Repligen Corporation

Hello, everyone. Thank you for joining us and welcome to the Repligen Q2 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, please press star one again. I would now like to turn the call over to your host for today's call, Jacob Johnson, Vice President of Investor Relations for Repligen.

Thank you, Operator, and welcome everyone to our 2026 Second Quarter Report. On this call, we will cover business highlights and financial performance for the three-month period ended June 30th, 2026, and we'll provide financial guidance for the full year 2026. Joining us on the call today are Repligen's President and Chief Executive Officer, Olivier Loeillot, 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. along with our earnings supplemental which is posted to Repligen's website. Adjusted non-GAAP figures in today's report include the following, 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, other income or expense, 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 2026 second quarter call. Once again, we delivered excellent results in the second quarter. our team executed at a high level, driving 12% reported growth, which translated to 13% organic growth and 460 basis points of adjusted operating margin expansion. Reflecting on our strong first half results and with our increased conviction in the full year outlook, we are raising our organic revenue growth and adjusted EPS guidance. At the midpoint, This represents a full 1% increase to our organic growth expectations and $0.05 to adjusted EPS. In addition to our excellent first half results, we see several reasons for our increased confidence in our end markets and revenue outlook. First, the positive order momentum that emerged late in the first quarter carried into the second quarter, including an improvement in ATF order trends. Second, while capital equipment revenue remains muted, we saw a sequential step up in orders and won another important RFP. Year over year, our funnel remains very healthy and we're increasingly convinced the capital equipment tap will open further in the not too distant future. And finally, emerging biotech grew high teams even against a high comparison a clear sign this customer base is recovering in a sustainable manner and we are seeing the translation of an improving funding environment. In the second quarter, we delivered 204 million of revenue driven by healthy recurring revenue growth across our broad portfolio. Proteins led the way with an impressive 50% growth while analytics demand remained extremely strong with 30% plus growth in the quarter. Consumables including proteins grew high teams while services grew over 20%. Capital equipment revenue was stable between Q1 and Q2 and we saw a significant sequential pickup in orders though revenues declined slightly year over year. Still, Our capital equipment revenue grew high single digits in the first half. Across geographies, APAC led the way with approximately 40% revenue growth, while North America was also strong in the high teens. The growth in APAC highlights the fact our reinvigorated strategy continues to create opportunities across the region, and we are pleased to see strong growth from both biopharma and CDMOs in the region. Our strong first half margin expansion continues to reflect our disciplined operational execution. We continue to be balanced in investing for future growth while managing costs and driving real operational efficiencies in our manufacturing operations. As a result, we remain on track to achieving our target for 30% adjusted EBITDA margin by 2030. In short, Our base business remains very strong as highlighted by 13% organic growth in the second quarter. Our second quarter growth was in part driven by the multiple new product innovation we launched in analytics and proteins in recent years. This is enabling us to outpace market growth. The definitive agreement to acquire BioLife adds an exciting new growth vectors. This financially accretive acquisition fast-tracked our self-therapy strategy. I will provide additional thoughts around our strategic effort shortly, but first, some more details on the quarter. Looking at our performance by end market, CDMO growth remains strong. Biopharma revenue was essentially flat, with strength in North America and Asia, which both grew at least 18%, offset by a difficult prior year comparison in Europe. OEM and integrators were accretive to growth, driven by strength in fluid management and proteins. As mentioned earlier, emerging biotech revenues grew high teams, which is important as we are now lapping our return to growth last year. We remain encouraged by growth from this customer base and are optimistic we will see a continued recovery given funding trends remain robust. New modalities grew 9% excluding the impact of a certain gene therapy headwind. Importantly, this was the best quarter since the first quarter of 2025 and we saw strong sequential increase across all modalities. We continue to see growth in cell therapy and also in gene therapy when excluding that specific headwind. Moving to our strategy update, we recently completed our annual strategic planning process. Looking back on our 2025 strat plan, we made great progress on our strategic initiatives, including but not limited to launching multiple innovating products, adding great talent to our team, and expanding our margin. Our recently launched transformation office is positioned to start delivering promising business improvements. This year's plan focuses on refining our same long-term goals, including outpacing market growth, advancing our digital and services capabilities, and accelerating growth in Asia Pacific. We would highlight three areas of heightened focus in this year's track plan. First, we recently launched our integrated solution strategy. We believe now is the right time to launch this initiative given the upcoming on-shoring opportunities. This team will focus on cross-selling our entire A to Z offering under a formal integrated solutions team. While our key accounts team has focused on selling our full suite of solutions, our integrated solution initiative will further these proactive efforts to increase speed and professionalism while also engaging more directly with engineering firms. We will initially focus our efforts on ADCs and other new modalities. In particular, with the upcoming acquisition of BioLife, we'll expand the scope of solutions we can offer to the cell therapy market. Second, our team is increasing its focus on product lifecycle management. This effort works to continuously innovate our product portfolio to best address customer needs while ensuring the transition to upgraded solutions is a frictionless process. We've seen sizable benefit from this initiative with our solo VPA plus upgrade cycle, and we intend to run a similar playbook elsewhere in our portfolio. Third, the definitive agreement to acquire BioLife based on our strong momentum and commitment to use compelling M&A to drive a creative growth, double down in high growth markets, and create more robust customer solutions. BioLife has tracked our cell therapy leadership by adding a differentiated portfolio of products, serving this rapidly growing end market. Following last week's announcements, we received some questions about our interest and view of the cell therapy market. From our analysis of the biologic landscape, it's clear that cell therapy represents a meaningful portion of our customer's focus and investment, with this modality representing nearly a quarter of their clinical pipelines. In our extensive due diligence, we spent time with third-party advisors evaluating the opportunities and risk of this end market. The analysis increased our conviction in the long-term growth of this industry while helping us to gain comfort around potential risks like further development of in vivo therapies. A recent white paper from the Alliance for Regenerative Medicine showcased a 170% increase in U.S. treatment centers and a 740% increase in cell and gene therapy U.S. claims from 2018 to 2025. This highlights a growing volume from these modalities. The acquisition of BioLife will enhance our offering for these end markets and provide us with additional opportunities for organic and inorganic growth. It adds a deeply embedded and highly trusted platform to our portfolio, led by Biopreservation Media, which supports 18 commercial therapies. We believe the future combination of our companies will bring important benefits to customers by expanding our robust offering of cell therapy workflow solutions. Finally, the transaction is financially compelling. It's a creative to our top line growth, our adjusted margin and adjusted EPS. We see at least 20 million US dollar synergies and 5 cents of adjusted EPS accretion in year one, which grows to at least 30 million and 25 cents respectively in year two. Before I turn the call over to Jason, I'll provide some more detail on our franchise level performance. I will note that all references to our 2026 expectations are on a reported basis. Starting with filtration, revenue grew slightly on a reported basis in the quarter, driven by consumable demand, including fluid management and sachet cassettes, offset by the sale of polymem and the previously dislodged gene therapy headwind. Consistent with our expectations, ETF and systems demand were muted this quarter. As I previously mentioned, we are encouraged by the recent pickup in orders that will start fueling 2027 backlog for both of these product categories. We continue to expect filtration growth of roughly mid-single digits. Turning to chromatography, revenue grew low double digits, lapping our strongest quarter last year. This was again driven by growth in Opus columns with continual growth from CDMO and biopharma customers. In particular, we continue to see significant traction with large-scale columns where units have grown 18% in the first half. We continue to expect chromatographic growth of 20% plus for the full year. We had a phenomenal quarter in proteins with 50% growth again driven by strength across our portfolio. We're excited about the portfolio of capabilities we've assembled in our protein franchise. It's encouraging to see how strategy play out in financial results and we remain focused on seeding opportunities across our protein offerings. With a strong first half performance and visibility into continued momentum in the second half, We now expect protein growth in the mid-teens for the year. Our analytics franchise has another strong quarter with 30% plus growth, including strength across consumables, services, and capital equipment. The solo VPA plus upgrade cycle highlights the tangible benefit of our product lifecycle management strategy, but it's important to note we are seeing growth strength in our downstream analytics business. We continue to believe our digitization strategy is well positioned for where the industry is going. Given momentum in downstream demand and a growing contribution throughout the year from our upstream analytics offering, we now expect analytics growth of at least 25%. Before I hand over the call over to Jason, I wanted to reiterate that we are very pleased with our second quarter results and our continued momentum in the business. We delivered 13% organic growth in the second quarter. Our team continues to execute effectively on our strategic priorities, outpacing market growth while expanding margin, which enable us to increase our full year outlook. These are incredibly exciting times at RepliGen, and we look forward to welcoming the BioLite team upon deep close. Now, I'll turn the call over to Jason for the financial highlights.