Company: CRL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001100682-25-000043
Chunk: 37

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 37
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

consolidation charges; partially offset by an increase in cost of revenue related to the amortization of an inventory step up and certain biological assets from the Noveprim acquisition compared to the corresponding period in 2024.

DSA

Nine Months EndedSeptember 27, 2025September 28, 2024$ change% changeImpact of FX(in thousands, except percentages)Revenue$1,811,323 $1,847,931 $(36,608)(2.0)%0.5 %Cost of revenue (excluding amortization of intangible assets)1,250,162 1,246,560 3,602 0.3 %Selling, general and administrative181,829 174,598 7,231 4.1 %Amortization of intangible assets39,446 47,122 (7,676)(16.3)%Operating income$339,886 $379,651 $(39,765)(10.5)%1.5 %Operating income % of revenue18.8 %20.5 %(170) bps

DSA revenue decreased $36.6 million primarily due to lower volume driven by continued cautious client spending as a result of the current demand environment, partially offset by the effect of changes in foreign currency exchange rates.

DSA operating income decreased $39.8 million compared to the corresponding period in 2024. DSA operating income as a percentage of revenue for the nine months ended September 27, 2025 was 18.8%, a decrease of 170 bps from 20.5% for the corresponding period in 2024. Operating income and operating income as a percentage of revenue decreased primarily due to the lower revenue described above, increased restructuring activities, including asset impairments and site consolidation charges, and certain third-party legal costs incurred in connection with the investigations by the U.S. government into the non-human primate supply chain; partially offset by lower severance costs and a decrease in amortization expense, as compared to the corresponding period in 2024.

Manufacturing

Nine Months EndedSeptember 27, 2025September 28, 2024$ change% changeImpact of FX(in thousands, except percentages)Revenue$570,014 $574,389 $(4,375)(0.8)%0.7 %Cost of revenue (excluding amortization of intangible assets)326,967