Q3 2025 results Delivering results above outlook November 4, 2025 Forward looking and intended use statements Safe Harbor Statement: Certain statements in this presentation may constitute forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These statements, including those regarding QIAGEN's products, development timelines, marketing and/or regulatory approvals, financial and ope ...

Summary of Conference Call Company and Industry - The conference call pertains to a company in the life sciences and diagnostics industry, specifically focusing on consumables and bioinformatics solutions. Key Points and Arguments Portfolio Restructuring and Financial Performance - The company has successfully reshaped its portfolio, with 85% of revenues derived from consumables, indicating a resilient consumer base [2][3] - There has been a margin improvement of 330 basis points in operating margin over the last two years, primarily driven by ongoing efficiency measures [3] - The company aims for an EBIT margin target of 31% by 2028, suggesting that this target may be reached earlier than anticipated [4] Cash Flow and Profitability - Cash flow generation remains strong, with expectations for gross margin expansion starting in 2027 due to improved utilization in various areas [5] - The company has maintained a stable cash flow and margin expansion despite a challenging academic and government funding environment [6][10] Market Exposure and Guidance - The company has a relatively low exposure to U.S. NIH budgets (4-5% of total revenue) and academia (6-7%), with 85-90% of this exposure being consumables [7][8] - Guidance for the second quarter indicates a 5% growth, following a 7% actual delivery in the first quarter [6] Strengths in Bioinformatics and Pharma - The bioinformatics segment (QDI) is performing well, particularly in the clinical side, which is growing faster than the discovery side [13] - The company is transitioning from licensing agreements to SaaS contracts, which may temporarily impact growth but is expected to yield long-term benefits [14] Strategic Acquisitions - The acquisition of Genox enhances the company's ability to analyze sequencing data, particularly for small to medium-sized customers [16][17] - The company is focused on finding opportunities that deliver revenue growth with a clear path to profitability [20][21] Instrumentation and Market Opportunities - The company is launching new instrumentation platforms, which are expected to drive both instrumentation revenues and consumable pull-through [66][67] - The introduction of digital PCR solutions is seen as a cost-effective alternative to sequencing, potentially accelerating growth in the biopharma sector [25][26] Competitive Landscape and Pricing - The company maintains stable pricing in digital PCR, with no discounts offered, contrasting with aggressive pricing strategies from competitors [32] - The market for QuantiFERON tests is expected to grow, with the company holding a significant market share and facing competition from new entrants like Roche [42][44] Long-term Growth Targets - The company has set a long-term target of $250 million by 2028, with the majority of growth expected to come from life sciences rather than clinical applications [35][36] - The company anticipates a return to double-digit growth rates in instrumentation as visibility on academic spending improves [36] M&A Strategy - The company has a detailed capital allocation policy, focusing on R&D investments and potential acquisitions to enhance value [73][74] - Share buybacks are also part of the strategy, with plans to increase the buyback program to $500 million [75] Margin Expansion - The company expects continued gross margin expansion driven by operational leverage and improved utilization of production equipment [76][77] - Current gross margins are in the 70s when excluding new instruments, indicating potential for further improvement as utilization increases [78] Other Important Content - The company is technology agnostic, willing to work with various platforms for clinical applications, which may lead to more partnerships in the future [28][29] - The company is actively pursuing opportunities in oncology and other therapeutic areas, with a focus on companion diagnostics [40][41] - The market for TB diagnostics presents a significant opportunity, with a current market size of $1.5 to $1.7 billion, indicating room for growth [61]