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BS

BIOLIFE SOLUTIONS INC (BLFS)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue of $28.07M grew 31% YoY and 10% QoQ, beating S&P Global consensus of $25.69M; Adjusted/Primary EPS was $0.04 vs consensus of -$0.01, driven by strength in Biopreservation Media (BPM) and commercial therapy customers . Revenue Consensus Mean: $25.69M*; Primary EPS Consensus Mean: -$0.01*.
  • Adjusted EBITDA rose to $7.83M (28% margin) vs $5.02M (23%) a year ago, reflecting operating leverage; GAAP gross margin was 62% (adjusted 64%) with a ~2% revenue headwind from a $0.6M inventory reserve and modestly less favorable mix .
  • Management raised FY2025 revenue guidance (post-evo divestiture) to $95–$96M and Cell Processing to $93–$94M (from $91–$93M), citing durable growth from commercial BPM customers; they expect a sequential Q4 revenue dip due to $1.3M of BPM shipments pulled forward into Q3 .
  • Strategic sale of the evo cold chain logistics business ($25.5M cash) completes the portfolio streamlining into a pure-play cell processing company and elevates pro forma liquidity (management: “approximately $125 million” cash and marketable securities following the sale) .

What Went Well and What Went Wrong

  • What Went Well

    • “Cell processing revenue increased 33% year over year,” powering total revenue +31% and “adjusted EBITDA margin expanding 500 basis points YoY to 28%,” demonstrating operating leverage .
    • Guidance raised: “Cell Processing revenue guidance from $91–$93M to $93–$94M… Total revenue (adjusted for evo) to $95–$96M” .
    • Portfolio focused: “The divestiture of our evo… reshaped BioLife into a leading pure‑play cell processing company centered on our highest‑value, recurring revenue franchises” .

  • What Went Wrong

    • Gross margin pressure: adjusted GM 64% vs 67% YoY, impacted by a one‑time $0.6M inventory reserve (~2% of revenue) and mix .
    • GAAP OpEx elevated vs prior year, including higher stock‑based comp (+$1.8M YoY in Q3) tied to performance awards .
    • Q4 set-up: guidance implies sequential revenue decline due to $1.3M BPM order pulled forward to Q3 at a customer’s request, a timing effect to monitor .

Financial Results

Headline performance vs prior periods and margins

MetricQ3 2024Q2 2025Q3 2025
Revenue ($M)$21.39 $25.42 $28.07
GAAP Gross Margin %63% 62% 62%
Adjusted Gross Margin %67% 65% 64%
Adjusted EBITDA ($M)$5.02 $6.10 $7.83
Adjusted EBITDA Margin %23% 24% 28%
GAAP EPS (Continuing Ops)-$0.01 -$0.33 $0.01

Estimate comparisons (S&P Global)

MetricQ3 2025 ConsensusQ3 2025 Actual
Revenue ($M)$25.69*$28.07
Primary (Adjusted) EPS-$0.01*$0.04*
  • Values retrieved from S&P Global (*).

Segment breakdown

SegmentQ2 2025 ($M)Q3 2025 ($M)YoY change
Cell Processing$23.0 $25.4 +33%
evo + Thaw$2.5 $2.7 +15%
Total$25.4 $28.1 +31%

KPIs and mix

KPIQ2 2025Q3 2025
BPM embedded in approved therapies16 therapies 16 therapies
BPM trials coverage (U.S.)>250 trials; >70% share; >30 Phase III ~80% share ~250 trials; >70% share; >30 Phase III ~80% share
BPM revenue mix – commercial customers~40% of BPM revenue nearly 50% of BPM revenue
BPM direct vs distributorn/a~70/30 vs historical 60/40
Top 20 BPM customersn/a~80% of BPM revenue

Additional P&L and cash items

  • GAAP operating loss improved to $(0.09)M vs $(0.42)M YoY; adjusted operating income $1.29M vs $0.17M YoY .
  • GAAP net income from continuing ops $0.62M vs $(0.47)M YoY; adjusted net income $2.04M vs $0.03M YoY .
  • Cash, cash equivalents, and marketable securities: $98.4M at 9/30/25 (excludes $25.5M evo proceeds received in October) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue (incl. evo then adjusted)FY2025$100–$103M (incl. ~$8M evo) $95–$96M (adjusted for evo sale) Raised vs evo‑adjusted prior (to $95–$96M from $92–$95M)
Cell Processing RevenueFY2025$91–$93M $93–$94M Raised
GAAP Gross MarginFY2025Low 60% Low 60% Maintained
Adjusted Gross MarginFY2025Mid 60% Mid 60% Maintained
Net Loss (GAAP)FY2025Reduction vs 2024 Reduction vs 2024 Maintained
Adjusted EBITDA MarginFY2025Expansion vs 2024 Expansion vs 2024 Maintained

Management noted Q4 revenue will be sequentially lower vs Q3 due to the $1.3M BPM order pulled forward into Q3 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
BPM leadership and CGT penetrationQ1/Q2: BPM embedded in 16–17 commercial CGTs; >250 trials; >30 Phase III; ~40% BPM from commercial customers 16 approved therapies; ~250 trials; >30 Phase III; commercial share nearly 50% Strengthening commercial mix
PricingNot highlighted in Q1 release; Q2 emphasized operating leverage 2026 list price increases planned (4%–6% by SKU) Positive pricing in 2026
Mix/ChannelsQ1/Q2: healthy direct & distributor channels Mix shifted to ~70/30 direct/distributor on BPM; top 20 = ~80% of BPM revenue More direct, higher visibility
Portfolio strategyQ1: Acquired PanTHERA (IRI technology) ; Q2: Raised guidance; streamlined ops Sold evo ($25.5M) to become pure‑play cell processing; exploring adjacencies with disciplined M&A filter Sharpened focus; disciplined capital allocation
Macro/fundingQ2: momentum despite uncertain macro Distributors not flagging funding headwinds; some Q4 gov’t shutdown risk baked into guidance Cautious but stable
Cross-sell initiativesQ1: expanding solutions set Targeting CryoCase, CellSeal, hPL, CT5 into top direct customers; headcount ~6 focused on cross-sell Building for multi-product adoption

Management Commentary

  • “We delivered another strong quarter… operating leverage… adjusted EBITDA margin expanding 500 basis points year over year to 28%.”
  • “The divestiture of our evo cold chain logistics business… reshaped BioLife into a leading pure‑play cell processing company centered on our highest‑value, recurring revenue franchises.”
  • “We are now raising our adjusted 2025 total revenue guidance to $95–$96 million… increasing our cell processing revenue guidance to $93–$94 million.”
  • Liquidity and capital allocation: sale of evo “for approximately $25.5 million in cash… bringing cash and marketable securities to approximately $125 million,” with a disciplined M&A filter to avoid degrading the financial profile .

Q&A Highlights

  • Pricing: Company plans 2026 price increases of 4%–6% by SKU; 2025 YTD price growth exceeded list increases due to contract negotiations .
  • Sales & cross‑sell: About six focused heads on cross‑selling CryoCase, CellSeal, hPL, CT5 into top ~20 direct customers; will add selectively in 2026 pending ROI .
  • evo divestiture cost tail: No lingering OpEx expected in Q4; Q3 ex‑evo results provide a good baseline .
  • Capital allocation: Exploring adjacencies in 2026 with strict criteria to avoid negative impact on margins/financial profile .
  • Q4 cadence: Sequential revenue decline expected due to $1.3M BPM order pulled forward into Q3 .

Estimates Context

  • Q3 2025 vs S&P Global: Revenue beat ($28.07M actual vs $25.69M consensus)* and Adjusted/Primary EPS beat ($0.04 actual vs -$0.01 consensus)* . Values retrieved from S&P Global.
  • EBITDA: S&P Global “EBITDA Consensus Mean” for Q3 was $5.70M*, while the company reported GAAP EBITDA of $1.30M and Adjusted EBITDA of $7.83M; note methodology differences between GAAP EBITDA and adjusted EBITDA (company adds back SBC and other items) . Values retrieved from S&P Global.
  • Looking ahead: Q4 2025 consensus revenue $24.05M and Primary EPS -$0.00 to -$0.01*, consistent with management’s commentary for a sequential Q4 revenue dip from the Q3 pull‑forward . Values retrieved from S&P Global.

Key Takeaways for Investors

  • Durable topline momentum: 8th consecutive quarter of sequential growth, revenue +31% YoY, with strengthening mix toward commercial BPM; visibility supported by top‑20 customers representing ~80% of BPM revenue .
  • Quality of earnings improving: Adjusted EBITDA margin expanded to 28% despite a one‑time inventory reserve; operating leverage evident as focused portfolio scales .
  • Guidance reset higher (post‑evo): FY2025 total revenue $95–$96M and Cell Processing $93–$94M, with margin frameworks maintained; monitor implied Q4 step‑down from shipment timing .
  • Strategic focus: Portfolio streamlined via evo sale; balance sheet strengthened, with disciplined approach to M&A adjacencies to preserve margin trajectory .
  • 2026 setup: Management expects price increases (4%–6%), continued growth led by commercial customers, and potential cross‑sell ramp; full‑year 2026 customer forecasts expected by January to support precise FY26 guidance in February .
  • Risk watch‑list: Mix and inventory adjustments can pressure gross margin; macro/government funding dynamics monitored (no red flags from distributors), and Q4 sequential revenue dip from Q3 pull‑forward is transitory per management .
  • Trading implications: Near‑term positive on beats and raised guidance; stock may focus on sustainability of BPM commercial growth, cross‑sell execution, and clarity on 2026 growth/price realization; any confirmation of cross‑sell wins (CryoCase/CellSeal/hPL/CT5) would be incremental catalysts .

Notes:

  • S&P Global estimates and “Primary EPS/Revenue/EBITDA Consensus Mean” values marked with * are Values retrieved from S&P Global.
  • Company‑reported actuals and guidance sourced from the Q3 2025 8‑K/press release and earnings call .