Bio-Techne(US:TECH)2025-11-05 21:31Financial Performance - Consolidated net sales for the quarter ended September 30, 2025 were $286.6 million, a decrease of 1% compared to the same prior year period [103]. - Organic revenue for the quarter ended September 30, 2025 decreased 1%, with foreign currency exchange having a favorable impact of 1% [103]. - Consolidated gross margin for the quarter ended September 30, 2025 was 65.6%, up from 63.2% in the prior year [104]. - Adjusted gross margin for the quarter ended September 30, 2025 was 70.2%, compared to 69.5% for the same quarter in 2024 [104]. - The Protein Sciences segment's net sales for the quarter ended September 30, 2025 were $202.2 million, a decrease of 1% compared to the prior year [110]. - The Diagnostics and Spatial Biology segment's net sales for the quarter ended September 30, 2025 were $79.5 million, a decrease of 4% compared to the prior year [112]. Expenses - Selling, general and administrative expenses decreased 2% to $116.2 million for the quarter ended September 30, 2025 [108]. - Research and development expenses increased 2% to $24.2 million for the quarter ended September 30, 2025 [109]. Cash Flow and Investments - Cash and cash equivalents were $145.0 million as of September 30, 2025, down from $162.2 million as of June 30, 2025 [120]. - The Company generated cash of $27.6 million from operating activities in the first quarter of fiscal 2026, compared to $63.9 million in the first quarter of fiscal 2025 [123]. - In the first quarter of fiscal 2026, the Company received $4.6 million for assets held-for-sale, with no comparable activity in the first quarter of fiscal 2025 [126]. - The Company invested $15.0 million into Spear Bio during the first quarter of fiscal 2025, with no comparable activity in the first quarter of fiscal 2026 [126]. - Cash dividends paid to common shareholders were $12.4 million in the first quarter of fiscal 2026, compared to $12.7 million in fiscal 2025 [128]. - Cash received from the exercise of stock options was $23.5 million in the first quarter of fiscal 2026, down from $25.1 million in fiscal 2025 [129]. - The Company made repayments of $46.0 million on its long-term debt in the first quarter of fiscal 2026, compared to $19.0 million in fiscal 2025 [129]. - Taxes paid related to restricted stock and stock options were $9.2 million in the first quarter of fiscal 2026, up from $5.0 million in fiscal 2025 [130]. Non-GAAP Measures - The Company’s non-GAAP financial measures include organic revenue, adjusted gross margin, adjusted operating margin, and adjusted net earnings, which exclude stock-based compensation and other non-recurring items [134]. Forward-Looking Statements - Forward-looking statements indicate expectations regarding capital expenditures, gross margin fluctuations, and increased research and development expenses [142]. Market Risk - The Company’s exposure to market risk from changes in interest rates and currency exchange rates has not changed materially from the previous year [143]. Tax Distributions - The Company received tax distributions of $1.4 million from its equity method investee during the first quarter of both fiscal 2026 and 2025 [127].