OSI Systems makes security-screening equipment, electronic components and medical monitoring systems, and provides related maintenance and screening-operation services.
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A snapshot of what OSI SYSTEMS INC owns and owes at a point in time.
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3 reports in this collection
| Report period | Filed with SEC | Form | Source |
|---|---|---|---|
| Jun 30, 20240001410578-24-001571 | Aug 29, 2024 | 10-K | Open 10-Ksec.gov |
| Jun 30, 20250001410578-25-001887 | Aug 25, 2025 | 10-K | Open 10-Ksec.gov |
| Jun 30, 20260001104659-26-099752 | Aug 21, 2026 | 10-K | Open 10-Ksec.gov |
Dates describe the filing metadata. Figures and reporting periods should be checked against the original statement. SEC links open in a new tab.
OSI’s fiscal 2026 growth was stronger in sales and cash collection than in operating profit. Security services and electronics manufacturing helped offset declining contributions from large international projects, but a less favorable sales mix squeezed gross margin. Revenue reached $1.786 billion, while GAAP operating income was nearly unchanged at $219.0 million. Operating cash flow recovered to $275.9 million, largely through working-capital improvements rather than a comparable profit increase. Cash rose, but so did debt, and substantial repurchases consumed funds. The central dependencies are replacing completed project revenue, collecting concentrated receivables and converting orders into deliveries despite procurement and supply disruptions. This assessment uses the fiscal year ended June 30, 2026 and subsequent events disclosed in the August 21, 2026 annual filing—not verified developments through October 24.
Sources: 10-K · 2026-06-30
Security supplied approximately 70% of fiscal 2026 revenue, external Optoelectronics and Manufacturing sales 21%, and Healthcare 9%. OSI combines equipment and component sales with maintenance, software and screening operations; the disclosures do not establish a subscription-based business. Management attributed Security’s growth primarily to services supporting a larger installed equipment base. Consolidated service revenue rose to $441.3 million from $389.9 million. External electronics sales also increased, while Healthcare sales declined.
Replacing completed projects matters. Revenue from three large international Security contracts declined from approximately $404 million in fiscal 2024 to $231 million in 2025 and $79 million in 2026. Most equipment deliveries were complete, and management expects smaller contributions ahead. June 2026 backlog was approximately $1.9 billion, covering quantifiable signed orders expected to become revenue within five years. The separate $1.8 billion remaining-performance-obligation measure overlaps rather than adds to backlog. Its disclosure scope expanded to include short-duration contracts, with 2025 revised comparably; earnings were unaffected. Management expects about 59% to become revenue within twelve months, subject to execution and timing.
Sources: 10-K · 2026-06-30
Fiscal 2026 revenue was $1,786.0 million versus $1,713.2 million, but GAAP operating income moved only to $219.0 million from $217.5 million. Gross margin fell to 33.2% from 34.3%. Management cited lower above-average-margin Mexico sales, growth in lower-margin businesses and weaker aviation/checkpoint margins, partly offset by stronger RF systems. Favorable foreign exchange and lower compensation reduced overhead, while R&D and impairment, restructuring and other charges increased. Healthcare’s improved segment profit excludes those charges: after its own excluded costs, it was approximately break-even before corporate allocations.
Lower net interest and other expense helped GAAP net income reach $154.7 million, versus $149.6 million. Financing savings were partly offset by pension-amendment costs. Diluted EPS rose to $8.95 from $8.71; despite repurchases reducing basic average shares, convertible-note dilution increased diluted average shares. Bill-and-hold revenue rose to $64.7 million from $19.1 million as customers requested shipment delays. OSI says recognition met ASC 606 requirements, but these sales were recognized before physical delivery. No normalized earnings estimate is presented: the income-statement placement of a $10.120 million earnout remeasurement and the full nature of some non-recurring charges are unspecified.
Sources: 10-K · 2026-06-30
Operating cash flow rose to $275.9 million from $97.6 million, including a $98.7 million receivables release. Other working-capital movements both supported and offset collections; this release is not necessarily repeatable. Net receivables remained $764.6 million, with one Security customer representing 25%, and included $190.9 million not yet billable. Fiscal 2026 cash uses included $30.6 million for property and equipment, another $18.0 million for intangible and other assets, $271.9 million for program repurchases and $36.4 million for equity-award settlement taxes. A cash-flow measure subtracting only physical investment would omit other investment spending.
In June 2026, OSI completed an airport-screening services acquisition with approximately $27 million fixed consideration, including $26.2 million paid at closing, plus up to $14 million contingent consideration. Its $36.7 million accounting purchase price includes fair-valued contingent consideration, not another payment. Across capped acquisition agreements, remaining contingent payments could reach $51.9 million. Next-year operating lease payments were $15.4 million. Pension underfunding was $6.4 million, not a ceiling on future payments; a separate $10.7 million trust was excluded from pension assets and does not establish full funding.
Sources: 10-K · 2026-06-30
At June 30, 2026, cash was $359.8 million and debt carrying value approximately $1,001.0 million, versus $106.4 million and $649.6 million a year earlier. Operations and a November 2025 convertible issue supported cash. The secured revolving facility matures in July 2030; OSI reported $629.2 million available to borrow and covenant compliance at year-end. That availability is not cash or an unconditional funding commitment, and numerical covenant headroom is undisclosed.
Convertible principal comprises $350 million due August 1, 2029 at 2.25% and $575 million due February 1, 2031 at 0.50%. Conversion requires principal settlement in cash. Neither issue was convertible at June 30, 2026, but conditional conversion, redemption or repurchase provisions can accelerate cash demands. Scheduled principal payments of $2.5 million within twelve months exclude such contingent acceleration. Management expects funding to cover at least twelve months, subject to cash generation, covenants, investment choices and financing access. On August 20, 2026, the board authorized another one million shares for repurchase; authorization is not execution.
Separate from cash availability, the credit facility restricts cash payments for conversion, redemption or repurchase of the Notes, including compliance with specified leverage ratios on a pro forma basis after payment. Failure to make required repurchases or cash conversion payments constitutes a default under the Note Indenture and could trigger defaults on other debt, making it immediately payable in full. Numerical thresholds and compliance with these payment-specific conditions are not established by the supplied evidence; reported year-end covenant compliance does not guarantee compliance when a payment is required. These restrictions do not alter the principal cash-settlement requirement or make contingent acceleration certain.
Sources: 10-K · 2026-06-30
Unaudited fourth-quarter revenue declined to $484.1 million from $505.0 million, although operating income increased modestly. Management reported actual Middle East-related shipment and acceptance delays and near-term bookings and revenue effects from a Department of Homeland Security shutdown. Government appropriations and termination rights, semiconductor shortages and costs, hospital purchasing pressure and a company-wide ERP implementation remain material dependencies. Management sees opportunities in border, airport and defense demand, but supplies no quantified fiscal 2027 revenue or EPS guidance.
Performance bonds carried approximately $102 million maximum exposure. Letters of credit totaled $95.8 million under the main facility and $63 million under foreign facilities; these are not funded debt or cash. OSI reported no pending performance demands under those arrangements. Management did not expect ordinary-course litigation to have a material adverse effect, but adverse outcomes remain possible: no accrual does not mean no liability risk. Detection failures, healthcare regulation and government-contract compliance also create exposure.
Sources: 10-K · 2026-06-30
USD 1.785984 bn
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD 1.785984 bn | 4.3% |
| 2025 | USD 1.713166 bn | 11.3% |
| 2024 | USD 1.538758 bn | — |
Consolidated product and service revenue after intersegment eliminations.
Sources: 10-K · 2026-06-30
USD 154.711 m
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD 154.711 m | 3.4% |
| 2025 | USD 149.637 m | 16.8% |
| 2024 | USD 128.154 m | — |
Consolidated GAAP net income, also reported as net income available to common stockholders.
Sources: 10-K · 2026-06-30
USD 275.904 m
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD 275.904 m | 182.7% |
| 2025 | USD 97.592 m | Turned positive |
| 2024 | USD -87.501 m | — |
GAAP operating cash flow; negative values represent cash used.
Sources: 10-K · 2026-06-30
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