Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $10.5 million, a 9% increase from $9.6 million in Q3 2024, marking the fifth consecutive quarter of year-over-year growth [5][10] - Gross profit for Q3 2025 was $3.2 million, compared to $0.1 million in Q3 2024, with a gross margin of 30.7%, up from 0.9% in the prior year [12] - Net loss for Q3 2025 was $4.3 million or negative $0.08 per diluted share, an improvement from a net loss of $7.6 million or negative $0.15 per diluted share in Q3 2024 [13] Business Line Data and Key Metrics Changes - Lab Essentials revenue was $8.3 million in Q3 2025, a 16% increase from $7.2 million in Q3 2024, driven by higher average revenue per customer [10][11] - Clinical Solutions revenue was $1.7 million in Q3 2025, a 13% decrease from $2.0 million in Q3 2024, attributed to lower average revenue per customer [11] Market Data and Key Metrics Changes - Approximately 25% of total revenue is derived from custom products purchased by biopharma customers, with the remaining 75% growing in the low double digits [8][16] - The company has seen a steady increase in demand for custom reagents in market segments such as animal health, life science tools, and diagnostics [8] Company Strategy and Development Direction - The company is focused on long-term, sustainable growth, aiming for $200 million in annualized revenue without significant additional capital investments [6] - Investments in distributor management, purchasing integration, and price optimization are expected to drive operational efficiency and revenue growth [6][9] - The company is pursuing potential tuck-in acquisitions and collaborations to enhance capabilities and accelerate growth [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for end markets, despite current softness in demand for clinical solutions from biopharma customers [19] - The company expects modest growth in custom biopharma products and low double-digit growth in the remaining revenue segments [16][18] Other Important Information - The company reiterated its 2025 total revenue guidance of $39 million to $42 million, expecting to finish slightly below the midpoint of that range [15] - Capital expenditures for Q3 2025 were $0.4 million, with free cash outflow remaining at $2.4 million, consistent with Q3 2024 [15] Q&A Session Summary Question: How have customer conversations trended regarding MFN Pharma Tariffs? - Management noted optimism but indicated that actual purchasing actions have not yet been observed, with limited conversations about ramping up spending [21][22] Question: Update on the RUO Plus initiative? - The initiative is performing well, providing flexibility for customers not ready for GMP, and is seen as a pathway to migrate them to GMP in the future [24] Question: Expected product mix and interest in custom portfolio? - Management highlighted that 75% of the business is growing double digits, with increased interest in tools and diagnostics, indicating a strong performance across all market segments [29][30] Question: Insights on clinical solutions customer acquisition? - Management confirmed ongoing customer acquisition, with a focus on larger-sized customers, and noted that the mix may change but remains positive [36][38] Question: Gross margin improvement trajectory? - Management indicated that gross margin improvements are expected to continue, driven by high fixed costs and ongoing efficiency projects [42][44] Question: Areas for driving more efficiencies? - The company is continuously seeking operational efficiencies across various functions, including labor savings and IT infrastructure improvements [48][50]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $9.3 million, an 18% increase from $7.9 million in Q4 2023, and $37.7 million for the full year 2024, a 3% increase from $36.7 million in 2023 [25][34] - Adjusted to exclude revenue from a single large clinical solutions order of $2.7 million in 2023, total revenue growth was 11% in 2024 [9][25] - Free cash outflow improved from $26.7 million in 2023 to $13.5 million in 2024 [24][36] Business Line Data and Key Metrics Changes - Revenue from catalog reagents represented approximately 60% of total revenue, growing low single digits in 2024, with 7% growth in the second half of the year compared to the second half of 2023 [13] - Custom biopharma business grew about 40% in 2024, with a robust growth of approximately 25% excluding a new therapeutic customer [16] - Clinical Solutions revenue was $1.9 million in Q4 2024, a 110% increase from $0.9 million in Q4 2023, and $7.1 million for the full year 2024, a 5% increase from $6.7 million in 2023 [27] Market Data and Key Metrics Changes - Sales to biopharma customers represented approximately 70% of custom revenue and 25% of total revenue in 2024 [15] - The company supported 48 clinical customers in 2024, up from 34 in 2023, with 39 being biopharma-related [8][17] - The company expects mid-single-digit growth in catalog business for 2025, reflecting market stabilization [20] Company Strategy and Development Direction - The company aims to expand its product portfolio through collaborations and acquisitions over the next 12 to 24 months [22] - The focus remains on executing the growth strategy laid out in 2021 to achieve long-term sustainable growth [8] - The company plans to moderately increase investments in sales and marketing to position itself for market recovery [40] Management's Comments on Operating Environment and Future Outlook - Management noted cautiousness among customers due to macroeconomic uncertainty, particularly regarding capital flow into the sector [39] - The company expects 2025 to be a recovery year, with guidance for total revenue of $39 million to $42 million, implying 7% growth compared to 2024 [38] - Management expressed confidence in achieving at least 15% growth in custom products sold to biopharma accounts despite current uncertainties [21] Other Important Information - The company reported a net loss of $5.7 million for Q4 2024, an improvement from a net loss of $10.7 million in Q4 2023 [34] - Adjusted EBITDA for the full year of 2024 was negative $14.5 million, an improvement from negative $19.8 million in 2023 [34] - The company has amended and extended its credit facility, increasing liquidity by $4 million [43] Q&A Session Summary Question: Comments on customer budget softening - Management noted recent softening in customer budgets, particularly among smaller biotech firms, while larger pharma customers remain positive [51][52] Question: Composition of new customer pipeline - Most new customers are in preclinical or phase one stages, with successful transitions from phase two customers [56] Question: Any large one-time orders expected in 2025 - Management indicated no significant one-time orders are anticipated for 2024, but acknowledged potential revenue lumpiness [58][61] Question: Updated number of cell and gene therapy customers - The company now supports over 100 total cell and gene therapy customers, with 27% of total revenue coming from this segment [66] Question: Revenue phasing for 2025 - Management expects Q1 2025 to be the lowest quarter, with a gradual increase through Q2 and Q3, followed by a potential decrease in Q4 [70] Question: Revenue ramp for new clinical customers - It typically takes about a year to a year and a half for new clinical customers to reach spending levels comparable to more mature customers [79] Question: Pricing changes for reagents - The company implemented mid-single-digit price increases for its products at the beginning of the year [82]