QuidelOrtho Corp Liquidation Value

QuidelOrtho (QDEL) shows deeply negative liquidation recovery across all MFFAIS metrics: cash liquidation value of -$977M, liquid liquidation value of -$618M, and operating liquidation value of -$6M as of the Q1 2026 period end (March 29, 2026). The recovery posture is structurally impaired by the combination of a massive intangible asset base, heavy funded debt, and an operating loss profile.

Asset side: Total assets of $5.63B are dominated by intangibles of $2.52B (net of $942M accumulated amortization) and PP&E net of $1.34B. Under liquidation haircuts, intangibles receive zero recovery and PP&E receives 50-70% at best, yielding roughly $670M-$940M from PP&E. Cash of $140M recovers at par. Net AR of $360M recovers at 90-95% (~$324M-$342M). Inventory of $611M current plus $13M noncurrent at 60% yields ~$374M. Prepaid and other current assets of $233M recover near zero in wind-down. Total haircutted asset pool is approximately $1.5B-$1.9B.

Liability side stays at face value: Total debt (gross) of $2.69B per DebtAndCapitalLeaseObligations, plus $963M current liabilities, plus $2.46B long-term debt and lease stack, plus $112M other noncurrent liabilities, plus $87M deferred tax liabilities. Total liabilities per balance sheet: $3.78B. The gap between recoverable assets (~$1.5B-$1.9B) and face-value liabilities ($3.78B) produces equity recovery deep in negative territory, consistent with the MFFAIS CLV of -$977M.

Key changes versus prior filing (10-K for FY2025 ended December 28, 2025): The Q1 2026 10-Q introduces a new Term Loan B ($1.45B facility, effective August 2025), which was not in the prior credit structure. This materially increased total debt versus the prior credit agreement. Interest expense jumped to $51.1M in Q1 2026 vs. $40.0M in Q1 2025. Cash declined $29.4M to $140.4M. Operating cash flow turned negative at -$33.0M driven by a $72.6M inventory build and $91.8M net loss. A subsequent event (April 17, 2026) added $100M of cash acquisition cost (LEX Diagnostics) plus drawdown of the $100M DDTL Term Loan A, further pressuring the post-period balance sheet. The Optimization Plan ($100M expected cumulative charges through 2027) and SAVANNA Exit continue to convert tangible assets to expense. Filing discusses pension and other post-employment benefits in AOCI but does not separately disclose the projected benefit obligation in XBRL for this 10-Q. Assets held for sale of $32.4M appeared as a new current asset line, likely related to the SAVANNA Exit or facility rationalization.