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STANDARD BIOTOOLS INC. (LAB)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $40.8M, down 10% YoY; non-GAAP gross margin 53.2% and adjusted EBITDA loss improved 29% YoY to $(16.9)M . Instruments grew 24% YoY on Hyperion XTi strength; consumables and services were softer due to lower Americas academia demand and project timing .
  • Full-year 2025 revenue guidance maintained at $165–$175M; assumptions include a mid-teens % decline in Americas academia revenue (high single-digit $M impact) and low single-digit $M tariff headwinds if fully absorbed .
  • Balance sheet remains strong with ~$261M cash, cash equivalents, restricted cash and short-term investments; no material debt as of March 31, 2025 .
  • Versus consensus: revenue modestly beat ($40.8M vs $40.1M*) while EPS missed (–$0.07 vs –$0.04*); mix and price realization pressured GAAP gross margin, partly offset by SBS-driven efficiency gains . Values retrieved from S&P Global.*

What Went Well and What Went Wrong

  • What Went Well
    • Instruments grew 24% YoY to $7.8M, led by Hyperion XTi spatial proteomics placements; each placement builds installed base for future consumables pull-through .
    • Non-GAAP OpEx fell 22% YoY to $38.6M; adjusted EBITDA loss improved 29% YoY to $(16.9)M, reflecting $90M annualized cost reductions since the merger and SBS execution .
    • Strategic proteomics momentum: new SomaScan offerings and deepening Illumina partnership; ~90 AACR presentations showcased platform breadth; management highlighted best‑in‑class coverage vs antibody-based approaches .
  • What Went Wrong
    • Revenue declined 10% YoY to $40.8M; GAAP gross margin fell to 48.4% (from 53.1% LY) due to lower volume, price realization and mix .
    • Consumables revenue fell 16% YoY to $14.5M; services fell 16% YoY to $17.6M as lab services faced tough prior-year backlog comps and project timing .
    • Americas academia funding pressures and tariff complexity weighed on demand and margin visibility; management expects mid‑teens % decline in Americas academia revenue and low single-digit $M tariff impact if fully absorbed .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$45.0 $46.7 $40.8
EPS ($USD, basic & diluted)$(0.07) $(0.09) $(0.07)
Gross Margin % (GAAP)51.7% 46.9% 48.4%
Gross Margin % (Non-GAAP)56.9% 52.5% 53.2%
Operating Expenses ($USD Millions)$55.0 $54.7 $52.7
Non-GAAP Operating Expenses ($USD Millions)$39.8 $42.9 $38.6
Operating Loss ($USD Millions)$(31.7) $(32.8) $(33.0)
Net Loss ($USD Millions)$(26.9) $(34.1) $(26.0)
Adjusted EBITDA ($USD Millions)$(14.2) $(18.4) $(16.9)
SegmentQ3 2024Q4 2024Q1 2025
Instruments ($USD Millions)$5.59 $8.55 $7.78
Consumables ($USD Millions)$14.01 $14.68 $14.45
Lab Services ($USD Millions)$18.25 $15.70 $12.11
Field Services ($USD Millions)$6.19 $5.91 $5.50
Collaboration & Other ($USD Millions)$0.94 $1.88 $0.96
KPIsQ3 2024Q4 2024Q1 2025
Cash, cash equivalents, restricted cash & short-term investments ($USD Millions)$367.6 $295.0 $260.70
Cash & cash equivalents ($USD Millions)—$166.73 $150.88
Short-term investments ($USD Millions)—$126.15 $107.18
Results vs. Estimates (Q1 2025)ConsensusActual
Revenue ($USD Millions)$40.10*$40.80
Primary EPS ($USD)$(0.04)*$(0.07)

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)FY 2025$165–$175 $165–$175 Maintained
Americas academia revenue assumptionFY 2025High single-digit $M decline Mid‑teens % decline; high single-digit $M impact Clarified, Maintained magnitude
Tariff impact assumption (GM/Adj. EBITDA)FY 2025Low single-digit $M if fully absorbed Low single-digit $M if fully absorbed; selective pass-through Maintained
Export controls impactFY 2025No expected effect (CyTOF shipments) No expected effect Maintained
Adjusted EBITDA targetFY 2026Positive in 2026 Positive in 2026 Maintained

Earnings Call Themes & Trends

TopicQ3 2024 (Previous Mentions)Q4 2024 (Previous Mentions)Q1 2025 (Current Period)Trend
Proteomics & Illumina partnershipPositioned for distributed high-throughput; strong consumables pull-through Sized ≥$1B opportunity; 1H25 launch; transition year for revenue Launch remains near-term; cautious 2025 ramp, stronger in 2026+ Building momentum, revenue inflect later
U.S. academia fundingNoted caution; China weakness in instruments Modeled mid‑teens % decline; high single-digit $M impact Seeing order delays, travel curbs; maintaining mid‑teens decline assumption Deteriorating; confirmed behavior change
TariffsUSMCA coverage, low single-digit $M impact if absorbed —10% tariff on Singapore shipments; selective pass-through; low single-digit $M if fully absorbed Manageable headwind
Instrument demandDown 42% YoY; sequential pockets of funding release Sequential recovery; Hyperion XTi strength +24% YoY; funnel growth, no pull-forward Recovering gradually
M&A pipeline—Targeting 4–6 deals over 2 years; tuck-in complete Funnel robust; disciplined on valuation and fit Active, disciplined
Cost actions & cash burn—$80M synergies; exit-rate burn reduced $90M operationalized; adjusted cash burn ~$31M Q1 Improving profitability trajectory

Management Commentary

  • “Standard BioTools delivered a solid first quarter in line with our expectations… driving a 29% year-over-year improvement in adjusted EBITDA through Standard BioTools Business System (SBS)” — Michael Egholm, CEO .
  • “Our strategic foothold in proteomics… momentum building for SomaScan and SOMAmers… upcoming launch of our Illumina partnered NGS-based product will only further expand access” — Michael Egholm .
  • “Non-GAAP OpEx improved 22% YoY, operating loss improved 45% and adjusted EBITDA improved 29%… we executed an additional $10 million in cost reduction… totaling $90 million since the merger” — Management .
  • “Products made in Singapore and shipped to the U.S… are now subject to a 10% tariff… If fully absorbed, we estimate the impact… in the low single-digit millions” — Michael Egholm .

Q&A Highlights

  • Back-half weighting reaffirmed: larger projects expected in H2; less about typical seasonality, more about funnel visibility .
  • Instrument demand: Hyperion XTi funnel expanding; no evidence of tariff-driven pull-forward; cautious but improving trend .
  • U.S. academia: institutions delaying instrument purchases and consumables; travel curbs observed; mid‑teens decline still a reasonable planning assumption .
  • Illumina partnership revenue: moderate growth in 2025 off 2024 early-access base; more significant traction in 2026+ .
  • Cost actions: additional $10M annualized reduction (late January) supports incremental improvement in adjusted EBITDA trajectory .

Estimates Context

  • Q1 2025 revenue modestly beat consensus ($40.80M actual vs $40.10M*) and EPS missed (–$0.07 actual vs –$0.04*). Mix and lower price realization, plus volume softness in consumables/services, weighed on GAAP margins; SBS efficiencies and OpEx discipline offset part of the pressure . Values retrieved from S&P Global.*
  • Street models likely need to reflect: continued instrument strength; consumables/services variability tied to academia funding and project timing; low single-digit $M tariff impact if absorbed; back-half revenue weighting driven by funnel rather than macro recovery .

Key Takeaways for Investors

  • Instruments are a relative bright spot; Hyperion XTi placements support future consumables pull-through—watch order momentum and installed-base leverage .
  • Consumables/services weakness appears tied to academia funding and project timing; expect quarterly variability until distributed SomaScan and Illumina ramp broaden site adoption .
  • Operating discipline is tangible: non-GAAP OpEx down 22% YoY and adjusted EBITDA improved 29% YoY; cash runway (~$261M; no material debt) supports 2026 adjusted EBITDA breakeven goal .
  • Guidance maintained with explicit assumptions (academia decline, tariffs, export controls); near-term revisions likely hinge on H2 project conversion rather than macro beta .
  • Tariffs are manageable; selective pass-through and SBS efficiencies bound impact to low single-digit $M if absorbed—monitor margin cadence as mix normalizes .
  • Proteomics narrative strengthening: AACR validation, product launches, Illumina distribution; revenue impact is back-end weighted (2026+)—longer-term thesis lever .
  • Trading implications: modest revenue beat vs consensus but EPS miss and margin compression could cap upside near-term; watch H2 bookings, academia trends, and instrument pipeline for catalysts .