Henry Schein (HSIC) FY2025 10-K Annual Report

Filed: Feb 24, 2026
Consumer Discretionary
Wholesale-Medical, Dental & Hospital Equipment & SuppliesSEC EDGAR

Henry Schein (HSIC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 24, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Henry Schein FY2025 10-K Analysis

Business Overview

  • Global distribution of dental/medical products and services to office-based practitioners, supplemented by specialty products and healthcare technology software
  • Global Technology fastest-growing segment at +7.1% driven by cloud-based practice management platform adoption and revenue cycle management solutions; launched Global E-Commerce Platform (henryschein.com)
  • Active 2024 restructuring plan (completing 2027) reshaping portfolio via business disposals across all three segments; $105M charges in FY2025 vs $73M in FY2024
  • Net sales $13.2B, up 4.0% YoY; share count fell from 124M to 116M as company repurchased $250M via accelerated buyback plus new $750M repurchase authorization
  • Total debt surged to $3.1B from $2.5B YoY while operating cash flow declined $136M to $712M; $36M in shareholder advisory/consulting costs flagged as unusual adjustment vs just $2M prior year

Management Discussion & Analysis

  • Revenue $13,184M in FY2025, up 4.0% YoY from $12,673M; internal growth 2.6%, acquisitions 0.9%, FX 0.5%
  • Gross margin 31.1% vs 31.7% prior year; operating expense ratio 26.2% vs 26.8%; effective tax rate 23.7% vs 24.9%
  • Best segment: Global Technology +7.1% sales, gross margin 67.7% vs 67.4%; worst: Global Distribution gross margin 25.0% vs 25.8%
  • Operating cash flow $712M vs $848M; investing cash outflow $400M; $250M accelerated share repurchase executed May 2025; $780M remaining buyback capacity; total debt $3,107M vs $2,536M
  • Key risks: OBBBA Medicaid cuts and tariffs flagged as likely adverse to utilization and costs; restructuring charges $105M in FY2025 with plan continuing through end of 2027

Risk Factors

  • CEO Stanley Bergman retiring March 1, 2026 after 37-year tenure; successor Frederick Lowery appointed January 2026 amid intensifying senior management competition
  • October 2023 cyberattack disrupted North American and European distribution operations; residual financial impact persisted through 2024 with ongoing remediation costs
  • KKR strategic investment of $250M at ~$76.10/share; ownership limit raised to 19.9%, creating potential conflicts via KKR investments in customers, suppliers, or competitors
  • False Claims Act exposure: whistleblower relators entitled to up to 30% of government recoveries; penalties include treble damages plus potential Medicare/Medicaid exclusion
  • Top 10 Global Distribution suppliers represent ~24% of aggregate purchases; no long-term contracts, creating supply disruption risk for high-margin products

Henry Schein FY2025 Key Financial Metrics
XBRL

Revenue

$13.2B

+4.0% YoY

Net Income

$398M

+2.1% YoY

Gross Margin

31.1%

-55bp YoY

Operating Margin

5.0%

+5bp YoY

Net Margin

3.0%

-6bp YoY

ROE

12.3%

+77bp YoY

Total Assets

$11.2B

+9.8% YoY

EPS (Diluted)

$3.27

+7.2% YoY

Operating Cash Flow

$712M

-16.0% YoY

Source: XBRL data from Henry Schein FY2025 10-K filing on SEC EDGAR. All figures in USD.

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