PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Bio-Techne Corporation's unaudited condensed consolidated financial statements, including earnings, balance sheets, and cash flows, with detailed notes on accounting policies and segment information [Condensed Consolidated Statements of Earnings and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Income) Net sales increased, but net earnings and diluted EPS significantly decreased due to higher operating expenses and a litigation charge Condensed Consolidated Statements of Earnings (in thousands, except per share data) | Financial Metric | Quarter Ended Mar 31, 2025 | Quarter Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | **$316,181** | **$303,428** | **$902,671** | **$852,961** | | Gross margin | $214,556 | $204,599 | $591,460 | $566,377 | | Operating income | $38,708 | $66,998 | $126,115 | $160,863 | | **Net earnings** | **$22,588** | **$49,059** | **$91,078** | **$127,517** | | Diluted EPS | $0.14 | $0.31 | $0.57 | $0.79 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased, while total liabilities increased due to long-term debt, resulting in a decrease in total shareholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | June 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,644,259** | **$2,703,867** | | Cash and cash equivalents | $140,670 | $151,791 | | Goodwill | $968,612 | $972,663 | | Intangible assets, net | $443,699 | $507,081 | | **Total Liabilities** | **$626,234** | **$635,017** | | Long-term debt obligations | $330,000 | $319,000 | | **Total Shareholders' Equity** | **$2,018,025** | **$2,068,850** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased due to lower earnings, while investing cash outflow reduced, and financing cash outflow increased from share repurchases Condensed Consolidated Cash Flow Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $189,355 | $223,485 | | Net cash used in investing activities | ($35,589) | ($194,222) | | Net cash used in financing activities | ($163,453) | ($62,303) | | **Net change in cash and cash equivalents** | **($11,121)** | **($40,656)** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment changes, strategic investments, ongoing restructuring charges, and the resolution of a significant legal dispute - The company changed the name of its 'Diagnostics and Genomics' segment to '**Diagnostics and Spatial Biology**' to better reflect its offerings[15](index=15&type=chunk) - In July 2024, the Company invested **$15.0 million** in Spear Bio, accounted for under the cost-method[16](index=16&type=chunk) - The Company initiated enterprise-wide restructuring in fiscal 2025 to improve operating margins, incurring total charges of **$13.7 million** for the nine months ended March 31, 2025[21](index=21&type=chunk)[22](index=22&type=chunk) - A legal dispute with the former CEO regarding stock options was resolved through arbitration, resulting in a payment of **$37.2 million**, which was recognized as a litigation charge in the quarter[35](index=35&type=chunk)[36](index=36&type=chunk) Revenue by Type (in thousands) | Revenue Type | Quarter Ended Mar 31, 2025 | Quarter Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Consumables | $257,785 | $246,732 | $719,345 | $682,405 | | Instruments | $26,111 | $26,493 | $83,185 | $81,178 | | Services | $27,246 | $25,501 | $81,953 | $71,084 | | **Total revenues, net** | **$316,181** | **$303,428** | **$902,671** | **$852,961** | Segment Revenue and Operating Income (in thousands) | Segment | Quarter Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2025 | | :--- | :--- | :--- | | **Protein Sciences** | | | | Net Sales | $227,687 | $643,774 | | Operating Income | $103,910 | $271,564 | | **Diagnostics and Spatial Biology** | | | | Net Sales | $89,231 | $256,558 | | Operating Income | $8,423 | $15,940 | - On April 30, 2025, the Board approved a new share repurchase plan authorizing the purchase of up to **$500 million** of the Company's stock[102](index=102&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses increased net sales driven by organic growth, offset by decreased net earnings due to a non-recurring arbitration award and restructuring costs [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Consolidated net sales increased due to organic growth, but SG&A expenses rose significantly from an arbitration award, impacting net earnings and the effective tax rate - Consolidated net sales for Q3 FY25 increased **4% YoY** to **$316.2 million**[109](index=109&type=chunk)[111](index=111&type=chunk) - Organic revenue grew **6%**, while foreign currency and a business held-for-sale each had an unfavorable impact of **1%**[111](index=111&type=chunk) - Net earnings for Q3 FY25 decreased to **$22.6 million** from **$49.1 million YoY**, primarily due to a non-recurring arbitration award[110](index=110&type=chunk) Adjusted Gross Margin Reconciliation (Q3 FY25) | Metric | Amount (in thousands) | Percentage | | :--- | :--- | :--- | | Gross margin - GAAP | $214,556 | 67.9% | | Adjustments | $11,980 | - | | **Adjusted gross margin** | **$226,536** | **71.6%** | Segment Performance (Q3 FY25 vs Q3 FY24) | Segment | Net Sales (Q3'25) | YoY Growth | Organic Growth | Operating Margin (Q3'25) | | :--- | :--- | :--- | :--- | :--- | | Protein Sciences | $227.7M | 6% | 7% | 45.6% | | Diagnostics and Spatial Biology | $89.2M | 2% | 2% | 9.4% | Adjusted Diluted EPS Reconciliation (Q3 FY25 vs Q3 FY24) | Metric | Q3 FY25 | Q3 FY24 | | :--- | :--- | :--- | | Net earnings before taxes - GAAP | $38,274 | $61,084 | | Total Adjustments | $74,234 | $36,943 | | Net earnings before taxes - Adjusted | $112,508 | $98,027 | | **Non-GAAP adjusted net earnings** | **$88,318** | **$76,425** | | **Earnings per share - diluted - Adjusted** | **$0.56** | **$0.48** | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with substantial cash and credit availability, expecting to meet future cash requirements despite significant share repurchases - As of March 31, 2025, the Company had **$140.7 million** in cash and cash equivalents and **$670 million** available on its line-of-credit[128](index=128&type=chunk)[129](index=129&type=chunk) - The Company has a future commitment to acquire the remaining **80.1%** of Wilson Wolf, with a potential payment of up to **$1 billion** plus contingent consideration, forecasted to occur between fiscal 2026 and 2028[130](index=130&type=chunk) - For the nine months ended March 31, 2025, cash from operations was **$189.4 million**, capital expenditures were **$26.1 million**, dividends paid were **$38.0 million**, and share repurchases were **$175.7 million**[132](index=132&type=chunk)[134](index=134&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes to its market risk exposure from interest rates and currency exchange rates since the last annual report - There have been no material changes in the Company's exposure to market risk from interest rates and currency exchange rates since the last annual report[152](index=152&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[155](index=155&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the third quarter of fiscal 2025[156](index=156&type=chunk) PART II: OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings, with a significant dispute involving the former CEO resolved during the quarter - The Company is not a party to any legal proceedings expected to have a material adverse effect on its business[158](index=158&type=chunk) - A dispute with the former CEO was resolved through a binding arbitration award during the quarter ended March 31, 2025, for which the Company paid **$37.2 million** inclusive of interest and legal fees[35](index=35&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to its risk factors, except for an expanded discussion on global market conditions, including the adverse effects of tariffs and trade actions - A key risk factor highlighted is the changing conditions and uncertainty in global markets, including the adverse effects of tariffs, sanctions, and other trade actions[161](index=161&type=chunk) - These actions, such as those between the U.S. and China, could increase costs, disrupt supply chains, and negatively impact margins and profitability[161](index=161&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases under its publicly announced plan, with a remaining balance available for future repurchases Share Repurchase Activity (Fiscal Year 2025 to March 31, 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Dollar Amount Remaining Under Plan | | :--- | :--- | :--- | :--- | | Nov 1 - 30, 2024 | 1,118,492 | $67.62 | $105,110,738 | | Feb 1 - 29, 2025 | 1,488,563 | $67.21 | $5,066,126 | | **Total YTD** | **2,607,055** | **$67.38** | **$5,066,126** | - The share repurchase plan, approved on February 2, 2022, authorized the purchase of up to **$400 million** in stock[162](index=162&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[165](index=165&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[167](index=167&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the third quarter of fiscal 2025[169](index=169&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including corporate governance documents, compensation plans, and required certifications - The report includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[174](index=174&type=chunk) - Financial statements are provided in Inline Extensible Business Reporting Language (iXBRL) format[174](index=174&type=chunk)

Core Insights - Kytopen Corp. and Bio-Techne Corporation have announced a partnership to enhance gene delivery solutions for advanced cell therapies, focusing on the integration of their respective technologies [1][5] - The collaboration aims to streamline workflows for genome engineering of immune cell therapies, expediting their clinical advancement and manufacturing [1][5] Company Overview - Kytopen is a leader in non-viral, continuous flow cellular engineering technologies, headquartered in Cambridge, Massachusetts, and is known for maximizing yields and delivering hundreds of billions of engineered cells rapidly [6] - Bio-Techne is a global life sciences company that provides innovative tools and bioactive reagents for research and clinical diagnostics, generating approximately $1.2 billion in net sales in fiscal 2024 [7] Technology Highlights - The TcBuster™ system allows for the simultaneous delivery of multiple genes with high editing efficiency, offering advantages over traditional lentivirus-based methods [2][5] - Flowfect® technology combines mechanical, electrical, and chemical forces to enhance transfection efficiency and cell health, enabling the processing of billions of cells in minutes [2][5] Collaboration Details - The partnership will leverage the TcBuster™ GMP non-viral genome engineering system and the Flowfect Tx™ GMP cellular engineering platform to create a non-viral gene-editing workflow suitable for various immune cell types [1][3] - Data from the collaboration will be presented at the International Society of Cell & Gene Therapy (ISCT) Annual Meeting, showcasing the advancements made through this partnership [3][5]

Company Overview - Bio-Techne Corporation is a global life sciences company that provides innovative tools and bioactive reagents for research and clinical diagnostics [2] - The company generated approximately $1.2 billion in net sales in fiscal 2024 and employs over 3,100 people worldwide [2] Upcoming Events - Kim Kelderman, President and CEO of Bio-Techne, will present at the BofA Securities 2025 Health Care Conference on May 13, 2025, at 10:40 a.m. PDT [1]

Core Insights - Bio-Techne (TECH) reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of 56 cents, exceeding the Zacks Consensus Estimate by 9.8% and improving from 48 cents year-over-year [1] - The company's net sales reached $316.2 million, reflecting a 4.2% year-over-year increase on a reported basis and a 6% increase on an organic basis, surpassing the Zacks Consensus Estimate by 0.3% [3] - Despite the positive revenue growth, the operating margin contracted significantly by 984 basis points to 12.2% due to rising operating expenses [5][10] Financial Performance - Adjusted EPS for the quarter was 56 cents, while GAAP EPS was reported at 14 cents, down from 31 cents in the prior-year quarter [2] - Gross profit increased by 4.9% to $214.6 million, with a gross margin expansion of 43 basis points to 67.9% despite a 2.8% rise in cost of sales [5] - Selling, general and administrative expenses surged by 35.2% to $151.3 million, while research and development expenses decreased by 4.6% to $24.6 million [5] Segment Performance - In the Protein Sciences segment, revenues were $227.7 million, up 6% year-over-year (7% organically) [4] - The Diagnostics and Genomics segment saw sales improve by 2% to $89.2 million, with organic growth also at 2% [4] - Both segments demonstrated year-over-year improvement in organic sales, indicating a positive trend in the company's core business areas [9] Capital Structure - At the end of the fiscal third quarter, Bio-Techne had cash and equivalents of $140.7 million, down from $177.5 million at the end of the previous quarter [6] - Long-term debt obligations increased to $330 million from $319 million in the prior quarter [6] - Cumulative net cash provided by operating activities was $189.3 million, a decrease from $223.5 million a year ago [7] Market Reaction - Following the earnings announcement, shares of Bio-Techne rose by 5.8% in pre-market trading [2] - The management indicated that the start of fiscal 2025 was largely consistent with expectations, driven by improvements in the biopharma end-market and strong results in cell therapy and protein analysis instrumentation [10]

Core Insights - Techne (TECH) reported revenue of $316.18 million for the quarter ended March 2025, reflecting a year-over-year increase of 4.2% and surpassing the Zacks Consensus Estimate by 0.30% [1] - The company's EPS was $0.56, up from $0.48 in the same quarter last year, resulting in an EPS surprise of 9.80% compared to the consensus estimate of $0.51 [1] Financial Performance - Organic Growth was reported at 6%, exceeding the average estimate of 5.2% from three analysts [4] - Organic Growth in Diagnostics and Genomics was 2%, below the two-analyst average estimate of 6.2% [4] - Organic Growth in Protein Sciences was 7%, significantly higher than the average estimate of 2.8% from two analysts [4] - Net Sales from intersegment revenue was -$0.74 million, worse than the average estimate of -$0.55 million, representing a year-over-year decline of 3.7% [4] - Net Sales in Protein Sciences reached $227.69 million, surpassing the average estimate of $224.75 million, with a year-over-year increase of 6.1% [4] - Net Sales in Diagnostics and Genomics were $89.23 million, slightly below the average estimate of $92.50 million, showing a year-over-year growth of 2% [4] Market Performance - Techne's shares have returned -2.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of 10.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - The company reported a 6% organic revenue growth for Q3, with adjusted operating margin at 34.9% [5][20][22] - Adjusted EPS increased to $0.56 from $0.48 year-over-year, while GAAP EPS decreased to $0.14 from $0.31 [20] - Q3 revenue reached $316.2 million, a 6% increase year-over-year on an organic basis [20][21] - Total adjusted gross margin was 71.6%, slightly down from 71.9% last year [22] Business Segment Performance - The Protein Sciences segment achieved 7% organic revenue growth, driven by large pharma customers [10][26] - The Diagnostics and Spatial Biology segment reported 2% organic revenue growth, with strong performance in automated spatial instruments [13][27] - The GMP reagents business saw a trailing twelve-month growth of over 13% [12] Market Performance - North America experienced low single-digit growth, while Europe saw mid single-digit growth, and China faced a mid single-digit decline [21] - The biopharma market increased mid single digits, while the academic market remained flat [21][22] Company Strategy and Industry Competition - The company is focusing on balancing investments for future growth while driving operational efficiencies [5][19] - The FDA's recent emphasis on reducing animal testing is seen as an opportunity for the company's organoid solutions [11] - The company is well-positioned to mitigate tariff impacts through its global operational footprint [17][18] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to NIH funding and tariffs, expecting to mitigate impacts by the start of fiscal year 2026 [28][32] - The company anticipates a temporary slowdown in growth momentum to low single digits in Q4 due to macro uncertainties [32] - Management believes that potential NIH funding cuts may not significantly impact long-term growth expectations [29][68] Other Important Information - The company generated $41.1 million in cash from operations and returned $12.6 million in dividends and $100 million through stock buybacks [25] - A new share repurchase program has been authorized for up to $500 million [25] Q&A Session Summary Question: Impact of NIH funding on guidance - Management indicated that while there is uncertainty, they believe severe cuts to NIH funding are unlikely and would have an immaterial impact on long-term growth [29][68] Question: Clarification on pharma growth rates - Management clarified that pharma experienced double-digit growth in Q3, but they expect a step down in Q4 due to order timing and tariff impacts [36][41] Question: Tariff exposure and local manufacturing - Management explained that they have pathways to mitigate tariff impacts and emphasized the importance of their local manufacturing footprint in China [48][50] Question: Academic market headwinds - Management acknowledged headwinds in the academic market due to NIH funding uncertainties but expressed confidence in their competitive positioning [70][72] Question: Growth expectations for GMP reagents - Management noted that the cell and gene therapy product line has shown a trailing twelve-month growth of over 30% [80]

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $0.56 for Q3, up from $0.48 in the prior year, while GAAP EPS was $0.14 compared to $0.31 last year [20] - Q3 revenue reached $316.2 million, reflecting a 6% organic growth year over year and a 4% reported growth [20] - Adjusted gross margin was 71.6%, slightly down from 71.9% last year, while adjusted operating margin improved to 34.9%, up 190 basis points from the prior year [22] Business Line Data and Key Metrics Changes - The Protein Sciences segment achieved reported sales of $227.7 million, with organic revenue growth of 7% [25] - The Diagnostics and Spatial Biology segment reported sales of $89.2 million, with both reported and organic growth at 2% [26] - The GMP reagents business saw trailing twelve-month growth of over 13%, while the cell and gene therapy product line had a trailing twelve-month growth rate of over 30% [12][79] Market Data and Key Metrics Changes - North America experienced low single-digit growth, driven primarily by pharma customers, while Europe saw mid single-digit growth led by academic customers [21] - China faced a mid single-digit decline due to challenging economic conditions, but the rest of Asia increased mid-teens [21] - The academic market in the U.S. was flat, impacted by NIH funding uncertainties, while the diagnostics reagents division showed year-to-date growth in the high single digits [15][21] Company Strategy and Development Direction - The company is focused on balancing investments for future growth while driving operational efficiencies, maintaining industry-leading profitability [5] - The FDA's recent emphasis on reducing animal testing is seen as an opportunity for the company's organoid solutions, which are expected to accelerate growth [11] - The company is actively managing tariff impacts through optimization of its global footprint and supply chain adjustments [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to NIH funding and tariffs, noting that past experiences suggest severe cuts to NIH funding are unlikely [28][66] - The company anticipates a temporary slowdown in growth momentum to low single digits in Q4 due to macro uncertainties [31] - Management remains optimistic about long-term growth prospects, emphasizing the alignment of their product portfolio with NIH research priorities [9][66] Other Important Information - The company returned $12.6 million in dividends and $100 million through stock buybacks during Q3, with a new share repurchase program authorized for up to $500 million [24] - The balance sheet remains strong with $140.7 million in cash and a total leverage ratio well below one times EBITDA [24] Q&A Session Summary Question: Impact of NIH funding uncertainties on guidance - Management indicated that while NIH funding uncertainties are a concern, they believe the impact on long-term growth will be immaterial, as historical trends show Congress often increases NIH budgets despite proposed cuts [66][68] Question: Clarification on pharma growth rates - Management clarified that pharma experienced double-digit growth in Q3, but they expect a step down in organic growth in Q4 due to tariff impacts and academic market slowdowns [36][38] Question: Local manufacturing footprint in China - Management confirmed that tariffs have not changed their strategy for local manufacturing in China, which is seen as beneficial for minimizing cross-border tariff impacts [51] Question: Expectations for fiscal year 2026 - Management stated that they will provide a soft guide for fiscal year 2026 in three months, anticipating more clarity on headwinds affecting end markets [42][63] Question: Biotech customer spending trends - Management noted that biotech funding is sensitive to capital markets, leading to more frugal spending, which was reflected in flat growth for biotech customers in Q3 [88]

Group 1 - Bio-Techne Corporation (TECH) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jul 18, 2025 $80 Call option [1] - Implied volatility indicates market expectations for future stock movement, suggesting potential upcoming events that could lead to substantial price changes [2] - Currently, Bio-Techne holds a Zacks Rank 4 (Sell) in the Medical - Biomedical and Genetics industry, with no analysts increasing earnings estimates for the current quarter and one analyst revising estimates downward, resulting in a consensus estimate decrease from 52 cents to 51 cents per share [3] Group 2 - The high implied volatility surrounding Bio-Techne may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as anticipated by expiration [4]

Company Performance - Techne reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, and up from $0.48 per share a year ago, representing an earnings surprise of 9.80% [1] - The company posted revenues of $316.18 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.30%, and an increase from $303.43 million year-over-year [2] - Over the last four quarters, Techne has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Techne shares have declined approximately 33.8% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $325.78 million, and for the current fiscal year, it is $1.89 on revenues of $1.22 billion [7] - The estimate revisions trend for Techne is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Techne belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Techne's stock performance [5]

Revenue Performance - Third quarter organic revenue increased by 6% to $316.2 million, with a reported revenue increase of 4%[6] - The Protein Sciences segment reported net sales of $227.7 million, a 6% increase from $214.6 million in the prior year, with 7% organic growth[11] - The Diagnostics and Spatial Biology segment's net sales were $89.2 million, a 2% increase from $87.5 million, with organic revenue growth of 2%[12] - Total consolidated net sales for the quarter ended March 31, 2025, were $316,181,000, an increase of 4.6% from $303,428,000 in the same quarter of 2024[29] - Protein Sciences segment revenue for the quarter was $227,687,000, an increase from $214,589,000 in the same quarter of 2024[40] - Diagnostics and Spatial Biology segment revenue for the quarter was $89,231,000, slightly up from $87,511,000 in the same quarter of 2024[40] Earnings and Profitability - GAAP earnings per share (EPS) was $0.14, down from $0.31 in the same quarter last year, while adjusted EPS rose to $0.56 from $0.48[6] - Adjusted operating margin improved to 34.9%, an increase of 190 basis points compared to the prior year period[4] - GAAP operating income decreased by 42% to $38.7 million, with an operating margin of 12.2% compared to 22.1% in the prior year[8] - Adjusted operating income increased by 11% to $110.3 million, compared to $99.6 million in the same quarter last year[9] - Adjusted operating margin percentage for the quarter was 34.9%, up from 33.0% in the same quarter of 2024, indicating stronger profitability[32] - Non-GAAP adjusted net earnings for the quarter were $88,318,000, compared to $76,425,000 in the same quarter of 2024, representing a 15.5% increase[35] - Net earnings for the nine months ended March 31, 2025, were $91,078, down from $127,517 in the prior year, a decrease of 28.5%[43] - Adjusted EBITDA for the nine months was $314,054, up from $299,916, indicating a growth of 4.7%[43] Cash Flow and Investments - Net cash provided by operating activities for the nine months was $189,355, compared to $223,485 in the previous year, a decline of 15.2%[45] - Cash and cash equivalents at the end of the period were $140,670, slightly up from $139,915 a year ago[45] - The company reported a net cash used in investing activities of $(35,589), compared to $(194,222) in the previous year, showing a significant reduction in cash outflow[45] - The company made an investment of $15,000 in Spear Bio during the nine months[45] Balance Sheet and Equity - Total assets as of March 31, 2025, were $2,644,259,000, a decrease from $2,703,867,000 as of June 30, 2024[28] - Stockholders' equity decreased to $2,018,025,000 from $2,068,850,000, reflecting changes in retained earnings and other comprehensive income[28] - Long-term debt obligations increased to $330,000,000 from $319,000,000, indicating a slight rise in leverage[28] Future Outlook - The company remains well positioned geographically and by end market, supported by an experienced leadership team[4] - Future outlook includes navigating a dynamic macroenvironment and focusing on profitability initiatives[4] Other Financial Metrics - Gross margin percentage under GAAP for the quarter was 67.9%, compared to 67.4% in the prior year, reflecting improved operational efficiency[29] - The company recognized certain litigation charges amounting to $38,927 in the current quarter[42] - Stock-based compensation expense increased to $36,283 for the nine months, compared to $30,979 in the prior year, a rise of 17.4%[45] - Protein Sciences segment operating income increased to $103,910, up from $94,829 in the same quarter last year, representing a growth of 11.5%[42] - Adjusted operating income for the quarter was $110,320, compared to $99,587 in Q3 2024, reflecting a year-over-year increase of 10.4%[42]