Harvard Bioscience(HBIO) - 2025 Q3 - Quarterly Results

Financial Performance - Revenues for Q3 2025 were $20.6 million, a decrease from $22.0 million in Q3 2024, while gross margin improved to 58.4% from 58.1%[3] - Net loss for Q3 2025 was ($1.2) million, significantly improved from a net loss of ($4.8) million in Q3 2024, which included a non-cash charge of $1.2 million[4] - Adjusted EBITDA for Q3 2025 was $2.0 million, up from $1.3 million in Q3 2024, with cash provided by operations at $1.1 million compared to ($0.8) million in the same period last year[4] - For the nine months ended September 30, 2025, revenues totaled $62.8 million, down from $69.6 million in the same period of 2024, with a gross margin of 56.9% compared to 58.6%[7] - The net loss for the nine months ended September 30, 2025, was ($53.8) million, compared to a net loss of ($12.4) million in the prior year, primarily due to a goodwill impairment of $48.0 million[8] - GAAP operating income for Q3 2025 was $197 thousand, a significant improvement from a loss of $1,874 thousand in Q3 2024[25] - Adjusted operating income increased to $1,517 thousand in Q3 2025, compared to $829 thousand in Q3 2024, reflecting a growth of 83%[25] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $4,298 thousand, up from $4,205 thousand in the same period of 2024[25] - The operating margin improved to 1.0% in Q3 2025, compared to a negative margin of 8.5% in Q3 2024[25] - The company reported a GAAP net loss of $1,231 thousand for Q3 2025, an improvement from a net loss of $4,802 thousand in Q3 2024[25] - Adjusted net loss for Q3 2025 was $(161) thousand, an improvement from $(1,070) thousand in Q3 2024[25] - The diluted loss per share (GAAP) improved to $(0.03) in Q3 2025 from $(0.11) in Q3 2024[25] Cash and Liabilities - Cash and cash equivalents increased to $6.8 million as of September 30, 2025, from $4.1 million at the end of 2024[21] - Total liabilities decreased to $54.4 million as of September 30, 2025, compared to $54.9 million at the end of 2024[21] - Cash and cash equivalents decreased to $(6,817) thousand as of September 30, 2025, compared to $(4,569) thousand in 2024[25] - Net debt reduced to $27,533 thousand in Q3 2025 from $33,781 thousand in Q3 2024, indicating a decrease of approximately 18.5%[25] Future Outlook - The company expects Q4 2025 revenues to be between $22.5 million and $24.5 million, with a gross margin in the range of 58% to 60%[9] - The company is actively negotiating options for refinancing or repaying its existing credit agreement in Q4 2025[5] Customer Engagement - Customer engagement has led to the highest backlog level in nearly two years and the fourth consecutive month of order growth, indicating improved demand[2] Restructuring Charges - The company incurred $48 thousand in restructuring-related charges in Q3 2025, down from $179 thousand in Q3 2024[25]