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Cytek Biosciences, Inc. (CTKB)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 revenue grew 2% YoY to $52.3M and rose 15% QoQ, modestly above consensus, but GAAP EPS of $(0.04) missed a small positive consensus; gross margin improved sequentially to 53% but remained below last year due to materials/tariff headwinds and higher service delivery costs . Consensus: Revenue $51.1M*, EPS $0.01* (2 rev ests, 4 EPS ests)*. Values retrieved from S&P Global.
  • Mix was favorable in APAC (+25% YoY), U.S. total revenue +12% YoY on strong service, while EMEA declined 28% on weaker academic/government spending; recurring revenues (service + reagents) accelerated (+19% YoY) and reagent revenue hit a record (+21% YoY) .
  • Operating leverage was pressured by a 47% YoY increase in G&A (patent litigation and a $0.7M non‑recurring ATM write‑off), driving a larger operating loss (‑$9.2M vs ‑$4.2M a year ago) and net loss of ‑$5.5M (vs +$0.9M a year ago) despite positive adjusted EBITDA of $2.5M .
  • FY25 revenue guidance reaffirmed at $196–$205M (‑2% to +2% YoY), with management citing typical Q4 biopharma seasonality/budget flush, continued APAC strength, U.S. stabilization, and sustained momentum in recurring revenue .
  • Potential stock reaction catalysts: sustained service/reagent growth, APAC momentum and Aurora Evo uptake versus concerns around EMEA weakness, litigation‑driven opex, and margin pressure from tariffs/materials .

What Went Well and What Went Wrong

  • What Went Well

    • Recurring revenue engines accelerating: service +19% YoY and reagents +21% YoY; reagent revenue achieved highest‑ever quarter, supported by faster delivery times and better customer service, and service growth came from the expanding installed base/utilization . “Reagent revenue grew 21% globally year‑over‑year… Service continued to deliver strong revenue growth, with 19% growth in Q3” .
    • APAC strength and U.S. stabilization: APAC increased 25% YoY across instruments, service, and reagents; U.S. total revenue +12% YoY with instruments flat vs a tough comp, notably +10% instrument growth to biopharma .
    • Product/innovation traction: Installed base expanded by 161 units to 3,456; Aurora cell sorter +35% YoY; Aurora Evo launched late Q2 with strong reception; Muse Micro early traction; Cytek Cloud users >22,600 (+40% YTD) with AI‑powered Panel Builder .

  • What Went Wrong

    • EMEA weakness deepened: total EMEA revenue down 28% YoY, notably from academic/government customers amid public spending shifts; also single‑digit declines in pharma/biotech/CRO accounts .
    • Margin pressure: GAAP gross margin 53% (down from 56% YoY), driven by lower service margin (headcount/travel), higher materials and tariff costs, and higher overhead; although sequential improvement (52% → 53%) occurred on higher product GM/absorption .
    • OpEx elevated and litigation costs: G&A +47% YoY on patent litigation and a $0.7M non‑recurring ATM cost write‑off, widening operating loss (‑$9.2M vs ‑$4.2M YoY) and driving a swing to net loss despite positive adjusted EBITDA .

Financial Results

MetricQ3 2024Q2 2025Q3 2025Q3 2025 Consensus
Revenue ($USD Millions)$51.5 $45.6 $52.3 $51.1*
GAAP Diluted EPS$0.01 $(0.04) $(0.04) $0.01*
GAAP Gross Margin %56% 52% 53% —
Adjusted Gross Margin %60% 56% 55% —
Operating Income (Loss) ($M)$(4.2) $(10.6) $(9.2) —
Net Income (Loss) ($M)$0.9 $(5.6) $(5.5) —
Adjusted EBITDA ($M)$7.6 $1.3 $2.5 —

Note: Consensus values marked with asterisks are from S&P Global; Values retrieved from S&P Global.

Segment/Revenue Mix

Revenue ComponentQ3 2024Q2 2025Q3 2025
Product Revenue ($M)$39.5 $31.4 $38.1
Service Revenue ($M)$12.0 $14.2 $14.2
Total Revenue ($M)$51.5 $45.6 $52.3

Key Performance Indicators

KPIQ1 2025Q2 2025Q3 2025
Installed Base (units)3,149 3,295 3,456
Instruments Added (units)115 146 161
Recurring Revenue YoY Growth—+16% +19%
Reagent Revenue YoY Growth——+21%
Service Revenue YoY Growth——+19%
U.S. Revenue YoY——+12%
EMEA Revenue YoY——−28%
APAC Revenue YoY——+25%
Cash & Marketable Securities ($M)$265.6 $262.0 $261.7

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)FY 2025$196–$210 (Q1 update) $196–$205 (Q2 narrowed) Lowered top end in Q2
Revenue ($M)FY 2025$196–$205 (Q2) $196–$205 (Q3) Maintained

Management reiterates expectation for typical Q4 biopharma budget seasonality and continued APAC strength, with EMEA remaining pressured .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025)Previous Mentions (Q1 2025)Current Period (Q3 2025)Trend
APAC demandLower product revenue in APAC, offset by strong service; installed base growth APAC strength while US/EMEA slowed APAC +25% YoY across instruments, service, reagents Improving
EMEA macroLower product revenue; region challenging US/EMEA product sales slowdown EMEA −28% YoY; academic/government weakness Deteriorating/Weak
U.S. instrumentsU.S. product revenue growth; innovation launch (Aurora Evo) U.S. product sales slowed U.S. revenue +12% YoY; instruments flat vs strong comp; +10% to biopharma Stabilizing
ReagentsRecurring revenue +16% LTM mix 32% Strategy to grow recurring revenue Reagent +21% YoY, record quarter; ops improvements (delivery, service) Accelerating
ServiceRecurring revenue growth Double‑digit service growth Service +19% YoY; driven by installed base/utilization Accelerating
Product innovationAurora Evo launched Muse Micro launched Aurora sorter +35% YoY; Evo strong reception; Muse Micro strong reception Positive
AI/Software——Cytek Cloud >22.6k users, +40% YTD; AI‑powered Panel Builder Expanding adoption
Tariffs/materials——Gross margin pressured by higher materials/tariff costs Headwind persists
Legal/regulatory——G&A +47% YoY on patent litigation; ATM write‑off $0.7M One‑off + ongoing legal costs

Management Commentary

  • “Our third quarter results are encouraging and demonstrate the strength of our established brand and technology and our market leadership position.” – Wenbin Jiang, CEO .
  • “In the third quarter, we expanded our global footprint by 161 instruments… our Aurora cell sorter was the strongest contributor in Q3, growing 35% year‑over‑year… Aurora Evo… has had a strong reception.” – CEO .
  • “Reagent revenue grew 21% globally year‑over‑year… Service continued to deliver strong revenue growth, with 19% growth in Q3 versus the prior year quarter.” – CFO .
  • “GAAP gross margin was 53% versus 56% in the prior year quarter… due to lower service gross margin… and higher materials and tariff costs… GAAP gross margin improved sequentially from 52% in Q2.” – CFO .
  • “General and administrative expenses were $16.1 million, up 47%… primarily attributable to legal expenses related to a patent litigation case and… a $0.7 million… write‑off of deferred offering costs.” – CFO .
  • “We are reaffirming our full‑year 2025 revenue outlook for a range of $196 million‑$205 million.” – CFO .

Q&A Highlights

  • Product cycle and differentiation: Aurora Evo designed for pharma features (higher throughput, small particle detection, automation, harmonization). Management sees favorable customer response and 12% instrument revenue growth to biopharma globally, 10% in U.S. .
  • Demand outlook and budgets: APAC strong; U.S. stabilizing with biopharma offsetting weak academic/government; EMEA pressured but may approach a bottom after ~30% YTD decline. 2026 too early; current trends expected to continue absent exogenous shocks .
  • Guidance cadence and Q4 seasonality: Reaffirmed FY guide; expect typical Q4 biopharma budget flush driving seasonal step‑up; service/reagents momentum to continue .
  • Capital allocation: Aim to balance share repurchases (sized roughly to free cash flow; paused in Q3 after spending above FCF YTD) and selective M&A; opportunistic on buybacks .

Estimates Context

MetricActual (Q3 2025)Consensus (Q3 2025)Beat/Miss
Revenue ($M)$52.293 $51.136*Beat by ~$1.16M (~2.3%)*
GAAP EPS$(0.04) $0.01*Miss by ~$0.05*
EPS # of Estimates—2*—
Revenue # of Estimates—4*—

Note: Consensus values marked with asterisks are from S&P Global; Values retrieved from S&P Global.

Implications: Slight top‑line beat but EPS miss driven by litigation‑related G&A and margin pressures (materials/tariffs, service delivery costs) suggest estimate models should reflect higher opex and cautious gross margin near‑term, offset by improving sequential margin and positive adjusted EBITDA trajectory .

Key Takeaways for Investors

  • Mix and geography: APAC strength (+25% YoY) and U.S. stabilization (+12% YoY) are offsetting EMEA weakness (−28% YoY); watch for Europe to bottom per commentary, but near‑term remains a drag .
  • Recurring revenue flywheel: Service (+19% YoY) and reagents (+21% YoY; record quarter) are accelerating, supported by installed base growth and operational/logistics improvements—providing resilience and visibility .
  • Product cycle momentum: Aurora sorter +35% YoY and Aurora Evo’s strong reception, plus Muse Micro adoption, support instrument pipeline into Q4 seasonality and 2026 .
  • Profitability path: Sequential GM improvement (52% → 53%) and positive adjusted EBITDA ($2.5M) are constructive, but litigation‑influenced G&A and tariff/materials headwinds weigh on GAAP EPS; monitor opex normalization and cost actions .
  • Guidance intact: FY25 revenue $196–$205M reaffirmed; Q4 biopharma budget flush is a key swing factor, alongside continued service/reagent momentum .
  • Balance sheet/returns: $261.7M in cash and marketable securities provides flexibility; buybacks likely opportunistic and sized to FCF; ongoing M&A evaluation .
  • Watch list: EMEA demand trajectory, gross margin sensitivity to tariffs/materials and service delivery costs, litigation progress, reagent scale‑up execution, and biopharma capital budgets .