Charles River Laboratories International, Inc 10-Q for FY2026 Q3
Charles River Laboratories International, Inc. (CRL)
10-Q
2026-11-04
For: 2026-09-26
View Original
Added on
November 04, 2026
About this 10-Q
Charles River Laboratories International, Inc filed this 10-Q on November 4, 2026, covering the quarter ended September 26, 2026 (FY2026 Q3).
Charles River Laboratories International, Inc. reported revenue of $982.7 million, down 2.2%, and operating income of $202.6 million. Net income attributable to common shareholders reached $333.1 million, helped by a $201 million tax benefit. AI summary
Headline figures
Quarter ended September 26, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $982.73M
- down 2.2% from $1B a year earlier
- Net income
- $333.07M
- up 512.0% from net income of $54.42M a year earlier
- Diluted EPS
- $6.86
- up 523.6% from $1.10 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM | |||||
| (Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
FOR THE QUARTERLY PERIOD ENDED September 26, 2026
OR | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
FOR THE TRANSITION PERIOD FROM TO | |||||
Commission File No. 001-15943
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s telephone number, including area code): (781 ) 222-6000
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
| Title of each class | Ticker symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company | |||||||||||
If an emerging growth company, indicate by a check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
As of October 24, 2026, there were 47,917,467 shares of the Registrant’s common stock outstanding.
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 26, 2026
TABLE OF CONTENTS
| Item | Page | |||||||
| PART I - FINANCIAL INFORMATION | ||||||||
| 1 | Financial Statements | |||||||
Condensed Consolidated Statements of Income (Unaudited) for the three and nine months ended September 26, 2026 and September 27, 2025 | ||||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and nine months ended September 26, 2026 and September 27, 2025 | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) as of September 26, 2026 and December 27, 2025 | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 26, 2026 and September 27, 2025 | ||||||||
the three and nine months ended September 26, 2026 and September 27, 2025 | ||||||||
| 2 | ||||||||
| 3 | ||||||||
| 4 | ||||||||
| PART II - OTHER INFORMATION | ||||||||
| 1 | ||||||||
| 1A | ||||||||
| 2 | ||||||||
| 5 | ||||||||
| 6 | ||||||||
1
Special Note on Factors Affecting Future Results
This Quarterly Report on Form 10-Q contains forward-looking statements regarding future events and the future results of Charles River Laboratories International, Inc. that are based on our current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expect,” “anticipate,” “target,” “goal,” “project,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “likely,” “may,” “designed,” “would,” “future,” “can,” “could,” and other similar expressions which are predictions of, indicate future events and trends or which do not relate to historical matters, are intended to identify such forward-looking statements. These statements are based on our current expectations and beliefs and involve a number of risks, uncertainties and assumptions that are difficult to predict.
For example, we may use forward-looking statements when addressing topics such as: our expectations regarding the availability of non-human primates (NHPs) and our ability to diversify our NHP supply chain; the outcome of (1) the putative securities class action lawsuit filed against us and certain current/former officers on May 19, 2023, (2) the derivative lawsuit filed against members of the Board of Directors and certain current/former officers on November 8, 2023, and (3) the derivative lawsuit filed against certain current/former members of the Board of Directors and certain current/former officers on August 2, 2024; the timing and impact of the development and implementation of enhanced procedures to reasonably ensure that NHPs we source are purpose-bred; changes and uncertainties in the global economy and financial markets; client demand, particularly future demand for drug discovery and development products and services, including the outsourcing of these services; our expectations with respect to our ability to meet financial targets; the Company’s plans or prospects, expectations and long-term goals associated with our business; the Company's expectations concerning future financial and operating performance, including the Company's commitment to, and ability to create long-term value for shareholders and to successfully execute on our business strategy; our expectations regarding stock repurchases; our ability to timely build infrastructure to satisfy capacity needs and support business growth; our ability to fund our operations for the foreseeable future; the impact of unauthorized access into our information systems, including the timing and effectiveness of any enhanced security and monitoring; present spending trends and other cost reduction activities by our clients; future actions by our management; the outcome of contingencies; changes in our business strategy, business practices and methods of generating revenue; the development and performance of our services and products; market and industry conditions, including competitive and pricing trends and the impact of those conditions, including on our allowances for credit losses; our strategic relationships with leading pharmaceutical and biotechnology companies, venture capital investments, and opportunities for future similar arrangements; our cost structure; our expectations regarding our acquisitions and divestitures, including their impact, terms, projected timing, pricing, and planned funding; our expectations with respect to revenue growth and operating synergies (including the impact of specific actions intended to cause related improvements); the nature, timing and impact of our Create the FutureTM and specific actions intended to improve overall operating efficiencies and profitability (and our ability to accommodate future demand with our infrastructure), including actions to optimize our global footprint, and gains and losses attributable to businesses we plan to close, consolidate, divest or repurpose and the impact of operations and restructuring actions (including as estimated on an annualized basis); our expectations with respect to study cancellation rates and the impact of such cancellations; our expectations with respect to tax rates and benefits, including the impact of tax legislation on our operations; changes in our expectations regarding future stock option, restricted stock, performance share units and other equity grants to employees and directors; expectations with respect to foreign currency exchange; assessing (or changing our assessment of) our tax positions for financial statement purposes; our liquidity; the impact of newly issued accounting pronouncements on our consolidated financial statements and related disclosures; and the impact of litigation, including our ability to successfully defend litigation against us. In addition, these statements include the impact of economic and market conditions on us and our clients, the effects of our cost-saving actions and the steps to optimize returns to shareholders on an effective and timely basis; and our ability to withstand the current market conditions.
Forward-looking statements are predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document, or in the case of statements incorporated by reference, on the date of the document incorporated by reference. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 27, 2025 (2025 Form 10-K), under the sections entitled “Our Strategy,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in this Quarterly Report on Form 10-Q, under the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors,” in our press releases, and in our other filings with the Securities and Exchange Commission. Except to the extent required by applicable law, we do not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or risks. New information, future events, or risks may cause the forward-looking events we discuss in this report not to occur.
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| Service revenue | $ | $ | $ | $ | |||||||||||||||||||
| Product revenue | |||||||||||||||||||||||
| Total revenue | |||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Cost of services provided (excluding amortization of intangible assets) | |||||||||||||||||||||||
| Cost of products sold (excluding amortization of intangible assets) | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Amortization of intangible assets | |||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Provision (benefit) for income taxes | ( | ( | |||||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | |||||||||||||||||||||||
| Net income attributable to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per common share | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
| Weighted-average number of common shares outstanding | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
See Notes to Unaudited Condensed Consolidated Financial Statements. | |||||||||||||||||||||||
3
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(in thousands)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
| Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
| Amortization of net loss, settlement losses, and prior service benefit included in total cost for pension and other post-retirement benefit plans | |||||||||||||||||||||||
Other comprehensive income (loss), before income taxes | ( | ( | |||||||||||||||||||||
Less: Income tax expense (benefit) related to items of other comprehensive income | ( | ( | |||||||||||||||||||||
| Comprehensive income, net of income taxes | |||||||||||||||||||||||
| Less: Comprehensive income related to noncontrolling interests, net of income taxes | |||||||||||||||||||||||
| Comprehensive income attributable to Charles River Laboratories International, Inc., net of income taxes | $ | $ | $ | $ | |||||||||||||||||||
See Notes to Unaudited Condensed Consolidated Financial Statements. | |||||||||||||||||||||||
4
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share amounts)
| September 26, 2026 | December 27, 2025 | |||||||||||||
| Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Trade receivables and contract assets, net of allowances for credit losses of $ | ||||||||||||||
Inventories | ||||||||||||||
Prepaid assets | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, net | ||||||||||||||
| Venture capital and strategic equity investments | ||||||||||||||
| Operating lease right-of-use assets, net | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Deferred tax assets | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
| Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued compensation | ||||||||||||||
Deferred revenue | ||||||||||||||
Accrued liabilities | ||||||||||||||
Other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt, net and finance leases | ||||||||||||||
| Operating lease right-of-use liabilities | ||||||||||||||
Deferred tax liabilities | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies (Notes 2, 12, 14, and 16) | ||||||||||||||
Redeemable noncontrolling interests | ||||||||||||||
Equity: | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Treasury stock, at cost, | ( | |||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total Charles River Laboratories International, Inc. equity | ||||||||||||||
Nonredeemable noncontrolling interest | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | $ | ||||||||||||
See Notes to Unaudited Condensed Consolidated Financial Statements. | ||||||||||||||
5
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| Nine Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| Cash flows relating to operating activities | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Long-lived asset impairments | |||||||||||
| Stock-based compensation | |||||||||||
| Deferred income taxes | ( | ( | |||||||||
| Reversal of an unrecognized tax benefit reserve and related interest and penalties | ( | ||||||||||
| Write down of inventories | |||||||||||
| (Gains) losses and impairments on venture capital and strategic equity investments, net | ( | ||||||||||
| (Gain) loss on sale of assets | ( | ||||||||||
| Provision for credit losses | |||||||||||
| (Gain) loss on divestitures, net | ( | ||||||||||
| Other, net | ( | ||||||||||
| Changes in assets and liabilities: | |||||||||||
| Trade receivables and contract assets, net | ( | ||||||||||
| Inventories | ( | ||||||||||
| Accounts payable | |||||||||||
| Accrued compensation | ( | ||||||||||
| Deferred revenue | ( | ||||||||||
| Customer contract deposits | ( | ||||||||||
| Other assets and liabilities, net | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| Cash flows relating to investing activities | |||||||||||
| Acquisition of businesses and assets, net of cash acquired | ( | ||||||||||
| Capital expenditures | ( | ( | |||||||||
| Purchases of investments and contributions to venture capital investments | ( | ( | |||||||||
| Proceeds from sale of investments | |||||||||||
| Proceeds from surrender of life insurance policies | |||||||||||
| Proceeds from sale of businesses and assets, net | |||||||||||
| Other, net | ( | ||||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Cash flows relating to financing activities | |||||||||||
| Proceeds from long-term debt and revolving credit facility | |||||||||||
| Payments on long-term debt, revolving credit facility, and finance lease obligations | ( | ( | |||||||||
| Proceeds from exercises of stock options | |||||||||||
| Purchase of treasury stock | ( | ( | |||||||||
| Payment of contingent consideration and deferred acquisition consideration | ( | ( | |||||||||
| Purchase of remaining equity interests of other redeemable noncontrolling interest | ( | ||||||||||
| Other, net | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | ( | ||||||||||
| Net change in cash, cash equivalents, and restricted cash | |||||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | |||||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | $ | |||||||||
See Notes to Unaudited Condensed Consolidated Financial Statements. | |||||||||||
6
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (UNAUDITED)
(in thousands)
Redeemable Noncontrolling Interests | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Charles River Laboratories, Inc. Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 27, 2025 | $ | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | — | — | — | ( | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | — | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to noncontrolling interests | ( | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment of redeemable noncontrolling interests to redemption value | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of stock under employee compensation plans | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchase excise tax | — | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 28, 2026 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | ( | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | ( | — | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to noncontrolling interests | ( | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment of redeemable noncontrolling interest to redemption value | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of stock under employee compensation plans | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchase excise tax | — | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 27, 2026 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive (loss) income, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to noncontrolling interests | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment of redeemable noncontrolling interest to redemption value | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of stock under employee compensation plans | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchase excise tax | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
See Notes to Unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (UNAUDITED)
(in thousands)
| Redeemable Noncontrolling Interests | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Charles River Laboratories, Inc. Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 28, 2024 | $ | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment of redeemable noncontrolling interests to redemption value | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of stock under employee compensation plans | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchase excise tax | — | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 29, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment of redeemable noncontrolling interest to redemption value | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to noncontrolling interests | ( | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of stock under employee compensation plans | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 28, 2025 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive (loss) income, net of tax | ( | — | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment of redeemable noncontrolling interest to redemption value | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends to noncontrolling interest | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of stock under employee compensation plans | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury shares | — | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 27, 2025 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
See Notes to Unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
Use of Estimates
Newly Adopted Accounting Pronouncements
In July 2025, the FASB issued Accounting Standards Update (ASU) 2025-05, “Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivables and Contract Assets.” ASU 2025-05 provides a practical expedient to assume that the current conditions as of the balance sheet date do not change for the remaining life of the asset if the expected credit losses were estimated under the reasonable and supportable approach. The ASU was effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods, and if the practical expedient was elected, the amendments in this update should be applied on a prospective basis. The Company’s adoption of this standard on December 28, 2025 on a prospective basis did not have a significant impact on the unaudited condensed consolidated financial statements as of and for the three and nine month periods ended September 26, 2026 or the related disclosures.
Newly Issued Accounting Pronouncements
In September 2025, the FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350 - 40) - Targeted Improvements to the Accounting for Internal-Use Software.” ASU 2025-06 improves the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods, including the methods that entities may use to develop software in the future. The ASU is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments in this ASU may be adopted using either a prospective transition approach, a modified transition approach or a retrospective transition approach. The Company is currently evaluating the impact this new standard will have on the condensed consolidated financial statements and the related disclosures.
In November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses (Subtopic 220-40)” which requires enhanced disclosure of income statement expense categories to improve transparency and provide financial statement users with more detailed information about the nature, amount and timing of expenses impacting financial performance. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The amendments in this ASU may be adopted using the prospective or retrospective methods. The Company is currently evaluating the impact this new standard will have on the related disclosures in the condensed consolidated financial statements.
Summary of Significant Accounting Policies
The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for fiscal year 2025 as filed with the SEC on February 18, 2026.
9
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Consolidation
The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income attributable to noncontrolling interests in its unaudited condensed consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Redeemable noncontrolling interests, where the noncontrolling interest holders have the ability to require the Company to purchase the remaining interests, are classified in the mezzanine section of the unaudited condensed consolidated balance sheets, which is presented above the equity section and below liabilities. Intercompany balances and transactions are eliminated in consolidation.
The Company’s fiscal year is typically based on 52-weeks, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. A 53rd week in the fourth quarter of the fiscal year is occasionally necessary to align with a December 31 calendar year-end.
Segment Reporting
The Company reports its results in three reportable segments: Discovery and Safety Assessment (DSA), Manufacturing Solutions (Manufacturing), and Research Models and Services (RMS).
The Company’s DSA reportable segment includes discovery and safety assessment services. The Company provides regulated and non-regulated DSA services to support the discovery, development, and regulatory-required safety testing of potential new drugs, including in vitro (non-animal), in vivo (in research models) and in silico studies, laboratory support services, including bioanalytical and strategic non-clinical consulting and program management to support product development. In May 2026, the Company sold certain European Discovery Services businesses.
The Company’s Manufacturing reportable segment includes Microbial Solutions, which provides in vitro lot-release testing products, microbial detection products, and species identification services and Biologics Testing (Biologics), which performs specialized testing of biologics. In May 2026, the Company sold the contract development and manufacturing products and services (CDMO) business, reported in the Manufacturing segment.
The Company’s RMS reportable segment includes products and services offered within Research Models, Research Model Services, and Cell Solutions. Research Models includes the commercial production and sale of small research models, as well as the supply of large research models. Research Model Services includes: Insourcing Solutions (IS), which provides colony management of clients’ research operations (including recruitment, training, staffing, and management services) within the clients’ facilities and utilizing the Charles River Accelerator and Development Lab (CRADL™) offerings, which provide vivarium space to clients, Genetically Engineered Models and Services (GEMS), which performs contract breeding and other services associated with genetically engineered models; and Research Animal Diagnostic Services (RADS), which provides health monitoring and diagnostics services related to research models. In May 2026, the Company sold the Cell Solutions business, reported in the RMS segment, which supplied controlled, consistent, customized primary cells and blood components derived from normal and mobilized peripheral blood and bone marrow as well as cells from disease state donors.
2. ACQUISITIONS AND DIVESTITURES .
Fiscal 2026 Acquisitions
PathoQuest SAS
On April 17, 2026, the Company completed the acquisition of an additional 79 % equity interest in PathoQuest SAS (PathoQuest), a provider of next-generation sequencing solutions for manufacturing quality-control testing for biopharmaceutical companies, resulting in a 100 % controlling interest. The total consideration for the PathoQuest acquisition was $67.4 million, net of $0.5 million acquired cash. This amount consists of $62.3 million of cash consideration, $5.6 million representing the fair value for the 21 % strategic equity interest previously owned by the Company, and an offsetting estimated post-closing adjustment for working capital of $0.5 million. The acquisition was funded through a combination of cash on hand and borrowings under the Credit Facility. PathoQuest’s results are reported within the Company’s Manufacturing reportable segment. The Company incurred transaction and integration costs in connection with the acquisition of $1.6 million and $3.5 million for the three and nine months ended September 26, 2026, respectively, which was included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income. Pro forma financial information as well as the disclosure of actual revenue and operating income (loss) have not been presented separately because PathoQuest financial results are not significant to the Company’s consolidated financial results.
10
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
K.F. Cambodia
On January 14, 2026, the Company completed the acquisition of certain assets of K.F. Cambodia Ltd (Cambodian NHP Supplier), a leading supplier of non-human primates (NHPs) located in Cambodia. The preliminary purchase price for the Cambodian NHP Supplier was $507.3 million, consisting of $335.0 million paid at closing and $172.3 million representing the acquisition date fair value of deferred consideration, which is payable upon the satisfaction of certain post-close conditions. During the three and nine months ended September 26, 2026, the Company paid $100.0 million and $170.0 million of deferred consideration, respectively, with the remaining balance of $5 million to be paid as of September 26, 2026. The acquisition was funded through a combination of available cash and proceeds from the Company’s Credit Facility. This business is reported as part of the Company’s DSA reportable segment for NHPs vertically integrated into the DSA supply chain and the RMS reportable segment for those NHPs sold to third party customers. The Company incurred transaction and integration costs in connection with the acquisition of $0.8 million and $13.3 million for the three and nine months ended September 26, 2026, respectively, which was included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income. Pro forma financial information as well as the disclosure of actual revenue and operating income (loss) have not been presented separately because the Cambodian NHP Supplier’s financial results are not significant when compared to the Company’s consolidated financial results.
Purchase Price Information
The preliminary purchase price allocations were as follows:
PathoQuest SAS(1) | Cambodian NHP Supplier(1) | ||||||||||
| April 17, 2026 | January 14, 2026 | ||||||||||
| (in thousands) | |||||||||||
| Trade receivables | $ | $ | |||||||||
| Inventories | |||||||||||
| Other current assets (excluding cash) | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Operating lease right-of-use asset, net | |||||||||||
Goodwill (2) | |||||||||||
| Intangible assets, net | |||||||||||
Other assets (3) | |||||||||||
| Deferred revenue | ( | ||||||||||
| Other current liabilities | ( | ( | |||||||||
| Operating lease right-of-use liabilities | ( | ||||||||||
Other long-term liabilities (4) | ( | ( | |||||||||
| Total purchase price allocation | $ | $ | |||||||||
(1) Purchase price allocation is preliminary and subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed, including certain obligations. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. Measurement period adjustments recorded during the period, as well as the related effects on current period earnings, were immaterial. | |||||||||||
(2) The goodwill resulting from these transactions is primarily attributable to the potential growth of the Company’s segments from new customers introduced to the acquired businesses or synergies to be realized from acquiring an internal supplier servicing the DSA business and the assembled workforce of the acquirees. With the exception of $ | |||||||||||
(3) Other assets acquired resulting from Cambodian NHP Supplier include $ | |||||||||||
(4) Cambodian NHP Supplier other long-term liabilities include pre-acquisition uncertain tax positions of the seller associated with the acquired assets. In the third quarter of 2026, the acquired reserves, which increased to $ | |||||||||||
11
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The definite-lived intangible assets acquired were as follows:
| PathoQuest SAS | ||||||||
| Definite-Lived Intangible Assets | (in thousands) | |||||||
| Client relationships | $ | |||||||
| Developed technology | ||||||||
| Total definite-lived intangible assets | $ | |||||||
| Weighted Average Amortization Life | ||||||||
| Client relationships | ||||||||
| Developed technology | ||||||||
| Total definite-lived intangible assets | ||||||||
Divestitures
The Company routinely evaluates the strategic fit and fundamental performance of its global businesses, divesting operations that do not meet key business criteria. As part of this ongoing assessment, the Company determined that certain capital could be better deployed in other long-term growth opportunities.
Divestiture of Certain European Discovery Services Businesses
On May 22, 2026, the Company sold certain European Discovery Services businesses (European Discovery Divestiture) to IQVIA Inc. (IQVIA) for a purchase price of $126.4 million in cash, net of costs to sell and subject to certain customary closing adjustments. The Company may also earn up to $10.0 million of contingent payments, which are tied to future performance. The contingent payments have been valued at $2.8 million using a discounted probability weighted model. The results of the European Discovery Services businesses were reported in the Company’s DSA reportable segment. During the three and nine months ended September 26, 2026, the Company recorded a pre-tax gain on the divestiture of $1.1 million and $1.4 million, respectively, within Other expense, net on the unaudited condensed consolidated statements of income.
Divestiture of CDMO and Cell Solutions
On May 6, 2026, the Company sold its CDMO and Cell Solutions businesses (CDMO and Cell Solutions Divestiture) to GI Partners (GI) for net cash paid to the buyer of $12.4 million, net of costs to sell and subject to certain customary closing adjustments. Additionally, the Company may be required to fund up to $45.0 million of future EBITDA losses and capital expenditures of the divested businesses to GI over a four-year period, which is expected to be fully used by GI. Conversely, the Company may also earn up to $50.0 million of contingent payments, which are tied to future performance and achievement of milestones. The contingent payments receivable have been valued at $15.7 million using a discounted probability weighted model. The results of the CDMO and Cell Solutions businesses were reported in the Company’s Manufacturing reportable segment and RMS reportable segment, respectively. These businesses and the related assets and liabilities met the criteria for held-for-sale as of March 28, 2026, resulting in a pre-tax loss of $118.0 million recognized for the three months ended March 28, 2026, which represents the excess of its carrying value over the fair value less cost to sell. Upon closing of the sale, a $63.7 million pre-tax loss on divestiture was recognized for the three months ended June 27, 2026. No pre-tax loss was recognized on the divestiture for the three months ended September 26, 2026. The Company recognized the pre-tax loss on divestiture of $181.7 million for the nine months ended September 26, 2026 within Other expense, net on the unaudited condensed consolidated statements of income.
12
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As a result of the divestitures, the Company derecognized the net assets of the European Discovery Divestiture and CDMO and Cell Solutions Divestiture as follows:
European Discovery Divestiture | CDMO and Cell Solutions Divestiture | ||||||||||
| May 22, 2026 | May 6, 2026 | ||||||||||
| (in thousands) | |||||||||||
| Assets | |||||||||||
| Current assets | $ | $ | |||||||||
| Property, plant, and equipment, net | |||||||||||
| Operating lease right-of-use assets, net | |||||||||||
| Goodwill | |||||||||||
| Intangible assets, net | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities | |||||||||||
| Current liabilities | |||||||||||
| Operating lease right-of-use liabilities | |||||||||||
| Long-term liabilities | |||||||||||
| Total liabilities | $ | $ | |||||||||
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by reportable segment and timing of transfer of products or services:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Timing of Revenue Recognition: | |||||||||||||||||||||||
| DSA | |||||||||||||||||||||||
| Services and products transferred over time | $ | $ | $ | $ | |||||||||||||||||||
| Services and products transferred at a point in time | |||||||||||||||||||||||
| Total DSA revenue | |||||||||||||||||||||||
| Manufacturing | |||||||||||||||||||||||
| Services and products transferred over time | |||||||||||||||||||||||
| Services and products transferred at a point in time | |||||||||||||||||||||||
| Total Manufacturing revenue | |||||||||||||||||||||||
| RMS | |||||||||||||||||||||||
| Services and products transferred over time | |||||||||||||||||||||||
| Services and products transferred at a point in time | |||||||||||||||||||||||
| Total RMS revenue | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | |||||||||||||||||||
13
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
| September 26, 2026 | December 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
Assets from contracts with customers | |||||||||||
| Client receivables | $ | $ | |||||||||
| Unbilled revenue | |||||||||||
| Total | |||||||||||
| Less: Allowance for credit losses | ( | ( | |||||||||
| Trade receivables and contract assets, net | $ | $ | |||||||||
| Liabilities from contracts with customers | |||||||||||
| Current deferred revenue | $ | $ | |||||||||
| Long-term deferred revenue (included in Other long-term liabilities) | |||||||||||
| Customer contract deposits (included in Other current liabilities) | |||||||||||
Approximately 90 % of unbilled revenue as of December 27, 2025, which was $201 million, was billed during the nine months ended September 26, 2026. Approximately 90 % of unbilled revenue as of December 28, 2024, which was $212 million, was billed during the nine months ended September 27, 2025.
Approximately 70 % of contract liabilities as of December 27, 2025, which was $256 million, were recognized as revenue during the nine months ended September 26, 2026. Approximately 75 % of contract liabilities as of December 28, 2024, which was $283 million, were recognized as revenue during the nine months ended September 27, 2025.
When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. The Company excluded approximately $60 million and $43 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of September 26, 2026 and December 27, 2025, respectively.
Allowance for Credit Losses
The following is a summary of the activity of the Company’s allowance for credit losses:
| Nine Months Ended | |||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Beginning balance | $ | $ | |||||||||||||||||||||
| Provisions | |||||||||||||||||||||||
| Reductions | ( | ( | |||||||||||||||||||||
| Ending balance | $ | $ | |||||||||||||||||||||
Net recoveries were $0.9 million during the nine months ended September 26, 2026, while net provision expenses were $2.8 million during the nine months ended September 27, 2025. These amounts include recoveries of balances previously written off, which are excluded from the table above.
Transaction Price Allocated to Future Performance Obligations
The Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 26, 2026. Excluded from the disclosure is the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed, and service revenue recognized in accordance with ASC 842, “Leases.” The aggregate amount of transaction price allocated to the remaining performance obligations for all open customer contracts as of September 26, 2026 was $675.3 million. The Company will recognize revenues for these performance obligations as they are satisfied, approximately 60 % of which is expected to occur within the next twelve months and the remainder recognized thereafter during the remaining contract term.
14
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Other Performance Obligations
As part of the Company’s service offerings, the Company has identified performance obligations related to leasing Company owned assets. In certain arrangements, customers obtain substantially all of the economic benefits of the identified assets, which may include manufacturing suites and related equipment, and have the right to direct the assets’ use over the term of the contract. The associated revenue is recognized on a straight-line basis over the term of the lease, which is generally less than one year, and recorded within service revenue. The Company recognized $6.7 million and $12.1 million in lease revenue during the three months ended September 26, 2026 and September 27, 2025, respectively. The Company recognized $27.6 million and $35.7 million in lease revenue during the nine months ended September 26, 2026 and September 27, 2025, respectively. The decrease in lease revenue was primarily due to the CDMO divestiture in the second quarter of 2026. Due to the nature of these arrangements and timing of the contractual lease term, the remaining revenue to be recognized related to these lease performance obligations is not material to the unaudited condensed consolidated financial statements.
15
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4. SEGMENT AND GEOGRAPHIC INFORMATION
The Company operates in three reportable segments: DSA, Manufacturing, and RMS. The reportable segments comprise the structure used by the Company’s Chief Executive Officer, who is the Chief Operating Decision Maker (CODM), to make key operating decisions and assess performance. These segments are strategic business units with differing products and services.
The Company’s CODM evaluates the segments’ operating performance based on operating income. Operating income is the measure of profit or loss regularly provided to and used by the CODM to assess performance and allocate resources. Operating income is defined as revenue less costs of revenue; selling, general, and administrative expenses; and amortization of intangible assets. For each segment, the CODM uses operating income in the annual budgeting and quarterly forecasting process when comparing to actual results. Asset information on a reportable segment basis is not disclosed as this information is not separately identified and internally reported to the Company’s CODM. The following table presents the results of operations by reportable segment:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| DSA | |||||||||||||||||||||||
| Revenue | $ | $ | $ | $ | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Amortization of intangible assets | |||||||||||||||||||||||
| Operating income | $ | $ | $ | $ | |||||||||||||||||||
| Manufacturing | |||||||||||||||||||||||
| Revenue | $ | $ | $ | $ | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Amortization of intangible assets | |||||||||||||||||||||||
| Operating income | $ | $ | $ | $ | |||||||||||||||||||
| RMS | |||||||||||||||||||||||
| Revenue | $ | $ | $ | $ | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Amortization of intangible assets | |||||||||||||||||||||||
| Operating income | $ | $ | $ | $ | |||||||||||||||||||
Unallocated Corporate (1) | |||||||||||||||||||||||
| Selling, general and administrative | $ | $ | $ | $ | |||||||||||||||||||
| Operating loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
(1) Operating income for unallocated corporate consists of costs associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations. | |||||||||||||||||||||||
16
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| DSA | $ | $ | $ | $ | |||||||||||||||||||
| Manufacturing | |||||||||||||||||||||||
| RMS | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | |||||||||||||||||||
| Operating Income (Loss) | |||||||||||||||||||||||
| DSA | $ | $ | $ | $ | |||||||||||||||||||
| Manufacturing | |||||||||||||||||||||||
| RMS | |||||||||||||||||||||||
| Segment operating income | |||||||||||||||||||||||
| Unallocated Corporate | ( | ( | ( | ( | |||||||||||||||||||
| Operating income | $ | $ | $ | $ | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
| Income before income taxes | $ | $ | $ | $ | |||||||||||||||||||
Capital expenditures and depreciation and amortization (related to both intangible assets and certain assets acquired in business combinations) by reportable segment are as follows:
| DSA | Manufacturing | RMS | Unallocated Corporate | Consolidated | |||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||
| Capital Expenditures | |||||||||||||||||||||||||||||
| Three Months Ended: | |||||||||||||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| September 27, 2025 | |||||||||||||||||||||||||||||
| Nine Months Ended: | |||||||||||||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| September 27, 2025 | |||||||||||||||||||||||||||||
Depreciation and amortization (1) | |||||||||||||||||||||||||||||
| Three Months Ended: | |||||||||||||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| September 27, 2025 | |||||||||||||||||||||||||||||
| Nine Months Ended: | |||||||||||||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| September 27, 2025 | |||||||||||||||||||||||||||||
(1) Depreciation and amortization includes both inventory step up amortization expense and biological assets amortization expense. | |||||||||||||||||||||||||||||
17
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Revenue represents sales originating in entities physically located in the identified geographic area. Revenue by geographic area is as follows:
| U.S. | Europe | Canada | Asia Pacific | Other (1) | Consolidated | ||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Three Months Ended: | |||||||||||||||||||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| September 27, 2025 | |||||||||||||||||||||||||||||||||||
| Nine Months Ended: | |||||||||||||||||||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| September 27, 2025 | |||||||||||||||||||||||||||||||||||
(1) The Other category represents operations located in Brazil, Israel, and Mauritius. | |||||||||||||||||||||||||||||||||||
Long-lived assets consist of property, plant, and equipment, net. Long-lived assets by geographic area are as follows:
| U.S. | Europe | Canada | Asia Pacific | Other | Consolidated | ||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Property, plant and equipment, net | |||||||||||||||||||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| December 27, 2025 | |||||||||||||||||||||||||||||||||||
5. SUPPLEMENTAL CASH FLOW INFORMATION
| Nine Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Cash paid for income taxes | $ | $ | |||||||||
| Cash paid for interest | |||||||||||
| Non-cash investing activities: | |||||||||||
| Purchases of Property, plant and equipment included in Accounts payable and Accrued liabilities | $ | $ | |||||||||
| Assets acquired under finance leases | |||||||||||
Cash, cash equivalents and restricted cash are included in the accompanying unaudited condensed consolidated balance sheets as follows:
| September 26, 2026 | September 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Supplemental cash flow information: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash included in Other current assets | |||||||||||
| Restricted cash included in Other assets | |||||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | $ | |||||||||
18
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6. SUPPLEMENTAL BALANCE SHEET INFORMATION
The composition of other assets included in the accompanying unaudited condensed consolidated balance sheets is as follows:
| September 26, 2026 | December 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Bearer biological assets | $ | $ | |||||||||
| Assets held for sale | |||||||||||
| Life insurance policies | |||||||||||
| Restricted cash | |||||||||||
| Long-term pension assets | |||||||||||
| Other long-term assets | |||||||||||
| Other assets | $ | $ | |||||||||
The composition of other long-term liabilities included in the accompanying unaudited condensed consolidated balance sheets is as follows:
| September 26, 2026 | December 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Long-term pension liability, accrued executive supplemental life insurance retirement plan and deferred compensation plan | $ | $ | |||||||||
| Long term tax liability | |||||||||||
| Deferred revenue | |||||||||||
| Other | |||||||||||
| Other long-term liabilities | $ | $ | |||||||||
7. INVENTORY
Inventories
The composition of inventories is as follows:
| September 26, 2026 | December 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Raw materials and supplies | $ | $ | |||||||||
| Work in process | |||||||||||
| Finished products | |||||||||||
| Inventories | $ | $ | |||||||||
Inventory step up amortization expense for the three months ended September 26, 2026 and September 27, 2025 was $5.9 million and $7.4 million, respectively. Inventory step up amortization expense for the nine months ended September 26, 2026 and September 27, 2025 was $7.4 million and $17.8 million, respectively.
19
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
8. PROPERTY, PLANT AND EQUIPMENT, NET
The composition of property, plant and equipment, net is as follows:
| September 26, 2026 | December 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Land | $ | $ | |||||||||
Buildings (1) | |||||||||||
Machinery and equipment (1) | |||||||||||
| Leasehold improvements | |||||||||||
| Furniture and fixtures | |||||||||||
Computer hardware and software (1) | |||||||||||
Vehicles (1) | |||||||||||
| Construction in progress | |||||||||||
| Total | |||||||||||
| Less: Accumulated depreciation | ( | ( | |||||||||
| Property, plant and equipment, net | $ | $ | |||||||||
(1) These balances include assets under finance leases. | |||||||||||
In March 2026, the Company completed the sale of certain assets at the Wilmington, Massachusetts site. The assets consisted of office, laboratory and mixed-use buildings within our RMS segment and unallocated corporate, and was sold to an unrelated third party for cash consideration of $60.1 million, net of costs to sell. In conjunction with the sale, the Company has entered into a long-term operating lease for certain buildings to support RMS and unallocated corporate operations. Upon meeting the criteria for sale leaseback, the Company derecognized the book value of $21.6 million and recognized a pre-tax gain of $38.5 million. The gain was recognized within the RMS reportable segment and unallocated corporate for $23.2 million and $15.3 million, respectively, and is included in Selling, general and administrative expenses for the nine months ended September 26, 2026 within the unaudited condensed consolidated statements of income. As of December 27, 2025, the Company included the above assets as held for sale within Other assets on the unaudited condensed consolidated balance sheets.
The following table details depreciation expense:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Depreciation expense | $ | $ | $ | $ | |||||||||||||||||||
9. VENTURE CAPITAL AND STRATEGIC EQUITY INVESTMENTS
Venture capital investments are summarized below:
| Nine Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Beginning balance | $ | $ | |||||||||
| Capital contributions | |||||||||||
| Distributions | ( | ( | |||||||||
Gains (losses) and impairments | ( | ||||||||||
| Foreign currency translation | ( | ||||||||||
| Ending balance | $ | $ | |||||||||
20
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The Company also invests, with minority positions, directly in equity of predominantly privately held companies. Strategic investments are summarized below:
| Nine Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Beginning balance | $ | $ | |||||||||
| Purchase of investments | |||||||||||
| Distributions | ( | ( | |||||||||
Gains (losses) and impairments | ( | ( | |||||||||
| Foreign currency translation | ( | ||||||||||
| Reduction for acquisition of entities | ( | ||||||||||
| Ending balance | $ | $ | |||||||||
10. FAIR VALUE
Assets and liabilities measured at fair value on a recurring basis are summarized below:
| September 26, 2026 | |||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
Other assets measured at fair value: | |||||||||||||||||||||||||||||||||||
| Life insurance policies | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Accrued liabilities measured at fair value: | |||||||||||||||||||||||||||||||||||
| Contingent consideration | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Other long-term liabilities measured at fair value: | |||||||||||||||||||||||||||||||||||
| Contingent consideration | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Total liabilities measured at fair value | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During the nine months ended September 26, 2026, there were no transfers between levels.
| December 27, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Other assets measured at fair value: | |||||||||||||||||||||||
| Life insurance policies | $ | $ | $ | $ | |||||||||||||||||||
| Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
| Accrued liabilities measured at fair value: | |||||||||||||||||||||||
| Contingent consideration | $ | $ | $ | $ | |||||||||||||||||||
| Total liabilities measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
During the year ended December 27, 2025, there were no transfers between levels.
21
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Contingent Consideration
The following table provides a rollforward of the contingent consideration related to the Company’s acquisitions and divestitures.
| Nine Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Beginning balance | $ | $ | |||||||||
| Additions | |||||||||||
| Payments | ( | ( | |||||||||
| Total gains or losses (realized/unrealized): | |||||||||||
| Adjustment of previously recorded contingent liability | |||||||||||
| Ending balance | $ | $ | |||||||||
The Company estimates the fair value of contingent consideration obligations through valuation models, such as probability-weighted and option pricing models, which incorporate probability adjusted assumptions and simulations related to the achievement of the milestones and the likelihood of making related payments. The unobservable inputs used in the fair value measurements include the probabilities of successful achievement of certain financial targets, forecasted results or targets, volatility, and discount rates. The remaining maximum potential payments are approximately $45.0 million, the full value of which is accrued as of September 26, 2026.
Debt Instruments
The book value of the Company’s revolving loans are variable rate loans carried at amortized cost which approximates the fair value. The fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, and is deemed to be Level 2 within the fair value hierarchy.
The book value of the Company’s Senior Notes are fixed rate obligations carried at amortized cost. Fair value is based on quoted market prices as well as borrowing rates available to the Company. As the fair value is based on significant other observable outputs, it is deemed to be Level 2 within the fair value hierarchy. The book value, excluding issuance costs, and fair value of the Company’s Senior Notes is summarized below:
| September 26, 2026 | December 27, 2025 | ||||||||||||||||||||||
| Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||
11. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following table provides a rollforward of the Company’s goodwill:
DSA (1) | Manufacturing (2) | RMS | Total | ||||||||||||||||||||
| December 27, 2025 | $ | $ | $ | $ | |||||||||||||||||||
| Acquisitions | |||||||||||||||||||||||
| Divestitures | ( | ( | |||||||||||||||||||||
| Foreign exchange | ( | ( | ( | ( | |||||||||||||||||||
| September 26, 2026 | $ | $ | $ | $ | |||||||||||||||||||
(1) DSA includes accumulated impairment losses of $ | |||||||||||||||||||||||
(2) Manufacturing includes accumulated impairment losses of $ | |||||||||||||||||||||||
The increase in goodwill during the nine months ended September 26, 2026 is primarily related to the acquisitions of the Cambodian NHP Supplier in the DSA reportable segment and PathoQuest in the Manufacturing reportable segment; partially offset by the European Discovery Divestiture in the DSA reportable segment and the effect of foreign exchange.
22
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Intangible Assets, Net
The following table displays intangible assets, net by major class:
| September 26, 2026 | December 27, 2025 | ||||||||||||||||||||||||||||||||||
| Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Client relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Technology | ( | ( | |||||||||||||||||||||||||||||||||
| Trademarks and trade names | ( | ( | |||||||||||||||||||||||||||||||||
| Other | ( | ( | |||||||||||||||||||||||||||||||||
| Intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
The decrease in net intangible assets for the nine months ended September 26, 2026 related primarily to the derecognition of certain intangible assets associated with the European Discovery Divestiture, and to a lesser extent normal amortization over the useful lives; offset by an increase in certain intangible assets associated with the PathoQuest acquisition.
The following table details amortization expense of definite-lived intangible assets:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Amortization expense | $ | $ | $ | $ | |||||||||||||||||||
Amortization expense for the nine months ended September 27, 2025 includes $71.0 million of accelerated amortization expense as a result of a decrease in the remaining useful life of certain CDMO client relationships due to a loss of key customers in 2025.
12. DEBT AND OTHER FINANCING ARRANGEMENTS
Long-term debt, net and finance leases consist of the following:
| September 26, 2026 | December 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Revolving facility | $ | $ | |||||||||
| Other debt | |||||||||||
| Finance leases | |||||||||||
| Total debt and finance leases | |||||||||||
| Less: | |||||||||||
| Current portion of long-term debt | |||||||||||
| Current portion of finance leases | |||||||||||
| Current portion of long-term debt and finance leases | |||||||||||
| Long-term debt and finance leases | |||||||||||
| Debt discount and debt issuance costs | ( | ( | |||||||||
| Long-term debt, net and finance leases | $ | $ | |||||||||
As of September 26, 2026 and December 27, 2025, the weighted average interest rate on the Company’s debt was 4.11 % and 4.05 %, respectively.
23
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Revolving Credit Facility
The Company has a revolving credit facility (Credit Facility) that provides for up to $2.0 billion of multi-currency revolving credit. The Credit Facility has a maturity date of December 2029, with no required scheduled payment before that date. The interest rates applicable to the Credit Facility are equal to (A) for revolving loans denominated in U.S. dollars, at the Company’s option, either the base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus 0.50 %, or (3) the one-month adjusted SOFR rate plus 1.0 %) or the adjusted SOFR rate, (B) for revolving loans denominated in euros, the adjusted EURIBOR rate and (C) for revolving loans denominated in sterling, the daily simple SONIA rate, in each case, plus an interest rate margin based upon the Company’s leverage ratio.
Letters of Credit
As of September 26, 2026 and December 27, 2025, the Company had $21.7 million and $22.0 million, respectively, in outstanding letters of credit.
13. EQUITY AND NONCONTROLLING INTERESTS
Earnings Per Share
The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | |||||||||||||||||||||||
| Net income attributable to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted-average shares outstanding - Basic | |||||||||||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||||||||
| Stock options, restricted stock units and performance share units | |||||||||||||||||||||||
| Weighted-average shares outstanding - Diluted | |||||||||||||||||||||||
Anti-dilutive common stock equivalents (1)(2) | |||||||||||||||||||||||
(1) Anti-dilutive common stock equivalents represent amounts outstanding related to employee stock options, RSUs and PSUs for all periods presented. | |||||||||||||||||||||||
(2) These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. | |||||||||||||||||||||||
Treasury Shares
On October 29, 2025, the Company’s Board of Directors approved a stock repurchase program of $1.0 billion. During the nine months ended September 26, 2026, the Company repurchased 1.7 million shares of common stock for $300.0 million under the stock repurchase program. As of September 26, 2026, the Company had $700.0 million remaining on the authorized stock repurchase program.
The Company’s stock-based compensation plans permit the netting of common stock upon vesting of RSUs and PSUs in order to satisfy individual statutory tax withholding requirements. Under the current program, the Company acquired 0.1 million shares during the nine months ended September 26, 2026 and 0.1 million shares in the nine months ended September 27, 2025, for $20.8 million and $9.9 million, respectively, from such netting.
24
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Accumulated Other Comprehensive Income (Loss)
Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows:
| Foreign Currency Translation Adjustment and Other | Pension and Other Post-Retirement Benefit Plans | Total | |||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| December 27, 2025 | $ | ( | $ | ( | $ | ( | |||||||||||||||||
| Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
| Net current period other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Income tax (benefit) expense | ( | ( | |||||||||||||||||||||
| September 26, 2026 | $ | ( | $ | ( | $ | ( | |||||||||||||||||
Redeemable Noncontrolling Interests
The Company has held and continues to hold redeemable noncontrolling interests. Since the Company has the right to purchase, and the noncontrolling interest holders have the right to require the Company to purchase the remaining interest, which represents a derivative embedded within the equity instrument, the noncontrolling interest is classified in the mezzanine section of the unaudited condensed consolidated balance sheets, which is presented above the equity section and below liabilities.
The redeemable noncontrolling interests are measured at the greater of (i) the redemption amount or (ii) the historical value resulting from the original acquisition date fair value, increased or decreased for the noncontrolling interest’s share of net income (loss), equity capital contributions and distributions. The fair value of the redeemable noncontrolling interest is determined using the income approach, with key assumptions being projected cash flows and discount rates based on market participant’s weighted average cost of capital. To the extent redemption value exceeds carrying value, adjustments are recorded to additional paid-in capital, with any cumulative excess of redemption value over fair value recorded in retained earnings, which impacts net income (loss) attributable to common shareholders used in the calculation of earnings (loss) per common share.
Noveprim
The Company holds a 90 % ownership interest in Noveprim Group (Noveprim). The Company has the right to purchase, and the noncontrolling interest holders have the right to sell, the remaining 10 % equity interest at a fixed redemption value that ranges from $47.0 million to $54.0 million depending on when exercised. The Company has the call option right to purchase the remaining 10 % equity up until one month after the sixth anniversary of closing the 41 % equity stake (December 2029). On the first anniversary of the expiration of the call option (December 2030), a 12-month put option will be triggered giving the seller the right to require the Company to acquire the remaining shares of the seller for $54.0 million. The redemption value is accreted to the put purchase price of $54.0 million using the interest method through December 2030. As of September 26, 2026, the redemption value of $43.2 million was less than the carrying value, resulting in a $0.3 million reversal of previously recognized adjustments to additional paid-in capital during the three months ended September 26, 2026. The cumulative adjustment to additional paid in capital for the nine months ended September 26, 2026 was $4.8 million. As of September 27, 2025, the redemption value of $40.5 million exceeded the carrying value, resulting in an adjustment to additional paid in capital of $4.0 million for the nine months ended September 27, 2025.
Nonredeemable Noncontrolling Interest
The Company has an investment in an entity whose financial results are consolidated in the Company’s unaudited condensed consolidated financial statements, as it has the ability to exercise control over this entity. The interest of the noncontrolling party in this entity has been recorded as nonredeemable noncontrolling interest within Equity in the accompanying unaudited condensed consolidated balance sheets. The activity within the nonredeemable noncontrolling interest was not material during the three and nine months ended September 26, 2026 and September 27, 2025.
14. INCOME TAXES
The Company’s effective tax rates were as follows:
25
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||
| Income before income taxes | $ | $ | $ | $ | |||||||||||||||||||
| Provision (benefit) for income taxes | ( | ( | |||||||||||||||||||||
Effective tax rate | ( | % | % | ( | % | % | |||||||||||||||||
The difference in the effective tax rate for the three and nine months ended September 26, 2026 compared to the corresponding prior year period was primarily attributable to a $201
For the three months ended September 26, 2026, the Company’s unrecognized tax benefit reserve decreased by $135.7 million to $22.5 million, primarily due to changes in applicable tax law enacted and completion of certain tax requirements in a foreign jurisdiction. For the three months ended September 26, 2026, the amount of unrecognized income tax benefits that would impact the effective tax rate decreased by $135.9 million to $17.4 million, primarily driven by the reversal discussed above. The accrued interest on unrecognized tax benefits was $2.8 million as of September 26, 2026.
The Company’s prepaid and accrued tax positions are as follows:
| September 26, 2026 | December 27, 2025 | Affected Line Item in the Unaudited Condensed Consolidated Balance Sheets | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Prepaid income tax | $ | $ | Other current assets | ||||||||||||||
| Accrued income taxes | Other current liabilities | ||||||||||||||||
The Company conducts business in a number of tax jurisdictions. As a result, it is subject to tax audits on a regular basis including, but not limited to, such major jurisdictions as the U.S., the U.K., China, France, Germany, and Canada. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years before 2022.
The Company and certain of its subsidiaries have ongoing tax controversies in the U.S., Canada, France, Ireland, the U.K., and India. The Company does not anticipate resolution of these audits will have a material impact on its unaudited condensed consolidated financial statements.
15. RESTRUCTURING AND ASSET IMPAIRMENTS
In September 2026, the Company announced “Create the Future,” a multi-year restructuring program intended to modernize operations, improve client experience, and enhance profitability through AI and automation, simplification and digitization, and enterprise optimization. Create the Future builds upon actions already underway, including process improvements, procurement synergies, global business service expansion, workforce optimization, and real estate footprint rationalization.
Costs associated with these ongoing actions and Create the Future are expected to be incurred across all reportable segments and corporate through 2030 and primarily relate to workforce reduction initiatives resulting in severance and transition costs, facility consolidation activities resulting in long-lived asset impairment charges (principally property, plant, and equipment and operating lease right-of-use assets), accelerated depreciation charges, and certain other costs.
The following table presents restructuring costs by reportable segment:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| DSA | $ | $ | $ | $ | |||||||||||||||||||
| Manufacturing | |||||||||||||||||||||||
| RMS | |||||||||||||||||||||||
| Unallocated corporate | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
26
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following table presents restructuring costs as included within the Company’s unaudited condensed consolidated statements of income:
| September 26, 2026 | September 27, 2025 | ||||||||||||||||||||||||||||||||||
| Severance and Transition Costs | Asset Impairments and Other Costs | Total | Severance and Transition Costs | Asset Impairments and Other Costs | Total | ||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| Cost of services provided (excluding amortization of intangible assets) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Cost of products sold (excluding amortization of intangible assets) | |||||||||||||||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||||||||||||||
| Total restructuring costs | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||||||||||||
| Cost of services provided (excluding amortization of intangible assets) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Cost of products sold (excluding amortization of intangible assets) | |||||||||||||||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||||||||||||||
| Total restructuring costs | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Rollforward of Restructuring Activities
The following table provides a rollforward for the Company’s accrued restructuring costs related to all restructuring activities:
| Severance and Transition Costs | Asset Impairments | Other Costs | Total | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Nine Months Ended September 26, 2026 | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Expense | |||||||||||||||||||||||
Payments / utilization | ( | ( | ( | ||||||||||||||||||||
Other non-cash adjustments | ( | ( | ( | ||||||||||||||||||||
Foreign currency adjustments | ( | ( | |||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | |||||||||||||||||||
| Nine Months Ended September 27, 2025 | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Expense | |||||||||||||||||||||||
Payments / utilization | ( | ( | ( | ||||||||||||||||||||
Other non-cash adjustments | ( | ( | ( | ||||||||||||||||||||
Foreign currency adjustments | |||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | |||||||||||||||||||
As of September 26, 2026 and December 27, 2025, $16.1 million and $23.0 million, respectively, of severance and other personnel related costs liabilities were included in accrued compensation and accrued liabilities within the Company’s unaudited condensed consolidated balance sheets.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
16. COMMITMENTS AND CONTINGENCIES
Litigation
A putative securities class action (Securities Class Action) was filed on May 19, 2023 against the Company and a number of its current/former officers in the United States District Court for the District of Massachusetts. On August 31, 2023, the court appointed the State Teachers Retirement System of Ohio as lead plaintiff. An amended complaint was filed on November 14, 2023 that, among other things, included only James Foster, the then current Chief Executive Officer and David R. Smith, the former Chief Financial Officer as defendants along with the Company. The amended complaint asserted claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act) on behalf of a putative class of purchasers of Company securities from May 5, 2020 through February 21, 2023, alleging that certain of the Company’s disclosures about its practices with respect to the importation of non-human primates made during the putative class period were materially false or misleading. On July 1, 2024, the court dismissed the complaint, denied the plaintiff’s informal request for leave to amend, and entered judgment for defendants. On July 30, 2024, the plaintiff filed a notice of appeal in the United States Court of Appeals for the First Circuit. Oral arguments took place on May 5, 2025. On August 15, 2025, the U.S. Court of Appeals for the First Circuit reversed in part and vacated in part the district court’s dismissal on the pleadings of the securities fraud claims. The case returned to U.S. District Court for the District of Massachusetts. On October 16, 2025, the plaintiff filed a motion to withdraw the State Teachers Retirement System of Ohio as lead plaintiff, due to lack of standing, and substitute Oklahoma Firefighters Pension and Retirement System. On September 2, 2026, the court granted the motion and appointed Oklahoma Firefighters Pension and Retirement System as lead plaintiff. On September 15, 2026, Oklahoma Firefighters Pension and Retirement System filed a second amended complaint that names only the Company and James Foster as defendants, narrows the putative class period to November 30, 2022 through March 15, 2023, and removes the alleged misstatements that the district court and the First Circuit determined were not actionable. On October 15, 2026, the Company filed a motion to dismiss the second amended complaint on the issue left unresolved by the First Circuit’s decision. Plaintiff’s opposition is due by November 16, 2026. While the Company cannot predict the final outcome of this matter, it believes the class action to be without merit and plans to vigorously defend against it. The Company cannot reasonably estimate the maximum potential exposure or the range of possible loss in association with this matter.
On November 8, 2023, a stockholder filed a derivative lawsuit in the U.S. District Court of the District of Delaware asserting claims on the Company’s behalf against the members of the Company’s Board of Directors and certain of the Company’s current/former officers (James Foster, the then current Chief Executive Officer; David R. Smith, a former Chief Financial Officer; and Flavia Pease, the then current Chief Financial Officer). The complaint alleges that the defendants breached their fiduciary duties to the Company and its stockholders because certain of the Company’s disclosures about its practices with respect to the importation of non-human primates were materially false or misleading. The complaint also alleges that the defendants breached their fiduciary duties by causing the Company to fail to maintain adequate internal controls over securities disclosure and compliance with applicable law and by failing to comply with the Company’s Code of Business Conduct and Ethics. On August 2, 2024, a different stockholder filed a lawsuit in the U.S. District Court of Delaware asserting similar derivative claims on the Company’s behalf against members of the Company’s current and former Board of Directors and the same current/former officers based on similar allegations of purportedly misleading disclosures and non-compliance with legal rules and ethics standards in respect of the importation of non-human primates, as well as insider-trading claims against certain of the defendants. Both of these lawsuits are currently stayed by agreement of the parties pending resolution of the motion to dismiss in the Securities Class Action pending in the United States District Court for the District of Massachusetts. While the Company cannot predict the outcome of these matters, it believes the derivative lawsuits to be without merit and plans to vigorously defend against them. The Company cannot reasonably estimate the maximum potential exposure or the range of possible loss in association with these matters.
Aside from the matters above, the Company believes there are no other matters pending against the Company that could have a material impact on the Company’s business, financial condition, or results of operations.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and related notes of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for fiscal year 2025 as filed with the SEC on February 18, 2026. The following discussion contains forward-looking statements. Actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause future results to differ materially from those projected in the forward-looking statements include, but are not limited to, those discussed in Item 1A, “Risk Factors” included elsewhere within this Form 10-Q. Certain percentage changes may not recalculate due to rounding.
Overview
We are a leading, full service, non-clinical global drug development partner. For over 75 years, we have been in the business of providing the research models required in the research and development of new drugs, devices, and therapies. Over this time, we have built upon our original core competency of laboratory animal medicine and science (research model technologies) to develop a diverse portfolio of discovery and safety assessment services, both Good Laboratory Practice (GLP) and non-GLP, that supports our clients from target identification through non-clinical development. We also provide a suite of products and services to support our clients’ manufacturing activities. Utilizing our broad portfolio of products and services enables our clients to create a more efficient and flexible drug development model, which reduces their costs, enhances their productivity and effectiveness, and increases speed to market.
Our client base includes major global pharmaceutical companies; many biotechnology companies; agricultural and industrial chemical, life science, veterinary medicine, medical device, diagnostic and consumer product companies; contract research and contract manufacturing organizations; and other commercial entities, as well as leading hospitals, academic institutions, and government agencies around the world.
Segment Reporting
Our three reportable segments are Discovery and Safety Assessment (DSA), Manufacturing Solutions (Manufacturing), and Research Models and Services (RMS).
Our DSA segment is comprised of Discovery and Safety Assessment services. We provide regulated and non-regulated DSA services to support the discovery, development, and regulatory-required safety testing of potential new drugs, including in vitro (non-animal), in vivo (in research models) and in silico studies, laboratory support services, including bioanalytical and strategic non-clinical consulting and program management to support product development. In May 2026, we sold certain European Discovery Services businesses.
Our Manufacturing reportable segment includes Microbial Solutions, which provides in vitro lot-release testing products, microbial detection products, and species identification services and Biologics Testing (Biologics), which performs specialized testing of biologics. In May 2026, we sold the contract development and manufacturing products and services (CDMO) business, reported in the Manufacturing segment.
Our RMS reportable segment includes the products and services offered within Research Models, Research Model Services, and Cell Solutions. Research Models includes the commercial production and sale of small research models, as well as the supply of large research models. Research Model Services includes: Insourcing Solutions (IS), which provides colony management of our clients’ research operations (including recruitment, training, staffing, and management services) within our clients’ facilities as well as our own vivarium space, utilizing our Charles River Accelerator and Development Lab (CRADL™) offerings, Genetically Engineered Models and Services (GEMS), which performs contract breeding and other services associated with genetically engineered models; and Research Animal Diagnostic Services (RADS), which provides health monitoring and diagnostics services related to research models. In May 2026, we sold the Cell Solutions business, reported in the RMS segment, which provided controlled, consistent, customized primary cells and blood components derived from normal and mobilized peripheral blood and bone marrow as well as cells from disease state donors.
Fiscal Quarters
Our fiscal year is typically based on 52 weeks, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. A 53rd week in the fourth quarter of the fiscal year is occasionally necessary to align with a December 31 calendar year-end.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Global Market Environment
We are continuing to see an improved spending environment from our client base, principally within our DSA segment, as the demand conditions have improved from levels experienced in the recent quarters, due primarily to increased biotech funding and global biopharmaceutical companies refocusing their investments on their early-stage research and development pipelines. Consistent with the improving demand environment, DSA backlog increased slightly to $2.0 billion as of September 26, 2026 from $1.9 billion as of December 27, 2025.
Strategic Vision and Restructuring Programs
We continuously assess opportunities to drive greater efficiencies through process improvements, cost-savings initiatives, and restructuring actions. During the third quarter of fiscal 2026, we announced our Create the Future program, which formalizes and expands the Company’s ongoing transformation and efficiency initiatives under a unified operating framework. Create the Future builds upon actions already underway, including process improvements, procurement synergies, global business service expansion, workforce optimization, and real estate footprint rationalization, while introducing additional initiatives focused on AI-enabled automation, simplification and digitization, and enterprise optimization.
Through the ongoing actions, the Company expects to achieve approximately $300 million of cumulative annualized cost savings by the end of 2026, with more than $175 million realized through fiscal 2025. In addition, the Create the Future program is expected to generate incremental cost savings in excess of $300 million between 2027 and 2030. Workforce-related actions have primarily resulted in severance and transition costs, while facility optimization activities have resulted in asset impairment charges, accelerated depreciation, and other site-related costs. Restructuring charges were $19.2 million and $73.8 million during the three and nine months ended September 26, 2026, respectively, compared with $99.8 million and $107.0 million in fiscal 2025 and 2024, respectively. For further details of these costs, see Note 15 – Restructuring and Asset Impairments in Part I, Item 1.
Recent Acquisitions
We make strategic acquisitions designed to expand our portfolio of products and services to support the drug discovery and development continuum. We maintain an acquisition strategy that focuses on augmenting internal growth of existing businesses with complementary acquisitions. Our recent transactions are described below.
On April 17, 2026, we completed the acquisition of an additional 79% equity interest in PathoQuest SAS (PathoQuest), for $67.4 million. The acquisition was funded through a combination of available cash and proceeds from the Credit Facility. This business is reported as part of our Manufacturing reportable segment. For more details, please see Note 2 – Acquisitions and Divestitures in Part I, Item 1.
On January 14, 2026, we completed the acquisition of certain assets of K.F. Cambodia Ltd (Cambodian NHP Supplier), a leading supplier of non-human primates (NHPs) located in Cambodia. The preliminary purchase price for the Cambodian NHP Supplier was $507.3 million, consisting of $335.0 million paid at closing and $172.3 million representing the acquisition date fair value of deferred consideration, which is payable upon the satisfaction of certain post-close conditions. During the three and nine months ended September 26, 2026, the Company paid $100.0 million and $170.0 million of deferred consideration, respectively, with the remaining balance of $5 million to be paid as of September 26, 2026. The acquisition was funded through a combination of available cash and proceeds from our Credit Facility. This business is reported as part of our DSA reportable segment for NHPs vertically integrated into the DSA supply chain and the RMS reportable segment for those NHPs sold to third party customers. For more details, please see Note 2 – Acquisitions and Divestitures in Part I, Item 1.
Recent Divestitures
We routinely evaluate the strategic fit and fundamental performance of our global businesses, divesting operations that do not meet key business criteria. As part of this ongoing assessment, we determined that certain capital could be better deployed in other long-term growth opportunities.
On May 22, 2026, we sold certain European Discovery Services businesses (European Discovery Divestiture) to IQVIA Inc. (IQVIA) for a purchase price of $126.4 million in cash, net of costs to sell and subject to certain customary closing adjustments. We may also earn up to $10.0 million of contingent payments, which are tied to future performance. The contingent payments have been valued at $2.8 million using a discounted probability weighted model. The results of the European Discovery Services businesses were reported in our DSA reportable segment. During the three and nine months ended September 26, 2026, we recorded a pre-tax gain on the divestiture of $1.1 million and $1.4 million, respectively, within Other expense, net on the unaudited condensed consolidated statements of income.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
On May 6, 2026, we sold our CDMO and Cell Solutions businesses (CDMO and Cell Solutions Divestiture) to GI Partners (GI) for net cash paid to the buyer of $12.4 million, net of costs to sell and subject to certain customary closing adjustments. Additionally, we may be required to fund up to $45.0 million of future EBITDA losses and capital expenditures of the divested businesses over a four-year period, which is expected to be fully used by GI. Conversely, we may also earn up to $50.0 million of contingent payments, which are tied to future performance and achievement of milestones. The contingent payments receivable have been valued at $15.7 million using a discounted probability weighted model. The results of the CDMO and Cell Solutions businesses were reported in our Manufacturing reportable segment and RMS reportable segment, respectively. These businesses and the related assets and liabilities met the criteria for held-for-sale as of March 28, 2026, resulting in a pre-tax loss of $118.0 million recognized for the three months ended March 28, 2026, which represents the excess of its carrying value over the fair value less cost to sell. Upon closing of the sale, a $63.7 million pre-tax loss on divestiture was recognized for the three months ended June 27, 2026. No pre-tax loss was recognized on the divestiture for the three months ended September 26, 2026. We recognized the pre-tax loss on divestiture of $181.7 million for the nine months ended September 26, 2026 within Other expense, net on the unaudited condensed consolidated statements of income.
In March 2026, we completed the sale of certain assets located at our Wilmington, Massachusetts site. The assets consisted of office, laboratory and mixed-use buildings within our RMS segment and unallocated corporate, and was sold to an unrelated third party for cash consideration of $60.1 million, net of costs to sell. In conjunction with the sale, we entered into a long-term operating lease for certain buildings to support RMS and unallocated corporate operations. Upon meeting the criteria for sale leaseback, we derecognized the book value of $21.6 million and recognized a pre-tax gain of approximately $38.5 million. The gain was recognized within our RMS reportable segment and unallocated corporate for $23.2 million and $15.3 million, respectively, and is included in Selling, general and administrative expenses for the nine months ended September 26, 2026 within the unaudited condensed consolidated statements of income.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Results of Operations
Consolidated Results of Operations and Liquidity
Revenue for the three months ended September 26, 2026 decreased $22.1 million, or 2.2%, to $982.7 million compared to $1,004.9 million in the corresponding period in 2025. Revenue for the nine months ended September 26, 2026 decreased $38.5 million, or 1.3%, to $2,982.6 million compared to $3,021.2 million in the corresponding period in 2025. The decrease in revenue for both the three and nine months ended September 26, 2026 was primarily due to a decrease in Manufacturing and RMS revenue due to the CDMO and Cell Solutions Divestiture and DSA revenue driven by the European Discovery Divestiture, compared to the corresponding period in 2025.
For the three months ended September 26, 2026, our operating income and operating income as a percentage of revenue were $202.6 million and 20.6% respectively, compared to $133.8 million and 13.3% respectively, in the corresponding period of 2025. For the nine months ended September 26, 2026, our operating income and operating income as a percentage of revenue were $442.4 million and 14.8% respectively, compared to $308.6 million and 10.2% respectively, in the corresponding period of 2025. The increases in operating income and operating income as a percentage of revenue for the three and nine months ended September 26, 2026 were primarily driven by the benefit from the divestiture of the CDMO business, the gain on sale of certain assets at our Wilmington, Massachusetts site in the first quarter of 2026, lower accelerated amortization expense, certain third-party legal costs incurred in fiscal year 2025, and a non-income tax benefit resulting from changes in tax law enacted and completion of certain tax requirements in a foreign jurisdiction; partially offset by the decrease in revenue described above and higher acquisition, integration and divestiture costs, when compared to the corresponding period in 2025.
Net income attributable to Charles River Laboratories International, Inc., common shareholders increased to $333.1 million in the three months ended September 26, 2026, from $54.4 million in the corresponding period of 2025. Net income to Charles River Laboratories International, Inc., common shareholders increased to $316.7 million in the nine months ended September 26, 2026, from $132.2 million in the corresponding period of 2025. The increase of $278.6 million for the three months ended September 26, 2026 was due principally to the enactment of tax legislation and completion of certain tax requirements in a foreign jurisdiction resulting in a benefit due to the reversal of an unrecognized tax benefit reserve and the increase in operating income described above, compared to the corresponding period in 2025. The increase of $184.5 million for the nine months ended September 26, 2026 was due principally to the tax benefit and the increase in operating income described above; partially offset by the CDMO and Cell Solutions Divestiture loss of $181.7 million recognized in the first half of 2026, compared to the corresponding period in 2025.
During the nine months ended September 26, 2026, our cash flows from operations were $474.9 million compared with $590.1 million for the same period in 2025. The decrease was primarily related to higher payments of variable compensation, specifically annual incentive based bonuses paid during the first quarter, as well as higher professional services fees for enterprise-wide efficiency initiatives and acquisition, integration and divestiture-related activities.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Three Months Ended September 26, 2026 Compared to the Three Months Ended September 27, 2025
Revenue and Operating Income
The following tables present consolidated revenue by type and by reportable segment:
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | ||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Service revenue | $ | 780,341 | $ | 808,042 | $ | (27,701) | (3.4) | % | |||||||||||||||||||||
| Product revenue | 202,391 | 196,810 | 5,581 | 2.8 | % | ||||||||||||||||||||||||
| Total revenue | $ | 982,732 | $ | 1,004,852 | $ | (22,120) | (2.2) | % | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| DSA | $ | 596,322 | $ | 600,685 | $ | (4,363) | (0.7) | % | (0.2) | % | |||||||||||||||||||
| Manufacturing | 178,878 | 190,693 | (11,815) | (6.2) | % | (0.2) | % | ||||||||||||||||||||||
| RMS | 207,532 | 213,474 | (5,942) | (2.8) | % | 0.7 | % | ||||||||||||||||||||||
| Total revenue | $ | 982,732 | $ | 1,004,852 | $ | (22,120) | (2.2) | % | — | % | |||||||||||||||||||
The following table presents operating income by reportable segment:
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| DSA | $ | 172,376 | $ | 123,153 | $ | 49,223 | 40.0 | % | 0.4 | % | |||||||||||||||||||
| Manufacturing | 63,835 | 39,926 | 23,909 | 59.9 | % | (0.4) | % | ||||||||||||||||||||||
| RMS | 41,240 | 34,553 | 6,687 | 19.4 | % | 1.9 | % | ||||||||||||||||||||||
| Unallocated corporate | (74,813) | (63,833) | (10,980) | 17.2 | % | (0.2) | % | ||||||||||||||||||||||
| Total operating income | $ | 202,638 | $ | 133,799 | $ | 68,839 | 51.4 | % | 0.7 | % | |||||||||||||||||||
| Operating income % of revenue | 20.6 | % | 13.3 | % | 730 bps | ||||||||||||||||||||||||
The following presents and discusses our consolidated financial results by each of our reportable segments:
DSA
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Revenue | $ | 596,322 | $ | 600,685 | $ | (4,363) | (0.7) | % | (0.2) | % | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | 406,987 | 408,112 | (1,125) | (0.3) | % | ||||||||||||||||||||||||
| Selling, general and administrative | 7,337 | 56,266 | (48,929) | (87.0) | % | ||||||||||||||||||||||||
| Amortization of intangible assets | 9,622 | 13,154 | (3,532) | (26.9) | % | ||||||||||||||||||||||||
| Operating income | $ | 172,376 | $ | 123,153 | $ | 49,223 | 40.0 | % | 0.4 | % | |||||||||||||||||||
| Operating income % of revenue | 28.9 | % | 20.5 | % | 840 bps | ||||||||||||||||||||||||
DSA revenue decreased $4.4 million due primarily to the sale of certain European Discovery Services businesses of $36.4 million and the effect of changes in foreign currency exchange rates of $1.5 million; partially offset by higher revenue for regulated safety assessment services of $33.5 million compared to the corresponding period in 2025.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
DSA operating income increased $49.2 million during the three months ended September 26, 2026 compared to the corresponding period in 2025. DSA operating income as a percentage of revenue for the three months ended September 26, 2026 was 28.9%, an increase of 840 bps from 20.5% for the corresponding period in 2025. Operating income and operating income as a percentage of revenue increased primarily due to a non-income tax benefit resulting from changes in tax law enacted and completion of certain tax requirements in a foreign jurisdiction and the decrease in amortization of intangible assets related to the European Discovery Divestiture.
Manufacturing
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Revenue | $ | 178,878 | $ | 190,693 | $ | (11,815) | (6.2) | % | (0.2) | % | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | 79,303 | 109,944 | (30,641) | (27.9) | % | ||||||||||||||||||||||||
| Selling, general and administrative | 33,594 | 32,556 | 1,038 | 3.2 | % | ||||||||||||||||||||||||
| Amortization of intangible assets | 2,146 | 8,267 | (6,121) | (74.0) | % | ||||||||||||||||||||||||
| Operating income | $ | 63,835 | $ | 39,926 | $ | 23,909 | 59.9 | % | (0.4)% | ||||||||||||||||||||
| Operating income % of revenue | 35.7 | % | 20.9 | % | 1,480 bps | ||||||||||||||||||||||||
Manufacturing revenue decreased $11.8 million primarily due to the sale of the CDMO business of $25.3 million; partially offset by increased revenue in our Microbial Solutions business of $7.2 million, driven primarily by higher demand for endotoxin testing reagents, and higher revenue in the Biologics Testing business of $6.6 million, compared to the corresponding period in 2025.
Manufacturing operating income increased $23.9 million during the three months ended September 26, 2026 compared to the corresponding period in 2025. Manufacturing operating income as a percentage of revenue for the three months ended September 26, 2026 was 35.7%, an increase of 1,480 bps from 20.9% for the corresponding period in 2025. Operating income and operating income as a percentage of revenue increased primarily due to the benefit from the divestiture of the CDMO business.
RMS
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Revenue | $ | 207,532 | $ | 213,474 | $ | (5,942) | (2.8) | % | 0.7 | % | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | 138,572 | 148,004 | (9,432) | (6.4) | % | ||||||||||||||||||||||||
| Selling, general and administrative | 24,847 | 24,934 | (87) | (0.3) | % | ||||||||||||||||||||||||
| Amortization of intangible assets | 2,873 | 5,983 | (3,110) | (52.0) | % | ||||||||||||||||||||||||
| Operating income | $ | 41,240 | $ | 34,553 | $ | 6,687 | 19.4 | % | 1.9 | % | |||||||||||||||||||
| Operating income % of revenue | 19.9 | % | 16.2 | % | 370 bps | ||||||||||||||||||||||||
RMS revenue decreased $5.9 million primarily driven by the divestiture of the Cell Solutions business of $6.0 million, a decrease in large research model revenue of $4.4 million, and small research model product revenue in North America of $3.8 million; partially offset by increases in small research model product revenue in China of $4.9 million, IS service revenue of $2.8 million, and the effect of changes in foreign currency exchange rates compared to the corresponding period in 2025.
RMS operating income increased $6.7 million compared to the corresponding period in 2025. RMS operating income as a percentage of revenue for the three months ended September 26, 2026 was 19.9%, an increase of 370 bps from 16.2% for the corresponding period in 2025. Operating income and operating income as a percentage of revenue increased primarily due to a decrease in amortization of intangible assets related to the sale of the Cell Solutions business; partially offset with a decrease in revenue described above, compared to the corresponding period in 2025.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Unallocated Corporate
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Unallocated corporate | $ | 74,813 | $ | 63,833 | $ | 10,980 | 17.2 | % | (0.2) | % | |||||||||||||||||||
| Unallocated corporate % of revenue | 7.6 | % | 6.4 | % | 120 bps | ||||||||||||||||||||||||
Unallocated corporate costs consist of selling, general and administrative expenses that are not directly related or allocated to the reportable segments. The increase in unallocated corporate costs of $11.0 million, or 17.2%, compared to the corresponding period in 2025 is primarily due to higher professional services fees related to enterprise-wide efficiency initiatives and higher legal costs. Costs as a percentage of revenue for the three months ended September 26, 2026 was 7.6%, an increase of 120 bps from 6.4% for the corresponding period in 2025.
Other Income (Expense)
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | ||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||
| Interest income | $ | 958 | $ | 1,422 | $ | (464) | (32.6) | % | |||||||||||||||||||||
| Interest expense | (28,525) | (25,403) | (3,122) | 12.3 | % | ||||||||||||||||||||||||
Other expense, net | (4,414) | (22,618) | 18,204 | (80.5) | % | ||||||||||||||||||||||||
| Total other expense, net | $ | (31,981) | $ | (46,599) | $ | 14,618 | (31.4) | % | |||||||||||||||||||||
Interest expense for the three months ended September 26, 2026 was $28.5 million, an increase of $3.1 million, or 12.3%, compared to $25.4 million in the corresponding period in 2025 primarily due to higher average debt balances and non-cash interest expense recognized from the accretion of deferred purchase consideration associated with the Cambodian NHP Supplier acquisition.
Other expense, net for the three months ended September 26, 2026 was $4.4 million compared to $22.6 million for the corresponding period in 2025 primarily due to $2.2 million of venture capital and strategic equity investment net losses in 2026 compared to $20.2 million of net losses in 2025.
Income Taxes
| Three Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | ||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Income before income taxes | $ | 170,657 | $ | 87,200 | $ | 83,457 | 95.7 | % | |||||||||||||||||||||
Provision (benefit) for income taxes | $ | (163,787) | $ | 31,644 | $ | (195,431) | (617.6) | % | |||||||||||||||||||||
| Effective tax rate | (96.0) | % | 36.3 | % | (13,230) bps | ||||||||||||||||||||||||
Income tax benefit for the three months ended September 26, 2026 was $163.8 million, compared to income tax expense of $31.6 million for the corresponding period in 2025. Our effective tax rate was (96.0)% for the three months ended September 26, 2026 compared to 36.3% for the corresponding period in 2025. The difference in our effective tax rate in the three months ended September 26, 2026 compared to the corresponding period in 2025 was primarily attributable to a $201 million tax benefit resulting from the reversal of an unrecognized tax benefit reserve due to tax legislation and completion of certain tax requirements in a foreign jurisdiction which was enacted in the third quarter of 2026, subsequent to the related acquisition.
Nine Months Ended September 26, 2026 Compared to Nine Months Ended September 27, 2025
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Revenue and Operating Income
The following tables present consolidated revenue by type and by reportable segment:
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | ||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Service revenue | $ | 2,386,780 | $ | 2,446,801 | $ | (60,021) | (2.5) | % | |||||||||||||||||||||
| Product revenue | 595,860 | 574,354 | 21,506 | 3.7 | % | ||||||||||||||||||||||||
Total revenue | $ | 2,982,640 | $ | 3,021,155 | $ | (38,515) | (1.3) | % | |||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| DSA | $ | 1,799,752 | $ | 1,811,323 | $ | (11,571) | (0.6) | % | 0.8 | % | |||||||||||||||||||
| Manufacturing | 557,514 | 570,014 | (12,500) | (2.2) | % | 1.5 | % | ||||||||||||||||||||||
| RMS | 625,374 | 639,818 | (14,444) | (2.3) | % | 1.8 | % | ||||||||||||||||||||||
| Total revenue | $ | 2,982,640 | $ | 3,021,155 | $ | (38,515) | (1.3) | % | 1.1 | % | |||||||||||||||||||
The following table presents operating income by reportable segment:
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change(1) | Impact of FX(1) | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| DSA | $ | 400,650 | $ | 339,886 | $ | 60,764 | 17.9 | % | (0.6) | % | |||||||||||||||||||
| Manufacturing | 176,280 | 43,367 | 132,913 | 306.5 | % | 6.9 | % | ||||||||||||||||||||||
| RMS | 127,290 | 113,944 | 13,346 | 11.7 | % | 4.8 | % | ||||||||||||||||||||||
| Unallocated corporate | (261,797) | (188,595) | (73,202) | 38.8 | % | 0.4 | % | ||||||||||||||||||||||
| Total operating income | $ | 442,423 | $ | 308,602 | $ | 133,821 | 43.4 | % | 1.8 | % | |||||||||||||||||||
| Operating income % of revenue | 14.8 | % | 10.2 | % | 460 bps | ||||||||||||||||||||||||
The following presents and discusses our consolidated financial results by each of our reportable segments:
DSA
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Revenue | $ | 1,799,752 | $ | 1,811,323 | $ | (11,571) | (0.6) | % | 0.8 | % | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | 1,254,487 | 1,250,162 | 4,325 | 0.3 | % | ||||||||||||||||||||||||
| Selling, general and administrative | 114,976 | 181,829 | (66,853) | (36.8) | % | ||||||||||||||||||||||||
| Amortization of intangible assets | 29,639 | 39,446 | (9,807) | (24.9) | % | ||||||||||||||||||||||||
| Operating income | $ | 400,650 | $ | 339,886 | $ | 60,764 | 17.9 | % | (0.6) | % | |||||||||||||||||||
| Operating income % of revenue | 22.3 | % | 18.8 | % | 350 bps | ||||||||||||||||||||||||
DSA revenue decreased $11.6 million primarily due to the sale of certain European Discovery Services businesses of $58.8 million; partially offset by higher revenue for regulated safety assessment services of $33.0 million and the effect of changes in foreign currency exchange rates of $14.3 million, compared to the corresponding period in 2025.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
DSA operating income increased $60.8 million during the nine months ended September 26, 2026 compared to the corresponding period in 2025. DSA operating income as a percentage of revenue for the nine months ended September 26, 2026 was 22.3%, an increase of 350 bps from 18.8% for the corresponding period in 2025. Operating income and operating income as a percentage of revenue increased primarily due to a non-income tax benefit resulting from changes in tax law enacted and completion of certain tax requirements in a foreign jurisdiction, the decrease in amortization of intangible assets related to the European Discovery Divestiture, lower third-party legal costs associated with the investigations by the U.S. government into the NHP supply chain, and lower restructuring activities, including asset impairments recognized within Cost of revenue; partially offset with the decrease in revenue described above, compared to the corresponding period in 2025.
Manufacturing
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change(1) | Impact of FX(1) | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Revenue | $ | 557,514 | $ | 570,014 | $ | (12,500) | (2.2) | % | 1.5 | % | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | 275,885 | 326,967 | (51,082) | (15.6) | % | ||||||||||||||||||||||||
| Selling, general and administrative | 99,197 | 99,004 | 193 | 0.2 | % | ||||||||||||||||||||||||
| Amortization of intangible assets | 6,152 | 100,676 | (94,524) | (93.9) | % | ||||||||||||||||||||||||
Operating income (loss) | $ | 176,280 | $ | 43,367 | $ | 132,913 | 306.5 | % | 6.9 | % | |||||||||||||||||||
Operating income (loss) % of revenue | 31.6 | % | 7.6 | % | 2,400 bps | ||||||||||||||||||||||||
Manufacturing revenue decreased $12.5 million primarily due to the sale of the CDMO business of $55.1 million; partially offset by increased revenue in our Microbial Solutions business of $24.7 million driven primarily by higher demand for endotoxin testing reagents, and higher revenue in the Biologics Testings business of $9.1 million, and the effect of changes in foreign currency exchange rates of $8.8 million, compared to the corresponding period in 2025.
Manufacturing operating income increased $132.9 million during the nine months ended September 26, 2026 compared to the corresponding period in 2025. Manufacturing operating income as a percentage of revenue for the nine months ended September 26, 2026 was 31.6%, an increase of 2,400 bps from 7.6% for the corresponding period in 2025. Operating income and operating income as a percentage of revenue increased primarily due to the benefit from the divestiture of the CDMO business.
RMS
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Revenue | $ | 625,374 | $ | 639,818 | $ | (14,444) | (2.3) | % | 1.8 | % | |||||||||||||||||||
| Cost of revenue (excluding amortization of intangible assets) | 436,360 | 430,435 | 5,925 | 1.4 | % | ||||||||||||||||||||||||
| Selling, general and administrative | 52,940 | 77,509 | (24,569) | (31.7) | % | ||||||||||||||||||||||||
| Amortization of intangible assets | 8,784 | 17,930 | (9,146) | (51.0) | % | ||||||||||||||||||||||||
| Operating income | $ | 127,290 | $ | 113,944 | $ | 13,346 | 11.7 | % | 4.8 | % | |||||||||||||||||||
| Operating income % of revenue | 20.4 | % | 17.8 | % | 260 bps | ||||||||||||||||||||||||
RMS revenue decreased $14.4 million primarily driven by the divestiture of the Cell Solutions business of $12.2 million as well as a decrease in GEMS and RADS service revenue of $6.0 million, large research model product revenue of $8.7 million, and small research model product revenue in North America of $13.7 million; partially offset by an increase in small research model product revenue in China of $11.3 million, IS service revenue of $3.7 million, and the effect of changes in foreign currency exchange rates of $12 million compared to the corresponding period in 2025.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
RMS operating income increased $13.3 million compared to the corresponding period in 2025. RMS operating income as a percentage of revenue for the nine months ended September 26, 2026 was 20.4%, an increase of 260 bps from 17.8% for the corresponding period in 2025. Operating income and operating income as a percentage of revenue increased primarily due to lower site consolidation charges and the gain on sale of certain assets at our Wilmington, Massachusetts site recognized within Selling, general and administrative expenses and a decrease in amortization of intangible assets related to the sale of the Cell Solutions business; partially offset by an increase in asset impairments recognized within Cost of revenue and the lower revenue described above, compared to the corresponding period in 2025.
Unallocated Corporate
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | Impact of FX | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Unallocated corporate | $ | 261,797 | $ | 188,595 | $ | 73,202 | 38.8 | % | 0.4 | % | |||||||||||||||||||
| Unallocated corporate % of revenue | 8.8 | % | 6.2 | % | 260 bps | ||||||||||||||||||||||||
Unallocated corporate costs consist of selling, general and administrative expenses that are not directly related or allocated to the reportable segments. The increase in unallocated corporate costs of $73.2 million, or 38.8%, compared to the corresponding period in 2025 is primarily due to higher acquisition, integration and divestiture costs primarily associated with our previously discussed activities and higher professional services fees related to enterprise-wide efficiency initiatives; partially offset by the $15.3 million gain on sale of certain assets at our Wilmington, Massachusetts site. Costs as a percentage of revenue for the nine months ended September 26, 2026 were 8.8%, an increase of 260 bps from 6.2% for the corresponding period in 2025.
Other Income (Expense)
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | ||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||
| Interest income | $ | 3,023 | $ | 3,923 | $ | (900) | (22.9) | % | |||||||||||||||||||||
| Interest expense | (85,607) | (83,254) | (2,353) | 2.8 | % | ||||||||||||||||||||||||
Other expense, net | (165,954) | (34,675) | (131,279) | 378.6 | % | ||||||||||||||||||||||||
| Total other expense, net | $ | (248,538) | $ | (114,006) | $ | (134,532) | 118.0 | % | |||||||||||||||||||||
Interest expense for the nine months ended September 26, 2026 was $85.6 million, an increase of $2.4 million, or 2.8%, compared to $83.3 million in the corresponding period in 2025 primarily due to non-cash interest expense recognized from the accretion of deferred purchase consideration associated with the Cambodian NHP Supplier acquisition.
Other expense, net for the nine months ended September 26, 2026 was $166.0 million compared to $34.7 million for the corresponding period in 2025 due principally to the loss of $181.7 million in connection with the CDMO and Cell Solutions Divestiture; partially offset by a $15.5 million gain in the fair value of life insurance policies in 2026 compared to a $6.6 million gain in 2025, as well as $4.6 million of venture capital and strategic equity investment net gains in 2026 compared to $31.6 million of venture capital and strategic equity investment net losses in 2025.
Income Taxes
| Nine Months Ended | |||||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ change | % change | ||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Income before income taxes | $ | 193,885 | $ | 194,596 | $ | (711) | (0.4) | % | |||||||||||||||||||||
Provision (benefit) for income taxes | $ | (124,997) | $ | 60,469 | $ | (185,466) | (306.7) | % | |||||||||||||||||||||
| Effective tax rate | (64.5) | % | 31.1 | % | (9,560) bps | ||||||||||||||||||||||||
Income tax benefit for the nine months ended September 26, 2026 was $125.0 million, compared to income tax expense of $60.5 million for the corresponding period in 2025. Our effective tax rate was (64.5)% for the nine months ended September 26, 2026 compared to 31.1% for the corresponding period in 2025. The difference in our effective tax rate in the nine months ended September 26, 2026 compared to the corresponding period in 2025 was primarily attributable to a $201 million tax
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
benefit resulting from the reversal of an unrecognized tax benefit reserve following the enactment of tax legislation and completion of certain tax requirements in a foreign jurisdiction.
Liquidity and Capital Resources
Liquidity and Cash Flows
In general, we require cash to fund our working capital needs, capital expansion, acquisitions, debt payments, lease payments, venture capital and strategic equity investments, restructuring initiatives, and pension obligations. Our principal sources of liquidity have been our cash flows from operations supplemented by long-term borrowings. Based on our current business plan, we believe that our existing funds, when combined with cash generated from operations and our access to financing resources, are sufficient to fund our operations for the foreseeable future.
The following table presents our cash, cash equivalents and short-term investments:
| September 26, 2026 | December 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Cash and cash equivalents: | |||||||||||
| Held in U.S. entities | $ | 4,537 | $ | 4,514 | |||||||
| Held in non-U.S. entities | 195,844 | 209,256 | |||||||||
| Total cash and cash equivalents | $ | 200,381 | $ | 213,770 | |||||||
The following table presents our net cash provided by operating activities:
| Nine Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Net income | $ | 318,882 | $ | 134,127 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities | 182,131 | 448,690 | |||||||||
| Changes in assets and liabilities | (26,126) | 7,309 | |||||||||
| Net cash provided by operating activities | $ | 474,887 | $ | 590,126 | |||||||
Net cash provided by operating activities represents the cash receipts and disbursements related to all of our activities other than investing and financing activities. Operating cash flow is derived by adjusting our net income for (1) non-cash operating items such as depreciation and amortization, stock-based compensation, goodwill impairment, debt financing costs, deferred income taxes, write downs of inventories, provisions of credit losses, long-lived asset impairment changes, gains and/or losses on venture capital and strategic equity investments, gains and/or losses on divestitures, and changes in fair value of contingent consideration, as well as (2) changes in operating assets and liabilities, which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in our results of operations.
During the nine months ended September 26, 2026, our cash flows from operations were $474.9 million compared with $590.1 million for the same period in 2025. The decrease was primarily related to higher payments of variable compensation, specifically annual incentive based bonuses paid during the first quarter, as well as higher professional services fees for enterprise-wide efficiency initiatives and acquisition, integration and divestiture-related activities.
The following table presents our net cash used in investing activities:
| Nine Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Acquisition of businesses and assets, net of cash acquired | $ | (467,254) | $ | — | |||||||
| Capital expenditures | (133,823) | (130,202) | |||||||||
| Investments, net | 4,158 | (6,907) | |||||||||
| Proceeds from surrender of life insurance policies | 58,127 | — | |||||||||
| Proceeds from sale of businesses and assets, net | 176,563 | 17,441 | |||||||||
| Other, net | (7,292) | 3,154 | |||||||||
| Net cash used in investing activities | $ | (369,521) | $ | (116,514) | |||||||
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Investing activities primarily consist of cash used to fund capital expenditures to support the growth of our business, purchases and sales of investments related to our venture capital and strategic equity investment portfolios, and asset and business acquisitions, periodically offset by cash from divestitures.
For the nine months ended September 26, 2026, cash used in investing activities was primarily driven by the acquisition of the Cambodian NHP Supplier and PathoQuest coupled with capital expenditures; partially offset by proceeds from the sale of the European Discovery Services businesses, the sale of certain assets at our Wilmington, Massachusetts site and the surrender of certain Company-owned life insurance policies.
For the nine months ended September 27, 2025, cash used in investing activities was primarily driven by capital expenditures; partially offset by proceeds from divestitures of certain site and business assets.
The following table presents our net cash used in financing activities:
| Nine Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Proceeds from long-term debt and revolving credit facility | $ | 1,420,223 | $ | 1,070,861 | |||||||
Payments on long-term debt, revolving credit facility, and finance lease obligations | (1,081,266) | (1,141,500) | |||||||||
| Proceeds from exercises of stock options | 29,733 | 3 | |||||||||
| Purchase of treasury stock | (324,105) | (360,577) | |||||||||
| Payment of contingent consideration and deferred consideration for acquisitions | (111,394) | (21,822) | |||||||||
| Purchase of remaining equity interest of other redeemable noncontrolling interest | — | (19,140) | |||||||||
| Other, net | (4,274) | (12,687) | |||||||||
| Net cash used in financing activities | $ | (71,083) | $ | (484,862) | |||||||
Financing activities primarily consist of the proceeds and repayments of debt and certain equity related transactions including treasury stock purchases and employee stock option exercises.
For the nine months ended September 26, 2026, net cash used in financing activities was primarily driven by the following activity:
•Net proceeds of $339.0 million, primarily from our Credit Facility
•Treasury stock purchases of $300.0 million associated with our stock repurchase program and $20.8 million due to the netting of common stock upon vesting of stock-based awards in order to satisfy individual statutory tax withholding requirements, along with related excise tax payments
•Payment of $100.0 million associated with deferred payments related to the acquisition of the Cambodian NHP Supplier made during the three months ended September 26, 2026
•Payment of $11.4 million associated with contingent consideration related to the acquisition of Noveprim
For the nine months ended September 27, 2025, net cash used in financing activities was primarily driven by the following activity:
•Net payments of $70.6 million, of which $60.5 million was from our Credit Facility
•Treasury stock purchases of $350.0 million associated with our stock repurchase program and $9.9 million due to the netting of common stock upon vesting of stock-based awards in order to satisfy individual statutory tax withholding requirements
•Payment of $21.8 million associated with contingent consideration related to the acquisition of Noveprim
•Payment of $19.1 million for the remaining 8% equity interest in another redeemable noncontrolling interest
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Financing and Market Risk
We are exposed to market risk from changes in interest rates and currency exchange rates, which could affect our future results of operations and financial condition. We manage our exposure to these risks through our regular operating and financing activities.
Amounts outstanding under our Credit Facility and our Senior Notes were as follows:
| September 26, 2026 | December 27, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Revolving facility | $ | 943,174 | $ | 616,503 | |||||||
| 4.25% Senior Notes due 2028 | 500,000 | 500,000 | |||||||||
| 3.75% Senior Notes due 2029 | 500,000 | 500,000 | |||||||||
| 4.00% Senior Notes due 2031 | 500,000 | 500,000 | |||||||||
| Total | $ | 2,443,174 | $ | 2,116,503 | |||||||
The Credit Facility provides for up to $2.0 billion of multi-currency revolving credit and has a maturity date of December 2029, with no required scheduled payment before that date. The interest rates applicable to the revolving facility are equal to (A) for revolving loans denominated in U.S. dollars, at our option, either the base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus 0.50%, or (3) the one-month adjusted SOFR rate plus 1.0%) or the adjusted SOFR rate, (B) for revolving loans denominated in euros, the adjusted EURIBOR rate and (C) for revolving loans denominated in sterling, the daily simple SONIA rate, in each case, plus an interest rate margin based upon our leverage ratio.
Our off-balance sheet commitments related to our outstanding letters of credit as of September 26, 2026 and December 27, 2025 were $21.7 million and $22.0 million, respectively.
Foreign Currency Exchange Rate Risk
We operate on a global basis and have exposure to foreign currency exchange rate fluctuations for our financial position, results of operations, and cash flows.
While the financial results of our global activities are reported in U.S. dollars, our foreign subsidiaries typically conduct their operations in their respective local currency. The principal functional currencies of our foreign subsidiaries are the Euro, Canadian Dollar, and British Pound. During the nine months ended September 26, 2026, the most significant drivers of foreign currency translation adjustment we recorded as part of Other comprehensive income (loss) were the British Pound, Canadian Dollar, Mauritian Rupee, Euro, Chinese Yuan, and Hungarian Forint.
Fluctuations in the foreign currency exchange rates of the countries in which we do business will affect our financial position, results of operations, and cash flows. As the U.S. dollar strengthens against other currencies, the value of our non-U.S. revenue, expenses, assets, liabilities, and cash flows will generally decline when reported in U.S. dollars. The impact to net income (loss) as a result of a U.S. dollar strengthening will be partially mitigated by the value of non-U.S. expenses, which will decline when reported in U.S. dollars. As the U.S. dollar weakens versus other currencies, the value of the non-U.S. revenue, expenses, assets, liabilities, and cash flows will generally increase when reported in U.S. dollars. For the nine months ended September 26, 2026, our revenue would have decreased by $135.8 million, and our operating income would have decreased by $33.2 million, if the U.S. dollar exchange rate had strengthened by 10%, with all other variables held constant.
We attempt to minimize this exposure by using certain financial instruments in accordance with our overall risk management and our hedge policy. We do not enter into speculative derivative agreements.
Repurchases of Common Stock
On October 29, 2025, our Board of Directors approved a stock repurchase program of $1.0 billion. During the nine months ended September 26, 2026, we repurchased 1.7 million shares of common stock for $300.0 million under the stock repurchase program. As of September 26, 2026, we had $700.0 million remaining on the authorized $1.0 billion stock repurchase program.
Additionally, our stock-based compensation plans permit the netting of common stock upon vesting of restricted stock, restricted stock units, and performance share units in order to satisfy individual statutory tax withholding requirements. During the nine months ended September 26, 2026, we acquired 0.1 million shares for $20.8 million through such netting.
Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements prepared in accordance with generally accepted accounting principles in the U.S. The preparation of these financial statements requires us to make certain estimates and assumptions that may affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses during the reported periods, and the related disclosures. These estimates and
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
assumptions are monitored and analyzed by us for changes in facts and circumstances, and material changes in these estimates could occur in the future. We base our estimates on our historical experience, trends in the industry, and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from our estimates under different assumptions or conditions.
We believe that the application of our accounting policies, each of which require significant judgments and estimates on the part of management, are the most critical to aid in fully understanding and evaluating our reported financial results. Our significant accounting policies are more fully described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for fiscal year 2025 as filed with the SEC on February 18, 2026. There have been no changes in our critical accounting policies during the nine months ended September 26, 2026.
Recent Accounting Pronouncements
For a discussion of recent accounting pronouncements please refer to Note 1, “Basis of Presentation,” in this Quarterly Report on Form 10-Q. Other than as discussed in Note 1, “Basis of Presentation,” we did not adopt any other new accounting pronouncements during the nine months ended September 26, 2026 that had a significant effect on our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
The Company’s exposure to market risk from changes in interest rates and currency exchange rates has not changed materially from its exposure discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025 as filed with the SEC on February 18, 2026. Our interest rate and currency exchange rate risks are fully described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” of our Annual Report on Form 10-K for fiscal year 2025 and in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” herein.
Item 4. Controls and Procedures
(a) Evaluation of Disclosure Controls and Procedures
Based on their evaluation, required by paragraph (b) of Rules 13a-15 or 15d-15, promulgated by the Securities Exchange Act of 1934, as amended (Exchange Act), the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, are effective, at a reasonable assurance level, as of September 26, 2026, to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of our controls and procedures relative to their costs.
(b) Changes in Internal Controls Over Financial Reporting
There were no material changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of the Exchange Act Rules 13a-15 or 15d-15 that occurred during the quarter ended September 26, 2026 that materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
A putative securities class action (Securities Class Action) was filed on May 19, 2023 against the Company and a number of its current/former officers in the United States District Court for the District of Massachusetts. On August 31, 2023, the court appointed the State Teachers Retirement System of Ohio as lead plaintiff. An amended complaint was filed on November 14, 2023 that, among other things, included only James Foster, the then current Chief Executive Officer and David R. Smith, the former Chief Financial Officer as defendants along with the Company. The amended complaint asserted claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act) on behalf of a putative class of purchasers of Company securities from May 5, 2020 through February 21, 2023, alleging that certain of the Company’s disclosures about its practices with respect to the importation of non-human primates made during the putative class period were materially false or misleading. On July 1, 2024, the court dismissed the complaint, denied the plaintiff’s informal request for leave to amend, and entered judgment for defendants. On July 30, 2024, the plaintiff filed a notice of appeal in the United States Court of Appeals for the First Circuit. Oral arguments took place on May 5, 2025. On August 15, 2025, the U.S. Court of Appeals for the First Circuit reversed in part and vacated in part the district court’s dismissal on the pleadings of the securities fraud claims. The case returned to U.S. District Court for the District of Massachusetts. On October 16, 2025, the plaintiff filed a motion to withdraw the State Teachers Retirement System of Ohio as lead plaintiff, due to lack of standing, and substitute Oklahoma Firefighters Pension and Retirement System. On September 2, 2026, the court granted the motion and appointed Oklahoma Firefighters Pension and Retirement System as lead plaintiff. On September 15, 2026, Oklahoma Firefighters Pension and Retirement System filed a second amended complaint that names only the Company and James Foster as defendants, narrows the putative class period to November 30, 2022 through March 15, 2023, and removes the alleged misstatements that the district court and the First Circuit determined were not actionable. On October 15, 2026, the Company filed a motion to dismiss the second amended complaint on the issue left unresolved by the First Circuit’s decision. Plaintiff’s opposition is due by November 16, 2026. While the Company cannot predict the final outcome of this matter, it believes the class action to be without merit and plans to vigorously defend against it. The Company cannot reasonably estimate the maximum potential exposure or the range of possible loss in association with this matter.
On November 8, 2023, a stockholder filed a derivative lawsuit in the U.S. District Court of the District of Delaware asserting claims on the Company’s behalf against the members of the Company’s Board of Directors and certain of the Company’s current/former officers (James Foster, the then current Chief Executive Officer; David R. Smith, a former Chief Financial Officer; and Flavia Pease, the then current Chief Financial Officer). The complaint alleges that the defendants breached their fiduciary duties to the Company and its stockholders because certain of the Company’s disclosures about its practices with respect to the importation of non-human primates were materially false or misleading. The complaint also alleges that the defendants breached their fiduciary duties by causing the Company to fail to maintain adequate internal controls over securities disclosure and compliance with applicable law and by failing to comply with the Company’s Code of Business Conduct and Ethics. On August 2, 2024, a different stockholder filed a lawsuit in the U.S. District Court of Delaware asserting similar derivative claims on the Company’s behalf against members of the Company’s current and former Board of Directors and the same current/former officers based on similar allegations of purportedly misleading disclosures and non-compliance with legal rules and ethics standards in respect of the importation of non-human primates, as well as insider-trading claims against certain of the defendants. Both of these lawsuits are currently stayed by agreement of the parties pending resolution of the motion to dismiss in the Securities Class Action pending in the United States District Court for the District of Massachusetts. While the Company cannot predict the outcome of these matters, it believes the derivative lawsuits to be without merit and plans to vigorously defend against them. The Company cannot reasonably estimate the maximum potential exposure or the range of possible loss in association with these matters.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2025 Form 10-K and in Part II, “Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 28, 2026 (Q1 10-Q) which could materially affect our business, financial condition, and/or future results. The risks described in our 2025 Form 10-K and in our Q1 10-Q are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results. Except for the risk factor disclosed in Part II, Item 1A of the Q1 10-Q, which is hereby incorporated by reference into this Part II, Item 1A of this Form 10-Q, there have been no material changes to the Company’s risk factors since the 2025 Form 10-K.
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information relating to the purchases of shares of our common stock during the three months ended September 26, 2026.
| Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| June 28, 2026 to July 25, 2026 | 165 | $ | 227.14 | — | $ | 700,000 | |||||||||||||||||
| July 26, 2026 to August 22, 2026 | 179 | 232.51 | — | 700,000 | |||||||||||||||||||
| August 23, 2026 to September 26, 2026 | 80 | 288.77 | — | 700,000 | |||||||||||||||||||
| Total | 424 | — | |||||||||||||||||||||
On October 29, 2025, our Board of Directors approved, in aggregate, a stock repurchase program of $1.0 billion. During the three months ended September 26, 2026, we did not repurchase any shares of common stock under our stock repurchase program. As of September 26, 2026, we had $700.0 million remaining on the authorized $1.0 billion stock repurchase program.
Additionally, our stock-based compensation plans permit the netting of common stock upon vesting of restricted stock units, and performance share units in order to satisfy individual statutory tax withholding requirements.
Item 5. Other Information
During the quarter ended September 26, 2026, none of our officers or directors adopted or terminated any contract, instruction, or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K, except as follows:
•On August 13, 2026 , Birgit Girshick , our Chief Executive Officer , terminated two 10b5-1 trading plans. One of the terminated plans was due to expire on August 31, 2026. The other terminated plan was due to become effective on September 1, 2026. The termination of the 10b5-1 trading plans occurred during an open trading window and complied with the Company’s policies on insider trading. Ms. Girshick terminated the plans in order to adopt a new 10b5-1 trading plan with limit orders at higher specified prices.
•On August 18, 2026 , Ms. Girshick adopted a new 10b5-1 trading plan. The adoption of such 10b5-1 trading plan occurred during an open trading window and complied with the Company’s policies on insider trading. The first trade will not occur until November 20, 2026, at the earliest. Ms. Girshick’s plan is for the sale of up to (i) 14,000 shares of our common stock and (ii) 10,814 shares of common stock underlying stock options, based on limit orders at a specified price in accordance with the plan and terminates on the earlier of the date all the shares under the plan are sold or September 1, 2027 .
•On August 27, 2026 , Nancy Andrews , one of our directors , adopted a 10b5-1 trading plan. The adoption of such 10b5-1 trading plan occurred during an open trading window and complied with the Company’s policies on insider trading. The first trade will not occur until November 26, 2026, at the earliest. Dr. Andrew’s plan is for the sale of up to 2,539 shares of common stock underlying stock options, based on limit orders at a specified price in accordance with the plan and terminates on the earlier of the date all the shares under the plan are sold or November 30, 2027 .
•On August 28, 2026 , Victoria Creamer , our Chief People Officer , adopted a 10b5-1 trading plan. The adoption of such 10b5-1 trading plan occurred during an open trading window and complied with the Company’s policies on insider trading. The first trade will not occur until November 27, 2026, at the earliest. Ms. Creamer’s plan is for the sale of up to 12,996 shares of common stock underlying stock options, based on limit orders at a specified price in accordance with the plan and terminates on the earlier of the date all the shares under the plan are sold or August 31, 2027 .
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Item 6. Exhibits
| (a) Exhibits | Description of Exhibits | Filed with this Form 10-Q | Incorporation by Reference | ||||||||||||||
Form | Filing Date | Exhibit No. | |||||||||||||||
31.1 | X | ||||||||||||||||
31.2 | X | ||||||||||||||||
| 32.1+ | X | ||||||||||||||||
| 101.INS | eXtensible Business Reporting Language (XBRL) Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | X | |||||||||||||||
| 101.SCH | XBRL Taxonomy Extension Schema Document | X | |||||||||||||||
| 101.CAL | XBRL Taxonomy Calculation Linkbase Document | X | |||||||||||||||
| 101.DEF | XBRL Taxonomy Definition Linkbase Document | X | |||||||||||||||
| 101.LAB | XBRL Taxonomy Label Linkbase Document | X | |||||||||||||||
| 101.PRE | XBRL Taxonomy Presentation Linkbase Document | X | |||||||||||||||
| + Furnished herein. | |||||||||||||||||
45
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |||||||||||
November 4, 2026 | /s/ BIRGIT GIRSHICK | ||||||||||
Birgit Girshick Chief Executive Officer | |||||||||||
November 4, 2026 | /s/ GLENN COLEMAN | ||||||||||
Glenn Coleman Corporate Executive Vice President and Chief Financial Officer | |||||||||||
46
Exhibit 31.1
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
AND RULE 13a-14(a)/15d-14(a) OF THE EXCHANGE ACT OF 1934
I, Birgit Girshick, Chief Executive Officer of Charles River Laboratories International, Inc. (the registrant) certify that:
1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 26, 2026 of the registrant;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
d. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
/s/ Birgit Girshick | |||||||||||
| November 4, 2026 | Birgit Girshick Chief Executive Officer Charles River Laboratories International, Inc. | ||||||||||
Exhibit 31.2
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
AND RULE 13a-14(a)/15d-14(a) OF THE EXCHANGE ACT OF 1934
I, Glenn Coleman, Corporate Executive Vice President and Chief Financial Officer of Charles River Laboratories International, Inc. (the registrant) certify that:
1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 26, 2026 of the registrant;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
d. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
/s/ Glenn Coleman | |||||||||||
| November 4, 2026 | Glenn Coleman Corporate Executive Vice President and Chief Financial Officer Charles River Laboratories International, Inc. | ||||||||||
Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the quarterly report on Form 10-Q for the quarter ended September 26, 2026 of Charles River Laboratories International, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Birgit Girshick, Chief Executive Officer of the Company, and Glenn Coleman, Corporate Executive Vice President and Chief Financial Officer of the Company, each hereby certifies, to the best of their knowledge and pursuant to 18 U.S.C. Section 1350, that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Birgit Girshick | ||||||||||||||
| November 4, 2026 | Birgit Girshick Chief Executive Officer Charles River Laboratories, Inc. | |||||||||||||
/s/ Glenn Coleman | ||||||||||||||
| November 4, 2026 | Glenn Coleman Corporate Executive Vice President and Chief Financial Officer Charles River Laboratories, Inc. | |||||||||||||
This certification shall not be deemed "filed" for any purpose, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act.