026.
On May 1, 2024, in connection with the Company's entry into the 2024 Credit Agreement, the Company entered into Amendment No. 2 to the 2021 Credit Agreement, modifying the 2021 Credit Agreement by, among other things, conforming certain provisions therein to those contained in the 2024 Credit Agreement.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
On July 31, 2025, the Company had $1,500.0 million outstanding under the 2021 Term Loan Facility and the interest rate was 5.30%.
Revolving Credit and Term Loan Agreement on April 1, 2020
On April 1, 2020, the Company entered into a Revolving Credit and Term Loan Agreement (the 2020 Credit Agreement), among the Company, CooperVision International Holding Company, LP, CooperSurgical Netherlands B.V., CooperVision Holding Kft, the lenders from time to time party thereto, and KeyBank National Association, as administrative agent. The 2020 Credit Agreement provided for (a) a multicurrency revolving credit facility (the 2020 Revolving Credit Facility) in an aggregate principal amount of $1,290.0 million and (b) a term loan facility (the 2020 Term Loan Facility) in an aggregate principal amount of $850.0 million, each of which, unless terminated earlier, mature on April 1, 2025. The Company had an uncommitted option to increase the revolving credit facility or establish a new term loan in an aggregate amount up to $1,605.0 million.
On May 1, 2024, in connection with the Company's entry into the 2024 Credit Agreement, the Company terminated the 2020 Credit Agreement. In connection with the termination, all borrowings outstanding under the 2020 Credit Agreement were repaid.
Note 6. Income Taxes
The effective tax rates for the three months ended July 31, 2025, and July 31, 2024, were 35.3% and 36.1%, respectively. The decrease was primarily due to adjustments related to filing the prior year US tax return, partially offset by changes in the geographical composition of pre-tax earnings. The effective tax rates for the nine months ended July 31, 2025, and July 31, 2024, were 35.4% and 33.6%, respectively. The increase was primarily due to changes in valuation allowance and a decrease in excess tax benefits from share-based compensation, partially offset by changes in unrecognized tax benefits and changes in the geographic composition of pre-tax earnings.
Note 7. Earnings Per Share
| Periods Ended July 31, | Three Months | Nine Months | |||||||||||||||||||||
| (In millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net income | $ | 98.3 | $ | 104.7 | $ | 290.3 | $ | 274.8 | |||||||||||||||
| Basic: | |||||||||||||||||||||||
| Weighted-average common shares | 199.3 | 199.1 | 199.6 | 198.8 | |||||||||||||||||||
| Basic earnings per share | $ | 0.49 | $ | 0.53 | $ | 1.45 | $ | 1.38 | |||||||||||||||
| Diluted: | |||||||||||||||||||||||
| Weighted-average common shares | 199.3 | 199.1 | 199.6 | 198.8 | |||||||||||||||||||
| Effect of dilutive stock plans | 0.7 | 1.5 | 1.0 | 1.5 | |||||||||||||||||||
| Diluted weighted-average common shares | 200.0 | 200.6 | 200.6 | 200.3 | |||||||||||||||||||
| Diluted earnings per share | $ | 0.49 | $ | 0.52 | $ | 1.45 | $ | 1.37 |
The following table sets forth stock options to purchase our common stock and restricted stock units that were not included in the diluted earnings per share calculation because their effect would have been antidilutive for the periods presented:
| Periods Ended July 31, | Three Months | Nine Months | |||||||||||||||||||||
| (In thousands, except exercise prices) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Stock option shares excluded | 2,289 | 828 | 1,506 | 828 | |||||||||||||||||||
| Exercise prices | $75.03 - $101.54 | $82.46 - $101.54 | $82.46 - $101.54 | $82.46 - $101.54 | |||||||||||||||||||
| Restricted stock units excluded | 589 | 5 | 557 | 2 |
Note 8. Share-Based Compensation
The Company has several stock plans that are described in the Company’s Annual Report on Form 10‑K for the fiscal year ended October 31, 2024. The compensation expense and related income tax benefit recognized in our Consolidated Condensed Statements of Income and Comprehensive Income for share-based awards, including the Employee Stock Purchase Plan, were as follows:
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
| Periods Ended July 31, | Three Months | Nine Months | |||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Selling, general and administrative expense | $ | 14.5 | $ | 15.8 | $ | 49.7 | $ | 53.0 | |||||||||||||||
| Cost of sales | 1.0 | 1.3 | 3.5 | 3.6 | |||||||||||||||||||
| Research and development expense | 0.7 | 0.5 | 2.1 | 2.1 | |||||||||||||||||||
| Total share-based compensation expense | $ | 16.2 | $ | 17.6 | $ | 55.3 | $ | 58.7 | |||||||||||||||
| Related income tax benefit | $ | 1.8 | $ | 1.0 | $ | 7.5 | $ | 5.8 | |||||||||||||||
Note 9. Stockholders' Equity
Analysis of Changes in Accumulated Other Comprehensive Loss:
| (In millions) | Foreign Currency Translation Adjustment | Minimum Pension Liability | Derivative Instruments | Total | |||||||||||||||||||
| Balance at October 31, 2023 | $ | (538.0) | $ | (3.2) | $ | 87.4 | $ | (453.8) | |||||||||||||||
| Gross change in value | 62.5 | — | (44.4) | 18.1 | |||||||||||||||||||
| Tax effect | — | — | 10.6 | 10.6 | |||||||||||||||||||
| Balance at July 31, 2024 | $ | (475.5) | $ | (3.2) | $ | 53.6 | $ | (425.1) | |||||||||||||||
| Balance at October 31, 2024 | $ | (461.7) | $ | (4.9) | $ | 44.9 | $ | (421.7) | |||||||||||||||
| Gross change in value | 47.3 | — | (23.4) | 23.9 | |||||||||||||||||||
| Tax effect | — | — | 5.7 | 5.7 | |||||||||||||||||||
| Balance at July 31, 2025 | $ | (414.4) | $ | (4.9) | $ | 27.2 | $ | (392.1) |
Share Repurchases
In March 2017, the authorization under the 2012 Share Repurchase Program was increased to $1.0 billion by the Company's Board of Directors. As of July 31, 2025, $163.6 million remains authorized for repurchase.
During the three and nine months ended July 31, 2025, the Company repurchased 0.7 million and 1.2 million shares of its common stock for $52.2 million and $92.8 million, at a weighted average price of $71.97 and $73.51 per share, respectively. There were no share repurchases during the three and nine months ended July 31, 2024.
Dividends
In December 2023, the Company's Board of Directors decided to end the declaration of a semiannual dividend.
Note 10. Contingencies and Commitments
The Company is involved in various lawsuits, claims and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, supplier relationships, distributors, competitor relationships, employees and other matters. The Company does not believe that the ultimate resolution of these proceedings or claims pending against it could have a material adverse effect on its financial condition or results of operations. At each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies. Legal fees are expensed as incurred.
As of July 31, 2025, the Company entered into additional leases that have not yet commenced in order to expand manufacturing as well as research and development capacity. The undiscounted lease payments are estimated at $181.8 million for leases that will commence between the fourth quarter of fiscal 2025 through fiscal 2026, with initial terms ranging from 20 to 24 years.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
Note 11. Business Segment Information
The following tables present revenue and other financial information by reportable segment:
Segment information:
| Periods Ended July 31, | Three Months | Nine Months | |||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| CooperVision net sales by category: | |||||||||||||||||||||||
| Toric and multifocal | $ | 358.8 | $ | 326.4 | $ | 1,006.6 | $ | 934.0 | |||||||||||||||
| Sphere, other | 359.6 | 349.2 | 1,027.5 | 999.0 | |||||||||||||||||||
| Total CooperVision net sales | $ | 718.4 | $ | 675.6 | $ | 2,034.1 | $ | 1,933.0 | |||||||||||||||
| CooperSurgical net sales by category: | |||||||||||||||||||||||
| Office and surgical | $ | 204.8 | $ | 197.9 | $ | 609.5 | $ | 571.9 | |||||||||||||||
| Fertility | 137.1 | 129.3 | 383.7 | 372.1 | |||||||||||||||||||
| Total CooperSurgical net sales | 341.9 | 327.2 | 993.2 | 944.0 | |||||||||||||||||||
| Total net sales | $ | 1,060.3 | $ | 1,002.8 | $ | 3,027.3 | $ | 2,877.0 | |||||||||||||||
| Operating income (loss): | |||||||||||||||||||||||
| CooperVision | $ | 202.6 | $ | 172.7 | $ | 572.9 | $ | 487.7 | |||||||||||||||
| CooperSurgical | (4.2) | 41.3 | 39.7 | 86.9 | |||||||||||||||||||
| Corporate | (22.7) | (21.5) | (70.1) | (67.3) | |||||||||||||||||||
| Total operating income | 175.7 | 192.5 | 542.5 | 507.3 | |||||||||||||||||||
| Interest expense | 25.4 | 28.5 | 75.6 | 87.3 | |||||||||||||||||||
| Other (income) expense, net | (1.6) | 0.3 | 17.2 | 6.3 | |||||||||||||||||||
| Income before income taxes | $ | 151.9 | $ | 163.7 | $ | 449.7 | $ | 413.7 |
| (In millions) | July 31, 2025 | October 31, 2024 | |||||||||
| Total identifiable assets: | |||||||||||
| CooperVision | $ | 7,511.7 | $ | 7,285.1 | |||||||
| CooperSurgical | 4,671.0 | 4,832.0 | |||||||||
| Corporate | 194.0 | 198.1 | |||||||||
| Total | $ | 12,376.7 | $ | 12,315.2 |
Geographic information:
| Periods Ended July 31, | Three Months | Nine Months | |||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net sales to unaffiliated customers by country of domicile: | |||||||||||||||||||||||
| United States | $ | 516.2 | $ | 511.2 | $ | 1,527.8 | $ | 1,460.6 | |||||||||||||||
| Europe | 343.1 | 297.0 | 922.5 | 850.3 | |||||||||||||||||||
| Rest of world | 201.0 | 194.6 | 577.0 | 566.1 | |||||||||||||||||||
| Total | $ | 1,060.3 | $ | 1,002.8 | $ | 3,027.3 | $ | 2,877.0 |
| (In millions) | July 31, 2025 | October 31, 2024 | |||||||||
| Net property, plant and equipment by country of domicile: | |||||||||||
| United States | $ | 1,301.5 | $ | 1,188.8 | |||||||
| Europe | 423.3 | 401.7 | |||||||||
| Rest of world | 263.9 | 272.9 | |||||||||
| Total | $ | 1,988.7 | $ | 1,863.4 |
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
Note 12. Financial Derivatives and Hedging
As of July 31, 2025, the notional amount of outstanding foreign currency forward contracts was $26.8 million. The resulting impact on our Consolidated Financial Statements from currency hedging activities was not significant for the three and nine months ended July 31, 2025 and July 31, 2024.
As of July 31, 2025, the Company has eight interest rate swap contracts that have a total notional amount of $1.6 billion and remaining maturities of less than three years.
The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying Consolidated Condensed Statements of Income and Comprehensive Income:
| Periods Ended July 31, | Three Months | Nine Months | |||||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
| Derivatives designated as cash flow hedges | Location of (Gain)/Loss Recognized on Derivatives | ||||||||||||||||||||||||||||
| Interest rate swap contracts | Interest expense (income) | $ | (8.1) | $ | (14.1) | $ | (28.2) | $ | (41.3) | ||||||||||||||||||||
The cumulative pre-tax impact of the gain on derivatives designated for hedge accounting is recognized in "Accumulated other comprehensive loss". The following table details the changes in the cumulative pre-tax impact of the gain on derivatives designated for hedge accounting:
| Periods Ended July 31, | Three Months | Nine Months | ||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Beginning balance gain | $ | 31.0 | $ | 106.4 | $ | 59.2 | $ | 115.1 | ||||||||||||||||||
| Amount recognized in accumulated other comprehensive income on interest rate swap contracts, gross | 12.9 | (21.6) | 4.8 | (3.1) | ||||||||||||||||||||||
| Amount reclassified from accumulated other comprehensive income into earnings, gross | (8.1) | (14.1) | (28.2) | (41.3) | ||||||||||||||||||||||
| Ending balance gain | $ | 35.8 | $ | 70.7 | $ | 35.8 | $ | 70.7 |
The amount recognized in other comprehensive income on interest rate swap contracts was $9.9 million and $3.6 million, net of tax effect, for the three and nine months ended July 31, 2025, respectively, and $(16.5) million and $(2.7) million, net of tax, for the three and nine ended July 31, 2024, respectively.
The amount reclassified from other comprehensive income into earnings was $(6.0) million and $(21.3) million, net of tax, for the three and nine months ended July 31, 2025, respectively, and $(10.7) million and $(31.1) million, net of tax, for the three and nine ended July 31, 2024, respectively.
Refer to Note 9. Stockholders' Equity for amounts presented net of the related tax impact in "Accumulated other comprehensive loss."
The Company expects that $(26.5) million recorded as a component of "Accumulated other comprehensive loss" will be realized in the Consolidated Condensed Statements of Income over the next twelve months and the amount will vary depending on prevailing interest rates.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
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