Varex Imaging Corp (NASDAQ: VREX) is a medical and industrial imaging components company that designs, manufactures, and sells X-ray tubes, flat panel and photon counting detectors, linear accelerators, and image-processing software. Revenue comes primarily from transactional component sales to OEM customers who integrate Varex parts into their X-ray imaging systems, with additional revenue from service agreements and direct sales to independent service companies and distributors. Varex operates two segments, Medical and Industrial, and describes itself as one of the largest independent global manufacturers of X-ray imaging components, producing over two million components annually (per FY2025 10-K). The top ten customers accounted for approximately 52% of revenue in FY2025, with one customer representing 18.0% of revenue, all within the Medical segment. Sales of medical X-ray tubes imported into China represented approximately 10% of total revenue in FY2025. The company recorded a goodwill impairment charge against its Medical reporting unit in FY2025, driven by a sustained stock price decline and downward forecast revisions.

Revenue model

Transactional product sales to OEM customers, independent service companies, and distributors, supplemented by long-term service agreements, particularly for Linatron linear accelerators in the Industrial segment. Components are often customized for specific customer equipment, creating repeat replacement and service revenue once designed in.

Products and services

X-ray tubes (including CT tubes and inserts), flat panel detectors, photon counting detectors, Linatron X-ray linear accelerators, non-intrusive cargo inspection systems, computed radiography scanners, high voltage connectors, coolers, and proprietary image-processing and detection software. Industrial segment also sells stand-alone X-ray imaging systems.

Customers and end markets

Primarily OEM customers in medical imaging (CT, radiography, and other modalities) and industrial applications including cargo screening at ports and borders, airport baggage screening, and nondestructive testing and inspection. Many medical OEM customers have been Varex customers for over 35 years per the FY2025 10-K. One customer accounted for 18.0% of FY2025 revenue; the top ten customers accounted for 52% of FY2025 revenue.

Value-chain role

Upstream component and sub-assembly supplier to X-ray imaging OEMs. Varex sits between raw materials and finished imaging systems, supplying critical hardware and integrated software that OEMs design into their equipment. Switching costs are high because components are customized and often embedded in regulatory product registrations.

Geographic exposure

Global operations with manufacturing, R&D, and administration across multiple countries. China is a material export market; medical X-ray tubes sold into China represented approximately 10% of total revenue in FY2025. The company targets high-growth regions including China and India per the FY2025 10-K.

Source: SEC 10-K, filed 2025-11-18

Industry: Electronic Components, NEC Peers: Abbott Laboratories Alphatec Holdings Inc CUTERA INC AngioDynamics Inc Butterfly Network Inc Cryoport Inc HESKA CORP LeMaitre Vascular Inc