Financial Data and Key Metrics Changes - The company reported adjusted EPS of $0.53 for Q4, up from $0.49 in the prior year, while GAAP EPS was a loss of $0.11 compared to a profit of $0.25 in the previous year [28] - Q4 revenue reached $317 million, reflecting a 3% organic growth year-over-year and a 4% reported growth [28] - Total adjusted gross margin was 70.1% in Q4, down from 71.1% the previous year, primarily due to an unfavorable product mix [29] Business Line Data and Key Metrics Changes - The Protein Sciences segment reported sales of $226.5 million, with organic revenue growth of 4% for the quarter, driven by strong performances in cell therapy and protein analytical tools [32] - The Diagnostics and Spatial Biology segment saw Q4 sales of $89.7 million, with both reported and organic growth decreasing by 1% compared to the same period last year [32] - The divestiture of the Exosome Diagnostics business is expected to improve the operating margin in the Diagnostics and Spatial Biology segment [35] Market Data and Key Metrics Changes - Biopharma end market delivered high single-digit growth for both Q4 and the full fiscal year, driven by large pharmaceutical customers [13] - Academic revenue represented approximately 21% of total business, with U.S. institutions contributing roughly 12%, and the exposure to NIH funding was reassessed to be less than one-third [14][15] - China experienced low double-digit growth in Q4, attributed to demand improvement ahead of anticipated tariff impacts [17] Company Strategy and Development Direction - The company announced the divestiture of its exosome diagnostics business to focus on core growth pillars and improve profitability [10][11] - Strategic investments will be redirected towards advancing automated proteomic analysis and spatial biology platforms, as well as expanding applications in cell therapy [39] - The company aims to achieve adjusted operating margin expansion of approximately 100 basis points in fiscal year 2026 compared to fiscal year 2025 [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic market environment, with expectations of low single-digit organic growth until uncertainties around NIH funding and pharmaceutical tariffs are resolved [38] - The company remains optimistic about long-term growth drivers, including an aging global population and increasing demand for life sciences innovations [39] - Management noted that the current cautious purchasing behavior among U.S. academic customers is expected to persist until funding uncertainties are clarified [92] Other Important Information - The company generated $98.2 million in cash from operations in Q4 and returned $12.4 million in dividends and $100.1 million through stock buybacks [31] - The balance sheet ended Q4 with $162.2 million in cash and total leverage well below one times EBITDA [31] Q&A Session Summary Question: Clarification on growth outlook for fiscal year 2026 - Management clarified that low single-digit growth is expected until there is more certainty around various administration policies affecting academic funding and pharmaceutical tariffs [42] Question: Performance of instrumentation in large pharma - Management noted strong growth in instrumentation for large pharma, particularly the LEO system tailored for high throughput applications [44] Question: Commitment to market plus 500 basis points growth - Management acknowledged that in a turbulent environment, achieving that growth may be challenging, but they remain confident in their differentiation from peers [48] Question: Drivers of margin expansion - Margin expansion is expected to be driven by the divestiture of Exosome Diagnostics, which was a headwind to margins in fiscal year 2025 [49] Question: NIH funding sources for academic customers - Management indicated that approximately 50-55% of academic funding comes from federal sources, with NIH accounting for about half of that [51] Question: Outlook for China market - Management highlighted that growth in China was driven by funding releases and anticipation of tariff impacts, with expectations for modest growth moving forward [66] Question: Visibility on biotech funding - Management is monitoring biotech funding closely, noting recent signs of improvement but acknowledging that it remains significantly down year-over-year [93]