On this page of StockholderLetter.com we present the latest annual shareholder letter from OSI SYSTEMS INC — ticker symbol OSIS. Reading current and past OSIS letters to shareholders can bring important insights into the investment thesis.

 •  10/22/2025 Letter Continued (Full PDF)
 •  10/26/2023 OSIS Stockholder Letter
 •  10/25/2024 OSIS Stockholder Letter
 •  More "Electronic Equipment & Products" Category Stockholder Letters
 •  OSIS Benford's Law Stock Score = 78

OSIS Shareholder/Stockholder Letter Transcript:

ADVANCING
PROTECTION IN
A CONNECTED
WORLD
ANNUAL
REPORT
2025

OSI Systems, Inc. provides specialized electronic systems and
components that meet the critical needs of the homeland security,
healthcare, defense, and aerospace industries.
FINANCIAL HIGHLIGHTS (June 30th fiscal year end)
25%
20%
$1.7B
SALES BY
DIVISION
70%
Fiscal 2025 Sales
25%
SALES BY
GEOGRAPHY
10%
17%
33%
Security
Optoelectronics
United States
Healthcare
EMEA
SALES
NON-GAAP EPS
$1,539M
$1,183M
FY 2022
9.36
$1,713M
8.13
$1,278M
FY 2023
Other Americas
APAC
FY 2024
FY 2025
5.81
6.21
FY 2022
FY 2023
FY 2024
FY 2025
RECONCILIATION OF GAAP TO NON-GAAP EPS
DILUTED EPS
GAAP basis
Impairment, restructuring, and other charges
Amortization of acquired intangible assets
Non-cash interest expense
Gain from disposition of property
Tax effect of the above adjustments
Discrete income tax items
Non-GAAP basis


FY 2022
6.45
0.42
0.75
0.03
(1.53)
0.08
(0.39)
5.81


FY 2023
5.34
0.44
0.87
0.03
(0.30)
(0.17)
6.21


FY 2024
7.38
0.37
0.97

(0.32)
(0.27)
8.13


FY 2025
8.71
0.31
1.05

(0.32)
(0.39)
9.36

This year also marked my first as CEO, and I am highly energized by the
opportunity to lead this exceptional organization. It has been a dynamic
and rewarding year, and the talent, resilience, and commitment across our
global teams is inspiring. I look forward to building on this success as we
chart the next phase of OSI Systems    growth.
We achieved record fiscal 25 revenues of $1.713 billion, up 11% year-overyear, and delivered record non-GAAP EPS of $9.36, a 15% increase from the
prior year. These results reflect the strength of our diversified portfolio and
our leadership position in the marketplace.
Our Security division continued to lead the way, with revenues growing
14.7%. This performance was fueled by broad-based demand across
aviation, ports, borders, and critical infrastructure, as well as by the
strategic acquisition, made earlier during the fiscal year, in the radio
frequency (RF) technology space, which added capabilities in ground-based
radar surveillance applications. We have received numerous key contracts
in these areas, which highlight our ability to deliver effective solutions to
global customers.
DEAR FELLOW
STOCKHOLDERS,
I am pleased to share
highlights from another
record-breaking fiscal
year for OSI Systems in
2025. We continued our
momentum by strong
execution, innovation,
and strategic growth
across our business
segments.
Looking ahead, we anticipate substantial opportunities arising from the
One Big Beautiful Bill Act, which unlocks significant funding for U.S. border
security, infrastructure protection, and national defense. With ample
funding earmarked for non-intrusive inspection technologies, OSI Systems
is well-positioned to support these initiatives and potentially benefit from
additional spending outlined for major events that require robust security
infrastructure.
Our Optoelectronics and Manufacturing division delivered another record
year for both revenues and profits with significant order awards from OEMs
in the healthcare and defense electronics sectors. Our extensive global
infrastructure, including manufacturing facilities across North America,
Europe, and Asia, has enhanced our supply chain agility, improved overall
operational efficiencies, and positioned us to capitalize on diverse market
opportunities in this segment.
And finally, although our Healthcare division encountered some challenges
this year, the steadfast commitment to innovation drives us forward.
We   ve strengthened our team by upgrading talent and are investing in a
next-generation platform to drive future capabilities. This, combined with
operational improvements, sets the stage for enhanced performance in the
year ahead.
With fiscal year 2026 underway, our record $1.8 billion year-end backlog and
diverse pipeline position us for continued growth and success.
I would like to express my thanks to our employees whose dedication to
excellence is the heartbeat of our success; to our loyal customers and
partners whose unwavering trust propels us forward; and to our stockholders
for their steadfast support. I look forward to our journey ahead.
Sincerely,
AJAY MEHRA
President and Chief Executive Officer
OSI SYSTEMS, INC. 2025 ANNUAL REPORT
1

SECURITY SOLUTIONS
FOR A SAFER WORLD
Our Security division plays a vital role
in global safety, delivering innovative
solutions that help to protect people
and infrastructure across the globe,
even in the most dynamic and
high-risk environments. From core
markets, such as airports, seaports,
and land borders, to premier global
sporting events and high-threat
facilities, we are a trusted leader
in providing end-to-end security
inspection solutions.
Customers rely on our experience
and expertise to address complex
security challenges, including
combating terrorism, drug and
weapon smuggling, and trade fraud.
2
Our broad portfolio of screening
solutions combines advanced
detection technologies with
sophisticated threat identification
algorithms to deliver critical
assistance to security professionals
worldwide. We recently added a
business that brings critical radio
frequency (RF) solutions for military
surveillance applications.
We design our solutions to meet
demanding operational requirements
while delivering exceptional value.
Our comprehensive screening
solutions perform high-speed
threat and contraband detection
through CONOPS design, advanced
inspection technology, integration
with information systems, and
recurring training.

Hold Baggage Screening
Cargo and Vehicle Inspection
Baggage and Parcel Inspection
People Screening
Radiation Detection
Trace Detection
RF Surveillance
Optical Inspection
OSI SYSTEMS, INC. 2025 ANNUAL REPORT
3



 10/22/2025 Letter Continued (Full PDF)