Harvard Bioscience, Inc. (NASDAQ: HBIO) Q2 2025 Earnings | 08/11/2025

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Summary of Harvard Bioscience Q2 2025 Earnings Call – August 11, 2025

Key Financial Results:

Revenue: $20.5M (vs. $23.1M in Q2 2024), above guidance ($18–20M) due to stronger-than-expected shipments to China.
Gross Margin: 56.4% (vs. 57.2% in Q2 2024), supported by cost controls.
Adjusted EBITDA: $1.5M (vs. $1.3M in Q2 2024), driven by lower operating expenses (down $2M YoY).
Cash Flow: Generated $2.8M in operating cash flow (YTD: $5.7M vs. $0.6M in 2024).
Debt: Net debt reduced to $27.9M (from $32M at YE 2024); credit facility amended to extend refinancing deadline to December 5, 2025.

Operational Highlights:

Geographic Performance:
- Americas: Revenue declined 11.7% YoY due to NIH budget delays impacting academic sales.
- Europe: Flat YoY, with sequential growth (+9%) in academic shipments.
- China/APAC: Down >25% YoY due to tariff uncertainty; demand stabilized after tentative 10% tariff agreement.
Product Adoption:
- SOHO Telemetry: Launched cardiac/neural monitoring platform.
- VivaMars Automation: Progressing pilot with LabCorp for CRO expansion.
- BTX Bioproduction: Achieved $1M in consumables revenue.
- MeaMEA Organoids: Gaining traction in academia, biopharma, and CROs amid regulatory shifts toward alternative testing.

Leadership Transition & Priorities:

New CEO John Duke outlined three focus areas:
1. Financial Discipline: Maintain cost efficiency and cash flow positivity.
2. Product Acceleration: Leverage high-growth platforms (e.g., organoids, bioproduction).
3. Capital Structure: Refinance debt to support future growth.

Q3 2025 Guidance:

Revenue: $19–21M.
Gross Margin: 56–58%.

Key Challenges & Mitigation:

Macro Headwinds:
- NIH Budget Delays: Extended academic purchasing cycles; expected improvement in 2026.
- Tariffs: China stabilized at 10%; Europe remains volatile (15% tariffs).
Debt Refinancing: Targeting completion by December 2025.

Analyst Q&A Highlights:

Debt Refinancing: Expected terms akin to "double-B/single-B" yields; debt projected at ~$33M by December.
NIH Outlook: Potential budget boost (Senate proposal: +8.8%) could accelerate 2026 academic spending.
China Exposure: ~10% of revenue; demand rebounded post-tariff clarity.
Neuroscience Catalyst: Data updates at Society for Neuroscience (November 2025).

Outlook:

Stabilization in H2 2025, with growth/margin expansion expected in 2026.
Focus on high-margin platforms (organoids, automation) and debt resolution to position for long-term growth.

About this video

Harvard Bioscience, Inc. reported its second-quarter 2025 financial results with GAAP revenue of $20.5 million, surpassing analyst expectations by 9.3% despite an 11.3% year-over-year decline from $23.1 million in Q2 2024. Non-GAAP loss per share narrowed to $(0.01), better than the anticipated $(0.025). The company demonstrated a significant operational improvement with GAAP operating cash flow turning positive at $2.8 million compared to a negative $0.8 million in the prior year period. However, GAAP gross margin contracted slightly to 56.4% from 57.2%, reflecting margin pressures from lower manufacturing capacity utilization and an unfavorable product mix. Cost management efforts contributed to reductions in sales and marketing, general and administrative, and research and development expenses by 15.8%, 25%, and 17% respectively year-over-year. Key growth drivers included traction in new product segments such as the MeshMEA system for organoid research, SoHo implantable telemetry platform with enhanced neuromonitoring features, and continued expansion of BTX electroporation systems for cell therapy bioproduction, including CAR-T therapy applications. Balance sheet highlights showed $7.4 million in cash and equivalents as of June 30, 2025, up from $4.1 million at year-end 2024, but stockholders’ equity declined sharply to $15.7 million due to a $48 million goodwill impairment charge recorded in Q1 2025. The company has secured a waiver from lenders on covenant breaches through December 5, 2025, providing time to refinance or repay obligations, though with expectations of higher future financing costs. Management issued Q3 2025 guidance projecting revenue between $19 million and $21 million, with a gross margin range of 56% to 58%, indicating expectations for continued revenue stabilization amid ongoing global economic uncertainties affecting demand, especially from China. The company’s strategic focus remains on new product growth, cost discipline, and progressing toward debt refinancing to support future margin expansion and revenue growth in fiscal 2026 and beyond. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. #HarvardBioscience #HBIO #Q22025 #Earnings #FinancialResults #Revenue #NetLoss #EPS #GrossMargin #OperatingCashFlow #CostManagement #ProductGrowth #MeshMEA #Telemetry #Electroporation #CAR-T #BalanceSheet #GoodwillImpairment #DebtRefinancing #Guidance #InvestorUpdates #NASDAQ #LifeSciences #Biotech #LaboratoryTechnologies #InsideTicker

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