CRLHIGH SIGNALFINANCIAL10-K

Charles River Laboratories experienced a dramatic collapse in operating income while debt levels increased substantially, signaling severe operational distress.

The company's operating income fell to just $25.2M from $227.3M in the prior year, representing a catastrophic decline in profitability despite revenue growth of 10.5%. This collapse in operating leverage, combined with a 48% increase in total debt to $1.6B, suggests the company is facing significant operational challenges that required additional borrowing to maintain operations.

Comparing 2026-02-18 vs 2025-02-19View on EDGAR →
FINANCIAL ANALYSIS

Charles River's financial profile deteriorated markedly, with operating income collapsing by nearly 89% to $25.2M despite revenue growing modestly to $1.9B. The company's debt burden increased substantially to $1.6B, while current liabilities also grew to $1.1B. This combination of plummeting profitability and rising leverage indicates serious operational headwinds that have severely impacted the company's financial health and may constrain future strategic flexibility.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
-88.9%
$227.3M→$25.2M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Total Debt
Balance Sheet
+48.3%
$1.1B→$1.6B

Debt increased 48.3% — substantial leverage increase; assess whether deployed for growth or covering losses.

Current Liabilities
Balance Sheet
+12.7%
$994.1M→$1.1B

Current liabilities rose 12.7% — increased short-term obligations, watch current ratio.

Revenue
P&L
+10.5%
$1.7B→$1.9B

Revenue growing 10.5% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-18
PRIOR — 2025-02-19
ADDED
As of January 24, 2026, there were 49,227,800 shares of the registrant s common stock outstanding, $0.01 par value per share.
In 2025, RMS accounted for 21.1% of our total revenue and approximately 4,140 of our employees, including approximately 190 science professionals with advanced degrees.
In 2025, our DSA segment represented 59.8% of our total revenue and employed approximately 11,760 of our employees including approximately 1,680 science professionals with advanced degrees.
In 2025, Manufacturing accounted for 19.1% of our total revenue and approximately 2,600 of our employees, including approximately 350 science professionals with advanced degrees.
In both cases - non-human primates we provide directly to clients and non-human primates which are utilized through our Safety Assessment services these large research models are sourced from Charles River internally or from Charles River audited and approved suppliers.
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REMOVED
As of January 25, 2025, there were 51,141,607 shares of the registrant s common stock outstanding, $0.01 par value per share.
For example, we may use forward-looking statements when addressing topics such as: our expectations regarding the availability of non-human primates and our ability to diversify our non-human primate (NHP) supply chain; the outcome of (1) the U.S.
In 2024, RMS accounted for 20.5% of our total revenue and approximately 4,100 of our employees, including approximately 200 science professionals with advanced degrees.
In 2024, our DSA segment represented 60.5% of our total revenue and employed approximately 12,100 of our employees including approximately 1,500 science professionals with advanced degrees.
In 2024, Manufacturing accounted for 19.0% of our total revenue from continuing operations and approximately 2,800 of our employees, including approximately 380 science professionals with advanced degrees.
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