Revvity (RVTY) Economic Moat Analysis—

Moat—

Insufficient evidence for every rubric criterion; no category score is inferred.

structural advantage · 2/4 · Patents, proprietary know-how and named assay technologies establish differentiated assets rather than a purely generic offering. However, capable rivals also possess intellectual property and development resources. The passages do not establish exclusivity, superior customer outcomes or the revenue protected, supporting a mixed structural assessment.

durability · — · The catalog establishes existing intellectual property and ongoing technological change, but supplies no economically relevant patent lives, sustained competitive-share record or demonstrated persistence of customer switching barriers. These omissions prevent grading the duration of an economic advantage; technological risk alone does not establish realized erosion.

customer dependency · 2/4 · Actual software renewals, noncancelable subscriptions and customer use in development and manufacturing provide indirect evidence of recurring relationships and workflow relevance. Remaining performance obligations are immaterial, and neither migration costs nor renewal rates are disclosed. Dependency is therefore plausible and bounded rather than strongly demonstrated.

erosion resilience · 2/4 · Pricing actions partly offset 2024 gross-margin pressure, and fiscal 2025 continuing operating margin declined only slightly. Nevertheless, 2025 tariffs imposed a material cost and second-quarter 2026 operating income fell despite refunds. These actual outcomes support mixed resilience without proving competitive displacement or durable protection.

Pricing power50

Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.

realized pricing · 2/4 · Pricing actions partly offset gross-margin declines in both fiscal 2023 and fiscal 2024, establishing realized benefits. Their contribution is not quantified separately from productivity, mix or volume. The evidence supports some pricing effectiveness, but cannot establish sustained price realization or customer acceptance without demand trade-offs.

retention · 2/4 · Software contract renewals in the operating discussion demonstrate repeat demand, while noncancelable subscriptions and storage contracts provide limited commitment. This is indirect operating and contractual evidence rather than a measured retention rate. Renewal timing and immaterial remaining obligations limit conclusions about breadth, duration and renewal economics.

margin resilience · 2/4 · Fiscal 2025 GAAP continuing operating margin was 12.5%, versus 12.6% in 2024, despite tariff pressure. However, second-quarter 2026 operating income declined to $89 million from $91 million while including $16 million of tariff refunds. Resilience is mixed and cannot be attributed principally to pricing.

contractual freedom · 2/4 · The supplied Canadian sales terms permit adjustments for specifications, quantities and specified cost factors, demonstrating conditional pricing freedom. Their geographic and separately negotiated-quotation scope limits generalization. The disclosed need to price competitively further constrains economic discretion; company-wide repricing rights and customer termination provisions remain unknown.

Predictability72

5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.

Nondeclining revenue years (%)

50.00

Revenue growth volatility (pp)

15.25

Positive FCF years (%)

100.00

FCF margin volatility (pp)

8.51

observedAnnualPeriods

5.00

Financial strength31

Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.

debtFcfGrade

23.98

netDebtEbitGrade

0.00

interestCoverageGrade

26.08

currentRatioGrade

74.60

Debt / FCF (x)

6.32

Net debt / operating income (x)

6.45

Interest coverage (x)

3.87

Current ratio (x)

1.68

Capital allocation75

Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.

3-year pre-tax operating return (%)

3.27

3-year average dilution (%)

-2.59

3-year average SBC / revenue (%)

1.23

cashConversionGrade

88.07

Management56

Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.

capital discipline · 2/4 · First-half 2026 continuing operating cash generation rose to $317.8 million, alongside $86.9 million of program repurchases. The completed acquisition required $72 million at closing plus up to $8 million contingent consideration through 2028. Cash generation supports capacity, but debt constraints and unproven investment returns warrant a mixed grade.

incentive alignment · 2/4 · Half of fiscal 2025 long-term incentives granted depend on financial performance. Actual ownership-guideline compliance as of February 17, 2026, clawbacks and hedging restrictions support alignment. A legacy single-trigger vesting provision weakens consistency. Granted award conditions do not establish realized vesting outcomes or exceptional shareholder alignment.

execution · 2/4 · Fiscal 2025 revenue and continuing operating income increased, and first-half 2026 continuing operating cash improved. These are indirect operating evidence of execution, without proving management causation. Second-quarter operating income fell despite tariff refunds, and first-half severance actions affected approximately 5% of the workforce, indicating uneven outcomes.

governance · 3/4 · Nine independent directors out of ten, an independent chair, majority voting and existing proxy access establish strong formal governance. Actual one-year director elections and approval of the 25% special-meeting threshold were confirmed after the annual meeting. Ownership and nomination thresholds constrain access; these arrangements do not demonstrate exceptional oversight outcomes.