Repligen(US:RGEN)2025-07-29 11:31Q2 2025 Performance Overview The company reported strong Q2 2025 organic non-COVID growth, robust order momentum, and strategic product launches Management Commentary The CEO highlighted an outstanding Q2 with 17% organic non-COVID growth, driven by strong momentum in both consumables and capital equipment. Order growth exceeded 20% year-over-year, marking the eighth consecutive quarter of orders surpassing non-COVID revenue. This performance led to an increase in the midpoint of the full-year 2025 organic growth guidance - Key performance drivers in Q2 2025 included: - Organic Growth: 17% organic non-COVID growth. - Order Momentum: Orders grew over 20% YoY, the fifth consecutive quarter of sequential order growth and the eighth straight quarter of orders exceeding non-COVID revenue. - Guidance: The company raised its full-year 2025 organic growth guidance midpoint due to strong performance and second-half visibility.34 Q2 2025 Business Highlights Repligen reported strong, broad-based revenue growth across all franchises and geographies. Consumables grew over 20% and capital equipment grew in the high-teens. The company also launched a new single-use mixer, ProConnex® MixOne, and published its 2024 Sustainability report - Operational and strategic achievements in Q2 2025 include: - Broad-Based Strength: All franchises and geographies posted year-over-year growth, with consumables up >20% and biopharma revenue up 20%. - New Product Launch: Introduced ProConnex® MixOne, a single-use mixer integrating technology from several fluid management acquisitions. - Sustainability: Published the 2024 Sustainability report, "Perspectives on Progress", detailing ESG initiatives.7 Detailed Financial Results Repligen achieved strong Q2 2025 revenue growth and improved GAAP profitability, with a solid cash and working capital position Q2 2025 Financial Performance In the second quarter of 2025, Repligen achieved total revenue of $182 million, a 15% increase as reported and 17% on an organic non-COVID basis. GAAP EPS was $0.26, up from $0.10 in the prior year, while adjusted EPS was $0.37, compared to $0.40 in Q2 2024 Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | Growth Type | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $182M | $159M | +15% | As Reported | | Organic Growth | - | - | +11% | Organic | | Organic Non-COVID Growth | - | - | +17% | Organic Non-COVID | | GAAP Income from Operations | $14M | $5M | +180% | - | | Adjusted Income from Operations | $22M | $20M | +10% | - | | GAAP EPS (Diluted) | $0.26 | $0.10 | +160% | - | | Adjusted EPS (Diluted) | $0.37 | $0.40 | -7.5% | - | Margin Summary For Q2 2025, GAAP gross margin was 50.0% and operating margin was 7.6%. On an adjusted basis, gross margin was flat year-over-year at 51.1%, while adjusted operating margin contracted to 12.0% from 12.8%. Adjusted EBITDA margin was stable at 17.6% Margin Performance: Q2 & 1H 2025 vs. 2024 | Margin Type | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP Gross Margin | 50.0% | 51.3% | 51.7% | 50.7% | | GAAP Operating Margin | 7.6% | 3.4% | 5.8% | 3.0% | | Adjusted Gross Margin | 51.1% | 51.1% | 52.3% | 50.2% | | Adjusted Operating Margin | 12.0% | 12.8% | 12.9% | 10.9% | | Adjusted EBITDA Margin | 17.6% | 17.6% | 18.5% | 16.0% | Balance Sheet and Cash Position As of June 30, 2025, the company held $709 million in cash, cash equivalents, and short-term investments, a decrease from $757 million at the end of 2024. Working capital remained stable at approximately $934 million Key Balance Sheet Data (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $708,855 | $757,355 | | Working capital | $933,853 | $939,254 | Full Year 2025 Financial Guidance The company raised its full-year 2025 revenue and EPS guidance, reflecting strong performance and favorable currency trends Updated Guidance Metrics Repligen raised its full-year 2025 revenue guidance to a range of $715-$735 million, representing 12.5%-15.5% organic non-COVID growth. The company projects adjusted EPS to be between $1.65 and $1.72, with an adjusted operating margin of 13.5%-14.5% FY 2025 Guidance (as of July 29, 2025) | Metric | GAAP Guidance | Adjusted (non-GAAP) Guidance | | :--- | :--- | :--- | | Total Reported Revenue | $715M - $735M | $715M - $735M | | Organic, Non-COVID Growth | 12.5% - 15.5% | - | | Gross Margin | 51.5% - 52.5% | 52% - 53% | | Operating Margin | 7% - 8% | 13.5% - 14.5% | | Adjusted EBITDA Margin | - | 19.5% - 20.5% | | Net Income | $48M - $51.5M | $93.5M - $97M | | EPS - Diluted | $0.85 - $0.92 | $1.65 - $1.72 | Guidance Assumptions The updated guidance incorporates a 1% tailwind from foreign currency, a shift from a previously assumed 1.5% headwind. It also accounts for a ~1% headwind from new modalities, which is offset by strength in other portfolio areas, and a modest impact from tariff surcharges - Key assumptions underpinning the FY2025 guidance include: - Foreign Currency: A 1% tailwind, revised from a prior 1.5% headwind assumption. - New Modalities: An approximate 1% headwind, which is more than offset by strength elsewhere in the business. - Tariffs: A modest impact from tariff surcharges is included.10 Reconciliation of GAAP to Non-GAAP Measures Non-GAAP adjustments clarify core business performance by excluding non-recurring or non-operational items from GAAP results Overview of Non-GAAP Measures The company provides non-GAAP financial measures to supplement its GAAP results. These adjustments exclude items such as acquisition and integration costs, restructuring charges, intangible amortization, non-cash interest expense, and other costs that management believes do not reflect the performance of ongoing operations - Non-GAAP results exclude various items to provide a clearer view of core business performance. Key exclusions include: - Acquisition and integration costs - Restructuring charges - Inventory step-up costs - Intangible amortization costs - Non-cash interest expense15 Revenue Growth Reconciliation For Q2 2025, the 15% reported revenue growth was adjusted for a 2% negative impact from acquisitions and a 2% negative impact from currency exchange, resulting in 11% organic growth. A further adjustment for a 6% positive impact from COVID-related revenue led to 17% organic non-COVID revenue growth Q2 2025 Revenue Growth Reconciliation | Description | Growth Rate | | :--- | :--- | | Total Reported Revenue Growth (GAAP) | 15% | | Less: Acquisition revenue | (2)% | | Less: Currency exchange | (2)% | | Organic Revenue Growth (Non-GAAP) | 11% | | Plus: COVID revenue impact | 6% | | Organic Non-COVID Revenue Growth (Non-GAAP) | 17% | Profitability Reconciliations In Q2 2025, GAAP income from operations of $13.9 million was adjusted to $21.9 million on a non-GAAP basis, primarily by excluding $10.2 million in intangible amortization and adding back a $7.9 million gain from contingent consideration. Similarly, GAAP Net Income of $14.9 million was adjusted to $21.2 million, with major adjustments for intangible amortization, contingent consideration, and non-cash interest expense - Key adjustments to reconcile GAAP to Non-GAAP profitability for Q2 2025 include: - Intangible Amortization: +$10.2 million adjustment to operating income. - Contingent Consideration: -$7.9 million adjustment to operating income due to a change in fair value. - Acquisition and Integration Costs: +$4.3 million adjustment to operating income. - Non-cash Interest Expense: +$3.8 million adjustment to net income.2425 Guidance Reconciliations The company's full-year 2025 GAAP net income guidance of $48.0-$51.5 million is reconciled to adjusted net income of $93.5-$97.0 million. The primary adjustments include excluding anticipated pre-tax amortization of intangibles ($38.8M), non-cash interest expense ($14.8M), and acquisition costs ($12.7M), while also factoring in a gain on contingent consideration (-$11.1M) FY 2025 Net Income Guidance Reconciliation (Low End) | Description | Amount (in thousands) | | :--- | :--- | | Guidance on Net Income (GAAP) | $48,000 | | Anticipated amortization of intangibles | $38,808 | | Non-cash interest expense | $14,826 | | Acquisition and integration costs | $12,677 | | Contingent Consideration | ($11,053) | | Other adjustments & tax effects | ($11,359) | | Guidance on Adjusted Net Income (Non-GAAP) | $93,500 |