Summary of Harvard Biosciences, Inc. Q1 2026 Earnings Call

1Key Financial Results and Metrics:

Revenue:: $20.8 million, in line with guidance ($20 million to $22 million) but down from $21.8 million in Q1 2025.

Adjusted Gross Margin:: 59%, up 300 basis points year-over-year, attributed to operational efficiencies and higher-margin new product innovations (NPI).

Adjusted EBITDA:: $0.8 million, flat year-over-year, slightly below expectations due to increased sales and marketing investments.

Operating Loss:: $1.2 million, significantly improved from a loss of $49.7 million in the previous year (which included a $48 million goodwill impairment).

GAAP EPS:: Negative $0.77, improved from negative $11.42 a year ago; adjusted EPS was negative $0.33 compared to negative $1.25 last year.

Cash Used in Operations:: $0.7 million, down from $3 million in Q1 2025, primarily due to increased inventory.

2Strategic Updates and Business Highlights:

Continued transformation into a supplier of translational science products, with a focus on new product innovations like Mesh MEA, BTX Electroporation, and SoHo Telemetry.

Sales to pharma and biotech customers grew over 20% year-over-year, driven by the adoption of new methodologies.

The Made in China initiative launched to enhance local manufacturing and sales, starting with BTX products.

Project Viking: , aimed at consolidating manufacturing, is on track to generate $3 million in savings by 2027.

Strengthened leadership team with the addition of Dave Panzarella as SVP of Commercial.

3Forward Guidance and Outlook:

Q2 2026 Guidance:: Revenue expected between $20.5 million and $22.5 million, with adjusted gross margin between 57% and 59% and adjusted EBITDA between $1 million and $2 million.

Full Year 2026 Guidance:: Revenue growth of 2% to 4%, gross margin of 58% to 60%, and adjusted EBITDA growth of 6% to 10%.

Anticipated growth in NPI products and increased spending from academic institutions following the approval of the NIH budget.

4Bad News, Challenges, or Points of Concern:

Year-over-year revenue decline primarily due to lower sales from academic institutions in the Americas and distributors in APAC.

Operating cash flow was negative due to increased inventory and one-time administrative costs related to corporate actions.

The Americas revenue decreased by 9% year-over-year, indicating challenges in the academic sector.

Potential risks include reliance on the timely spending of academic budgets and the overall economic environment affecting research funding.

5Notable Q&A Insights:

NPI products (Mesh MEA, SoHo, BTX) currently account for 15% to 20% of total revenue and are expected to grow double digits.

Increased activity in bidding from academic institutions is anticipated due to the recent approval of the NIH budget.

In Asia, a mix of new and restarted projects is driving growth, with expectations for flat to positive growth in the region.

The company is optimistic about sustaining gross margins above 60% due to the higher margin nature of new products and increased recurring revenue. Overall, Harvard Biosciences is navigating a transitional phase with a focus on innovation and strategic initiatives, despite facing some revenue challenges in specific markets. The outlook remains cautiously optimistic with plans for growth and operational improvements.