Is Masimo's (MASI) Revenue Growth Amid a Shift to Net Loss Altering Its Investment Case?

• Masimo Corporation recently reported its third quarter 2025 results, with revenue rising to US$371.5 million from US$343.3 million a year earlier, but reversing to a net loss of US$100.4 million from a net income of US$9.8 million.
• This earnings update highlights a mixed performance, with sales growth accompanied by a significant swing from profit to loss over the period.
• We'll explore how Masimo’s revenue increase, alongside a move to net loss, could shift the outlook for its investment narrative.

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Masimo Investment Narrative Recap

To justify holding Masimo stock, investors need to believe in the company’s ability to leverage innovation and expand into new monitoring markets, despite swings in profitability. The latest earnings report, which showed increased revenue but a significant net loss, does not materially shift the near-term catalyst of advancing product adoption, but does highlight ongoing risks related to cost pressures and margin compression.

Among recent announcements, the multi-year partnership renewal with Royal Philips stands out, as it reinforces Masimo’s commitment to integrating its monitoring technologies within major hospital systems, a key factor as the company seeks to drive revenue from new segments. Sustaining growth in these high-opportunity categories will remain central, especially as recent results intensify the focus on margin sustainability and the pace of contract wins.

Yet, contrasting the company’s product advances, investors should not overlook the risk that continued cost headwinds, especially from tariffs and shifting sales models, could further pressure Masimo’s...

Read the full narrative on Masimo (it's free!)

Masimo's outlook anticipates $1.8 billion in revenue and $293.5 million in earnings by 2028. This scenario implies a 5.1% annual decline in revenue and an earnings increase of $563.2 million from the current loss of $-269.7 million.

Uncover how Masimo's forecasts yield a $187.57 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Three community fair value estimates for Masimo range from US$137.02 to US$259.65, underscoring major differences in growth outlooks among Simply Wall St Community members. With persistent margin risk due to tariffs and cost pressures in focus, you can compare a wide range of market views and see how your expectations align.

Explore 3 other fair value estimates on Masimo - why the stock might be worth just $137.02!

Build Your Own Masimo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Masimo research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Masimo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Masimo's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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