Core Insights - Cytek Biosciences reported a record fourth-quarter revenue of $62.1 million, representing an 8% year-over-year increase, attributed to stabilization in the U.S., growth in the E.U., and strong performance in APAC [3][6] - The company ended 2025 with a net loss of $44.1 million, which included a significant non-cash deferred tax valuation allowance [5][13] - Cytek initiated 2026 revenue guidance of $205–212 million, assuming improved market conditions in EMEA and the U.S., along with continued growth in service and reagents [4][16] Revenue Growth - EMEA revenue grew 21% in Q4, driven by services and instruments for academic and government customers, while U.S. revenue grew 5% with double-digit service revenue growth [1][2] - The company experienced double-digit year-over-year revenue growth in both EMEA and APAC during Q4, with mid-single-digit growth in the U.S. [2] Profitability and Margins - GAAP gross margin fell to 53% in Q4, down from 59% a year earlier, attributed to higher costs in service and product gross margins [11] - Adjusted EBITDA for 2025 declined to $5.0 million from $22.4 million in the previous year [5][14] Installed Base and Product Performance - Cytek expanded its global installed base by 208 instruments in Q4, ending 2025 with 3,664 units installed [7] - The launch of the Cytek Aurora Evo system contributed to a 21% unit growth in the Aurora category in Q4 [7] Recurring Revenue and Reagents - Recurring revenue represented 34% of total revenue for 2025, increasing 21% year-over-year [9] - Reagent revenue grew more than 20% in Q4 and over 25% for the full year, driven by initiatives such as faster delivery times and a larger catalog [8] Cash Position and Share Buybacks - Cytek ended 2025 with $261.5 million in cash and equivalents, with a slight negative free cash flow of -$0.2 million in Q4 [15] - The company repurchased approximately $15.1 million of stock during 2025, representing about 3.3 million shares [15] Future Outlook - The company expects continued strong growth in service and reagents but anticipates only modest growth in instruments [17] - Management plans to invest commercially in segments where the company is currently weak, including enhancements to the reagent sales force [17]

Financial Data and Key Metrics Changes - Fourth quarter revenue for 2025 reached $62.1 million, an 8% year-over-year increase, marking the highest quarterly revenue in the company's history [4][14] - Full year revenue for 2025 was $201.5 million, a 1% increase compared to 2024, with a notable turnaround in the second half of the year where revenue grew by 5% compared to the second half of 2024 [6][24] - GAAP gross profit for Q4 was $32.9 million, a 2% decline from $33.7 million in Q4 2024, with a gross margin of 53% compared to 59% in the prior year [17][18] - Net loss for Q4 was $44.1 million, compared to net income of $9.6 million in the prior year quarter, primarily due to a $38.1 million valuation allowance against deferred tax assets [20][22] Business Line Data and Key Metrics Changes - Instrument revenue grew 22% in 2025 compared to the prior year, with a 26% growth in Q4 [8] - Reagent revenue grew more than 20% in Q4 and over 25% for the full year 2025, driven by improvements in delivery times and a large catalog of reagents [10][16] - Service revenue grew 25% in Q4 year-over-year, supported by an expanding installed base and active usage of systems [16] Market Data and Key Metrics Changes - In the U.S., total revenue grew by 5% in Q4, driven by double-digit growth in service revenue, while EMEA grew 21% due to strong demand from academic and government customers [17] - APAC, including China, experienced a 15% growth in Q4, driven by increases in instruments, service, and reagents [17] Company Strategy and Development Direction - The company aims to reinforce its market leadership in next-gen cell analysis solutions by focusing on core strategic pillars: instrument, application, bioinformatics, and clinical [7] - The company plans to continue expanding its global footprint and enhancing its operational capabilities, including a new manufacturing facility in Singapore [11] Management's Comments on Operating Environment and Future Outlook - Management noted a stabilization in the market environment, particularly in academic and government spending, which contributed to the revenue growth in Q4 [42] - The company anticipates continued growth in 2026, with a revenue outlook of $205 million to $212 million, reflecting improved market conditions in EMEA and the U.S. [31][32] Other Important Information - The company reported a free cash flow of -$0.2 million in Q4, with total cash and marketable securities at $261.5 million as of December 31, 2025 [24][30] - The company repurchased approximately $15.1 million of its stock during 2025, reflecting a commitment to returning value to shareholders [30] Q&A Session Summary Question: What drove the end-of-year growth acceleration? - Management indicated that the growth was driven by a normalization in academic and government spending, along with some catch-up disbursements from the NIH [42][43] Question: What was the mix in 2025 between new customer acquisitions versus existing customers expanding their capacity? - Management noted that the growth was a combination of both new customer acquisitions and existing customers purchasing additional systems [50] Question: How is the company thinking about commercial investments in 2026? - The company plans to continue investing in its sales teams and reagent sales force to drive future revenue growth [52][53]