📢 Earnings Summary — TECH

Bio-Techne delivered resilient profitability in a challenging quarter, with revenue down 1% organically but adjusted operating margin expanding 90 bps to 29.9%. Large pharma demand remained strong, China posted a second straight quarter of growth, and consumables pull-through and key instrument platforms maintained momentum. Weakness stemmed mainly from clinical timing in cell therapy and ongoing biotech funding softness, though management cited multiple signs of stabilization across biotech and U.S. academia. Product innovation continued with spatial and proteomic launches and diagnostics menu expansion, and the company remains on track for a future Wilson Wolf acquisition. Cash generation and the balance sheet remain solid, with M&A still a priority. Overall tone was constructive but tempered by funding and policy uncertainties and near-term cell therapy lumpiness.

📈 Growth Highlights

• Large pharma revenue up low double digits; emerging biotech down high single digits with early signs of stabilization
• China delivered a second consecutive quarter of growth, driven by ProteinSimple instruments and spatial biology; growth not tariff-driven
• ProteinSimple consumables pull-through returned to double-digit growth; Maurice platform grew for the sixth straight quarter
• Spatial biology: RNAscope grew low single digits; COMET bookings up double digits year-over-year
• Diagnostics grew mid-single digits; core RUO reagents were flat year-over-year

🔨 Business Development

• Progress toward eventual acquisition of the remaining 80% of Wilson Wolf by end of calendar 2027 or sooner, subject to milestones
• Announced ProximityScope launch to interrogate functional protein–protein interactions in spatial workflows
• Upcoming ultrasensitive Simple Plex (Ella) cartridge enabling 2–5x sensitivity improvement, with femtogram-level detection
• Continued commercial momentum of Simple Western (Leo) exceeding revenue and placement expectations in first three quarters
• Launched AmplideX PML-RARA qPCR kit for APL; broadened hematology menu alongside QuantideX BCR-ABL
• Expanded agreement with Oxford Nanopore; Carrier Plus panel targets 11 hard-to-sequence genes in a single workflow

💵 Financial Performance

• Revenue $286.6M, down 1% reported and organic; FX +1% and businesses held for sale -1%
• Excluding cell therapy timing, organic growth was +1%
• Adjusted EPS $0.42 (flat YoY); GAAP EPS $0.24 (up from $0.21)
• Adjusted gross margin 70.2% (up from 69.5%); adjusted operating margin 29.9% (up 90 bps)
• Adjusted SG&A 32.1% of revenue; R&D 8.2%; adjusted tax rate 22.3% (+80 bps)
• Net interest expense $1.8M (up $0.7M) due to hedge expirations; other adjusted non-op income $2.7M (down $1.3M)
• Geography: Americas down mid-single digits; EMEA and Asia up low single digits
• End markets: Biopharma down mid-single digits overall; excluding largest cell therapy customers, biopharma grew low single digits; academia flat
• Protein Sciences: sales $202.2M (-1% reported); organic -3% (FX +2%); excl. cell therapy timing, +1%; operating margin 38.4% (-100 bps)
• Diagnostics & Spatial: sales $79.5M (-4% reported); Exosome divestiture -7% to reported growth; organic +3%; operating margin 11.2% (up from 5.1%)

🏦 Capital & Funding

• Operating cash flow $27.6M; capex $5.4M
• Returned $12.4M via dividends; average diluted shares 156.4M (-3% YoY)
• Cash $145M; bank debt $300M (down $46M sequentially); leverage well below 1x EBITDA
• M&A remains a top capital allocation priority
• Future acquisition of Wilson Wolf remains planned contingent on milestones

🧠 Operations & Strategy

• Disciplined cost management and productivity initiatives drove margin expansion despite volume deleverage
• Focus on scaling growth pillars: ProteinSimple instruments, spatial biology, diagnostics menu expansion
• Strengthening consumables-driven model with higher utilization of installed base
• Integrated cell therapy manufacturing solution strategy combining Wilson Wolf G-Rex bioreactors with Bio-Techne GMP reagents, media, and ProPak delivery
• Sustainability progress: ~40% reduction in Scope 1 & 2 emissions; 100% renewable electricity at largest site

🌍 Market Outlook

• Biotech funding down ~19% YTD through October, but sequential improvement in Q1 and strongest funding month in October
• Potential tailwinds from lower interest rates, increased M&A, and pharma in-licensing
• Large pharma pricing and onshoring agreements with U.S. administration expected to support biopharma demand
• NIH September outlays +8% YoY; FY26 NIH budget directionally flat per House/Senate bills; U.S. academic demand showing stabilization
• China expected to return to more stable growth; improvement driven by underlying demand
• Cell therapy Fast Track designations reduce near-term reagent demand but typically precede commercial ramp post-approval

⚠ Risks & Headwinds

• Emerging biotech funding softness and spending caution
• U.S. NIH budget uncertainty amid government shutdown risk
• Cell therapy revenue lumpiness tied to clinical-stage timing and accelerated pathways
• Lingering tariff concerns and promotional activity impacting margins
• Volume deleverage in certain segments; FX and interest expense variability following hedge expirations

AI-generated earnings recap sourced from company results & conference call observations. Not investment advice — verify with official filings.