Harvard Bioscience, Inc.

Good day and welcome to the fourth quarter and full year 2025 Harvard Bioscience Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be a question and answer session. Instructions will be given at that time. Please note this event is being recorded. I would like to turn the conference over to Taylor Krafcik, Senior Vice President at Ellipsis TA. Please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining the Harvard Bioscience fourth quarter and full year 2025 earnings conference call. Leading the call today will be John Duke, President and Chief Executive Officer, and Mark Frost, Chief Financial Officer. In conjunction with today's call, we've provided a presentation that will be referenced during our remarks that is posted to the investor relations section of our website at investor.harvardbioscience.com. Please note that statements made in today's discussion that are not historical facts, including statements on management, Expectations of future events or future financial performance are forward-looking statements and are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the current views of Harvard Bioscience Management, and Harvard Bioscience assumes no obligation to update or revise any forward-looking statements. Actual results may differ materially from those expressed or implied. Please refer to today's press release, the Harvard Bioscience Form 10-K, which we expect will be filed. within 24 hours of this call, and other filings with the Securities Exchange Commission for additional disclosures on forward-looking statements and the risks, uncertainties, and contingencies associated therewith. During the call, management will also reference certain non-GAAP financial measures, which can be useful in evaluating the company's operations related to our financial condition and results. These non-GAAP measures are intended to supplement GAAP financial information and should not be considered a substitute. Reconciliations of gap to non-gap measures are provided in today's earnings press release. I will now turn the call over to John. John, please go ahead.

Thanks, Taylor, and good morning, everyone. Thank you for joining us for our fourth quarter and full year 2025 earnings call. On today's call, I'll review our recent actions, provide a brief overview of our fourth quarter financial results, and then discuss our priorities and outlook for 2026. 2025 was a pivotal year of foundation building. Over the past eight months, we improved our financial flexibility, took action to reorganize operations, and clarified our long-term strategic direction. To recap, we took several key actions to improve the health of the business. In December, we completed our comprehensive refinancing. This transaction extended our debt maturity to 2029, reduced annual debt service to $5 million, generating $3 million in annual cash savings and strengthened liquidity and financial flexibility. Shortly thereafter, we announced a strategic consolidation of our manufacturing footprint with the phase closure of the Holliston facility and consolidation into Minneapolis and European Centers of Excellence. This is expected to generate $3 million in savings in 2027 and $4 million of savings thereafter. Since June, we have strengthened our governance by appointing four new board members, and we are in the process of establishing a product and scientific advisory board of experienced industry leaders. We also further solidified our executive leadership as we officially named Mark Frost as Chief Financial Officer. As many of you know, Mark is an experienced CFO and has held that role with several public companies. While we have more work to do, These actions are structural improvements that simplify our operating model and provide the foundation required to scale our business. All of these actions were driven to drive improved financial results, which is what we saw in the fourth quarter. Revenue of $23.7 million was above the midpoint of our guidance range. Gross margin of 60% at the high end of guidance. and adjusted EBITDA of $3.8 million, reflecting 27% year-over-year growth. The drivers of this performance were favorable mixed shift toward higher margin product lines, benefits from cost reductions, disciplined expense management, and sharpened operational execution. We exited the year a leaner and more focused organization with a fortified balance sheet and a clear path to drive sustainable growth. Since I joined as CEO, I've spent considerable time engaging with customers, partners, and employees. What became clear is the life science industry is undergoing a fundamental shift. Drug development remains inefficient. Nearly 90% of candidates that succeed in animal models ultimately fail in human trials. Researchers, regulators, and biopharma companies are increasingly embracing new approach methodologies, or NAMs, to improve translational relevance. Harvard Bioscience is uniquely positioned to bridge this gap. We're evolving from a traditional life science tools provider into a leading enabler of translational science, connecting in vivo and in vitro research, and helping customers generate more predictive, human-relevant data earlier in the development cycle. This represents an evolution for a company's products into the $10 billion translational science market. To capitalize on this opportunity, we are focused on executing against our four priorities. First, leading the translational science bridge. We are strengthening our position at the intersection of preclinical and organoid-based research. Our gold standard telemetry capabilities provide a natural extension into organoids and 3D biology platforms. Second, accelerating high margin innovation. Our new product innovation or NPI pipeline is centered on scalable, differentiated platforms, such as Soho Telemetry, BTX for Bioproduction, MeshMEA, and Incubate. These platforms modernize preclinical and translational workflows and reinforce their evolution into a platform-based technology provider. Third, expanding consumables and recurring revenue. Today, approximately 55% of revenue is recurring. We are intentionally prioritizing higher margin consumables, service, and software to improve revenue visibility, increase gross margins, and create a more durable and predictable business model. This mixed shift is already contributing to margin expansion as evidenced by our Q4 performance and our outlook for 2026. And fourth, operational excellence and disciplined growth. Finally, we remain laser-focused on cost discipline and operational efficiency. Manufacturing consolidation and refinancing enable us to improve profitability, fund innovation, and continue deleveraging over time. Looking ahead, we're introducing full-year guidance for 2026 that forecasts low single-digit growth in revenue and high single-digit growth in adjusted EBITDA, which will be driven by higher margin MPI growth as we focus on the translational science market. We continue to monitor NIH funding timing and global macro conditions. We believe our cost structure and diversified geographic footprint put us in a position to manage volatility. 2025 was a strategic reset, and 2026 will be a year of top and bottom line growth. With a technically deep global team, a refreshed board, improved financial flexibility, and a focused translational science strategy, Harvard Bioscience is well positioned to create long-term shareholder value. I want to thank our employees for their dedication, our customers for their trust, and our shareholders for their continued support. With that, I'll turn the call over to Mark to review the financial results and outlook in more detail.