Bio-Techne(TECH) - 2025 Q4 - Annual Results

Executive Summary & Highlights CEO Commentary Bio-Techne CEO Kim Kelderman reported robust Q4 FY2025 performance, driven by cell therapy and protein analysis, with a strategic divestiture of Exosome Diagnostics to enhance profitability - The company demonstrated robust performance in Q4 FY2025, meeting expectations, particularly with strong growth in cell therapy and protein analysis instrument pillars, supported by a resilient pharmaceutical market[6] - The company announced the divestiture of its Exosome Diagnostics business, including the ExoDx Prostate Test (EPI), to immediately enhance profitability and increase focus on high-growth, non-CLIA product lines[6][8] Key Financial & Strategic Highlights Q4 FY2025 organic revenue grew 3% to $317 million, with full-year organic revenue up 5% to $1.2 billion, while adjusted diluted EPS increased 8.2% to $0.53, supported by strong Protein Sciences and strategic divestitures Key Financial Metrics for Q4 and Full Year Fiscal 2025 | Metric | Q4 FY2025 | Q4 FY2024 | Y-o-Y Change | Full Year FY2025 | Full Year FY2024 | Y-o-Y Change | | :------------------- | :----------------- | :----------------- | :--------- | :------------- | :------------- | :--------- | | Organic Revenue | $317.0 Million | - | +3% | $1.2 Billion | - | +5% | | Reported Revenue | $317.0 Million | - | +4% | $1.2 Billion | - | +5% | | GAAP EPS | $(0.11) | $0.25 | -144% | $0.46 | $1.05 | -56.2% | | Adjusted EPS | $0.53 | $0.49 | +8.2% | $1.92 | $1.77 | +8.5% | | Protein Sciences Organic Growth | +4% | - | - | +5% | - | - | Financial Performance - Fourth Quarter Fiscal 2025 Revenue Analysis (Q4) Net sales for Q4 FY2025 increased 4% to $317 million, with organic revenue growing 3%, positively impacted by foreign exchange rates and negatively by non-recurring revenue from businesses held for sale Q4 FY2025 Revenue Overview | Metric | Amount (Million USD) | Y-o-Y Change | | :----- | :------------------- | :----------- | | Net Sales | $317.0 | +4% | | Organic Revenue | - | +3% | | Foreign Exchange Impact | - | +2% (Favorable) | | Businesses Held for Sale Impact | - | -1% (Unfavorable) | GAAP Earnings (Q4) Q4 FY2025 GAAP diluted EPS was $(0.11), a 144% decrease from $0.25 in the prior year, primarily due to an impairment charge related to the Exosome Diagnostics business Q4 FY2025 GAAP Earnings | Metric | Q4 FY2025 | Q4 FY2024 | Y-o-Y Change | | :----------------- | :----------------- | :----------------- | :--------- | | GAAP EPS | $(0.11) | $0.25 | -144% | | GAAP Operating Income | $(23.9) Million USD | $45.8 Million USD | -152% | | GAAP Operating Margin | (7.5)% | 15.0% | -22.5 pp | | Impacting Factors | Exosome Diagnostics business impairment | - | - | Non-GAAP Earnings (Q4) Adjusted diluted EPS for Q4 FY2025 increased to $0.53 from $0.49 in the prior year, while adjusted operating margin decreased to 32.0% from 33.5%, mainly due to an unfavorable product mix in the Diagnostics and Spatial Biology segment Q4 FY2025 Non-GAAP Earnings | Metric | Q4 FY2025 | Q4 FY2024 | Y-o-Y Change | | :----------------- | :----------------- | :----------------- | :--------- | | Adjusted EPS | $0.53 | $0.49 | +8.2% | | Adjusted Operating Income | $101.3 Million USD | $101.8 Million USD | -0.5% | | Adjusted Operating Margin | 32.0% | 33.5% | -1.5 pp | | Impacting Factors | Unfavorable product mix (Diagnostics and Spatial Biology segment) | - | - | Financial Performance - Full Year Fiscal 2025 Revenue Analysis (Full Year) Full-year FY2025 net sales increased 5% to $1.2 billion, with organic revenue also growing 5%, and no significant impact from foreign exchange rates or businesses held for sale Full Year FY2025 Revenue Overview | Metric | Amount (Billion USD) | Y-o-Y Change | | :----- | :------------------- | :----------- | | Net Sales | $1.2 | +5% | | Organic Revenue | - | +5% | | Foreign Exchange Impact | No significant impact | - | | Businesses Held for Sale Impact | No significant impact | - | GAAP Earnings (Full Year) Full-year FY2025 GAAP diluted EPS was $0.46, a 56.2% decrease from $1.05 in the prior year, primarily impacted by asset impairment, restructuring costs, and a non-recurring arbitration award Full Year FY2025 GAAP Earnings | Metric | Full Year FY2025 | Full Year FY2024 | Y-o-Y Change | | :----------------- | :------------- | :------------- | :--------- | | GAAP EPS | $0.46 | $1.05 | -56.2% | | GAAP Operating Income | $102.3 Million USD | $206.7 Million USD | -51% | | GAAP Operating Margin | 8.4% | 17.8% | -9.4 pp | | Impacting Factors | Asset impairment held for sale, restructuring costs, non-recurring arbitration award | - | - | Non-GAAP Earnings (Full Year) Full-year FY2025 adjusted diluted EPS increased to $1.92 from $1.77 in the prior year, with adjusted operating margin slightly decreasing to 31.6% due to the reinstatement of incentive compensation accruals and an unfavorable product mix Full Year FY2025 Non-GAAP Earnings | Metric | Full Year FY2025 | Full Year FY2024 | Y-o-Y Change | | :----------------- | :------------- | :------------- | :--------- | | Adjusted EPS | $1.92 | $1.77 | +8.5% | | Adjusted Operating Income | $383.6 Million USD | $370.2 Million USD | +4% | | Adjusted Operating Margin | 31.6% | 32.1% | -0.5 pp | | Impacting Factors | Reinstatement of incentive compensation accruals, unfavorable product mix | - | - | Segment Results Protein Sciences Segment The Protein Sciences segment reported a 6% increase in net sales to $226.5 million in Q4 FY2025, with organic revenue growth of 4% and an improved operating margin of 43.6%, driven by favorable volume leverage and ongoing profitability initiatives Protein Sciences Segment Performance Overview | Metric | Q4 FY2025 | Q4 FY2024 | Y-o-Y Change | Full Year FY2025 | Full Year FY2024 | Y-o-Y Change | | :----------------- | :----------------- | :----------------- | :--------- | :------------- | :------------- | :--------- | | Net Sales | $226.5 Million USD | $214.0 Million USD | +6% | $870.2 Million USD | $830.9 Million USD | +5% | | Organic Revenue Growth | +4% | - | - | +5% | - | - | | Operating Margin | 43.6% | 43.0% | +0.6 pp | 42.6% | 42.7% | -0.1 pp | | Impacting Factors (Q4) | Favorable volume leverage, profitability initiatives | - | - | - | - | - | Diagnostics and Spatial Biology Segment The Diagnostics and Spatial Biology segment experienced a 1% decrease in net sales to $89.7 million in Q4 FY2025, with organic revenue also down 1%, and an operating margin decline to 6.0% primarily due to an unfavorable product mix and an $83.1 million impairment charge for Exosome Diagnostics Diagnostics and Spatial Biology Segment Performance Overview | Metric | Q4 FY2025 | Q4 FY2024 | Y-o-Y Change | Full Year FY2025 | Full Year FY2024 | Y-o-Y Change | | :----------------- | :----------------- | :----------------- | :--------- | :------------- | :------------- | :--------- | | Net Sales | $89.7 Million USD | $90.7 Million USD | -1% | $346.3 Million USD | $326.4 Million USD | +6% | | Organic Revenue Growth | -1% | - | - | +6% | - | - | | Operating Margin | 6.0% | 12.5% | -6.5 pp | 6.2% | 7.5% | -1.3 pp | | Impacting Factors (Q4) | Unfavorable product mix, Exosome Diagnostics business impairment $83.1 Million USD | - | - | - | - | - | Non-GAAP Financial Measures Definition and Rationale The company provides non-GAAP financial measures to assess operational performance and inform internal decisions, including incentive compensation, by excluding non-recurring or non-core items for transparent and comparable period results - Non-GAAP metrics are used for performance evaluation and internal decision-making, including incentive compensation, aiming to provide more transparent and comparable period results[21] - Organic revenue excludes acquisitions, foreign exchange impacts, businesses held for sale, and certain equity method investee revenues to provide more comparable revenue results[22] - Adjusted gross margin, operating margin, EBITDA, and net earnings exclude non-recurring or non-core items such as stock-based compensation, acquisition inventory step-up, intangible asset amortization, restructuring costs, asset impairment, acquisition-related expenses, and certain litigation costs[23][24][25] Reconciliation of Adjusted Gross Margin Q4 FY2025 GAAP gross margin was 62.7%, while adjusted gross margin was 70.0%, with full-year GAAP gross margin at 64.8% and adjusted gross margin at 70.4%, primarily adjusted for acquisition inventory step-up, intangible asset amortization, stock-based compensation, and restructuring costs Reconciliation of Adjusted Gross Margin | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :--------------------------------- | :----------------- | :----------------- | :------------- | :------------- | | GAAP Gross Margin | 62.7% | 66.4% | 64.8% | 66.4% | | Adjusted Gross Margin | 70.0% | 71.1% | 70.4% | 71.0% | | Key Adjustments (Q4) | Acquisition inventory step-up $0.2M, Intangible asset amortization $10.6M, Stock-based compensation $0.3M, Restructuring costs $12.1M | - | - | - | Reconciliation of Adjusted Operating Margin Q4 FY2025 GAAP operating margin was (7.5)%, while adjusted operating margin was 32.0%, with full-year GAAP operating margin at 8.4% and adjusted operating margin at 31.6%, primarily adjusted for intangible asset amortization, stock-based compensation, restructuring costs, and asset impairment held for sale Reconciliation of Adjusted Operating Margin | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :--------------------------------- | :----------------- | :----------------- | :------------- | :------------- | | GAAP Operating Margin | (7.5)% | 15.0% | 8.4% | 17.8% | | Adjusted Operating Margin | 32.0% | 33.5% | 31.6% | 32.1% | | Key Adjustments (Q4) | Intangible asset amortization $18.2M, Stock-based compensation $4.7M, Restructuring costs $13.2M, Asset impairment held for sale $84.2M | - | - | - | Reconciliation of Adjusted Net Earnings and EPS Q4 FY2025 GAAP pre-tax net earnings were $(22.9) million, with adjusted pre-tax net earnings at $105.1 million and adjusted diluted EPS at $0.53, reflecting similar adjustments to operating margin and the application of a non-GAAP tax rate Reconciliation of Adjusted Net Earnings and EPS | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :------------------------- | :----------------- | :----------------- | :------------- | :------------- | | GAAP Pre-Tax Net Earnings | $(22.9) Million USD | $41.7 Million USD | $98.5 Million USD | $185.7 Million USD | | Adjusted Pre-Tax Net Earnings | $105.1 Million USD | $100.8 Million USD | $390.4 Million USD | $365.2 Million USD | | Adjusted Diluted EPS | $0.53 | $0.49 | $1.92 | $1.77 | | Key Adjustments (Q4) | Intangible asset amortization $18.2M, Stock-based compensation $4.7M, Restructuring costs $13.2M, Asset impairment held for sale $84.2M | - | - | - | Reconciliation of Adjusted Tax Rate Q4 FY2025 GAAP effective tax rate was 22.7%, with an adjusted tax rate of 21.5%, while full-year GAAP effective tax rate was 25.5% and adjusted tax rate was 21.5%, primarily adjusted for discrete items, annual forecast updates, and tax rate impact items like stock-based compensation Reconciliation of Adjusted Tax Rate | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :----------------- | :----------------- | :----------------- | :------------- | :------------- | | GAAP Effective Tax Rate | 22.7% | 2.6% | 25.5% | 9.5% | | Adjusted Tax Rate | 21.5% | 22.0% | 21.5% | 22.0% | | Key Adjustments (Q4) | Discrete items +13.9%, Annual forecast update -10.3%, Stock-based compensation -0.9% | - | - | - | Reconciliation of Adjusted EBITDA Q4 FY2025 EBITDA was $5.8 million, with adjusted EBITDA at $115.6 million, while full-year EBITDA was $213.0 million and adjusted EBITDA was $429.6 million, with adjustments including depreciation, amortization, stock-based compensation, restructuring costs, and asset impairment held for sale Reconciliation of Adjusted EBITDA | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :--------------------------------- | :----------------- | :----------------- | :------------- | :------------- | | EBITDA | $5.8 Million USD | $71.3 Million USD | $213.0 Million USD | $309.8 Million USD | | Adjusted EBITDA | $115.6 Million USD | $111.1 Million USD | $429.6 Million USD | $411.0 Million USD | | Key Adjustments (Q4) | Stock-based compensation $4.7M, Restructuring costs $13.2M, Asset impairment held for sale $84.2M | - | - | - | Consolidated Financial Statements Condensed Consolidated Statements of Earnings Q4 FY2025 net sales were $317.0 million, resulting in a net loss of $17.7 million and diluted loss per share of $0.11, while full-year net sales reached $1.22 billion with net earnings of $73.4 million and diluted EPS of $0.46 Condensed Consolidated Statements of Earnings Summary | Metric | Q4 FY2025 | Q4 FY2024 | Full Year FY2025 | Full Year FY2024 | | :------------------- | :----------------- | :----------------- | :------------- | :------------- | | Net Sales | $316,964 Thousand USD | $306,098 Thousand USD | $1,219,635 Thousand USD | $1,159,060 Thousand USD | | Operating Income | $(23,860) Thousand USD | $45,822 Thousand USD | $102,255 Thousand USD | $206,686 Thousand USD | | Net Earnings | $(17,677) Thousand USD | $40,587 Thousand USD | $73,400 Thousand USD | $168,105 Thousand USD | | Diluted EPS | $(0.11) | $0.25 | $0.46 | $1.05 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $2.56 billion, a decrease from $2.70 billion in the prior year, with cash and equivalents increasing to $162.2 million, total liabilities at $655.2 million, and shareholders' equity at $1.92 billion Condensed Consolidated Balance Sheets Summary | Metric | June 30, 2025 | June 30, 2024 | | :------------------- | :-------------- | :-------------- | | Cash and Equivalents | $162,186 Thousand USD | $151,791 Thousand USD | | Total Assets | $2,557,868 Thousand USD | $2,703,867 Thousand USD | | Total Liabilities | $655,159 Thousand USD | $638,017 Thousand USD | | Shareholders' Equity | $1,918,808 Thousand USD | $2,068,850 Thousand USD | Condensed Consolidated Statements of Cash Flows Full-year FY2025 net cash provided by operating activities was $287.6 million, net cash used in investing activities was $35.2 million, and net cash used in financing activities was $253.9 million, resulting in cash and equivalents of $162.2 million at period-end Condensed Consolidated Statements of Cash Flows Summary | Metric | Full Year FY2025 | Full Year FY2024 | | :----------------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities | $287,556 Thousand USD | $298,981 Thousand USD | | Net Cash Used in Investing Activities | $(35,183) Thousand USD | $(203,030) Thousand USD | | Net Cash Used in Financing Activities | $(253,905) Thousand USD | $(122,398) Thousand USD | | Cash and Equivalents at Period End | $162,186 Thousand USD | $151,791 Thousand USD | Company Information & Forward-Looking Statements Company Overview Bio-Techne Corporation is a global life sciences company providing innovative tools and bioactive reagents for research and clinical diagnostics, supporting bioprocess and disease research, drug discovery, and clinical testing - Bio-Techne Corporation is a global life sciences company, offering innovative tools and bioactive reagents for research and clinical diagnostics[31] Company Key Information | Metric | Data | | :----- | :----- | | FY2025 Net Sales | Approximately $1.2 Billion USD | | Global Employees | Approximately 3,100 | Forward-Looking Statements This press release contains forward-looking statements subject to risks and uncertainties that could impact actual operating results, including new brand initiatives, business integration, product launches, funding for customer research, price competition, macroeconomic conditions, and currency fluctuations - Forward-looking statements involve risks and uncertainties that could affect actual operating results, including new brand and marketing initiatives, integration of new businesses and leadership, new product launches and acceptance, customer research funding and focus, increased price competition from biotechnology research product manufacturers, macroeconomic conditions, foreign currency fluctuations, and R&D costs and outcomes[29] - Investors should consult the "Risk Factors" section in the company's annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC for additional relevant information[30]