VLTOMEDIUM SIGNALFINANCIAL10-K

Veralto's fiscal 2025 10-K reflects a meaningfully strengthened balance sheet and improved cash generation, alongside the removal of Danaher separation-related risk language and the addition of new risks around tariffs and artificial intelligence.

The retirement of Danaher-related risk disclosures signals that Veralto has matured as a standalone public company, reducing a category of overhang that has weighed on investor perception since the 2023 separation. However, the newly added tariff and AI-related risk factors reflect real and evolving exposures that investors should monitor, particularly given Veralto's global manufacturing and supply chain footprint. The market capitalization of non-affiliate shares rising from $23.6B to $25.7B also reflects meaningful appreciation in public float value over the period.

Comparing 2026-02-20 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

Veralto's balance sheet strengthened considerably, with cash and equivalents roughly doubling to $2.0B and stockholders' equity expanding by more than half to $3.1B, while total assets grew approximately 20% to $7.7B. Net income grew a solid 12.8% to $940M, and operating cash flow climbed approximately 23% to $1.1B, demonstrating durable earnings quality and improving cash conversion. The overall picture is constructive — a company building liquidity, growing earnings organically, and returning more capital to shareholders via dividends that increased approximately 22%, with no visible signs of financial stress.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+84.5%
$1.1B→$2.0B

Cash position surged 84.5% — strong cash generation or capital raise providing significant financial cushion.

Current Liabilities
Balance Sheet
+65.1%
$1.2B→$2.1B

Current liabilities surged 65.1% — significant near-term obligations; verify ability to meet short-term debt.

Stockholders Equity
Balance Sheet
+52.4%
$2.0B→$3.1B

Equity base grew 52.4% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Assets
Balance Sheet
+43.8%
$2.4B→$3.4B

Current assets grew 43.8% — improving short-term liquidity or inventory/receivables build.

Operating Cash Flow
Cash Flow
+23.1%
$875.0M→$1.1B

Operating cash flow grew 23.1% — strong conversion of earnings to cash, healthy business fundamentals.

Dividends Paid
Cash Flow
+22.5%
$89.0M→$109.0M

Dividend payments increased 22.5% — management confidence in sustained cash generation.

Total Assets
Balance Sheet
+20.1%
$6.4B→$7.7B

Asset base grew 20.1% — expansion through organic growth, acquisitions, or capital deployment.

Net Income
P&L
+12.8%
$833.0M→$940.0M

Net income grew 12.8% — bottom-line growth signals improving overall business health.

Accounts Receivable
Balance Sheet
+10.5%
$812.0M→$897.0M

Receivables grew 10.5% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-02-20
PRIOR — 2025-02-25
ADDED
The aggregate market value of common stock held by non-affiliates of the Registrant as of July 4, 2025 was $ 25.7 billion , based upon the closing price of the Registrant s common stock on the New York Stock Exchange.
Below is a summary of material risks and uncertainties we face, some of which we have experienced and any of which may occur in the future.
Risk Factors : Business and Strategic Risks Conditions in the global economy, including military conflicts and changes in trade and tariff policies, the particular markets we serve and the financial markets can adversely affect our business and financial statements.
government has imposed and may continue to impose significant tariffs or other restrictions on foreign imports, and such trade restrictions or related countermeasures taken by impacted foreign countries could negatively affect our business, results of operations, or financial condition.
1 Uncertainties with respect to the development, deployment, and use of artificial intelligence in our business and products may result in harm to our business and financial statements.
In addition, challenges to tax positions taken through audits by tax authorities could result in additional tax payments for prior periods.
Product Quality Innovation Our Product Quality Innovation segment provides a broad set of essential solutions that brand owners in consumer packaged goods ( CPG ), food and beverage, pharmaceutical, and industrial sectors use to support product authenticity, traceability, quality control, regulatory compliance, accelerate speed to market, and reduce material costs and waste.
We serve a majority of the 5 top 25 global CPG brands and a majority of the top 20 pharmaceutical brands use PQI s solutions, enabling confidence and trust in the brands and products consumers use daily.
Printing billions of codes a day, our solutions help ensure transparency, safety, authenticity, tracking and traceability throughout the global supply chain.
Esko s offerings are extensively used by established and emerging brands and their suppliers, with over 25,000 customers in over 140 countries.
REMOVED
The aggregate market value of common stock held by non-affiliates of the Registrant as of June 28, 2024 was $ 23.6 billion, based upon the closing price of the Registrant s common stock on the New York Stock Exchange.
Below is a summary of material risks and uncertainties we face, which are discussed more fully in Item 1A.
Separation and Our Relationship with Danaher Risks As an independent, publicly traded company, Veralto may not enjoy the same benefits that Veralto did as a part of Danaher.
Potential indemnification liabilities to Danaher pursuant to the separation agreement could materially and adversely affect Veralto s business and financial statements.
In connection with Veralto s separation from Danaher, Danaher will indemnify Veralto for certain liabilities.
However, there can be no assurance that the indemnity will be sufficient to insure Veralto against the full amount of such liabilities, or that Danaher s ability to satisfy its indemnification obligation will not be impaired in the future.
If there is a determination that the separation and/or the distribution, together with certain related transactions, is taxable for U.S.
federal income tax purposes, Danaher and its stockholders could incur significant U.S.
federal income tax liabilities, and we could also incur significant liabilities.
Veralto may be affected by significant restrictions, including on its ability to engage in certain corporate transactions for a two-year period after the distribution in order to avoid triggering significant tax-related liabilities.
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