HBIO

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8 a.m. ET Senior Vice President at Ellipsis - Taylor Krafchik President and Chief Executive Officer - John Duke Chief Financial Officer - Mark Frost Operator: Good day and welcome to the Second Quarter 2026 Harvard Bioscience Earnings Conference Call. [Operator Instructions] Please note this call is being recorded. I would like to turn the call over to Taylor Krafchik, Senior Vice President at Ellipsis. Please go ahead. Taylor Krafchik: Thank you, operator, and good morning, everyone. Thank you for joining the Harvard Bioscience Second Quarter 2026 Earnings Conference Call. Leading the call today will be John Duke, President and Chief Executive Officer, and Mark Frost, Chief Financial Officer. In conjunction with today's recorded call, we have provided a presentation that will be referenced during our remarks and is posted to our investor relations section of our website at investors.harvardbioscience.com. Please note that statements made in today's discussion that are not historical facts, including statements on management's expectations of future events or future financial performance, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the current views of Harvard Bioscience Management and Harvard Bioscience assumes no obligation to update or revise any forward-looking statements. Actual results may differ materially from those expressed or implied. Please refer to today's press release, the Harvard Bioscience Form 10-Q, and other filings with the Securities and Exchange Commission for additional disclosures on forward-looking statements and the risks, uncertainties, and contingencies associated therewith. During the call, management will also reference certain non-GAAP financial measures which can be useful in evaluating the company's operations related to our financial condition and results. These non-GAAP measures are intended to supplement GAAP financial information and should not be considered a substitute. Reconciliations of GAAP to non-GAAP measures are provided in today's earnings press release. I will now turn the call over to John. John, please go ahead. John Duke: Thank you, Taylor, and good morning, everyone. Since becoming CEO a year ago, our team has focused on sharpening our strategy, commercial alignment, and operational discipline, from optimizing our sales organization and distribution channels to executing footprint consolidation through Project Viking. That disciplined focus and execution helped us deliver strong second quarter performance, highlighted by double-digit revenue growth across our CMT and preclinical portfolios and solid operational execution that reinforced our confidence in raising our full-year revenue outlook. To give a high-level summary before Mark dives into the detailed financials, revenue came in strong at $22.7 million, representing 11% year-over-year growth. This performance was driven by solid demand, particularly from CRO customers, and healthy sales across our CMT portfolio. Adjusted gross margin was 57% for the quarter, slightly lower than anticipated due to higher-than-expected sales from our CMT products and sales in China, both of which carried lower relative gross margin. Adjusted EBITDA came in at $1.7 million, up 11% year-over-year. We are increasingly seeing our execution across our strategic focus translate into tangible operational progress across our customer mix, product portfolio, and recurring revenue profile. Researchers are adopting our products to generate more predictive, human-relevant data and address key preclinical translational challenges. We remain focused on our highest growth customer opportunities and continue to strengthen our position with pharmaceutical, biotech, and CRO accounts. We also saw an improvement over the first quarter in our academic segment. Looking at our product mix, we are seeing solid commercial traction and saw double-digit growth within our telemetry and CMT businesses, highlighted by growth in our AAA bioprocessing and electroporation products. Customers continue to show strong engagement across both preclinical and CMT platforms. Increasing high-margin recurring revenue remains a key long-term focus. Our recurring revenue strategy is anchored around high-margin single-use consumables, such as telemetry implants and electroporation reagents, complemented by annual software licenses and service contracts. As our instrument installed base expands with platforms like SoHo and BTX, we're generating a steady recurring revenue stream quarter after quarter. We saw our recurring revenue increase to 55% of total revenue in the first half as we continue to work towards our long-term target of 60%. Looking at broader industry demand patterns, preclinical drug candidate pipelines are growing, biopharma spending continues to increase, and CRO activity is expanding. Additionally, our distribution agreement with Fisher Scientific continues to deliver strong commercial returns, generating double-digit growth in Q2 while broadening our customer reach. To build on this momentum, our recently appointed SVP of Commercial, Dave Panzarella, is optimizing our commercial teams to focus on our highest growth opportunities, specifically NPI platforms, AAA bioprocessing, and growing our market share within biopharma and CRO accounts. Our Project Viking manufacturing footprint consolidation remains on track. We successfully transitioned two product lines out of our Holliston facility in Q2 and are prepared to move two more in Q3. As a reminder, we expect Project Viking will deliver $3 million in cost savings in 2027, and $4 million annually thereafter. Our Made in China localization initiative is progressing well and contributing to strong regional performance. Following the launch of our localized BTX line, we are actively shipping units and capturing domestic demand. Looking ahead, we continue to expand our BTX product line and are advancing certifications on additional products in the second half of the year, positioning us for growth in 2027. Turning to our outlook, based on our strong performance in Q2 and expanding commercial momentum within our CMT product portfolio, we are raising our full-year revenue growth guidance to 3% to 5%. To account for the Q2 top-line performance and the near-term mix shift towards our CMT product lines and higher China sales, we are revising our full-year adjusted gross margin range by one percentage point to 57% to 59%. Longer term, we remain confident that our strategic focus on higher-margin NPI platforms and expanding recurring revenue will drive gross margin expansion beyond our 2026 baseline. This trajectory will be further strengthened by structural cost savings from Project Viking beginning in 2027. Lastly, we are reaffirming our full-year adjusted EBITDA growth guidance of 6% to 10%, supported by continued cost discipline, operational improvements, and operating leverage as revenue scales. Over the past year, we strengthened our balance sheet, put a plan in place to simplify our operational footprint, and sharpened our strategic focus. We're seeing these deliberate actions reflected in meaningful top-line growth, a more differentiated product portfolio, stronger market engagement from our key customer segments, and improving operating performance. We believe Harvard Bioscience is becoming a fundamentally stronger, more profitable company. With that, I'll turn the call over to Mark for a deeper review of the financials. Mark? Mark Frost: Thank you, John, and good morning, everyone. I will start my comments with our second quarter of 2026 financial results, the details of which can be found in the description, starting on Slide 4 of the earnings presentation posted to our IR site. Revenue of $22.7 million was up 11% year-over-year, 10% on a constant currency basis, and exceeded our guidance range. The growth was driven by increased demand from CRO customers alongside solid execution through Fisher Scientific and other distributors. Our telemetry business was up double digits within the quarter and solid mid-single-digit growth for the half. We saw strong performance across our AAA bioprocessing and electroporation platforms. NPI revenue continued to deliver per our expectation with an 11% contribution versus 3% of revenue last year. Lastly on revenue, as John mentioned, we're continuing to focus on expanding our recurring revenue opportunities, which consist of our consumables, service and software, which improved its contribution by 1% within the half to 55% of revenue. GAAP gross margin was 55.6% and adding back restructuring for the quarter of 20 basis points brought our gross margin to 55.8% compared to 56.4% in Q2 last year. The decline was caused by a product and geographic mix shift with higher-than-expected CMT sales and strong demand in China, both of which carry relative lower gross margins. Going forward, we continue to focus on driving sales of our higher-margin NPI products, but we're not going to downplay sales opportunities. Additionally, we expect to realize significant margin benefit from the completion of our manufacturing consolidation in early 2027. We have provided adjusted gross margin reconciliation in the release, to show the impact of restructuring, which is in the other line. Our point for our investors is we operate our business assuming the impact of depreciation, amortization, and stock compensation costs. Now, OpEx increased by $1.2 million in the quarter. As we mentioned on the last call, we restored salaries and merit, which is the primary reason for higher OpEx, and it reflects a normalized cost structure. This investment is offsetting our improvements in gross margin, but we will see higher leverage in our returns in the fourth quarter and in 2027. Operating loss was $1 million compared to a loss of $0.8 million in Q2 2025. Adjusted operating income was $1.1 million, 4.9% operating margin, up from $1 million, 5.1% operating margin in quarter 2 last year. Now, adjusted EBITDA came in at $1.7 million, 7.3% return, reaching the high end of our outlook range and growing 11% year-over-year from $1.5 million in the second quarter 2 2025. The EBITDA margin remained flat given the normalized OpEx actions as well as some investment we did in the first half in sales and marketing. Now moving to Slide 5 for results by geography. Geographically, second quarter revenue in the Americas was $11.4 million, up 13% year-over-year, driven by strong telemetry growth at CRO customers. The academic funding environment is beginning to improve, and as we discussed last quarter, we expect to see stronger sales to these customers in the second half. In Europe, quarter 2 revenues were $6.8 million, up 3% year-over-year, 1.5% on a constant currency basis. Declines in academic and government channels were offset by growth across CRO, pharma, and distribution partners. In APAC, quarter 2 revenues were $4.6 million, up 24% year-over-year, primarily driven by strong sales of our BTX electroporation and respiratory lines. Within APAC, China revenues were $3.1 million, up 29% year-over-year, driven primarily by CRO demand. Our Made in China localization initiative also continues to progress nicely, and we expect a strong regional tailwind as we roll out additional localized product lines throughout the rest of the year. I'll now move to Slide 6 to discuss further financial metrics. GAAP diluted EPS in the quarter 2 was negative $0.64 compared to negative $0.52 in the second quarter of 2025. Quarter 2 adjusted EPS was negative $0.14 compared to negative $0.05 in the quarter 2 2025. All per share numbers retroactively reflect the 1-for-10 reverse stock split completed in March. Now, as I mentioned in the past, the difference between GAAP EPS and adjusted EPS are typically the impact of stock compensation, amortization, depreciation, as well now our restructuring charges related to Project Viking. These differences between net loss and adjusted EBITDA are highlighted in the reconciliation tables on Slide 12 and 13 and are all non-cash items except Project Viking costs. Now, cash used in operations for the first 6 months was $0.3 million compared to cash generated of $5.7 million in year-to-date 2025. This change was primarily driven by inventory builds to improve product lead times and support manufacturing pre-build requirements for Project Viking transitions, as well as higher interest costs from our debt deal. Now, we closed the quarter with $6.5 million in cash and cash equivalents. Net debt stood at $33.5 million, up roughly $5.6 million year-over-year. Total debt was $36.7 million, reduced by $3.3 million in unamortized deferred financing costs associated with our December 2025 debt refinancing, which will be amortized over the life of the facility. Non-cash deferred financing amortization was $0.3 million in the quarter 1 and quarter 2, with non-cash exit fee accruals running at $0.2 million per quarter. Now I'll move to Slide 8 to discuss our outlook for the third quarter and full year 2026. Now in the third quarter, we expect revenue between $21 million and $22.6 million at the midpoint of $21.8 million. This represents mid-single-digit year-over-year revenue growth. Adjusted gross margin is expected to be between 56% to 58%, and adjusted EBITDA is expected to be between $1.5 million and $2.5 million. Now, turning to the full year, based on first half top-line strength and ongoing commercial momentum in our NPI, telemetry, and CMT portfolios, we are updating our full year 2026 guidance. We are raising our full-year revenue growth guidance to 3% to 5%, up from 2% to 4%. Now, to account for higher CMT portfolio volume and strong China demand, we are adjusting our full-year adjusted gross margin target by 100 basis points to 57% to 59% from 58% to 60% to reflect product mix dynamics. We are reaffirming our full-year adjusted EBITDA growth guidance of 6% to 10%. Now, to paint a clearer picture of how we believe this will look in the second half, we expect adjusted EBITDA expansion versus the first half, particularly as we enter the fourth quarter. The fourth quarter historically has been our strongest revenue and EBITDA quarter. We expect this acceleration will be driven primarily by revenue growth in the second half generating strong flow-through over a fixed cost base as well as ongoing operational discipline, including modest commercial restructuring actions we executed in July. We're pleased with the progress we've made since this time last year. The improvements we've made to date are the result of structural changes we've made in line with our strategic focus areas, which leaves us confident our results in the first half of this year are setting the stage for sustainable improvement in the business. We want to thank all of our shareholders for their support, and we look forward to updating you on our progress next quarter. With that, I'll turn the call back to Michelle, our operator, to take questions. Michelle? Operator: [Operator Instructions] Our first question comes from Paul Knight with KeyBanc Capital Markets. Paul Knight: Congratulations on the quarter. The electroporation business grew to what level in the quarter, and then also same kind of question on the organoid Mesh MEA product. John Duke: Yes, so thanks, Paul. And first, in terms of the electroporation, it grew strong double digits, and we're seeing the same in our year-to-date strong performance in our organoids or Multi Channel Systems products. Paul Knight: And with the China demand that we're seeing, could you talk a little bit about it specifically? Is it electroporation products? Is it the Mesh MEA, and then how do you control your China sales? Is it distributors or direct? John Duke: In terms of -- first of all, as a reminder, last year in Q2, there were the retaliatory tariffs, so we had a lower baseline. That being said, we had very strong sales into China, and in terms of the product categories that drove that growth, I'll just mention several: organoids or the Multi Channel Systems, BTX for electroporation, as well as telemetry and respiratory inhalation. Those were all strong sales in China. In terms of how it's sold, much of our sales in China are sold through distributors. Mark Frost: Yes, that's our largest contribution to revenues through distributors as a lot of companies in China. Paul Knight: And your Q3 is implying what? Mid-single-digit growth? And what are you implying in 4Q? Mark Frost: Yes, mid-single digits and probably slightly lower in Q4. Obviously, we hope to overachieve. That's why we raised the guidance, Paul. But we obviously had a very strong fourth quarter last year. John Duke: So the midpoint of the range that we provided is $21.8 million in revenue, which would be a 6% revenue growth over last year. Mark Frost: Right, and I think Q4 then would indicate 4% to 6% as well. Operator: Our next question comes from Bruce Jackson with StoneX. Your line is open. Bruce Jackson: I'm sorry if I missed this, but what was the percentage of revenue that was due to the new product innovation products? Mark Frost: Yes. It was similar to the quarter 1, Bruce. It was 11% versus 3% last year. Bruce Jackson: Okay, got it. And then with the release of the NIH funding in the academic market, so that's certainly a relief in terms of the academic sales. Maybe you could comment on the outlook for that market going forward. Have there been any changes in just general budget level or research projects and the types of research projects being done? And how do you feel like you're positioned to go after that market in the future? John Duke: Thanks for the question, Bruce. The academic market in the U.S. is gradually improving. And what we have done and continue to do is look at those pockets where funds have been released to actively and aggressively go after that. And we put our salespeople as well as, as you can imagine, our distributors as well, are into those accounts, and we believe we're well positioned for year-over-year growth there in the second half. Bruce Jackson: Okay. Then last question for me. With Project Viking, have you found a sub-tenant for the Holliston lease yet? Mark Frost: We have, as I think we mentioned last quarter, engaged a broker. We are marketing it now. We've had a few folks on site, but we have not got to a point yet where we have a new lease. I'll be honest, Bruce, we probably don't expect anything to the fourth quarter or first quarter as far as getting something done because we won't really move out of the space until the first quarter of next year. Operator: This concludes our question and answer session. Thank you for your participation. You may now disconnect. Everyone, have a great day. Before you buy stock in Harvard Bioscience, 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 Harvard Bioscience wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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. Harvard Bioscience (HBIO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

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. Delivered 11% revenue growth driven by robust demand from CRO customers and double-digit expansion in telemetry and CMT portfolios. Attributed strong performance in China to the 'Made in China' localization initiative, specifically the launch of the localized BTX electroporation line. Reported a slight gross margin compression due to a mix shift toward CMT products and China-based sales, which carry lower relative margins than the core portfolio. Expanded recurring revenue to 55% of total sales, leveraging a growing installed base of SoHo and BTX platforms to drive high-margin consumable and software sales. Optimized commercial alignment under new leadership to focus on high-growth New Product Innovation (NPI) platforms and bioprocessing opportunities. Maintained operational discipline through Project Viking, successfully transitioning two product lines out of the Holliston facility to streamline the manufacturing footprint. Raised full-year revenue growth guidance to 3% to 5% based on first-half momentum and expanding commercial traction in the CMT portfolio. Revised full-year adjusted gross margin guidance down by 100 basis points to 57% to 59% to account for the ongoing mix shift toward lower-margin geographic and product segments. Reaffirmed adjusted EBITDA growth of 6% to 10%, assuming strong Q4 flow-through over a fixed cost base and benefits from July commercial restructuring. Projected $3 million in cost savings from Project Viking in 2027, scaling to $4 million annually thereafter as manufacturing consolidation completes. Anticipates a stronger second half in the U.S. academic segment as NIH funding release patterns gradually improve. Completed a 1-for-10 reverse stock split in March, which is retroactively reflected in all per-share financial reporting. Inventory levels increased to support manufacturing pre-build requirements for Project Viking transitions and to improve product lead times. Operating expenses increased by $1.2 million year-over-year due to the restoration of salaries and merit increases to normalize the cost structure. Actively marketing the Holliston facility for sub-lease, though management does not expect a signed agreement until Q4 2026 or Q1 2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed strong double-digit growth for electroporation and year-to-date strength in Multi Channel Systems (organoids). China demand was specifically driven by BTX electroporation, organoids, telemetry, and respiratory inhalation products. Growth in China was aided by a lower baseline due to previous retaliatory tariffs and strong current demand from CROs. The company primarily utilizes distributors to reach the Chinese market, which remains their largest revenue contributor in the region. The U.S. academic market is showing gradual improvement as funds are released. Management is aggressively targeting specific pockets of funding through both direct sales teams and distribution partners to drive second-half growth.

Second Quarter 2026 Revenue Growth of 11% Year Over Year to $22.7 Million Raises Full Year 2026 Revenue Guidance to 3%-5% Year Over Year Growth HOLLISTON, Mass., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc. (Nasdaq: HBIO) (the “Company” or “Harvard Bioscience”) today announced financial results for the second quarter ended June 30, 2026. "We delivered a strong quarter anchored by 11% top-line growth, reflective of stronger demand and an improved environment across our key customer channels,” said John Duke, President and Chief Executive Officer. “We are seeing solid commercial traction across our telemetry and cellular and molecular technology (CMT) products, driven by our AAA and electroporation businesses, and strong engagement from researchers utilizing our preclinical platform. Outperformance in our CMT products and China drove a slight mix impact on adjusted gross margin. This strong sales momentum positions us to raise our full-year revenue outlook while maintaining our adjusted EBITDA target, supported by ongoing cost discipline and operational progress.” Second Quarter 2026 Results For the second quarter of 2026, the Company reported revenues of $22.7 million compared to $20.5 million in the second quarter of 2025. Revenue for the second quarter of 2026 included a favorable impact from foreign currency exchange rates of approximately 1%, using a constant currency basis. Gross profit for the second quarter of 2026 was $12.6 million compared to $11.5 million in the second quarter of 2025. Gross margin for the second quarter of 2026 was 55.6%, compared to 56.4% in the second quarter of 2025. Adjusted gross profit and adjusted gross margin for the second quarter of 2026 was $12.9 million and 56.7%, respectively, compared with $11.7 million and 57.2% in the same period of the prior year. Net loss for the second quarter of 2026 was ($2.9) million, compared to a net loss of ($2.3) million in the second quarter of 2025. Adjusted EBITDA for the second quarter of 2026 was $1.7 million compared to $1.5 million in the second quarter of the prior year. Six Months Ended June 30, 2026 Results For the six months ended June 30, 2026, the Company reported revenues of $43.5 million, compared to $42.2 million in the same period of the prior year. Revenue for the six months ended June 30, 2026, included a favorable impact from foreign currency exchange rates of approximately 2%, using a constant currency basis. Gross profit was $24.9 million for the first six months of 2026 compared to $23.7 million in the same period of the prior year. Gross margin for the six months ended June 30, 2026, was 57.2% compared with 56.2% in the same period of the prior year. Adjusted gross profit and adjusted gross margin for the six months ended June 30, 2026, was $25.3 million and 58.3%, respectively, compared with $24.1 million and 57.0% in the same period of the prior year. Net loss for the six months ended June 30, 2026, was ($6.3) million compared to a net loss of ($52.6) million in the same period of the prior year, primarily due to goodwill impairment in the first quarter of 2025 of $48.0 million. Adjusted EBITDA for the six months ended June 30, 2026, was $2.4 million, compared to adjusted EBITDA of $2.3 million for the same period of the prior year. Cash (used in) provided by operations was ($0.3) million during the six months ended June 30, 2026 compared to $5.7 million in the same period of the prior year. This press release includes certain financial information presented on an adjusted, or non-GAAP, basis. For additional information on the non-GAAP financial measures included in this press release, see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below. Third Quarter 2026 Guidance The Company’s third quarter outlook reflects expected mid-single-digit year-over-year revenue growth at the midpoint of guidance, driven by expected ongoing demand across CMT and new product innovation (NPI) platforms and improving year-over-year profitability on an adjusted EBITDA basis. The Company expects: Revenue between $21.0 million and $22.6 million Adjusted gross margin between 56% and 58% Adjusted EBITDA between $1.5 million and $2.5 million Full Year 2026 Guidance The Company is raising its full-year 2026 revenue guidance to reflect expected strong CMT portfolio momentum and continued adoption of its NPI pipeline, while updating its full-year adjusted gross margin target to account for expected higher-volume of lower-margin CMT product and geographic mix. The Company now expects: Revenue growth between 3% and 5% Adjusted gross margin between 57% and 59% Adjusted EBITDA growth between 6% and 10% Webcast and Conference Call Details In conjunction with this announcement, Harvard Bioscience will be hosting a conference call and webcast today at 8:00 a.m. Eastern Time. A presentation that will be referenced during the webcast will be posted to the Company’s Investor Relations website shortly before the webcast begins. Analysts who would like to join the call and ask a question must register here. Once registered, you will receive the dial-in numbers and a unique PIN number. Participants who would like to join the audio-only webcast should go to our events and presentations on the investor website here. Use of Non-GAAP Financial Information In this press release we have included non-GAAP financial information, including one or more of adjusted operating income (loss), adjusted operating margin, adjusted gross margin, adjusted net income (loss), adjusted EBITDA, adjusted EBITDA margin, diluted adjusted earnings (loss) per share, net debt, adjusted gross profit, and non-GAAP revenue on a constant currency basis. We believe that this non-GAAP financial information provides investors with an enhanced understanding of the underlying operations of our business. For the periods presented, these non-GAAP financial measures have excluded certain expenses and income resulting from items that we do not believe are reflective of the underlying operations of the business. Items excluded include stock-based compensation, amortization of intangibles related to acquisitions, restructuring charges, other operating expenses, goodwill impairment, interest and other expense, net, income taxes, and the tax impact of reconciling items. Management believes that this non-GAAP financial information is important in comparing current results with prior period results and is useful to investors and financial analysts in assessing the Company’s operating performance. Historical non-GAAP financial information included herein is accompanied by a reconciliation to the nearest corresponding GAAP measure, which is included below. In addition, the forward-looking Adjusted gross margin and Adjusted EBITDA guidance for the third quarter of 2026 and full-year 2026 excludes potential charges or gains that may be recorded during the fiscal year, including among other things, restructuring and reorganization expenses, and non-GAAP restructuring related expenses. The Company has not attempted to provide reconciliations of such forward-looking non-GAAP earnings guidance to the comparable GAAP measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be misleading to investors. Such items could have a substantial impact on GAAP measures of the Company’s financial performance. The non-GAAP financial information provided in this press release should be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP and may be different from other companies’ non-GAAP financial information. About Harvard Bioscience Harvard Bioscience, Inc. is a leading developer, manufacturer and seller of technologies, products and services that enable fundamental advances in life science applications, including research, drug and therapy discovery, bio-production and preclinical testing for pharmaceutical and therapy development. Our customers range from renowned academic institutions and government laboratories to the world’s leading pharmaceutical, biotechnology and contract research organizations. With operations in the United States, Europe, and China, we sell through a combination of direct and distribution channels to customers around the world. For more information, please visit our website at www.harvardbioscience.com. Forward-Looking Statements This document contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend,” “believe” and similar expressions or statements that do not relate to historical matters. Forward-looking statements include, but are not limited to, information concerning expected future financial and operational performance including revenues, adjusted gross margin, adjusted EBITDA, gross margin, cash and debt position, balance sheet, growth, adoption and the introduction of new products, the strength of the Company’s market position, business model and anticipated macroeconomic conditions. Forward-looking statements do not guarantee future performance and involve known and unknown uncertainties, risks, assumptions, and contingencies, many of which are outside the Company’s control. Risks and other factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include those described in the “Risk Factors” section of the Company’s most recently filed Annual Report on Form 10-K, as well as in the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements are based on the Company’s expectations and assumptions as of the date of this document. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect any change in expectations, even as new information becomes available. Investor Inquiries:Mark FrostChief Financial Officer(508) [email protected]

This article first appeared on GuruFocus. Revenue: $22.7 million, up 11% year-over-year (10% on a constant currency basis). Adjusted Gross Margin: 57% for the quarter, slightly lower than anticipated due to higher CMT product sales and strong demand in China. Adjusted EBITDA: $1.7 million, up 11% year-over-year, with a 7.3% margin. GAAP Gross Margin: 55.6%, or 55.8% after adding back restructuring charges, compared to 56.4% in Q2 2025. Operating Loss: $1 million, compared to a loss of $0.8 million in Q2 2025. Adjusted Operating Income: $1.1 million, representing a 4.9% operating margin. GAAP Diluted EPS: Negative $0.64, compared to negative $0.52 in Q2 2025. Adjusted EPS: Negative $0.14, compared to negative $0.05 in Q2 2025. Cash Used in Operations (First Half): $0.3 million, compared to cash generated of $5.7 million in the year-ago period. Cash and Cash Equivalents: $6.5 million at quarter end. Net Debt: $33.5 million, up roughly $5.6 million year-over-year. Total Debt: $36.7 million, reduced by $3.3 million in unamortized deferred financing costs. Recurring Revenue: Increased to 55% of total revenue in the first half. NPI Revenue Contribution: 11% of revenue, versus 3% in the prior year. Americas Revenue: $11.4 million, up 13% year-over-year. Europe Revenue: $6.8 million, up 3% year-over-year (1.5% on a constant currency basis). APAC Revenue: $4.6 million, up 24% year-over-year. China Revenue: $3.1 million, up 29% year-over-year. Full-Year Revenue Growth Guidance: Raised to 3% to 5%, up from 2% to 4%. Full-Year Adjusted Gross Margin Guidance: Revised to 57% to 59%, down from 58% to 60%. Full-Year Adjusted EBITDA Growth Guidance: Reaffirmed at 6% to 10%. Q3 Revenue Guidance: Between $21 million and $22.6 million, with a midpoint of $21.8 million. Q3 Adjusted Gross Margin Guidance: Between 56% and 58%. Q3 Adjusted EBITDA Guidance: Between $1.5 million and $2.5 million. Warning! GuruFocus has detected 7 Warning Signs with HBIO. Is HBIO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Harvard Bioscience Inc (NASDAQ:HBIO) delivered strong Q2 2026 revenue of $22.7 million, up 11% year-over-year, exceeding guidance. The company raised its full-year 2026 revenue growth guidance to 3%-5% from 2%-4%, reflecting strong commercial momentum. Recurring revenue increased to 55% of total revenue in the first half, progressing toward the long-term target of 60%. Project Viking manufacturing consolidation is on track, with two product lines transitioned in Q2 and two more planned for Q3, expected to deliver $3 million in cost savings in 2027. The Made in China localization initiative is progressing well, with strong regional performance and plans to expand localized product lines in the second half. Adjusted EBITDA grew 11% year-over-year to $1.7 million in Q2, reaching the high end of the outlook range. The distribution agreement with Fisher Scientific generated double-digit growth in Q2, broadening customer reach. NPI revenue contribution increased to 11% of revenue, up from 3% in the prior year, indicating successful new product adoption. Adjusted gross margin declined to 57% in Q2, lower than anticipated due to a product mix shift toward lower-margin CMT products and higher China sales. The company revised its full-year 2026 adjusted gross margin guidance down by 100 basis points to 57%-59% from 58%-60%. Operating loss widened to $1.0 million in Q2, compared to a loss of $0.8 million in Q2 2025. Adjusted EPS was negative $0.14 in Q2, worse than the negative $0.05 in Q2 2025. Cash used in operations for the first six months was $0.3 million, compared to cash generated of $5.7 million in the prior year, due to inventory builds and higher interest costs. Net debt increased to $33.5 million, up roughly $5.6 million year-over-year. OpEx increased by $1.2 million in Q2 due to restored salaries and merit, offsetting gross margin improvements. The company has not yet secured a subtenant for the Holliston facility, with expectations for a lease not until Q4 2026 or Q1 2027. Q: What was the growth rate for the electroporation business and the organoid/MEA product line in the second quarter?A: John Duke (CEO): The electroporation business grew at a strong double-digit rate, and we are seeing the same strong year-to-date performance in our organoids or multichannel systems products. Q: Can you provide more specifics on the strong China demand? Which product categories drove the growth, and how are sales conducted in that region?A: John Duke (CEO) & Mark Frost (CFO): While Q2 2025 had a lower baseline due to retaliatory tariffs, we saw very strong sales in China this quarter. The growth was driven by organoids/multi-channel systems, BTX electroporation, telemetry, and respiratory/inhalation products. The majority of our sales in China are conducted through distributors, which is our largest contribution to revenue in that market. Q: What is the implied revenue growth for Q3 and Q4 2026 based on your guidance?A: Mark Frost (CFO) & John Duke (CEO): For Q3, the midpoint of our guidance is $21.8 million, which represents mid-single-digit year-over-year growth. We expect Q4 growth to be slightly lower, in the 4% to 6% range, as we had a very strong Q4 last year. Q: What percentage of total revenue came from new product innovation (NPI) products in the second quarter?A: Mark Frost (CFO): The NPI revenue contribution was 11% of total revenue in Q2, which is consistent with Q1 and a significant increase from the 3% contribution in the same period last year. Q: With the release of NIH funding, what is the outlook for the academic market, and how is the company positioned to capitalize on it?A: John Duke (CEO): The academic market in the U.S. is gradually improving. We are actively targeting accounts where funds have been released, deploying our salespeople and distributors to pursue these opportunities. We believe we are well-positioned for year-over-year growth in this segment in the second half of the year. Q: Has the company found a subtenant for the Holliston facility lease as part of Project Viking?A: Mark Frost (CFO): We have engaged a broker and are actively marketing the space, with a few interested parties having visited the site. However, we have not yet signed a new lease. We do not expect to finalize anything until the fourth quarter of 2026 or the first quarter of 2027, as we won't fully vacate the space until Q1 of next year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. May 12, 2026 President and Chief Executive Officer — John Duke Chief Financial Officer — Mark Frost Senior Vice President, Ellipsis TA — Taylor Krafchik Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and welcome to the Q1 2026 Harvard Biosciences, Inc. Earnings Conference Call. [Operator Instructions] Please note, this call is being recorded. I would now like to turn the call over to Taylor Krafchik, Senior Vice President at Ellipsis TA. Please go ahead. Taylor Krafchik: Thank you, operator, and good morning, everyone. Thank you for joining the Harvard Bioscience First Quarter 2026 Earnings Conference Call. Leading the call today will be John Duke, President and Chief Executive Officer; and Mark Frost, Chief Financial Officer. In conjunction with today's recorded call, we have provided a presentation that will be referenced during our remarks that is posted to the Investor Relations section of our website at investor.harvardbioscience.com. Please note that statements made in today's discussion that are not historical facts, including statements on management's expectations of future events or future financial performance and forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the current views of Harvard Biosciences management, and Harvard Bioscience assumes no obligation to update or revise any forward-looking statements. Actual results may differ materially from those expressed or implied. Please refer to today's press release, the Harvard Bioscience Form 10-Q and other filings with the Securities and Exchange Commission for additional disclosures on forward-looking statements and the risks, uncertainties and contingencies associated there within. During the call, management will also reference certain non-GAAP financial measures, which can be useful in evaluating the company's operations related to our financial condition and results. These non-GAAP measures are intended to supplement GAAP financial information and should not be considered as a substitute. Reconciliations of GAAP to non-GAAP measures are provided in today's earnings press release. I will now turn the call over to John. John, please go ahead. John Duke: Thanks, Taylor. Good morning, everyone, and thank you for joining us. Overall, Q1 reflected continued progress on transforming Harvard Bioscience from a traditional tool provider into a leading supplier of the emerging translational science market. To summarize our Q1 financial performance, revenue was $20.8 million, in line with their expectations. Adjusted gross margin was 59%, growing nearly 300 basis points year-over-year, and adjusted EBITDA came in at $0.8 million, which was flat with Q1 last year. Our Q1 results were driven by growth in sales of our new product innovation pipeline, including Mesh MEA for organoids, BTX Electroporation and SoHo Telemetry products. We expect this suite of products will deliver double-digit revenue growth for the full year. These products are the centerpieces of our evolution into a leading supplier of translational products. As anticipated, growth in consumables and software products and our NPI portfolio is translating into higher margins. This puts us on a path toward consistent gross margins greater than 60% and recurring revenue approaching 60%. Our NPI products are also increasing opportunities with pharma and large biotech customers. Sales to these customers grew more than 20% in the quarter versus prior year. A key driver of sales to biopharma is an accelerating adoption of the new approach methodologies. As biopharma customers seek more predictive human-relevant outcomes, demand is shifting towards technologies that can deliver deeper, more actionable insights and help form a stronger translational science bridge to traditional animal models. Our NPI portfolio is directly aligned with this shift. Mesh MEA enables high resolution, long-term electrical recording of organoids and 3D tissue models, allowing researchers to study complex human biology in vitro with the level of fidelity not previously possible. BTX provides electroporation-enabled cell engineering and transfection solutions, supporting everything from gene editing to advanced cell-based development. critical tools for building and manipulating next-gen biological models. SoHo Telemetry delivers continuous real-time physiological monitoring and preclinical settings, generating rich data sets that help bridge in vivo insights with emerging in vitro approaches, improving the translational relevance of preclinical research. The industry's growing need for more predictive models reinforces our confidence in the strategy and long-term growth trajectory of the company. We are pleased with the early results of the enhanced distribution agreement we signed in August of last year with Fisher North America. Sales through Fisher North America grew by high single digits in Q1. We strengthened our leadership team by adding Dave Panzarella as our new SVP of Commercial. With 30 years of industry experience as a global growth-oriented sales leader across multiple life science tools companies, we believe he will be instrumental in driving overall revenue expansion and sales of our translational science platforms. We're excited to have him on board. We've done much work in the past year to strengthen our leadership team and Board, and we're pleased with the deep expertise we've added as we work to scale the business. In China, Q1 revenue grew 3%, driven by increased CRO revenue. Incentives exist for Chinese companies to source domestically. As a result, we launched our Made in China initiative, beginning with our BTX Electroporation products. We plan to expand this initiative to other products in 2026. Project Viking, our manufacturing consolidation initiative remains on track. As a reminder, this initiative includes the phased closure of our Holliston, Massachusetts facility into our sites in Minneapolis and Europe. In Q1, we moved one product line and are on track to move several product lines in Q2. We remain confident Project Viking will generate $3 million in savings in 2027 and $4 million annually thereafter. Looking ahead, Mark will provide additional details on our guidance. At a high level, in the second quarter, at the midpoint of our guidance, we anticipate mid-single-digit year-over-year revenue growth, continued margin expansion and flat adjusted EBITDA on a year-over-year basis. We are reaffirming our full year 2026 guidance. For the full year, we expect continued growth of NPI with our Mesh MEA, BTX and SoHo platforms. We expect continued growth with pharma and biotech customers and growth in China. We remain committed to improving our operational efficiency and driving profitability. In summary, we're excited about path ahead and remain laser-focused on executing our translational science strategy to create long-term shareholder value. I will now turn the call over to Mark, who will go through the financials and our guidance in more detail. Mark? Mark Frost: Thank you, John. I will start my comments with our first quarter 2026 financial results, the details of which will be found starting on Slide 4 of the earnings presentation posted to our IR site. We had strong growth from pharma and biotech customers, as John mentioned, reflecting momentum from new products. Revenue was $20.8 million, in line with our $20 million to $22 million guidance and below the $21.8 million we reported in the first quarter of 2025. The year-over-year decline was primarily due to lower sales from academic institutions in the Americas and distributors in APAC, although our Chinese business rebounded to growth in the first quarter. With regard to academics, we expect university level approvals to increase in quarter 2 with the passage of the NIH budget on February 3, setting the stage for improved Q2 and Q3 results in the U.S. academic sector. These are use it or lose it funds and must be committed by the September 30 fiscal year-end, and we are seeing increased proposal activity. Gross margin of 59% was at the high end of our 57% to 59% guidance range and up 300 basis points from 56% in the first quarter of 2025. The improvement is attributable to cost actions related to employee costs and operational efficiencies that were implemented at the end of 2024 and in 2025 as well -- as well as higher-margin NPI revenue, which grew to more than 12% of total revenue in the quarter from approximately 4% in the prior year quarter. Operating loss was $1.2 million compared to a loss of $49.7 million last year, which included $48 million from goodwill impairment. Adjusted operating income of $0.2 million was slightly down from $0.3 million last year. Adjusted EBITDA of $0.8 million was flat year-over-year and came in slightly below our expectations due to higher investment in sales and marketing activities, which we believe will pay dividends in later quarters. A significant portion of the cost came in at the end of the quarter. Now moving to Slide 5, results by -- for revenue results by geography. Geographically, quarter 1 revenues in the Americas were down 9% year-over-year due to lower academic and government sales. In Europe, quarter 1 revenues were up 7% year-over-year, thanks to increased sales from our distribution partners and pharma customers. And in APAC, quarter 1 revenues were down 9% year-over-year due to lower distributor sales in a number of our Asian markets. That said, as John noted, we saw 3% year-over-year growth in China, driven primarily by CRO sales. We also piloted our Made in China initiative, which we anticipate will be a tailwind in this region as we implement additional products throughout the year. Now I will now move to Slide 6 to discuss further financial metrics. GAAP diluted EPS in quarter 1 was negative $0.77 compared to a loss $11.42 last year. And quarter 1 adjusted EPS was negative $0.33 compared to negative $1.25 last year. The year-over-year comparisons have been retroactively presented to reflect the 1 for 10 reverse split that took effect in March. Last year's figures reflect the $48 million goodwill impairment we recorded in the quarter. Now as I've mentioned in the past, the differences between GAAP EPS and adjusted EPS are typically the impact of stock compensation, amortization and depreciation as well as now our restructuring charges related to Project Viking. These differences between net loss and adjusted EBITDA are highlighted in the reconciliation tables on Slide 10 and 11 and are all noncash items except Project Viking costs. Now cash used in operations was $0.7 million in the quarter compared to cash generation from operations of $3 million in quarter 1 last year due primarily to higher inventory. The increase in inventory stems from inventories built to support improving lead times for certain products and prebuild for Project Viking. There are also onetime administrative costs related to our reverse split and S3 filing to meet regulatory compliance around these corporate actions, which reduced operating cash. The cash balance itself decreased in the quarter by $1.5 million reflecting payment of strategic debt costs from 2025. Now net debt is up roughly $1.9 million from prior year due to the recording of deferred finance costs related to December 2025 debt deal including fees, debt legal expense, warrant fair value costs and debt discount with a debt balance reduced by principal payments made last year. The deferred financing costs will be amortized over the life of the credit facility. The amortization will be reflected in our interest expense each quarter through the end of the debt facility. In quarter 1, the amortization interest expense was $300,000 in noncash. In addition, we are recording exit fees each quarter of approximately $200,000 which will start being paid 2 years from the initiation of our credit facility. These are noncash for the first 2 years. I'll now move to Slide 8 to discuss our outlook for the second quarter and full year 2026. In the second quarter, we expect revenue between $20.5 million and $22.5 million, adjusted gross margin between 57% and 59% and adjusted EBITDA between $1 million and $2 million. Midpoint of these ranges implies revenue growth of 5% margin expansion of 160 basis points and flat EBITDA. Now as a reminder, with the expected growth in the business in 2026, we have reinstated bonuses and merit-based compensation for our employees, which was suspended in 2025 due to macro headwind impacts. In addition, as the business has stabilized, we have increased sales activities to help drive the business, including trade shows and T&E to get in front of customers and build relationships. These will have an impact on our operating expenses and are built into our year-over-year adjusted EBITDA guidance. We're maintaining our full year 2026 guidance of revenue growth of 2% to 4%, gross margin of 58% to 60% and adjusted EBITDA growth of 6% to 10%. Our performance in the quarter as well as our line of sight to accelerated sales growth in the second half of the year, driven by high-margin NPI revenue growth driving bottom line improvement gives us confidence in our outlook for the full year. We look forward to updating you on our progress next quarter. Now before I turn it over, I want to mention that John and I will be attending and presenting at both the Sidoti Microcap Conference next week and Benchmark's Virtual Healthcare Conference the following week. With that, I'll turn the call back to our operator to take questions. Michelle? Operator: [Operator Instructions] Our first question comes from Paul Knight with KeyBanc. Paul Knight: John, I think you had mentioned that Mesh MEA, SoHo and BTX, you said those three product lines would grow double digits in the year. John Duke: Yes. That's right, Paul. Paul Knight: Yes, how are you -- and what portion of the company is -- are those three businesses, 1/4, 1/3, 20% or a range? Mark Frost: Yes, Paul, this is Mark. It's about 15% to 20% of our revenue right now. Paul Knight: Okay. And how -- when I look at your comments around academia, you got -- they have to spend it by the end of this federal fiscal year. Are you seeing activity on bidding going up? What are your clues as you look here or sit here in 2Q? John Duke: Yes. So we're definitely seeing what I would call an unthawing where -- basically funds, as you know, the reconciliation bill got approved February 3. And until then, many academics were unsure if they were going to be able to spend their money. So now that the budgets were locked in, we have seen orders come through. And as you know, our sales cycle is such that if we get many of the orders, would say, which come in March, those would translate into revenue in Q2. So we have a significant sales presence in North America, and that's fairly consistent across the country. Paul Knight: Are you seeing CROs starting to spend due to the financing we're seeing from biotech? John Duke: Yes. So our sales to our contract research organizations increased. And Mark mentioned both in China, but we're also seeing that in the Americas and Europe. Operator: Our next question comes from Bruce Jackson with StoneX. Bruce Jackson: So the Asian numbers were pretty encouraging. It's been kind of a tough spot for you over the past few years. What is the outlook for this particular region this year. Can it actually start to move back up or is flat the new up for you? How does that look? Mark Frost: Yes, Bruce, based on the Made in China initiative as well as we're getting some progress as well on some of our NPI products, we do expect to be able to get it flat to growth in Asia for the year. Bruce Jackson: And then in terms of the types of projects that are being initiated or that they're purchasing for, would you say that -- are these like new development projects? Or are these restarted development projects? What are the characteristics of the business that they're purchasing for? John Duke: So for APAC, it's both. It's restarting of business, but also we have some clients who have opened new facilities, expanded and as a result, need more of our products. Bruce Jackson: Okay. Great. And then same question for the United States with the CRO business. Are these new projects that are coming in? Are these the continuation of maybe previous projects that were slowed down a bit? John Duke: It is mostly what I call a restarting of projects which had slowed. And from all indications that we have that their spending in North America and Europe will be up versus prior year. Bruce Jackson: Okay. Great. And then last question for me. The expense control and the gross margins looked quite good. So if we were to get a lift in revenue, would those continue to be sustainable? Mark Frost: Yes, Bruce, because of our new products and they're all at higher margins as well as there's a larger portion of recurring revenue, disposable service and software. we believe this is a cornerstone of how we're going to be able to push gross margins into the 60% plus range as we move forward over the next couple of years, Bruce. Operator: Thank you. That's all the questions we have for today. Please proceed with any closing comments. John Duke: Thank you for joining today. Operator: Thank you. This does conclude the program, and you may now disconnect. Everyone, have a great day. 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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. Transitioning from a traditional tool provider to a leading supplier for the emerging translational science market, focusing on predictive human-relevant outcomes. New Product Innovation (NPI) portfolio, including Mesh MEA, BTX Electroporation, and SoHo Telemetry, grew to over 12% of total revenue compared to approximately 4% in the prior year. Sales to pharma and large biotech customers increased by more than 20% year-over-year, driven by the adoption of new approach methodologies and demand for deeper biological insights. Adjusted gross margin expanded by nearly 300 basis points to 59%, attributed to a shift toward higher-margin NPI revenue and operational cost actions implemented in late 2024. The 'Made in China' initiative was launched to address domestic sourcing incentives, starting with BTX products to mitigate regional headwinds and capture local market share. Project Viking manufacturing consolidation remains on track to move several product lines in Q2, targeting $3 million in savings for 2027 and $4 million annually thereafter. Full-year 2026 guidance reaffirmed with revenue growth of 2% to 4% and adjusted EBITDA growth of 6% to 10%, supported by a high-margin NPI pipeline. Anticipate double-digit revenue growth for the full year from the core NPI suite (Mesh MEA, BTX, and SoHo) as they become centerpieces of the translational strategy. U.S. academic sector results are expected to improve in Q2 and Q3 following the February NIH budget passage, as institutions must commit 'use it or lose it' funds by September 30. Management targets consistent gross margins greater than 60% and recurring revenue approaching 60% as the product mix shifts toward consumables and software. Q2 guidance assumes mid-single-digit year-over-year revenue growth and flat adjusted EBITDA due to the reinstatement of employee bonuses and increased sales activity investments. Inventory levels increased to $0.7 million in cash use to support improved lead times and prebuild requirements for the Project Viking facility transitions. Recorded $0.3 million in non-cash amortization interest expense and $0.2 million in non-cash exit fees related to the December 2025 debt facility. Incurred one-time administrative costs related to a 1-for-10 reverse stock split and S3 filing to maintain regulatory compliance. Operating expenses are expected to rise due to the resumption of merit-based compensation and increased travel and trade show participation to drive customer relationships. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The Mesh MEA, SoHo, and BTX product lines currently represent approximately 15% to 20% of total company revenue. Management expects these specific lines to deliver double-digit growth throughout the fiscal year. Management noted an 'unthawing' of academic budgets following the February 3 reconciliation bill, with increased proposal activity and orders already appearing in March. Orders received in late Q1 are expected to translate into recognized revenue during the second quarter. Sales to Contract Research Organizations (CROs) increased across China, the Americas, and Europe. Growth is being driven by both the restarting of projects that had previously slowed and the expansion of new facilities by clients. Management expressed confidence that gross margins will reach the 60% plus range over the next couple of years. The expansion is structurally supported by the higher margin profile of new products and an increasing proportion of recurring revenue from disposables, service, and software.

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Harvard Bioscience Inc (NASDAQ:HBIO) reported Q1 revenue of $20.8 million, aligning with their expectations. Adjusted gross margin improved to 59%, a growth of nearly 300 basis points year-over-year. Sales of new product innovations like MESH MEA, BTX, and SOHO telemetry products drove growth, with expectations of double-digit revenue growth for the full year. Sales to pharma and large biotech customers grew more than 20% in the quarter compared to the previous year. The company is on track with Project Viking, a manufacturing consolidation initiative, expected to generate significant savings in the coming years. Revenue was slightly below the $21.8 million reported in Q1 2025, primarily due to lower sales from academic institutions in the Americas and distributors in APAC. Operating loss was $1.2 million, although significantly improved from a loss of $49.7 million last year due to goodwill impairment. Adjusted EBITDA was flat year-over-year and slightly below expectations due to higher investment in sales and marketing activities. Cash used in operations was $0.7 million, compared to cash generation of $3 million in the same quarter last year, due to higher inventory levels. Net debt increased by approximately $1.9 million from the prior year due to deferred finance costs related to a debt deal. Warning! GuruFocus has detected 9 Warning Signs with HBIO. Is HBIO fairly valued? Test your thesis with our free DCF calculator. Q: What portion of Harvard Bioscience's revenue is generated by the Mesh MEA, SOHO, and BTX product lines, and what is their expected growth? A: Mark Frost, CFO, stated that these product lines currently account for about 15% to 20% of the company's revenue and are expected to grow at double-digit rates throughout the year. Q: Are there any signs of increased activity in the academic sector following the approval of the federal budget? A: John Duke, CEO, confirmed that there is an increase in proposal activity and orders following the budget approval on February 3rd. This is expected to translate into revenue in Q2 as funds need to be committed by the end of the federal fiscal year. Q: How is the CRO spending trend, particularly in light of biotech financing? A: John Duke noted an increase in sales to contract research organizations (CROs), with growth observed in China, the Americas, and Europe. Q: What is the outlook for Harvard Bioscience in the Asian market, and what factors are influencing this? A: Mark Frost mentioned that the company expects to achieve flat to growth in Asia for the year, driven by the Made in China initiative and progress with new product introductions. Q: Are the projects in APAC and the U.S. CRO business new or restarted projects? A: John Duke explained that in APAC, it is a mix of restarting and new projects due to facility expansions. In the U.S., it is mostly a restart of projects that had previously slowed down. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

First Quarter 2026 Revenues of $20.8M and Gross Margin of 59% Consolidation of Manufacturing Operations Progressing on Schedule Reaffirms Full Year 2026 Financial Guidance HOLLISTON, Mass., May 12, 2026 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc. (Nasdaq: HBIO) (the “Company” or “Harvard Bioscience”) today announced financial results for the first quarter ended March 31, 2026. “First quarter revenues were in line with our expectations and gross margin expanded year-over-year, while we remained profitable on an adjusted EBITDA basis,” said John Duke, President and Chief Executive Officer. “We are encouraged by the adoption rates of our NPI portfolio – specifically the MeshMEA™ organoid platform, and our BTX® Electroporation and SoHo™ Telemetry systems – which are deepening our reach into the biopharma sector. This shift toward a higher-margin product mix is expected to put us on a path toward consistent 60+% margin and higher recurring revenue. Additionally, our manufacturing consolidation is on track and is expected to yield significant efficiencies and cost savings. Looking ahead, we continue to focus on operational efficiency and believe we remain well positioned for our next phase of growth. We’re reaffirming our full year guidance, which anticipates high margin NPI sales growth driving bottom line growth in the second half of the year.” First Quarter 2026 Results For the first quarter of 2026, the Company reported revenues of $20.8 million compared to $21.8 million in the first quarter of 2025. Gross margin for the first quarter of 2026 was 59%, compared to 56% in the first quarter of 2025. Net loss for the first quarter of 2026 was $(3.4) million, compared to a net loss of $(50.3) million in the first quarter of 2025, which included goodwill impairment of $(48.0) million. Adjusted EBITDA for the first quarter of 2026 was $0.8 million compared to $0.8 million in the first quarter of the prior year. Cash (used) in and provided by operations was $(0.7) million during the three months ended March 31, 2026, compared to $3.0 million in the same period in 2025. The reduction in the cash balance is primarily due to one-time charges related to the process that resulted in the debt refinancing. This press release includes certain financial information presented on an adjusted, or non-GAAP, basis. For additional information on the non-GAAP financial measures included in this press release, see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below. Second Quarter 2026 Guidance The Company’s Q2 outlook reflects year-over-year revenue growth in the mid-single digit range at the midpoint of guidance, margin expansion as NPI adoption scales, and continued profitability on an adjusted EBITDA basis. We expect: Revenue between $20.5 million and $22.5 million Adjusted gross margin between 57% and 59% Adjusted EBITDA between $1.0 and $2.0 million Full Year 2026 Guidance The Company is reaffirming its full-year guidance and anticipates a ramp in revenue in the second half of the year, driven by expected sales growth in our higher margin NPI pipeline, which includes products for organoids and electroporation. The Company continues to expect: Revenue growth between 2% and 4% Adjusted gross margin between 58% and 60% Adjusted EBITDA growth between 6% and 10% Webcast and Conference Call Details In conjunction with this announcement, Harvard Bioscience will be hosting a conference call and webcast today at 8:00 a.m. Eastern Time. A presentation that will be referenced during the webcast will be posted to the Company’s Investor Relations website shortly before the webcast begins. Analysts who would like to join the call and ask a question must register here. Once registered, you will receive the dial-in numbers and a unique PIN number. Participants who would like to join the audio-only webcast should go to our events and presentations on the investor website here. Use of Non-GAAP Financial Information In this press release we have included non-GAAP financial information, including one or more of adjusted operating income (loss), adjusted operating margin, adjusted gross margin, adjusted net income (loss), adjusted EBITDA, adjusted EBITDA margin, diluted adjusted earnings (loss) per share, and net debt. We believe that this non-GAAP financial information provides investors with an enhanced understanding of the underlying operations of our business. For the periods presented, these non-GAAP financial measures have excluded certain expenses and income resulting from items that we do not believe are reflective of the underlying operations of the business. Items excluded include stock-based compensation, amortization of intangibles related to acquisitions, restructuring charges, other operating expenses, goodwill impairment, interest and other expense, net, loss on pension settlement, loss on equity securities, income taxes, and the tax impact of reconciling items. Management believes that this non-GAAP financial information is important in comparing current results with prior period results and is useful to investors and financial analysts in assessing the Company’s operating performance. Historical non-GAAP financial information included herein is accompanied by a reconciliation to the nearest corresponding GAAP measure, which is included below. The non-GAAP financial information provided in this press release should be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP and may be different from other companies’ non-GAAP financial information. About Harvard Bioscience Harvard Bioscience, Inc. is a leading developer, manufacturer and seller of technologies, products and services that enable fundamental advances in life science applications, including research, drug and therapy discovery, bio-production and preclinical testing for pharmaceutical and therapy development. Our customers range from renowned academic institutions and government laboratories to the world’s leading pharmaceutical, biotechnology and contract research organizations. With operations in the United States, Europe, and China, we sell through a combination of direct and distribution channels to customers around the world. For more information, please visit our website at www.harvardbioscience.com. Forward-Looking Statements This document contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend,” “believe” and similar expressions or statements that do not relate to historical matters. Forward-looking statements include, but are not limited to, information concerning expected future financial and operational performance including revenues, adjusted gross margin, adjusted EBITDA, gross margin, cash and debt position, balance sheet, growth, adoption and the introduction of new products, the strength of the Company’s market position, business model and anticipated macroeconomic conditions. Forward-looking statements do not guarantee future performance and involve known and unknown uncertainties, risks, assumptions, and contingencies, many of which are outside the Company’s control. Risks and other factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include those described in the “Risk Factors” section of the Company’s most recently filed Annual Report on Form 10-K, as well as in the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements are based on the Company’s expectations and assumptions as of the date of this document. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect any change in expectations, even as new information becomes available. Investor Inquiries: Mark Frost Chief Financial Officer (508) 893-3120 [email protected]