Core Insights - Mesa Laboratories, Inc. has successfully executed its financial strategy by repaying $97.5 million of its 1.375% Convertible Senior Notes due August 2025, utilizing funds drawn from its Credit Agreement [1][2] - The company aims to optimize its capital structure and reduce shareholder dilution while supporting long-term growth [2][5] Financial Performance - The company drew $97.0 million under its Amended and Restated Credit Agreement, increasing the total outstanding balance to $108 million [1] - Interest rate on the Credit Facility is currently 7.18% and is expected to decrease with future Federal Funds Rate reductions, with anticipated interest payments of approximately $2.7 million for Q2 FY 2026 [2][3] Debt Management - Mesa's total net leverage ratio was 3.16 as of June 30, 2025, defined as total debt minus unrestricted cash in excess of $10 million compared to trailing 12 months EBITDA [3] - The company made over $7 million in principal payments in Q1 FY 2026 and expects to make approximately $20 million in principal payments for the remaining quarters of FY 2026 [4] Company Overview - Mesa Laboratories, Inc. is a global leader in designing and manufacturing life science tools and quality control solutions for regulated applications in the pharmaceutical, healthcare, and medical device industries [6]

Leadership Transition - Harvard Bioscience announced a CEO succession plan with John Duke set to become President & CEO on July 28, 2025, following Jim Green's retirement after over 8 years as Chairman and 6 years as President & CEO [1][3] - John Duke has a strong background, previously serving as CEO of Plastic Molding Technology with approximately 20% annual revenue growth, and has over 20 years of experience at Corning Incorporated [2][3] Board Appointments - The company appointed Rob Gagnon and Seth Benson to the Board of Directors effective July 16, 2025 [3][6] - Rob Gagnon has over 20 years of experience in global finance operations in the life sciences industry and previously served as CFO of Harvard Bioscience from 2013-2018 [4] - Seth Benson has significant leadership experience in finance and technology, currently serving as CFO of Nuclera Ltd [5] Financial Performance - Harvard Bioscience expects second quarter 2025 revenue to be $20.4 million and has reiterated its gross margin guidance of 55% to 57% for the same period [7][8]

Financial Data and Key Metrics Changes - The company reported record consumables revenue exceeding $18 million, reflecting strong product development efforts and an expanded assay portfolio [5][6] - The Accelerator services business grew by 36% year-on-year, although some pharma projects were pushed to later quarters due to market conditions [7][8] - Overall, the company expects to stabilize and return to a pace of clinical trials and preclinical work as the biopharma market stabilizes [8][10] Business Line Data and Key Metrics Changes - Consumables revenue showed significant growth, driven by the introduction of over 20 new assays last year and a similar cadence expected this year [5][6] - The instruments segment remained stable year-over-year, indicating consistent demand [6] - The Accelerator Lab has become a significant revenue source, contributing approximately 30% of the business and showing strong growth in clinical and market adoption [18][20] Market Data and Key Metrics Changes - The company has about 20-22% exposure to the government end market, with some paralysis in customer decisions due to uncertainties in grant funding [12][13] - The academic research market is experiencing pressure, but the company is finding ways to mitigate this through services and consumables [12][13] Company Strategy and Development Direction - The company aims to expand its addressable market from $1 billion in neurology to $5 billion by including immunology and immuno-oncology [42][43] - The introduction of the SYM-one platform is expected to enhance sensitivity and complexity in immunology and oncology, broadening the company's market reach [30][34] - The company is focused on maintaining R&D investments while implementing cost-saving measures, ensuring continued innovation in key areas [39][40] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are delays in project decisions, there have been no cancellations, indicating a cautious but positive outlook for future projects [9][10] - The company is optimistic about the growth potential in the liquid biopsy market, emphasizing the importance of protein biomarkers alongside DNA [44][46] - Management believes that the adoption of blood-based biomarkers for Alzheimer's will increase as therapy adoption improves, creating a synergistic effect [54][56] Other Important Information - The company is preparing for the launch of the SYM-one platform, which will be compatible with over 20,000 flow cytometers, significantly increasing its market reach [32][36] - The company has initiated a cost savings program targeting $55 million in savings by the end of 2026, focusing on G&A and volume-related costs [38][39] Q&A Session Summary Question: Can you discuss the recent Q1 results and the impact of academic funding concerns? - The company reported strong consumables growth but noted that academic funding concerns have affected the outlook for the Accelerator Lab [4][5] Question: What is the exposure to the government end market and the impact of NIH spending cuts? - Approximately 20-22% of customers have NIH exposure, and while there is some paralysis in decision-making, the company is finding ways to support these customers [12][13] Question: How does the Accelerator Lab contribute to the business? - The Accelerator Lab has evolved into a significant revenue source, providing stability and repeat business, especially in a CapEx constrained environment [18][20] Question: What are the expectations for the SYM-one platform launch? - The SYM-one platform is expected to enhance sensitivity and complexity in immunology and oncology, with a launch planned before the end of the year [30][34] Question: How does the company plan to balance cost savings with R&D investments? - The company is implementing cost savings primarily in G&A and volume-related areas while maintaining strong investments in R&D and innovation [39][40] Question: What is the rationale behind the Akoya acquisition? - The acquisition aims to increase the addressable market and achieve synergies through a unified operating line and commercial team, targeting profitability by 2026 [42][43]

Core Insights - Harvard Bioscience, Inc. has appointed John Duke to its board of directors, effective June 2, 2025, and he will also serve on the audit and nominating and governance committees [1][2] - Katherine Eade has been named Lead Independent Director of the Company's board of directors [1] - Thomas Loewald has retired from the board after serving since October 2017 [3] Company Overview - Harvard Bioscience, Inc. is a leading developer, manufacturer, and seller of technologies, products, and services that enable advances in life science applications, including research, drug and therapy discovery, bio-production, and preclinical testing for pharmaceutical development [4] - The Company serves a diverse customer base, including academic institutions, government laboratories, and leading pharmaceutical and biotechnology organizations, with operations in the United States, Europe, and China [4]

Core Insights - Mesa Laboratories, Inc. reported solid momentum in FY25 with core organic revenue growth across all four divisions and bookings growth in 4Q25 [2][3] - The company generated total revenues of $240,978, marking an 11.5% increase compared to FY24, with core organic revenue growth of 5.0% [10][34] - Profitability, as measured by adjusted operating income (AOI), increased 12.3% year-over-year to 23.5% as a percentage of revenues, despite challenges from performance-based compensation expenses [3][10] Financial Performance - In 4Q25, total revenues were $62,135, a 5.5% increase from 4Q24, with operating income rising 100.5% to $1,469 [9][10] - For the full fiscal year, operating income increased 106.0% to $16,336, while net loss improved to $(1,974) from $(254,246) in FY24 [10][27] - Cash flows from operations for the year were $46,808, with free cash flow of $42,559 primarily used to pay down debt [2][21] Division Performance - The Sterilization and Disinfection Control (SDC) division generated revenues of $24,749 in 4Q25, with core organic revenue growth of 10.3% [13] - Calibration Solutions (CS) revenues were $13,257 in 4Q25, achieving core organic revenue growth of 3.4% [15] - Biopharmaceutical Development (BPD) revenues reached $12,618 in 4Q25, with a significant annual growth of 20.3% driven by increased spending on capital equipment [16] - Clinical Genomics (CG) revenues were $11,511 in 4Q25, with a quarterly growth of 4.4% but an annual decline of 10.1% due to regulatory challenges in the China market [17] Strategic Milestones - The company successfully integrated GKE into its corporate structure within nine months and exceeded acquisition commitments for revenues and profitability [4] - Implementation of Salesforce CRM across all divisions and progress in Commercial Excellence initiatives contributed to accelerated bookings growth [4] - The Mesa Way initiative led to 45 discrete process improvement events, setting a new record for the company [5] Market Dynamics - Approximately 75% of revenues are derived from a recurring service and consumables mix, which has helped mitigate short-term impacts from increased tariffs [8] - The company is focused on driving profitable market share growth despite uncertainties in global trade and economic conditions [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $9.8 million, a 5% increase from $9.3 million in Q1 2024 [15] - Gross profit for Q1 2025 was $3 million, compared to $2.2 million in Q1 2024, with a gross margin of 30.7%, up from 23.8% [18] - Net loss for Q1 2025 was $4.6 million, or negative $0.09 per diluted share, compared to a net loss of $8.1 million, or negative $0.20 per diluted share, in Q1 2024 [19] Business Line Data and Key Metrics Changes - Revenue from Lab Essentials products was $8.1 million in Q1 2025, a 12% increase from $7.3 million in Q1 2024 [16] - Clinical Solutions revenue was $1.2 million in Q1 2025, a 32% decrease from $1.7 million in Q1 2024, attributed to lower average revenue per customer [17] - Revenue from custom products sold to biopharma customers grew mid single digits compared to Q1 2024, with expectations of at least 15% growth in 2025 [10][11] Market Data and Key Metrics Changes - The company serves over 500 academic and government institutions, which represented less than 4% of total revenue in February 2024 [7] - Less than 5% of total revenue comes from sales to customers outside the United States, with no material revenue from sales to customers in China [8] Company Strategy and Development Direction - The growth strategy focuses on engaging early-stage therapeutic developers and supporting them through clinical trials to commercialization, aiming for sustainable growth rates of 20% to 25% annually [8] - The company signed a collaboration agreement with Pluristics to manufacture and distribute a novel cryopreservation product, enhancing its product portfolio and market presence [12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for 2025, despite challenges in the biotech funding landscape affecting small and mid-sized biotech customers [9][24] - The company anticipates a gross margin in the high 20s for fiscal year 2025, with operating expenses expected to be at least $8 million per quarter [23] Other Important Information - Capital expenditures for Q1 2025 were $200,000, compared to $100,000 in Q1 2024, with free cash flow of negative $4.3 million for Q1 2025, an improvement from negative $6.7 million in Q1 2024 [20] - The company does not expect to raise additional capital to execute its organic growth strategy based on current liquidity and growth assumptions [24] Q&A Session Summary Question: Update on cell and gene therapy customer count and demand after FDA leadership change - Management noted no immediate changes in demand post-leadership change, with customers in execution mode and expecting 15% growth in the segment [31] Question: Commentary on revenue per customer and mix shift with new customers - Management indicated that as new customers onboard, revenue per customer may soften, but mature customers are expected to increase their spending significantly as they progress through clinical trials [34] Question: Competitive position of the collaboration with Pluristics - Management expressed excitement about the collaboration, which targets existing customers and aims to expand into the cell therapy market, though material impact is not expected until 2026 [40] Question: Exposure to vaccines and recent CBER appointment - Management clarified that exposure to vaccines is minimal, with only 4% of revenue from academic and government institutions, and no immediate impact from NIH funding concerns [49][52] Question: Customer order patterns and potential risks to outlook - Management did not detect any pull-forward of orders and remains optimistic about mid-single-digit growth for the catalog business for the full year [59]