Harvard Bioscience(HBIO) - 2025 Q2 - Quarterly Results

Executive Summary Harvard Bioscience exceeded Q2 2025 revenue guidance, achieved positive cash flow, and extended its credit deadline Q2 2025 Performance Highlights and Strategic Outlook Harvard Bioscience exceeded Q2 2025 revenue guidance, achieved positive operating cash flow, and extended its credit refinance deadline Q2 2025 Performance Metrics | Metric | Q2 2025 | Q2 2024 | | :------------- | :------ | :------ | | Revenues | $20.5M | $23.1M | | Gross Margin | 56.4% | 57.2% | | Cash Provided by Operations | $2.8M | ($0.8)M | - Credit Amendment: Refinance deadline extended to December 5, 2025[6][7] - CEO's Priorities: Grow core business and restructure balance sheet for revenue growth and margin expansion in 2026 and beyond[2] Detailed Financial Performance Q2 and H1 2025 saw revenue and gross margin declines, with H1 net loss widening due to goodwill impairment Second Quarter 2025 Results Q2 2025 saw decreased revenue and gross margin, but improved net loss, positive cash flow, and increased Adjusted EBITDA Revenue and Gross Margin Analysis Q2 2025 revenues decreased by 11.25% to $20.5 million, with gross margin slightly declining to 56.4% Q2 2025 Revenue and Gross Margin | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :------------- | :------ | :------ | :----------- | | Revenues | $20.5M | $23.1M | -11.25% | | Gross Margin | 56.4% | 57.2% | -0.8 ppts | Profitability and Cash Flow Metrics Q2 2025 net loss improved to ($2.3 million), Adjusted EBITDA increased, and operating cash flow turned positive Q2 2025 Profitability and Cash Flow | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------- | :------- | :------- | :----------- | | Net Loss | ($2.3)M | ($2.9)M | +20.69% | | Adjusted EBITDA | $1.5M | $1.3M | +15.38% | | Cash Provided by Operations | $2.8M | ($0.8)M | N/A (significant improvement) | Six Months Ended June 30, 2025 Results H1 2025 saw declining revenues and gross margin, a widened net loss due to impairment, but improved operating cash flow Revenue and Gross Margin Analysis H1 2025 revenues decreased by 11.34% to $42.2 million, with gross margin declining to 56.2% H1 2025 Revenue and Gross Margin | Metric | 6M 2025 | 6M 2024 | Change (YoY) | | :------------- | :------ | :------ | :----------- | | Revenues | $42.2M | $47.6M | -11.34% | | Gross Margin | 56.2% | 58.8% | -2.6 ppts | Profitability and Cash Flow Metrics H1 2025 net loss significantly widened to ($52.6 million) due to impairment, while operating cash flow substantially improved H1 2025 Profitability and Cash Flow | Metric | 6M 2025 | 6M 2024 | Change (YoY) | | :----------------------- | :-------- | :------- | :----------- | | Net Loss | ($52.6)M | ($7.6)M | -592.11% | | Adjusted EBITDA | $2.3M | $2.8M | -17.86% | | Cash Provided by Operations | $5.7M | $0.6M | +850.00% | - The significant increase in net loss was primarily due to a $48.0 million goodwill impairment in the first quarter of 2025[9][20][26] Third Quarter 2025 Financial Guidance Q3 2025 revenue guidance is $19-21 million, with an expected gross margin between 56% and 58% Q3 2025 Guidance | Metric | Q3 2025 Guidance | | :------------- | :--------------- | | Revenues | $19M - $21M | | Gross Margin | 56% - 58% | Financial Position and Liquidity Management The company amended its credit agreement, managing debt and liquidity amidst reduced assets and equity Credit Agreement and Debt Management Harvard Bioscience amended its credit agreement, waiving defaults and suspending Q3 2025 covenant testing - Lenders waived events of default for failure to achieve prior refinancing milestones and non-compliance with financial covenants as of June 30, 2025[5] - Financial covenants will not be tested for the fiscal quarter ended September 30, 2025, provided the company complies with payment obligations and minimum liquidity requirements[5] - Company agreed to accomplish steps towards the refinancing or repayment of the credit agreement by no later than December 5, 2025[6] Balance Sheet Overview Total assets decreased significantly due to reduced goodwill, while cash increased and stockholders' equity declined Condensed Consolidated Balance Sheets | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :-------------------------- | :--------------------------- | :------------------------------- | :-------------------- | | Cash and cash equivalents | $7,442 | $4,108 | +$3,334 | | Total current assets | $44,969 | $45,117 | -$148 | | Goodwill and other intangibles | $19,291 | $67,456 | -$48,165 | | Total assets | $80,093 | $126,644 | -$46,551 | | Debt | $34,864 | $36,956 | -$2,092 | | Total current liabilities | $55,202 | $54,958 | +$244 | | Stockholders' equity | $15,733 | $63,340 | -$47,607 | Cash Flow Statement Analysis H1 2025 saw increased net cash from operations, but outflows from investing and financing due to debt repayment Condensed Consolidated Statements of Cash Flows | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :-------------------- | | Net cash provided by operating activities | $5,741 | $557 | +$5,184 | | Net cash (used in) provided by investing activities | ($916) | $233 | -$1,149 | | Net cash used in financing activities | ($2,462) | ($878) | -$1,584 | | Increase (decrease) in cash and cash equivalents | $3,334 | ($235) | +$3,569 | - Repayment of term debt amounted to $2.0 million during the six months ended June 30, 2025[24] Non-GAAP Financial Reporting Non-GAAP measures clarify core operations, excluding items like goodwill impairment and stock-based compensation Understanding Non-GAAP Measures Non-GAAP measures clarify core business performance, excluding specific items, as a supplement to GAAP information - Non-GAAP financial information provides investors with an enhanced understanding of the underlying operations of the business[13] - Excluded items from non-GAAP measures include stock-based compensation, amortization of intangibles related to acquisitions, other operating expenses, loss on equity securities, income taxes, and the tax impact of reconciling items[13] - Non-GAAP financial information should be considered in addition to, not as a substitute for, GAAP financial information[14] GAAP to Non-GAAP Reconciliation Tables This section reconciles GAAP to non-GAAP measures for Q2 and H1 2025/2024, detailing adjustments GAAP to Non-GAAP Reconciliation (Operating Income, Net Income, EBITDA, EPS) | Metric | Q2 2025 (GAAP, in thousands) | Q2 2025 (Adjusted, in thousands) | 6M 2025 (GAAP, in thousands) | 6M 2025 (Adjusted, in thousands) | | :-------------------------------- | :------------- | :----------------- | :------------- | :----------------- | | Operating loss (income) | ($819) | $1,045 | ($50,487) | $1,364 | | Net loss (income) | ($2,282) | ($235) | ($52,622) | ($787) | | Adjusted EBITDA | N/A | $1,500 | N/A | $2,314 | | Diluted loss (earnings) per share | ($0.05) | ($0.01) | ($1.19) | ($0.02) | Net Debt Reconciliation | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :------- | :--------------------------- | :--------------------------- | | Net debt | $27,908 | $31,992 | Corporate Information and Disclosures This section covers Harvard Bioscience's overview, forward-looking statements, and investor relations Company Overview Harvard Bioscience develops and sells technologies for life science applications, serving global academic and pharmaceutical clients - Harvard Bioscience is a leading developer, manufacturer, and seller of technologies, products, and services enabling fundamental advances in life science applications[15] - Applications include research, drug and therapy discovery, bio-production, and preclinical testing for pharmaceutical and therapy development[15] - Customers range from academic institutions and government laboratories to leading pharmaceutical, biotechnology, and contract research organizations globally, with operations in the US, Europe, and China[15] Forward-Looking Statements Disclaimer This section contains forward-looking statements about future performance, subject to uncertainties, with no updates - Forward-looking statements concern expected future financial and operational performance, including revenues, gross margin, cash and debt position, balance sheet, growth, and new product introductions[17] - Statements also cover matters related to the company's ability to continue as a going concern, fund operations, comply with credit agreement terms, or refinance outstanding indebtedness[17] - Forward-looking statements do not guarantee future performance and involve known and unknown uncertainties, risks, assumptions, and contingencies, with no obligation for the company to update them[17] Investor Relations and Communication Harvard Bioscience provided investor contact details and announced a Q2 2025 earnings call and webcast - Investor inquiries can be directed to Mark Frost, Interim Chief Financial Officer, via investors@harvardbioscience.com or (508) 893-3120[18] - A conference call and webcast were scheduled for August 11, 2025, at 8:00 a.m. Eastern Time, with separate registration processes for analysts and audio-only participants[11][12]