BIO-RAD LABORATORIES INC
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
BIO-B$379.50+4.2%Stored close · as of Oct 27, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0000012208-24-000063
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000012208-25-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 69 previous paragraphs and 45 current paragraphs.
19 unchanged; 23 reworded; 3 added; 22 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Current global economic and geopolitical conditions remain uncertain, and we rely on the support of many governments for both research and healthcare. Reduced government spending, along with ongoing challenges in the biopharma market and among small biotech companies, continues to negatively impact our business. Additionally, the market in China, which represents a mid-single digit percentage of our year-to-date 2025 consolidated net sales, remains uncertain as a result of these factors. We expect these conditions to continue through the rest of 2025.
Current report
Research and development ("R&D") expense for the first quarter of 2025 was $73.5 million or 12.6% of sales, compared to $66.4 million or 10.9% of sales in the first quarter of 2024. The increase in R&D expense was primarily due to higher restructuring costs, partially offset by lower employee-related expenses.
Current report
During the first quarter of 2025, 21,365 shares of Class A treasury stock with an aggregate total cost of $7.1 million were reissued to fulfill grants to employees under our restricted stock program and our Employee Stock Purchase Program. Upon reissuing the Class A treasury stock, Additional paid-in-capital was reduced by $2.8 million from share reissuance activity during the quarter.
Removed paragraphs (22)
Previous report
We are impacted by ongoing global economic conditions and our business continued to be negatively impacted by the ongoing challenges impacting the biopharma market and small biotech companies. We expect that these conditions will continue to impact our business through the remainder of 2024 and into 2025.
Previous report
Net sales (sales) for the third quarter of 2024 were $649.7 million compared to $632.1 million in the third quarter of 2023, an increase of 2.8%. On a currency neutral basis, third quarter 2024 sales increased by approximately 3.4% compared to the same period in 2023. The increase in sales was driven by higher sales in our Clinical Diagnostics segment.
Previous report
Research and development ("R&D") expense for the third quarter of 2024 was $91.0 million or 14.0% of sales, compared to $43.5 million or 6.9% of sales in the third quarter of 2023. The increase in R&D expense was primarily due to a one-time acquired in-process research and development expense of $29.5 million impacting the third quarter of 2024 and a decrease in the fair value of contingent consideration of $14.8 million impacting R&D expense for the third quarter of 2023.
Previous report
Other income, net for the third quarter of 2024 was $18.1 million compared to $20.4 million for the third quarter of 2023. The difference in Other income, net was primarily attributable to lower net realized gains on investments.
Previous report
Nine Months Ended September 30, 2024 Compared to
Previous report
Nine Months Ended September 30, 2023
Previous report
The Life Science segment sales for the first nine months of 2024 were $753.1 million, a decrease of 15.1% compared to the same period last year. On a currency neutral basis, sales decreased 14.8% compared to the first nine months of 2023, driven by ongoing weakness in the biotech and biopharma end-markets. Currency neutral sales decreased across all regions.
Previous report
The Clinical Diagnostics segment sales for the first nine months of 2024 were $1.1 billion, an increase of 4.1% compared to the same period last year. On a currency neutral basis, sales increased 4.8% compared to the first nine months of 2023. The currency neutral sales increase was primarily driven by increased demand for quality control and blood typing products. Currency neutral sales increased across all regions.
Previous report
SG&A expense for the first nine months of 2024 was $610.0 million or 32.1% of sales, compared to $634.6 million or 31.9% of sales for the first nine months of 2023. The decrease in SG&A expense was primarily due to lower employee-related expenses, lower restructuring costs, and a reduction in discretionary spending.
Previous report
R&D expense for the first nine months of 2024 was $216.3 million or 11.4% of sales, compared to $183.5 million or 9.2% of sales in the first nine months of 2023. The increase in R&D expense was primarily due to a one-time acquired in-process research and development expense of $29.5 million impacting the first nine months of 2024 and a decrease in the fair value of contingent consideration of $14.4 million impacting R&D expense for the first nine months of 2023.
Previous report
Results of Operations – Non-operating
Previous report
(Gains) losses from change in fair market value of equity securities and loan receivable was a loss of $1.68 billion and $1.58 billion for the first nine months of 2024 and 2023, respectively. The change in the fair market value primarily resulted from the recognition of higher holding losses of $1.71 billion in the first nine months of 2024 compared to holding losses of $1.56 billion in the first nine months of 2023 on our position in Sartorius AG. In addition, higher gains from the change in fair value of our loan receivable of $14.7 million in the first nine months of 2024 compared to a loss of $28.9 million in the first nine months of 2023 contributed to the change.
Previous report
During the third quarter of 2024, 127,328 shares of Class A treasury stock with an aggregate total cost of $44.0 million were reissued to fulfill grants to employees under our restricted stock program and our Employee Stock Purchase Program. Upon reissuing the Class A treasury stock, Additional paid-in-capital was reduced by$38.9 million from share reissuance activity during the quarter.
Previous report
In July 2024, the board of directors granted the Company authority to repurchase, on a discretionary basis, up to an additional $500 million of the outstanding shares of the Company’s common stock under the 2023 Share Repurchase Program.
Previous report
During the second quarter of 2024, 21,017 shares of Class A treasury stock with an aggregate total cost of $7.4 million were reissued to fulfill grants to employees under our restricted stock program and our Employee Stock Purchase Program. Upon reissuing the Class A treasury stock, Additional paid-in-capital was reduced by$2.7 million from share reissuance activity during the quarter.
Previous report
During the second quarter of 2024, we repurchased 346,226 shares of Class A common stock for $100 million under our 2023 Share Repurchase Program. We designated these repurchased shares as treasury stock.
Previous report
During the third quarter of 2023, 113,908 shares of Class A treasury stock with an aggregate total cost of $45.8 million were reissued to fulfill grants to employees under our restricted stock program and our Employee Stock Purchase Program. Upon reissuing the Class A treasury stock, Additional paid-in-capital was reduced by $45.3 million from share reissuance activity during the quarter.
Previous report
During the third quarter of 2023, we repurchased 58,478 shares of Class A common stock for $21.3 million under our Share Repurchase Program. We designated these repurchased shares as treasury stock.
Previous report
In July 2023, the board of directors authorized a new share repurchase program granting the Company authority to repurchase, on a discretionary basis, up to $500 million of the outstanding shares of the Company’s common stock.
Previous report
During the second quarter of 2023, 17,428 shares of Class A treasury stock with an aggregate total cost of $6.9 million were reissued to fulfill grants to employees under our restricted stock program and our Employee Stock Purchase Program. Upon reissuing the Class A treasury stock, Additional paid-in-capital was reduced by $2.1 million from share reissuance activity during the quarter.
Previous report
During the second quarter of 2023, we repurchased 549,863 shares of Class A common stock for $207.4 million under our Share Repurchase Program. We designated these repurchased shares as treasury stock.
Previous report
During the first quarter of 2023, 12,853 shares of Class A treasury stock with an aggregate total cost of $5.3 million were reissued to fulfill grants to employees under our restricted stock program and our Employee Stock Purchase Program. Upon reissuing the Class A treasury stock, Additional paid-in-capital was reduced by $0.7 million from share reissuance activity during the quarter.
Reworded paragraphs (23)
Previous wording
This discussion should be read in conjunction with the information contained in both our consolidated financial statements for the year ended December 31, 2023 and the condensed consolidated financial statements for the three and nine months ended September 30, 2024.
Current wording
This discussion should be read in conjunction with the information contained in both our consolidated financial statements for the year ended December 31, 2024 and the condensed consolidated financial statements for the three months ended March 31, 2025.
Previous wording
Overview. We are a multinational manufacturer and worldwide distributor of our own life science research and clinical diagnostics products. Our business is organized into two reportable segments, Life Science and Clinical Diagnostics, with the mission to provide scientists with specialized tools needed for biological research and health care specialists with products needed for clinical diagnostics.
Current wording
Overview. We are a multinational developer, manufacturer and worldwide distributor of our own life science research and clinical diagnostics products. Our business is organized into two reportable segments: Life Science and Clinical Diagnostics, with the mission to provide scientists with specialized tools needed for biological research and health care specialists with products needed for clinical diagnostics.
Previous wording
We rely on the support of many governments for both research and healthcare. The current global economic outlook is still uncertain as the need to control social spending by many governments limits opportunities for growth. Approximately 41% of our year-to-date 2024 consolidated net sales are derived from the United States and approximately 59% are derived from international locations, with Europe being our largest international region. The international sales are largely denominated in local currencies such as the Euro, Swiss Franc, Japanese Yen, Chinese Yuan and British Sterling. As a result, our consolidated net sales expressed in dollars benefit when the U.S. dollar weakens and suffer when the dollar strengthens. When the U.S. dollar strengthens, we benefit from lower cost of sales from our own international manufacturing sites, and from lower international operating expenses. We regularly discuss our changes in revenue and expense categories in terms of both changing foreign exchange rates and in terms of a currency neutral basis, if notable, to explain the impact currency has on our results.
Current wording
As a company with global operations, approximately 41% of our year-to-date 2025 consolidated net sales are derived from the United States and approximately 59% are derived from international locations, with Europe being our largest international region. The international sales are largely denominated in local currencies such as the Euro, Swiss Franc, Japanese Yen, Chinese Yuan and British Sterling. As a result, our consolidated net sales expressed in dollars benefit when the U.S. dollar weakens and suffer when the dollar strengthens. When the dollar strengthens, we benefit from lower cost of sales from our own international manufacturing sites, and from lower international operating expenses. We regularly discuss our changes in revenue and expense categories in terms of both changing foreign exchange rates and in terms of a currency neutral basis, if notable, to explain the impact currency has on our results.
Previous wording
The following table shows Cost of goods sold, Gross profit, components of operating expense, (Gains) losses from change in fair market value of equity securities and loan receivable, and Net income (loss) as a percentage of Net sales:
Current wording
The following table shows Cost of goods sold, Gross profit, components of operating expense, Gains from change in fair market value of equity securities and loan receivable, and Net income as a percentage of Net sales:
Previous wording
An accounting policy is deemed to be critical if it affects our financial statements materially and requires subjective or complex judgements by management. An accounting estimate is deemed to be critical if it requires assumptions about matters that are highly uncertain at the time the estimate is made, if different estimates reasonably could have been used, or if changes in the estimate that are reasonably likely to occur could materially impact the financial statements. Management believes that there have been no significant changes during the three and nine months ended September 30, 2024 to the items that we disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Current wording
An accounting policy is deemed to be critical if it affects our financial statements materially and requires subjective or complex judgments by management. An accounting estimate is deemed to be critical if it requires assumptions about matters that are highly uncertain at the time the estimate is made, if different estimates reasonably could have been used, or if changes in the estimate that are reasonably likely to occur could materially impact the financial statements. Management believes that there have been no significant changes during the three months ended March 31, 2025 to the items that we disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Previous wording
There have been no substantial changes in our significant accounting policies during the three and nine months ended September 30, 2024, compared with the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2023.
Current wording
There have been no substantial changes in our significant accounting policies during the three months ended March 31, 2025, compared with the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
Net sales (sales) for the first nine months of 2024 were $1.90 billion compared to $1.99 billion in the first nine months of 2023, a decrease of 4.6%. On a currency neutral basis, the first nine months of 2024 sales decreased by approximately 4.0% compared to the same period in 2023. The decrease in sales was driven by lower sales in our Life Science segment.
Current wording
Net sales ("sales") for the first quarter of 2025 were $585.4 million compared to $610.8 million in the first quarter of 2024, a decrease of 4.2%. On a currency neutral basis, first quarter 2025 sales decreased by approximately 1.5% compared to the same period in 2024. The decrease in sales was primarily driven by lower sales in our Life Science segment.
Previous wording
The Life Science segment sales for the third quarter of 2024 were $260.9 million, a decrease of 1.0% compared to the same period last year. On a currency neutral basis, sales decreased 0.6% compared to the third quarter in 2023, driven by ongoing weakness in the biotech and biopharma end-markets. Currency neutral sales decreased in the Americas, offset by an increase in EMEA.
Current wording
The Life Science segment sales for the first quarter of 2025 were $228.6 million, a decrease of 5.4% compared to the same period last year. On a currency neutral basis, sales decreased 3.5% compared to the first quarter in 2024, driven by ongoing challenges in the academic research market, particularly in the Americas. Currency neutral sales decreased in the Americas and Asia Pacific, partially offset by increased sales in EMEA.
Previous wording
The Clinical Diagnostics segment sales for the third quarter of 2024 were $388.8 million, an increase of 5.6% compared to the same period last year. On a currency neutral basis, sales increased 6.4% compared to the third quarter in 2023. The currency neutral sales increase was primarily driven by increased demand for quality control products and supply constraints impacting immunology products in the third quarter of 2023. Currency neutral sales increased across all regions.
Current wording
The Clinical Diagnostics segment sales for the first quarter of 2025 were $356.8 million, a decrease of 3.2% compared to the same period last year. On a currency neutral basis, sales decreased 0.1% compared to the first quarter in 2024. The currency neutral sales decrease was primarily driven by lowered reimbursements for diabetes testing in China, partially offset by increased demand for our quality control products. Currency neutral sales decreased in Asia Pacific, partially offset by increased sales in EMEA and the Americas.
Previous wording
Consolidated gross margin was 54.8% for the third quarter of 2024 compared to 53.1% for the third quarter of 2023. Gross margin for the Life Science segment for the third quarter of 2024 increased by approximately 2.2 percentage points from the same period last year. The increase in gross margin was primarily driven by cost control measures and product mix, partially offset by lower sales volume. Gross margin for the Clinical Diagnostics segment for the third quarter of 2024 increased by approximately 1.3 percentage points from the same period last year. The increase in gross margin was primarily driven by cost control measures, higher sales volume, and product mix.
Current wording
Consolidated gross margin was 52.3% for the first quarter of 2025 compared to 53.4% for the first quarter of 2024. Gross margin for the Life Science segment for the first quarter of 2025 increased by approximately 1.7 percentage points as compared to the same period last year. The increase in gross margin was primarily driven by product mix and cost control measures, partially offset by higher restructuring costs. Gross margin for the Clinical Diagnostics segment for the first quarter of 2025 decreased by approximately 2.9 percentage points from the same period last year. The decrease in gross margin was primarily driven by higher restructuring and material costs.
Previous wording
Selling, general and administrative ("SG&A") expense for the third quarter of 2024 was $200.4 million or 30.8% of sales, compared to $201.2 million, or 31.8% of sales for the third quarter of 2023. The decrease in SG&A expense was primarily due to a reduction in discretionary spending.
Current wording
Selling, general and administrative ("SG&A") expense for the first quarter of 2025 was $208.8 million or 35.7% of sales, compared to $214.9 million, or 35.2% of sales for the first quarter of 2024. The decrease in SG&A expense was primarily due to lower discretionary spending and employee-related costs, partially offset by higher restructuring costs.
Previous wording
Interest expense for the third quarter of 2024 and 2023 was $12.2 million and $12.4 million, respectively, which primarily consisted of interest expense related to the $1.2 billion Senior Notes.
Current wording
Interest expense for the first quarter of 2025 and 2024 was $12.0 million and $12.3 million, respectively, which primarily consisted of interest expense related to the $1.2 billion Senior Notes.
Previous wording
Foreign currency exchange (gains) losses, net consist primarily of foreign currency transaction gains and losses on intercompany net receivables and payables and the change in fair value of our forward foreign exchange contracts used to manage our foreign currency exchange risk. Foreign currency exchange gains, net was $2.0 million for the first nine months of 2024 compared to $5.3 million for the first nine months of 2023. Gains and losses are primarily due to the estimating process inherent in the timing of product shipments and intercompany debt payments, market volatility, and the change in the fair value of our foreign exchange contracts.
Current wording
Foreign currency exchange gains, net consist primarily of foreign currency transaction gains and losses on intercompany net receivables and payables and the change in fair value of our forward foreign exchange contracts used to manage our foreign currency exchange risk. Foreign currency exchange gains, net was $2.7 million and $2.0 million for the first quarter of 2025 and 2024, respectively. Gains and losses are primarily due to the estimating process inherent in the timing of product shipments and intercompany debt payments, market volatility, and the change in the fair value of our foreign exchange contracts.
Previous wording
(Gains) losses from change in fair market value of equity securities and loan receivable was a gain of $792.9 million and $36.4 million for the third quarter of 2024 and 2023, respectively. The change in the fair market value primarily resulted from the recognition of higher holding gains of $761.1 million in the third quarter of 2024 compared to holding gains of $42.5 million in the third quarter of 2023 on our position in Sartorius AG. In addition, higher gains from the change in fair value of our loan receivable of $25.2 million in the third quarter of 2024 compared to a loss of $4.9 million in the third quarter of 2023 contributed to the change.
Current wording
Gains from change in fair market value of equity securities and loan receivable was $31.8 million and $422.2 million for the first quarter of 2025 and 2024, respectively. The change in the fair market value primarily resulted from the recognition of holding gains of $29.0 million in the first quarter of 2025 compared to $402.3 million in the first quarter of 2024 on our position in Sartorius AG. In addition, holding gains from the change in fair market value of our loan receivable of $4.6 million in the first quarter of 2025 compared to $12.3 million in the first quarter of 2024 contributed to the change.
Previous wording
Other income, net for the first nine months of 2024 was $70.7 million compared to $87.4 million for the first nine months of 2023. The difference in Other income, net was primarily attributable to lower dividend income from Sartorius AG.
Current wording
Other income, net for the first quarter of 2025 was $37.2 million compared to $34.6 million for the first quarter of 2024. The increase in Other income, net of $2.6 million was primarily attributable to higher interest and investment income in the first quarter of 2025 compared to the first quarter of 2024.
Previous wording
Our effective income tax rate was 21.3% and 22.8% for the first nine months of 2024 and 2023, respectively. The effective tax rate reported in the first nine months of both 2024 and 2023 was primarily affected by the accounting treatment of our equity securities. The difference in the rate is primarily driven by geographical mix of earnings.
Current wording
Our effective income tax rate was 23.3% and 21.8% for the first quarter of 2025 and 2024, respectively. The effective tax rate reported in the first quarter of 2025 was primarily driven by geographical mix of earnings and 2024 was primarily driven by the unrealized gain/loss in equity securities. The difference in the rate is primarily driven by the unrealized gain/loss in equity securities.
Previous wording
Bio-Rad operates and conducts business globally, primarily through subsidiary companies established in the markets in which we trade. Goods are manufactured in a small number of locations, and are then shipped to local distribution facilities around the world. Our product mix is diversified, and certain products compete largely on product efficacy, while others compete on price. Gross margins are generally sufficient to exceed normal operating costs, and funding for research and development of new products, as well as routine outflows for capital expenditures, interest and taxes. In addition to the annual positive cash flow from operating activities, additional liquidity is readily available via the sale of short-term investments and access to our $200.0 million unsecured Revolving Credit Agreement that we entered into in February 2024, and to a lesser extent international lines of credit. Borrowings under the Revolving Credit Agreement are available on a revolving basis and can be used to make acquisitions, for working capital and for other general corporate purposes. We had no outstanding borrowings under the Revolving Credit Agreement as of September 30, 2024, however, an immaterial amount was utilized for domestic standby letters of credit that reduced our borrowing availability. As of September 30, 2024, our short-term investments include the net cash proceeds from the sale of Senior Notes of $1.186 billion. Interest is payable semiannually in arrears on May 15 and September 15 of each year. Management believes that this availability, together with cash flow from operations, will be adequate to meet our current objectives for operations, research and development, capital additions for manufacturing and distribution, plant and equipment, information technology systems and acquisitions of reasonable proportion to our existing total available capital.
Current wording
Bio-Rad operates and conducts business globally, primarily through subsidiary companies established in the markets in which we trade. Goods are manufactured in a small number of locations, and are then shipped to local distribution facilities around the world. Our product mix is diversified, and certain products compete largely on product efficacy, while others compete on price. Gross margins are generally sufficient to exceed normal operating costs, and funding for research and development of new products, as well as routine outflows for capital expenditures, interest and taxes. In addition to the annual positive cash flow from operating activities, additional liquidity is readily available via the sale of short-term investments and access to our $200.0 million unsecured Revolving Credit Agreement that we entered into in February 2024, and to a lesser extent international lines of credit. Borrowings under the Revolving Credit Agreement are available on a revolving basis and can be used to make acquisitions, for working capital and for other general corporate purposes. We had no outstanding borrowings under the Revolving Credit Agreement as of March 31, 2025, however, $5.7 million was utilized for domestic standby letters of credit that reduced our borrowing availability. As of March 31, 2025, our short-term investments include the net cash proceeds from the sale of Senior Notes of $1.186 billion. Interest is payable semiannually in arrears on March 15 and September 15 of each year. Management believes that this availability, together with cash flow from operations, will be adequate to meet our current objectives for operations, research and development, capital additions for manufacturing and distribution, plant and equipment, information technology systems and acquisitions of reasonable proportion to our existing total available capital for the next twelve months and beyond.
Previous wording
At September 30, 2024, we had available $1.63 billion in cash, cash equivalents and short-term investments, of which approximately 16% was held in our foreign subsidiaries. The amount of funds held in the United States can fluctuate due to the timing of receipts and payments in the ordinary course of business and due to other reasons, such as acquisitions and borrowings. As part of our ongoing liquidity assessments, we regularly monitor the mix of domestic and foreign cash flows (both inflows and outflows).
Current wording
At March 31, 2025, we had available $1.66 billion in cash, cash equivalents and short-term investments, of which approximately 18% was held in our foreign subsidiaries. The amount of funds held in the United States can fluctuate due to the timing of receipts and payments in the ordinary course of business and due to other reasons, such as acquisitions and borrowings. As part of our ongoing liquidity assessments, we regularly monitor the mix of domestic and foreign cash flows (both inflows and outflows).
Previous wording
Net cash provided by operations was $331.0 million and $293.9 million for the nine months ended September 30, 2024 and 2023, respectively. The increase in operating cash flows was primarily due to lower cash paid to suppliers and employees partially offset by lower cash received from customers, higher income tax paid, higher payments for foreign exchange contracts, and lower dividend proceeds.
Current wording
Net cash provided by operations was $129.9 million and $69.8 million for the three months ended March 31, 2025 and 2024, respectively. The increase in operating cash flows was primarily due to lower cash paid to suppliers and employees, partially offset by higher payments for (compared to proceeds from) foreign exchange contracts.
Previous wording
Net cash used in investing activities was $129.7 million and $52.0 million for the nine months ended September 30, 2024 and 2023, respectively. The increase in cash used in investing activities was primarily due to the timing of our purchases, maturities and sales of marketable securities and investments, and higher payments for acquired in-process research and development and capital expenditures.
Current wording
Net cash provided by investing activities was $2.9 million compared to net cash used for investing activities of $43.1 million for the three months ended March 31, 2025 and 2024, respectively. The change is primarily due to the timing of our purchases, maturities and sales of marketable securities and investments.
Previous wording
Net cash used in financing activities was $192.6 million and $225.0 million for the nine months ended September 30, 2024, and 2023, respectively. The decrease in net cash used in financing activities was primarily attributable to lower payments for purchases of treasury stock.
Current wording
Net cash used in financing activities was $97.7 million and $0.0 million for the three months ended March 31, 2025, and 2024, respectively. The increase in net cash used in financing activities was primarily attributable to higher payments for purchases of treasury stock.
Previous wording
During the third quarter of 2024, we repurchased 330,381 shares of Class A common stock for $97 million under our 2023 Share Repurchase Program. We designated these repurchased shares as treasury stock. As of September 30, 2024, $577.1 million remained available for repurchases under the 2023 Share Repurchase Program.
Current wording
During the first quarter of 2025, we repurchased 399,295 shares of Class A common stock for $100.9 million under our 2023 Share Repurchase Program. We designated these repurchased shares as treasury stock. As of March 31, 2025, $476.2 million remained available for repurchases under the 2023 Share Repurchase Program.
Previous wording
We did not adopt any new accounting pronouncements during the three and nine months ended September 30, 2024.
Current wording
We did not adopt any new accounting pronouncements during the three months ended March 31, 2025.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Foreign currency exchange (gains) losses, net consist primarily of foreign currency transaction gains and losses on intercompany net receivables and payables and the change in fair value of our forward foreign exchange contracts used to manage our foreign currency exchange risk. Foreign currency exchange losses, net was $1.6 million for the third quarter of 2024 compared to foreign currency exchange gains, net of $1.7 million for the third quarter of 2023. Gains and losses are primarily due to the estimating process inherent in the timing of product shipments and intercompany debt payments, market volatility, and the change in the fair value of our foreign exchange contracts.
Previous report — wording carried elsewhere
Our effective income tax rate was 24.2% and 22.5% for the third quarter of 2024 and 2023, respectively. The effective tax rate reported in these periods was primarily affected by the accounting treatment of our equity securities. The difference in the rate is primarily driven by geographical mix of earnings.
Previous report — wording carried elsewhere
Results of Operations -- Sales, Margins and Expenses
Previous report — wording carried elsewhere
Consolidated gross margins were 54.6% for the first nine months of 2024 compared to 53.3% for the first nine months of 2023. Gross margins for the Life Science segment for the first nine months of 2024 increased by approximately 0.5 percentage points from the same period last year. The increase in gross margin was primarily driven by product mix and cost control measures partially offset by lower sales volume and higher material costs. Gross margin for the Clinical Diagnostics segment for the first nine months of 2024 increased by approximately 2.2 percentage points from the same period last year. The increase in gross margins was primarily driven by higher sales volume, favorable product mix, and cost control measures, partially offset by higher material costs.
Previous report — wording carried elsewhere
Interest expense for the first nine months of 2024 and 2023 was $36.7 million and $37.1 million, respectively, which primarily consisted of interest expense related to the $1.2 billion Senior Notes.