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Here are 1-2 brief analogies to describe Varex Imaging (VREX):

• Intel for X-ray machines: Varex provides the essential, high-tech components, particularly X-ray tubes, that are critical for medical, industrial, and security X-ray imaging systems, much like Intel provides the core processors for computers.
• Sony for X-ray image sensors: Varex is a leading independent supplier of digital detectors, which are the specialized 'eyes' or image sensors for X-ray equipment, similar to how Sony supplies image sensors for cameras and other devices.

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• X-ray Tubes: These electromechanical devices generate X-rays for use in medical diagnostic and therapeutic procedures, industrial inspection, and security screening applications.
• Digital Detectors (Flat Panel Detectors): These devices convert X-ray images into high-quality digital data, widely used across various imaging modalities for medical, industrial, and security purposes.

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Varex Imaging Corporation (VREX) primarily sells to other companies (B2B) rather than directly to individuals. Their products, such as X-ray tubes and digital detectors, are critical components integrated into larger systems by Original Equipment Manufacturers (OEMs) in various industries.

While Varex Imaging does not typically disclose the specific names of all their individual OEM customers due to competitive reasons, they have historically indicated that a significant portion of their revenue comes from a relatively small number of large medical device manufacturers. These OEMs integrate Varex components into their medical diagnostic imaging systems (e.g., CT scanners, mammography systems, fluoroscopy systems), industrial inspection equipment, and security screening solutions.

Based on industry analysis and common knowledge about the medical imaging market, major players who would be potential customers for Varex's components include, but are not limited to, global medical technology companies. However, Varex's filings typically discuss customer concentration rather than naming specific customers. For example, their 10-K filings often state that a certain percentage of their revenue comes from their largest customers without naming them.

Therefore, we cannot definitively list specific major customer companies by name and symbol directly from Varex's public disclosures as they do not provide this level of detail. Instead, their major customers are large Original Equipment Manufacturers (OEMs) operating in the following sectors:

• Medical Imaging Systems: Manufacturers of diagnostic imaging equipment for hospitals and clinics (e.g., CT, MRI (though less direct with Varex's primary offerings), mammography, fluoroscopy, surgical imaging).
• Industrial Inspection Systems: Companies producing equipment for non-destructive testing and quality control in various industries.
• Security Screening Systems: Manufacturers of X-ray-based security systems for airports, customs, and critical infrastructure.

These OEMs are the direct customers, and they, in turn, sell the complete systems to hospitals, clinics, manufacturing facilities, and government agencies worldwide.

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Sunny S. Sanyal, Chief Executive Officer & President

Mr. Sanyal has over 25 years of experience in senior leadership roles in healthcare technology and services. Prior to Varex Imaging, he served as CEO of T-System, Inc., a privately held company providing information technology solutions and services for hospital emergency departments. He also held leadership positions as President of Varian Medical Systems' Imaging Components Division, President of McKesson Provider Technologies, and various executive roles at GE HealthCare and Accenture. T-System, a company he previously led as CEO, was noted in a press release alongside a significant technology-focused private equity fund (Francisco Partners), suggesting potential private equity backing for companies he managed.

Shubham Maheshwari, Chief Financial Officer

Mr. Maheshwari brings over 20 years of experience in finance with private and public high-tech companies. Before joining Varex, he served as CFO at SiFive, Inc., a company backed by venture capital firms. He was also the CFO and COO of Veeco Instruments Inc. for six years. Earlier in his career, he was Senior Vice President of Finance for Spansion, Inc., where he played a role in guiding the company through its restructuring and subsequent IPO in 2010. At KLA-Tencor Corp., he gained extensive experience working on over $1 billion in acquisition transactions.

Kimberley E. Honeysett, Senior Vice President, Chief Legal Officer, General Counsel & Corporate Secretary

Ms. Honeysett has served as Senior Vice President, Chief Legal Officer, General Counsel, and Corporate Secretary at Varex Imaging Corporation since January 2017. She was instrumental in the spin-off of Varex Imaging from its parent company, Varian Medical Systems, in 2017, where she had served for over a decade in various legal roles, including Chief Counsel for Corporate Services. She also chairs the supervisory board at MeVis Medical Solutions AG, a publicly traded Varex affiliate.

Karen Aranki, Chief Human Resources Officer

Ms. Aranki became the Chief Human Resources Officer for Varex Imaging Corporation in 2023. She possesses over 27 years of extensive experience in Corporate Human Resources, with a focus on elevating organizational performance and leading companies through growth and transformation. Prior to Varex, she was the Global VP of HR and Communications at Honeywell Aerospace, where she led a large-scale reorganization and restructuring. Her career also includes HR leadership positions at Motorola, Freescale Semiconductor, and Schneider Transportation.

Andrew J. Hartmann, Senior Vice President & General Manager, X-ray Detectors

Mr. Hartmann currently holds the position of Senior Vice President and General Manager, X-ray Detectors at Varex Imaging Corporation. He has significant business expertise in medical imaging devices, with over 30 years of global experience in sales, marketing, and business operations within the radiology sector. His career includes senior global management roles at companies such as Philips, Carestream, and Siemens. He also serves on the board of Micro-X.

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The most significant risk stems from customer concentration and intense competition within its markets. Varex Imaging derives a substantial portion of its revenue from a limited number of original equipment manufacturer (OEM) customers. For instance, its largest customer, Canon, accounted for approximately 18% of total revenue in fiscal years 2024, 2023, and 2022, with the top ten customers collectively representing over half of its revenue during those periods. A reduction in orders from these critical customers could materially impact the company's sales and financial results. Furthermore, Varex Imaging competes directly with some of its OEM customers, such as Canon and Philips Healthcare, who also produce X-ray tubes, and faces growing competition from emerging manufacturers, particularly in China.

Secondly, macroeconomic, geopolitical, and trade-related uncertainties pose considerable risks. Approximately 70% of Varex Imaging's revenue originates from outside the United States, exposing the company to fluctuations in foreign currency exchange rates, diverse political environments, and varying regulatory frameworks. Ongoing geopolitical tensions and the impact of the U.S.-China trade war, including tariffs and changes in import/export policies, have already negatively affected operations and profitability. Economic instability and policy reforms worldwide could further impact demand for the company's products.

Finally, supply chain disruptions and escalating costs represent a notable risk. Varex Imaging has experienced challenges with its supply chain and logistics, leading to cost increases and difficulties in obtaining essential components. The company's reliance on a limited number of suppliers for key components exacerbates these issues, and ongoing inflation and material shortages could continue to drive up costs and cause production delays, ultimately impacting profit margins.

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The rapid emergence and adoption of photon-counting computed tomography (CT) technology poses a clear emerging threat. Varex Imaging is a leading independent manufacturer of X-ray tubes and digital detectors for CT systems. Photon-counting CT represents a significant technological shift from traditional energy-integrating detectors, offering superior image quality, spectral information, and potentially lower radiation doses. While Varex is actively developing photon-counting detector technology and associated tubes, failure to maintain technological leadership or secure significant market share in this rapidly evolving segment, or if competitors (both other component manufacturers and vertically integrated system OEMs) develop superior proprietary photon-counting solutions, could erode Varex's market position as a key component supplier for the next generation of high-end CT systems.

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Varex Imaging Corporation (VREX) operates in several key addressable markets for its main products and services, primarily X-ray tubes, digital detectors, and imaging software, which are utilized across medical, industrial, and security imaging applications.

• X-ray Tubes: The global X-ray tube market was valued at approximately USD 3.20 billion in 2024. It is projected to grow to USD 4.83 billion by 2034, with a compound annual growth rate (CAGR) of 4.20% during the forecast period. Other estimates place the global market at USD 3.63 billion in 2025, expected to reach USD 4.45 billion by 2030, growing at a CAGR of 4.19%. North America is expected to dominate this market due to advanced healthcare infrastructure.

• Medical X-ray Detectors: The global medical X-ray detectors market was valued at USD 2.44 billion in 2024 and is expected to reach USD 3.66 billion by 2032, at a CAGR of 5.20%. Another report estimates the global X-ray detectors market, which includes medical and dental applications, at USD 4 billion in 2024, projected to reach USD 7.1 billion in 2034, growing at a CAGR of 6% from 2025 to 2034. The broader X-ray detectors market, encompassing medical, dental, security, and industrial applications, is estimated at USD 4.28 billion in 2025 and is expected to reach USD 5.83 billion by 2030, at a CAGR of 6.4%. North America held the largest revenue share for X-ray detectors in 2024.

• Industrial X-ray Imaging: The global industrial X-ray market size was valued at USD 3.37 billion in 2024 and is expected to reach USD 5.84 billion by 2032, with a CAGR of 7.10%. The industrial X-ray imaging market, more broadly, was valued at USD 19.15 billion in 2024 and is projected to reach USD 29.93 billion by 2030, growing at a CAGR of 7.72%. The industrial radiography market specifically is estimated to be USD 0.8 billion in 2025 and is projected to reach USD 1.6 billion by 2035, with a CAGR of 7.9%.

• Computed Tomography (CT) Devices/Scanners: The global computed tomography devices market size was valued at USD 7.36 billion in 2024 and is expected to reach USD 12.41 billion by 2032, at a CAGR of 6.76%. Another source states the global CT scanner market size was estimated at USD 6.9 billion in 2024, with expectations to grow from USD 7.3 billion in 2025 to USD 12 billion by 2034 at a CAGR of 5.7%. North America is expected to dominate the computed tomography devices market, holding the largest market share.

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Here are 3-5 expected drivers of future revenue growth for Varex Imaging (VREX) over the next 2-3 years:

1. New Product Innovation and Development: Varex Imaging consistently invests in research and development, evidenced by increased R&D spending. The company continues to launch new products, such as the LUMEN HD and LUMEN HD Pro digital radiography detectors introduced in December 2024, which are designed to meet evolving healthcare imaging demands. Additionally, progress in photon counting technology is seen as a future growth area.
2. Growth in the Industrial Segment: The Industrial segment has demonstrated revenue growth, primarily fueled by increased sales of security inspection products. A significant $25 million order for high-energy cargo and vehicle inspection systems from an international customer in May 2025 underscores the strong demand and growth opportunities within this sector, particularly in global port and border security applications.
3. Recovery and Long-Term Opportunities in the China Medical Market: Despite recent challenges and a decline in medical segment revenues, Varex remains optimistic about long-term opportunities in China. Management has noted improvements, with medical revenue in China performing better than expected in Q3 2025, and anticipates a recovery in the medical imaging market in China.
4. Market Expansion into Emerging Regions, such as India: Varex is actively pursuing market expansion, with a particular focus on India. This expansion strategy is expected to contribute to future revenue growth and help offset challenges faced in other medical segments.

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Share Repurchases

• Varex Imaging reported share repurchases of approximately $2 million in fiscal year 2021, $2 million in fiscal year 2022, $1 million in fiscal year 2023, and $3 million in fiscal year 2024.

Share Issuance

• The number of common shares outstanding increased from approximately 39.5 million as of November 8, 2021, to 40.5 million as of November 8, 2023, and further to 41.1 million as of November 14, 2024.
• As of August 1, 2025, there were approximately 41.5 million shares of common stock outstanding.
• The company's Amended Employee Stock Purchase Plan (ESPP) was updated in November 2021, increasing the shares available for issuance under the plan by 800,000.

Outbound Investments

• Varex holds a 40% ownership interest in dpiX LLC, a major supplier of amorphous silicon-based thin film transistor arrays.
• The company maintains a 50% interest in VEC Imaging GmbH & Co. KG, a joint venture focused on developing technology for X-ray imaging components, with equity contributions totaling $5.1 million as of December 31, 2021.
• Varex also holds a 75% interest in Varex Imaging Arabia LLC, a joint venture in Saudi Arabia, and a minority interest in another X-ray imaging components technology company.

Capital Expenditures

• Capital expenditures were approximately $26 million in fiscal year 2021, $27 million in fiscal year 2022, $21 million in fiscal year 2023, and $21 million in fiscal year 2024.
• Expected capital expenditures for fiscal year 2025 are approximately $15 million.
• The primary focus of capital expenditures is on continuous investment in research and development for innovation, improving product performance and quality, and reducing the cost of imaging components, including the development of smaller footprint linear accelerators, improvements to tube life and stability, and reductions of tube noise.