Repligen Corporation

the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you'd like to withdraw your question, again, press the star and one. I would now like to turn the call over to Jacob Johnson, VP of Investor Relations. You may begin.

Thank you, Operator, and welcome everyone to our 2025 third quarter report. On this call, we will cover business highlights and financial performance for the three-month period ended September 30th, 2025. And we'll provide financial guidance for the full year, 2025. Joining us on the call today are Rappelgen's President and Chief Executive Officer, Olivier Liu, and our Chief Financial Officer, Jason Garland. As a reminder, the forward-looking statements that we make during this call, including those regarding our business goals and expectations for the financial performance of the company, are subject to risks and uncertainties that may cause actual events or results to differ. Additional information concerning risks related to our business is included in our quarterly reports on Form 10-Q, our annual report on Form 10-K for the fiscal year ended December 31st, 2024, and our current reports, including the Form 8-K that we are filing today, and other filings that we make with the Securities and Exchange Commission. Today's comments reflect management's current views which could change as a result of new information, future events, or otherwise. The company does not oblige or commit itself to update forward-looking statements, except as required by law. During this call, we are providing non-GAAP financial results and guidance, unless otherwise noted. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this morning, which is posted to Repligen's website and on SEC.gov. Adjusted non-GAAP figures in today's report include the following, non-COVID and organic revenue and or revenue growth, cost of goods sold, gross profit and gross margin, operating expenses, including R&D and SG&A, income from operations and operating margin, tax rate on pre-tax income, net income, diluted earnings per share, EBITDA, adjusted EBITDA, and adjusted EBITDA margins. These adjusted financial measures should not be viewed as an alternative to gap measures, but are intended to best reflect the performance of our ongoing operations. With that, I'll turn the call over to Olivier. Thank you, Jacob.

Good morning, everyone, and welcome to our 2025 third quarter call. We had another outstanding quarter in quarter three with 18% organic growth. This quarter, every franchise grew double digits, which is a testament to our differentiated broad portfolio, and diversified customer base. Our portfolio of products enables us to sell one of the most comprehensive suite of innovative solutions across the bioprocessing workflow. We saw strengths across our extensive customer base as both biopharma and CDMOs grew over 20% and all geographies grew double digits. The continued growth from CDMOs is very encouraging as it reflects the health of the ecosystem. From a franchise perspective, analytics led the way with over 50% growth, including more than 30% growth at CTEK, while filtration grew over 20%. Consumable demand remains very robust with greater than 20% growth in the quarter, while capital equipment had another strong quarter with over 20% growth. The better-than-expected performance in analytics and proteins this quarter underscores that growth opportunities exist across our entire portfolio, driven by our innovation engine. In particular, analytics revenue growth was aided by the launch of Solo VPE Plus earlier this year. This new generation of at-line protein concentration analytics offers customers increased data collection speed and enhanced sensitivity and reproducibility with a streamlined workflow. This has started to drive an upgrade cycle that will last for several years as we have a sizeable install base. Transitioning to orders, total company orders grew sequentially for the sixth straight quarter and grew over 20% year-over-year including double-digit order growth across all of our franchises. With customer ordering patterns back to historical trends, we believe quarterly orders are a less relevant metric and plan to provide less detail around orders going forward. We will remain transparent around the trends we are seeing in our business and within the industry, as we have always been. We think our Q3 results highlight the broad strengths we are seeing across our franchises customers, and geographies, and our 18% organic growth continues to outpace industry growth. In fact, this marks the fourth straight quarter of 14% or better organic non-COVID growth. Both our Q3 and year-to-date overall performance was not based on a single customer or product line, but rather the totality of our portfolio. We think this is a testament to our commercial execution as our team capitalizes on the growth strategies for each of our franchises. As a result, we are again raising the midpoint of our organic growth guidance for 2025. Unpacking our performance by end market, Q3 2025 biopharma revenues grew over 20% year-over-year with broad growth across all biopharma customers. Emerging biotech revenue was at the highest level in nearly three years. While we are hesitant to call this a trend, as growth benefited from some specific opportunities in the quarter, we are encouraged by the recent funding trends we have seen. CDMO revenues also grew over 20% driven by outperformance from our larger CDMO customers in the quarter. From a geographical point of view, we saw particular strength in Asia Pacific with approximately 50% growth while the Americas grew 20% and EMEA was up low double digit. New modalities revenue were consistent with our expectation for a muted back half. We saw growth in cell therapy while AAV and mRNA trends were fairly consistent with last quarter. Turning to strategy, We mentioned last quarter that digitization is a key pillar of our strategic plan. Our analytics franchise is the foundation of this strategy, so we wanted to expand on this effort and provide more detail on the very strong performance in Q3. Digitization will be a multi-step and a multi-year journey. Currently, we enable measurements of protein concentration in downstream processes using our innovative solution from C-Technologies, then glucose, lactate, and biomass upstream with the acquisition of the 908 bioprocessing assets. With a successful inline integration of CTEX flow VPX into our downstream TFS systems, we can provide real-time monitoring and process control. These are key enablers of continuous manufacturing which is still in its early days, particularly in downstream applications. We're actively working to develop additional PAT-enabled solutions. Beyond this, we are looking at opportunities to leverage digital twins to utilize this real-time process data with advanced modeling to optimize process development and manufacturing. As a step in this direction, We announced a partnership with NovaSign during the third quarter to integrate our system with NovaSign's digital twin capability, starting with our bench-scale TFF. We aim to deliver solutions that significantly reduce process development time and cost and support a more efficient and reliable scale-up for our customers. We also saw strong growth in overall service revenue in quarter three. Services currently represent 5% of our consolidated revenue. We have a particularly high attachment rate in analytics, so we benefit from both new installations and annual maintenance. Commercially, a strong service organization allows us to best serve and delight our customers while bringing us to be closer to them. There is a sizable opportunity for us to grow this business in coming years, as we expand our services offerings across our entire capital equipment portfolio. Our strategic account strategy initiative, launched three years ago, is a real success story. We are now covering 20 large pharma and CDMO accounts. The focus of our Clear Accounts team is to engage with key decision makers that are our customers to better understand their needs while demonstrating the breadth of our capabilities. We're seeing great traction here with more of these customers buying multiple products from Repligen, and as a result, many of these strategic accounts are creative to our goals. In addition to our strategic account strategy, our commercial team is also incentivized to cross-sell products across the entire portfolio. As it pertains to tariffs, we continue to evaluate opportunities to better leverage our global footprint. We are working towards dual manufacturing for the vast majority of our portfolio by the end of next year. This includes a focus on ensuring we have the right footprint to benefit from capital equipment opportunities in coming years, including potential U.S. insuring projects. Before I turn the call over to Jason, I'll provide some more detail on our franchise-level performance. Filtration revenue grew over 20% in the quarter. Flat sheet cassettes. fluid management, flow paths, along with ATS, all contributed meaningfully to growth this quarter. We continue to see a long runway of growth in ATS, but we think it's important to highlight that multiple products have been key drivers of year-to-date filtration growth. This highlights the breadth of our filtration franchise, which is our largest and most diverse. In addition, we have a strong backlog for fluid management, so we continue to expect robust growth from this product line in coming quarters. After record Q2, chromatography revenue grew mid-teens in Q3 as resin mix returned to more normal levels. This was mostly driven by continued strength in large column demand from key CDMOs and pharma accounts globally. Protein revenue grew low double digits in Q3 driven by chromatography raising. This franchise outperformed our expectation in the quarter and is an area where we are making additional investments to drive future growth. We have several innovative solutions for the new modality market with our heavy-type tonki assets and for the monoclonal and seabody markets by our protein and ligand capabilities. We plan to launch additional innovative solutions across this portfolio in coming years. While it will take some time for these opportunities to grow into more meaningful revenues, we think the investment we are making today will position us well for growth in this higher margin franchise for years to come. Finally, and as already mentioned, Process Analytics had a standout Q3 with more than 50% growth, including $3 million of revenue from the 908 bioprocessing acquisition and over 30% growth at CTEK. This was driven by strength across consumables, equipment, and services. With strong orders in the quarter, we are encouraged by the momentum in our analytics franchise. As it relates to the 908 bioprocessing assets, we remain on plan with the integration. To wrap up, while the last several years have been a unique period for the bioprocessing market, we believe the dynamics of this year have created additional opportunities for ReplicJet. Customers are looking for products that enable them to improve yield and productivity. Our product portfolio and customers on Free City have opened a number of doors in recent years, and we believe the results we are seeing this year are a testament to our strategy. We remain focused on capitalizing on our growing funnel. Given the opportunities we see across our portfolio, we will continue to invest as needed to ensure we have the right foundation to support sustainable future growth. This includes planning investment in application labs to better serve our customers with differentiated solutions, investments in technology to increase productivity, and investment across our business to ensure we have robust processes and tools to continue to delight customers and scale our growing business. We'll balance these initiatives with a commitment to driving margin expansion over the medium term. We're excited about the customer traction across our business as highlighted by our year-to-date performance, which demonstrates the differentiated nature of RepliJet. It also reflects the execution on the five strategic priorities we outline at the beginning of the year. we remain focused on closing out a very strong 2025. Now, I turn the call over to Jayden for the financial highlights.