Repligen(RGEN) - 2025 Q1 - Quarterly Results

Repligen Corporation Overview Repligen Corporation, a life sciences company, announced strong Q1 2025 earnings and updated full-year guidance, driven by organic growth and strategic acquisitions Company Information Repligen Corporation (NASDAQ:RGEN) is a life sciences company specializing in bioprocessing technology, headquartered in Waltham, Massachusetts - Repligen Corporation (NASDAQ:RGEN) is a life sciences company focused on bioprocessing technology leadership, headquartered in Waltham, Massachusetts[1][2] Q1 2025 Earnings Announcement Repligen Corporation announced its Q1 2025 financial results and provided updated financial guidance for the full year 2025 - Repligen reported financial results for Q1 2025 (three months ended March 31, 2025) and provided updated financial guidance for the full year 2025[2] CEO Commentary CEO Olivier Loeillot highlighted strong Q1 2025 revenue and order growth, with significant adjusted operating margin expansion and strategic acquisitions - Q1 2025 revenue was $169 million, representing 14% organic non-COVID growth and driving meaningful adjusted operating margin expansion[3] - Total orders grew nearly 20% year-over-year, with all four franchises achieving double-digit growth[3] - The Analytics franchise was strategically strengthened with the acquisition of 908 Devices' bioprocessing portfolio[3] Q1 2025 Business and Financial Highlights Repligen reported strong Q1 2025 financial performance with increased revenue, orders, and significant margin expansion, alongside key operational achievements Key Financial Performance Repligen reported a 10% year-over-year revenue increase to $169 million, driven by 14% organic non-COVID growth, reiterating full-year guidance Q1 2025 Key Financial Performance Highlights (YoY) | Metric | Q1 2025 | Change YoY | | :-------------------------- | :-------- | :--------- | | Revenue | $169M | +10% (reported), +14% (organic non-COVID) | | Orders | Increased sequentially | High-teens | | Adjusted Operating Income | N/A | +72% | | 2025 Full Year Organic Revenue Guidance | 9.5% - 13.5% | Reiterated | Operational Highlights In Q1 2025, Repligen achieved record biopharma revenues, acquired 908 Devices' bioprocessing portfolio, and launched the new CTech™ SoloVPE® Plus System - Biopharma and consumables revenues increased greater than 20% year-over-year, reaching record levels excluding COVID-related sales[6] - Completed the acquisition of 908 Devices' bioprocessing portfolio, complementing and strengthening the process analytical technology (PAT) offering with upstream capabilities[6] - Launched the CTech™ SoloVPE® Plus System, a next-generation UV-based Variable Pathlength Technology system[6] Detailed Q1 2025 Financial Performance Repligen reported Q1 2025 total revenue of $169 million, a 10% reported increase, with significant growth in GAAP and Adjusted net income and EPS Q1 2025 Detailed Financial Performance (YoY Comparison) | Metric | Q1 2025 | Q1 2024 | Change YoY | | :-------------------------- | :-------- | :-------- | :--------- | | Total Reported Revenue | $169M | $153M | +10% (reported), +14% (organic non-COVID) | | GAAP Gross Profit | $91M | $77M | +18.2% | | Adjusted Gross Profit | $91M | $75M | +21.3% | | GAAP Income from Operations | $7M | $4M | +75.0% | | Adjusted Income from Operations | $23M | $14M | +64.3% | | GAAP Net Income | $6M | $3M | +100.0% | | Adjusted Net Income | $22M | $17M | +29.4% | | GAAP EPS (Diluted) | $0.10 | $0.06 | +66.7% | | Adjusted EPS (Diluted) | $0.39 | $0.30 | +30.0% | Margin Summary Repligen demonstrated significant margin expansion in Q1 2025, with GAAP gross margin increasing to 53.6% and adjusted operating margin reaching 13.8% Q1 2025 Margin Summary (YoY Comparison) | Margin Type | Q1 2025 | Q1 2024 | Change (bps) | | :-------------------- | :------ | :------ | :----------- | | GAAP Gross Margin | 53.6% | 50.1% | +350 | | GAAP Operating (EBIT) Margin | 3.9% | 2.4% | +150 | | Adjusted Gross Margin | 53.7% | 49.2% | +450 | | Adjusted Operating (EBIT) Margin | 13.8% | 8.9% | +490 | | Adjusted EBITDA Margin | 19.3% | 14.4% | +490 | - Cash and cash equivalents at March 31, 2025, were $697 million, compared to $757 million at December 31, 2024[7] Financial Guidance for Fiscal Year 2025 Repligen provided updated FY 2025 financial guidance, projecting total reported revenue between $695M and $720M, with adjusted operating margin of 13.5% - 14.5% FY 2025 Guidance Details Repligen provided updated financial guidance for fiscal year 2025, projecting total reported revenue between $695M and $720M and adjusted diluted EPS of $1.63 - $1.72 FY 2025 Financial Guidance | Metric | GAAP Guidance | Adjusted (non-GAAP) Guidance | | :-------------------------- | :---------------- | :--------------------------- | | Total Reported Revenue | $695M - $720M | $695M - $720M | | Reported Growth | 9.5% - 13.5% | 9.5% - 13.5% | | Organic Growth | - | 9.5% - 13.5% | | Organic, Non-COVID Growth | - | 11.5% - 15.5% | | Gross Margin | 52% - 53% | 52% - 53% | | Income from Operations | $48M - $55M | $95M - $102M | | Operating Margin | 7% - 8% | 13.5% - 14.5% | | Other Income (Expense) | $7M - $8M | $23M - $24M | | Adjusted EBITDA Margin | - | 19.5% - 20.5% | | Tax Rate on Pre-Tax Income | 23% - 24% | 22% - 23% | | Net Income | $43M - $48M | $92M - $97M | | Earnings Per Share - Diluted | $0.76 - $0.85 | $1.63 - $1.72 | Guidance Updates and Impact The updated FY 2025 guidance incorporates the 908 Devices acquisition, increasing revenue by $10 million but reducing income from operations by $4 million - Updated guidance incorporates the acquisition of 908 Devices' Bioprocessing Analytics business, including a revenue increase of $10 million[9] - The acquisition is expected to result in a $4 million reduction in income from operations[9] - There is a 100-basis point increase in gross margin versus prior guidance, primarily due to a shift in costs to operating expenses from cost of goods sold, with no impact on operating income[9] Additional Information This section provides details on Repligen's conference call, company overview, non-GAAP financial measures, forward-looking statements, and investor contact Conference Call and Webcast Repligen hosted a conference call and webcast on April 29, 2025, to discuss Q1 2025 financial results, corporate developments, and 2025 financial guidance - Repligen hosted a conference call and webcast on April 29, 2025, at 8:30 a.m. ET, to discuss Q1 2025 financial results, corporate developments, and 2025 financial guidance[10] About Repligen Corporation Repligen Corporation is a global life sciences company developing innovative bioprocessing technologies and systems to enhance biological drug manufacturing for biopharmaceutical developers and CDMOs - Repligen develops and commercializes highly innovative bioprocessing technologies and systems that enable efficiencies in the process of manufacturing biological drugs[11] - The company's focus areas are Filtration and Fluid Management, Chromatography, Process Analytics, and Proteins[11] - Repligen primarily serves biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide, with manufacturing sites in the U.S., Estonia, France, Germany, Ireland, the Netherlands, and Sweden[11][12] Non-GAAP Financial Measures Explanation This section explains Repligen's use of non-GAAP financial measures, which exclude specific items like acquisition costs and intangible amortization, to better reflect ongoing performance - Non-GAAP measures include organic non-COVID revenue growth, adjusted cost of goods sold, adjusted gross profit, adjusted income from operations, adjusted net income, and adjusted EBITDA[13] - Non-GAAP financial results exclude the impact of acquisition and integration costs, restructuring charges, intangible amortization costs, non-cash interest expense, and the related tax impact[14] - Management believes these excluded expenses do not have a direct correlation to future business operations nor accurately reflect the performance of ongoing operations[14] Forward-Looking Statements This section contains forward-looking statements regarding future financial performance and business expectations, which are subject to various risks and uncertainties - Forward-looking statements include any express or implied statements or guidance regarding current or future financial performance and position, expected demand, expectations regarding acquisitions, and expected business performance[16] - Risks and uncertainties include the ability to successfully grow the bioprocessing business, manage headwinds, achieve financial guidance, successfully integrate acquired businesses, and potential declines in product demand[17] - Repligen cautions investors not to place undue reliance on any forward-looking statements, which speak only as of the date they are made and may differ materially from actual results[17][18] Investor Contact For investor inquiries, contact Jacob Johnson, VP, Investor Relations, via phone or email - Investor relations contact is Jacob Johnson, VP, Investor Relations, at (781) 419-0204 or investors@repligen.com[19] Condensed Consolidated Financial Statements This section presents Repligen's condensed consolidated statements of operations and balance sheet data for Q1 2025 and prior periods Condensed Consolidated Statements of Operations The condensed consolidated statements of operations show Repligen's Q1 2025 total revenue increased to $169.172 million, leading to a net income of $5.830 million Condensed Consolidated Statements of Operations (Three Months Ended March 31, in thousands) | Metric | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Product revenue | $169,137 | $153,146 | | Royalty and other revenue | $35 | $36 | | Total revenue | $169,172 | $153,182 | | Cost of goods sold | $78,415 | $76,391 | | Research and development | $12,924 | $11,238 | | Selling, general and administrative | $71,255 | $61,803 | | Total costs and expenses | $162,594 | $149,432 | | Income from operations | $6,578 | $3,750 | | Investment income | $7,314 | $8,993 | | Interest expense | $(5,250) | $(5,029) | | Amortization of debt issuance costs | $(413) | $(483) | | Other income (expenses), net | $(286) | $(3,536) | | Income before income taxes | $7,943 | $3,695 | | Income tax provision | $2,113 | $399 | | Net income | $5,830 | $3,296 | | Basic EPS | $0.10 | $0.06 | | Diluted EPS | $0.10 | $0.06 | Balance Sheet Data As of March 31, 2025, Repligen reported cash and cash equivalents of $697.229 million, total assets of $2,852.143 million, and stockholders' equity of $1,985.483 million Balance Sheet Data (as of March 31, 2025 and December 31, 2024, in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Cash and cash equivalents | $697,229 | $757,355 | | Working capital | $880,469 | $939,254 | | Total assets | $2,852,143 | $2,829,666 | | Long-term obligations | $714,664 | $730,161 | | Accumulated earnings | $413,184 | $407,354 | | Stockholders' equity | $1,985,483 | $1,972,718 | Reconciliations of GAAP to Non-GAAP Financial Measures This section provides detailed reconciliations from GAAP to non-GAAP financial measures for revenue, income, EPS, EBITDA, and various expenses Revenue Growth Reconciliation This reconciliation details the adjustments from GAAP total reported revenue growth of 10% to non-GAAP organic non-COVID revenue growth of 14% for Q1 2025 Reconciliation of Total Revenue (GAAP) Growth to Organic Non-COVID Revenue Growth (Non-GAAP) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | TOTAL REPORTED REVENUE (GAAP) GROWTH | 10% | (7)% | | Acquisition revenue | (1)% | (4)% | | Currency exchange | 1% | 1% | | ORGANIC REVENUE GROWTH (NON-GAAP) | 11% | (11)% | | COVID revenue | 2% | 1% | | ORGANIC NON-COVID REVENUE GROWTH (NON-GAAP) | 14% | (10)% | Income from Operations Reconciliation GAAP income from operations of $6.578 million for Q1 2025 was adjusted to $23.405 million non-GAAP adjusted income from operations, resulting in an adjusted operating margin of 13.8% Reconciliation of Income from Operations (GAAP) to Adjusted Income from Operations (Non-GAAP, in thousands) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | INCOME FROM OPERATIONS (GAAP) | $6,578 | $3,750 | | Acquisition and integration costs | $6,033 | $1,755 | | Restructuring activities and other related charges | $1,089 | $(584) | | Intangible amortization | $9,121 | $8,716 | | Other | $584 | — | | ADJUSTED INCOME FROM OPERATIONS (NON-GAAP) | $23,405 | $13,637 | | OPERATING (EBIT) MARGIN | 3.9% | 2.4% | | ADJUSTED OPERATING (EBIT) MARGIN | 13.8% | 8.9% | Net Income Reconciliation GAAP net income of $5.830 million for Q1 2025 was reconciled to $22.241 million adjusted net income (non-GAAP) by adding back various non-cash and non-recurring expenses Reconciliation of Net Income (GAAP) to Adjusted Net Income (Non-GAAP, in thousands) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | NET INCOME (GAAP) | $5,830 | $3,296 | | Acquisition and integration costs | $6,033 | $1,755 | | Restructuring activities and other related charges | $1,089 | $(584) | | Intangible amortization | $9,121 | $8,716 | | Non-cash interest expense | $3,747 | $3,464 | | Amortization of debt issuance costs | $413 | $483 | | Foreign currency impact of certain intercompany loans | — | $3,787 | | Other | $584 | — | | Tax effect of non-GAAP charges | $(4,576) | $(3,690) | | ADJUSTED NET INCOME (NON-GAAP) | $22,241 | $17,227 | Earnings Per Share Reconciliation Diluted GAAP EPS of $0.10 for Q1 2025 was reconciled to $0.39 adjusted diluted EPS (non-GAAP) by adjusting for non-cash and non-recurring per-share impacts Reconciliation of Earnings Per Share (GAAP) to Adjusted Earnings Per Share (Non-GAAP) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | EARNINGS PER SHARE (GAAP) - DILUTED | $0.10 | $0.06 | | Acquisition and integration costs | $0.11 | $0.03 | | Restructuring activities and other related charges | $0.02 | $(0.01) | | Intangible amortization | $0.16 | $0.15 | | Non-cash interest expense | $0.07 | $0.06 | | Amortization of debt issuance costs | $0.01 | $0.01 | | Foreign currency impact of certain intercompany loans | — | $0.07 | | Other | $0.01 | — | | Tax effect of non-GAAP charges | $(0.08) | $(0.07) | | ADJUSTED EARNINGS PER SHARE (NON-GAAP) - DILUTED | $0.39 | $0.30 | Adjusted EBITDA Reconciliation GAAP net income was reconciled to Adjusted EBITDA (non-GAAP), which reached $32.702 million for Q1 2025, resulting in an Adjusted EBITDA Margin of 19.3% Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP, in thousands) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | NET INCOME (GAAP) | $5,830 | $3,296 | | Investment income | $(7,314) | $(8,993) | | Interest expense | $5,250 | $5,029 | | Amortization of debt issuance costs | $413 | $483 | | Income tax provision | $2,113 | $399 | | Depreciation | $9,555 | $8,145 | | Intangible amortization | $9,149 | $8,744 | | EBITDA (NON-GAAP) | $24,996 | $17,103 | | Acquisition and integration costs | $6,033 | $1,755 | | Restructuring activities and other related charges | $1,089 | $(584) | | Foreign currency impact of certain intercompany loans | — | $3,787 | | Other | $584 | — | | ADJUSTED EBITDA (NON-GAAP) | $32,702 | $22,061 | | ADJUSTED EBITDA MARGIN (NON-GAAP) | 19.3% | 14.4% | Cost of Goods Sold Reconciliation GAAP Cost of Goods Sold (COGS) of $78.415 million for Q1 2025 was adjusted to $78.395 million non-GAAP adjusted COGS, leading to an adjusted gross margin of 53.7% Reconciliation of Cost of Goods Sold (GAAP) to Adjusted Cost Goods Sold (Non-GAAP, in thousands) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | COST OF GOODS SOLD (GAAP) | $78,415 | $76,391 | | Acquisition and integration costs | $(103) | $(66) | | Restructuring activities and other related charges | $270 | $1,448 | | Intangible amortization | $(187) | — | | ADJUSTED COST OF GOODS SOLD (NON-GAAP) | $78,395 | $77,773 | | GROSS MARGIN (GAAP) | 53.6% | 50.1% | | ADJUSTED GROSS MARGIN (NON-GAAP) | 53.7% | 49.2% | R&D Expense Reconciliation GAAP R&D expense of $12.924 million for Q1 2025 was adjusted to $11.337 million non-GAAP adjusted R&D expense, after accounting for specific non-GAAP items Reconciliation of R&D Expense (GAAP) to Adjusted R&D Expense (Non-GAAP, in thousands) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | R&D EXPENSE (GAAP) | $12,924 | $11,238 | | Acquisition and integration costs | $(420) | $(53) | | Restructuring activities and other related charges | $(810) | $(165) | | Intangible amortization | $(357) | — | | ADJUSTED R&D EXPENSE (NON-GAAP) | $11,337 | $11,020 | SG&A Expense Reconciliation GAAP SG&A expense of $71.255 million for Q1 2025 was adjusted to $56.035 million non-GAAP adjusted SG&A expense by excluding specific non-recurring costs Reconciliation of SG&A Expense (GAAP) to Adjusted SG&A Expense (Non-GAAP, in thousands) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | SG&A EXPENSE (GAAP) | $71,255 | $61,803 | | Acquisition and integration costs | $(5,510) | $(1,636) | | Restructuring activities and other related charges | $(549) | $(699) | | Intangible amortization | $(8,577) | $(8,716) | | Other | $(584) | — | | ADJUSTED SG&A EXPENSE (NON-GAAP) | $56,035 | $50,752 | Net Income Guidance Reconciliation The FY 2025 GAAP net income guidance of $43M - $48M is adjusted to non-GAAP net income guidance of $92M - $97M by adding back projected non-GAAP items Reconciliation of Net Income (GAAP) Guidance to Adjusted Net Income (Non-GAAP) Guidance (Year Ending December 31, 2025, in thousands) | Metric | Low End | High End | | :------------------------------------ | :------ | :------- | | GUIDANCE ON NET INCOME (GAAP) | $43,000 | $48,000 | | Acquisition and integration costs | $11,505 | $11,505 | | Restructuring activities and other related charges | $1,464 | $1,464 | | Anticipated pre-tax amortization of acquisition-related intangible assets | $33,384 | $33,384 | | Non-cash interest expense | $14,586 | $14,586 | | Amortization of debt issuance costs | $1,646 | $1,646 | | Tax effect of non-GAAP charges | $(13,699) | $(13,699) | | Other | $584 | $584 | | Guidance rounding adjustment | $(470) | $(470) | | GUIDANCE ON ADJUSTED NET INCOME (NON-GAAP) | $92,000 | $97,000 | Earnings Per Share Guidance Reconciliation The FY 2025 GAAP diluted EPS guidance of $0.76 - $0.85 is adjusted to non-GAAP diluted EPS guidance of $1.63 - $1.72, reflecting per-share non-GAAP impacts Reconciliation of Earnings Per Share (GAAP) Guidance to Adjusted Earnings Per Share (Non-GAAP) Guidance (Year Ending December 31, 2025) | Metric | Low End | High End | | :------------------------------------ | :------ | :------- | | GUIDANCE ON EARNINGS PER SHARE (GAAP) - DILUTED | $0.76 | $0.85 | | Acquisition and integration costs | $0.20 | $0.20 | | Restructuring activities and other related charges | $0.03 | $0.03 | | Anticipated pre-tax amortization of acquisition-related intangible assets | $0.59 | $0.59 | | Non-cash interest expense | $0.26 | $0.26 | | Amortization of debt issuance costs | $0.03 | $0.03 | | Tax effect of non-GAAP charges | $(0.24) | $(0.24) | | Other | $0.01 | $0.01 | | Guidance rounding adjustment | $(0.01) | $(0.01) | | GUIDANCE ON ADJUSTED EARNINGS PER SHARE (NON-GAAP) - DILUTED | $1.63 | $1.72 | Footnotes to Reconciliations This section provides detailed footnotes explaining specific adjustments made in the GAAP to non-GAAP reconciliations, including restructuring activities and cybersecurity incident costs - Restructuring activities, initiated in July 2023, continued in Q1 2025, including severance, employee-related, and facility exit costs, with a benefit from the sale of previously reserved inventory[30] - The 'Other' adjustment includes one-time events relating to a cybersecurity incident (net of insurance) and costs associated with the restatement of previously issued financial statements[31] - During Q1 2024, foreign currency losses of $3.787 million on certain intercompany loans were recorded in 'Other expenses, net'[31]