Executive Summary

Q2 2025 revenue of $45.6M declined 2% YoY, but improved sequentially vs Q1 ($41.5M); GAAP gross margin rose to 52% from 49% in Q1 as services and reagents grew 18% YoY each, while instruments remained pressured in EMEA/APAC .
Versus S&P Global consensus, revenue missed by ~$0.7M (−1.6%) and GAAP EPS of −$0.04 came in below Primary EPS consensus of −$0.02; consensus based on 4 revenue and 2 EPS estimates (values from S&P Global)*.
Full-year 2025 revenue guidance narrowed to $196–$205M (from $196–$210M in May and $204–$212M in Feb), effectively lowering the top end; management expects stronger 2H on typical back-end-weighted instrument seasonality and recurring revenue momentum .
Product cycle catalysts include the launch of Aurora Evo (throughput, automation, small particle detection) and growing Cytek Cloud adoption (20.5k users, +27% YTD), supporting share gains even in a weak CapEx environment .

What Went Well and What Went Wrong

What Went Well

Recurring revenue strength: service and reagent revenue each grew 18% YoY; recurring revenue reached 32% of LTM sales, providing resilience and margin support .
U.S. outperformance and installed base growth: U.S. revenue +7% YoY; 146 instruments added in Q2, installed base reached 3,295; FSP unit volumes +3% YoY, led by Aurora analyzers .
Innovation cadence: Aurora Evo launched with 2x throughput, automation, and small particle detection; management expects it to be margin-supportive at the high end. “We believe [Evo] will accelerate broader adoption of our solutions” (CEO) .

What Went Wrong

Instruments pressured in EMEA/APAC: EMEA total revenue −11% YoY on weaker pharma/biotech; APAC −12% YoY after a strong Q1 due to longer sales cycles .
Gross margin below prior year: GAAP gross margin 52% vs 55% in Q2’24 (mix and one-time service parts adjustment), though up from 49% in Q1 .
Guidance trimmed at the top end: FY25 range narrowed to $196–$205M as management deems prior high end “not reasonably attainable” given market conditions .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	46.617	41.457	45.602
GAAP Gross Margin %	55%	49%	52%
Adjusted Gross Margin %	58%	52%	56%
Operating Income (Loss) ($M)	(8.527)	(14.975)	(10.624)
Net Loss per Share (GAAP) ($)	(0.08)	(0.09)	(0.04)
Adjusted EBITDA ($M)	2.947	(3.251)	1.270

Consensus vs Actual (Q2 2025)

Revenue: $45.602M actual vs $46.349M consensus (−$0.747M, −1.6%)*.
EPS (GAAP): −$0.04 actual vs Primary EPS consensus −$0.02*; company reports GAAP EPS, consensus is Primary EPS.
Estimate counts: Revenue (n=4), EPS (n=2).
Values retrieved from S&P Global.*

Segment Mix

Segment Revenue ($M)	Q2 2024	Q1 2025	Q2 2025
Product (Instruments + Reagents)	34.576	28.110	31.415
Service	12.041	13.347	14.187
Total	46.617	41.457	45.602

KPIs

KPI	Q2 2025
Installed base (units)	3,295
Instruments added (units, Q2)	146
FSP instrument unit growth (YoY)	3%
Recurring revenue (LTM % of total)	32%
Service revenue growth (YoY)	18%
Reagent revenue growth (YoY)	18%
U.S. revenue growth (YoY)	7%
EMEA revenue growth (YoY)	−11%
APAC revenue growth (YoY)	−12%
Cash & marketable securities (6/30/25)	$262.0M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$196–$210M (May 8, 2025)	$196–$205M (Aug 6, 2025)	Narrowed; top end lowered
Revenue	FY 2025	$204–$212M (Feb 27, 2025)	$196–$205M (Aug 6, 2025)	Lowered and narrowed

Management commentary: “We are now guiding to $196–$205M… we do not believe the high end of our existing range is reasonably attainable” .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
AI/Technology initiatives	Launched Muse Micro in Q1; focus on next-gen cell analysis portfolio .	Launched Aurora Evo (2x throughput, automation, small particle); Cytek Cloud users 20.5k (+27% YTD) and AI panel builder highlighted .	Expanding platform innovation.
Supply chain/operations	Opened Singapore facility (Q4); commenced operations Q1 to add low-cost capacity and flexibility .	Margin cadence expected to improve in H2 with seasonal mix and absence of prior one-time overhead; service inventory adjustment partly non-recurring .	Operational efficiency improving.
Tariffs/macro	Analyst referenced 1–3% tariff headwinds “last quarter” in Q&A; macro and NIH clarity still in focus .	CFO: better margins expected with seasonal mix; no explicit tariff update; NIH funding clarity would help U.S. academic/government .	Macro headwinds persist; monitoring.
Product performance	Q1: Double-digit growth in cell sorters and services; strength in APAC .	FSP unit volumes +3% YoY; U.S. +7% YoY; EMEA/APAC instrument softness; Evo expected to be margin-supportive at high end .	Sequential improvement; mixed YoY.
Regional trends	Q1 strength in APAC .	U.S. +7% YoY; EMEA −11%; APAC −12% after strong Q1 .	Mixed; U.S. resilient.
R&D execution	R&D declined in Q4 2024; disciplined OpEx .	R&D down 12% YoY in Q2 .	Continued spend discipline.

Management Commentary

“Our second quarter revenue… was $45.6 million, down 2.2% vs 2024… due to lower product revenue in EMEA and APAC, partially offset by strong growth in service revenue and growth in U.S. product revenue” (CEO) .
“Service and reagent revenue each increased by 18% vs 2024… recurring revenue businesses reached 32% of trailing twelve-month sales” (CEO) .
“We expanded our global footprint by 146 instruments, bringing [installed base] to 3,295 units… AURORA analyzer was the strongest driver” (CEO) .
“Adjusted gross margin was 56% in Q2 (58% in prior year)… [GAAP] gross margin improved from 49% in Q1 to 52% in Q2” (CFO) .
“We are now guiding [FY25 revenue] to a range of $196 million to $205 million… representing −2% to +2% growth” (CFO) .

Q&A Highlights

Market share and end-market health: Management believes flow cytometry market has softened with capital funding challenges, but Cytek’s FSP unit volumes are growing, implying share gains (CFO: “that would imply we’re taking share”) .
H2 setup and cadence: Expect typical back-end weighting with margin improvement as instrument mix grows and one-time effects fade; installed base drives durable service growth .
Macro drivers: Lower rates and NIH funding clarity could help instruments; U.S. academic/government has been weaker; big pharma harmonization benefits platform adoption .
Product mix and margins: Aurora Evo is the larger revenue contributor at the high end and is margin-supportive; Muse Micro is sub-$20k and margin-neutral overall .
Capital deployment: Open to M&A in core/adjacent areas to leverage customer overlap; continuing organic investments in reagents and service .

Estimates Context

Q2 2025 S&P Global consensus: Revenue $46.349M* (n=4), Primary EPS −$0.02* (n=2). Actuals: Revenue $45.602M; GAAP EPS −$0.04. Result: modest revenue miss (~−1.6%) and EPS below consensus (basis note: Primary EPS vs reported GAAP EPS)* .
Values retrieved from S&P Global.*

Where estimates may adjust:

Slight trimming of 2H revenue trajectories for EMEA/APAC instruments; potential upward bias for recurring revenue (service and reagents) given sustained high-teens growth and installed base trends .
Gross margin path likely nudged higher for H2 on mix and normalization of one-time items as guided by CFO .

Key Takeaways for Investors

Cyclical instrument softness persists (EMEA/APAC), but recurring revenue growth (+18% YoY in both service and reagents) and U.S. strength (+7% YoY) support sequential recovery and margin improvement .
Guidance narrowed to $196–$205M, lowering the top end; expect back-end-weighted instrument seasonality to be the key 2H catalyst along with Evo adoption .
Product cycle remains a differentiator: Aurora Evo’s throughput/automation and harmonization should resonate with big pharma, supporting mix and margins; Muse Micro expands entry-level reach .
Evidence of share gains via FSP unit growth (+3% YoY) despite a weak CapEx tape; installed base scale (3,295 units) is compounding recurring revenue opportunity .
Margin setup is improving: Q2 GAAP gross margin 52% vs 49% in Q1; CFO flagged further H2 improvement as instrument mix rises and one-offs subside .
Balance sheet remains a strategic asset ($262M cash/marketable securities) for organic investment and selective M&A; buybacks continue (Q2: $4.5M) .
Near-term trading lens: watch order cadence into September (3rd month weighting), EMEA instrument demand stabilization, reagent/service growth durability, and early Evo funnel conversion .

Footnote: * Consensus (S&P Global) values retrieved via GetEstimates.

Cytek Biosciences, Inc. (CTKB)·Q2 2025 Earnings Summary