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Cytek Biosciences, Inc. (CTKB)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $41.5m, down 7.6% year over year; service revenue grew 24% while instrument sales softened in the U.S. and EMEA; GAAP gross margin fell to 49% and GAAP net loss widened to $11.4m .
  • Results missed Wall Street consensus: revenue $41.46m vs $42.66m*, EPS -$0.09 vs +$0.01*, and EBITDA -$13.1m vs +$0.71m*; management cut FY2025 revenue guidance to $196–$210m from $204–$212m, citing funding uncertainty and macro/tariff dynamics .
  • APAC strength and recurring revenue momentum (TTM recurring at 31% of total, up from 26% a year ago) offset regional instrument weakness; installed base reached 3,149 (+115 units in Q1) .
  • Back half weighting reiterated: management expects gross margin and adjusted EBITDA to improve as revenue follows typical seasonal patterns and region-for-region manufacturing mitigates tariff impacts .
  • Launch of Muse Micro broadens entry-level cell analysis; Singapore manufacturing commenced to add low-cost capacity and supply chain flexibility—both are medium-term catalysts for mix, margin, and recurring reagent growth .

What Went Well and What Went Wrong

What Went Well

  • Service revenue rose 24% YoY to $13.3m, driven by larger installed base and active usage; APAC and Rest of World delivered strong instrument demand (APAC +40% YoY; APAC+RoW revenue $11.4m, +35.6% YoY) .
  • Recurring revenue momentum: “our trailing 12-month recurring revenue is steadily growing, representing 31% of our total revenue in the first quarter, up from 26% a year ago” .
  • Strategic footprint and resilience: “Commenced operations in Singapore to access low-cost manufacturing, increase capacity and enhance global supply flexibility,” and “we are well positioned to emerge from this period even stronger” .

What Went Wrong

  • Instrument sales weakened in U.S. and EMEA due to academic/government funding uncertainty and cautious biopharma/CRO capital spending; product revenue fell 18% YoY to $28.1m .
  • Gross margin compression: GAAP gross margin fell to 49% (52% adjusted vs 55% last year) on lower product revenue and higher manufacturing overhead .
  • Profitability deterioration: loss from operations widened to $15.0m; GAAP net loss increased to $11.4m; adjusted EBITDA loss was $3.3m (ex-investment income -$5.5m), worse than Q1 2024 .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$51.500 $57.476 $41.457
Gross Profit ($USD Millions)$29.005 $33.652 $20.157
Gross Margin (%)56.32%*58.55%*48.62%*
Diluted EPS ($USD)$0.0072 $0.0713 -$0.0900

Values marked with * retrieved from S&P Global.

Segment breakdown:

Segment RevenueQ3 2024Q1 2025
Product ($USD Millions)$39.544 $28.110
Service ($USD Millions)$11.956 $13.347

Key profitability metrics:

MetricQ3 2024Q4 2024Q1 2025
Total Operating Expenses ($USD Millions)$33.253 $30.7 (reported) $35.132
Net Income ($USD Millions)$0.941 $9.643 (incl. nonrecurring benefits) -$11.402
Adjusted Gross Margin (%)60% 61% 52%
Adjusted EBITDA ($USD Millions)$7.627 $12.532 -$3.251

Q1 2025 vs Estimates:

MetricActual Q1 2025Consensus Q1 2025# of EstimatesSurprise
Revenue ($USD Millions)$41.457 $42.663*5*Miss (~$1.206m; ~-2.8%)*
EPS ($USD)-$0.0900 $0.0100*1*Miss (-$0.1000)*
EBITDA ($USD Millions)-$13.100*$0.711*N/AMiss (~$13.811m)*

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY 2025$204–$212 $196–$210 Lowered
Gross Margin (qualitative)FY 2025N/AExpect quarterly GM to improve as revenues rise seasonally Qualitative upward trajectory
Revenue PhasingFY 2025Back-half weighted expectation Back-half weighted; uncertainties in market/geopolitics Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Tariffs/MacroEssential nature of flow cytometry supporting demand; sequential U.S. improvement NIH indirect funding cuts, new export controls, tariff risks flagged; U.S. softer, APAC strong Tariff impact limited: GM hit 1–3%, mitigated via region-for-region manufacturing and surcharges; able to sell in China Macro headwinds rising; mitigation improving
Supply Chain/ManufacturingN/ASingapore facility opened for low-cost capacity/supply flexibility Singapore operations commenced; manufacturing in U.S., China, Singapore for regional optimization Diversification strengthening
Product PerformanceInstrument demand resilient; Aurora/Northern Lights growth; 164 units sold Aurora CS +13% placements, Northern Lights +12%; ESP module announced Aurora CS revenue +15% YoY; Northern Lights +6% revenue, analyzer sales +8%; installed base +115 units to 3,149 Continued strength despite U.S./EMEA softness
Regional TrendsEMEA/APAC strength; U.S. normalizing APAC +21% YoY in Q4; RoW strong; U.S. weaker APAC+RoW $11.4m +35.6% YoY; U.S./EMEA slowdown late Q1 APAC acceleration; U.S./EMEA headwinds
Recurring Revenue/CloudCloud users >13,600; initial reagent orders via Cloud Cloud users >16,000; service GM 57% in 2024 TTM recurring 31% of revenue vs 26% p/y; >18,000 Cloud users (+2,000 in Q1) Rapid adoption; recurring mix rising
Clinical/RegulatoryClinical approvals in China/EU; Northern Lights-CLC Expanded clinical reagents approvals in China; Northern Lights-CLC placements +15% EU MRD panel validated; rollout across sites (Netherlands, Australia, Brazil) Growing clinical traction
Capital AllocationStock repurchase program ongoing New $50m 2025 buyback authorized Repurchased $10.6m in Q1; plan to continue while preserving M&A capacity Balanced buybacks/M&A

Management Commentary

  • CEO perspective on resilience and positioning: “I am encouraged by the resilience of our portfolio… double-digit revenue growth in Cytek cell sorters and our service business, and strength in the APAC region… well positioned to emerge from this period even stronger” .
  • Strategic manufacturing stance: “We have established manufacturing operations in three countries: the U.S., China and Singapore… enhances the resilience of our supply chain” .
  • Recurring model emphasis: “our trailing 12-month recurring revenue is… 31% of our total revenue in the first quarter, up from 26% a year ago” .
  • Product roadmap and entry-level expansion: Launch of Muse Micro to simplify flow cytometry for smaller labs and new markets; available now .

Q&A Highlights

  • Tariffs quantified and mitigations: GM headwind “fairly limited… 1% to 3%,” mitigated via region-for-region manufacturing, component sourcing changes, and customer surcharges; still able to sell in China by manufacturing in China/Singapore .
  • Funding environment: Academic/government uncertainties factored into guidance; >50% of revenue outside U.S. less exposed to NIH shifts .
  • Phasing and seasonality: Back-half weighted growth expected; typical pattern with stronger Q2-Q4; uncertainty may lessen later in year .
  • Capital allocation: Q1 buybacks ~$10.5m; intent to pursue both buybacks and M&A given cash balance .
  • Product demand: Aurora Cell Sorter growth driven by analyzer-sorter panel harmonization and high-color (>40) performance; Muse Micro early interest noted .

Estimates Context

  • Revenue missed consensus by ~2.8%: $41.46m actual vs $42.66m* consensus (5 estimates)* .
  • EPS missed materially: -$0.09 actual vs +$0.01* consensus (1 estimate)* .
  • EBITDA missed materially: -$13.1m* actual vs +$0.71m* consensus; note company also reports adjusted EBITDA loss of $3.3m (ex-investment income -$5.5m) .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term sentiment: Guidance cut to $196–$210m and consensus misses create pressure; monitor U.S./EMEA instrument order flow and NIH/tariff developments for inflection risk .
  • Resilience in APAC and recurring mix: APAC demand and recurring revenue growth (31% TTM) provide ballast; Cloud/user growth supports reagent attachment over time .
  • Margin path: Expect GM/EBITDA to improve sequentially with seasonal revenue and tariff mitigation; Singapore production should aid COGS over time .
  • Product momentum: Aurora CS/Northern Lights placement growth and Muse Micro expansion underpin mid-term demand, even amid capital constraints .
  • Balance sheet optionality: $265.6m cash/marketable securities and ongoing buybacks/M&A capacity support strategic flexibility .
  • Trading lens: Watch Q2/Q3 order cadence, APAC strength vs U.S./EMEA softness, and any clarity on NIH/tariff impacts—these are likely near-term stock drivers .
  • Medium-term thesis: Installed base scale, harmonized workflows for big pharma/CROs, and recurring/service economics can support durable growth once macro visibility improves .

KPIs

KPICurrentPrior/Context
Installed base (units)3,149; +115 in Q1 3,034 at FY2024 year-end
Service revenue ($USD Millions)$13.3; +24% YoY $10.7 in Q1 2024
Recurring revenue mix (TTM)31% of total 26% a year ago
APAC + RoW revenue ($USD Millions)$11.4; +35.6% YoY N/A
Cash & marketable securities ($USD Millions)$265.6 at 3/31/25 $277.9 at 12/31/24
Share repurchases ($USD Millions)$10.6 in Q1 $21.6 in FY2024

Additional Notes

  • Non-GAAP impacts: Adjusted gross margin 52% vs 55% last year; adjusted EBITDA loss -$3.3m (ex-investment income -$5.5m), vs -$0.7m and -$2.6m last year—reflect lower product revenue and higher overhead .
  • Segment mix: Product revenue $28.1m vs service $13.3m; product weakness concentrated in U.S./EMEA; service margin improvement supports total margin resilience .
  • Product roadmap: Muse Micro launched; extends reach into entry-level and supports reagent growth; complements Aurora/Northern Lights portfolio .