Cytek Biosciences, Inc.

Thank you for standing by. My name is Tina and I will be your conference operator today. At this time, I would like to welcome everyone to the SciTech Science's fourth quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. To ask a question, simply press star one on your telephone keypad. To withdraw your question, press star 1 again. It is now my pleasure to turn the call over to Paul Goodson, Head of Investor Relations.

You may begin. Thank you, Operator.

Earlier today, SciTech Biosciences released financial results for the fourth quarter and year ended December 31st, 2025. If you haven't received this news release or you'd like to be added to the company's distribution list, please send an email to investors at scitechbio.com. A copy of the news release is also available on the investor relations section of SciTech's website at investors.scitechbio.com. Joining me today from SciTech are Wenbin Zhang, CEO, and Bill McComb, CFO. Please note that we will be referencing a slide presentation during the call today that has been posted to the investor section of our corporate website. As a reminder, on slide two, we will make statements during this call that are forward-looking statements within the meaning of the federal securities laws, including statements regarding CITAC's business plans, strategies, opportunities, and financial projections. These statements are based on the company's current expectations and inherently involve significant risks and uncertainties. that could cause actual results or events to materially differ from those anticipated in these statements. Additional information regarding these risks and uncertainties appears in our slide presentation in the section entitled Forward Looking Statements in the Press Release CITAC Issue Today and in CITAC's Filings with the SEC. This call will also include a discussion of certain financial measures that are calculated in accordance with generally accepted accounting principles. Additional information regarding our use of non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, may be found on our slide presentation and in today's press release. While the company believes these non-GAAP financial measures provide useful information for investors, The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. If kept as required by law, SciTech disclaims any duty to update any forward-looking statements, whether because of new information, future events, or changes in its expectations. This conference call contains time-sensitive information and is accurate only as of the live broadcast, February 26, With that, I will turn the call over to Wenbin.

Thanks, Paul.

Welcome, everyone, and thank you for your interest in SciTech. On today's call, I would like to start with a discussion on our performance in the fourth quarter and the full year 2025 before turning the call over to Bill for a detailed look at our financials and our outlook. Turning to slide three, we have visited 2025 in line with our expectations and delivered accelerating revenue growth quarter-over-quarter throughout the year despite challenging industry conditions. Fourth quarter revenue in 2025 reached $62.1 million, representing a year-over-year increase of 8%. compared to the same period in 2024, and notably the highest revenue historically achieved in a quarter at Scitec. This growth was driven by a continuation of the strength we saw in the third quarter, namely stabilization and growth in the U.S., a turnaround in the EU, continued strength in APAC, and a solid extension of our recurring revenue businesses worldwide. Turning to slide four, geographically in the fourth quarter, EMEA and APEC both posted a double-digit year-over-year percentage revenue increases with solid gains across instruments, regions, and service. Year-over-year fourth quarter revenue growth in a year was driven by strong instrument demand from academic and government customers and continued momentum in service revenue, partially offset by a decline in instrument revenue from biotech, pharma, and CRO customers. For the fourth quarter of 2025 in the U.S., we saw mid-single-digit year-over-year growth in total revenue, driven by sentiment shifting in the epidemic and volume market. This increase was partially offset by a decline in instrument sales to the biotech, farmer, and CRO markets, reflecting the typical fluctuations we see with this sector, particularly after a strong third quarter.

Turning to slide five.

Two-year revenue in 2025 reached $201.5 billion, representing a year-over-year increase of 1% compared to the day before.

I want to take a moment to highlight the improvement in our revenue growth during 2025.

For the first half of the year, total revenue went down almost 5% year-over-year due to public policy issues affecting life sciences spending. Our momentum pivoted in the second half, with total revenue up 5% compared to the second half in 2024. This return to growth reflects in two trends and increased customer demand. Importantly, Our overall performance in 2025 demonstrates the durability of our business, particularly when compared to the evidence of decline in sale analysis and large-size instrument demand through the end of the third quarter. We believe our success at delivering revenue growth in 2025 was achieved through the strength of our brand and technology. the diversification of our revenue streams across multiple geographic regions, and a growing contribution from recurring revenue.

We believe this return to growth will continue in 2026.

I would now like to update you on the progress our team has made across our core strategic panel, instrument, application, bioinformatics, and clinicals to further reinforce SciTech's position as a market leader in next-gen cell analysis solutions.

Starting with our core instrument on slide six, in the fourth quarter,

We extended our global footprint by 208 instruments, bringing SysEd's total installed base to 3,264 units. In 2025's challenging market environment, we believe the growth in our FSC instrument revenue reflects the superior performance of SysEd's products, our brand recognition, and the underlying strength of our core business. We are particularly pleased with the growth in our sales order unit volume, which grew 22% in 2025 compared to the prior year and accelerated to 26% growth in the fourth quarter over the prior year period.

We have also been very pleased with the performance of our yield

SciTech Aurora Evo system. In the short time since its launch last May, it has been tremendously successful, driving 21% unit growth in the combined Aurora category in the fourth quarter versus Q4 of 2024. I'm also pleased to highlight that the new micro-system was recently awarded the 2025 Biotek Breakthrough Award for the Jet Discovery Solution of the Year. As we previously noted, the new microanalyzer is an ideal choice for researchers and labs teaching cost-effective phytometry solutions and has had a very strong reception since its introduction last year. This new product offering reflects our commitment to maintaining our position at the forefront of the technology innovation in cell analysis generally and pro-phytometry specifically. I would now like to turn to our next growth panel applications, which is comprised of our religion business. We delivered more than 20% growth in religions in the fourth quarter in all of our geographic regions except the U.S. Our religion growth continues to be driven by the improvement we put in place in Condé 45, including best-in-class delivery times

a large catalog of reagents and new initiatives and strategies on reagent sales. Turn into slide seven.

Our recurring revenue continues to strengthen as our insolvent instrument base expands. For all of 2025, recurring revenue represented a 34% of total revenue and then notably grew 21% year over year. We expect the recurring revenue proportion of total revenue will continue to grow steadily with increased cumulative instrument placements and to become an increasingly larger share of our business over time. In bioinformatics, our software ecosystem continues to be a powerful growth driver. The advanced software embedded directly in our instruments combined with the capabilities of the site cloud, are highly valued by our customers and are accelerating adoption of our products. By year-end 2025, the number of users on the site cloud grew to over 24,000, representing growth of more than 50% in a single year, and unleashing nearly 8 users per installed FFT instrument. Our expanding digital footprint enhances the attractiveness of our offerings overall and helps to drive the Asian revenue growth. Before turning to our financial results, I want to highlight the meaningful operational progress we achieved in 2025. Only in the year, we established a new manufacturing facility in Singapore and optimized our broader global operational footprint. These actions strengthened our region-for-region manufacturing strategy and further reinforced the resilience of our supply chain. I'm particularly proud that the Singapore site began generating revenue in less than 100 days from when we started the build-out. Importantly, these initiatives also positioned us to mitigate the impact of the still-evolving tariffs policies worldwide.

Now, I would like to ask Bill to reveal a lot more.

Thanks, Wendon. Before I discuss the quarterly and full-year numbers, I want to comment on the macro trends we saw play out across the quarters of 2025. Beginning in the first quarter, macro uncertainties and weak demand resulted in total revenue declining 8% year-on-year. In Q2 and Q3, revenue growth stabilized with minus 2% and plus 2% growth, with growth in our service and APAC businesses being offset by declines, particularly in EMEA. Then in Q4, as we had expected, we saw EMEA stabilize while other markets continued to grow and overall revenue growth increased to 8%. We believe this turnaround is reflective of more durable trends in our markets as we have seen these trends continue into 2026, which has informed the full year 2026 guidance I will share with you in a moment. Turning to slide eight. Fourth quarter revenue was $62.1 million, up 8% year over year. Growth was driven by strong global performance in service and reagents, continued momentum in instrument demand across Asia Pacific, and a rebound in EMEA instrument demand among academic and government customers. Currency movements were also a factor, contributing 3% to growth in the quarter. In the U.S., instrument revenue was flat as strength in academic and government offset softer demand from biotech and pharma. Globally in the quarter, revenue from academic and government customers grew 33% off a week prior year comparison, while biopharma revenue declined 6% against a strong Q4 last year. Product revenue, which is comprised of instruments and reagents, increased 3% versus Q4 of 2024, driven by double-digit gains in APAC and EMEA, as well as a low single-digit gain in the U.S. U.S. product revenue continued the stable trend from Q3, attributable to a strong double-digit increase in instrument revenue from academic and government customers compared to a weak fourth quarter in 2024. This was offset by weakness in pharma biotech instrument sales in Q4 after their strong purchases in the third quarter of 2025. Our instrument sales in the U.S. was supported by the launch of our new Aurora EVO instrument, as well as pent-up demand from and stabilized funding of academic and government customers. In EMEA, the situation was somewhat similar to the U.S. The double-digit percentage increase in EMEA product revenue was primarily driven by outsized gains in revenue from academic and government customers compared to a weak Q4 in 2024. Also similar to the U.S., EMEA revenue from pharma biotech was weak in Q4 compared to a strong year-ago quarter. While our reagent revenue is still a mid-single-digit percentage of our total revenue, it grew more than 20% in Q4 and more than 25% for all of 2025. As we've mentioned previously, this strong growth is due to a number of initiatives we implemented at the beginning of 2025, including attaining industry-leading delivery times, offering a large catalog of reagents, creating a new dedicated reagent sales team, and introducing new reagent products. Service continued to deliver strong recurring revenue growth with 25% growth in Q4 versus the prior year quarter. This was driven by growth in the install base and active usage of our systems. We expect service to continue to grow based on these factors, although its growth will slow gradually as the number of installed instruments grows, making the denominator larger in that calculation. Turning to geographic market performance, total U.S. revenue grew 5% in Q4 versus prior year, driven by double-digit service revenue growth. EMEA grew 21% due to strength in service and instrument revenue from academic and government customers. APAC, including China, grew 15% in Q4, driven by growth in instrument service and reagents. GAAP gross profit was $32.9 million, a 2% decline versus the $33.7 million in Q4 of 2024. GAAP gross profit margin was 53% versus 59% in the prior year quarter. This was due to both a lower service gross margin resulting from an increase in headcount and travel costs and a lower product gross margin as a result of higher materials and tariff costs and higher manufacturing overhead due to the duplicate costs from transitioning a production facility overseas. Adjusted gross profit margin, which excludes stock-based compensation and amortization of acquisition-related intangibles, was 55% in Q4, down from 61% in the prior year quarter. Total operating expenses were 38.5 million in Q4, up 7.8 million or 25% versus Q4 of 24, which included a non-recurring expense reduction of 2.6 million related to a change in estimate for a license and royalty settlement liability adjustment. Excluding this expense reduction, the increase was 5.2 million, This was driven by higher general and administrative and sales and marketing expenses, partially offset by lower R&D. Research and development expenses were $9 million, down 8% versus the year-ago quarter, primarily due to lower headcount and compensation expenses and lower engineering expenses. Sales and marketing expenses were $13.1 million, up 11% versus the year-ago quarter due to higher headcount and compensation expenses and higher sales commissions. General and administrative expenses were $16.4 million, up $7.3 million from the year-ago quarter, which included the $2.6 million reduction I mentioned before. Excluding this reduction, the increase would have been 4.7 million or 40%. The increase was primarily attributable to legal expenses related to a patent litigation case and higher compensation, software, and bad debt expenses. Loss from operations was 5.6 million for Q4 versus a 3 million income from operations in the year-ago quarter. which included the 2.6 million non-recurring expense reduction that I mentioned before. Excluding this amount, income from operations in Q4-24 would have been 0.3 million. The remaining decline in income from operations of 5.9 million was due to 0.8 million lower gross profit and 5.2 million higher operating expenses. Net loss in Q4 was $44.1 million versus net income of $9.6 million in the prior year quarter. The current quarter net loss of $44.1 million included the recording of a $38.1 million valuation allowance or write-off against deferred tax assets under ASC 740, due to the uncertainty of realizing the associated future tax benefits. This is solely an accounting determination that does not affect our ability to use these losses for tax purposes and is a non-cash item. Moreover, it is an unusually large amount as these deferred tax assets have been accumulated over multiple years, and this was the first time such a valuation allowance had been taken. Excluding this valuation allowance, the net loss would have been 6.0 million. Net income in Q4-24 included a non-recurring benefit of 6.7 million after tax associated with the settlement liability adjustment I mentioned before. Excluding this item, net income would have been 2.9 million. The remaining increase in net loss of 8.9 million was primarily due to $0.8 million lower gross profit, the $5.2 million increase in operating expenses, and a $2.5 million increase in other tax expense, principally on foreign earnings. Adjusted EBITDA, which excludes the stock-based compensation and foreign exchange impact, declined to $4.5 million from $12.5 million in the year-ago quarter, which included the $2.6 million non-recurring benefit I described above. Excluding this amount, adjusted EBITDA in Q4-24 would have been $9.9 million. The decline of $5.4 million was primarily due to higher operating expenses of $5.2 million and lower gross profit of 0.8 million. Free cash flow during Q4-25 was slightly negative at minus 0.2 million, modestly decreasing our total cash and marketable securities to 261.5 million at December 31, 2025, from 261.7 million at the end of the third quarter. now turning to slide nine for the full year 2025. total revenue for a year ended december 31 2025 was 201.5 million a one percent increase over the prior year the increase in total revenue in 2025 was primarily driven by a 21 percent growth in worldwide service revenue and double-digit growth in APAC product revenue offset by a slowdown in EMEA and U.S. product revenue. Gap gross profit was $104.5 million for 2025, a decrease of 6% compared to a gap gross profit of $111.1 million in the prior year. Gap gross margin was 52% for 2025 compared to 55% in the prior year. The decline was primarily due to higher service headcount and material costs, higher tariffs, and higher manufacturing overhead costs due to transitioning the production facility overseas, as I mentioned before. Adjusted gross margin, which excludes stock-based compensation and acquisition-related intangibles for 2025, was 55% down from 59% in the prior year. Operating expenses were $144.8 million for 2025 compared to operating expenses of $131.6 million in the prior year, which included the non-recurring reduction of $2.6 million I described before. Excluding this reduction and a non-recurring ATM offering cost write-off in Q3 2025, the increase would have been $9.9 million or 7%. This was primarily due to higher G&A costs offset by lower R&D costs. Research and development expenses were $36.5 million down from $39.4 million or 7% versus the year-ago quarter, primarily due to lower headcount and engineering expense. Sales and marketing expenses were $49.4 million up 1% versus the $49.1 million in the year-ago quarter. General and administrative expenses were $58.9 million versus the $43.1 million in the year-ago quarter, which included the $2.6 million reduction I mentioned before. Excluding this reduction and the non-recurring offering cost write-off, the increase would have been $12.5 million or 27%. The increase was primarily attributable to higher legal expenses related to the patent litigation case I mentioned before, higher compensation, sales and use tax, and software expenses. Loss from operations in 2025 was $40.4 million, which included a $0.7 million non-recurring deferred ATM facility offering costs write-off. This compares to a loss of $20.5 million in 2024, or $23.1 million, excluding the $2.6 million non-recurring expense reduction I described before. Excluding both these non-recurring items, the loss from operations increased by $16.6 million, which was due to $6.6 million lower gross profit and $9.9 million higher operating expenses. Gap net loss for the year ended December 31, 2025, was $66.5 million. This included the recording of a $33.1 million valuation allowance or write-off against preferred tax assets, as I've described before, in relation to Q4, due to the uncertainty of realizing the associated future tax benefits. As mentioned before, this was an unusually large amount due to the first-time nature of this allowance. The GAAP net loss also included the $0.7 million non-recurring offering cost write-off mentioned earlier. Excluding these items, GAAP net loss for 2025 would have been $32.7 million compared to a net loss of $6 million or 12.7 million excluding the 6.7 million non-recurring benefit from the settlement liability adjustment described before. Excluding these non-recurring items, gap net loss increased by 20 million in 2025. This was due to 6.6 million lower gross profit, 9.9 million higher operating expenses, and 3.3 million higher taxes, mainly on foreign earnings. Adjusted EBITDA was 5 million in 2025, which excludes the non-recurring items mentioned earlier, foreign exchange impacts, and stock-based compensation expense. This compared to 22.4 million in 2024. The decline of 17.4 million was primarily due to 6.6 million lower gross profit, $9.9 million higher operating expenses, and $2.3 million lower stock-based compensation. Adjusted EBITDA excluding investment income declined from $14.4 million in 2024 to a negative $3.1 million in 2025. Consistent with our historical focus on cost control and profitability, we are committed to improving these metrics going forward. Cash, cash equivalents and marketable securities totaled $261.5 million as of December 31, 2025. This represents a decrease of $16.4 million from the $277.9 million at the end of December 2024, in part reflecting the repurchase of $15.1 million of SITEC stock in our stock repurchase program during 2025. This 15.1 million, we purchased approximately 3.3 million shares at a weighted average cost of $4.58 per share, leaving us with 128.6 million shares outstanding as of December 31, 2025. Our strong balance sheet and positive cash generation underscore our ability to invest in our global growth initiatives. Turning to our full-year guidance on slide 10, we are initiating our 2026 revenue outlook at $205 million to $212 million, assuming constant currency exchange rates. We are also not assuming any significant benefit at this time from changes in the tariff environment going forward. This guidance range reflects the improved market environment in EMEA and the U.S. and continued strong growth in APAC instruments and in our service and reagent businesses globally. We expect these dynamics to continue. Importantly, we continue to believe our performance in Q4 and full year 2025 reflects a strong market leadership position in what has been a difficult environment. Our core business has now shown positive growth in all major regions, and our recurring revenue continues to grow. Notwithstanding some temporarily elevated operating expenses, we delivered positive adjusted EBITDA for full year 2025, which we anticipate will continue in 2026. As we've done previously, we believe we will continue to perform well relative to the overall flow cytometry market, which is also beginning to show signs of stabilization. With that, I will turn it back over to Wendy.

Thanks, Bill. Turning to slide 11, I want to close by thanking our fighter team.

This year, we were recognized as a public company growth leader in America by Tom McLean. This validation is a testament to CITES' outstanding record of growth and innovation over the last five years. Overall, I believe our fourth quarter and three-year performance during a challenging 2025 reflects the resilience of our organization and the strength of our leadership in the flow cytometry market. our broad-based execution positions as well for 2026, where our priorities remain focused on driving the market penetration of our instrument platforms, continuing to advance our technological leadership with innovative new products, driving the growth of our recurring revenue lines, and delivering profitable, sustainable growth.

I want to thank everyone for joining today's call, and we will now open it up for questions.

As a reminder, to ask a question, simply press star 1 on your telephone keypad. Again, that is star 1 to ask a question. And from , our first question comes from the line of Brendan Smith. Please go ahead.

Great. Thanks for taking the questions, guys. I appreciate all the color. I actually wanted to maybe ask a little bit higher level question, just about some of the underlying assumptions of the growth of the overall full site telemetry market. You guys gave a lot of good color on different end market breakdown. And I think we've seen, you know, something like 8% to 9% CAGR maybe up to 2031 or 32, if I'm not mistaken. But I guess irrespective of that exact number, do you have a sense kind of of given your global exposure there of relative end market breakdown of that growth? And I guess maybe better put, Do you have a consideration for expansion of the market that you think you'd be better positioned to capitalize on, especially given your strength in APAC? Just kind of wondering how you're thinking about that overall. Thanks, guys.

Yeah, I think – hi, Brendan.

This is Bill. I think, you know, we've seen consistent double-digit growth in the market in APAC, and or at least in our revenues in APAC, we may have done a little better than the market, particularly, you know, given our growth in Sorters and the Aurora franchise. So, but, you know, our sense is that there's a decent mid-single digits, mid-upper single digits growth in that market, in that region. We think that Europe has probably been the slowest market, certainly has been for us, and the U.S. falls somewhere in between. We recorded – we think we've done better than the market overall in the U.S., and in EMEA. Hard to really estimate what the market's doing in those regions. We've seen some negative growth by some of our competitors, but it's hard to extrapolate. Wenbin, do you have any other comments? No, I think that summarizes well. And look, I think we're in a The market growth rates that we've seen in the last couple of years have certainly been below most of the estimates that we, most of the market studies for five-year growth for flow cytometry call for growth rates that are in the high single digits and on a global basis. And we obviously have been temporarily below that for the last couple of years. But, you know, we

We expect it to rebound. Got it. Makes sense. Thanks, guys.

From Piper Sandler, our next question comes from the line of David Westenberg.

Please go ahead.

Hi. This is Sky on for Dave. Thanks for taking the question. Just to start off, what was the end of year growth acceleration? What was that driven by? Was it primarily academic budget cycles? are you seeing a recovery in pharma spending and how should we think about budgets for 2026?

Thanks.

We think that we saw, as I mentioned in my remarks, an improving environment across each of the quarters of 2025. So the first quarter was you know, not so great with minus 8% revenue growth. And then we saw a stabilization going back to minus 2 in Q2, plus 2 in Q3, and then plus 8 in Q4. And I think that was driven by a normalization, a combination of a normalization in the academic and government spending market. We saw some catch-up disbursements from the NIH and we think some catch-up spending that had been deferred from earlier in the year. So all those factors were at play. We also had a currency benefit in EMEA. So when we look, we put all that together and we think that the uncertainties that impacted the markets in the first part of 2025, particularly the first quarter, seem to have receded, and we're seeing improving particularly strong academic and government quarter in the fourth quarter, and we think as I said, there's a combination there of just a fundamentally improved sentiment and some catch-up. And we're expecting, we're assuming a continuation of that more positive environment in our guidance.

Yeah, globally, globally, academic and government sectors have done well in Q4.

Yeah, we saw 5% growth in academic and government for the full year and 9% in the second half. And that's across both our product and service businesses. So that second half, you know, growth is in academic and government is obviously pretty solid.

Very helpful. Thank you.

And just lastly, what was the mix in 2025 between new customer acquisitions versus existing customers maybe expanding their capacity?

And do you have any idea where you might see this mix for 2026? Thanks.

Yeah, we don't really break out those statistics. Just to say it's a combination of both. A lot of customers who have purchased multiple systems and continue to prefer our technology. Pharma companies, as we've indicated in the past, once they make a technology choice, they tend to stick with it. But then we're also seeing conversions from competitive systems.

from Stevens.

Our next question comes from the line of Mason Carrico. Please go ahead.

Hi, good afternoon. Thanks for taking the questions. This is Ben on for Mason. Are you thinking about maybe your commercial investments in 2026? Are you comfortable with the size of the sales teams today? And is there anywhere you're looking to invest in the next year?

Yeah, overall, as you can see, we have been focused on high-end of the market segment and represented by the products like Aurora Evo and Aurora Cell Soda, which grew double-digit last year and therefore. And now, on the commercial side, clearly, and we are reviewing the segment, we are clearly weak, and we are going to continue to invest in those segments to drive the future revenue growth.

We have also made investments in our reagent sales force as well, so the commercial side will continue to be an area of focus for investment.

Got it. Thank you. And then what's your willingness to be flexible on pricing this year to help drive instrument placements?

To cite it, pricing is always market driven, and our cost structure is very competitive, and we can deal with any situations as needed.

Got it. Thanks for taking the questions.

As a reminder, to ask a question, press star 1 on your telephone keypad. Our next question comes from the line of Andrew Cooper with Raymond James. Please go ahead.

Hey, everybody. Thanks for the time. Maybe just one, you know, there was a comment or a couple comments there about some pent-up demand helping fork you. Can you just give a sense for the magnitude of what you feel like was sort of make-up volume from maybe earlier in the year or the last few years versus what you view as sort of that steady-state growth trajectory of the business as you think about where it sits today in the current end market?

Yeah, that's a hard one to estimate. You know, I think if you look at our total academic and government revenues, which are publicly disclosed, starting with fourth quarter of last year, we were 21 million, then 17, 22, 18, and then 28 in Q4. So, you know, we had a significant jump there. As I said, a lot of that is attributable to a better environment. But, you know, it's also possible that some of those weaker numbers in early 2025 were in fact just deferments of money that got spent later in the year. It's really possible to sort of pause it out, you'd have to, you have to do a customer by customer survey and dive into what their intentions were. And obviously, we don't do that. I think farmer segment is much more stable. And, you know, there, we had pretty stable Q3 and Q4 was basically the same.

Sure. Helpful. Maybe just thinking about the guide a little bit and trying to put it in context with some of that commentary. You just did sort of five-ish percent organic. You talk about the market feeling like it's getting a little bit better, a little bit more stable, and you guided the two to five percent growth for the year. Sure. What happens in the end market to make you feel like 2% is the right number as opposed to 5? And what happens to get you, you know, above that if we're already assuming that things are maybe a little bit better through most of 26 than they were through most of 25?

Yeah, so the way we thought about the guide was we expect continuation of The strong growth in service and reagents have a cushion to account for those sorts of things. So that was the thinking that went into the range. You know, at the high end of the range, obviously that would represent a smaller level of contingency and, you know, better performance in the instrument business.

Okay, I'll stop there. Thank you.

And with no further questions in queue, this does conclude our conference call for today. You may now disconnect.