Bio-Techne Releases First Quarter Fiscal 2026 Results

, /PRNewswire/ -- Bio-Techne Corporation (NASDAQ: TECH) today reported its financial results for the first quarter ended September 30, 2025. First Quarter FY2026 Highlights First quarter reported and organic revenue decreased 1% to $286.6 million. GAAP earnings per share (EPS) was $0.24 versus $0.21 for first quarter 2025. Delivered adjusted EPS of $0.42 compared to $0.42 for first quarter 2025. Completed the divestiture of the Exosome Diagnostics business including the ExoDx Prostate test (EPI) as the Company emphasizes investment and commercial priorities on non-CLIA based product lines in their growth pillars. Ongoing productivity and cost containment initiatives led to 29.9% adjusted operating margin, an increase of 90 basis points compared to the prior year period. "The Bio-Techne team once again executed with focus and agility in a dynamic operating environment," said Kim Kelderman, President and Chief Executive Officer of Bio-Techne. "During the quarter, we observed encouraging signs of stabilization in our US academic end market and continued strength from large pharmaceutical customers, while funding headwinds persisted for emerging biotech companies. Among our growth pillars, ProteinSimple's analytical solutions extended its growth momentum and Spatial Biology stabilized while showing early signs of accelerating growth going forward. In Cell Therapy, we are very excited that a few of our largest customers received Fast Track Designation by the FDA, enabling shortened clinical development and approval timelines. However, these advancements have resulted in short- and intermediate-term order timing headwinds for our GMP proteins business." Kelderman added, "Our differentiated portfolio of advanced life science tools, reagents, and diagnostic products continues to enable breakthroughs in science and medicine. With our world-class team, sharpened strategic focus, innovation capabilities and sector-leading financial profile, Bio-Techne remains well positioned to deliver long-term value for all stakeholders." Conference Call Bio-Techne will host an earnings conference call today, November 5, 2025 at 8:00 a.m. CST. To listen, please dial 1-800-274-8461 or 1-203-518-9814 for international callers, and reference conference ID TECHQ1. The earnings call can also be accessed via webcast through the following link https://investors.bio-techne.com/ir-calendar. A recorded rebroadcast will be available for interested parties unable to participate in the live conference call by dialing 1-844-512- 2921 or 1-412-317-6671 (for international callers) and referencing Conference ID 11160247. The replay will be available from 11:00 a.m. CST on Wednesday, November 5, 2025, until 11:00 p.m. CST on Friday, December 5, 2025. First Quarter Fiscal 2026 Revenue Net sales for the first quarter decreased 1% to $286.6 million. Organic revenue decreased 1% compared to the prior year, with foreign currency exchange having a favorable impact of 1% and businesses held-for-sale having an unfavorable impact of 1%. GAAP Earnings Results GAAP EPS was $0.24 per diluted share, compared to $0.21 in the same quarter last year. GAAP operating income for the first quarter of fiscal 2026 increased 19% to $47.7 million, compared to $40.0 million in the first quarter of fiscal 2025. GAAP operating margin was 16.6%, compared to 13.8% in the first quarter of fiscal 2025. Current year GAAP operating margin was favorably impacted by a reduction in restructuring charges from the prior year. Non-GAAP Earnings Results Adjusted EPS was $0.42 per diluted share compared to $0.42 in the same quarter last year. Adjusted operating income for the first quarter of fiscal 2026 was $84.2 million, compared to $83.2 million in the first quarter of fiscal 2025. Adjusted operating margin was 29.9%, compared to 29.0% in the first quarter of fiscal 2025. Adjusted operating margin was favorably impacted by productivity initiatives, foreign exchange, and the Exosome Diagnostics divestiture. Segment Results Management uses adjusted operating results to monitor and evaluate performance of the Company's business segments, as highlighted below. Protein Sciences Segment The Company's Protein Sciences segment is one of the world's leading suppliers of specialized proteins such as cytokines and growth factors, immunoassays, antibodies and reagents, to the biopharmaceutical and academic communities. Additionally, the segment provides an array of platforms essential in various areas of protein analysis. The Protein Sciences segment's first quarter fiscal 2026 net sales were $202.2 million, which decreased 1% from sales of $204.5 million for the first quarter of fiscal 2025. As of December 31, 2023, a business within the Protein Sciences segment met the criteria as held-for-sale; this held-for-sale business has been excluded from the segment's fiscal 2025 operating results. Organic revenue for the segment decreased 3%, with foreign currency exchange having a favorable impact of 2%. The Protein Sciences segment's operating margin was 38.4% in the first quarter of fiscal 2026 compared to 39.4% in the first quarter of fiscal 2025. The segment's operating margin decreased primarily due to a reduction in volume leverage. Diagnostics and Spatial Biology Segment The Company's Diagnostics and Spatial Biology segment develops and provides spatial biology products, carrier screening, and oncology kits. The Diagnostics and Spatial Biology segment also provides blood chemistry and blood gas quality controls, hematology instrument controls, immunoassays, and other bulk and custom reagents for the in vitro diagnostic market. The Diagnostics and Spatial Biology segment's first quarter fiscal 2026 net sales were $79.5 million, a decrease of 4% from $83.2 million for the first quarter of fiscal 2025. As of June 30, 2025, a business within the Diagnostics and Spatial Biology segment met the criteria as held-for-sale; this held-for-sale business has been excluded from the segment's fiscal 2026 operating results. Organic revenue growth was 3% for the first quarter of fiscal 2026, with foreign currency exchange having an immaterial impact. The held-for-sale business had an unfavorable impact of 7%. The Diagnostics and Spatial Biology segment's operating margin was 11.2% in the first quarter of fiscal 2026 compared to 5.1% in the first quarter of fiscal 2025. The segment's operating margin increased due to volume leverage and the Exosome Diagnostics divestiture. About Bio-Techne Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences company providing innovative tools and bioactive reagents for the research and clinical diagnostic communities. Bio-Techne products assist scientific investigations into biological processes and the nature and progress of specific diseases. They aid in drug discovery efforts and provide the means for accurate clinical tests and diagnoses. With thousands of products in its portfolio, Bio-Techne generated over $1.2 billion in net sales in fiscal 2025 and has approximately 3,100 employees worldwide. For more information on Bio-Techne and its brands, please visit www.bio-techne.com. Forward Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements use words, and variations of words, such as "will," "plan," "continue," "believe," "outlook," "expect," and "predict." These statements are made as of the date of this press release, are based on current expectations of future events, and thus are inherently subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond the Company's control. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations and projections. These risks, uncertainties, and other factors include, without limitation: the effect of new branding and marketing initiatives, the integration of new businesses and leadership, the introduction and acceptance of new products, the funding and focus of the types of research by the Company's customers, the impact of the growing number of producers of biotechnology research products and related price competition, general economic conditions, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships. For additional information concerning these risks, uncertainties, and other factors, see the section titled "Risk Factors" in the Company's most recent annual report on Form 10-K as filed with the Securities and Exchange Commission. We undertake and we expressly disclaim any obligation to update or revise any forward-looking statements due to new information, changed assumptions, or future events, except as required by law. Investors are cautioned not to place undue reliance on forward-looking statements. Non-GAAP Financial Measures The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). This press release contains financial measures that have not been calculated in accordance with GAAP. These non-GAAP measures include: Organic revenue and organic revenue growth Adjusted gross margin Earnings before interest, taxes, depreciation, and amortization (EBITDA) Adjusted EBITDA Adjusted operating income Adjusted operating margin Adjusted tax rate Adjusted net earnings Adjusted diluted earnings per share These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company's use of these measures, are presented in the attached pages. Contact: David Clair, Vice President, Investor Relations & Corporate Development [email protected] 612-656-4416 BIO-TECHNE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited) Quarter ended September 30, 2025 2024 Net sales $ 286,555 $ 289,458 Cost of sales 98,443 106,441 Gross margin 188,112 183,017 Operating expenses: Selling, general and administrative 116,213 119,161 Research and development 24,241 23,869 Total operating expenses 140,454 143,030 Operating income 47,658 39,987 Other income (expense) 333 184 Earnings before income taxes 47,991 40,171 Income taxes 9,806 6,571 Net earnings $ 38,185 $ 33,600 Earnings per share: Basic $ 0.25 $ 0.21 Diluted $ 0.24 $ 0.21 Weighted average common shares outstanding: Basic 155,464 158,531 Diluted 156,362 161,115 BIO-TECHNE CORPORATION RECONCILIATION OF ADJUSTED GROSS MARGIN AND ADJUSTED GROSS MARGIN PERCENTAGE (In thousands) (Unaudited) Quarter Ended September 30, 2025 2024 Total consolidated net sales $ 286,555 $ 289,458 Business held-for-sale(1) 5,439 2,303 Revenue from recurring operations $ 281,116 $ 287,155 Gross margin - GAAP $ 188,112 $ 183,017 Gross margin percentage - GAAP 65.6 % 63.2 % Identified adjustments: Costs recognized upon sale of acquired inventory $ — $ 188 Amortization of intangibles 9,439 11,779 Stock-based compensation, inclusive of employer taxes 385 272 Restructuring and restructuring-related costs 2,079 4,898 Impact of business held-for-sale(1) (2,581) (558) Adjusted gross margin $ 197,434 $ 199,596 Adjusted gross margin percentage(2) 70.2 % 69.5 % 1) September 30, 2024 amounts relate to the Protein Sciences segment business that met the held-for-sale criteria on December 31, 2023. September 30, 2025 amounts relate to the Diagnostics and Spatial Biology segment business that met the held-for-sale criteria on June 30, 2025. 2) Adjusted gross margin percentage excludes both revenue and gross margin for the businesses that met the held-for-sale criteria during the respective periods. BIO-TECHNE CORPORATION RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA (In thousands) (Unaudited) Quarter Ended September 30, 2025 2024 Net earnings $ 38,185 $ 33,600 Net interest expense (income) 1,962 1,250 Depreciation and amortization 24,340 28,137 Income taxes 9,806 6,571 EBITDA 74,293 69,558 Amortization of Wilson Wolf intangible assets 2,490 2,490 Acquisition related expenses and other 3,508 1,862 Certain litigation charges 2,408 292 Stock-based compensation, inclusive of employer taxes 12,096 10,637 Restructuring and restructuring-related costs 7,511 11,022 Investment gain and other non-operating income (2,146) — Recovery of assets held-for-sale (6,789) — Impact of business held-for-sale(1) 2,573 (148) Adjusted EBITDA $ 95,944 $ 95,713 1) September 30, 2024 amounts relate to the Protein Sciences segment business that met the held-for-sale criteria on December 31, 2023. September 30, 2025 amounts relate to the Diagnostics and Spatial Biology segment business that met the held-for-sale criteria on June 30, 2025. BIO-TECHNE CORPORATION RECONCILIATION OF ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGIN PERCENTAGE (In thousands) (Unaudited) Quarter Ended September 30, 2025 2024 Total consolidated net sales $ 286,555 $ 289,458 Business held-for-sale(1) 5,439 2,303 Revenue from recurring operations $ 281,116 $ 287,155 Operating income - GAAP $ 47,658 $ 39,987 Operating income percentage - GAAP 16.6 % 13.8 % Identified adjustments: Amortization of intangibles 15,350 19,741 Acquisition related expenses and other 3,351 1,701 Certain litigation charges 2,408 292 Stock-based compensation, inclusive of employer taxes 12,096 10,637 Restructuring and restructuring-related costs 7,511 11,022 Recovery of assets held-for-sale (6,789) — Impact of business held-for-sale(1) 2,573 (148) Adjusted operating income $ 84,158 $ 83,232 Adjusted operating margin percentage(2) 29.9 % 29.0 % 1) September 30, 2024 amounts relate to the Protein Sciences segment business that met the held-for-sale criteria on December 31, 2023. September 30, 2025 amounts relate to the Diagnostics and Spatial Biology segment business that met the held-for-sale criteria on June 30, 2025. 2) Adjusted gross margin percentage excludes both revenue and gross margin for the businesses that met the held-for-sale criteria during the respective periods. BIO-TECHNE CORPORATION RECONCILIATION OF NON-GAAP ADJUSTED TAX RATE (In percentages) (Unaudited) Quarter Ended September 30, 2025 2024 GAAP effective tax rate 20.4 % 16.4 % Discrete items 6.1 7.2 Long-term GAAP tax rate 26.5 % 23.6 % Rate impact items Stock based compensation (2.7) % (2.8) % Other (1.5) 0.7 Total rate impact items (4.2) % (2.1) % Non-GAAP adjusted tax rate 22.3 % 21.5 % BIO-TECHNE CORPORATION RECONCILIATION OF ADJUSTED NET EARNINGS AND ADJUSTED EARNINGS PER SHARE (In thousands, except per share data) (Unaudited) Quarter Ended September 30, 2025 2024 Net earnings before taxes - GAAP $ 47,991 $ 40,171 Identified adjustments: Amortization of intangibles 15,350 19,741 Amortization of Wilson Wolf intangible assets 2,490 2,490 Acquisition related expenses and other 3,508 1,862 Certain litigation charges 2,408 292 Stock-based compensation, inclusive of employer taxes 12,096 10,637 Restructuring and restructuring-related costs 7,511 11,022 Investment gain and other non-operating income (2,146) — Recovery of assets held-for-sale (6,789) — Impact of business held-for-sale(1) 2,573 (148) Net earnings before taxes - Adjusted $ 84,992 $ 86,067 Non-GAAP tax rate 22.3 % 21.5 % Non-GAAP tax expense $ 18,953 $ 18,536 Non-GAAP adjusted net earnings $ 66,039 $ 67,531 Earnings per share - diluted - Adjusted $ 0.42 $ 0.42 1) September 30, 2024 amounts relate to the Protein Sciences segment business that met the held-for-sale criteria on December 31, 2023. September 30, 2025 amounts relate to the Diagnostics and Spatial Biology segment business that met the held-for-sale criteria on June 30, 2025. BIO-TECHNE CORPORATION SEGMENT REVENUE (In thousands) (Unaudited) Quarter Ended September 30, 2025 2024 Protein Sciences segment revenue $ 202,188 $ 204,535 Diagnostics and Spatial Biology segment revenue 79,458 83,192 Other revenue(1) 5,439 2,303 lntersegment revenue (530) (572) Consolidated revenue $ 286,555 $ 289,458 1) September 30, 2024 amounts relate to the Protein Sciences segment business that met the held-for-sale criteria on December 31, 2023. September 30, 2025 amounts relate to the Diagnostics and Spatial Biology segment business that met the held-for-sale criteria on June 30, 2025. BIO-TECHNE CORPORATION SEGMENT OPERATING INCOME (In thousands) (Unaudited) Quarter Ended September 30, 2025 2024 Protein Sciences segment operating income $ 77,713 $ 80,541 Diagnostics and Spatial Biology segment operating income 8,878 4,277 Segment operating income 86,591 84,818 Corporate general, selling, and administrative (2,433) (1,586) Adjusted operating income 84,158 83,232 Amortization of intangibles (15,350) (19,741) Acquisition related expenses and other (3,351) (1,701) Certain litigation charges (2,408) (292) Stock-based compensation, inclusive of employer taxes (12,096) (10,637) Restructuring and restructuring-related costs (7,511) (11,022) Recovery of assets held-for-sale 6,789 — Impact of business held-for-sale(1) (2,573) 148 Operating income $ 47,658 $ 39,987 1) September 30, 2024 amounts relate to the Protein Sciences segment business that met the held-for-sale criteria on December 31, 2023. September 30, 2025 amounts relate to the Diagnostics and Spatial Biology segment business that met the held-for-sale criteria on June 30, 2025. BIO-TECHNE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) September 30, June 30, 2025 2025 ASSETS Cash and equivalents $ 144,962 $ 162,186 Accounts receivable, net 183,897 206,876 Inventories 203,188 189,446 Current assets held-for-sale — 12,332 Other current assets 77,460 37,460 Total current assets 609,507 608,300 Property and equipment, net 240,334 245,719 Right of use assets 70,725 73,399 Goodwill and intangible assets, net 1,329,019 1,346,534 Other assets 276,563 283,916 Total assets $ 2,526,148 $ 2,557,868 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 92,935 $ 116,765 Contract liabilities 30,445 32,571 Income taxes payable 2,848 10,770 Operating lease liabilities - current 13,771 14,098 Other current liabilities 4,546 1,645 Total current liabilities 144,545 175,849 Deferred income taxes 11,273 6,169 Long-term debt obligations 300,000 346,000 Operating lease liabilities 80,702 83,960 Other long-term liabilities 23,814 27,082 Stockholders' equity 1,965,814 1,918,808 Total liabilities and stockholders' equity $ 2,526,148 $ 2,557,868 BIO-TECHNE CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (In thousands) (Unaudited) Quarter Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 38,185 $ 33,600 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 24,340 28,137 Deferred income taxes 5,275 (5,340) Stock-based compensation expense 11,682 10,184 (Gain) Loss on equity method investment (294) (374) Asset impairment restructuring — 6,039 Recovery of assets held-for-sale (6,789) — Other operating activities (44,814) (8,357) Net cash provided by (used in) operating activities 27,585 63,889 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of available-for-sale investments — 1,085 Additions to property and equipment (5,363) (9,172) Distributions from Wilson Wolf 1,351 1,403 Investment in Spear Bio — (15,000) Proceeds from sale of assets held-for-sale 4,617 — Net cash provided by (used in) investing activities 605 (21,684) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends (12,444) (12,688) Proceeds from stock option exercises 23,495 25,101 Long-term debt activity, net (46,000) (19,000) Repurchases of common stock (24) — Taxes paid on RSUs and net share settlements (9,231) (4,984) Net cash provided by (used in) financing activities (44,204) (11,571) Effect of exchange rate changes on cash and cash equivalents (1,210) 5,115 Net increase (decrease) in cash and cash equivalents (17,224) 35,749 Cash and cash equivalents at beginning of period 162,186 151,791 Cash and cash equivalents at end of period $ 144,962 $ 187,540 Use of Non-GAAP Financial Measures: This press release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (GAAP). We provide these measures as additional information regarding our operating results. We use these non-GAAP measures internally to evaluate our performance and in making financial and operational decisions, including with respect to incentive compensation. We believe that our presentation of these measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparison of results. Investors are encouraged to review the reconciliations of non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures as provided with the financial statements attached to this press release. Our non-GAAP financial measures of organic revenue and organic revenue growth represent revenue and revenue growth excluding revenue from acquisitions within the preceding 12 months, the impact of foreign currency, the impact of businesses held-for-sale, as well as the impact of partially-owned consolidated subsidiaries. Excluding these measures provides more useful period-to-period comparison of revenue results as it excludes the impact of foreign currency exchange rates, which can vary significantly from period to period, and revenue from acquisitions that would not be included in the comparable prior period. Revenue from businesses held-for-sale is excluded from our organic revenue calculation starting on the date they become held-for-sale as that revenue will not be comparative in future periods. Revenues from partially-owned subsidiaries consolidated in our financial statements are also excluded from our organic revenue calculations, as those revenues are not fully attributable to the Company. There was no revenue from partially-owned consolidated subsidiaries in fiscal year 2026 or 2025. Our non-GAAP financial measures for adjusted gross margin, adjusted operating margin, adjusted EBITDA, and adjusted net earnings, in total and on a per share basis, exclude stock-based compensation, which is inclusive of the employer portion of payroll taxes on those stock awards, the costs recognized upon the sale of acquired inventory, amortization of acquisition intangibles, restructuring and restructuring-related costs. Stock-based compensation is excluded from adjusted net earnings because of the nature of this charge, specifically the varying available valuation methodologies, subjective assumptions, variety of award types, and unpredictability of amount and timing of employer related tax obligations. The Company excludes amortization of purchased intangible assets, purchase accounting adjustments, including costs recognized upon the sale of acquired inventory, and other non-recurring items including gains or losses on goodwill and long-lived asset impairment charges, and one-time assessments from this measure because they occur as a result of specific events, and are not reflective of our internal investments, the costs of developing, producing, supporting, and selling our products, and the other ongoing costs to support our operating structure. Costs related to restructuring and restructuring-related activities, including reducing overhead and consolidating facilities, are excluded because we believe they are not indicative of our normal operating costs. Additionally, these amounts can vary significantly from period to period based on current activity. The Company also excludes revenue and expense attributable to partially-owned consolidated subsidiaries as well as revenue and expense attributable to businesses held-for-sale in the calculation of our non-GAAP financial measures. The Company's non-GAAP adjusted operating margin, adjusted EBITDA, and adjusted net earnings, in total and on a per share basis, also exclude acquisition related expenses inclusive of the changes in fair value of contingent consideration, and other non-recurring items including certain costs related to the transition to a new CEO, goodwill and long-lived asset impairments, and gains. We also exclude certain litigation charges which are facts and circumstances specific including costs to resolve litigation and legal settlement (gains and losses). In some cases, these costs may be a result of litigation matters at acquired companies that were not probable, inestimable, or unresolved at the time of acquisition. The Company's non-GAAP adjusted EBITDA and adjusted net earnings, in total and on a per share basis, also excludes gain and losses from investments, as they are not part of our day-to-day operating decisions (excluding our equity method investment in Wilson Wolf as it is certain to be acquired in the future) and certain adjustments to income tax expense. Additionally, gains and losses from investments that are either isolated or cannot be expected to occur again with any predictability are excluded. The Company independently calculates a non-GAAP adjusted tax rate to be applied to the identified non-GAAP adjustments considering the impact of discrete items on these adjustments and the jurisdictional mix of the adjustments. In addition, the tax impact of other discrete and non-recurring charges which impact our reported GAAP tax rate are adjusted from net earnings. We believe these tax items can significantly affect the period-over-period assessment of operating results and not necessarily reflect costs and/or income associated with historical trends and future results. SOURCE Bio-Techne Corporation

Bio-Techne Releases First Quarter Fiscal 2026 Results

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