CryoPort, Inc.

Good afternoon and welcome to CryoPort's first quarter 2026 earnings conference call. All participants will start in the listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. As a reminder, this call is being recorded. And I will now turn the call over to your host, Todd Frommer from KCSA Strategic Communications. Please go ahead.

Thank you, operator. Before we begin today, I would like to remind everyone that this conference call contains certain forward-looking statements. All statements that address our operating performance, events, or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management team. Our management team believes that these forward-looking statements are reasonable as and when made. However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events, and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include but are not limited to those described in item 1A risk factors, and elsewhere in our annual report on Form 10-K to be filed with the Securities and Exchange Commission and those described from time to time in the other reports which we file with the Securities and Exchange Commission. As a reminder, CryoPort has uploaded their first quarter 2026 in-review document to the main page of the CryoPort, Inc. website. This document provides a review of CryoPort's financial and operational performance and a general business outlook. Before I turn the call over to Jerry, please note that because of the strategic partnership that has been established with DHL Group and the related sale of Cryo PDP to DHL in June 2025, Cryo PDP's financials, which were previously a part of Cryoport's life sciences services reportable segment, are now presented as discontinued operations. Please note that unless otherwise indicated, all revenue figures discussed today will refer to continuing operations. This includes CryoPort's fiscal year 2026 revenue guidance. It is now my pleasure to turn the call over to Mr. Gerald Shelton, Chief Executive Officer of CryoPort. Jerry, the floor is yours.

Thank you, Todd, and good afternoon, ladies and gentlemen. With me today is our Chief Financial Officer, Robert Stavanovich, our Chief Scientific Officer, Dr. Mark Sawicki, and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen. Our first quarter results continue to demonstrate our market leading position as revenue was forty seven point eight million dollars up sixteen percent year over year, which puts us off to a very strong start for the year. This growth is a combination of our momentum over the past several quarters across our integrated services and products platform. Revenue in support of our commercial cell and gene therapy grew 26% to $9.1 million, while revenue from clinical trials grew 18% to $12.9 million. We continue to support one of the industry's broadest cell and gene therapy pipelines, and our leadership across both commercial and clinical programs positions us well for future sustainable growth. As of March 31st, we supported a record total of 766 global clinical trials, a net increase of 55 clinical trials over the prior year, with 91 of these clinical trials in Phase 3. From this market-leading base, we believe we will continue to drive robust growth in our commercial revenue in both the near and the longer term. During the first quarter, I'm happy to report that our client, Rocket Pharmaceutical, received an accelerated approval from the FDA for their gene therapy, Chris Lottie. With this approval, the number of commercial therapies we are supporting has increased to 21. For the remainder of twenty, twenty six, based on current information, we expect another ten or application filings and up to eight additional new therapy approvals. Our life sciences services segment. Delivered a strong quarter with revenue, increasing 18% year over year, including 21% growth and bio storage services. This performance reflects increasing adaptation of our full service portfolio in conjunction with the increasing scope and complexity of the cell therapy programs. We support. It also underscores the critical role we play in supporting our clients with our extensive array of integrated temperature control supply chain services and solutions. Our Life Sciences product segment also performed well, generating a 15% revenue growth driven by global demand for MVE Biological Solutions cryogenic systems. For over 60 years, MVE has provided high-quality, reliable cryogenic systems to the market, And every day, it continues to further reinforce his position as the global leader. For example, during the first quarter, MVE introduced its new Fusion 800 series, which is a self-sustaining cryogenic freezer that eliminates the need for a continuous liquid nitrogen supply feed, delivering exceptional reliability, safety, and sustainability in a compact footprint designed for space-constrained environments where a source of liquid nitrogen is not readily available. This is quite an accomplished engineering feat, which will pay dividends for years to come as we open up new markets that were heretofore inaccessible. Growth across both our reporting segments, life sciences services and life sciences products, combined with a solid gross margins and continued operational discipline drove a two point two million dollar year over year improvement in adjusted evita from continuing operations advancing us meaningfully along our pathway to profitability We also reached a milestone moment during the first quarter as our IntegraCell team shipped its first cryopreserved clinical trial patient materials from both our Houston, Texas, and Liège, Belgium facilities for two separate clients. This achievement highlights IntegraCell's progress as it continues to develop and moves us a step further toward being a meaningful contributor to the cell and gene therapy industry and the cryoport's future revenue and profitability. In parallel, we continue to advance our digital and information strategy, including initiatives in digitization and generative AI to support complex internal workflows and improving our effectiveness and efficiency in day-to-day operations. Our focus is currently on enabling employees to use secure, enterprise-approved generative AI tools to automate repetitive tasks, analyze data in real time, manage risk, and accelerate decision making and execution. We are already seeing tangible benefits and believe AI will play an increasingly important role in our future. Reflecting on our strong performance for the first quarter and our increased visibility into the remainder of the year, we're raising our full year 2026 revenue guidance to $192 million to $196 million. We continue to review our guidance on a quarterly basis, and we will make any further adjustments as warranted. We also believe that based on our progress year-to-date, we will achieve positive adjusted EBITDA in the second half of this year. This concludes my remarks for today. Now I'll ask the operator to open the floor for your questions.