Revenue and Profitability
- Q2 2025 revenue: $143.4 million, up 5% reported and 6% organic YoY per CFO commentary; GAAP net income: -$40.46 million; GAAP EPS: -$0.88. EBITDA: -$18.19 million; EBITDA margin: -12.68%.
- Non-GAAP gross margin: 47.5% (up 130 bps YoY); SMS gross margin: 49.7% (up 340 bps YoY); Multiomics gross margin: 44.9% (down 140 bps YoY).
- Operating income: -$18.19 million; Operating margin (non-GAAP): not explicitly stated, but GAAP operating margin is -12.68% based on EBIT/Revenue; management cites margin expansion of ~300–400 bps via transformation.
- Net income margin: -28.21%; Earnings per share (GAAP and non-GAAP): -$0.88 per share.
- Free cash flow (quarter): $7.0 million; Operating cash flow: $13.57 million; capital expenditures: $6.58 million; FCF yield implied by quarterly figures supports YTD FCF ~ $26 million.
Liquidity, Balance Sheet and Cash Flow
- Cash and cash equivalents and marketable securities at quarter end: $540.0 million; Net debt: -$199.9 million (net cash position).
- Total assets: $2,041.9 million; Total liabilities: $340.4 million; Total stockholders’ equity: $1,701.5 million; Goodwill and intangible assets total $794.2 million (goodwill $683.0 million, intangibles $111.2 million).
- Current ratio: 3.22; Quick ratio: 2.84; Cash conversion cycle: 145 days; Debt-to-capitalization: 3.1%; Long-term debt: $53.7 million.
Segment Highlights and Mixed Drivers
- Sample Management Solutions (SMS): Revenue $80.0 million, +8% YoY (reported and organic). Drivers: Consumables, Instruments, Product Services, Clinical BioStores, and Sample Storage; offset by declines in automated stores and Cryostores. Non-GAAP gross margin: 49.7% (up 340 bps YoY).
- Multiomics: Revenue $64.0 million, +2% reported and +3% organic. Growth led by Next Generation Sequencing (NGS), with 20% YoY growth in NGS and improving pricing with higher volumes; China +5% organic growth. Gene Synthesis down 10% YoY; Sanger Sequencing down 18% YoY; Plasmid-EZ growth more than doubles YoY. Multiomics non-GAAP gross margin: 44.9% (down 140 bps YoY).
- Durable trends: NGS pricing stabilization and increased volumes; Plasmid-EZ adoption expanding share; regional execution in China yielding resilience despite macro headwinds.
Capital Allocation and Guidance
- Management reaffirmed 2025 guidance: organic revenue growth 3–5% for the full year; Multiomics to grow in the low-single digits and SMS in the mid-single digits; 300 bps of Adjusted EBITDA margin expansion YoY.
- Finance leadership commentary highlighted ongoing macro countermeasures including tariff mitigation and NIH funding headwinds (estimated 1% revenue headwind) with near-zero EBITDA impact after countermeasures; weekly executive reviews to adjust tactics.
- Cash deployment: potential tuck-in acquisitions to accelerate growth, continued investment in digital capabilities (e-commerce, data analytics), and openness to buybacks if valuations remain compelling. The CFO reaffirmed a long-term free cash flow target of roughly $100 million per LRP; current year FCF run-rate supports optimistic cash generation alongside a strong balance sheet.
- ABS rollout and structural reorganizations: 10% workforce reduction QoQ, reallocation of centralized resources to operating units, and ongoing Kaizens aimed at reducing quote-to-delivery cycle, order-to-cash cycle, and automating payment processes in GENEWIZ.