MRVI

Good afternoon, everyone. Thanks for joining us for our 1st quarter 2026 earnings call. The press release and slides accompanying today's call are posted on our website and available at investors.maravai.com. As you can see from the agenda on slide two, our CEO, Bernd Brust, will provide a business update, and our CFO, Raj Asarpota, will review our financial results. Dr. Chanfeng Zhao, our Chief Scientific Officer, will join us for the Q&A session. Management will make forward-looking statements and refer to GAAP and non-GAAP financial measures during today's call. It's possible that actual results could differ from expectations. We refer you to slide three for details on forward-looking statements and our use of non-GAAP financial measures. The press release provides reconciliations to the most directly comparable GAAP measures. We also post reconciling schedules to our investor website.

Please also refer to Maravai's SEC filings for additional information on the risks and uncertainties that may impact our operating results, performance, and financial condition. Now I'll turn the call over to Bernd.

Good afternoon. Thank you for joining us. We are very pleased with our first quarter performance, which represents a strong start to 2026 and builds on the momentum we exited with last year. The quarter results reflect solid execution across the business and reinforce our confidence in the trajectory we outlined on our call in February. Turning to slide five. We delivered total Q1 revenue of $65.8 million. That's 41% year-over-year growth and 10% year-over-year growth in our base business when you exclude COVID-related CleanCap revenue. This performance was driven by improved TriLink demand, steady contribution from Cygnus, and continued progress against our strategic priorities. TriLink revenue grew 65% year-over-year, with a base business growth of 15%, supported by strong demand in both GMP and discovery consumables. At Cygnus, revenue grew a little more than 1% year-over-year.

We saw solid underlying momentum with high single-digit growth in North America and low single-digit growth in EMEA, reinforcing our confidence in the positioning of the business. This was partially offset by lower contribution from China due to distributor ordering timing. From a profitability standpoint, we delivered adjusted gross margin of 65.3% and adjusted EBITDA of $20.3 million. These results reflect the benefit of higher revenue, favorable product and customer mix, and the cost disciplines we have implemented across the organization. We also generated $4.2 million of positive free cash flow in the quarter, which is the first time the company has been cash flow positive since Q3 of 2024. We see this as another clear indication that the structural improvements we have made are taking hold.

Given our strong start to the year and improved visibility into the balance of 2026, we are increasing the range for our full-year revenue expectations and substantially raising our EBITDA guidance. Raj will walk through that in more detail shortly. Now, let's turn to slide six for an update on our performance against our three strategic pillars: commercial execution, operational excellence, and of course, innovation. Starting with commercial execution, we are seeing strong momentum across the business. Our increased focus on customer engagement is translating into better forecasting, improved visibility, and stronger order conversion. We are securing more annual and multi-quarter purchase orders, which is improving the stability and predictability of our revenue base. This is a meaningful shift from where we were a year ago and reflects the effectiveness of the changes we have made in our commercial go-to-market approach.

That said, our business has a disproportionate number of large orders that can result in quarter-over-quarter performance variation. Large orders tend to align with customer program progression, and as a result, revenue can vary between periods. What gives us confidence is not the timing of any single order, but the strength and continued expansion of the underlying opportunity funnel. Within TriLink, our portfolio now spans enabling technologies such as CleanCap and ModTail, along with custom and catalog mRNA, enzymes, oligonucleotides, including guide RNAs, and a broad range of nucleotide chemistries, including NTPs. This breadth allows us to participate more deeply across the mRNA and gene therapy workflows. We also recently launched all-in-one IVT kits, which simplify the production of capped RNA and provide early-stage researchers with easier access to our platform. At TriLink, our model continues to work as intended.

We establish relationships early in discovery, embed our technologies in customer workflows, and then grow with those programs as they advance into GMP. Mentions of TriLink technologies in scientific publications remain strong, underscoring their role in customer workflows, which we view as an important leading indicator of future demand. A key highlight in the quarter is the continued adoption of ModTail. We now have more than 70 customers using this technology across both large pharmaceutical companies and emerging biotechs. We are seeing growth in new customers, repeat orders, and increasing use across multiple applications. We also see continued strength in our GMP funnel, with GMP customers expected to grow 22% in 2026, representing nine existing RUO customers transitioning to GMP customers, two of which we have already converted this year.

Many of these programs are progressing into later clinical stages, which supports the durability of the demand as a long-term GMP supplier. At Cygnus, we saw growth from our newer DNA quantification and extraction kits, as well as from our MockV product offering. These product lines extend us beyond our traditional HCP franchise into adjacent applications. While still early, we are encouraged by the traction we are seeing as customers look for high-quality analytical tools across their development and manufacturing workflows. Finally, at Cygnus, our kits continue to play a critical role in the market with a 100% attach rate, supporting the safety testing of all 29 of the 29 FDA or EMA-approved CAR T-cell and gene therapies. Now turning to operational excellence. This remains a core focus and a key driver of our improved financial performance.

The restructuring actions we implemented last year continue to deliver results. We now expect to achieve more than $65 million in annual EBITDA savings. These savings span labor, facilities, and controllable spend and are creating a more efficient and scalable cost structure. This is clearly reflected in our margins. We are benefiting from both cost discipline and a favorable product mix, particularly as higher-margin GMP consumables represent a larger portion of our revenue. At the same time, our operating model is now positioned to absorb incremental volume without significant increases in fixed costs, supporting continued margin expansion as we grow revenue. We are also making progress on our digital and operational initiatives. Our e-commerce channel continues to expand, with more customers placing orders directly through our platform, improving speed and efficiency.

In Q1, our website delivered record revenue, reflecting both improved customer engagement and the scalability of our digital platform. Finally, turning to R&D. Our focus remains on translating innovation into revenue and strengthening our competitive position across our customers' workflows. At TriLink, we are making strong progress on our enzymes portfolio. Our GMP facility has now been completed, and we expect to launch GMP quality enzymes this quarter. Early customer engagement has been encouraging, and we see this as an important extension of our capabilities. With ModTail, we are building on the strong discovery adoption and expect to launch GMP-grade ModTail later this year. We are already seeing customer demand for GMP material to support clinical programs. This is a clear example of how our innovation pipeline feeds future revenue growth.

More broadly, our portfolio continues to diversify across custom mRNA kits and catalog mRNA, complementing our existing CleanCap and Oligo product lines. This strengthens our position and reduces reliance on any single product or customer. At Cygnus, in addition to host cell protein assays, which remain the gold standard for clinical and commercial drug product lot release, we now offer an expanded suite of HCP analytical services utilizing advanced mass spectrometry methods and state-of-the-art instruments. These innovative analytical capabilities deliver critical insights to customers throughout drug development and into commercialization, helping ensure their products remain safe and effective. We continue to invest in and expand our IP portfolio across our core platforms, including CleanCap, ModTail, and Cygnus assays. During the first quarter, TriLink received two additional European patents, including one further strengthening protection around our CleanCap technology and methods for synthesizing RNA.

In addition, Cygnus was granted a new U.S. patent related to its MVP (Mock Viral Particle) technology, supporting our assay and analytical capabilities. In summary, the first quarter represents an incredible start to the year. We are executing well across all three pillars, driving commercial momentum, delivering operational discipline, and advancing innovation. The fundamentals of the business are strong, and we believe we are well positioned for continued growth, margin expansion, and cash generation in 2026 and beyond. I'll now ask Raj to provide details on our first quarter performance and our updated guidance. Raj.

Thank you, Bernd. Building on Bernd's comments, the first quarter reflects solid execution across both segments with improving base demand and strong margin flow-through. I'll focus on the key drivers behind the quarter, including revenue composition, profitability, and our updated outlook. Let me start with a closer look at revenue on slide eight. Our business remains well-diversified across end markets. Base revenue by customer type was 32% biopharma, 31% life sciences and diagnostics, 4% academia, 7% CRO/CMO/CDMO, and 26% distributors. By geography, base revenue was 60% North America, 25% EMEA, 8% Asia Pacific, excluding China, and 7% in China. Turning to slide nine, our GAAP net loss before non-controlling interest was $6.4 million. This compares to a GAAP net loss before non-controlling interest of $52.9 million in the prior year period.

Adjusted EBITDA, a non-GAAP measure, was $20.3 million for Q1, exceeding our expectations and improving by more than $30 million year-over-year. This was driven by stronger revenue, favorable mix toward high-margin GMP and discovery consumables, and high-margin contribution from COVID CleanCap. Basic and diluted loss per share in Q1 was $0.02, compared to a loss of $0.21 per share in Q1 2025. Adjusted EPS was positive $0.01, compared to a loss of $0.08 per share last year. Moving to the balance sheet, cash flow, and other financial metrics on slide 10. We ended the quarter with $165.9 million in cash and $242.9 million in long-term debt, following the voluntary $50 million debt repayment during the quarter.

We generated $4.2 million of positive free cash flow, reflecting improved EBITDA and disciplined capital management. Depreciation and amortization was $11.4 million, net interest expense was $3.9 million, and stock-based compensation, a non-cash charge, was $6.7 million for the quarter. Turning to segment performance on slide 11. TriLink represented 72% of total revenue in the quarter. Excluding COVID CleanCap, TriLink represented 64% of total revenue, with base growth of 15%. TriLink was a primary driver of adjusted EBITDA improvement, benefiting from high margin product mix and improved operating leverage. The segment generated $17.3 million of adjusted EBITDA, representing an improvement of more than $26 million year-over-year. Cygnus represented 28% of total revenue or 36% of base revenue and continued to deliver strong profitability.

Cygnus generated $13.6 million of adjusted EBITDA with margins of 73.8%. Corporate expenses impacting adjusted EBITDA were $10.5 million in the quarter. These expenses include HR, finance, legal, IT, and public company costs. Turning to our updated guidance on slide 12, our outlook reflects a strong first quarter and increased confidence in the base business trajectory. We are raising our revenue range to $205 million-$215 million, representing growth of 10%-16% over 2025. We expect TriLink to grow in the high teens, driven by continued strength in GMP consumables and a return to growth in discovery. We do not currently expect additional high volume COVID CleanCap revenue in 2026. We continue to view $10 million-$20 million of annual endemic demand as a reasonable baseline longer term.

For Cygnus, we continue to expect low to mid-single digit growth, and we view the Q1 softness in China as timing related. We are substantially raising our full-year adjusted EBITDA guidance to $30 million-$32 million, representing an improvement of $61 million-$63 million year-over-year, primarily driven by performance in TriLink. This reflects the composition of the growth we are seeing. We continue to see strong demand in higher margin areas of the portfolio, particularly GMP consumables, our higher margin discovery consumables, and key Cygnus product lines. That mix shift, combined with structural improvements we've made, is driving the outperformance in EBITDA. Additionally, we expect continued gross margin expansion of greater than 1,300 basis points, supported by restructuring actions, cost discipline, and favorable product mix. The remainder of our guidance framework we provided in February's call is unchanged.

Importantly, we expect to generate positive free cash flow for the remainder of the year, representing a meaningful improvement from 2025. Overall, we are encouraged by the momentum in the business. Improved commercial execution, a more efficient cost structure, and favorable mix are driving meaningful financial progress. We remain confident in our outlook for 2026. With that, I'll turn the call back over to the operator for Q&A.

Thank you. At this time, if you would like to ask a question, please press star one now on your telephone keypad. To leave the queue at any time, please press star two. Once again, that is star one to ask a question. Please limit yourself to one question and one follow-up. We'll pause for just a moment to allow everyone a chance to join the queue. Thank you. We'll take our first question from Matt Hewitt with Craig-Hallum Capital Group. Please go ahead. Your line is open.

Well, congratulations on a very nice start to the year. Maybe first up and real high level, I'm just curious what you're seeing from your pharma and customers both in kind of segmented large versus small and your expectations for those two groups as the year progresses. Obviously, the funding has improved, and there's been a lot of talk about that. What are you seeing from a spending perspective for that, the smaller pharma and biotech group?

Thanks for the comment. Craig, or Matt, I'm sorry. When we look at that group, it's kind of consistent across the board. You know, big pharma has been very healthy in specifically some larger discovery orders. Discovery or smaller biotech, smaller pharma has been pretty consistent as well across the board. I think the area where we still see, you know, the most significant softness is in this academic research world. That's not a huge part of our revenue any longer. When it comes to pharma, biotech, it's pretty consistent, healthy.

That's great. Maybe just speaking to China, obviously there's a little bit of an order timing issue there. It sounds like that's going to pick up. As a whole, when you look at the year, is China starting to come back, or what are you seeing?

When you look at our Cygnus business, you know, we have one distributor who represents us there. They're a solid company. We are certainly continuing to explore other commercialization options there. Raj and Dr. Zhao was in China last week for both Cygnus and TriLink. We look at China for this year probably still as a sort of mid-single digits growth engine, and I think we should be able to get there. It's the promise a little bit. These are all larger orders, right? There's not really any run rate modeling behind that. We feel good in general about where that is sitting. On the TriLink front, we really haven't done much business in China. It was actually the main purpose for being in China last week. We had some great interactions with customers there.

I think you're going to see some progression happening there over the next months to come. You know, China as a whole, revenue-wise, not a super critical component of the business, but certainly something we're going to continue to work on enhancing.

That's great. Congratulations again on the start to the year.

Thank you very much.

Thank you.

Thank you. We'll now move on to Matt Stanton with Jefferies. Your line is open.

Thanks. Maybe to go back to the demand question, just the base TriLink business, mid-teens growth year-over-year. Can you just unpack the demand a little bit more, what you saw in discovery versus GMP? I think you said you expect GMP to grow over 20% for the year. Did you see that here in 1Q? The last quarter, you sounded pretty upbeat on kind of order trends, funnel activity. Would just kind of love to hear how that trended for the rest of 1Q and here into 2Q in terms of some of the future demand indicator. I assume pretty good just given the guidance range, would love to get any more anecdotal color just on some of the funnel and order activity as well for discovery and GMP. Thank you.

Yeah. Hey, Matt, thanks for the question. I think, when you look at TriLink, like we said, that grew 15%. While that Q1 kind of base growth was strong, as you can extrapolate for the balance of the year, like we said, there's some variability in larger GMP orders. We characterize that underlying growth in the second half in TriLink to be in the low to mid single digits. We do remain very positive on the longer-term trajectory and as we kind of look for more consistent growth. We have, you know, we talked about ModTail as a particular call-out on the R&D side that is starting to get good traction. We've seen revenues from last year into this year steadily climbing.

As that starts to turn into GMP level in the second half, we should see some more positive growth as these programs get traction towards the end of the year and into next year.

Great. Maybe just on ModTail, you know, how is that tracking to expectations? Sounds like maybe better 70 customers, new customers, repeat orders. The scope to launch the GMP in the back half of the year, just how meaningful is that? Was that kind of accelerated as it relates to what you've seen so far on the activity levels on that product? Thank you.

I think certainly, you know, ModTail is well performing above what our expectations are. 70 customers is a pretty big number. I think the dollar amount is right in line with what we had expected for the whole year. It's still a fairly small portion of our total revenues, of course, it being a newly launched product. The fact that we have some larger customers already asking for GMP quality product is pretty unique so early on after a launch. We're moving quickly on that based on some of these earlier customer indications. I don't think the GMP consumables in ModTail will have a material impact in 2026. Certainly, if you start seeing demand there, it should set us up for a very nice 2027 for that product line.

Great. Thank you.

Thank you. We'll move next to Justin Bowers with Deutsche Bank. Your line is open. Please go ahead.

Hi, good afternoon, everyone. Can you talk about the funnel and how that's shaping up and maybe any metrics around growth there and RFPs over the last few quarters or few months? Also, what you're seeing in terms of decisions and timelines there, any change in the velocity?

Let me maybe give a high-level comment, then I'll let Raj get maybe into some more details here. On the GMP front, the funnels continue to be good. I think we pointed out in our comments earlier that we have nine or so new discovery customers that are moving into clinical trials, forecasted for this year. Two have already started. The remainders we're expecting sometime in the remainder of this year to start. You know, that funnel is always fairly easy to manage just because it has a fairly long outlook. We have a pretty good grasp on what's happening there, and it's good growth for the remainder of this year. On the larger discovery orders, it's been great velocity, and in fact, it's been faster than we had expected.

Customers that we were expecting to buy later in the year bought earlier in the year. Hopefully that's a good indication around them accelerating their experiments, their work and further growth moving forward. The challenge in that part of the business is a little bit, for us the average sales cycle there is like two or three months. With GMP, we pretty much know in advance what's gonna happen. On this large discovery segment, we don't quite grasp yet what's gonna happen in Q3 and Q4, just given, again, the sales cycle that comes with this. The trajectory has been great. You know, we see no reason why that shouldn't continue that way.

Certainly that's what we are seeing, in the first four and a half months or now of this year. All in all, you know, great growth trajectory in both areas. Any specifics, Raj, you want to add to that or?

No, I think you covered it, Bernd. I mean, maybe on discovery, again, if you know, we segment those under 15K and greater than 15K orders. As we've always said, under 15K, those orders are predominantly academic and early-stage research. That segment, like we said, is still recovering, but it's consistent with our broader funding environment, and we did see modest growth in this segment in Q1. Then on greater than 15K discovery orders, those are kind of dominated by biopharma and biotech development programs, and those are seeing really healthy growth, like Bernd said.

Thank you. Appreciate it.

Thank you. We'll move on now to Subbu Nambi with Guggenheim. Your line is open. Please go ahead.

Thank you for taking my question. How did the CDMO customer orders perform in the quarter, particularly for Cygnus?

There's not in CDMO and Cygnus, I don't know if we report it out necessarily. If you talk about CDMO and some of our work we're doing with TriLink, that business is fairly steady. We have a couple of great programs in there. It's a pretty small part of our business yet. As we shared last year, we restructured that organization a little bit just to control our costs. The programs that are there are doing well. It's not a very large group, so there's a lot of lumpiness again in there as well. That's probably the only CDMO we break out. I don't know if we break CDMO out customer-wise for Cygnus. I don't think we have in the past.

No.

Okay, that's helpful. When we think of Maravai, just zooming out, and we want to look at leading indicators, where should investors lean on? Should it be smaller biotech, that are working on, biologics? Should it be cell and gene therapy companies or in general the whole bioprocessing end market?

I would go with your last suggestion. I think that the health across the board is starting to get much, much better.

Okay, thank you.

Where we're seeing a weakness still, and it's such a small part of our business, but it is in the academic, smaller research world.

Perfect. Thank you so much, guys.

Thank you.

Thank you. We'll move on to Matthew Parisi with KeyBanc Capital Markets. Your line is open. Please go ahead.

Hi, guys. This is Matthew Parisi on for Paul Knight. Congrats on the quarter and thanks for taking my question. As a percentage of revenue, APAC decreased pretty meaningfully in the quarter compared to fourth quarter. I was wondering what drove that change, is that a trend that you can expect for the rest of 2026?

I'll let Raj go through the details here, but my guess is that's largely through Cygnus. There's not a lot of TriLink activity in that part of the world. Raj, keep me honest there. TriLink, or I'm sorry, Cygnus, we talked about China. I think the other area was Korea, South Korea, where we saw some softness. I don't know whether we have great data behind that.

Really, it's not that meaningful. Again, you know, going back to China, that current softness that we saw in the first quarter is really kind of distributor ordering pattern, and it's not end customer driven. We typically have good line of sight to what the end demand is, and that is not impacted. This is purely a timing issue. We don't see any significant shift for the balance of the year, and that demand is not impacted. We feel pretty good about recovering the demand in the balance of the year.

Thank you. If I could just squeeze in one more. I was just wondering about kind of how the engagement has been with the new mRNAbuilder.

Great. I mean, still early days, obviously. We saw the highest increase in online activity with the business in this quarter. Our total e-commerce revenues is still under 10% for the business, so it's still a long runway to go here. Good engagement. We've seen our first non-contact orders coming through, and highly optimistic that that will be a big driver specifically as the academic world will bounce back at some point here, that just allows us to touch those customers without really increasing any kind of human interaction.

That's awesome. Thanks for taking my questions.

Thank you. Once again, if you would like to ask a question, please press star one on your keypad now. We'll now move on to Dan Arias with Stifel. Your line is open.

Hey, guys. This is Rohan on for Dan. Thanks for the questions. Last year you were pretty adamant that, you know, high volume CleanCap visibility was near zero without binding purchase orders. Today you've pinned the COVID-19 revenue at exactly $14.3 million. What specifically changed in your forecasting methodology or customer contracts that allows for this level of precision now?

I think that's a misunderstanding, guys. I think we shared last year that we expect COVID in 2026 to be between $10 million and $20 million, and we expect that to be the same number kind of moving forward. We received orders in that this is the dollars that came in. We don't expect any other orders for the rest of the year. I don't think we ever said that we would not have any further COVID-related orders in 2026. We would have said that for 2025.

Okay, thanks for the clarity on that. You raised the midpoint of adjusted EBITDA guidance by $12 million or so at the midpoint, right? While only raising revenue by $5 million. Well, aside from the restructuring savings, how much of this kind of change or delta is driven by higher margin mix from ModTail or the GMP Enzymes versus just kind of pure cost cutting?

In, for EBITDA, you know, I think in Q1 we saw the EBITDA disproportionately tied to revenue. We are seeing great benefits, like we mentioned from our commercial strategy, kind of focusing on high-value customers and programs. We've improved our pricing discipline and just managed that longer tail of lower value transactions. That coupled with the favorable mix that we're seeing on GMP on the higher margin orders is kind of improving the quality of revenue and the flow of EBITDA through that. On top of that, our operating expenses are tracking to plan and the cost reset that we did on the restructuring is fully embedded as we modeled, and we're continuing to see savings there. Those are some of the drivers on the EBITDA performance.

It's not an unfair comment.

Okay, thank you.

We do potentially put in a little risk on some of our lower margin service businesses, not tied to commercialization, just tied to project, and you know, how will the success of those projects be. You know, if you see some softness there, it won't impact our margins really in any material way. The product mix is truly a material impact of why we're seeing such great EBITDA performance.

Okay, thank you, for that. Just if I could squeeze in one more question. You have GMP Enzymes launching in Q2. How much of the 2026 guidance, raise is contingent on this, launch? Do you have any pre-orders in place from existing Flanders 2 customers? Thanks.

Zero is tied to that revenue up call. We had assumed this was going to happen. We have orders in hand for GMP. We're running our engineering runs at the moment. I think we would start delivering those GMP orders toward the end of this quarter into early next quarter.

Okay. Thank you, guys.

Thank you. We'll now move on to Matt Larew with William Blair. Your line is open.

Hi. Good afternoon. Since the new team, Bernd and Raj, you've been in place, obviously the focus has been on restructuring, right-sizing, kind of improving the operational health. I think last quarter and this quarter too, it's been as clearly as has turned a corner and markets are improving as well. You know, you mentioned being over in China recently to talk about TriLink still some new business development opportunities, some benefits from the website in terms of record sales or new product launches upcoming.

I guess just as you think about shifting the organization sort of velocity or trajectory from one of restructuring and right-sizing to attacking new growth opportunities, what areas do you think, you know, are sort of the highest return or more near-term things that you can do, as again, the market recovers and customers, you know, fingers crossed, are looking to continue to spend more?

I think it's a great question. You know, I think maybe pointing out first and foremost, I'd like to really thank the team that we've put together here, and this was in July, August last year, really combined its focus both on the restructuring while at the same time focusing on how do we commercially grow this business again. I think at the product front, you saw a great example from our R&D team in launching ModTail and the great, you know, response to that product. On the commercial front, you've seen the restructured commercial organization bringing these products to the customers very effectively with more than 70 customers in place right now. You know, I think the restructuring has happened really in parallel with this commercial effort.

I wouldn't say that that's what started first and now we are shifting. That shift has happened for some time, and I think that's why you're seeing the results. I think as far as where do we see the biggest wins, you know, clearly you're seeing automation and AI coming into play with our smaller academic, basic research orders. We try to avoid, we wanna have as little interaction, human interaction, with those types of orders. The biggest windfalls, the biggest gains, I think clearly sit with big pharma, small pharma, biotech in this large discovery space where there's just a lot of uptick in activity and when we listen to our commercial teams, a lot of interaction with customers there.

Clearly, you know, the bet here is that, you know, a lot of that effort will lead into future GMP activities where these programs enter some stage of clinical trials. Clearly that's the entire approach for our business. How do you get your discovery consumables into GMP consumables? We're seeing a great future for that. As far as geographic is concerned, you know, obviously we're spending the majority of our time today between North America and EMEA. I think you will start seeing an increased shift in focusing more on Asia. I think there are opportunities there that we haven't captured. I think it's a little bit early days.

I would say, you know, in timing of where we have chosen to spend our time, it has been to obviously rightsize the business, but also focus commercially on the regions I just mentioned. Asia for sure will see more effort. I think it's a little early to kinda talk about what that looks like.

Okay. Thank you. That's all for me.

Thank you. Our final question will be from Matt Hewitt with Craig-Hallum. Your line is open. Hey, Mr. Hewitt, you may wanna check your mute switch. Your line is open.

All right. With Matt not on the line, why don't we turn it back to Bernd for some closing remarks?

Thank you, Deb. I'll keep this short here as well. Thanks everybody for taking the time today to listen to our Q1 results and some great questions. Like the results showed in Q1, we feel great about where the business is heading. You know, when we came in last year, and the changes we were bringing forward, that always leaves some concern for instability and we really haven't seen any of that. All of us have kind of commented here also on a positive momentum in the market, specifically in pharma and biotech, which is really our bread and butter. Great Q1. We feel absolutely solid about the remainder of this year and we feel great about the market. Asia, I think the question has come up a couple of times.

I think there's opportunity for us rather than downside, just because our exposure isn't that great there yet. All in all, we feel great about the business. Appreciate your support and look forward to speaking again in about three months.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Hello, and welcome, everyone, joining today's Maravai LifeSciences Q4 2025 Results Earnings Call. [Operator Instructions]. Please note, this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Deb Hart. Please go ahead.

Good afternoon, everyone. Thanks for joining us on our fourth quarter and year-end 2025 earnings call. The press release and slides accompany today's call are posted on our website and available at investors.maravai.com. As you can see from the agenda on Slide 2, our CEO, Bernd Brust, will provide a business update and our CFO, Raj Asarpota, will review our financial results. Dr. Chanfeng Zhao, our Chief Scientific Officer, will join us for our Q&A session. Turning to Slide 3. I'd like to note that we have renamed our 2 reportable segments from nucleic acid production and biologic safety testing to TriLink and Cygnus respectively. This change is to better align with our brands and internal operating terminology. There have been no changes to the composition of our reportable segments, the nature of the products and services offered or the manner in which we evaluate the company's operating performance or allocate resources. This change is nomenclature only and does not impact our segment composition, financial results or historical comparability. Throughout today's call, we will be referring to our 2 segments by this updated terminology. Management will make forward-looking statements and refer to GAAP and non-GAAP financial measures during today's call. It is possible that actual results could differ from expectations. We refer you to Slide 4 for details on forward-looking statements and our use of non-GAAP financial measures. The press release provides reconciliations to the most directly comparable GAAP measures, and we also post reconciling schedules to our Investor website. Please also refer to Maravai's SEC filings for additional information on the risks and uncertainties that may impact our operating results, performance and financial condition. Now I'll turn the call over to Bernd.

Good afternoon, and thank you for joining us. After assuming the CEO role last June and implementing the restructuring actions we announced last August, the management team and I were clear on our priorities: simplify the business, improve operational execution, increase customer interaction and deliver better financial results. We are doing exactly that. Let's turn to our financial results on Slide 5. Today, we reported full year revenue of $185.7 million, exceeding guidance by about $700,000. Total Q4 revenue was $49.9 million excluding the $14.3 million comparison from high-volume CleanCap sales in Q4 2024, revenue grew 18%. Growth was driven by strong performance in GMP consumables and CDMO services at TriLink and by core customer demand for wholesale protein kits at Cygnus with all of our top 5 customers increasing their HCP kit purchases during the quarter. Raj will walk through the full year and fourth quarter results in more detail, but I would like to highlight a key milestone this quarter. We demonstrated the leverage of our new operating model by delivering positive adjusted EBITDA of just over $500,000 in Q4. This represents an improvement of approximately $11 million sequentially from Q3. This marks the company's first return to positive adjusted EBITDA in 4 quarters. We achieved this well ahead of our internal expectations. The improvement was driven by disciplined execution across the organization, including exceeding the $50 million in cost saving targets we set as part of the restructuring, coupled with stronger revenue and more favorable product mix. I want to thank our entire team for their efforts over the second half of 2025. Because of their work, we believe the company is now positioned to return to full year revenue growth, deliver positive adjusted EBITDA and positive cash flow in 2026. Let me briefly highlight what we are doing differently and how our operational changes are delivering improved results. First, our commercial execution. We have materially increased our direct engagement with customers at TriLink positioning CleanCap as the product of choice and as part of a broader portfolio that includes our enzymes, oligos and our newly released ModTail products. This reflects our strategy to expand TriLink beyond capping reagents and deepen our role across the full mRNA and gene-based therapeutic workflow from early discovery through clinical development and into commercialization. By engaging earlier and across more components of the workflow, we increased our opportunity per program and strengthen our position as a long-term strategic supplier. A good example is our upcoming launch of GMP enzymes next quarter. Based on the commercial team's improved customer engagement, we are already seeing strong demand with more than $1.2 million of GMP enzymes orders in hand for 2026. This illustrates the model. We support customers in discovery with research-grade consumables. And services and as their programs advance into clinical trials, we are positioned to transition with them to GMP-grade supply. In discovery, mRNAbuilder is enabling earlier, higher value engagement with our research customers. MRNAbuilder is TriLink's AI and computer-aided design and ordering platform that simplifies designing optimized mRNA. Customers upload their gene of interest and the platform guides them through the design of a high-performance mRNA construct. This platform is increasingly becoming embedded in customer workflows, as evidenced by direct customer feedback and repeat usage. And as these discovery programs advance, this naturally supports pull-through of our GMP portfolio. Few competitors can offer this continuity from discovery through commercialization and that continuity is a meaningful differentiator for us. Operationally, we have reduced fixed costs centralized operations and made the business far less sensitive to volume fluctuations. We now have clear ownership and accountability, remove functional silos and improve the speed of decision-making. We have implemented additional automation to improve efficiency and consistency across the organization. And our new automated EU site allows us to quickly supply screening for the European market. These are structural, sustainable and scalable improvements. Combined with our technical rigor, regulatory capability and reputation for high-quality supply, these changes further reinforce TriLink's position as a partner of choice. From an R&D perspective, we are prioritizing investments in the highest return opportunities across mRNA, cell and gene therapy and the biologic safety testing business. Products introduced in the second half of 2025 are already showing strong traction and our development road map is focused on areas where we can most clearly differentiate our capabilities and best serve our customers' needs. We have a robust pipeline of NPIs planned for 2026. Our recently launched ModTail technology continues to see strong early adoption, generating over $0.5 million in 2025, an unusually strong start for our newly introduced consumable in our market. We have already surpassed that level in 2026 year-to-date bookings with engagement across several large pharma companies. Importantly, early customer data and our own internal studies demonstrate improved protein expression and extended duration of expression both critical attributes for the next-generation RNA therapeutics. We are also investing in additional capabilities at Cygnus. During the quarter, we expanded our mass spec infrastructure to increase capacity and broaden our analytical service offerings. This positions us to offer services that provide drug developers with a full understanding of the host cell protein in drug substances, ultimately leading to increased patient safety and product stability. We view analytical services as a strategic growth lever for Cygnus, complementing our existing HCP and ELISA kit business. We also continue to invest in our MockV product line for viral clearance prediction. As we see quarter-on-quarter year-on-year growth driven by increased market penetration and encouraging regulatory feedback. Taken together, our commercial execution operational discipline and focused R&D enable faster decision-making, improved responsiveness and altogether, a strong foundation for long-term durable growth and profitability. In addition to our improved internal execution, let me share some of what frames my optimism for 2026 on Slide 8. The broader tools and biotech environment appear to be stabilizing. Biopharma funding is showing signs of recovery, particularly in the private markets. Large pharma remains active and well-funded biotechs are advancing programs, while smaller players remain cautious. While academic and government funding remains muted, we have low exposure to those markets. Overall, we're seeing strong order volume and increased visibility. We are also seeing continued expansion in the number of companies pursuing mRNA and guide RNA programs globally, which according to the Beacon RNA database is now 809 companies compared to 643 a year ago. That growth reflects sustained scientific and commercial interest in RNA-based approaches. As delivery technologies advance and pipelines broaden, both emerging biotech and established biopharma continues to invest in RNA platforms. At the same time, companies continue to prioritize capital and rationalize early-stage programs. Importantly, this has not resulted in a meaningful decline in overall clinical trial activity. Trial activity by phase remains stable, and we continue to see solid engagements across discovery, preclinical and clinical developments. TriLink currently works with about 250 to 300 companies on a regular basis or roughly 1/3 of the company's pursuing mRNA and guide RNA programs. We believe with our newly released ModTail technology, we have an opportunity to penetrate additional customers and programs regardless of capping method. Finally, customer feedback suggests the FDA remains constructive in areas such as cell and gene therapy, particularly in rare disease and oncology, where expedited pathways continue to be utilized. While infectious disease vaccine development may face a more measured approach in the current U.S. environment, our exposure in vaccines is low and therapeutic programs continue to progress. What I'd like to leave you with is how confident I am that the fundamentals of this business are solid. We have leading technologies. We have long-standing customer relationships where we continue to build greater transparency and intimacy. We have deep scientific credibility. Now all that coupled with the right team and appropriate sized operations to execute. Now I'll turn the call over to Raj for more details on the quarter and year-end results and our 2026 financial guidance.

Thank you, Bernd. Let's turn to the Q4 financial results on Slide 10. Revenue for the quarter was $49.9 million compared to $56.6 million in Q4 2024. As Bernd noted, excluding $14.3 million of high-volume COVID GMP CleanCap sales in the prior year quarter revenue increased 18% year-over-year. As Deb mentioned at the start of the call, we have renamed our 2 reportable segments from nucleic acid production and biologics safety testing to TriLink and Cygnus, respectively. TriLink generated $34.6 million of revenue, down 17% year-over-year. Excluding the $14.3 million COVID CleanCap comp in Q4 2024, TriLink base revenue grew 25% year-over-year, driven by GMP consumables and CDMO services. Cygnus revenue was $15.3 million, up 4% versus last year. I will discuss segment results and profitability a little later in the call. Revenues by customer type in Q4 were 31% biopharma; 29% life sciences and diagnostics; 4% academia; 11% CRO, CMO, CDMO; and 25% distributors. Revenue by geography in Q4 was 55% North America 15% EMEA; 21% Asia Pacific, excluding China; 8% in China and 1% Latin and Central America. Turning to Slide 11. Our GAAP net loss before noncontrolling interest was $63 million for the fourth quarter of 2025. This included a $25.8 million noncash intangible asset impairment charge related to TriLink and $12.1 million of noncash restructuring charges, including lease unwind costs. This compares to a GAAP net loss before noncontrolling interest of $46.1 million in Q4 2024. For the full year, GAAP net loss was $230.8 million compared to a loss of $259.6 million for 2024. Adjusted EBITDA, a non-GAAP measure, was positive $536,000 for Q4 above our expectations, driven by efficiency of initiating our cost restructuring actions and stronger revenue. This compares to negative $1.1 million in Q4 2024. For the full year, adjusted EBITDA was negative $31.2 million versus $35.9 million for 2024. Moving to Slide 12 and EPS. Basic and diluted loss per share in Q4 was $0.24 compared to a loss of $0.18 per share in Q4 2024. Adjusted EPS was a loss of $0.04 compared to a loss of $0.06 last year. For the year, basic and diluted loss per share was $0.90 versus a loss of $1.05 in 2024. Adjusted fully diluted EPS, a non-GAAP measure, was a loss of $0.29 per share versus a loss of $0.10 in the prior year. Advancing to the balance sheet, cash flow and other financial metrics on Slide 13. We ended the year with $216.9 million in cash and $294.2 million in long-term debt. Cash used in operations in Q4 was $22.8 million, including $3.6 million related to restructuring. Depreciation and amortization was $12.4 million Net interest expense was $4.2 million. Stock-based compensation, a noncash charge was $3.9 million for the quarter. During Q1 2026, we made a voluntary $50 million debt repayment using cash on hand. As a result, both cash and total debt reduced by $50 million from these year-end numbers. We believe this was a prudent step to reduce ongoing interest expense. Next to Slide 14 and the discussion of segment performance. TriLink revenue was $34.6 million in Q4, representing 69% of total revenue. Excluding the $14.3 million COVID CleanCap comp in the prior year quarter base revenue grew 25%, driven by GMP consumables and CDMO services. TriLink generated $936,000 of adjusted EBITDA in Q4 returning to positive adjusted EBITDA for the first time since Q4 2024. For the full year, TriLink revenue was $119.8 million or 64% of total revenue with adjusted EBITDA of negative $23.1 million. Excluding high-volume CleanCap revenue, driving revenue declined 8% for the year. Cygnus revenue was $15.3 million in Q4, up 4% year-over-year and representing 31% of total revenue. Growth was driven by continued demand for HCP kits particularly from our core customers. Cygnus delivered $10.2 million of adjusted EBITDA in Q4 for a 66.7% margin. For the full year, Cygnus revenue increased 5% to $66 million with adjusted EBITDA of $44.2 million and a 67% margin. Corporate shared services expense impacting adjusted EBITDA was $10.6 million in Q4, down $2.8 million sequentially. These expenses include HR, finance, legal, IT and public company costs. Please turn to Slide 15. As Bernd mentioned, we are ahead of our previously announced target of greater than $50 million annualized reduction in expenses and are now estimating savings of greater than $65 million. We continue to identify additional opportunities to streamline operations and improve profitability. Now let's discuss our financial expectations for 2026 on Slide 16. We expect total revenue of $200 million to $210 million, representing growth of 8% to 13% over 2025. We expect TriLink to grow low double digits at the midpoint driven by double-digit growth in GMP consumables and stabilization in discovery. Cygnus is expected to grow low to mid-single digits year-over-year. We expect full year adjusted EBITDA of $18 million to $20 million, representing an improvement of $50 million to $52 million over 2025, primarily from improvements in our TriLink segment. We expect gross margin expansion of approximately 1,200 basis points year-over-year, driven by our restructuring actions, cost initiatives and product mix as we expect greater revenue contributions from TriLink GMP consumables. Total operating expenses are expected to decline approximately 13%. And G&A expenses are expected to decline approximately 18% and sales and marketing should decline approximately 13%. R&D is expected to be modestly up as we continue to fund new product innovation. To help you with your modeling, here are a few additional expectations behind the guide. Interest expense, net of interest income, $15 million to $17 million; depreciation and amortization of $50 million to $52 million; stock-based compensation of $26 million to $28 million as is fully converted share count of approximately 261 million shares net capital expenditures of $4 million to $6 million. Finally, I'd like to provide an update on internal controls and the securities class action litigation. As you'll see when we file our 10-K this week, we have completed the implementation of our remediation plan and enhanced the design and operation of our controls to address the previously identified material weaknesses. Those weaknesses related to controls over our revenue process as well as controls around key inputs and assumptions used in determining the fair value of our reporting units in the quantitative goodwill impairment assessment. To remediate these matters, we strengthened controls over period-end revenue recognition and pricing approvals, enhanced the review and documentation of key inputs and assumptions used in the goodwill impairment analysis and provided additional training to control owners. In addition, I'm pleased to report that the United States District Court for the Southern District of California dismissed in full the securities class action lawsuits against Maravai and certain of our former executives. I want to thank the team for their focused work in resolving these matters. In closing, our fourth quarter reflects the benefits of the actions we have taken, sequential revenue growth positive adjusted EBITDA and continued cost discipline. We are entering 2026 with a leaner cost structure, improved operating leverage and clear priorities. We remain focused on execution driving revenue and continued margin expansion. I'll now turn the call back to the operator for Q&A.

[Operator Instructions]. We'll take our first question from Matt Stanton with Jefferies.

Maybe on the commentary on visibility improving in the color on Slide 8, you talked about strong order volume. Is it fair to say orders are tracking kind of ahead of what you're guiding on revenues for '26 on year-on-year growth. So maybe just derisking a bit or leaving a bit of upside. Is there any more color you can give in terms of order and funnel growth type of a strong order volume? And if yes, maybe pipe out some of the opportunity where you see the most areas of upside as you move through '26 here?

Thanks, Matt. This is Bernd. We shared in our last earnings call that there's a little lumpiness of course, in this business, right, in a business that's a couple of hundred million bucks in revenue and our average order volume is fairly high, average order cycle is about 6 months. So it's hard to get a true outlook on what happens for the full year. And so we're certainly I think trying to be somewhat conservative as to how we set ourselves up for the future here. But specific to your question, order volumes are materially higher so far than they were last year at this period of time. So that's a good sign, obviously. What we see specifically is in the TriLink world in our GMP consumables as well as our larger order sizes in discovery. When we look at our business in discovery, there are sort of 2 categories: orders under average 15 [indiscernible], where we assume those salespeople are involved in orders over 15 that does require usually some kind of sales involvement where we're seeing material growth in is in these larger orders in discovery alongside with GMP. But order volumes are great, and we feel very, very confident about where we are with our forecast for the year.

And maybe just on the GMP consumables, you talked about the strength in 4Q, the strength in orders. Can you talk a little bit more about it? Is that tied to a few programs moving further through the clinic? Is it selling more products into the GMP consumable ecosystem? Just talk about maybe some of the underlying demand factors underpinning the GMP consumable strength you've seen?

Yes. It's really a broad set of customers. There's really not one customer that stands out that says this is where we're seeing all of our growth. So I think that's the beauty actually about the business at the moment where certainly in the COVID years great revenues, but from a very small number of programs, the number of programs is quite significant at the moment. And so yes, we feel good about the depth of our customers that we are currently interacting with.

We'll take our next question from Subbu Nambi with Guggenheim.

First one is on the gross margin expansion of 1,200 bps from restructuring cost initiatives and product mix. Can you break out each of these buckets, if possible?

Yes, sure. We can -- I can give you the details on the cost savings that we've outlined before. So we talked about the $55 million that we previously mentioned. And now the actual gross margin expansion is going to be coming from the $65 million annualized savings. And again, I'd like to remind you that we captured about $3 million of that in Q3 and another $8 million in Q4. So the $65 million in annualized cost savings basically resets the fixed cost base to create that margin lift on gross margin, which is independent of volume growth. And then there's additional expansion on gross margin that's going to come from mix, made from GMP consumables contribution and the operating leverage as we continue to expand revenue.

And then one high-level. AI role in drug discovery, development and manufacturing is the investor focus of late. How is Maravai using AI either at the sender side in R&D or otherwise to generate efficiency?

I'm sure the question was how is AI driving efficiencies in the business?

Yes.

Yes. I think we're implementing this in various areas of the organization. And you heard us talk about mRNAbuilder that we went live with, I think it was the third quarter of last year. It's really an automated platform that we acquired through the efficient acquisition early last year that allows customers without really any human intervention to upload their DNA construct and then create an optimized RNA construct from there. I think so far, since we have been live, something like 70-or-so orders have been going through that system. It's gradually picking up. But that's probably the biggest involvement of AI that we have at the moment. I can't speak to whether we use that in the CDMO world, I don't believe so.

We'll take our next question from Matt Larew with William Blair.

Congrats on the update. It seems like you've turned a corner here. I wanted to ask about the guide for the year. Just given Q3 and Q4 you had some lumpiness with some of the CDMO builds. And so a number of larger peers have characterized perhaps a softer first quarter, though they're optimistic about the build for the year. So just curious if there's anything you would call out either from a prior year comp or an expected order conversion that might affect casing in the first quarter in particular?

Listen, we're optimistic on Q1. As we shared, we're optimistic on the year as well. On the top line, it's really not any serious negative comps. So obviously, we comped out all of the COVID hits that we comped against '24 and '25, but when you look at the orders that we are currently seeing in the business, it's really quite a diverse set of customers across the portfolio of TriLink. And obviously, Cygnus continues to run at the sort of mid-single-digit revenue levels as well. So we really don't look at it as a negative or positive comp in Q1. I think if you look at this year, probably Q3 last year was pretty tough on the GMP world. So we'll see what that means this year on Q3. But certainly, as we look at the first half of the year here, we shared with I think the group here in September that we were expecting somewhere between $10 million and $20 million worth of COVID caps in 2026, specifically in the first half. We still expect that to happen in the first half. So that is the one positive comp that you'll see in the first half. But other than that, I think it's true strength of customer spending.

I think we spoke about this on the previous call in terms of our commercial engagement and how that's giving us better visibility into the GMP consumables world. So that continues to happen. So on the strength of that, we've seen Q1 coming in relatively strong, and we -- and that's going to kind of continue through the balance of the year.

Okay. And then cost reduction program came in ahead of schedule. And I think the way you guided OpEx is good to see in terms of R&D getting dollars but finding efficiencies at our places. Prior to COVID, Maravai operated with EBITDA margins above 40%, though that was maybe largely as a private company, and I understand it's maybe not a perfect comp. But if you think about the midpoint of the guide this year, EBITDA margins being roughly 9% and where you expect to be in the future, obviously, now you have a services portfolio, you've adding new products, which we don't fully know the margins of. But where do you think margins can go long term? And understanding that long term is maybe undefinable in terms of time line at this point, but just terms of the structure of the business and get the kind of products and services you're offering, but where do you think you can get over time?

I think you're going to get your margins up truly through higher product sales, right? When you look at the organization today, you have a fairly complex GMP operating model here that you did, God knows how much volume during COVID that sits in the same infrastructure we still have. So we can absorb a large number of other GMP orders without really increasing our cost structure with the exception of raw materials and maybe a little bit of labor. So the natural margin increases, I think, are going to come purely from revenue growth over the outlying years here.

We'll take our next question from Matt Hewitt with Craig-Hallum.

Maybe first up, regarding the restructuring, you got through that earlier than expected. So should we anticipate that the expense lines kind of have reset at this point, maybe a little bit below the Q4 numbers for sales in general and all that and kind of show some normalized growth -- CA growth, if you will, over the course of the year or is there still yet one more step down after Q1?

So again, going back to the macro level, the $65 million in expense reductions that we've outlined those expense categories haven't changed. Some have moved a little bit towards being more favorable. Our labor expense profile is going to remain the same. Our facilities is going to essentially remain the same. Our controllables expense is going to be down a lot more than we anticipated. And then just by the account types. If you look at our COGS profile, that's going to materially essentially remain the same. But on the OpEx side, we're going to get a lot more out of G&A. And like we said we're going to invest a little bit on R&D and then sales and marketing is going to essentially remain the same. There will be another modest drop in Q1 though I think to get your question directly.

Got it. And then maybe a separate question. The FDA recently provided some new draft guidance regarding some of your markets. And I'm just curious what your thoughts were on that draft guidance? And more importantly, when do you think that you could maybe start to see some benefit from that?

Yes. I don't think we have internally looked at that very closely. We don't have a ton of exposure on where that dialogue sits at the moment. And so I don't think we have a clear view on that at this...

Our next question comes from Catherine Schulte with Baird.

This is Josh on for Catherine. You mentioned that you're working with around 250 to 300 customers within the mRNA ecosystem. I was just wondering where kind of market shares show out between clinical and preclinical customers and how you kind of characterize the recent market share dynamics there? And then just lastly, how do you kind of feel about current mRNA pipeline trends heading into 2026?

Yes. I think we assume about 1/3 market share, right, of mRNA customers out there. It's not always that easy to talk about programs because we don't always know how many programs a customer is running at a given point in time. But I think if you look at our GMP revenues, which Raj, which are this year forecasted at what number, do you remember?

GMP consumables.

It's somewhere around $44 million, $45 million, right, something like that. And so that suggests that your discovery business is still larger than our GMP business. So I would say that today, the GMP world, I know it's 1/3 of our revenue, something like that. And we're seeing the fastest growth happening there. So that certainly to us indicates that you're going to continue to see either more programs coming into the GMP world or programs progressing in higher volumes.

Great. And then throughout 2025, we saw a lot of policy headwinds around areas like mRNA, cell gene therapy and MFN. You're heading into 2026, how are you feeling about the broader policy backdrop here? How does this inform the improved visibility that you're seeing across the business?

Yes. I think a lot of the policy has been driven around vaccines, right? And so we really don't have a ton of exposure in that area any longer now that we've washed through the COVID comps from 2024. But when you look at just customer behavior, we're a consumables provider and we're directly dependent, of course, on customers doing either mRNA research or trials. We're starting to see more and more traction coming from our broader customer base, not just in GMP, but also in the discovery world. And that tends to be the best sign, of course, in that you have to assume when you have larger discovery orders coming in that some of those will move into a GMP clinical trial world at some point. So the fact that, again, discovery orders and larger size are becoming more and more, I think, prominent at the moment is a very good sign where we think the GMP world will lead into.

We'll go next to Justin Bowers with Deutsche Bank.

So sticking with GMP, can you give us a sense of what that -- how much revenue that generated in 2025? And then as we think about 2026, excluding the COVID revenue, is there any seasonality that we should take into consideration for TriLink?

I don't know there's seasonality necessarily. That's kind of the interesting part about this business. The lumpiness exists based on these order sizes and really until you get some of these programs becoming commercial you have changes from certainly discovery into GMP, you have certainly movement from Phase I to II to III. Some programs don't make it out of certain trial levels. And so the lumpiness that we see in the business is really not seasonal, it's purely tied to really how successful these clinical trials are. But yes, the nature of our business is such that because these orders are fairly large, as they shift between programs they will likely shift between time as well.

Understood. And just a quick follow-up. What was GMP consumables in 2025? And then part 2 of that would be, I think last year, you talked about maybe some maybe sharing space or thinking about some alternative revenue generation activities in Flanders and just curious if there's an update on those initiatives?

Well, on the facility front, we have -- one of our Flanders sites is our CDMO business, and that's fully occupied by that. And the other Flanders site, currently, we don't occupy. We have closed that facility. If we find somebody to take that over, we will deal with that at that point, but we're not looking for incremental revenues necessarily coming from that piece. And so that has been all addressed, I think, in our accounting world as well. We don't take those into our EBITDA lines any longer. On the question around GMP consumables, maybe Raj, do you have those numbers?

Yes. We kind of don't break that out completely. But if you look at the GMP and CDMO business combined, that's in the mid-30s last year.

And by the way, for clarification, the $43 million I mentioned a minute ago for GMP consumables that excludes CDMO.

Our next question comes from Doug Schenkel with Wolfe Research.

The first on APAC, the second on MockV. So starting on APAC. As a percentage of revenue, APAC increased pretty meaningfully in the fourth quarter compared to the third quarter. I think you said China was stable. So it does seem to imply that there was a pretty big pickup in Asia, ex China. Am I thinking about that right? And if so, what drove that change? And is this a trend that you expect to continue into 2026? And then on MockV, you called out demand as a driver of growth in the quarter. How has that been trending? And how do you expect that to contribute in 2026? And I'm just wondering if over time, that could be a contributor to driving overall Cygnus growth above the mid-single-digit construct?

I'll take the -- I'll start with the GMP and like in Asia Pacific in Q4 was driven by 2 large GMP orders, but they were kind of tied to our ongoing programs and partnerships and not kind of the onetime events. And then -- so we view this as a sustainable kind of event and reflective of the ongoing improving program momentum we have, and it's not a one-off event. So that was what drove the APAC growth. And then what was your second question again, I'm sorry? Yes, we did see MockV growth, and we think that product has shown tremendous kind of runway from last year to this year and in -- sorry, from '24 to '25 and we see continued kind of growth on that product line within Cygnus.

If I also may add MockV. So Cygnus has supported several customers with the including MockV data in customers' clinical trial application. So the initial approach has been positively received by a regulatory agency. So the idea of MockV could potentially replace expensive lengthy viral clearance study, which can really broaden our potential customer base.

And we think MockV has great potential runway here, and I think it's a good indication of that. I would also say, don't expect that to happen in 3 months. It's a longer-cycle business. Ad short-term growth, I think the question was, how do we potentially look at Cygnus growing faster than sort of mid-single digits? I think certainly, long-term MockV could be a player there. We've invested some more in services. We bought another mass spec into the organization. So I think you'll see some opportunity coming from there. And I think you're right, Asia does have some opportunities. that are potentially there for us to capitalize on.

We'll take our last question from Matthew Parisi with KeyBanc Capital Markets.

This is Matthew Parisi on for Paul Knight at KeyBanc Capital Markets. Congrats on the great quarter. So a quick question about the CleanCap revenue. You mentioned $10 million to $20 million will come in the first half. Can we assume that there will be additional COVID CleanCap revenue in the second half?

No. I think we shared with all of you in Q4 that we expect $10 million to $20 million will be the total number for 2026. So we kind of look at that as the ongoing run rate in the following years as well. And you should keep that number as a guidance for the business. We expect this year that all to come in the first half of the year.

All right. And then next would be kind of -- you talked to the significant traction you're seeing in ModTail. I was wondering if you could talk to the traction you're seeing in the new IVT kits. And then you previously mentioned that you intend to launch new kits in '26? And when could we potentially expect to see the launch of those kits?

Chan, do you want to answer that or would you like me to?

Yes. Yes. So we've -- the ModTail we launched nRNA service and catalog mRNA. And so the data coming back from customers that they are very positive. And so they are starting asking -- as Bernd mentioned, that we have large pharma companies using this technology. And as the positive data coming back, they are asking sort of GMP-related question. Obviously, we'll be ready for GMP to meet the customer demand. And for the IVT kits, as you know, [indiscernible] has been doing mRNA for many years. So we have deep knowledge IVT CleanCaps. So the kit is really well received in the field. We have over 100 kits ordered first few weeks -- first 4 weeks, and we see sequential growth from Q3 to Q4, and we also see more adoption in the field. We also converted one major customer from a competitor to use our kit. So it's all good, and we are going to launch more kits and a different version of kit to meet customer demand this year.

So ModTail is an interesting product. I mean it's still early days, obviously, but the fact that we officially launched this in September through the commercial organization, well over $1 million in orders already. And that's through Chanfeng's comments, service and some catalog mRNA feedback that's come back from customers have been quite impressive. And so we have a lot of confidence of this product becoming a big driver of revenue growth for our business in the years to come.

At this time, there are no further questions in queue. I will now turn the meeting back to our presenters for any additional or closing remarks.

Thank you. Thanks again, everybody, for dialing in, sticking with us. We know that we're still new in this organization. I think we are bringing it around very quickly. We are highly confident about the progress that we're making. You look at TriLink, certainly that's been stabilizing and positioned for growth in 2026. The fact that Cygnus now has hit its positive growth quarter, 3 in a row, is a great story, and we are confident that's going to have a great 2026 as well. Our cost savings are materially higher than we had initially planned really without impacting the business, I think, is an incredible sign for the organization. We're going to see EBITDA growth. We're going to see cash positive direction in 2026, again. We're leaner, we move faster, great interaction with our customers and highly confident that we're going to have a great 2026 here. So thanks, again, for your time and interest in the company, and we'll speak to you again in about a quarter. Thanks.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.