Financial Data and Key Metrics Changes - Net sales for Q4 2025 were approximately $693 million, a 3.9% increase from $668 million in Q4 2024. On a currency neutral basis, this represents a 1.7% year-over-year increase driven by the clinical diagnostics segment [11] - Full year net sales for 2025 were $2.583 billion, a 0.7% increase from $2.567 billion in 2024. On a currency neutral basis, sales were essentially flat compared to 2024 [17] - Q4 GAAP gross margin was 49.8%, down from 51.2% in Q4 2024. Non-GAAP gross margin was 52.5%, compared to 53.9% in the previous year [13][14] - Full year non-GAAP gross margin was 53.3%, down from 55% in 2024, primarily due to reduced fixed manufacturing absorption and higher material costs [19] Business Segment Data and Key Metrics Changes - Clinical diagnostics segment sales in Q4 2025 were approximately $425 million, an 8.4% increase from $393 million in Q4 2024, driven by higher sales of quality control and blood typing products [13] - Life science segment sales in Q4 2025 were $268 million, a 2.6% decrease from $275 million in Q4 2024, attributed to a constrained academic research and biotech funding environment [11] - The ddPCR portfolio posted mid-single-digit year-over-year growth in Q4, driven by the success of the QX700 platform [12][7] Market Data and Key Metrics Changes - Currency neutral sales decreased in the Americas, partially offset by increased sales in EMEA and Asia Pacific [12] - In biopharma, funding conditions improved in the second half of 2025, with expectations for a modest recovery in 2026 [9] - Cautious spending persisted in academia and government, impacting instrument demand [8] Company Strategy and Development Direction - The company plans to advance several product launches in 2026, including an IVD version of the QX600 and additional high-value ddPCR assays [10] - Focus on disciplined innovation is central to the long-term growth strategy, with an emphasis on operational performance and margin expansion [10][31] - The company is actively looking for additional assets to accelerate top-line growth and margin expansion [30] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of stabilization across core markets, with improvements in NIH funding and biopharma funding [28] - The company remains focused on driving long-term value and is seeing the impact of a performance-related approach [29] - Management expressed confidence that actions taken will translate into improved financial results over time [10] Other Important Information - Free cash flow for Q4 2025 was $119 million, compared to $81 million in Q4 2024. Full year free cash flow improved to approximately $375 million versus $290 million in 2024 [23] - The company retired 1.2 million shares through its buyback program at a total cost of approximately $296 million during 2025 [23] Q&A Session Summary Question: About the ddPCR business growth - Management indicated that the strong quarterly growth was driven by the QX700 platform and the conversion of qPCR applications to ddPCR, with ongoing reagents being a significant part of the portfolio [34][35] Question: Process chromatography changes - Management explained that recent changes in vaccine production strategies impacted demand, leading to a conservative outlook for the process chromatography segment [37][38] Question: Operating margins outlook - Management acknowledged the impact of process chromatography on operating margins and indicated that while some costs from Q4 are not expected to recur, they are being realistic in their guidance [39][40] Question: Clinical diagnostics growth - Management attributed muted growth in clinical diagnostics to a mix of portfolio performance and geographic factors, particularly reliance on China [58][59] Question: Buyback strategy - Management clarified that the lack of buybacks in Q4 does not signal any specific strategy, as they are looking at opportunities opportunistically [63][64]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were approximately $693 million, a 3.9% increase from $668 million in Q4 2024. On a currency neutral basis, this represents a 1.7% year-over-year increase [11] - Full year 2025 net sales were $2.583 billion, a 0.7% increase from $2.567 billion in 2024. On a currency neutral basis, sales were essentially flat compared to 2024 [17][18] - Q4 GAAP gross margin was 49.8%, down from 51.2% in Q4 2024. Non-GAAP gross margin was 52.5%, compared to 53.9% in the previous year [13][14] - Full year non-GAAP gross margin was 53.3%, down from 55% in 2024, primarily due to reduced fixed manufacturing absorption and higher material costs [19] Business Segment Data and Key Metrics Changes - Clinical diagnostics segment sales in Q4 2025 were approximately $425 million, an 8.4% increase from $393 million in Q4 2024, driven by higher sales of quality control and blood typing products [13] - Life science segment sales in Q4 2025 were $268 million, a 2.6% decrease from $275 million in Q4 2024, impacted by constrained academic research and biotech funding [11][12] - The ddPCR portfolio posted mid-single-digit year-over-year growth in Q4, driven by the success of the QX700 platform [12][26] Market Data and Key Metrics Changes - Currency neutral sales decreased in the Americas, partially offset by increased sales in EMEA and Asia Pacific [12][18] - In biopharma, funding conditions improved in the second half of 2025, with expectations for a modest recovery in 2026 [9] - Cautious spending persisted in academia and government, affecting instrument demand [8] Company Strategy and Development Direction - The company plans to advance several product launches in 2026, including an IVD version of the QX600 and additional high-value ddPCR assays [10] - Focus on disciplined innovation is central to the long-term growth strategy, with an emphasis on operational performance and cost structure management [10][31] - The company is actively looking for additional assets to accelerate top-line growth and margin expansion [30] Management's Comments on Operating Environment and Future Outlook - Management sees early signs of stabilization across core markets, with improvements in NIH funding and biopharma funding [28] - The company remains focused on driving long-term value and is witnessing the impact of a performance-related approach [29] - Management is optimistic about the growth potential of the ddPCR business and the overall diagnostics segment [28][29] Other Important Information - Free cash flow for 2025 was approximately $375 million, representing a conversion ratio of 138% for free cash flow to non-GAAP net income [23] - The company retired 1.2 million shares through its buyback program at a total cost of approximately $296 million during 2025 [23][24] - Non-GAAP guidance for 2026 anticipates currency neutral revenue growth between 0.5% and 1.5% [24] Q&A Session Summary Question: About the ddPCR business growth - Management noted strong quarterly growth in the ddPCR business, driven by the QX700 platform and ongoing reagent sales from a large installed base [34][35] Question: Process Chromatography changes - Management explained that recent changes in vaccine production strategies impacted the Process Chromatography forecast, leading to a conservative outlook [37][38] Question: Operating margins outlook - Management provided insights on the operating margin forecast, highlighting the impact of Process Chromatography and Q4 costs that are not expected to recur [39][40] Question: Clinical diagnostics growth - Management discussed the muted growth in clinical diagnostics, attributing it to a mix of product performance and geographic factors [57][59] Question: Buyback strategy - Management clarified that the lack of buybacks in Q4 does not signal any specific strategy, as they are actively looking for acquisition opportunities [63][64]

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were approximately $693 million, a 3.9% increase from $668 million in Q4 2024. On a currency neutral basis, this represents a 1.7% year-over-year increase driven by the clinical diagnostics segment [11] - Full year net sales for 2025 were $2.583 billion, a 0.7% increase from $2.567 billion in 2024. On a currency neutral basis, sales were essentially flat compared to 2024 [18] - Q4 GAAP gross margin was 49.8%, down from 51.2% in Q4 2024. Non-GAAP gross margin was 52.5%, compared to 53.9% in the previous year [13][14] - Full year non-GAAP gross margin was 53.3%, down from 55% in 2024, primarily due to reduced fixed manufacturing absorption and higher material costs [20] Business Segment Data and Key Metrics Changes - Clinical diagnostics segment sales in Q4 2025 were approximately $425 million, an increase of 8.4% on a reported basis from $393 million in Q4 2024, driven by higher sales of quality control and blood typing products [13] - Life science segment sales in Q4 2025 were $268 million, a 2.6% decrease from $275 million in Q4 2024, impacted by a constrained academic research and biotech funding environment [11] - The ddPCR portfolio posted mid-single-digit year-over-year growth in Q4, driven by the success of the QX700 platform [12] Market Data and Key Metrics Changes - Currency neutral sales decreased in the Americas, partially offset by increased sales in EMEA and Asia Pacific [12] - In biopharma, funding conditions improved during the second half of 2025, with expectations for a modest recovery in 2026 [9] - Academic institutions remain cautious in spending, focusing on maintaining staffing levels rather than purchasing capital equipment [8] Company Strategy and Development Direction - The company plans to advance several product launches in 2026, including an IVD version of the QX600 and additional high-value ddPCR assays across oncology [10] - Bio-Rad remains focused on disciplined innovation as a core part of its long-term growth strategy [9] - The company is looking for additional assets to help accelerate top-line growth and margin expansion [31] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of stabilization across core markets, with improvements in NIH funding and biopharma funding [29] - The company is confident that actions taken to improve operational performance and expand margins will translate into better financial results over time [10] - Management remains cautious about the potential impact of policy developments in China on reimbursement rates [6] Other Important Information - Free cash flow for the full year 2025 improved to approximately $375 million, representing a conversion ratio of 138% for free cash flow to non-GAAP net income [23] - The company retired 1.2 million shares through its buyback program at a total cost of approximately $296 million during 2025 [23] Q&A Session Summary Question: Can you elaborate on the ddPCR business growth and the contribution from Stilla? - Management indicated that the strong growth was driven by the QX700 platform and a large installed base, with ongoing reagents being a significant part of the portfolio [35][36] Question: What are the recent changes affecting Process Chromatography? - Management explained that changes in vaccine production strategies and government regulations impacted demand, leading to a conservative outlook for this segment [38] Question: What is the outlook for operating margins in 2026? - Management provided a realistic outlook, factoring in the impact of Process Chromatography and operational improvements, guiding for an operating margin between 12% and 12.5% [39][41] Question: Why is clinical diagnostics growth muted compared to pre-COVID levels? - Management attributed the muted growth to a mix of product performance and geographic factors, particularly reliance on markets like China [60] Question: What is the long-term growth outlook for Process Chromatography? - Management suggested a possibility of returning to low single-digit growth by 2027, with potential for acceleration depending on customer transitions from clinical to commercial phases [62]