MASIHIGH SIGNALFINANCIAL10-K

MASI shows substantial financial distress with meaningfully reduced net losses but continuing unprofitability alongside significant asset base contraction and doubled interest expense burden.

The company remains deeply unprofitable despite cutting net losses substantially, while the balance sheet has contracted significantly across all major categories including a 35% decline in total assets. The doubling of interest expense to $50.3M suggests increased borrowing costs that will pressure future profitability even as the company has reduced total debt levels.

Comparing 2026-02-27 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

MASI's financial picture shows a company in significant distress with substantial net losses persisting despite meaningful improvement, while operational expenses declined notably with R&D down 43% and SG&A down 32%. The balance sheet contracted substantially with total assets falling 35% and total liabilities declining 38%, though the company faces a doubled interest expense burden that will challenge future performance. The overall picture suggests a company undergoing major restructuring while struggling with persistent losses and a shrinking operational footprint.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+95.7%
$25.7M$50.3M

Interest expense surged 95.7% — significant debt increase or rising rates materially impacting earnings.

Net Income
P&L
+50.3%
-$304.9M-$151.5M

Net income grew 50.3% — bottom-line growth signals improving overall business health.

R&D Expense
P&L
-43.3%
$222.8M$126.4M

R&D spending cut 43.3% — could signal cost discipline or concerning reduction in innovation investment.

Current Liabilities
Balance Sheet
-39.8%
$617.7M$371.6M

Current liabilities reduced — improved short-term financial position and working capital health.

Total Liabilities
Balance Sheet
-37.9%
$1.6B$977.7M

Liabilities reduced 37.9% — deleveraging improves balance sheet strength and financial flexibility.

Total Assets
Balance Sheet
-35.3%
$2.6B$1.7B

Total assets contracted 35.3% — asset sales, write-downs, or balance sheet optimization underway.

SG&A Expense
P&L
-32%
$743.8M$506.0M

SG&A reduced 32% — improved cost efficiency or headcount reduction improving operating margins.

Total Debt
Balance Sheet
-31.5%
$765.2M$524.3M

Debt reduced 31.5% — deleveraging strengthens balance sheet and reduces financial risk.

Stockholders Equity
Balance Sheet
-31.4%
$1.1B$721.2M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Current Assets
Balance Sheet
-24.5%
$1.2B$926.0M

Current assets declined 24.5% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-25
ADDED
At January 31, 2026, the registrant had 52,192,538 shares of common stock outstanding.
BUSINESS Overview We are a global medical technology company that develops and produces a wide array of industry-leading monitoring technologies, including innovative measurements, sensors, and patient monitors.
Powered by the Masimo Hospital Automation and Masimo SafetyNet platforms, Masimo connectivity, automation, and telehealth and telemonitoring solutions are improving and automating care delivery in the hospital.
Healthcare Our healthcare business develops, manufactures and markets a variety of noninvasive patient monitoring technologies, hospital automation and connectivity solutions, and remote monitoring devices.
Our healthcare products and patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use or reusable sensors, software and/or cables.
Our core measurement technologies are our breakthrough Measure-through Motion and Low Perfusion pulse oximetry, known as Masimo Signal Extraction Technology (SET ) pulse oximetry, and advanced rainbow Pulse CO-Oximetry parameters such as noninvasive hemoglobin (SpHb ), alongside many other modalities, including brain function monitoring, hemodynamic monitoring, regional oximetry, acoustic respiration rate monitoring, capnography and gas monitoring, and telehealth solutions.
Subsequent to year end, the sales evaluation process continued to progress in early 2025, and as of March 29, 2025, the non-healthcare consumer business was classified as held-for-sale and reported as discontinued operations.
On May 6, 2025, the Company announced that it entered into a definitive agreement to sell Viper Holdings Corporation, a Delaware corporation which previously owned and operated the Company s non-healthcare business (together with its subsidiaries, Sound United ) to Harman International Industries, Incorporated, a wholly-owned subsidiary of Samsung Electronics., Ltd.
On September 23, 2025, the Company completed the sale of Sound United.
For additional information with respect to the non-healthcare consumer business separation, discontinued operations of this business and sale, see Separation of Non-Healthcare Operations under Part I, Item 1 Business for additional details.
REMOVED
At January 25, 2025, the registrant had 53,948,792 shares of common stock outstanding.
BUSINESS Overview We are a global technology company dedicated to improving lives.
We aim to accelerate our growth strategies by continuously innovating and prioritizing patient care with a lens toward value-creation initiatives, including our Board of Directors (Board) commitment to a strategic review of all business activities.
Our healthcare products and patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use or reusable sensors, software, cables and other services.
Leveraging our expertise in hospital-grade technologies, we have expanded our suite of products intended for use outside the hospital and products for home wellness to include Masimo Sleep , a sleep quality solution; the Masimo Radius T wireless, a wireless wearable continuous thermometer; Radius PCG , a wireless tetherless capnograph; the Masimo W1 smart watch .
We have partnered with Qualcomm Technologies and Google to develop a next-generation smartwatch reference platform for OEMs building Wear OS by Google smartwatches.
As of year-end, our non-healthcare consumer audio products business remained part of our continuing operations and as an important part of our broader ecosystem.
Subsequently, the sales process has progressed in 2025, and the Sound United business will be classified as held-for-sale and will be reported in discontinued operations in the first quarter of 2025.
See Separation of Non-Healthcare Operations under Part I, Item 1 Business for additional details.
We exist for people who care, care about others, care about quality, care about precision and care about excellence.
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