It's at the Raymond James Institutional Investor Conference. I'm Andrew Cooper. I cover diagnostics and life science tools here for Raymond James. Happy to be joined by the QuidelOrtho team. We have CEO Brian Blaser, CFO Joe Busky, and Juliet Cunningham and I are in the audience as well. Brian is gonna give us a presentation, and then we'll head downstairs for a breakout in Amarante One once we're done. With that, thanks, Brian.
All right. Thanks, Andrew, and good afternoon to all of you here in Orlando and as well those of you who are joining us via the webcast. Go to the next slide. Before I get started, I wanna point out that during our presentation, we'll be discussing forward-looking statements and non-GAAP measures. We encourage you to review our SEC filings for detailed information about potential risks. I'd like to quickly outline what I'd like to cover today. I'll begin with why we hold differentiated positions in some of the most attractive segments in diagnostics, as well as how we are well-positioned to generate sustainable long-term growth through innovation, execution, and disciplined capital management.
Our portfolio spans the full continuum of care, servicing reference labs, hospitals, physicians' offices, and clinics. This diversification provides stability while also giving us exposure to a broad set of testing environments and demand drivers. We also have one of the largest installed bases in the industry with over 145,000 instruments placed in 140 countries across 75,000 customers. We have five commercial regions, with North America being our largest at 55% of our revenue, and we have good solid growth across all of our geographies. Our business is united by a shared durable operating model. These are all razor blade platforms focused on high-value patient-critical testing that generates consistent consumables demand.
In fact, roughly 96% of our revenue today is recurring, and that level of recurring revenue provides meaningful visibility, predictability, and a strong foundation for strong margin expansion and cash generation. Next slide. Stepping back to the macro environment, growth in diagnostic testing is underpinned by a number of important long-term secular drivers that are impacting all of us. We're all getting older. We have an aging population, continued decentralization of healthcare, expanding investment in emerging markets, and a rising focus on wellness and preventative care. Those forces together are reshaping healthcare demand and driving steady long-term utilization of diagnostic solutions. Our products are positioned to benefit from these trends. We support customers across the full patient journey, from virtually every care setting around the world.
With that context in mind, I'm gonna turn to the specific market segments that we're targeting and why we believe they offer compelling opportunities for sustained growth. Next slide. Oh, you're there. Within the broader IVD market, we're focused on roughly $50 billion of highly attractive market segments. Our portfolio spans four key areas, and what makes it so compelling is the strength and quality of each of the businesses within those markets. Our labs business, which was 55% of our total revenue last year, is a highly stable, predictable growth driver. It's built on long 5-7-year contracts, renewal rates in the mid-nineties, strong win ratios on new business, and consistently high customer satisfaction.
Importantly, our Net Promoter Score in that business, which is a measure of customer satisfaction, is very high, and this business consistently grows in the mid-single digits growth range. Our immunohematology business is number one globally, while it's a smaller market at $2 billion, it's a steady low single-digit growth business with an opportunity to grow in the mid-single digits with some further investment over time. In point of care, which is a $9 billion market segment, we offer a full menu of near-patient tests in respiratory as well as cardiac immunoassays. We have a leading position in U.S. respiratory for flu, RSV, strep, and COVID testing, we are a leader in point-of-care cardiac testing. Lastly, the adoption of new technologies is an important long-term driver.
The molecular diagnostics market today is 2.5x what it was in 2019. It continues to expand, which is why we wanna capture that growth opportunity. We're very excited about expanding our presence in the molecular market, which again, is roughly $9 billion in size and growing in the high single digits. As we previously announced, we're in the process of acquiring Lex Diagnostics based in the U.K., and I'll cover Lex and that platform in more detail shortly. For now, I'd like to go a little deeper and touch on the key platforms that are driving our growth today. In the labs business, our VITROS product line offers scalable and integrated systems to meet the needs of our customers, primarily in reference in hospital labs.
Our sweet spot is the small to mid-size hospitals, and I would say that while it shows up there that we're fifth overall behind a lot of the higher throughput competitors, our share is much higher in the mid-size hospital segment. We have more than 15,000 systems installed worldwide. Among several planned product launches this year, we expect to launch the VITROS 450, which is the first new VITROS platform since 2019 and the successor to the VITROS 350. It's built on our waterless dry slide chemistry, and the 450 is a fully modernized system designed primarily for key OUS markets. We expect to launch that product later in the first half of this year. Early customer feedback on this system has been very positive and impressive.
We're also partnering to provide new innovative immunoassay platforms for OUS markets that will expand our menu with more than 25 new assays on these systems not currently available on our VITROS platform today for a total menu of over 70 assays on these new partner systems. Together with the 450, this creates a combined offering that provides us with an opportunity to compete for additional full menu tenders in attractive OUS segments. In our immunohematology business, our Vision Swift and Vision MAX platforms continue their leadership for blood typing and antibody screening worldwide. Go to the next one. In point of care, our Sofia platform has more than 100,000 global cumulative placements and continues to be the our workhorse platform for flu, RSV, strep, COVID, and a number of other tests.
We continue to have the leading respiratory position in the U.S., and our Flu COVID combo test consistently represents greater than 50% of flu revenue during the respiratory season. In molecular, we're pleased that Lex Diagnostics received its 510(k) and CLIA waiver clearances, we are in the process of currently working through the acquisition process there. Lex is designed to deliver speed and sensitivity with true PCR chemistry in a fully automated swab-to-result system at the point of care. It's gonna make it one of the fastest and most intuitive PCR platforms on the market. Once the acquisition is complete, we expect to commercialize the platform with an initial launch in time for the 2026, 2027 respiratory season then scale into 2027. We're really excited about this growth opportunity here.
I believe this offers us one of our best, greatest opportunities for near-term growth on the top line as well as being a strong margin contributor. The next slide. 2025 was a critical year for us. We made real progress with innovation in 2025, and a great example of that is the recent clearance and launch of our High-Sensitivity Troponin Assay on the VITROS platform. It adds an important capability to our menu that supports faster, more confident decision-making in emergency and acute care settings. Looking ahead, this year will be an important product year for us with multiple platform launches and meaningful menu expansion. These are driven by a mix of organic R&D, strategic partnerships, and our pending acquisition of Lex Diagnostics.
Together, you know, these new products from systems to informatics and automation are designed to deliver strong customer value and drive meaningful pull-through across our installed base. Looking ahead, our strategy is anchored in four pillars: delivering an exceptional customer experience, executing with discipline, and driving profitable, sustainable growth with one unified QO team. We start from a very strong foundation. Our labs and immunohematology business provide stable, predictable growth supported by long contracts and deep customer relationships. You add to that our increased focus on commercial execution with a global team that's committed to driving profitable growth and lifetime customer value. We've also started work on a series of next-generation platforms and incremental menu expansion, while at the same time continuing to strengthen our cost structure and enhance operational efficiency.
Finally, we'll continue to grow organically and also with targeted partnerships and tuck-in M&A where possible. Taken together, these initiatives give us multiple levers to deliver sustainable long-term growth and above the mid-single digits. I do wanna mention we've made a number of changes to our leadership team this year. We have an almost entirely new team in place, and I'm very grateful for the leadership that they are bringing to our organization. Each one of our team here brings exceptional expertise from their field to help me shape our strategy, strengthen our culture of discipline, accountability, process rigor, and teamwork. You know, together, we really are building a new QO team that is focused on delivering our results and achieving our objectives.
I'll spend a few minutes with our full year 2025 results and 2026 financial guidance. We had solid execution by the team in 2025, delivering on our financial guidance with $2.73 billion in reported revenue, which was 5% growth excluding COVID and donor screening revenue. We delivered adjusted EBITDA of $597 million with 22% margin, which was a 240 basis point increase compared to the prior year. Adjusted diluted EPS was $2.12 for the full year, representing growth of 15% year-over-year. In addition, we strengthened the balance sheet by refinancing our debt. We also achieved $140 million in cost savings by the end of 2025.
You can see here our full year 2026 guidance, which shows our continued expectations for growth and margin expansion of around 130 basis points, reflecting our cost discipline and business efficiency initiatives. I would say that, you know, we introduced a free cash flow metric to our guidance this year, which reflects our intense focus on generating higher cash flow and reducing our debt. Speaking of which, in 2026, we expect to generate significantly more cash, notably moving from -$77 million last year to +$140 million at the midpoint of our guidance. This is a $217 million increase at the midpoint.
This positions us to achieve our goal of a 50% run rate for free cash flow conversion in the second half of 2027. Our continued focus on profitable growth includes commercial execution in profitable markets, additional cost savings in facility consolidation and direct procurement, with the goal of expanding adjusted EBITDA to the mid to high twenties by mid-2027. I've already discussed the importance of increasing cash flow, but I would add that we have added a significant cash flow goal to our company-wide incentive plan in 2026. There's a lot of focus on achievement with that in place across our team. The ultimate goal here is for us to reduce our net debt leverage to our targeted 2.5x-3.5x by 2027.
I'll sort of wrap things up here and kind of bring it all together. On the right you can see how we are thinking about positioning our market position and our long term growth profile. Last year, we delivered 5% revenue, excluding COVID and donor screening revenue, and we expect to continue growing in the mid-single digits. We're operating in the right markets, supported by strong underlying fundamentals and an expanding global product portfolio. Importantly, we're seeing clear progress in profitability, cash flow conversion and net debt leverage. Over the long term, we believe we are well-positioned to grow beyond the mid-single digits with multiple opportunities still ahead of us. With that, I'll wrap things up. Thank you all for your attention and your interest in QuidelOrtho. Thank you.
Great. We'll head down to Amarante One for the breakout. Thank you.