CYRX

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5 p.m. ET Chief Executive Officer - Jerrell Shelton Executive Vice President and Chief Financial Officer - Robert Stefanovich Chief Scientific Officer - Mark Sawicki Vice President of Corporate Development and Investor Relations - Thomas Heinzen Operator: Good afternoon, everybody. Welcome to the Cryoport Second Quarter 2026 Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday, August 6, 2026. I will now turn the conference call over to Mr. Todd Fromer from KCSA Strategic Communications. Please go ahead. Todd Fromer: Thank you, operator. Before we begin today, I would like to remind everyone that this conference call contains certain forward-looking statements. All statements that address our operating performance, events, or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on the information currently available to our management team. Our management team believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events, and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors, and elsewhere in our Annual Report on Form 10-K filed with the Securities and Exchange Commission and those described from time to time in other reports which we file with the Securities and Exchange Commission. As a reminder, Cryoport has uploaded their second quarter 2026 in review document to the main page of their Cryoport, Inc. website. This document provides a review of Cryoport's financial and operational performance and a general business outlook. Before I turn the call over to Jerry, please note that because of the strategic partnership that has been established with DHL Group and the related sale of CRYOPDP to DHL in June of 2025, CRYOPDP's financials, which were a part of Cryoport's Life Science Services reportable segment, are now presented as discontinued operations. Please note that unless otherwise indicated, all revenue figures discussed today will refer to continuing operations. This includes Cryoport's fiscal year 2026 revenue guidance. It is now my pleasure to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of Cryoport. Jerry, the floor is yours. Jerrell Shelton: Thank you, Todd. Good afternoon, everyone. With me today is our Chief Financial Officer, Robert Stefanovich; our Chief Scientific Officer, Dr. Mark Sawicki; and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. We're pleased to report that our revenue momentum over the past several periods continued into the second quarter, with our total revenue reaching $49 million. Our growth was led by the Life Science Services segment, where revenue grew 15% year-over-year, driven by 25% growth in biostorage and bioservices. Total revenue from the support of commercial cell and gene therapy grew 9% to $9.4 million. However, the services portion of our commercial cell and gene therapies revenue grew 26% year-over-year as the number of patients treated in community settings and on an outpatient basis continues to ramp. Total revenue from supporting cell and gene therapy clinical trials increased 12% to $13.4 million for the quarter as our clients' clinical pipelines advanced and further matured. For the quarter, Life Science Services revenue represented 57% of our total revenue. In the second quarter, the number of commercial cell and gene therapies we support increased to 22. Our client Orca Bio received FDA approval for TREGZI. At quarter end, our total clinical trial count was 779 clinical trials globally, a net increase of 51 clinical trials over the prior year, with 94 of them in Phase III. Currently, we support approximately 70% of the cell and gene therapy industry's clinical trials. We believe this commanding position will enable us to drive further commercial growth as our therapies receive regulatory approval. Based on the information we have today, for the balance of 2026, we expect another 11 possible BLA/MAA application filings, five additional new therapy approvals, and one additional approval for a label and/or geographic expansion. Our continued growth reflects the value of Cryoport's integrated end-to-end platform across the life sciences ecosystem as well as the growing adoption of cell and gene therapies. During the quarter, our Life Science Products business generated solid results. This was driven by continued demand for MVE Biological Solutions' industry-leading cryogenic systems. Specific contributors this quarter included strong demand from animal health customers as well as improved general demand from the Americas region. MVE continues to be the market leader and a consistent cash flow generator, as well as providing support and synergies with our Life Sciences Services business. Along with our total revenue growth, we improved adjusted EBITDA from continuing operations by $1.3 million year-over-year, achieving positive adjusted EBITDA of $400,000. This marks an important milestone in our pathway to profitability initiative. We believe these results will continue progressively over the coming quarters and that we are positioned to drive more efficiencies, more scale in our operations, and continued margin expansion, thereby delivering sustainable, profitable growth. We also celebrated a number of operational milestones this quarter. For example, Cryoport Systems' IntegriCell cryopreservation services now has clinical processes running in both Houston, Texas, and Liège, Belgium. We were also selected by Verismo Therapeutics to support its two clinical trial KIR-CAR T-cell therapy programs. IntegriCell is just in the beginning to achieve its mission of bringing its standard-setting services to the cell therapy industry. IntegriCell represents yet another standard-setting temperature-controlled supply chain solution improvement provided by Cryoport that, once fully adopted, will support additional scaling of the cell therapy industry. Our capital investment program will curb as we launch our state-of-the-art bioservices operations and our new global supply chain center in Paris, France, in the fourth quarter. And we also open our new state-of-the-art global supply chain center in Santa Ana, California, in the fourth quarter. These two new facilities add significantly to our global supply chain center network and our ability to deliver advanced temperature-controlled global supply chain solutions for our life science clients worldwide. There was also significant completion of projects in our Life Science Products as MVE began shipping a number of new products, including our MVE Fusion 811 self-regenerating cryogenic freezer that operates without the need of cryogenic infrastructure and routine liquid nitrogen refills. We also began producing cryogenic freezers in China during the second quarter, shipping our first orders of models HE and Open Top with newly introduced CryoVerse Connect controllers. These accomplishments are in line with our previously announced goal of making all products smart, that is, receiving and generating data. We're also advancing our digital initiatives as we employ meaningful AI applications that improve our productivity and advance our enterprise technology strategy. Supplementing our use of machine learning technology, we're utilizing generative AI to automate routine tasks, analyze large data sets, manage risk, and expedite decision-making, all with a human in the loop. We are also providing our employees across the world with enterprise-approved generative AI tools for innovation purposes, and we've already begun to see measurable results. Today's report highlights our strong financial results, emphasizes the value of our integrated temperature-controlled supply chain solutions platform, indicates our broad industry-leading revenue pipeline, and reports the great strides we have made in expanding our resources and capabilities through our strategic initiatives. Reflecting on our strong first-half performance, we are affirming our full year 2026 revenue guidance of $192 million to $196 million. I sincerely believe that there is no organization that is better positioned than Cryoport to provide critical temperature-controlled supply chain solutions leadership required to help scale the cell and gene therapy industry. Based on market feedback and demand, our comprehensive, improving portfolio of services and products are designed to help our clients bring life-saving therapies to patients around the world safely, reliably, and efficiently. That mission drives me and every one of my Cryoport teammates, a mission we could not deliver without you. Thank you for your continued confidence in Cryoport and for being a part of this exciting journey with us. We'll now open the floor for your questions. Operator: Ladies and gentlemen, we'll now begin the question-and-answer session. [Operator Instructions] One moment, please, for your first question. And your first question comes from Puneet Souda from Leerink Partners. Please go ahead. Unknown Analyst: Hi. This is [ Philip Bond ] for Puneet. Thanks for the question. My first question is just on guidance. The first half revenue around $97 million and 2Q beat consensus, yet you're reiterating full year guide at $192 million to $196 million. I just want to ask what is the implied second half shape, and is holding the range more conservatism, or is there a specific second half headwind that you're contemplating here? Jerrell Shelton: Yes, thank you for the question. It's understandable, and I'll answer part of it, and then I'll ask Robert to supplement with any comments he has. But, you know, given the geopolitical situation, the macroeconomics that are associated with that, we think it's prudent to hold our guidance to where it is today. There are just a lot of uncertainties in the world. We're moving very well. We are very pleased with our performance. We know that our plans are being implemented. The industry is continuing to progress. We feel very good about that. But we think that at this point, it's prudent just to hold our guidance as to where it is. Robert, would you like to comment further? Robert Stefanovich: Yes, I mean, Jerry covered most of it. I think, look, the key assumptions underlying our 2026 outlook really have remained largely unchanged. The fundamentals, as Jerry outlined, for our business continue to be very strong, and we robust demand for our Life Science Services and Life Science Products businesses. We've seen it throughout the first half of the year, and we expect those trends to continue into the balance of 2026. Unknown Analyst: Got it. That makes a lot of sense. I also wanted to ask about products growth. I think in the previous quarter, you affirmed high single-digit growth for products this year. Products obviously flat, and 2Q up 7% in the first half. So high singles for the year implies to roughly 9% to 11% growth in the second half, if my math is correct. I just want to ask, is that still the view, or is mid-single digits more of a realistic rate? Jerrell Shelton: I think it's probably in the upper single digits. You know, the product growth was flat this year because we did have a strong second quarter last year, and so it didn't yield. But it's in line with our plan. We're performing very well. And remember, MVE is the world's leading cryogenic systems manufacturer. There's no one that comes even close to MVE. So, and the market has turned. It is more solid. It's more predictable than it was, you know, maybe a year ago or so. But we're very confident in MVE's performance and happy with its performance for the second quarter. It's on plan, and it's doing well. Robert, do you want to add anything else? Robert Stefanovich: I think you covered it. And I think the outlook, I think, for MVE and the products business continues to be solid. As a reminder, the MVE business has always been a strong cash generator, profitable, driving adjusted EBITDA, and we expect that to continue. Unknown Analyst: Awesome. Thank you. Operator: Thank you. And your next question comes from Anna Snopkowski from KeyBanc. Please go ahead. Anna Snopkowski: Hi, this is Anna Snopkowski on for Paul Knight. Congrats on the great quarter and achieving positive adjusted EBITDA. My first question is around China. I saw you shipped your first freezer in China for China. I think you could just talk through your broader China strategy and how demand is trending there. Jerrell Shelton: Well, China is a very important market for us. It's a market that I don't think anyone in the life sciences can ignore. And, you know, we do have a solid product strategy in China. The idea of producing that product for China was to produce it within country so that we could avoid any kind of a tariff kind of situation and improve our competitive position, both in dewars and freezers. This completed a line. It strengthened us in China. We have put a new emphasis on China within China, with our business development operations, and we're very pleased with the way that's progressing. I don't think it's going to have a huge impact immediately. It will take time, like everything else does in the life sciences. But it's all on plan and it's coming along very well and strategically very important. Now, on the service side of the business, we have yet to determine exactly our strategy. Mark and I will be working on that in more depth. And as we develop that, we'll report on it to you. Robert Stefanovich: Maybe just to add, currently you look at revenue, revenue from China is somewhere around 2% to 3% of our total revenue. So there's really only upside going forward in the longer term. Anna Snopkowski: Great, thank you. And then my second question is just around margins. It seems like you hit your targets maybe a little earlier than expected. So what is your view on EBITDA margins in the back half of the year? Thank you. Robert Stefanovich: Yes, I think if you look at the EBITDA margins, you're right, we did come ahead a little bit earlier than initially expected. Our objective now is really to continue to build on the progress we've made. Achieving positive EBITDA obviously in the second quarter was an important milestone, and we believe that demonstrated our strategy is working. As utilization of our network of global supply chain centers increases, we do expect to achieve additional operating leverage, and with that, expect to see a further increase in the adjusted EBITDA going forward. I think one other thing maybe to point out, if you look at the operational performance, is also the strength of our cash generation. During the first half of 2026, as you'll see in our 10-Q, we generated approximately $5 million in positive net cash from operating activities. And that represents a $17 million improvement compared to the first half of 2025. So we believe the combination of improving and adjusted EBITDA operating cash flow and increasing utilization provides clear evidence of that path to sustainable profitability that's taking shape. Anna Snopkowski: Great, thank you. Operator: Thank you. And your next question comes from Subbu Nambi from Guggenheim Securities. Please go ahead. Ethan Kriss: Hi, this is Ethan on for Subbu. How have smaller biotechs versus larger pharma been performing with respect to trial starts and funding so far? And can you give the split between new trial starts, completions, and terminations in the quarter? Jerrell Shelton: Mark? Mark W. Sawicki: Yes, well, I'll let Tom -- give you comments on the starts and terminations, but look, it's both. Both small biotech and big pharma are putting money into the space. The financing situation is improved. What we're seeing, though, is most of that money is going into Phase II and Phase III programs. Phase I is a little bit softer, but they're going for the bets and really trying to push the bulk of their pipeline through to commercial launch, which is good for us because obviously we see substantial economic benefit from commercialization activity. And so that's, we view that as a very positive sign, and that's evidenced by the increase in our Phase II and Phase III trials for the quarter. Tom, you wanna comment on that? Thomas Heinzen: Sure, Ethan. In Q2, there were 29 adds and 16 removed. Of those 16 removed, 6 were terminated and 10 were completed, so pretty good stats. Ethan Kriss: Thanks, guys. Operator: Thank you. And your next question comes from Richard Baldry from ROTH Capital. Please go ahead. Richard Baldry: Thanks. It's good to see your first sort of commercial client on the IntegriCell side. Can you talk a little bit more about, you know, maybe pipelines, prospects for more adds there, what the gating factors will be, sort of how you see the growth in that part of the business picking up over 2027 and beyond? Mark W. Sawicki: Sure. Yes, so, you know, obviously, we did onboard our first clients, and we are seeing them starting to ramp modestly. Now, I want to remind everybody, the first two sites that we've set up for IntegriCell, the Houston, Texas, site and Liège, Belgium, site, are proofing sites, right, for the larger initiative. So it does take some time for the industry to adopt the standard-setting services, and we really do believe that IntegriCell is a cutting-edge service offering that's really going to help the industry standardize. We have made significant progress out of both those sites, as we mentioned. We announced the relationship with Verismo at the end of last month. And so while we don't anticipate it being a significant revenue contributor for 2026, we do believe that this will be a significant contributor to our overall revenue in the future. And we do believe that it will continue to ramp modestly through 2026 and be a significant contributor in the future. Jerrell Shelton: Rich, the reason it's going to be what Mark just explained is the reason is that this is a standard-setting service that will provide an ability for the industry to scale, and it will provide better economics for the industry. So it's got, the drivers are there. It's just a matter of time for the industry to adapt. You know, changing things in our industry takes a long time. It's very complicated. You have to go through a lot of regulatory hurdles, and you have to make a lot of adjustments into SOPs and other quality requirements and so forth. So just reinforcing what Mark said, this is an important, it's important, but it will take time. Operator: Thank you. And if there are any other questions [Operator Instructions]. And your next question comes from Macky Taj (sic) [ Mac Etoch ] from Stephens. Please go ahead. Steven Etoch: Hey, good afternoon, and thank you for taking my questions. Maybe the first, you know, Orca, it's good to see an allogeneic approval there. I guess my questions are really around the Fusion 800 freezer. Now it's been on the market for a few months, a few quarters now. I just want to get a flavor for how the pipeline looks or how the interest has trended for that product. Jerrell Shelton: MVE is doing well, and the pipeline is improved from recent times. The industry is stable, and the outlook is good. MVE is on very, very solid ground. We just completed some of our strategic planning exercises, and MVE's future is impressive. Mark W. Sawicki: Yes, let me just add a little bit to that. So going to the Fusion, you know, we view the Fusion as a significant future product offering that is really going to open up the ability of community care hospitals to be able to support cell and gene therapies. We have engaged the industry from that perspective. There's a significant amount of interest as it relates to that, but obviously, this ties into a broader strategy for a lot of these companies, and we're working hand-in-hand with them to support that, and Fusion will play a big role in that. Steven Etoch: I appreciate that. And then maybe, Jerry, you mentioned AI as a, you know, an efficiency improver or improvement tool. I just want to get a sense for how you are viewing the potential impact across the business as it stands today. Jerrell Shelton: You know, there's no question that AI is going to have a big impact on all industry, and certainly we're no exception. And we already are seeing improvements in efficiency, and we're seeing, you know, timeframes collapse, and we will continue to see that. I was just talking with our enterprise technology group today about their initiatives and about the next set of priorities. We're focused on either improving efficiency or effectiveness. We're very targeted. So we have a successful AI initiative going on, and you'll hear more about it each quarter. And I'm very optimistic about it. It's a fantastic technology. Operator: Thank you. And there are no further questions at this time. Mr. Shelton, you can continue your conference. Jerrell Shelton: So that's concluding? Mark W. Sawicki: Yes. Jerrell Shelton: Okay. So thank you, operator. Ladies and gentlemen, thank you for your questions and our discussions. As our financial and operating results show, we delivered an excellent second quarter, generating growth across our key revenue streams, improving profitability, and achieving the important objective of delivering positive adjusted EBITDA for the quarter as we march down our pathway to profitability. With our accomplishments to date, we are well positioned to further expand margins, enhance operating efficiency, and deliver sustainable, profitable long-term growth for our shareholders. Moving forward, we will remain focused on executing our strategy, driving continued financial performance, and capitalizing on the significant opportunities before us. We expect upcoming growth catalysts will drive us to new heights with the advancement of our global supply chain center network and our recent launches of new products and services. We thank you all for joining us today. We appreciate your continued interest and support, and we look forward to sharing our further progress with you when we report on our third quarter financial results. We wish everyone a good evening. Thank you. Operator: This concludes your conference call for today. We thank you very much for your participation, and you may now disconnect. Have a great day, everybody. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth was primarily propelled by the Life Science Services segment, specifically a 25% increase in biostorage and bioservices as the cell and gene therapy market matures. The services portion of commercial cell and gene therapy revenue grew 26%, reflecting a strategic shift as more patients are treated in community and outpatient settings. Management attributes the positive adjusted EBITDA milestone to the 'pathway to profitability' initiative, focusing on operational efficiencies and scaling the global network. The company maintains a commanding market position, supporting approximately 70% of the cell and gene therapy industry's clinical trials, which serves as a pipeline for future commercial revenue. Life Science Products performance was bolstered by a recovery in the Americas and strong demand from animal health customers for MVE cryogenic systems. Strategic investments in 'smart' products, such as the MVE Fusion 811, aim to remove infrastructure barriers for hospitals, expanding the addressable market for cryogenic storage. Full year 2026 revenue guidance of $192 million to $196 million was affirmed, with management citing a prudent approach due to global geopolitical and macroeconomic uncertainties. The company anticipates significant regulatory activity for the remainder of 2026, including 11 possible BLA/MAA filings and five expected new therapy approvals. Capital investment is expected to curb following the fourth-quarter launch of new global supply chain centers in Paris, France, and Santa Ana, California. Management expects the IntegriCell cryopreservation service to ramp modestly through 2026, acting as a long-term standard-setting contributor rather than an immediate revenue driver. The China strategy focuses on localized production of freezers to mitigate tariff risks and improve competitive positioning in the region. The sale of CRYOPDP to DHL in June 2025 has resulted in those financials being reclassified as discontinued operations, shifting the reporting focus to continuing operations. Achieved a $17 million improvement in net cash from operating activities compared to the first half of 2025, totaling approximately $5 million. Implementation of generative AI and machine learning is being utilized to automate routine tasks and expedite decision-making with a 'human in the loop' approach. Geopolitical instability and macroeconomic factors are explicitly noted as the primary reasons for not raising guidance despite a strong second-quarter beat. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that while fundamentals are strong, they are maintaining the current range due to 'a lot of uncertainties' in the global geopolitical and macro environment. The underlying assumptions for the 2026 outlook remain unchanged despite the robust demand seen in the first half. Revenue from China currently represents only 2% to 3% of total revenue, which management views as significant long-term upside. The current focus is on localized product manufacturing to avoid tariffs, while the service-side strategy for China is still under development. Funding is increasingly concentrated in Phase II and Phase III programs as companies prioritize clinical pipelines that are closer to commercial launch. Phase I activity was described as 'a little bit softer' compared to the later-stage clinical advancements. Management emphasized that IntegriCell requires the industry to adjust SOPs and clear regulatory hurdles, which naturally extends the adoption timeline. The Houston and Liège sites are currently serving as 'proofing sites' for the broader global initiative.

Interested in CryoPort, Inc.? Here are five stocks we like better. CryoPort reported Q2 2026 revenue of $49 million and achieved $400,000 in positive adjusted EBITDA from continuing operations, while reaffirming its full-year revenue outlook of $192 million to $196 million. Life Sciences Services led growth, with revenue up 15% year over year; cell and gene therapy commercial-support revenue rose 9% to $9.4 million, while clinical-trial support revenue increased 12% to $13.4 million across 779 supported trials. The company improved cash generation, producing approximately $5 million in positive operating cash flow during the first half, and is expanding its network with new supply-chain centers in Paris and Santa Ana while developing products and services such as the Fusion freezer and IntegriCell. CryoPort (NASDAQ:CYRX) reported second-quarter 2026 revenue of $49 million and said it reached positive adjusted EBITDA from continuing operations, while reaffirming its full-year revenue outlook of $192 million to $196 million. Chief Executive Officer Jerrell Shelton said revenue momentum continued during the quarter, led by the company’s Life Sciences Services segment. Life Sciences Services revenue increased 15% from a year earlier, driven in part by 25% growth at BioStorage BioServices. The segment represented 57% of total quarterly revenue. → 3 Drone Stocks That Should Soar After the Summer Slump The company noted that financial results from CRYOPDP, which was sold to DHL Group in June 2025 as part of a strategic partnership, are presented as discontinued operations. Unless otherwise noted, revenue figures discussed on the call referred to continuing operations. Revenue from supporting commercial cell and gene therapies rose 9% year over year to $9.4 million. The services portion of that revenue increased 26%, which Shelton attributed to a growing number of patients being treated in community and outpatient settings. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Revenue from cell and gene therapy clinical-trial support increased 12% to $13.4 million. CryoPort supported 779 clinical trials globally at the end of the quarter, up by a net 51 trials from the prior year. Of those trials, 94 were in Phase III. Shelton said the company supports approximately 70% of clinical trials in the cell and gene therapy industry. The number of commercial therapies supported increased to 22 during the quarter after Orca Bio received FDA approval for TREGZI. → Jersey Mike's Serves Fresh Gains After IPO Stumble Based on information currently available, the company expects that the remainder of 2026 could include 11 potential biologics license application or marketing authorization application filings, five new therapy approvals and one approval involving a label or geographic expansion. Chief Scientific Officer Mark Sawicki said financing conditions for cell and gene therapy programs had improved, although investment has been more concentrated in Phase II and Phase III programs than in Phase I studies. He said the focus on later-stage programs was favorable for CryoPort because commercialization activity provides a larger economic benefit to the company. During the second quarter, CryoPort added 29 clinical trials and removed 16, according to Vice President of Corporate Development and Investor Relations Thomas Heinzen. Of the removed trials, six were terminated and 10 were completed. CryoPort reported adjusted EBITDA from continuing operations of $400,000, an improvement of $1.3 million from the prior-year quarter. Shelton described the result as an important milestone in the company’s pathway-to-profitability initiative. Chief Financial Officer Robert Stefanovich said the company expects additional operating leverage as utilization increases across its network of global supply chain centers. He also said CryoPort generated about $5 million in positive net cash from operating activities during the first half of 2026, representing a $17 million improvement compared with the first half of 2025. The company maintained its revenue forecast despite first-half revenue of about $97 million and a second-quarter result that analysts characterized as ahead of consensus expectations. Shelton said CryoPort considered it prudent to retain the existing outlook because of geopolitical and macroeconomic uncertainties. Stefanovich said the assumptions underlying the company’s 2026 outlook had remained largely unchanged and that demand for both Life Sciences Services and Life Sciences Products remained robust through the first half. In Life Sciences Products, CryoPort said MVE Biological Solutions benefited from demand from animal health customers and improved demand in the Americas. While products revenue was flat year over year in the second quarter, Shelton said the prior-year period was strong and that the business remained on plan. He said the company continued to expect product growth in the upper single digits for the full year. MVE began shipping several new products during the quarter, including the MVE Fusion 811 self-regenerating cryogenic freezer, which operates without cryogenic infrastructure or routine liquid nitrogen refills. The company also began producing cryogenic freezers in China and shipped initial orders of HE and open-top models equipped with newly introduced CryoVerse Connect controllers. Sawicki said the Fusion platform could help community-care hospitals support cell and gene therapies, and that CryoPort has seen significant industry interest in the offering. China represented about 2% to 3% of CryoPort’s current revenue, Stefanovich said. Shelton said local manufacturing is intended to help the company avoid potential tariff issues and strengthen its competitive position in the country. He added that the company has increased its business-development focus in China, though he does not expect an immediate material contribution. CryoPort said IntegriCell cryopreservation services now has clinical processes operating in Houston and Liège, Belgium. The company was also selected by Verismo Therapeutics to support two clinical-trial CAR T-cell therapy programs. Sawicki characterized the Houston and Liège locations as proofing sites for a broader IntegriCell initiative. He said the service is expected to ramp modestly through 2026 and is not anticipated to be a significant revenue contributor this year, but could become a meaningful contributor over time as the industry adopts its standardized processes. The company also plans to open new global supply chain centers in Paris and Santa Ana, California, during the fourth quarter. Shelton said capital investment would decline as those facilities begin operations. CryoPort is also applying machine learning and generative artificial intelligence tools to automate routine work, analyze large datasets, manage risk and speed decision-making, Shelton said. He said the company has begun seeing measurable productivity benefits from those initiatives. CryoPort, Inc (NASDAQ: CYRX) is a global provider of temperature-controlled logistics solutions for the life sciences industry. The company specializes in cryogenic shipping for critical biological materials, supporting the development, clinical testing and commercialization of cell and gene therapies, biologics, vaccines and reproductive medicine. By offering end-to-end supply chain management, CryoPort helps ensure the integrity and viability of temperature-sensitive products from point of origin to destination. CryoPort's product portfolio includes proprietary cryogenic dry shippers, advanced active and passive thermal packaging, and real-time data monitoring platforms. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CryoPort Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $49 million for the second quarter of 2026. Life Science Services Segment Revenue: Grew 15% year-over-year, representing 57% of total revenue. Biostorage and Bioservices Revenue: Grew 25% year-over-year. Commercial Cell and Gene Therapy Revenue: Total revenue grew 9% to $9.4 million; services portion grew 26% year-over-year. Clinical Trial Revenue: Total revenue from supporting cell and gene therapy clinical trials increased 12% to $13.4 million. Adjusted EBITDA: Positive $400,000 from continuing operations, an improvement of $1.3 million year-over-year. Commercial Therapies Supported: Increased to 22, with the addition of Orca Bio's TREGZ. Clinical Trial Count: 779 global clinical trials, a net increase of 51 year-over-year, with 94 in Phase 3. Full-Year 2026 Revenue Guidance: Affirmed at $192 million to $196 million. Warning! GuruFocus has detected 9 Warning Signs with CYRX. Is CYRX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue reached $49 million in Q2 2026, with Life Science Services segment growing 15% year-over-year, driven by 25% growth in biostorage and bioservices. Achieved positive adjusted EBITDA of $400,000, a $1.3 million improvement year-over-year, marking a key milestone in the pathway to profitability. Commercial cell and gene therapy support revenue grew 9% to $9.4 million, with services portion up 26% year-over-year as patient treatments in community settings ramp. Clinical trial support revenue increased 12% to $13.4 million, with total clinical trials reaching 779 globally, including 94 in Phase 3, and supporting approximately 70% of the industry's trials. Operational milestones include launching IntegraCell services in Houston and Liege, onboarding Verismo Therapeutics, and beginning production of cryogenic freezers in China with new smart controllers. Generated approximately $5 million in positive net cash from operating activities in the first half of 2026, a $17 million improvement compared to the same period in 2025. Life Science Products segment revenue was flat in Q2 2026 due to a strong prior-year comparison, with growth expected to be in the upper single digits for the year. Management reiterated full-year 2026 revenue guidance of $192 million to $196 million, citing geopolitical and macroeconomic uncertainties as reasons for prudence. China revenue currently represents only 2% to 3% of total revenue, with the company noting that the impact of local production will take time to materialize. IntegraCell services are not expected to be a significant revenue contributor in 2026, as industry adoption will take time due to regulatory and SOP hurdles. Phase 1 clinical trial starts are softer compared to Phase 2 and Phase 3, indicating a potential slowdown in early-stage pipeline development. The company has not yet determined its strategy for expanding services in China, leaving a key growth area uncertain. Q: The first half revenue was around $97 million, yet you're reiterating the full-year guide at $192 million to $196 million. Is holding the range more conservatism or is there a specific second-half headwind? A: Jerrell Shelton (CEO) stated that given the geopolitical situation and associated macroeconomics, it is prudent to hold guidance. He noted the company is performing well and plans are being implemented, but there are many uncertainties in the world. CFO Robert Stefanovich added that the assumptions underlying the '26 outlook remain largely unchanged, with robust demand expected to continue into the balance of 2026. Q: Products were flat in 2Q and up 7% in the first half. Is high single-digit growth for products this year still the view? A: Jerrell Shelton (CEO) indicated product growth is probably in the upper single digits. He explained the flat second quarter was due to a strong comparable quarter last year, but performance is in line with plan. He emphasized MVE is the world's leading cryogenic systems manufacturer with no close competitor, and the market has become more predictable. CFO Robert Stefanovich added that MVE remains a strong cash generator and profitable, driving adjusted EBITDA. Q: Can you talk through your broader China strategy and how demand is trending there? A: Jerrell Shelton (CEO) stated China is a very important market that no one in life sciences can ignore. The strategy is to produce products within China to avoid tariff situations and improve competitive position. The company has put new emphasis on business development in China, though it will take time to have a significant impact. CFO Robert Stefanovich noted China currently represents only 2% to 3% of total revenue, so there is only upside longer-term. Q: It seems like you hit your EBITDA margin targets a little earlier than expected. What is your view on EBITDA margins in the back half of the year? A: CFO Robert Stefanovich acknowledged they came ahead of expectations. The objective is to continue building on progress, with positive EBITDA in Q2 being an important milestone. As utilization of the global supply chain center network increases, they expect additional operating leverage and further increases in adjusted EBITDA. He highlighted that the company generated approximately $5 million in positive net cash from operating activities in the first half of 2026, a $17 million improvement versus the first half of 2025. Q: How have smaller biotechs versus larger pharma been performing with respect to trial starts and funding? Can you give the split between new trial starts, completions, and terminations? A: Management noted that both small biotech and big pharma are investing in the space, with improved financing conditions. Most money is going into Phase 2 and Phase 3 programs, while Phase 1 is softer, which is positive as commercialization activity brings substantial economic benefit. Thomas Heinzen (VP of Corporate Development) provided specifics: in Q2, there were 29 adds and 16 removals, of which 6 were terminated and 10 were completed. Q: It's good to see your first commercial client on the IntegraSell side. Can you talk about pipelines, prospects for more adds, and how you see growth picking up over '27 and beyond? A: Management confirmed the first clients are onboarded and starting to ramp modestly. The Houston and Liege sites are proofing sites for the larger initiative. While IntegraCell won't be a significant revenue contributor for '26, it is expected to be a significant contributor in the future. CEO Jerrell Shelton added that this standard-setting service will enable industry scaling and better economics, but adoption takes time due to regulatory hurdles and SOP adjustments. Q: The Orca approval is good to see for allogeneic therapies. How does the pipeline look for the Fusion 800 freezer, which has been on the market for a few quarters? A: Jerrell Shelton (CEO) stated MVE is doing well with an improved pipeline and stable industry outlook. The Fusion is viewed as a significant future product offering that will enable community care hospitals to support cell and gene therapies. There is significant industry interest, and the product ties into a broader strategy for many companies, with Fusion expected to play a big role in supporting that. Q: You mentioned AI as an efficiency improvement tool. How are you viewing the potential impact across the business? A: Jerrell Shelton (CEO) stated AI will have a big impact on all industries, and Cryoport is already seeing improvements in efficiency and collapsing timeframes. The company is focused on targeted initiatives that improve efficiency or effectiveness, with a successful AI initiative underway. He expressed optimism about the technology and indicated more details would be shared in future quarters. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second quarter revenue grew 8% year-over-year to $49.0 million Life Sciences Services revenue increased 15% year-over-year BioStorage/BioServices revenue grew 25% year-over-year Supporting 779 global clinical trials and 22 commercially approved cell and gene therapies (CGT) as of June 30, 2026 NASHVILLE, Tenn., Aug. 6, 2026 /PRNewswire/ -- Cryoport, Inc. (NASDAQ: CYRX) ("Cryoport" or the "Company"), a leading global provider of integrated temperature-controlled supply chain solutions for the life sciences, today announced financial results for its second quarter (Q2) and first half (H1) of 2026. Jerrell Shelton, CEO of Cryoport, commented, "Our revenue momentum over the past several periods continued into the second quarter, with total revenue reaching $49.0 million. Life Sciences Services revenue grew 15% year-over-year, led by 25% growth in BioStorage/BioServices revenue. Our Life Sciences Products business also generated solid results during the quarter, driven by continued demand for MVE Biological Solutions' industry-leading cryogenic systems and the successful introduction of new and innovative products. "Total revenue from the support of commercial CGT grew 9% year-over-year to $9.4 million. The Life Science Services portion of our revenue from supporting commercial CGT grew 26% year-over-year as the number of patients treated in the community setting and on an outpatient basis continued to ramp. Total revenue for the quarter from supporting CGT clinical trials increased 12% year-over-year to $13.4 million as our customers' clinical pipelines advanced and further matured. We supported a record 779 clinical trials globally as of June 30, 2026, reflecting the strength of our industry-leading position as the CGT market continues to advance. "Our second quarter results also reflect meaningful progress on our "pathway to profitability." Achieving positive adjusted EBITDA in the second quarter represents an important milestone in our ongoing pathway to sustainable profitability and demonstrates the value of our strategic investments and operational initiatives we have executed over the past several years. We are pleased with this accomplishment as we continue to optimize our global operations, leverage our expanding infrastructure, and benefit from the operating leverage that we anticipate will take effect as we increasingly scale and put our investments to work. "Overall, we delivered a strong second quarter, generating growth across key revenue streams, improving profitability, and achieving an important milestone with positive adjusted EBITDA for the quarter. With our accomplishments to date, we believe that we are well positioned to further expand margins, enhance operating efficiency, and deliver sustainable, profitable long-term growth for our shareholders. We remain focused on executing our strategy, driving financial performance, and capitalizing on the significant opportunities before us. We expect upcoming growth catalysts in our business segments, represented by the expansion of our Global Supply Chain Center Network and recent launches of new products and services, will drive us to new heights in market position, growth, and productivity," concluded Mr. Shelton. The following table presents Q2 2026 revenue compared with Q2 2025: BioLogistics Solutions revenue increased 13% year-over-year in Q2 2026, driven by increasing customer activity, continued commercial product development, and clinical advancement within the CGT market. BioStorage/BioServices revenue grew 25% year-over-year, reflecting strong demand for our expanded, integrated services offering, which provides seamless, secure handling of temperature-sensitive materials across our global network. As of June 30, 2026, the number of commercial cell and gene therapies we support increased to 22 and our total clinical trial count that we support rose to 779 clinical trials worldwide, a net increase of 51 clinical trials over June 30, 2025, with 94 of these clinical trials in Phase 3. The number of trials by phase and region are as follows: In Q2 2026, four of our customers filed Biologics License Applications (BLA) / Marketing Authorization Applications (MAA). During the Q2 2026, Cryoport's customer, Orca Bio, received U.S. Food and Drug Administration (FDA) approval for TREGZI™ as the first and only precision-engineered cell therapy for allogeneic stem cell transplant in the treatment of adults with hematological malignancies. Additionally, during Q2 2026, Vertex Pharmaceuticals received supplemental approval from the FDA to expand the label of CASGEVY® for the treatment of patients aged two years and older with either sickle cell disease (SCD) with recurrent vaso-occlusive crises (VOCs) or transfusion-dependent beta thalassemia (TDT). CASGEVY is the first approved gene therapy indicated for children as young as two years for both SCD and TDT. For the balance of 2026, we anticipate another 11 possible BLA/MAA applications, five possible additional new therapy approvals, and one possible additional approval for label/geographic expansion from our customer base. Operational milestones Cryoport Systems' IntegriCell® cryopreservation services were selected by Verismo Therapeutics, a clinical-stage CAR T-cell therapy company pioneering a novel multi-chain KIR-CAR platform technology for the treatment of solid tumors (SynKIR™-110) and B cell associated disorders and malignancies (SynKIR™-310). Advanced toward the planned launch of BioServices operations at our Global Supply Chain Center in Paris, France, expected in Q4 2026. Continued progress toward the launch of our state-of-the-art Global Supply Chain Center in Santa Ana, California, expected in Q4 2026. Shipped first HE freezers "made in China for China" from our Chengdu, China manufacturing facility. Financial Highlights On June 11, 2025, the Company completed the divestiture of its CRYOPDP specialty courier business to DHL Group. The results of CRYOPDP, a former business within Cryoport's Life Sciences Services segment, are presented as discontinued operations for all periods and are excluded from the non-GAAP financial measures in this release. Revenue Total revenue for Q2 2026 was $49.0 million, compared to $45.5 million for Q2 2025, a year-over-year increase of 8%, or $3.5 million. Total revenue for H1 2026 was $96.8 million, compared to $86.5 million for H1 2025. Gross Margin Total gross margin was 46.6% for Q2 2026, compared to 47.0% for Q2 2025. Total gross margin was 46.2% for H1 2026, compared to 46.3% for H1 2025. Operating Costs and Expenses Operating costs and expenses were $32.9 million for Q2 2026, compared to $31.0 million for Q2 2025. Operating costs and expenses were $64.4 million for H1 2026, compared to $56.9 million for H1 2025. Loss from Continuing Operations Loss from continuing operations was $8.3 million for Q2 2026, compared to a loss of $12.0 million for Q2 2025. Loss from continuing operations was $17.7 million for H1 2026, compared to a loss of $18.8 million for H1 2025. Net Income (Loss) – including Discontinued Operations Net loss was $8.3 million for Q2 2026, compared to net income of $108.9 million for Q2 2025. Net loss for H1 2026 was $18.8 million, compared to net income of $96.9 million for H1 2025. Net income for Q2 2025 and H1 2025 was primarily driven by the sale of our CRYOPDP specialty courier business during Q2 2025, which contributed $120.9 million and $115.6 million, net of taxes, respectively, to income from discontinued operations. Net loss attributable to common stockholders for Q2 2026 was $10.3 million, or $0.20 per share. Net loss attributable to common stockholders for H1 2026 was $22.8 million, or $0.45 per share. This compares to net income attributable to common stockholders of $106.9 million, or $2.13 per share, and $92.9 million, or $1.85 per share, for Q2 2025 and H1 2025, respectively. Adjusted EBITDA from Continuing Operations Adjusted EBITDA from continuing operations was $0.4 million for Q2 2026, compared to a negative $0.9 million for Q2 2025. Adjusted EBITDA from continuing operations for H1 2026 was a negative $0.2 million, compared to a negative $3.7 million for H1 2025. Cash, Cash equivalents, and Short-Term Investments Cryoport held $396.7 million in cash, cash equivalents, and short-term investments as of June 30, 2026. Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release. Additional Information Further information on Cryoport's financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport's financial performance are provided in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which is expected to be filed with the Securities and Exchange Commission ("SEC") on August 6, 2026. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport's website at www.cryoportinc.com. Earnings Conference Call Information IMPORTANT INFORMATION: In addition to the earnings release, a document titled "Cryoport Second Quarter 2026 in Review," providing a review of Cryoport's business update, will be issued at 4:05 p.m. ET on Thursday, August 6, 2026. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar. Cryoport management will host a conference call at 5:00 p.m. ET on August 6, 2026. The conference call will be in the format of a questions and answers session and will address any queries investors have regarding the Company's reported results. A slide deck will accompany the call. Conference Call Information The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company's website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until August 13, 2026. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay entry code: 1142151#. About Cryoport, Inc. Cryoport, Inc. (Nasdaq: CYRX) is a leading global provider of integrated temperature-controlled supply chain solutions for the life sciences, with an emphasis on regenerative medicine. We support biopharmaceutical companies, contract manufacturers (CDMOs), contract research organizations (CROs), developers, and researchers with a comprehensive suite of services and products designed to minimize risk and maximize reliability across the temperature-controlled supply chain for the life sciences. Our integrated supply chain platform includes the Cryoportal® Logistics Management Platform, advanced temperature-controlled packaging, informatics, specialized BioLogistics, BioStorage, BioServices, cryopreservation services, and cryogenic systems, which in varying combinations deliver end-to-end solutions that meet the rigorous demands of the life sciences. With innovation, regulatory compliance, and agility at our core, we are "Enabling the Future of Medicine™." Headquartered in Nashville, Tennessee, our company maintains a strong global presence with operations across the Americas, EMEA, and APAC. For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at https://x.com/cryoport for live updates. Forward-Looking Statements Statements in this press release which are not purely historical, including statements regarding the Company's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to the Company's industry, business, long-term growth prospects, plans, strategies, acquisitions, future financial results and financial condition, such as the Company's outlook and guidance for full-year 2026 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Company operates, the Company's plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, the Company's expectations about future benefits of its acquisitions, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved with respect to the products of the Company's clients. Forward-looking statements also include those related to the Company's plans regarding its Global Supply Chain Centers, including expected timing of future openings, the Company's anticipation that it will benefit from its operating leverage, the Company's belief that it is well positioned to further expand margins, enhance operating efficiency and deliver sustainable, profitable long-term growth for its shareholders, and the Company's expectation that upcoming growth catalysts in its business segments will drive the Company to new heights in market position, growth, and productivity. It is important to note that the Company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effects of changing economic and geopolitical conditions, such as those resulting from the war with Iran, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in the Company's cash flow, market acceptance risks, the effects of tariffs and other trade restrictions, and technical development risks. The Company's business could be affected by other factors discussed in the Company's SEC reports, including in the "Risk Factors" section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and the Company cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, the Company disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Note Regarding Use of Non-GAAP Financial Measures To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measure of financial performance as defined in Regulation G of the Securities Exchange Act of 1934 is included in this release: adjusted EBITDA from continuing operations. Non-GAAP financial measures are not calculated in accordance with GAAP, are not based on any comprehensive set of accounting rules or principles and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures, including adjusted EBITDA from continuing operations, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Adjusted EBITDA from continuing operations is defined as loss from continuing operations adjusted for net interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, cost reduction initiatives, investment income, unrealized (gain)/loss on investments, foreign currency loss, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events, as applicable. Management believes that adjusted EBITDA from continuing operations provides a useful measure of Cryoport's operating results, a meaningful comparison with historical results and with the results of other companies, and insight into Cryoport's ongoing operating performance. Further, management and the Company's board of directors utilize adjusted EBITDA from continuing operations to gain a better understanding of Cryoport's comparative operating performance from period to period and as a basis for planning and forecasting future periods. Adjusted EBITDA from continuing operations is also a significant performance measure used by Cryoport in connection with its incentive compensation programs. Management believes adjusted EBITDA from continuing operations, when read in conjunction with Cryoport's GAAP financials, is useful to investors because it provides a basis for meaningful period-to-period comparisons of Cryoport's ongoing operating results, including results of operations, against investor and analyst financial models, helps identify trends in Cryoport's underlying business and in performing related trend analyses, and it provides a better understanding of how management plans and measures Cryoport's underlying business. View original content to download multimedia:https://www.prnewswire.com/news-releases/cryoport-reports-second-quarter-2026-financial-results-302845362.html

Caris Life Sciences,?Inc. (CAI) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to a loss of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced break-even earnings, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Caris Life Sciences,?Inc., which belongs to the Zacks Medical Services industry, posted revenues of $263.71 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 14.07%. This compares to year-ago revenues of $181.4 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Caris Life Sciences,?Inc. shares have lost about 40.3% since the beginning of the year versus the S&P 500's gain of 13%. While Caris Life Sciences,?Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Caris Life Sciences,?Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $262.78 million in revenues for the coming quarter and $0.06 on $988.78 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, CryoPort, Inc. (CYRX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +31%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CryoPort, Inc.'s revenues are expected to be $48.08 million, up 5.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Caris Life Sciences,?Inc. (CAI) : Free Stock Analysis Report CryoPort, Inc. (CYRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NASHVILLE, Tenn., July 23, 2026 /PRNewswire/ -- Cryoport, Inc. (Nasdaq: CYRX) ("Cryoport" or the "Company"), a leading global provider of integrated temperature-controlled supply chain solutions for the life sciences, today announced that the Company will report financial results for the second quarter ended June 30, 2026 on Thursday, August 6, 2026 after U.S. markets close. In addition to the earnings release, a document titled "Cryoport Second Quarter 2026 in Review", providing a review of Cryoport's financial and operational performance and a general business update, will be issued at 4:05 p.m. ET on Thursday, August 6, 2026. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar. Cryoport management will host a conference call the same day at 5:00 p.m. ET. The conference call will be in the format of a questions and answers session and will address questions members of the investment community have regarding the Company's reported results. A slide deck will accompany the call. Conference Call Information Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software. The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company's website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until August 13, 2026. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay entry code: 1142151#. About Cryoport, IncCryoport, Inc. (Nasdaq: CYRX), is a leading global provider of integrated temperature-controlled supply chain solutions for the life sciences, with an emphasis on regenerative medicine. We support biopharmaceutical companies, contract manufacturers (CDMOs), contract research organizations (CROs), developers, and researchers with a comprehensive suite of services and products designed to minimize risk and maximize reliability across the temperature-controlled supply chain for the life sciences. Our integrated supply chain platform includes the Cryoportal® Logistics Management Platform, advanced temperature-controlled packaging, informatics, specialized BioLogistics, biostorage, BioServices, cryopreservation services, and cryogenic systems, which in varying combinations deliver end-to-end solutions that meet the rigorous demands of the life sciences. With innovation, regulatory compliance, and agility at our core, we are "Enabling the Future of Medicine™." Headquartered in Nashville, Tennessee, our company maintains a strong global presence with operations across the Americas, EMEA, and APAC. For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X at www.x.com/cryoport for live updates. Forward-Looking StatementsStatements in this press release which are not purely historical, including statements regarding Cryoport's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that Cryoport's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic and geopolitical conditions, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in Cryoport's cash flow, market acceptance risks, and technical development risks. Cryoport's business could be affected by other factors discussed in Cryoport's SEC reports, including in the "Risk Factors" section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and Cryoport cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, Cryoport disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release. View original content to download multimedia:https://www.prnewswire.com/news-releases/cryoport-to-report-second-quarter-2026-financial-results-on-august-6-2026-302832639.html

Image source: The Motley Fool. Tuesday, August 5, 2025 at 5 p.m. ET Chief Executive Officer — Jerrell W. Shelton Chief Financial Officer — Robert S. Stefanovich Chief Scientific Officer — Mark W. Sawicki Vice President, Corporate Development & Investor Relations — Thomas J. Heinzen Managing Director (Moderator) — Todd Fromer Todd Fromer: Thank you, operator. Before we begin today, I would like to remind everyone that this conference call contains certain forward- looking statements. All statements that address our operating performance, events or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team. Our management team believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors and elsewhere in our Annual Report on Form 10- K to be filed with the Securities and Exchange Commission and those described from time to time in the other reports, which we file with the Securities and Exchange Commission. As a reminder, Cryoport has uploaded their second quarter 2025 in review document to the main page of the Cryoport website. These documents provide a review of Cryoport's financial and operational performance and a general business outlook. Before I turn the call over to Jerry, please note that because of the strategic partnership that has been established with DHL Group and the related sale of CRYOPDP to DHL, CRYOPDP's financials, which were previously a part of Cryoport's Life Science Services reportable segment are now presented as discontinued operations. Cryoport previously provided quarterly historical information on this basis for fiscal year 2024 and our first quarter 2025 review document which remains available on the Cryoport website. This information is intended to support the financial modeling efforts of those needing this information. Please note that unless otherwise indicated, all revenue figures discussed today will refer to continuing operations. This includes Cryoport's fiscal year 2025 revenue guidance. It is now my pleasure to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of Cryoport. Jerry, the floor is yours. Jerrell W. Shelton: Thank you, Todd. Good afternoon, everyone. With us this afternoon is our Chief Financial Officer, Robert Stefanovich; our Chief Scientific Officer, Dr. Mark Sawicki; and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. Today, Cryoport reported strong double-digit revenue growth across all revenue streams in our Life Sciences Services for the second quarter. Service revenue increased 21% year-over-year, accounting for 54% of total revenue from continuing operations. notably, revenue from our support of commercial cell and gene therapies increased by 33% and BioStorage/BioServices grew 28%, underscoring the growing demand for our integrated temperature control supply chain platform. This growth continues to be fueled by the increasing adoption and scaling of cell and gene therapies, a positive trend, we believe, will continue for years to come. Turning to our Life Sciences products. We posted a solid performance with 8% year-over-year revenue growth, driven by improved demand, particularly from animal health customers during the quarter, we made -- we also continued to expand our product portfolio with the launch of our next-generation MVE SC 4/2 and SC 4/3 vapor shippers, which offer medical and animal health professionals, improve safety and reliability for transporting and preserving sensitive biological materials at cryogenic temperatures. During the second quarter, we also recorded revenue in accordance with plan from sales of MVE's high-efficiency 800-seat cryogenic storage system, which was released earlier this year. This compact form factor freezer was designed for facilities with limited space that require high capacity and security. These innovations demonstrate our continued commitment to addressing the evolving needs of our clients globally and expanding our future revenue potential. For the second quarter, we had an overall 14% increase in total revenue from operations, and we delivered an increase in gross margin, along with a meaningful lift in our adjusted EBITDA and as a result of our pathway to profitability initiatives. Given the strong execution across all our business units, we are reaffirming our full year 2025 revenue guidance as we move toward our goal of sustainable long-term profitability, which will accelerate as our capital projects mature. I'm pleased with all the progress of all of our business units but I would be remiss if I didn't highlight 1 of the most significant achievements for the second quarter, which was our launch of our strategic partnership agreement with the DHL Group and DHL's acquisition of CRYOPDP in a transaction that included cash payments of approximately $200 million to Cryoport. Aside from a strong infusion of capital, this strategic partnership provides for enhancing our global biologics capabilities -- bio logistics capabilities and effectiveness by leveraging DHL's competencies scale and reach in Asia Pac and EMEA, we will be increasingly well positioned to expand our life sciences business and deepen our leadership in the rapidly growing global regenerative medicine market. This strategic partnership is an initial step as we continue to work to develop a strong global partner network that complements our core capabilities through discussions with various global companies. Before we take your questions, I want to briefly address a unique situation with 1 of our clients that has received some immediate attention. 1 of our gene therapy clients temporarily pause the distribution of their commercial therapy for about a week in July. The therapy is now back on the market and shipping to patients. However, that company anticipates treating fewer patients than originally forecast in 2025. We do not expect this to have a material impact on our business. Our guidance that we reaffirm today considers an estimated revenue impact of approximately $2 million from this client for the remainder of the year. As of June 30, Cryoport supported a record 728 clinical trials which is approximately 70% of the industry cell and gene therapy trials. For the remainder of 2025, we anticipate up to an additional 20 application filings, 1 new therapy approval and an additional 3 approvals for label or geographic expansion. Also, we want to note that during the quarter, 5 of our clients that had filed for approval earlier this year or late last year, received negative opinions from the FDA or MAA, all these clients have requested meetings with the regulators to find a pathway forward to bring their therapies to market. Given the need for these therapies, along with the recent changes within the FDA, many analysts are thinking more positively about their chances of gaining approval later this year or early in 2026. The strength and resilience of Cryoport's performance in the second quarter despite these challenges faced by a few of our clients by largely in the broad number of clinical trials we support and the scaling of the current commercial therapies we are supporting on a global basis. Our commercial revenue is expected to drive our growth for years as it is boosted by additional Cryoport-supported therapies as they reach commercialization, including the new cell therapy from our customer, Aviano -- Aviana Therapeutics that was approved by the FDA during the second quarter. I probably mispronounced that, and I think it's Abeona. In summary, our second quarter was marked by strong revenue growth, improved margins and the beginning of the execution of a transformative strategic partnership agreement. We are entering the second half of the year with strong momentum and a clear focus on driving long-term shareholder value as we support the growth of the global regenerative medicine markets and the life sciences in general. As the regenerative medicine industry accelerates, the complexity and precision required to safely deliver personalized often life- saving therapies has never been greater. Our global platform of temperature control supply chain solutions, coupled with real-time informatics and regulatory compliant processes enable 728 active clinical trials and 18 commercial therapies worldwide. Whether supporting first in-human studies or globally scaled commercial treatments, Cryoport ensures end-to-end integrity from the manufacturer -- from the laboratory to the manufacturer, to the points of care, to the patient's bedside, our advanced packaging systems, BioStorage and Bioservices capabilities, biologistics and cryogenic infrastructure have become mission-critical to the industry's leading biopharma companies, CDMOs and researchers alike. In short, we formed the connected tissue between researchers, manufacturers and the patients enabling the secure preservation and movement of living regenerative therapies with real-time data and systems and a global reach. We do more than support the life sciences ecosystem, we make it responsive, resilient and ready for the future of medicine. This concludes my prepared remarks. So now I'll ask the operator to open the lines for your questions. Operator: [Operator Instructions] And your first question comes from Kyle Crews with UBS. Kyle Andrew Crews: Could you please provide a brief update on the non cell and gene therapy demand that appears to be driving the product revenue beat in the quarter? And could you provide an update on IntegriCell and how the adoption there is going? Jerrell W. Shelton: I think both those questions can be answered by Dr. Sawicki. Mark W. Sawicki: Yes. So IntegriCell continues to progress nicely. We are moving forward with -- I'm sorry, just give me 1 second here. Sorry, can you repeat the first part of the question? Thomas J. Heinzen: The first part was on MVE, maybe I'll step in Mark you. MVE, we are feeling better than we were about 6 to 12 months ago. The revenue there did improve up 8%. We do continue to believe that the business stabilized in the quarter and in last quarter. Globally, markets have been disrupted by governmental policies. And we do expect the uncertainty to continue to impact capital spending, as you could see with other life science companies. In particular, at MVE, they had a very nice quarter from the animal health side, with cryogenic systems sales. Go ahead Mark, on IntegriCell. Mark W. Sawicki: I apologize for the mix up. Yes. So IntegriCell is proceeding on track. We do anticipate the initiation of revenue production this quarter with meaningful revenue starting in 2026, we are actively tech transferring our first clients right now, which takes a little bit of time, but that's going to start to help support the revenue contribution later this year and into next year. Kyle Andrew Crews: Great. And then maybe as a follow-up there, you maintained the guidance but you had a really great quarter, and it seems like there's the market seems to have improved and there is upcoming revenue streams into 2H. Can you go through the phasing on your 2H guidance and maybe go over why you didn't increase the guide? Jerrell W. Shelton: Yes. We didn't increase the guidance because we're being prudent, of course, given the uncertainties in the global economy and geopolitical uncertainties as well as administrative uncertainties and looking at the market and the puts and takes and so forth, we felt it was more prudent to keep our guidance where it is. And so we -- that's why we reaffirmed it the way it is. Operator: Your next question comes from David Saxon with Needham. David Joshua Saxon: Great. Congrats on the quarter. Maybe just a follow-up to that last question on guidance. Just comp I guess, third quarter, it looks to be an easier comp and then -- easy comp, but slightly harder in the fourth quarter. So how should we think about growth exiting the year, and any early thoughts on 2026 just given the momentum you're seeing? And then I'll have a follow-up. Robert S. Stefanovich: Just on '26, obviously, on '26, we'll give guidance typically at year-end. We are providing some outlook in our review, please that's posted on our website. related to the expectations on BLA/MAA filings and approvals. So I'd encourage you to look at that document as well. I think you're looking at the second half of the year, as Jerry mentioned, we're holding to our guidance for the full year. There's certainly upside opportunity there. But typically, we would expect obviously a stronger Q4 compared to the Q3 revenue growth. I think overall, in terms of the general performance the first half of the year and the second quarter, obviously, we made significant improvements in terms of gross margins, both on products and services, bringing total gross margin to 47%. So that's a significant increase over prior year. And then from a bottom line perspective as well, if you look at the adjusted EBITDA from continuing operations were for Q2 had a negative $0.9 million from a negative $5.6 million in the prior year or a negative $2.8 million in Q1 of this year. So everything is moving in the right direction. Revenue growth, gross margins as well as the bottom line. And we certainly want to push that forward during the second half as well. So that's I think as much as we can say at this point. David Joshua Saxon: Okay. Great. No, that was super helpful. And then I guess, just on the balance sheet, I mean, $426 million in cash post the sale of PDP, looks like you did some smaller share repurchases over the last couple of months, but I would love just an update on how you're thinking about capital allocation philosophy. You've done M&A in the past, you took a pause there. So would love your updated thoughts there. Jerrell W. Shelton: Yes, David, we did buyback some common stock in the second quarter and we'll continue to take our usual prudent approach to deploying capital. We'll be thoughtful, opportunistic and we'll also be strategic with all the funds that we have, but we'll continue to consider buying back our stock as we think it's significantly undervalued in the market. Thomas J. Heinzen: Just to put a number on it, we did buyback 1 million shares since our last report. Robert S. Stefanovich: Yes. And may just to add, obviously, cash is king in this environment. We did pay back the 2025 convertible notes about $14 million during the second quarter, and we obviously would want to maintain a strong balance sheet while evaluating the various options that we have to apply our capital on, and cash. David Joshua Saxon: Okay. And if I could just, I guess, follow up on that. So any change in your appetite for M&A, or you just want to kind of protect the balance sheet and maybe do some opportunistic share repurchases, is that the message? Jerrell W. Shelton: David, we'll be opportunistic. And if an acquisition comes along, that's compelling, it's accretive. It meets our profile, we'll certainly consider it. But our focus right now is internal. We have some -- we have initiatives going on that we need to execute on. And so we're constantly getting opportunities presented to us. We look at them. And if they're compelling, we will definitely consider them. But there's no plan for any acquisitions at this point. Operator: Your next question comes from Matt Stanton with Jefferies. Matthew Jay Stanton: I wanted to kind of zoom out for a higher level question, maybe for Jerry. Just in terms of the late quarter FDA update on the REMS and certain indications of approved CAR-Ts, what's the early feedback that you've heard from customers? And is there any way to kind of talk about the impact or potential impact this could do to patient volumes and any more color on timing as it relates to that update that we got late in the quarter? Jerrell W. Shelton: Matt, we -- the impact of the ruling on REMS is very positive, and everyone sees it as positive. It's really too early to quantify exactly what that means, but we do think it will make it much easier for everyone in the system. And it will certainly make it easier for rural points of care and so forth. And Mark may want to add to that? Mark W. Sawicki: Yes, I mean, Jerry is absolutely correct. It should have a definitively a beneficial impact. And some of our key clients have already reported on it in a positive way and others are still to report. We would expect to see updated forecasts from our clients and any impact on that during the third quarter. So we should have more clarity at the next earnings call. Matthew Jay Stanton: Okay. Great. And then maybe just on biopharma, I think for the product side, you're talking about animal health, but just in terms of your biopharma customers, either buy product or region pretty robust trends in the quarter. What are you hearing from customers in terms of appetite to spend, how that might vary? We've seen kind of mixed signals from CROs and spend on certain projects, capital- related projects may be being pulled back given the macro, but would just love some updated color in terms of your discussions with your biopharma customers globally. Jerrell W. Shelton: Certainly, there's enough capacity for manufacturing in the industry right now. And I think that Mark might want to be -- he might want to comment on that further. Mark W. Sawicki: Yes. So you've got to take a look at where the pullback is occurring. The vast majority of the pullback is really directed through the NIH and ties into really preclinical and late preclinical activity. So R&D and preclinical. Our focus is really on the clinical and commercial space. And the vast majority of our clients are well funded and have significant relationships with in large pharmas and others. So we don't anticipate a negative impact from that perspective. And in fact, obviously, I think the demonstration of the continued increase in acceleration of the clinical trials supported up to 728 and an increase of 44 year-over-year, an increase in Phase III trials demonstrates the continued support of that portfolio, which will have significant benefit for us over time. Matthew Jay Stanton: And maybe just 1 more if I could sneak in. Just, Robert, on gross margins in the back half of the year, obviously, the implied guide has revenues kind of coming down a bit from 2Q levels, first half saw a lot of good progress on gross margins. Should we expect gross margins to step down modestly in the back half of the year from kind of that 46% in the first half? Or do you think that's kind of a sustainable level going forward just given the numbers... Robert S. Stefanovich: I think we're certainly going to try to sustain it during the second half. Typically, we would expect gross margins to increase further just due to operating leverage but we do have some newer initiatives, as you're aware, like IntegriCell and building out some of the facilities in Paris and Belgium and ultimately, California. So that will have some impact on gross margins as they start ramping up. So I would look at for modeling purposes to keep it relatively flat. Jerrell W. Shelton: It would be a temporary impact. Robert S. Stefanovich: Yes. Our stated goal based on reaching operating leverage is really to get to gross margins in excess of 55% with adjusted EBITDA margins of 30%. Jerrell W. Shelton: And we think that's highly achievable, Matt, over time. It just takes a little time. Operator: Your next question comes from Paul Knight with KeyBanc. Paul Richard Knight: Mark, as you've seen this commercial market accelerate, what are you seeing in terms of competitive dynamics? Are there will major players trying to be there are some customers wanting to home brew. What are you seeing or learning as the commercial side grows faster? Mark W. Sawicki: To be honest, we're seeing more and more of folks that really want the security supply and the scalability that we offer. We're supporting the vast majority of the commercial space today and are actually engaged in discussion around expansion of what we're doing beyond traditional biologistics, into our other service areas. That's why you see the nice step-up in our Bioservices revenue. And we're also very active on integration. So most of the bigger players that you may be referring to actually want to work with us, not against us. They want us to be a component of their offering because of the strength that we have in the space, and the DHL deal that Jerry talked about is an example of that, but you'll see more of those types of announcements in the coming months and quarters as other larger players in the space want to work with us collaboratively, not competitively. Jerrell W. Shelton: Yes. And you shouldn't underestimate the power of that integration, Paul. The integrated solution is what is being sought out more and more, our clients want to simplify their efforts. I mean -- and so our integrated temperature-controlled supply chain solutions are picking up steam. Paul Richard Knight: And Jerry, on MVE, do you feel like in the biopharmaceutical market that I guess it was destocking post COVID, do you think that's starting to be bottoming at this juncture? Jerrell W. Shelton: Well, my thinking is that most of that excess capacity that was built up during COVID has been burned off and that the market is stabilizing. We've had 3 good quarters at MVE with a solid 8% growth this past quarter. And so I think it's returning to normalcy. Paul Richard Knight: And then lastly, Robert, I guess we should expect some continuing EBITDA margin expansion because I'm assuming you have a lot of your infrastructure built in, except for IntegriCell. So top line should drive natural EBITDA progression? Is that kind of the logic? Robert S. Stefanovich: I think you're right. I mean, it will depend on the top line growth in terms of the EBITDA achievement in Q3 and Q4. We do have a couple of initiatives, IntegriCell being one of them and with that also the build-out of our facilities in Paris and some further build-out of capabilities in Belgium. So there will be some additional headcount and expenses that we'd expect to ramp in -- later in the second half. But in general, yes, we're certainly driving towards profitable revenue and positive EBITDA. Operator: Your next question comes from David Larsen with BTIG. Jenny Shen: This is Jenny on for Dave. I apologize if you already spoke about this in the beginning of the call, I'm juggling a couple of calls here. But can you just talk about your updated view on tariffs, your expectation for costs, whether you're passing along the full costs or partial costs to customers and what their appetite to accept those higher cost has been? Mark W. Sawicki: We've seen really no real impact on tariffs across the business. Any tariffs that we do have an impact on our business, we would absolutely pass through. And we have a precedent for that through historical COVID, which our clients are well aware. So if there is any impact from a tariff standpoint, it would be passive, but we haven't seen anything material to date. Operator: Your next question comes from Subbu Nambi with Guggenheim Securities. Thomas VonDerVellen: This is Thomas on for Subbu. I just want to touch on the guide again. Can you just talk about where the offset is to that headwind from lower Sarepta revenue in the reiterated guide? Is that just stronger performance across the portfolio?. Robert S. Stefanovich: I think in general, it's just a strong portfolio. You can see we had increases, obviously, in commercial revenue, we had increases in clinical trial revenue and in clinical trial count, so we've really seen increases across the board in our services lines as well as the product lines. Thomas VonDerVellen: Okay. And then how much of the second half guide for revenue depends on pharma, clinical and commercial milestones that may be out of your control? Or is that largely derisked at this point? Thomas J. Heinzen: Any -- just to remind you, any new approvals that would happen here recently take a while to ramp. So that isn't really a part or a factor in our guide. Thomas VonDerVellen: Okay. And then if I could just sneak 1 more in on China here. Any updates you can share on how you're progressing there and any milestones you can point us to as we look for growth in that region for you guys? Jerrell W. Shelton: We're not expecting our market to expand in China or any recovery in 2025, and that's reflected in our guidance. We continue to monitor our customers there and the various domestic government stimulus programs but nothing really has changed that much. Operator: Our next question comes from Mac Etoch with Stephens Inc. Steven McLaurin Etoch: Now that the DHL transaction is closed. Can you comment on how your customers are responding to Cryoport becoming a little bit more carrier agnostic? And what has the feedback been thus far? Mark W. Sawicki: Overall, it's been extremely positive. Folks are excited to see what the lift benefit from DHL will be as it relates to, obviously, logistics solutions and flexibility, it also obviously provides them the ability to continue to work with their carriers of choice. And to weave in DHL competencies on a complementary basis. So overall, I think very, very positive. Jerrell W. Shelton: Mac, this is just beginning. We just began the launch and DHL is a huge company approaching $100 billion and so -- the in revenue. And so it takes a little while to get these things into place. So this is not -- it's not like -- it's not instant. It does take a little while to get them in place. But Mark is correct about the direction. Steven McLaurin Etoch: I appreciate that. And just following up on IntegriCell, obviously, it's a little margin dilutive at the moment as you ramp. But I was kind of curious if you could give some qualitative aspects of what you expect the long-term margin profile for that business line. Jerrell W. Shelton: I'll turn it over to Mark, but -- in just a second, but I -- IntegriCell is just ramping up. And it's a revolutionary service. I mean, the way we've put it together, the cryopreservation service. And we're doing some tech transfers right now in both Houston and in Belgium. And so we expect some revenue in the fourth -- in third or fourth quarter, late third quarter, maybe fourth quarter of this year and then more significant revenue, of course, in 2026. So it's coming along on schedule and development. We're very enthusiastic about it. It does have a very good financial profile for the future, and I'll let Mark talk about that. Mark W. Sawicki: As Jerry had mentioned, we've historically discussed gross margins in the 60% range at maturity for our service business, and we expect the IntegriCell business at maturity to be in line with that expectation. Operator: Your next question comes from Puneet Souda with Leerink Partners. Puneet Souda: So first one, I just wanted to confirm, that was $2 million headwind for annual for Sarepta, were you baking in anything for 2026 there, and are you seeing any signs of broader caution or delays among the AAV, gene therapy programs or clients. You talked about 5 of them that you're supporting, they received negative opinion by FDA. I just wanted to make sure if that's -- those 2 issues are tied together. Jerrell W. Shelton: I turn the technical side, the gene side over to Mark in just a moment. But Puneet, we haven't baked anything into 2026. We haven't commented on 2026, and we will -- but we will later on in the year after our budgeting and so forth takes place. But -- so we'll reserve that one. But in terms of the other part of your question, Mark, do you want to answer that part? Mark W. Sawicki: Yes. I view this really as just -- you had a change in administration, you had a change at the FDA, which obviously, they had a to get in and get their feet wet, so to speak. And I think that some of the data that you've seen is then just really trying to get an understanding of the space a bit and taking a little bit more cost around the data side of some of these filings. So you have that as obviously a little bit of caution but you also see very positive responses from the FDA as it relates to things like REMS, so I think that on a whole, we don't see any material impact to what we expected historically around the market opportunity associated with cell and gene commercialization. I'm not sure if, Tom, you want to add anything to that or not? Thomas J. Heinzen: Just Puneet, to, I think, maybe clarify one. The $2 million headwind from Sarepta is for the second half of the year only, not for the full year. Puneet Souda: Got it. Okay. And then on MVE, could you clarify which end market where you saw the most growth. The animal side? Is it the pharma? Maybe just walk us through which business line actually drove MVE growth for you, maybe in the distributor channel. Thomas J. Heinzen: Well, it was a solid second quarter, but it was really overall balance demand. The animal health market was particularly strong on the [ dewar ] side. They had a record amount of [ dewar ] sold on the animal health side, but it was also solid for cryogenic systems sales in the APAC outside of China and in EMEA. Puneet Souda: So majority of the growth was in APAC. Just wanted to clarify because we're constantly hearing about capital equipment challenges, so I wanted to square that and make sure I understand correctly, where the MVE growth is coming from? Thomas J. Heinzen: So it's APAC outside of China, EMEA, North America was okay. It wasn't a record or anything like that. And then on the [ dewar ] side, it was balanced across animal health companies across the globe. Puneet Souda: Got it. Okay. And then maybe just last 1 for me. With -- you highlighted DHL, but just wondering, are you seeing any change in the competitive landscape overall? You have a number of other logistics companies that have been looking at these markets. Just wanted to get a sense of if you're seeing any change in the competitive dynamics or the market share for clinical trials? Jerrell W. Shelton: Nothing significant. Everything we see is positive, and we do have a distribution strategy. The first part of that was DHL. We're talking about the global companies in addition to what we already have. And actually, we can support most of those companies that you were talking about or referring to. So nothing significant there to talk about other than, It's positive. Robert S. Stefanovich: Yes. And as you can see from the data, we're continuing to increase the number of clinical trials we support, we're continuing to fortify our leadership position via the expanded solutions. And you can see the BioStorage/Bioservices has grown significantly in Q2 by 28%. So really, everything points to us continuing to build out our leadership position really being the dominant player for cell and gene supply chain solutions. Operator: And your next question comes from David Larsen with BTIG. David Michael Larsen: I hopped on the call a little late on traveling. Can you just talk about how MVE results came in relative to your own expectations. It looks like it's up 8% year-over-year on [ expensive range ], any more color there would be very helpful. And it looks like it's kind of turned around and it's now growing again. Robert S. Stefanovich: Yes. I think, look, MVE performed well with 8% growth year-over-year. We have seen certainly improved demand for MVE's products. And as we said in our press release as well, MVE is also bringing out new products into the market. So there's also innovation going on that we believe will drive demand and further demand as well. On the margin side, they're showing strong, robust margins. They've grown margins over prior year, about 2.6 percentage points to 44.9%. So it's a strong, good business. It's a profitable business. And as you know, it's -- again, it's by far the leader globally for cryogenic systems. So that includes the [ dewars ], the freezers and related accessories on a global basis. David Michael Larsen: That's great. And then can you just talk about the broader market like the CRO space was under pressure earlier in the year. There's a lot of uncertainty around like the IRA,a different like -- 3 different executive orders, tariffs, and then it looks like maybe CRO sort of came back with demand now progressing. Just what are you seeing in terms of overall sentiment from your customers clinical trial activity demand for the [ dewars ]? Just more color there would be very helpful. Mark W. Sawicki: Yes. So obviously, you can see by our clinical trial count, and the increase that the market is -- continues to be very resilient and positive for us as it relates to cell and gene clinical engagement, we have extensive engagement with the CRO community as well as the CDMO community. The CDMO community has come back with very strong results which we think demonstrates the strength of the space since they are the -- obviously the leader in the actual production of a lot of these clinical materials that ultimately we move from 1 place to another. So overall, I think that the sentiment in the cell and gene environment despite, obviously, some of the shorter-term funding challenges that you see in earlier phase programs as well as the FDA have not impacted our portfolio and obviously have not impacted the CDMO community. So we're very positive overall. David Michael Larsen: [indiscernible] Good quarter. Congrats. Operator: There are no further questions at this time. I'm pleased to turn the call back over to Jerrell Shelton. Jerrell W. Shelton: You ended there pretty quickly. Thank you very much for your questions, all of you, and thanks for the discussion. In closing, we delivered a strong second quarter performance across all areas of our Life Sciences business. The Life Sciences Services business, which is a key to our future growth, grew 21% year-over-year, led by a 28% increase in BioStorage/BioServices revenue and a 33% gain in commercial cell and gene therapy support. We also saw an increase in demand in our life sciences products, which generated a solid 8% revenue growth for the quarter. We want to thank you for joining us today. It was a great quarter, and we appreciate your continued support, interest in our company, and we look forward to speaking with you again when we report on our third quarter financial results. We wish you all a good evening. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you so much for your participation. You may now disconnect. Before you buy stock in Cryoport, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cryoport wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cryoport (CYRX) Q2 2025 Earnings Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Tuesday, Nov. 4, 2025 at 5 p.m. ET Chief Executive Officer — Jerrell Shelton Chief Financial Officer — Robert Stefanovich Chief Scientific Officer — Mark W. Sawicki Vice President of Corporate Development and Investor Relations — Thomas Heinzen Todd Fromer: Thank you, operator. Before we begin today, I would like to remind everyone that this conference call contains certain forward-looking statements. All statements that address our operating performance, events or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team. Our management team believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors and elsewhere in our annual report on Form 10-K to be filed with the Securities and Exchange Commission and those described from time to time in the other reports which we file with the Securities and Exchange Commission. As a reminder, Cryoport has uploaded their third quarter 2025 in review document to the main page of the Cryoport Inc. website. This document provides a review of Cryoport's financial and operational performance and a general business outlook. Before I turn the call over to Jerry, please note that because of the strategic partnership that has been established with DHL Group and related sale of CRYOPDP to DHL, CRYOPDP's financials, which were previously a part of Cryoport's Life Sciences Services reportable segment are now presented as discontinued operations. Cryoport previously provided quarterly historical information on this basis for fiscal year 2024 and our first quarter 2025 in review document, which remains available on the Cryoport, Inc. website. This information is intended to support the financial modeling efforts of those needing this information. Please note that unless otherwise indicated, all revenue figures discussed today will refer to continuing operations. This includes Cryoport's fiscal year 2025 revenue guidance. It is now my pleasure to turn the call over to Mr. Jerrell Shelton, Chief Executive Officer of Cryoport. Jerry, the floor is yours. Jerrell Shelton: Thank you, Todd, and good afternoon, everyone. With us this afternoon is our Chief Financial Officer, Robert Stefanovich; our Chief Scientific Officer, Dr. Mark Sawicki; and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. During the third quarter, we continued our strong momentum, delivering double-digit growth in both our Life Sciences Services and Life Sciences Product segments. Notably, revenue from our support of commercial cell and gene therapy grew 36% year-over-year to $8.3 million, driven by the continuing global adaptation of these life-saving therapies. It is imperative that the growth of the -- it is impressive rather it is impressive that the growth of the regenerative therapies market, which we believe is still in very early stage of development, has remained resilient despite ongoing challenging macroeconomic, political and geopolitical backdrops. Within Life Sciences, revenue increased 16% year-over-year and represented 55% of our total revenue from continuing operations for the quarter. This included a 21% increase in the BioStorage - Bioservices revenue, underscoring the persistent demand for our integrated platform. Driving this growth is the rising prevalence of chronic and rare diseases, prevalence of chronic and rare diseases, coupled with continued advancements in cell and gene therapies targeting solid tumors and autoimmune diseases. We also are encouraged by signs of stability in our life sciences product market, where revenue grew 15% year-over-year, driven by improved demand for our market-leading cryogenic systems. In the third quarter, we expanded our product portfolio with the launch of MVE Biological Solutions next-generation SC4/2V and SC4/3V vapor shippers. These cryogenic systems models have been redesigned, utilizing innovative technologies to offer customers added protection during extended or challenging shipments and include several key advancements designed to enhance the performance and reliability. MVE's newly designed condition monitoring solutions for these doors are integrated with each unit, combining our trusted cryogenic systems with advanced real-time condition monitoring technology supplied by Tacromed, another Cryoport company. These innovations reflect MVE's unwavering commitment to support the life sciences with advanced intelligent connected assets to safeguard vital biological materials. Beyond our core systems and services, we are progressing on a number of other growth initiatives designed to better serve our clients and diversify our revenue streams. These initiatives include the onboarding of our first clients for IntegriCell, our cryopreservation services located in Liege, Belgium and Houston, Texas. These cryopreservation services are designed to address a critical aspect in optimizing the supply chain for the development and commercialization of cell-based therapies through high-quality standardized cryopreserved starting materials. We're excited by IntegriCell's recent progress as it moves forward to become a significant revenue and profit generator. Additionally, in late October, we opened the logistics portion of Cryoport Systems' new state-of-the-art global supply chain center at the Charles de Gaulle Airport in Paris, France. This 55,000 square foot facility provides us with increased ability to serve our clients in the European and global markets. It is designed to support complex life sciences life sciences supply chain needs, including biologistics, bioservices and future cryopreservation services. An official grand opening is scheduled -- is to celebrate the launch of this facility will be held on November 20 with Bioservices opening in mid-2026. In addition, we are also advancing toward opening a global supply chain center in Santa Ana, California, which is expected to come online in the second half of 2026. This facility will consolidate 3 existing locations and feature next-generation technology to optimize operations and client support. Complementing all of these activities, we have begun implementing our recently established strategic partnership with DHL Group. Due to the -- to DHL size, this strategic relationship will take some time. And when completed, it will enhance our positioning in the APAC and EMEA regions and reshape our competitive profile within the industry by leveraging DHL's global scale and capabilities. Regenerative medicine has been advancing steadily, largely driven by the expanding pipeline of regenerative therapeutics entering clinical development and commercialization. Despite any short-term headwinds, cell and gene therapies have continued to enter and move through the clinical pipeline, which should ultimately result in growing revenue from commercially supported therapies. Cryoport's temperature control supply chain solutions are supporting the largest portfolio of clinical and commercial gene therapies in the world with a record total of 745 global clinical trials and 83 of these in Phase III, representing approximately 70% of the cell and gene therapy clinical trials. In the third quarter, 4 BLA MAA filings occurred and 3 more were filed in October. For the remainder of 2025, we anticipate up to an additional 7 application filings, 1 new therapy approval and 2 additional approvals for label or geographic expansions or moves to earlier lines of treatment. Of course, the timing of these filings may be impacted by the current government shutdown of the FDA in the United States. While global trade conditions remain dynamic, Cryoport did not experience any new material impact from tariffs in the third quarter. Furthermore, we have, of course, taken steps to diversify our supply chain to mitigate potential impacts that could come as a result of tariffs, impacts not covered by these mitigations are covered by surcharges. With the strong momentum we have achieved year-to-date and our progress across the board, we are updating our full-year 2025 outlook for total revenue from continuing operations to the range of $170 million to $174 million. Our team is dedicated to building long-term value for our shareholders. Cryoport is maintaining and growing its competitive differentiators as the only pure-play end-to-end temperature-controlled supply chain platform that supports the largest portfolio of clinical and commercial cell and gene therapies globally. This concludes my remarks. So I'll now ask the operator to open the lines for your questions. Operator: [Operator Instructions] Your first question comes from the line of Kyle Crews from UBS. Kyle Crews: Congratulations on the quarter. Maybe just to start, the high end of the guidance implies a sequential decline in revenues. At the same time, you're seeing positive momentum across the entire business. You have an increased number of commercial therapies supported higher number of clinical trials, and you've launched new products within MDE. Can you help us reconcile that with the implied sequential decline in guidance? And then for a second question, can you discuss if the recent release of the triple FDA draft guidance is that support making clinical trials easier has resulted in an uptick in clinical trial interest at your company? Jerrell Shelton: Well, you had a lot of questions in there. And I think Robert will start answering your financial questions, and Mark will address your FDA question. Robert Stefanovich: Yes. Look, you're certainly right in terms of how you phrased the question. Given all the macro uncertainties right now, we think it's a responsible guide. It balances the momentum that we are seeing versus the macro conditions, such as the current government shutdown and the ever-changing tariff landscape. I think we've managed it to date very well. And we're obviously, of course, focused on profitable and disciplined growth. If you look at the revenue guidance and the increase in revenue guidance represents about 8% to 11% revenue growth over the prior year from continuing operations. But as you said, at the same time, we continue to be very bullish on our market-leading position. We feel that our long-term growth rate will be close to that of the cell and gene therapy market, as you can see in our Q3 performance, and as more and more commercial therapies come to market. In fact, if you look at our commercial revenue right now, it's already a fairly significant portion of our total revenue. I think it's roughly about 18%, 19% of total revenue. So we're trying to balance those 2 parts. One, the cautious view on the macro uncertainties, but at the same time, we are very bullish in terms of the outlook and bullish in terms of finishing the year strongly. Jerrell Shelton: Mark, do you want to answer the FDA portion? Mark W. Sawicki: Sure. Assuming you're referring to the REMS requirement, is that correct? Kyle Crews: No. They recently released 3 new draft guidances related to clinical trials. Yes. Mark W. Sawicki: Yes. So obviously, yes, some of the draft guidance announcements that you're talking of that came out recently, some of them are targeting some generic small molecule programs. Those don't have a significant bearing on our market. Those that are aimed at the orphan markets and those that are focused on driving biologics approvals much more quickly, are impactful to us and our clients, and we do believe that those will help drive more activity in the future from a BLA standpoint. Just turning to REMS because I think it's important to understand that one, too. So the REMS requirement, which has also one that's been announced, will have an even more impactful positive impact for us as it will drive the implementation and utilization of cell therapies into the community care setting. And I think if you look at both BMS and J&J's CARVYKTI revenue in Q3, both of them had very strong growth. And in fact, CARVYKTI folks even came out and said almost 80% of the patie. Kyle Crews: Great. And then maybe just one last one. Can you discuss whether you're seeing increasingly different trends within gene therapy and cell therapy within the broader cell and gene therapy market? Mark W. Sawicki: Yes. I mean, obviously, there's a little bit of tentativeness around financing in the gene therapy space because of some of the challenges that have been seen, but that doesn't impact the long-term opportunity. And so there are still a lot of new start-ups in the gene therapy space. There's a lot of activity and investment that's going into the gene therapy space. But obviously, the lion's share of funding at this point is still going into the cell therapy side of things. And obviously, with the number of potential approvals moving forward later this year. We've got another potential, as Jerry mentioned in his introductory comments, and potentially another 7 filings this year, and potentially even another 1 new and 2 supplemental approvals this year. So there's very strong activity in the cell therapy space as well. Thomas Heinzen: Just to round that off, Mark, just would point out in our review piece, we broke down by percentages the clinical trial portfolio that we have. And the number of gene therapies in there is a single-digit percentage, and the number of vaccines is even smaller. It's like 3%. So we're much more exposed to the cell therapy side of the world. Operator: Your next question comes from the line of David Saxon from Needham. David Saxon: Congrats on another strong quarter here. Maybe, Robert, I'll start with you. I didn't hear anything on EBITDA guidance. I think the expectation is to reach profitability on a quarterly basis sometime this year. So is that still the expectation? And then how should we think about profitability as it relates to 2026? Could you see that on a full-year basis? Or are there any meaningful investments we should be aware of? Robert Stefanovich: Yes. No, thank you. As you can see from our '25 performance to date, the adjusted EBITDA, we improved it by over $10 million for the first 9 months, bringing our adjusted EBITDA loss in Q3 to $600,000. So we are getting very, very close to getting and crossing the line to positive adjusted EBITDA. From a cash flow perspective, cash flow from operating activities was positive for the quarter. We had about $2.2 million positive cash flow from operating activities. And we think we can get to positive EBITDA. We're very close to it as early as year-end. That was our target. At the same time, I do want to highlight, we're obviously trying to balance some of the growth initiatives that we have with driving towards solid positive EBITDA. There are some specific client-driven growth initiatives that we have, including the global supply chain center that we're opening in Paris this month, as well as the IntegriCell platform that we started out a while back. And those, in some cases, require some upfront investments. So that's really balancing those 2 parts, but we're certainly making very strong progress towards that goal. And overall, we like our momentum. We like the positioning that we're in, and our teams are working towards executing on that goal. In terms of profitability itself and crossing the line of profitability, we have not given guidance. Our main focus is really on executing on our initiatives, driving positive EBITDA, and obviously creating that pathway to profitability. Jerrell Shelton: David, you've heard us talk about the pathway to profitability before, and we certainly are on that pathway to profitability. And as Robert points out, we're moving toward positive adjusted EBITDA. And so we think possibly we can get there in the fourth quarter and certainly early next year. And that's a surrogate for cash flow. But remember, we have a number of facilities, which I went over in my opening comments. I just mentioned a couple of examples, a number of capital investments taking place. We know that those are the right capital investments. We vetted them thoroughly. We know that they're the right thing to do for the future. But as we're building those out in today's accounting, it does affect your income statement. So our pathway to profitability includes all the things that Robert said, plus building out those facilities and then starting to experience the operating leverage that comes with getting those facilities up and running and utilized. David Saxon: Jerry, maybe my second one is for you. Just on product, that growth really improved versus kind of the first half. So maybe talk about what's driving that strength? How much of that is market versus some of those new products you called out, maybe driving some mix benefit? And then in terms of the backlog, I guess, can you talk about that at least qualitatively? And then what level of visibility does that give you into the product growth outlook as we head into 2026? Jerrell Shelton: David, we talked about backlog a lot during the COVID period because we had an extraordinary period. But we don't talk about backlog now as much because we are on more normal -- we're in a more normal market, which is about a 6- to 8-week lead time. It's no longer 6 months or a year lead time. It's back to the normal, which is about 6 weeks lead time. So we do monitor our sales trends. We do monitor our order intake, and that order intake does give us indication that the market is beginning to stabilize. And of course, government shutdown hasn't helped us there any, but it still continues to go on. It hasn't helped us because it does slow down the government sales that are associated. But so we're doing well in terms of the industry and the stabilization. There was no impact on the new things that I talked about in my comments and opening up. No revenue coming in from that. It wasn't time. It does take time for these things to get out. The 3 -- the 2 doors that were developed with the integrated condition monitoring at MVE are focused on the animal health business. And so that's a seasonal business, and there will be an uptake there. But we have a number of things going on at MVE. Does that answer your question, David? Or is there other parts to it? David Saxon: That was super helpful. I guess maybe if I could rephrase it, like how -- the market has been stable year-to-date. I guess as we think about our models for 2026, like do you -- is making the assumption that, that continues a fair assumption? And then with, I guess, those product launches in the animal health space, maybe some increased demand across the other end markets, like maybe how should we frame or how would you frame product growth potential for 2026? Jerrell Shelton: I would look at it with stability and use a very high single-digit growth rate. Operator: Your next question comes from the line of Puneet Souda from Leerink Partners. Puneet Souda: So maybe first one on some of the cell therapy exits that we have seen. I mean you're delivering relatively strong growth. Some of it is comps, but some of it is just overall market stability, which you talked about. But just trying to understand if you could contrast with what we're seeing, Takeda exiting its allogeneic programs, Galapagos is winding down their programs. Novo is divesting its cell therapy assets. Are you seeing any downstream impact from those exits on your pipeline or the service demand overall? And then within that, as Jerry said, high single-digit growth -- is that still something you -- I mean, is that you're contemplating into 2026 and '27, just given sort of these exits? And maybe just provide us any context for backfilling some of these programs that might have been lost. Jerrell Shelton: Yes, Puneet, we're honored that you're on the call because we thought you might miss it because of conflicts. But let me start, and then Mark will add to what I have to say. First of all, the 9%, I said high single digits, so you said 9%, that's fine. But that supplies to MVE product segment and you mix product and services. And so in the Service segment, where you have Galapagos, you've cited and some of the other activity that's happened, that's -- that's normal to me. You should probably know this, but it's normal to have puts and takes. And people make their investments and other -- and sometimes they can support them financially going forward. Sometimes they can't. Sometimes they're rationalizing what they're doing, and we have no insight on that. What we do know is we are continuing to grow. We continue to see robustness. We have an increase in the clinical trials that we support with 83 being in Phase III. I think it was 83 in Phase III. And we're doing well, and we see a continued buoyancy in the market. This science is not going to stop. It's going to change the way medicine is practiced around the world. It just takes time. And it has had some headwinds, but it's buoyant, it's strong, and we're growing, and we intend to continue to. Do you want to add to that? Mark W. Sawicki: I think you answered it pretty well. The only thing I would just add is Jerry is right. I mean, I think some of the changes that you mentioned are really strategic portfolio decisions. I don't think they're market-driven decisions. There's also other companies that are putting a lot more money into and expanding their programs from a top 5 pharma standpoint. So we don't have a level of concern around that. As Jerry had mentioned, very strong pipeline activity, very strong activity from a regulatory standpoint. As we had mentioned, upwards of another 7 filings this year, upwards of potentially another 25 filings next year. So there's a lot of activity in the space, which will continue to expand the number of commercialized therapies and the revenue associated with those therapies as the market matures. Thomas Heinzen: [Indiscernible]. Could I thing in there just to pile on? Mark W. Sawicki: Yes, Tom, please. Thomas Heinzen: Just to point out, September funding in biopharma was quite strong, and October was the best month of the year so far. We had over 20 IPOs and follow-on offerings of greater than $100 million in October alone. So some of the programs you mentioned are falling off, but certainly other ones are coming in up and taking the place. Puneet Souda: On the government shutdown piece and the implied 4Q guide, I'm just trying to understand how should we think about the segments within the guide for the fourth quarter, Bioogistics versus BioStorage, Bioservices versus the MVE Life Sciences product line. Maybe just help us understand -- how should we think about modeling each of those, if you could provide some segment commentary? And just maybe just if you could pinpoint in the government shutdown exactly, I mean, what are customers telling you? What are some of the worries here if this shutdown extends into December? Jerrell Shelton: On the first part of your question, Puneet, it depends on what you think about the government shutdown. Frankly, the government shutdown is temporary. Right now, you can't make a filing, you can't pay your fees for a filing. But that's going to end soon. It can't go on forever, and there's an election coming up, which I think will motivate a political end to the shutdown. And then we'll see some things open up. We'll see things start to move through, and we'll catch up. So it's not going to last forever. The government shutdown is. And again, under the backdrop we've had, we've shown substantial growth in spite of any headwinds there. Mark, do you have anything to add to that? Mark W. Sawicki: Yes, I think you answered it well. I mean, yes, from a service standpoint, we haven't seen any impact other than the delay in filing activity, which they just can't do because they can't pay -- as Jerry mentioned, their filing their application fees. That's the only impact that we've seen is there may be a short-term delay in some of the filing activity, but the service activity still remains very robust. And then just looking at Q4 without going into too much detail, obviously, we expect year-over-year increase on the services side. On the product side, it largely depends on timing, especially if you look at some of the larger freezer orders or even some of the potential delays in government shutdown, that they could just have an impact on timing of whether those are going to come in, in Q4 or be shifted in Q1. Jerrell Shelton: That's because they're capital expenditures and somebody has to sign off on them. Does that help you? Puneet Souda: Yes. Operator: Your next question comes from the line of Matt Stanton from Jefferies. Matthew Stanton: Maybe one for Mark. Just on the commercial trends, you're tracking up over 30% here year-to-date. It sounds like you saw some approvals here early in the quarter to continue more filings and then I think next year, '25, which is a big number. Can you just talk about the durability of the growth in terms of what you're seeing here from customers? And as we think about that kind of 30% plus, how you feel about that on the commercial side into '26? And I mean, is there opportunity for that to accelerate even further if some of these things kick in on REMS or some of these filings kick in, and to your point earlier, start to get signed off and get out there? But just talk about the kind of growth algorithm on the commercial side. Mark W. Sawicki: Yes. I think as you focus, you're going to focus on two things. One is the existing therapies as they mature, they move to earlier line and they go through global expansion. And as we had mentioned earlier, I mean, both BMS and Janssen and J&J have come out with very positive comments around growth and their data -- their financial data supports that. [ Janssen ] said their goal is 10,000 doses by year-end and 20,000 patients by the end of 2027, which is a substantial increase. And then you have the newer therapies as they launch, they're also expecting significant ramps. Vertex has come out and said they expect to see CASGEVY start to ramp more significantly. And then we have other data on some of these earlier launches, so which most of it has come out at or ahead of guidance. So if you take those in addition to the new filing activity, we think it will remain robust in '26 and beyond. Matthew Stanton: Great. And then, Robert, maybe just to go back and know a few times just on the 4Q ramp. I mean, I know last quarter, you guys were kind of saying 4Q probably higher than 3Q, part of that seasonality. Obviously, 3Q came in better than we expected. Is it fair to say that the sequential quarter-over-quarter implied 4Q, I mean, the government shutdown, maybe some of the timing you talked about, I mean, is that kind of a low single-digit million impact tied to those and maybe erring on the side of conservatism? Just kind of thinking about three months ago, 4Q higher than 3Q and now we have kind of the opposite playing out. And maybe just confirm there was nothing kind of that fell in 3Q that you had previously expected to fall in 4Q. Robert Stefanovich: No, no, there's not. But you already really framed it. Yes. I think it's really balancing that and looking at our guidance. Certainly, we have upside potential, no question. But given some of the uncertainties, we felt that guidance kind of reflects where we stand right now to acknowledge some of those other aspects that we discussed earlier. Operator: Your next question comes from the line of Subbu Nambi from Guggenheim. Subhalaxmi Nambi: You recently announced the Cryoport Systems received ISO certification. Could you speak to what this means in terms of your customer win rate or any competitive dynamics? How meaningful is this? Jerrell Shelton: I want Mark to speak to that. But in addition to that ISO, we've also won an award or two and certainly one that we're proud of, and we did help on that ISO. So Mark, take it away. Mark W. Sawicki: Yes. So ISO 21973, which is really around the governing of handling of cell therapy-based materials is what we received that certification in. We are the first entity that has received a formal ISO certification. Others have claimed that they have compliant with it, but we actually have received a certification from the ISO governing body related to that. Yes, on a global basis. So what it really does is it reinforces us as the best-in-class and the gold standard as it relates to the management of these therapies on a global basis and reinforces, obviously, the quality paradigm that we have. And I think as you look at our growth as it relates to commercial revenue as well as our clinical trial adds, the market continues to respond very favorably to that as they continue to put a larger share of the overall clinical trial count as well as the commercial activity into our portfolio. So we believe that will be a continued positive influence on decision-making by our clients and sponsors. Jerrell Shelton: You might mention that award that we won also. Mark W. Sawicki: Yes, we actually won two awards, CPHI award, which is one of the larger chemical industry awards for excellence of supply -- temperature control supply chain solutions. And then we also won another one from a biotech agency, which also reinforces that in the quarter. So I think the markets are absolutely responding to our platform is best-in-class. Subhalaxmi Nambi: That's great. Any updates you can share on how you're progressing with your China first strategy? What milestones can we expect as we look to growth in that region for you guys? Jerrell Shelton: We have not assumed any growth in China for the -- will not be assuming any growth in 2026. There's no change right now. We do have some efforts underway. It does take time to implement strategies of that nature. And we hope by 2027, it will be -- certainly one thing, we cannot ignore China. It is an advanced country. It has a very big population, and it has resources and it can move very quickly. So we will continue to work on our China strategies, but we don't have anything we can report right now. Subhalaxmi Nambi: Perfect. And last one for me. Is there a potential for a catch-up heading into 2026, just given the environment is improving, something that you touched on previously? Jerrell Shelton: You're talking about a catch-up in terms of--- What are you talking about, Subbu, in terms of catch-up? Subhalaxmi Nambi: Catch-up as in ordering. Just do you anticipate there could be some sort of catch-up orders next year? Thomas Heinzen: I think she's referring to the product side, guys. Robert Stefanovich: Yes. When you talk about the products, I think what we said is it's really stabilizing. I don't think we can speak of that at this point in time. And in general, conceptually, obviously, more and more material is being developed that requires cryogenic storage and MVE being the largest global provider of storage and cryogenic systems, certainly, we will be the first beneficiary of that. But at this point, it's just stabilization of the market that we can see. Operator: Your next question comes from the line of David Larsen from BTIG. David Larsen: Congratulations on another very good quarter. It looks like the number of clinical trials, the growth rate year-over-year was the highest it's been in like 2.5 years. And just any thoughts on The Big Beautiful Bill Act, reductions in Medicaid enrollment, reductions in exchange enrollment, maybe as high as 10% or 30%. Does that matter or not? Any thoughts on payer mix? Are most people getting cell and gene therapies? Are they covered by commercial plans, not Medicaid and exchanges? Just any thoughts there would be helpful. Mark W. Sawicki: Yes. I personally don't think it's much impact at all. The vast majority of therapies, by understanding, are not being covered by public funds. They traditionally are typically private plans that are reimbursement at this point. David Larsen: Okay. And then are there -- do you have any concerns around drug pricing like with price caps due to the Inflation Reduction Act or rebate flow limits on price increases? Has that entered into any conversations at all or not? Robert Stefanovich: No, cell and gene therapies are exempt from all of that, Dave. Mark W. Sawicki: Yes. I was going to say the same thing. As said, yes, I mean, the White House has actually come out in support of cell and gene and their interest in continuing to support it in an aggressive manner. And there is -- they are exempt from some of those pricing constraints that the White House is currently working through. Robert Stefanovich: They're also not impacted by any tariff talk either. David Larsen: Okay. Great. So minimal regulatory risk heading into '26. Fantastic. And then in quarters past, you talked about the growth in number of clients at these bio storage facilities, I think, in New Jersey and also like allogeneic storage. Any color there in terms of like capacity or number of client growth? Mark W. Sawicki: Yes. I mean we're still continuing to onboard a significant number of clients at those sites, both existing and new clients. And so that rate continues to be very robust as evidenced by the sales data that we put forth publicly. So we anticipate continued growth in the Bioservices area into '26 based on that. Jerrell Shelton: By the way, David, this is not a singular thing. It's not a singular strand. I mean our -- we built these on a strategic basis. We built them to support our clients and to create more of a one-stop shop and because clients actually prefer doing business with less vendors and especially one that they can trust. So it's kicking in, and our clients are beginning to take hold of our BioStorage Bioservices operations within Cryoport Systems. Mark W. Sawicki: Yes. We're averaging almost 2 audits a week at this point. So that's obviously a significant volume of new workflow that's coming into the facility. Jerrell Shelton: So you're witness a strategy play out right now. David Larsen: Great. One more quick one. IntegriCell, I get questions on that all the time. Just any more color there would be helpful. It sounds like you're building a new facility. Is that going to support global efforts for . IntegriCell? And do you have revenue coming in for that business yet or not? Just any more color would be helpful. Jerrell Shelton: Well, let me start, and Mark can give you more detail. But IntegriCell is another strategic endeavor, and we do have a network in mind, but we are carefully going into the development of IntegriCell. As Mark said earlier, we have revenue coming in at both locations. But I want to see those locations closer to cash flow to positive cash flow before we add other operations. We do have plans for other operations. They will be added. The network will work. All the information that we've gotten so far is very encouraging. And now we're on the uptick by getting customers, clients and revenue coming through those 2 facilities. And I'll just turn it to Mark after that. Mark W. Sawicki: Yes, Jerry, as Jerry -- what Jerry said is exactly right. We opened those facilities at the end of Q3 last year. And the tech transfer process takes time because it's part of the production process. So there's regulatory activity that needs to occur for adoption. But we have completed our first tech transfers from both biotech and top 10 pharma, and we have started to generate revenue from both sites, both the site in Belgium as well as the site in Houston, Texas. And our expectation is that it will -- revenue will ramp modestly in '26 with a significant ramp, almost in a hockey stick modality post '26. Operator: Your next question comes from the line of Mason Carrico from Stephens Inc. Mason Carrico: Robert, maybe just a quick one on margins. Just as this new facility comes online, can you just walk us through how the start-up costs and the ramp and timing have been factored into your model and just how you expect that to influence margins over the next few quarters? Robert Stefanovich: It's a very good question. And it's again one of those balancing acts because you're absolutely right. We have new facilities going online. [indiscernible] went online, as Mark mentioned. We have a Global Supply Chain Center in Paris by the Charles de Gaulle Airport going online with the official opening being in a few weeks from now. At the same time, we are seeing some operating leverage already of the existing facilities, and that allowed us to show gross margins reaching 48% and even higher on the service side in particular. We do typically have start-up costs that we run the SG&A. But then as we open the facilities, you'll see some impact on the margins. So while we see operating leverages in some of the existing facilities that are driving higher margins, you'll have some margin depression by these new facilities coming online and starting to see revenue ramp over time. So that's -- as we start and really '26, '27 is really about that operating leverage, really about driving utilization of the existing footprint -- global footprint that we have that will ultimately drive the gross margins. Our target is 55% gross margins overall and a 30% EBITDA margin. And obviously, there's still some time to go to get to the gross margins, but we'll see that operating leverage kick in later in 2026. Mason Carrico: Appreciate that. And just touching on those long-term margins. Can you just highlight your thinking in terms of timing around those as well? I know it's been a longer-dated proposition. I just kind of want to get your updated thoughts there. Robert Stefanovich: Yes. We're not giving guidance on that at this point in time because it's really -- if you look at the cell and gene therapy market, it is still a fairly new market when it comes to actually commercialization of therapies. So we want to see more progression and more therapies come to market. But we're clearly on that pathway, as you can see in terms of the significant improvements to adjusted EBITDA as a first indicator, and we'll certainly drive that further into '26 and '27. Operator: There are no further questions at this time. Turning over back to Jerrell Shelton, your line. Jerrell Shelton: Well, thank you very much, and thank you for your questions and our discussions. In closing, in the third quarter, we continued to see strong momentum in our business. This included double-digit revenue growth in both our core business segments. Our Life Sciences Services segment, the key driver of our future growth, grew 16% year-over-year, driven by 21% increase in BioStorage Bioservices revenue and a 36% increase in commercial cell and gene therapy support. We also continue to see further steadiness in our Life Science product business, where revenue grew 15% for the quarter. Cryoport is positioned as the critical temperature-controlled supply chain company supporting the life sciences that derisk the end-to-end delivery of cell and gene therapies worldwide. Thank you for joining us today. We appreciate your continued support and interest in our company and look forward to speaking with you again when we report our fourth quarter and our full year financial results. Operator: Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect. Before you buy stock in Cryoport, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cryoport wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,473!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,605!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 4, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cryoport (CYRX) Q3 2025 Earnings Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Wednesday, May 7, 2025 at 5 p.m. ET Chief Executive Officer — Jerrell Shelton Chief Financial Officer — Robert Stefanovich Chief Scientific Officer — Mark Sawicki Vice President, Corporate Development & Investor Relations — Thomas Heinzen Need a quote from a Motley Fool analyst? Email [email protected] Jerrell Shelton, Chief Executive Officer of Cryoport. Jerry, the floor is yours. Jerrell Shelton: Thank you, Todd. Good afternoon, ladies and gentlemen. With us this afternoon is our Chief Financial Officer, Robert Stefanovich; our Chief Scientific Officer, Dr. Mark Sawicki; and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. As a reminder, we have uploaded our first quarter 2025 in review document to our website. It can be found on the main page of the Cryoport, Inc. website. This document provides a review of our financial and operational performance and a general business outlook. If you do not have a chance to read it, I would encourage you to go to the website and download it. Before I review our results, I would like to highlight that, due to our recently announced strategic partnership with DHL and the related sale of CryoPDP to DHL, CryoPDP's financials, which were previously a part of Cryoport's Life Sciences Services reportable segment, are now presented as discontinued operations. Accordingly, we have provided quarterly historical information on this basis for 2024 in our first quarter 2025 in review document. This information is intended to support financial modeling efforts for those needing this information. Please note that unless indicated, all revenue figures discussed today will refer to continuing operations. This includes our fiscal year 2025 revenue guidance, first shared alongside our DHL transaction announcement. Now I'll provide a brief update on our business and then we will take your questions. Cryoport had a solid start to the year with $41 million of revenue from continuing operations for the first quarter, which represented 10% year-over-year growth and helped to drive meaningful adjusted EBITDA improvement. Three things that excited us about the first quarter were: First, client engagement and life sciences services grew substantially, highlighting a new momentum in our business. Second, order patterns for our Life Sciences products continued to show signs of stabilization. And finally, our strategic partnership with DHL. Life Sciences Services revenue in total increased 17% year-over-year, which included our support of commercial cell and gene therapies, which grew 33% over last year. Life Sciences Services now account for 56% of total revenue, and it continues to be driven by the increasing development and commercialization of cell and gene therapies, which we believe, will persist even in the current economic environment. As of March 31st, Cryoport supported 19 commercial therapies and 711 clinical trials, representing approximately 70% of cell and gene therapy trials. Subsequent to the quarter end, a new therapy from our customer, Avino Therapeutics was approved, bringing our total commercial therapy supported to 20. In the first quarter, six BLA MAA filings occurred. Three filings were for new therapies and three filings were for geographic expansion. Additionally, BMS received a supplemental approval from the European Commission to expand the label of Breyanzi as a third line treatment for relapsed or refractory follicular lymphoma. For the remainder of 2025, we anticipate up to an additional 17 application filings, four therapy approvals and additional four approvals for label or geographic expansions or moves to earlier lines of treatment, all of which give us further confidence in our growth forecast. Our Life Sciences Products business continues to show further signs of demand stabilization and grew 2% year-over-year. We are continuing to expand our product portfolio to capture new revenue streams with innovative products, including the MVE High Efficiency 800C, which was released in the first quarter and meets the needs of facilities that have limited space yet require high capacity and security. Another key milestone this quarter was the announcement of our strategic partnership with DHL Group. As a part of our strategic partnership, DHL acquired CryoPDP for an enterprise value of $195 million, which we expect to close in the second or third quarter. We think this arrangement will enhance our positioning in Asia Pac and EMEA and reshape our competitive profile, within the industry by leveraging the global scale and capabilities of our new strategic partner, DHL. Our strategic shift is responsive to market changes driven by the evolution and progress of our industry and provides us with a strong infusion of capital, a substantial return on investment, and a strategic partnership that enables us to sharpen our focus on our core of the Life Sciences Service offerings directed toward the rapidly growing regenerative medicine space. Consequently, we're confident in our organic growth outlook for the full year and are confirming our revenue guidance for fiscal year 2025 in the range of $165 million to $172 million which at the midpoint represents a 7.5% growth relative to fiscal year 2024. Before we begin to take your questions, I want to briefly talk about global tariffs. In situations where tariffs may impact our business, such as potential increases in cost of raw materials, such as electronics, aluminum, stainless steel, we have already taken steps to diversify our supply chain. In situations where we cannot mitigate tariff charges, we will implement surcharges. We have successfully taken a similar approach in the past. For example, during the supply chain challenges experienced during COVID, we were able to maintain solid financial margins. To be clear, we are beginning to see impact from tariffs on aluminum and we will pass those costs through a surcharge as appropriate. We feel confident in our ability to manage potential future cost increases due to tariffs. More broadly, we do not expect tariffs to impact our core support of clinical trials or commercial therapies. Of course, we will continue to assess the situation and keep you updated as more information becomes available. In closing, we made meaningful progress during the first quarter in revenue generation, operational improvements and with the DHL strategic partnership. With this progress to accelerate our growth, we remain focused on supporting the increasing number of commercial regenerative medicine products and the rollout around the world. We are also advancing our key initiatives such as IntegriCell cryopreservation solution, our global supply chain center network and introducing new services and products in order to better serve our clients and open up new revenue streams. We remain confident that the actions we have underway and our momentum will lead us to a return to positive adjusted EBITDA during 2025. This concludes my prepared remarks. So now I will ask the operator to open the lines for your questions. Operator: Thank you. [Operator Instructions] Your first question comes from Kyle Crews with UBS. Please go ahead. Kyle Crews: Thank you for taking the questions here. Could you give us a brief update on the launch of IntegriCell and how the end client adoption is going there? And could you touch upon, CGT trial growth? And specifically, I think I calculated around high single-digits growth there. Could you speak to the health of the market given some of the negative news flow that we're hearing? Thank you. Jerrell Shelton: First of all, I'll speak to the market and then I'm going to turn it to Dr. Sawicki, who can answer your questions about the market and especially IntegriCell and our advancements. But we see the market very positively. We see all those things that I mentioned to you in my opening remarks. We see commercial revenue continuing to ramp with the growth of number of commercial therapies continuing to grow, the growth in the addressable market of our customers therapies and the growth in the number of clinical trials we support. So we're bullish and we are well on our way to building our company to that profitable growth bridge that I've mentioned several times. Mark, would you take the rest of the questions? Mark Sawicki: Sure. Happy to do so. Yes, just to further with Jerry, 2024 was a decent year from a financing standpoint, cell and dream therapy space grew about 30% from a financing standpoint, which is obviously stabilizing the market and providing a significant fund for these for our company's continued progress there, their clinical and commercial portfolio. And commercial therapies are continuing to progress nicely. We were up to 20 approved therapies that we support at this point in time, and there continues to be a robust pipeline overall, which is very exciting. We anticipate as Jerry said in his opening remarks, up to 17 additional filings this year, potentially another four therapy approvals and four label expansion. So that's a very robust year and will be consistent with the record year that we saw last year from an approval standpoint. So it continues to be very nice and robust. Turning to IntegriCell. So IntegriCell is progressing very, very nicely. As we had mentioned previously, both facilities that in Houston, Texas and in East Belgium are open and we also have already have multiple commercial contracts and are currently onboarding multiple programs into those facilities. So it's progressing nicely. Operator: Thank you. The next question comes from Richard Baldry with ROTH Capital. Please go ahead. Richard Baldry: For, contingent consideration, the change that -- is there a reason that isn't backed out as sort of a one time event? Because I think if my math is right without that it'd be moderately positive on adjusted EBITDA. Jerrell Shelton: Sorry, Rich, we were cut off from you. Can you please restate your question? Richard Baldry: When I look at the adjusted EBITDA loss, it's sort of a minor amount, but it's including a drag it looks like from contingent consideration. I'm just curious why that as a one-time event wouldn't have been backed out of that number, because if my math is right, it looks like you'd be positive EBITDA without that drag. Jerrell Shelton: No, we did back it out. It goes the other way. So we had a contingent consideration at year end that we released in Q1 related to one of the acquisitions. So we did back that out. But, having said that, obviously the adjusted EBITDA did improved significantly over Q1 of last year, based on the initiatives that we took in 2024. Richard Baldry: Got it. And post the divestiture, whenever it closes, you'd have a pretty disproportionate now amount of net cash versus your market cap. Can you talk about, what you think the appropriate steps to bolster shareholder value would be, given that very large cash reserve versus pretty modest adjusted EBITDA losses? Jerrell Shelton: Yes. Rich, we will be prudent in the way we allocate that cash, the use of that cash, and so forth. Of course, we're living in some times that are have a fair amount of uncertainty in them, but we'll be prudent, we'll be opportunistic and we'll be careful about the way we allocate that cash. One of the things we will consider is the fact that, our stock is highly, highly undervalued and we certainly have an authorization for stock buyback and so that will be a consideration at the time we look at that the uses of the cash. Operator: Thank you. The next question comes from Puneet Souda with Leerink Partners. Please go ahead. Unidentified Analyst: Hi. You have Michael on for Puneet. Thank you for taking my question. My first one has to do with the service gross margins. I'm getting about like a 500 basis point year-over-year expansion. So I'm curious if, like, what's driving that growth and also if we should expect a similar year-over-year expansion in the balance of the year? Jerrell Shelton: Yes. If you look at the gross margin for the company and services and products, you're absolutely right. We saw a significant increase in the services gross margin for Q1 year-over-year. And we do expect to see more leverage from our core services in the cell and gene therapy space for our services. So over time, you will see an expansion of the gross margin for the services side. We do also have a couple of newer initiatives that will still depress somewhat that growth in gross margins such as IntegriCell that is just starting to ramp. So, we do expect strong gross margins to continue throughout '25 and certainly as you look into 2026, 2027, we expect margin improvements beyond what you're seeing today. Unidentified Analyst: Got it. And then on the clinical trial start, I was wondering, if you could offer any color about how small versus large pharma is performing. We've heard comments from the broader tool space that SMID caps have been kind of pulling back and large pharma has been a bit healthier. I was wondering what your view on the market is? Jerrell Shelton: Mark, why don't you take that? Mark Sawicki: Sure. Yes, we've seen it be very balanced. We're seeing contribution on the ads from both the biotech as well as the large pharma environment. What we're seeing overall is those biotechs that have promising pipelines are seeing additional interest from bit large pharma where they're continuing to resource and put money into and purchase licensing agreements for a lot of these product lines. So it's maintaining robust flow from both. Jerrell Shelton: Maybe to add into that, in Q1, we did have 32 adds and 22 removes, so we reported a net up 10, but it was a strong amount of adds in Q1 for our clinical trials. Operator: Thank you. The next question comes from David Larsen with BTIG. Please go ahead. David Larsen: Hi. Congratulations on a good quarter. 10% year-over-year revenue growth looks pretty good to me. Jerry, you already mentioned some of this on your prepared comments, but can you talk about just the broader macro environment? How are your clients responding to potential 25% tariffs? There was this executive order for drug pricing signed on April 15th. There's the ongoing impact from the Inflation Reduction Act. IQVIA had a year-over-year decline in their services bookings. The CROs are under pressure. Are you seeing, like, what is the response from your clients and demand, the demand side of your business, if any? Thank you. Jerrell Shelton: David, we really don't have any significant tariff impact on cell and gene therapy. So we're moving along pretty well. Mark, you may wish to add to that. Mark Sawicki: Yes. So, the positive thing is the vast majority of those actions that you talked about from a government standpoint are really focused around small molecule and biologic drug product, which has high volume, large revenue streams. That's majority of this cell and gene therapies out there are for very specific indications and they are the only product available to address that, the particular etiology based on the fact that, they've already gone through all the alternatives and many of the alternatives. So the pressure there is I think a lot different. We're not seeing a lot of concern. I'm actually down at ISCT right now, which is the International Society of Cell and Gene Therapy Conference and the mindset here has been pretty positive. So we're not seeing a lot of concern. Jerrell Shelton: David, we're continuing to see the commercial revenues ramp, and we're continuing to -- as we forecasted, continuing to see commercial therapies maturing and coming to market. So we're very optimistic. David Larsen: Okay. So a lot of the source materials come from The United States, so they wouldn't be impacted by tariffs. Is that correct? Jerrell Shelton: Correct. David, most of the product, if you will, the therapies are the cells are taken right from the sick patients. So the patients are in the same countries where it's, I'll call it, manufactured and then sent back to the patient on the Atulya side. David Larsen: Okay. And you also answered this already, but I'm going to ask again, in terms of like your own cost of goods, seems like there's a lot of technology you're working with. You got the doers, you got the technology on the doer, all those electronic components. There's transport costs. And I heard you say that, those tariffs, if they happen, you're going to pass them through to your clients through surcharges. So you're not expecting any increase in costs or margin pressure. Is that correct? Jerrell Shelton: Partially correct, David. But we have an incredibly able sourcing team. And we've already worked on mitigating tariffs, by changing supply chain routing or supply chain sources and so forth. And as I mentioned in the opening comments, those that are passed on to us through components or those that we cannot mitigate, we will put into surcharges, because we don't think this will be permanent. We think that, surcharges we can extract at the time that they're not. So we will protect our margins, and I don't think this is unusual for anyone, but we feel like we have this under control for sure. David Larsen: Okay. One last quick one, please. Product revenue grew year over year, just any color there in terms of ongoing demand. Looks like it's not only bottom, but it's coming back up. Is that... Jerrell Shelton: Yes. I mean, the demand did grow 2% in products year-over-year and the revenue in particular from North America has improved over the past three quarters. We expect that trend to continue as our products are made in America and they won't be subject to tariffs. So while global markets have been disrupted somewhat, The Americas are showing resilience and incremental revenue growth, as they have for the last three quarters and we predict that will continue. Operator: Thank you. The next question comes from Subbu Nambi with Guggenheim Securities. Please go ahead. Subbu Nambi: Thank you for taking my questions. How much does supply chain initiatives actually improve margins? Any chance you could quantify that as well? And will that be a long-term improvement to margins, or is that a more short-term fix? Jerrell Shelton: Yes, I don't think we can quantify necessarily in terms of impact on margin. I think the most important part of the surcharges is to ensure that, our margins are not negatively impacted by these tariffs. So I think the margin improvement is really going to be driven largely by the expansion of our services, leveraging the client base that we have and leveraging the growing number of commercial therapies. Subbu Nambi: Thank you for that. And one follow-up, probably the elephant in the room is the new FDA Director, who seemingly has a more, for lack of better way of saying, stricter stance to newer modality therapy. Anything that you're messaging to your current shareholders? Jerrell Shelton: That's about the new Head of CBER, Subbu, you're asking about? Subbu Nambi: Yes. Jerrell Shelton: The new Head of CBER is an accomplished scientist. He may have some conservative views that have been reported and so forth. But he's a conservative scientist. He's quite accomplished. And as a scientist, we feel that, the data will rule. So there may be more stricture in structure and so forth, as we move forward, but we're very optimistic about his service and about his qualifications. Mark Sawicki: And the Trump administration has also come out implicitly modality. So I do think there's an interest there from the administration to see continued progress there. Subbu Nambi: Just keep your heads down this too shall pass. I mean, you still believe in the modality is the messaging here? Jerrell Shelton: Yes. And at the end of the day, the safety and efficacy of these therapies is being proved out every day. And that's the main theme I think to keep on your mind, Subbu. Operator: Thank you. The next question comes from Tejas Savant with Morgan Stanley. Please go ahead. Unidentified Analyst: Edmund, I'm for Tejas. Thank you for the time. Maybe to start off, can you guys share some color on how the traction has been with your new launches in the product side? How has the demand been for HV3 and the new HE 800? And how much of the demand stabilization can be accredited to these two products? Jerrell Shelton: Mark, would you like to take that question? Mark Sawicki: Sure. On the HV3, the HV3 has been very, very well received in a market standpoint and adoption is ongoing as we speak. It will be rolling into a substantial number of our commercial therapy support mechanisms over the next 12 to 18 months. So that's been extremely positive. What was the other product you're asking about? Jerrell Shelton: That's the HE 800, Mark, but go ahead Robert. Robert Stefanovich: Yes, I just wanted to clarify, the HV3 is related to Cryoport Systems and Cryoport Systems Solution. So that's not related to product revenue, wouldn't be reflected. If you look at the product revenue that's specifically related to the MBE suite of freezers and accessories. And the second product that you mentioned that's just being rolled out, so that's too early to talk about at this stage. Unidentified Analyst: Got it. And then, circling back to one of the earlier questions on IntegriCell. Can you guys provide some color on how the on-boarding process has been? And when can we expect to see some more meaningful revenue contributions from your earlier customers? Jerrell Shelton: Yes. So the on-boarding process has been very smooth. As I had mentioned, we're already under multiple contracts including top 10 pharma supporting, that have asked us to step in and support aspects of their cell and teen therapy portfolio from a standardized cryopreservation standpoint. The process takes a little bit of time because there's a tech transfer process, where it has to be have go through verification, which takes a few quarters. But those are running very, very smoothly and the feedback has been extremely positive. Operator: [Operator Instructions] The next question comes from Matt Stanton with Jefferies. Please go ahead. Matt Stanton: Hi, guys. I wanted to touch quick on the leading indicators. You talked about both orders stabilizing for Life Science Products, but also engagement levels increasing meaningfully for the Life Science Solution side. So any way you can kind of put a finer point or qualify the order improvement you're seeing or the nature of conversations with customers and potential customers? I think you talked about on the solution side strength both deeper penetration at existing clients, but also new clients. So just anything more kind of flavor you can provide around some of those leading indicators you talked a little bit earlier? Thank you. Jerrell Shelton: You want to talk about the... Mark Sawicki: Yes. On the service side, I think there's a few things that you can look at, obviously the traction in the service side of our business. The first is our clinical trial portfolio and the fact that, we're now up to 711, we saw a net increase of 10 programs and a total number of on-boarded programs over 30 is a very robust number and I think that demonstrates that health in our service business. We also continue to see very nice diversification, as evidenced by the increase in our BioStorage and BioServices revenue, which was up 22.5% year-over-year. So both of those are an indication of number one is the on-boarding of new clients, which seems to be re-accelerating based on the clinical trial acquisition as well as you see robust growth in our other services, ancillary services like BioServices, which demonstrates a nice diversification of that revenue stream in our existing client portfolio as well as new. Jerrell Shelton: I think one other thing, Matt, to keep in mind is that, the ecosystem that you're seeing keep building around this industry of the cell and gene therapies and regenerative medicine. You're seeing that with like DHL acquiring our CryoPDP, UPS expanding their healthcare and the other players like Cardinal McKesson and Syncora continuing to learn and to turn to the cell and gene space. And we're really focused with our strategic pivot on enabling all of those big companies with where they're going. Matt Stanton: Great. That's helpful color. And then maybe one for Robert, nice to see the reiteration of the guide given the choppy macro backdrop. I think previously you guys had kind of talked about modest growth on the product side and maybe something like high singles or double-digits growth on the service side. So just given a number of moving pieces and some of the news on the commercial side, any change in your outlook between the sub-segments between products and service for the full year here? And then just to confirm on China, I think you talked about muted trends in China for the year, but just to be clear, you're not assuming any meaningful demand destruction tied to some of the tariff and trade war items out there? Thank you. Robert Stefanovich: Yes. Just to cover the last point first, China is not included or any change in China is not included in our guidance. So that would be on top of that. But, if you look at the guidance and the overall services revenue growth and product revenue growth, it still is the same in terms of the guidance. We certainly see kind of an improved demand coming back on the product side, but still from a guidance perspective, we'd say low-to-mid single growth for the product side. On the services side, you can see strong growth in Q1 really on all aspects. So whether you look at overall revenue growth on services, the commercial revenue growth of 33% and like Mark mentioned the BioStorage, BioServices growth of 22%. So even if you look at commercial revenue, if you look at a trailing twelve month basis, about 26% year-over-year growth. So we certainly expect commercial revenue to grow significantly, and expect 25% to be a record revenue for the support of our commercial clients. Operator: The next question comes from Paul Knight with KeyBanc. Please go ahead. Anna Snopkowski: Hi. This is Anna on for Paul Knight. Thanks for taking my question. I have just one, but maybe touching on the recent news with DHL, I was wondering if you could make any initial comments on the impact of this partnership, and if you've seen any benefit of being carrier-agnostic, maybe in terms of customer conversations or if this just increases your ability to meet the incoming pipeline of larger cell and gene therapies? Thanks. Jerrell Shelton: Yes. The strategic relationship with the DHL is an incredibly strong relationship for us. It will help increase our competitiveness in Asia Pac and EMEA. We will continue with our CryoPDP as a partner and as a part of DHL and that will be CryoPDP on steroids because it will have all of the backing and the resources of DHL at its command. And then, we have all of the other resources available to us at DHL. So, this is a very strong relationship and will over time ramp up to be quite significant for us on a global basis. Robert Stefanovich: And maybe just from a financial perspective, if you look at the strategic relationship and transaction itself, it certainly obviously significantly fortifies and strengthens our balance sheet and financial position. And then, if you look at kind of the margin metrics for us as a company, going forward longer-term it's significantly also an improvement in margins for the continuing operations. Operator: Thank you. There are no further questions at this time. Let me turn the call over to the management for closing remarks. Jerrell Shelton: Thank you, and thank you, everyone, for your questions and for our discussions. In closing, we reported solid first quarter results, led by our Life Science Services business, which grew 17% year-over-year. This included strong increases in commercial cell and gene therapy revenue and BioStorage, BioServices revenue, which increased year over year 33% and 23%, respectively. At the same time, we continued to see further stabilization of order trends in our Life Science Products segment. In line with our focus on growing our role in supporting regenerative medicine with temperature control supply chain solutions, we are excited about our strategic partnership with DHL. This collaboration will advance our strategy and further enable us as the regenerative medicines industry's essential supply chain company. In addition, it will strengthen our financial profile, as Robert just mentioned, while sharpening our focus on our core business. We want to thank you for joining us today. We appreciate your continued support and interest in our company, and we're looking forward to updating you on our progress, when we report on our second quarter financial results. Good evening to all. Operator: Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Cryoport, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cryoport wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,473!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,605!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 4, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cryoport (CYRX) Q1 2025 Earnings Transcript was originally published by The Motley Fool

Revenue growth of 16% was driven by a 26% surge in commercial cell and gene therapy support and an 18% increase in clinical trial revenue, reflecting Cryoport's market-leading position. The Life Sciences Services segment benefited from a 21% increase in biostorage and bioservices, as clients increasingly adopt the full-service portfolio for complex cell therapy programs. Life Sciences Products saw 15% growth due to stabilized global demand for MVE cryogenic systems, particularly in animal health and life sciences across all geographies. The launch of the Fusion 800 series cryogenic freezer represents a strategic move to access previously unreachable markets by eliminating the need for continuous liquid nitrogen supply. Management attributes the $2.2 million improvement in adjusted EBITDA to top-line growth combined with operational discipline and the use of generative AI to automate internal workflows. The IntegraCell platform reached a milestone by shipping its first cryopreserved clinical trial materials, validating the strategic shift toward a fully integrated supply chain model. Full-year 2026 revenue guidance was raised to $192 million to $196 million, reflecting increased visibility despite continued global macroeconomic uncertainty. Management expects to achieve positive adjusted EBITDA in the second half of 2026, supported by organic revenue growth and the completion of key facility investments. The pipeline for 2026 includes 10 expected BLA or MAA filings and up to eight additional new therapy approvals, which are anticipated to drive future commercial revenue. New supply chain centers in Paris and Santa Ana are expected to contribute more significantly to revenue in 2027 following client audits and full operational ramp-up. The Life Sciences Products market is projected to maintain high single-digit growth as global demand for cryogenic storage solutions continues to solidify. Cryo PDP financials are now presented as discontinued operations following the strategic sale to DHL Group in June 2025, shifting focus to core continuing operations. The company is aggressively implementing generative AI tools to manage risk and accelerate decision-making, viewing digitization as a long-term driver of efficiency. Gross margins in the services segment outperformed initial expectations in Q1, though management anticipates some pressure before a more significant rebound in the second half of the year. The transition of cell therapies from teaching hospitals to regional and outpatient settings is identified as a key catalyst for accelerating patient-driven revenue. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterized the $1 million guidance raise as a 'responsible' and 'prudent' approach given ongoing global macroeconomic uncertainty. They intend to re-evaluate and potentially adjust guidance on a quarterly basis as visibility improves. Management noted a definitive increase in investment toward Phase II and Phase III programs, with Phase III trials increasing by five sequentially. The net increase of six trials masks the maturation of the pipeline, as 16 trials were removed specifically because they were successfully completed. Onboarding for IntegraCell typically requires a 12 to 18-month cycle for validation and integration into client processes. Initial clients are utilizing the full integrated platform, including biologics and bioservices, which management believes will drive long-term margin expansion. The new Santa Ana facility consolidates three existing locations into one 94,000 square foot site to improve efficiency and offer a full suite of services. While these facilities are coming online in 2026, the primary impact on operating leverage and profitability is expected to materialize in 2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.