Summary of Harvard Bioscience Conference Call Company Overview - **Company**: Harvard Bioscience (NasdaqGM: HBIO) - **Date**: March 17, 2026 - **Speakers**: John Duke (CEO), Mark Frost (CFO) Key Points Company Strategy and Leadership - John Duke has over 10 years in the life science industry, previously CEO of a private equity-owned company before joining Harvard Bioscience in July 2025 [2] - The company has recently refinanced short-term debt, which was a significant focus [2] - Harvard Bioscience has a diverse product portfolio, with 54% of products being recurring, including consumables and software [3] Market Growth Areas - The organoid market is growing at a rate of 15%-20%, which is a key area of focus for the company [6] - The BTX product line in bioproduction is also highlighted as a growth area, with a cGMP product launch expected in the second half of the year [8] - The company aims to maintain leadership in its SoHo telemetry platform [6] Competitive Landscape - Competitors in the organoid space include Axion BioSystems, MaxWell Biosystems, and 3Brain, with Harvard's unique Mesh MEA system providing a competitive edge [9] - The organoid products have seen increased adoption in pharmaceutical companies, expanding beyond research institutes [10] Regulatory Environment - The FDA's promotion of cell-based research is seen as complementary to Harvard's business, with expectations that animal testing will remain relevant in the near term [11] - The company anticipates a gradual shift towards new methodologies over the next 10-20 years [12] Financial Performance and Guidance - In 2025, revenue distribution was 50% from academic institutions, 28% from pharma and biotech, and 22% from contract research organizations [15] - The company expects NIH funding to remain flat at 1% for the year, with new products projected to double their contribution to revenue from 5% to 10% [18] - Debt service costs are expected to decrease from $8 million to $5 million over the next two years, allowing for additional cash flow for investment [38] Product Development and Innovation - New products introduced include the Mesh MEA and Incub8 platform for organoid research, and new telemetry implants [21] - The company is consolidating manufacturing to improve efficiency and reduce costs, with expectations of significant gross margin improvements [53] Market Conditions and Future Outlook - The contract research marketplace is expected to remain flat to low single digits in growth for the year [31] - There are signs of recovery in the biotech market, particularly among large pharma and biotech companies [34] - The company is optimistic about growth potential, aiming for EBITDA margins to reach low 20% levels in the future [60] Distribution and Market Reach - Distribution is split 39% through distributors and 61% direct sales, with a focus on expanding the sales force [43] - The company is seeing recovery in the Chinese market after previous tariff impacts, with expectations for improved orders in Q2 [44] Non-Core Business and Margin Improvement - Harvard Bioscience has removed $8 million-$10 million in non-core revenue over the past five years, resulting in improved gross margins [47] - Current gross margins are reported at 58%-60%, with expectations to increase through new product introductions and cost reductions [49] Conclusion - Harvard Bioscience is positioned for growth with a focus on innovative products, strategic market expansion, and improved financial health through debt management and operational efficiencies [69]

Company Overview - Harvard Bioscience, Inc. (NASDAQ: HBIO) is a significant entity in the life science research tools sector, providing essential equipment and solutions for scientific research, thereby supporting advancements in biology and medicine [1] - The company competes with other firms in the life sciences industry, focusing on innovation and strategic decisions to maintain its market position [1] Recent Corporate Actions - On March 16, 2026, HBIO executed a reverse stock split at a 10-for-1 ratio, a move approved by the board and stockholders, aimed at increasing the stock's per-share trading price [2] - The reverse stock split took legal effect on March 13, 2026, at 4:30 p.m. Eastern Time, with trading on a post-split adjusted basis commencing on March 16, 2026 [3] Stock Performance - Currently, HBIO's stock is priced at $0.47, reflecting a 4.15% decrease with a $0.02 change, and has fluctuated between $0.45 and $0.49 recently [3] - Over the past year, the stock reached a high of $9.45 and a low of $0.45, indicating significant volatility [3] Market Metrics - HBIO's market capitalization is approximately $21.17 million, with a trading volume of 479,292 shares, highlighting the company's market activity and investor interest [4]

Revenue and Sales Performance - For the year ended December 31, 2025, revenues from the Cellular and Molecular Technology (CMT) product family accounted for approximately 46% of global revenues, while the Preclinical product family represented about 54%[23][24]. - Direct sales to end-users represented approximately 61% of total revenues for the year ended December 31, 2025, while distributor sales accounted for about 39%[30]. - Sales of third-party products accounted for approximately 13% of revenues for the year ended December 31, 2025[25]. - Revenues decreased by $7.5 million, or 8.1%, to $86.6 million for the year ended December 31, 2025, compared to $94.1 million for the year ended December 31, 2024[128]. - The company reported revenues of $86,550,000 for the year ended December 31, 2025, a decrease of 8.4% compared to $94,135,000 in 2024[204]. Cost Management and Savings - The company anticipates approximately $3 million in cost savings from Project Viking in 2027, with annual savings expected to reach $4 million starting in 2028[15]. - The Company expects to achieve approximately $3 million in cost savings in 2027 and approximately $4 million in annual cost savings beginning in 2028 from Project Viking[123]. - The company is focused on maintaining operational efficiency and cost discipline while pursuing growth through research and development and potential acquisitions[21][32]. Research and Development - Research and development expenses were approximately $8.8 million for the year ended December 31, 2025, down from $10.4 million in 2024[32]. - The company has incurred and will continue to incur substantial expenses for the development of new products and enhancements to existing products, which may affect profitability if development costs are not recovered[52]. Financial Position and Performance - The company incurred a net loss of $56,700,000 in 2025, significantly higher than the net loss of $12,405,000 in 2024, resulting in a loss per share of $1.28 compared to $0.28 in the previous year[204]. - Cash and cash equivalents increased to $8.6 million as of December 31, 2025, compared to $4.1 million as of December 31, 2024[142]. - Total current assets increased to $48,225,000 in 2025 from $45,117,000 in 2024, primarily driven by an increase in cash and cash equivalents[202]. - The company’s total stockholders' equity decreased to $13,734,000 in 2025 from $63,340,000 in 2024, reflecting a significant decline due to the net loss and goodwill impairment[202]. Manufacturing and Operations - The company plans to consolidate its manufacturing operations to improve efficiency and support long-term growth, with a focus on specific centers of excellence[15][33]. - The company expects to close its manufacturing facility in Holliston, MA, transitioning production to its hub in Minneapolis, aligning operations with strategic logistical locations[112]. Compliance and Regulatory Risks - The company faces risks related to government regulations that could reduce demand for its products and adversely impact revenues[55]. - The company is subject to export control regulations that may restrict its ability to transact with certain foreign countries, potentially impacting international sales[61]. - The company received a notification from Nasdaq on April 4, 2025, indicating non-compliance with the minimum bid price requirement of $1.00 per share, based on a closing bid price for 30 consecutive business days[90]. Intellectual Property and Competition - The company has 11 issued patents worldwide as of December 31, 2025, with expiration dates ranging from 2028 to 2044[39]. - The life sciences industry is highly competitive, with many competitors having greater resources, which may impact the company's market position[49]. - The company faces risks related to intellectual property litigation, which could result in reduced revenue if unable to obtain necessary licenses[88][89]. Employee and Labor Market - As of December 31, 2025, the company employed 339 employees, including 316 full-time employees, with the majority located in the United States (192 full-time) and Germany (51 full-time)[45]. - The company operates in competitive labor markets, particularly in Boston, Minneapolis, England, and Germany, which may impact its ability to hire and retain qualified personnel[87]. Currency and Economic Factors - Changes in foreign currency exchange rates had a favorable effect on revenues of $1.2 million and an unfavorable effect on expenses of $1.5 million during the year ended December 31, 2025[151]. - Levels of inflation and interest rates could negatively impact revenues, profitability, and borrowing costs, potentially leading to reduced profit margins and adverse effects on financial results and net income[63]. Internal Controls and Financial Reporting - Material weaknesses in internal controls over financial reporting were identified as of December 31, 2024, but have been remediated by December 31, 2025[70][71]. - The company completed remediation of previously disclosed material weaknesses in internal controls over financial reporting as of December 31, 2025[177]. - The company has not made any changes to its internal control over financial reporting that materially affected its effectiveness during the year ended December 31, 2025[178].

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing significant growth and expansion in their coverage [1]

Core Insights - 2025 was a pivotal year for the company, focusing on improving financial flexibility, reorganizing operations, and clarifying long-term strategic direction [1][3] - The company completed a comprehensive refinancing in December, extending debt maturity to 2021 and reducing annual debt service to $5 million, generating $3 million in annual cash savings [3][18] - The company reported fourth quarter revenue of $23.7 million, exceeding guidance, with a gross margin of 60% and adjusted EBITDA of $3.8 million, reflecting a 27% year-over-year growth [4][11] Financial Performance - Fourth quarter revenue was $23.7 million, slightly below the $24.6 million reported in Q4 2024, impacted by a 43-day government shutdown [10] - Gross margin improved to 59.7%, up 260 basis points from 57.1% in Q4 2024, marking the highest gross margin in the last seven quarters [11] - Full year revenue decreased to $86.6 million from $94.1 million, primarily due to tariffs and delayed NIH funding [12] - Adjusted EBITDA for the full year increased by 12.5% to $8.1 million, driven by cost reductions and improved expense management [13] Strategic Initiatives - The company is transitioning from a traditional life science tools provider to a leader in translational science, targeting the $10 billion translational science market [6] - Key priorities include leading the translational science bridge, accelerating high-margin innovation, expanding consumables and recurring revenue, and maintaining operational excellence [7][8] - The company aims to increase the proportion of recurring revenue, currently at approximately 55%, by focusing on higher-margin consumables and services [7] Outlook for 2026 - The company forecasts low single-digit revenue growth and high single-digit adjusted EBITDA growth for 2026, driven by higher-margin new product innovations [8][21] - Full year guidance for 2026 includes revenue growth of 2% to 4%, gross margin of 58% to 60%, and adjusted EBITDA growth of 6% to 10% [21] - The company expects to see a positive impact from NIH funding approvals towards the end of Q1 and into Q2 2026 [24][25] Market Position - The company is well-positioned to create long-term shareholder value with a technically deep global team, a refreshed board, and improved financial flexibility [9] - The Asia Pacific region showed a 10% year-over-year revenue increase in Q4, indicating a potential turnaround after previous challenges [29] - The company ended the year with the highest backlog in over two years, suggesting strong future demand [30]

Core Insights - Harvard Bioscience, Inc. (HBIO) projects a revenue growth of 2% to 4% for 2026, focusing on high-margin products following structural improvements made in 2025 [2] Management View - The company’s President and CEO, John Duke, emphasized that 2025 was a crucial year for foundation building, which included refinancing in December that extended debt maturity and reduced annual debt service to $5 million, resulting in a savings of $3 million [2]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $23.7 million, above the midpoint of guidance but down from $24.6 million in Q4 2024 [12] - Gross margin improved to 59.77%, up 260 basis points from 57.1% in Q4 2024, marking the highest gross margin in seven quarters [12][13] - Adjusted EBITDA for Q4 increased by 27% year-over-year to $3.8 million [12][14] - Full year revenue decreased to $86.6 million from $94.1 million, primarily due to tariffs and delayed NIH funding [15] - Full year adjusted EBITDA increased by 12.5% to $8.1 million from $7.2 million in 2024 [15] Business Line Data and Key Metrics Changes - The company is transitioning to higher margin product lines, with approximately 55% of revenue now recurring [9] - Key products like BTX and Mesh MEA are expected to grow in double digits in 2026 [28] Market Data and Key Metrics Changes - Q4 revenues in the Americas were down 2% year-over-year, while Europe saw a 12% decline due to lower academic sales [16][17] - In China and the Asia Pacific, Q4 revenues increased by 10% year-over-year, driven by growth in preclinical distribution [17] Company Strategy and Development Direction - The company is evolving from a traditional life science tools provider to a leader in translational science, focusing on bridging in vivo and in vitro research [8] - Four strategic priorities include leading the translational science bridge, accelerating high margin innovation, expanding consumables and recurring revenue, and operational excellence [9] Management Comments on Operating Environment and Future Outlook - Management anticipates low single-digit revenue growth and high single-digit Adjusted EBITDA growth for 2026, driven by higher margin NPI growth [10] - The company is well-positioned to manage volatility due to its diversified geographic footprint and improved cost structure [10] Other Important Information - The company completed a comprehensive refinancing that extended debt maturity to 2029 and reduced annual debt service by $3 million [4][19] - The company ended the year with the highest backlog in over two years, indicating positive momentum [35] Q&A Session Summary Question: How quickly do you think NIH approval will improve the academic environment? - Management expects a positive impact towards the end of Q1 and into Q2 as grant submissions are approved [26][27] Question: What is the expected growth for key products like BTX and Mesh MEA in 2026? - Both products are expected to grow in double digits this year [28] Question: Can you provide insights on the Asia Pacific revenue and expectations for 2026? - Management sees improvement in Asia Pacific revenue and expects to return to a normal cadence, barring any new tariff issues [34] Question: How is the pharmaceutical biotech CRO side of the business performing? - The pharma and biotech segment is up year-to-date, and management expects this trend to continue [38]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $23.7 million, above the midpoint of guidance but down from $24.6 million in Q4 2024 [12] - Gross margin was 59.77%, up 260 basis points from 57.1% in Q4 2024, marking the highest gross margin in the last seven quarters [12][13] - Adjusted EBITDA increased by 27% year-over-year to $3.8 million in Q4 2025 [14] - Full year revenue was $86.6 million, down from $94.1 million in 2024, primarily due to tariffs and delayed NIH funding [15] - Full year adjusted EBITDA increased by 12.5% to $8.1 million from $7.2 million in 2024 [16] Business Line Data and Key Metrics Changes - The company experienced a favorable mix shift towards higher margin product lines, contributing to improved financial results [7] - The new product innovation pipeline includes scalable platforms like SoHo Telemetry and BTX for bioproduction, expected to drive growth [9] - Approximately 55% of revenue is recurring, with a focus on higher margin consumables and services [9] Market Data and Key Metrics Changes - Q4 revenues in the Americas were down 2% year-over-year, driven by lower pharma and academic sales [16] - In Europe, Q4 revenues were down 12% year-over-year due to lower academic sales [17] - In China and the Asia Pacific, Q4 revenues were up 10% year-over-year, attributed to growth in preclinical distribution [17] Company Strategy and Development Direction - The company is evolving from a traditional life science tools provider to a leader in translational science, focusing on bridging in vivo and in vitro research [8] - Key strategic priorities include leading the translational science bridge, accelerating high margin innovation, expanding consumables and recurring revenue, and maintaining operational excellence [9][10] - The company aims for low single-digit revenue growth and high single-digit adjusted EBITDA growth in 2026, driven by higher margin NPI growth [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the life science industry is undergoing a fundamental shift, with drug development remaining inefficient [7] - The company expects to see a positive impact from NIH funding approvals towards the end of Q1 and into Q2 [26][27] - The company is well-positioned to manage volatility due to its diversified geographic footprint and improved cost structure [10] Other Important Information - The company completed a comprehensive refinancing that extended debt maturity to 2029 and reduced annual debt service by $3 million [4][19] - The company has reinstated bonuses and merit-based compensation for employees in 2026 after being suspended in 2025 [21] Q&A Session Summary Question: How quickly do you think NIH approval will improve the academic environment? - Management expects a positive impact towards the end of Q1 and into Q2 as grant submissions are approved [26][27] Question: What is the expected growth for key products like BTX and Mesh MEA in 2026? - Both products are expected to grow in double digits this year [28] Question: What is the status of the company's backlog? - The company ended the year with the highest backlog in over two years and maintains a positive outlook on it [36] Question: How is the demand for products on the pharmaceutical drug development side? - The pharma and biotech market is showing growth, which is factored into the company's guidance for the year [38]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $23.7 million, above the midpoint of guidance but down from $24.6 million in Q4 2024 [12] - Gross margin improved to 59.77%, up 260 basis points from 57.1% in Q4 2024, marking the highest gross margin in the last seven quarters [12][13] - Adjusted EBITDA for Q4 2025 was $3.8 million, reflecting a 27% year-over-year growth [6][13] - Full year revenue for 2025 was $86.6 million, down from $94.1 million in 2024, primarily due to tariffs and delayed NIH funding [14] - Full year adjusted EBITDA increased 12.5% to $8.1 million from $7.2 million in 2024 [15] Business Line Data and Key Metrics Changes - The Americas saw a 2% year-over-year decline in Q4 revenue, driven by lower pharma and academic sales [16] - European revenues decreased by 12% year-over-year in Q4, attributed to lower academic sales [17] - In China and the Asia Pacific, Q4 revenues increased by 10% year-over-year, supported by growth in preclinical distribution [17] Market Data and Key Metrics Changes - NIH revenue constitutes about 20% of U.S. revenue, with expectations for improvement in orders following recent approvals [27] - The company experienced a backlog at the highest level in over two years, indicating positive demand trends [36] Company Strategy and Development Direction - The company is transitioning from a traditional life science tools provider to a leader in translational science, focusing on bridging in vivo and in vitro research [8] - Key strategic priorities include leading the translational science bridge, accelerating high-margin innovation, expanding consumables and recurring revenue, and maintaining operational excellence [9][10] - The company aims for low single-digit revenue growth and high single-digit Adjusted EBITDA growth in 2026, driven by higher margin new product innovations [10][22] Management Comments on Operating Environment and Future Outlook - The life science industry is undergoing a fundamental shift, with drug development remaining inefficient [7] - The company is well-positioned to manage volatility due to its diversified geographic footprint and improved cost structure [10] - 2025 was characterized as a strategic reset, with 2026 expected to be a year of growth in both top and bottom lines [10][23] Other Important Information - The company completed a comprehensive refinancing that extended debt maturity to 2029 and reduced annual debt service by $3 million [4][19] - The company has reinstated bonuses and merit-based compensation for employees in 2026, which had been suspended in 2025 [21] Q&A Session Summary Question: How quickly do you think NIH approval will improve the academic environment? - Management expects to see a positive impact towards the end of Q1 and into Q2 following NIH approval [26][27] Question: What is the expected growth for key products like BTX and Mesh MEA in 2026? - Both products are expected to grow in double digits this year [28] Question: What are the expectations for the Asia Pacific revenue turnaround? - Management noted improvement in orders and expects a return to normal cadence in Asia, barring any new tariff issues [35] Question: How is the pharmaceutical biotech CRO side of the business performing? - The pharma and biotech segment is up year-to-date, and management expects this trend to continue [39]

NASDAQ: HBIO 4Q25 Earnings Presentation John Duke, President & CEO Mark Frost, CFO & Treasurer March 12, 2026 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements This document contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward- looking statements may be identified by the use of words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend" and si ...