CYTEK(CTKB) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Overview This section summarizes key financial and operational achievements and strategic direction for the quarter Second Quarter Highlights Cytek Biosciences reported a 2% decrease in total revenue for Q2 2025, reaching $45.6 million, primarily due to lower product revenue in EMEA and APAC, offset by growth in service revenue and U.S. product revenue | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------- | :-------- | :-------- | :----------- | | Total Revenue | $45.6M | $46.6M | -2% | | Recurring Revenue Growth | - | - | +16% | - Expanded total installed base to 3,295 Cytek instruments, adding 146 units in Q2 2025, representing 3% unit growth of Cytek FSP® instruments compared to Q2 2024[8] - Launched the Cytek Aurora™ Evo system, a new full spectrum flow cytometer with faster sample throughput, automated startup/shutdown, enhanced resolution for small particle detection, and data harmonization[8] - Repurchased $4.5 million of Cytek common stock in open market purchases during the second quarter of 2025[8] CEO Commentary and Strategic Focus Dr. Wenbin Jiang, CEO, highlighted steady growth in FSP unit placements and recurring revenue despite a challenging macro environment - Achieved steady growth in FSP unit placements and recurring revenue businesses despite a challenging macro environment[4] - Launched the Cytek Aurora Evo system, expected to accelerate broader adoption of solutions[4] - Strategic focus includes expanding the installed base globally, growing recurring revenue through service and reagent businesses, and strengthening market leadership through innovation[5] Second Quarter 2025 Financial Results (GAAP) This section details the company's GAAP financial performance for the quarter, including revenue, gross profit, operating expenses, and net loss Revenue and Gross Profit Analysis Total revenue for Q2 2025 decreased by 2% year-over-year to $45.6 million, primarily due to lower product revenue in EMEA and APAC, partially offset by growth in service revenue and U.S. product revenue | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------- | :--------------------- | :--------------------- | :----------- | | Total Revenue, net | $45,602 | $46,617 | -2% | | Product Revenue | $31,415 | $34,576 | -9.1% | | Service Revenue | $14,187 | $12,041 | +17.8% | | GAAP Gross Profit | $23,867 | $25,436 | -6.2% | | GAAP Gross Profit Margin | 52% | 55% | -3 ppts | Operating Expenses and Profitability Operating expenses increased by 2% to $34.5 million in Q2 2025, leading to an increased loss from operations of $10.6 million and a net loss of $5.6 million | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------------- | :--------------------- | :--------------------- | :----------- | | Total Operating Expenses | $34,491 | $33,963 | +1.5% | | Research and Development | $8,826 | $10,001 | -11.8% | | Sales and Marketing | $12,134 | $12,268 | -1.1% | | General and Administrative | $13,531 | $11,694 | +15.7% | | Loss from Operations | $(10,624) | $(8,527) | +24.6% | | Net Loss | $(5,583) | $(10,434) | -46.5% | Consolidated Statements of Operations and Comprehensive Loss This section presents the unaudited consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2025, and June 30, 2024 | (In thousands, except share and per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue, net: | | | | | | Product | $31,415 | $34,576 | $59,525 | $68,698 | | Service | 14,187 | 12,041 | 27,534 | 22,779 | | Total revenue, net | 45,602 | 46,617 | 87,059 | 91,477 | | Cost of sales: | | | | | | Product | 14,921 | 15,808 | 30,450 | 32,554 | | Service | 6,814 | 5,373 | 12,585 | 10,474 | | Total cost of sales | 21,735 | 21,181 | 43,035 | 43,028 | | Gross profit | 23,867 | 25,436 | 44,024 | 48,449 | | Operating expenses: | | | | | | Research and development | 8,826 | 10,001 | 18,550 | 19,796 | | Sales and marketing | 12,134 | 12,268 | 24,643 | 24,811 | | General and administrative | 13,531 | 11,694 | 26,429 | 23,102 | | Total operating expenses | 34,491 | 33,963 | 69,622 | 67,709 | | Loss from operations | (10,624) | (8,527) | (25,598) | (19,260) | | Other income (expense), net | 3,849 | 1,341 | 7,557 | 3,081 | | Loss before income taxes | (6,775) | (7,186) | (18,041) | (16,179) | | (Benefit from) provision for income taxes | (1,192) | 3,248 | (1,056) | 424 | | Net loss | $(5,583) | $(10,434) | $(16,985) | $(16,603) | | Net loss per share, basic and diluted | $(0.04) | $(0.08) | $(0.13) | $(0.13) | | Net comprehensive loss | $(5,013) | $(9,075) | $(17,040) | $(15,523) | Balance Sheet and Liquidity This section provides an overview of the company's financial position, including assets, liabilities, equity, and cash and marketable securities Consolidated Balance Sheets This section presents the unaudited consolidated balance sheets as of June 30, 2025, and the audited balance sheets as of December 31, 2024 | (In thousands, except share and per share data) | June 30, 2025 (unaudited) | December 31, 2024 (audited) | | :---------------------------------------------- | :------------------------ | :-------------------------- | | Assets | | | | Current assets: | | | | Cash and cash equivalents | $75,470 | $98,716 | | Marketable securities | 186,552 | 179,145 | | Total current assets | $382,825 | $396,446 | | Total assets | $493,320 | $499,500 | | Liabilities and stockholders' equity | | | | Total current liabilities | 73,270 | $67,663 | | Total liabilities | $115,763 | $103,763 | | Total stockholders' equity | $377,557 | $395,737 | | Total liabilities and stockholders' equity | $493,320 | $499,500 | Cash and Marketable Securities As of June 30, 2025, Cytek's cash and marketable securities totaled $262.0 million, a decrease of $3.6 million from March 31, 2025 | Metric | June 30, 2025 | March 31, 2025 | Change | | :-------------------------- | :------------ | :------------- | :----- | | Cash and marketable securities | $262.0M | $265.6M | -$3.6M | - The decrease of $3.6 million in cash and marketable securities occurred despite a $4.5 million cash expenditure for the repurchase of Cytek shares during the second quarter[14] Non-GAAP Financial Measures This section presents and reconciles non-GAAP financial metrics, such as adjusted gross profit and EBITDA, to provide additional insights into operational performance Adjusted Gross Profit and Margin Adjusted gross profit for Q2 2025 was $25.5 million, a 6.2% decrease from Q2 2024, with the adjusted gross profit margin at 56% | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------------- | :--------------------- | :--------------------- | :----------- | | Non-GAAP Adjusted Gross Profit | $25,458 | $27,139 | -6.2% | | Non-GAAP Adjusted Gross Margin | 56% | 58% | -2 ppts | Adjusted EBITDA Adjusted EBITDA for Q2 2025 was $1.3 million, a decrease from $2.9 million in Q2 2024, with Adjusted EBITDA excluding investment income showing a loss of $0.8 million | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :--------------------- | :--------------------- | :----------- | | Non-GAAP Adjusted EBITDA | $1,270 | $2,947 | -56.9% | | Non-GAAP Adjusted EBITDA (excl. investment income) | $(778) | $1,046 | -174.4% | Reconciliation of GAAP to Non-GAAP Measures This section provides a detailed reconciliation of GAAP financial measures to non-GAAP measures for the three months ended June 30, 2025 and 2024 | (In thousands) | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------ | | GAAP Gross profit | $23,867 | $25,436 | | Stock based compensation | $1,110 | $1,200 | | Amortization of acquisition-related intangible assets | $481 | $503 | | Non-GAAP Adjusted gross profit | $25,458 | $27,139 | | GAAP Gross margin | 52% | 55% | | Non-GAAP Adjusted gross margin | 56% | 58% | | GAAP Net income | $(5,583) | $(10,434) | | Depreciation and amortization | $2,988 | $2,479 | | Provision for (benefit from) income taxes | $(1,192) | $3,248 | | Interest income | $(555) | $(1,416) | | Interest expense | $414 | $134 | | Foreign currency exchange loss (gain) | $(1,593) | $1,784 | | Stock based compensation | $6,791 | $7,152 | | Non-GAAP Adjusted EBITDA | $1,270 | $2,947 | | Investment income | $(2,048) | $(1,901) | | Non-GAAP Adjusted EBITDA excluding investment income | $(778) | $1,046 | 2025 Financial Outlook This section outlines the company's updated revenue guidance and growth expectations for the full fiscal year 2025 2025 Revenue Guidance Cytek Biosciences has narrowed its full-year 2025 revenue guidance to a range of $196 million to $205 million, representing a growth rate of -2% to +2% over full-year 2024 | Metric | 2025 Guidance | | :-------------------- | :------------ | | Full Year Revenue | $196M - $205M | | YoY Growth Rate | -2% to +2% | Company Information This section offers background on Cytek Biosciences, its technology, product portfolio, and contact details for media and investors About Cytek Biosciences, Inc. Cytek Biosciences is a leading cell analysis solutions company known for its patented Full Spectrum Profiling™ (FSP®) technology, enabling high-resolution, high-content, and high-sensitivity cell analysis - Cytek Biosciences (Nasdaq: CTKB) is a leading cell analysis solutions company[17] - Utilizes patented Full Spectrum Profiling™ (FSP®) technology for high-resolution, high-content, and high-sensitivity cell analysis[17] - Product platforms include FSP instruments (Cytek Aurora™, Northern Lights™, Cytek Aurora™ CS, Cytek Aurora™ Evo), Cytek Orion™ reagent system, Enhanced Small Particle™ (ESP™) detection technology, Amnis® and Guava® brands, and associated reagents, software, and services[17][18] - Cytek's products are for research use only, with exceptions for clinical use in China and the EU for the Northern Lights-CLC system and certain reagents[19] Webcast Information Cytek will host a conference call and webcast on Wednesday, August 6, 2025, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss its second quarter 2025 financial results - Conference call and webcast to be held on Wednesday, August 6, 2025, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time[16] - Webcast access available at investors.cytekbio.com[16] Disclosure Channels Cytek utilizes its website, LinkedIn page, and X (formerly Twitter) account as official channels for distributing material information about the company - Cytek uses its website (www.cytekbio.com), LinkedIn page, and X (formerly Twitter) account as channels for distributing information[20] - These channels are used to comply with disclosure obligations under Regulation FD, and investors should monitor them alongside SEC filings and news releases[20] Media and Investor Contacts Contact information is provided for media inquiries through Stephanie Olsen of Lages & Associates and for investor relations through Paul Goodson - Media Contact: Stephanie Olsen, Lages & Associates, (949) 453-8080, stephanie@lages.com[24] - Investor Contact: Paul Goodson, Head of Investor Relations, Cytek Biosciences, pgoodson@cytekbio.com[24] Legal and Financial Disclosures This section contains important cautionary statements regarding non-GAAP financial information and forward-looking statements, highlighting associated risks Statement Regarding Use of Non-GAAP Financial Information Cytek presents non-GAAP financial measures, such as Adjusted gross profit and Adjusted EBITDA, to supplement GAAP results, aiding in performance comparison and benchmarking - Non-GAAP financial measures (Adjusted gross profit, Adjusted gross profit margin, Adjusted EBITDA, and Adjusted EBITDA excluding investment income) are presented to supplement U.S. GAAP results[21] - Management uses non-GAAP measures to exclude certain non-cash and other expenses not indicative of core operating results, aiding in performance comparison and external benchmarking[21] - Investors are encouraged to carefully consider GAAP results and the provided reconciliations to fully understand the business[21] Forward-Looking Statements This section contains a cautionary statement regarding forward-looking statements, which are subject to various known and unknown risks and uncertainties that could cause actual results to differ materially - The press release contains forward-looking statements subject to risks, uncertainties, and other factors that may cause actual results to differ materially[22] - Key risk factors include global geopolitical, economic, and market conditions; impacts of export controls, tariffs, and NIH funding policies; ability to forecast demand, manage growth, and maintain relationships; competition; and intellectual property protection[22] - Cytek disclaims any obligation to update forward-looking statements, except as required by law, and advises against relying on them as of any date subsequent to the press release date[23]