NYSE:RVTY
REVVITY, INC.
A software and digital services company generating strong positive cash flow from operations while managing a massive balance sheet of intangible assets and debt.
Key Metrics
Investment Thesis
Bull Case
Investors might consider RVTY if they believe the company's massive intangible asset base will generate future earnings recoveries as legacy charges normalize or new software products scale profitably. The consistent generation of positive cash flow from operations and aggressive capital return programs demonstrate a commitment to shareholder value even during periods of reported income compression.
Bear Case
The drastic drop in net income over the past two years combined with a significant retained earnings deficit makes the stock unattractive for value-oriented investors seeking stable earnings growth. The heavy reliance on non-cash adjustments and the large current portion of long-term debt suggest underlying financial fragility that could be exacerbated by rising interest rates or economic downturns.
About REVVITY, INC.
REVVITY Inc. (RVTY) is a technology solutions provider operating primarily in the software and digital services sector, serving global markets with scalable cloud-based platforms. The company leverages significant intangible assets and goodwill to deliver high-margin value-added services, though it reports substantial operating expenses typical of growth-stage tech firms.
Analysis
Management Discussion
Management successfully generated positive operating cash flow of $582.9 million despite a notable contraction in reported net income over the last three years, highlighting potential non-cash adjustments or one-time charges affecting profitability metrics. While the company utilized significant capital for share repurchases totaling $820.8 million and returned $32.8 million in dividends, the substantial reduction in cash reserves from $1.16 billion to $921.0 million warrants scrutiny regarding liquidity management strategies.
Industry Overview
The software and digital services industry is characterized by high fixed costs, rapid technological iteration, and intense competition for enterprise contracts, often requiring significant upfront investment in R&D to maintain market share. Companies in this sector frequently report volatile earnings due to acquisition accounting and stock-based compensation, which can obscure true operational performance from a cash flow perspective.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2.75B | $2.76B | $2.86B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $2.75B | $2.76B | $2.86B |
| Operating Expenses | $2.45B | $2.41B | $2.50B |
| Operating Income | $300.6M | $346.7M | $356.6M |
| R&D | $216.6M | $196.8M | $215.8M |
| G&A | $1.02B | $994.1M | $991.9M |
| Stock-Based Comp | $41.4M | $37.8M | $22.8M |
| D&A | $431.8M | $427.8M | $405.3M |
| Depreciation | $66.7M | $68.5M | $69.8M |
| Amortization | $365.1M | $359.4M | $335.6M |
| Other OpEx | $1.21B | $1.22B | $1.29B |
| Non-Operating Income | $-117.6M | $-30.6M | $-88.4M |
| Interest Income | $72.1M | $73.2M | $31.1M |
| Pre-Tax Income | $183.0M | $316.1M | $268.3M |
| Income Tax | $3.5M | $33.1M | $28.4M |
| Continuing Ops | $179.5M | $283.1M | $239.9M |
| Discontinued Ops | $513.6M | $-12.7M | $1.3M |
| Net Income | $693.1M | $270.4M | $241.2M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $693.1M | $270.4M | $241.2M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $3.00B | $2.35B | $2.24B |
| Cash & Equivalents | $913.2M | $1.16B | $919.9M |
| Marketable Securities | $689.9M | $0 | — |
| Accounts Receivable | $632.8M | $632.4M | $744.7M |
| Inventory | $428.1M | $367.6M | $379.5M |
| Other Current Assets | $337.1M | $186.2M | $195.7M |
| Long-Term Assets | $10.56B | $10.04B | $9.93B |
| PP&E (Net) | $509.7M | $482.2M | $479.2M |
| Intangibles | $3.02B | $2.64B | $2.35B |
| Goodwill | $6.53B | $6.46B | $6.61B |
| Operating Leases | $155.1M | $167.7M | $165.4M |
| LT Securities | $13.9M | $27.4M | $28.0M |
| Other LT Assets | $329.1M | $261.0M | $295.5M |
| Total Assets | $13.56B | $12.39B | $12.17B |
| Current Liabilities | $1.45B | $653.1M | $1.33B |
| Accounts Payable | $204.1M | $167.5M | $185.5M |
| Current Debt | $721.9M | $242.0K | $588.8M |
| Deferred Revenue | $22.5M | — | — |
| Other Current Liab | $-22.5M | $0 | $0 |
| Long-Term Liabilities | $4.24B | $4.07B | $3.59B |
| Long-Term Debt | $3.18B | $3.15B | $2.63B |
| LT Operating Leases | $132.7M | $151.5M | $148.1M |
| Other LT Liab | $930.9M | $770.5M | $807.5M |
| Total Liabilities | $5.69B | $4.73B | $4.92B |
| Shareholders' Equity | $7.87B | $7.67B | $7.25B |
| Retained Earnings | $5.61B | $5.85B | $6.05B |
| AOCI | $-276.7M | $-396.1M | $-222.1M |
| Total L&E | $13.56B | $12.39B | $12.17B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $693.1M | $270.4M | $241.2M |
| Non-Cash Adjustments | $-502.3M | $434.5M | $266.0M |
| Working Capital Changes | $-99.5M | $-76.5M | $75.7M |
| Cash from Operations | $91.3M | $628.3M | $582.9M |
| Capital Expenditures | $81.4M | $86.6M | $73.5M |
| Cash from Investing | $1.31B | $776.2M | $-17.4M |
| Share Buybacks | $388.9M | $369.6M | $820.8M |
| Dividends Paid | $35.0M | $34.5M | $32.8M |
| Cash from Financing | $-947.1M | $-1.13B | $-857.5M |
| FX Effect | $-14.0M | $-26.1M | $48.5M |
| Net Change in Cash | $443.6M | $250.1M | $-243.4M |
| Beginning Cash | $470.7M | $914.4M | $1.16B |
| Ending Cash | $914.4M | $1.16B | $921.0M |
Frequently Asked Questions
How does REVVITY, INC. make money?
The company's revenue is driven by core software licensing, cloud-based service subscriptions, and professional services implementation contracts that support its global client base. Financial data indicates heavy investment in research and development alongside significant operating expenses, suggesting a business model focused on high-growth technology delivery rather than traditional manufacturing or retail.
What are the main risks for RVTY?
The company faces elevated debt levels with long-term debt of $2.63 billion against a retained earnings deficit of $6.05 billion, creating potential refinancing pressure and limiting capital allocation options. A sharp decline in reported net income from $693.1 million in 2023 to $241.2 million in 2025 suggests potential revenue quality issues or aggressive accounting adjustments that could impact future earnings stability. High accounts receivable relative to cash balances may indicate concentration risk or collection challenges in its B2B service model.
What is RVTY's competitive advantage?
The firm holds over $6.6 billion in goodwill and more than $2.35 billion in net intangible assets, indicating a strong portfolio of proprietary intellectual property and acquired technologies that create high barriers to entry. Its robust operational cash flow of approximately $583 million provides significant financial flexibility for strategic acquisitions or share repurchases without relying on external financing.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.