Repligen Corporation

Ladies and gentlemen, thank you for standing by. My name is Jericho and I'll be your conference operator today. At this time, I would like to welcome everyone to the RepliGen fourth quarter 2025 earnings call. All lines has been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. I would now like to turn the conference over to Jacob Johnson, Vice President, Investor Relations. You may begin.

Thank you, Operator, and welcome, everyone, to our 2025 fourth quarter report. On this call, we will cover business highlights and financial performance for the three and 12-month periods ended December 31, 2025, and we'll provide financial guidance for the full year 2026. Joining us on the call today are Reflegens President and Chief Executive Officer Olivier Leuillot 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 risk and uncertainties that may cause actual events or results to differ. Additional information concerning risk related to our business is included in our quarterly reports on Form 10Q, our annual report on Form 10K, and our current reports, including the Form 8K 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 margin. These adjusted financial measures should not be viewed as an alternative to GAAP 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 fourth quarter call. We had a great finish to 2025 with $198 million of fourth quarter revenue, which translated to 14% organic growth in the quarter and $738 million of revenue for the full year. As a result, we exceeded the high hand of our October guidance for both revenue and adjusted operating income. We were thrilled to return to robust growth in 2025 with 16% growth on both a reported and organic non-COVID basis and fully organic growth of 14% exceeded the high hand of our initial 2025 guidance. Once again, the diversity of our portfolio was on display in the fourth quarter as proteins and process analytics both grew over 30% with chromatography not far behind, with more than 25% growth. The same was true for the full year, as protein grew greater than 30%, while analytics grew 37% on a reported basis, or 21% excluding M&A. This highlights our team's strong execution on the growth opportunities that exist across our portfolio. Filtration grew high single digits for the quarter and the year. Consumables drove the growth in the quarter with over 20% growth. Capital equipment was essentially flat year over year due to a tax comparison, but of 10% versus the prior quarter as we saw capital equipment revenue grow sequentially throughout the year. Capital equipment benefited from downstream analytics demand. Outside of a couple of specific growth drivers, we saw relatively muted demand for equipment. In terms of end markets, biopharma laid the weight and revenue growth was strong across all geographies. While we are no longer providing detailed order commentary, the strong order trend we saw throughout 2025 continued in the fourth quarter. In short, we had a great year with momentum across the portfolio allowing us to significantly outpace market growth in 2025. As we turn the page to 2026, we're excited about the product portfolio we have, the team we've built, and the strategy we're executing. We recently held our global commercial meeting, and after spending time with the team, it's clear we've built a world-class organization, and the team is highly energized. Our initial 2026 guidance called for 810 to 840 million of revenue or 9 to 13% organic revenue growth. This includes a two-point headwind from a gene therapy platform. Jason will provide more details on our 2026 guidance, but I wanted to share a few high-level thoughts. There are a number of signs that macro backdrop is strengthening including improved biotech funding, M&A activity, and more positive pharma sentiment. After a recovery year in 2025, the current environment is more balanced, though it remains early for some of these tailwinds. As a result, we believe our guidance is prudent, with the low end appropriately balancing some near-term uncertainty around FDA policy and biopharma's strategic response to MFN while the high hand assumes we are able to convert certain funnel opportunities in 2026. Our team is focused on executing opportunities that will arise as the year plays out. At the midpoint, our guidance calls for 150 basis points of operating margin expansion in 2026. As we highlighted earlier this year, we are committed to margin expansion while balancing the investments required to support future growth. We expect operating leverage in 2026 with a growing contribution in coming years. Unpacking our performance by end market. Fourth quarter biopharma revenue grew over 20% year-over-year, driven by growth from both pharma and emerging biotech. Revenue from emerging biotech customers grew for the third quarter in a row. Activity from this customer base remains below historical levels, So we believe it's too soon to call this a trend. CDMO fourth quarter revenue grew low single digits year over year due to a tax comparison as we were lapping greater than 14% growth in the prior year. Notably, we saw strong growth from our tier two CDMO customers. From a geographic point of view, we saw strength across all regions led by Europe. New modality revenues were consistent with our expectation for a muted back half. For the year, new modalities grew low single digits or high single digits when excluding the impact from a gene therapy customer. We saw strength in cell therapy, while mRNA demand was a headwind. Turning to strategy, in 2025, we delivered on all five strategic priorities we outlined at the beginning of the year. First, we accelerated growth with a transformed customer experience. As I mentioned earlier, we delivered 16% growth in 2025. This was driven by momentum across our portfolio, customer base, and geographies, and a testament to our commercial strategy. We continue to capitalize on our broad portfolio with our key accounts team, which is focused on approximately 20 large pharma and CDMO customers with the objective of further penetrating these accounts by increasing both the number of product lines they purchase and their overall volume. As we highlighted earlier this year, we are now selling 2.5 times as many product lines to these customers versus 2019. In addition, our commercial team is incentivized to cross-sell our entire portfolio. We continue to see a long runway for key account penetration and cross-selling opportunities. In 2025, we made notable progress on our Asia Pacific strategy. We will continue to invest in 2026, even the growth opportunities in this region. Finally, we would highlight our investment in services which was a credit to growth in 2025, and our guidance assumes it will be again in 2026. We have a high attachment rate for services in our analytics franchise and are working to replicate this success across the rest of our capital equipment portfolio. As Jason will discuss in more detail, in 2025, we balance margin expansion with critical investment in the business. we expanded adjusted operating margin by 90 basis points to 13.8%. Excluding M&A and foreign currency, we expanded operating margins by 240 basis points. In 2025, we made important investment, including legal, finance, and IT leadership, along with AI and infrastructure investments. These are critical to ensure we have a scalable foundation to support the growth we see in coming years. Third, we had an active year of new product launches in 2025 across our franchises. In analytics, we launched our Solo VPE Plus, the next generation of our Solo VPE with increased accuracy and faster readout time. We saw traction with the Solo VPE Plus in 2025 as we benefited from the first wave of upgrades. We believe this upgrade cycle represents a multi-year opportunity. In filtration, we launched our new Proconnex Mix One single-use mixer. We began demos in 2025 and expect to deliver our first placements in 2026. In proteins, we developed and launched a variety of new resins, including three new catalog resins in December for the new modality market. We also saw traction with custom regions developed for specific key accounts. In 2026, innovation remained the top priority. Fourth, we executed on our M&A roadmap. In March, we acquired 908 devices bioprocessing portfolio, which is now part of our recently rebranded PAT Smart portfolio. In 2025, we cross-trained and merged our upstream and downstream analytic teams. This has resulted in a growing funnel of opportunities. We also made progress on our integration of TAN-T. Finally, in July, we announced a strategic partnership with Novasign to develop and integrate their machine learning and modeling workflow into rapid-gen filtration systems. As part of the partnership, we also made an investment in Novasign to help scale and expand their operations. This furthered our digitization efforts and highlights that minority investments are another good investment avenue within our broader capital allocation strategy. In 2026, M&A remains our top priority for capital allocation, and our acquisition criteria are unchanged. First, we are looking for differentiated technologies that address key customer pain points across the bioprocessing workflow and their pipeline of modalities. And second, it must make financial sense from a return and accretion perspective. We have an active pipeline and a healthy balance sheet. As a result, we aspire to add new capabilities to our portfolio in 2026. We remain focused on integrating 908, leveraging our high performing analytic team. Finally, In 2025, we made considerable progress on our efforts to become more fit for growth and ensure we have the right foundation in place as we look to scale the business in coming years. We made critical leadership hires across the organization. In addition, we made significant investment in our business systems to ensure we have the right tools and processes to scale the business. This included initial AI investment across our legal and supply chain functions. Looking ahead, we will continue to deepen our bench and make system investments in IT modernization, financial planning, and lifecycle product management. Before I turn the call over to Jason, I'll provide some more detail on our franchise-level performance. Starting with filtration. As a reminder, this is our largest and most diverse franchise. Filtration revenue grew high single digits in the quarter, driven by fluid management and ACF consumables. For the year, filtration revenues grew 8% or 11% non-COVID. This was a bit below our expectations due to the timing of fluid management revenue and the muted demand environment for downstream systems. We continue to work to optimize fluid management manufacturing and the margin of this product line. Freed management was still a strong contributor to growth in 2025, while ACF was also a credit to filtration growth after a remarkable year in 2024, when it was up more than 50%. Looking ahead, we see filtration returning to low double-digit growth in 2026, with cracks across our broad portfolio, offset by the headwind from a gene therapy platform. Chromatography capped off a strong year with greater than 25% growth in the fourth quarter and 25% growth for the full year. Opus large-scale columns were the main driver of growth for both the quarter and year as we want several new pharma customers. Even this momentum and recent new customer wins, we see double-digit growth in column revenue in 2026, offset by lower procured resin mix. This results in chromatography revenues growing low double digits in 2026. Proteins were again the highlight of the quarter with greater than 30% growth and 31% growth for the year, coming in well ahead of our prior expectation for 15 to 20% growth. The growth in 2025 was broad-based across ligands, growth factors, and custom ratings. This was a very strong rebound as we have nearly recovered all of the 2024 revenue decline from the demand of two of our OEM businesses, having reached their minimalist levels. This is a testimony to the strategy we are implementing, leveraging both partnerships and for our acquisitions to create innovative solutions for customers. During the quarter, we launched three new ABPO ratings for the new modality market. without your local bid technology and advertised expertise, we can quickly develop new products, helping address customer specific pain points. In 2026, we see protein strength continuing with low double digit growth as we expect to see the benefit from the seed we've planted in recent years. Analytics close a record year with 30% plus growth in the fourth quarter and 37% growth for the full year or 21% excluding the impact from the 908 bioprocessing acquisition. We had traction with our solo BPA Plus in 2025, and we believe this upgrade cycle will continue to play out over the next several years. Looking ahead, we see analytics growing greater than 20% in 2026, as we continue to see a robust growth from our downstream analytics portfolio, including solo VPA+, and growing contributions from our recently acquired upstream analytics portfolio. That concludes my commentary on our franchises. As we transition to 2026, our strategic priorities remain, number one, outpacing bioprocessing industry growth, number two, driving operating leverage on top of gross margin expansion. Number three, continuing to innovate and launching new products. Number four, integrating recent acquisition and pursuing additional M&A. And finally, number five, becoming more fit for growth with a focus on IT modernization and strategic transformation initiatives. In closing, Our fourth quarter capped off a great year where we delivered both market growth and expanded margin while investing in our business and executed on all strategic priorities. In 2026 and beyond, our goal is to do the same. Now, I'll turn the call over to Jayden for the financial highlights.