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STANDARD BIOTOOLS INC. (LAB)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 continuing operations revenue was $19.552M, down 11% YoY, while combined company revenue was $46.245M; gross margin fell to 48.5% (non-GAAP 53.5%) on lower volume and product mix .
  • Revenue modestly beat S&P Global consensus ($18.0M*), but EPS missed: actual continuing ops EPS was -$0.08 vs -$0.02* consensus; adjusted EBITDA was -$16.544M .
  • Management maintained FY25 guidance: combined revenue $165–$175M and continuing ops revenue $78–$83M; reiterated adjusted EBITDA breakeven target in 2026 .
  • Operational restructuring executed in September (≈20% RIF) targeting >$40M annualized cost savings and facility consolidation to Singapore; cash & equivalents at quarter end were $217.0M, with ≈$550M expected at Illumina transaction close in 1H 2026 .

Consensus values marked with *; Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Imaging momentum: Instruments revenue saw growth in imaging despite capital-constrained end-markets; consumables strength in imaging partly offset declines elsewhere .
  • Cost actions underway: Restructuring plan expected to deliver >$40M annualized savings and support adjusted EBITDA breakeven in 2026; consolidation to Singapore and planned HQ move to Boston aimed at efficiency .
  • Strategic positioning: Combined revenue reached $46.245M; proteomics platform traction underscored by PRECISE-SG100K selecting the SomaScan 11K Assay for 100,000 samples, reinforcing biobank leadership .
  • CEO tone: “We are simplifying operations, increasing productivity and driving the go-forward business toward profitability expected in 2026… well positioned to expand our portfolio through strategic M&A” .

What Went Wrong

  • Top-line softness in continuing ops: Q3 revenue $19.6M declined 11% YoY, driven by consumables down 17% (flow/microfluidics project funding declines) and services down 9% (fewer contracts, higher uptime) .
  • Margin compression: GAAP gross margin fell to 48.5% (from 54.9% YoY); non-GAAP gross margin to 53.5% (from 57.3%), driven by lower volume and mix .
  • Losses widened: Net loss from continuing ops was -$31.684M vs -$21.919M YoY, including $9.428M restructuring charges; adjusted EBITDA loss expanded to -$16.544M (vs -$13.658M YoY) .

Financial Results

Continuing Operations – Key Metrics vs Prior Periods and Prior Year

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$22.086 $21.762 $19.552
Gross Margin %54.9% 48.8% 48.5%
Non-GAAP Gross Margin %57.3% 54.1% 53.5%
Operating Expenses (GAAP, $M)$38.825 $36.325 $42.422
Operating Expenses (Non-GAAP, $M)$26.320 $27.906 $27.004
Adjusted EBITDA ($M)-$13.658 -$16.135 -$16.544
Net Loss per Share (Continuing Ops, $)-$0.06 -$0.05 -$0.08

Actual vs S&P Global Consensus – Q3 2025

MetricActualConsensus
Revenue ($USD Millions)$19.552 $18.000*
EPS (Continuing Ops, $)-$0.08 -$0.02*

Consensus values marked with *; Values retrieved from S&P Global.

Segment Breakdown – Continuing Operations

Segment ($USD Millions)Q3 2024Q2 2025Q3 2025
Instruments$5.271 $5.215 $5.095
Consumables$10.508 $10.458 $8.705
Services & Other$6.307 $6.089 $5.752
Total Revenue$22.086 $21.762 $19.552

Management noted YoY changes: total revenue -11%, consumables -17%, instruments -3%, services -9% .

KPIs and Balance Sheet

KPIQ1 2025Q2 2025Q3 2025
Cash & Cash Equivalents + ST Investments ($M)$260.7 $239.7 $217.0
Deferred Revenue – Current ($M)$12.763 $40.167 $40.111
Total Stockholders’ Equity ($M)$454.595 $424.535 $399.659

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (Combined Company)FY 2025$165–$175M $165–$175M Maintained
Revenue (Continuing Operations)FY 2025$78–$83M $78–$83M Maintained
Adjusted EBITDA TargetFY 2026Breakeven in 2026 Breakeven in 2026 Maintained
Operational Restructuring Cost SavingsAnnualized (fully realized 2026)N/A>$40M savings New in Q3
Expected Cash at Illumina Close1H 2026“At least $550M” “≈$550M” Maintained wording update

Earnings Call Themes & Trends

Note: Q2 release indicated a temporary pause in earnings conference calls, and no Q3 earnings call transcript was available .

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Proteomics/AI-tech initiativesCEO highlighted momentum in SomaScan/SOMAmers; NGS-based product partnership with Illumina noted PRECISE-SG100K selected SomaScan 11K for 100k samples; continued biobank leadership Strengthening
Macro/Academic NIH pressuresFY25 outlook assumed high single-digit millions decline in Americas academic revenue Maintains assumption of NIH funding pressures Ongoing headwind
Tariffs/export controlsAssumed no effect from export controls and limited impact from tariffs Forward-looking statements continue to reference expected limited impact Stable/limited impact
Product performanceQ2: Consumables up; instruments down due to capital constraints Q3: Imaging growth; consumables down (flow/microfluidics funding); services down with higher uptime Mixed: imaging up, consumables/services down
Operational changesOngoing SBS productivity gains and cost synergies Restructuring (>20% RIF), facility consolidation to Singapore, HQ move planned to Boston Accelerated restructuring
R&D executionContinued innovation in spatial proteomics (Hyperion XTi) Co-locating R&D with manufacturing in Singapore to improve efficiency Efficiency focus

Management Commentary

  • CEO Michael Egholm: “We are simplifying operations, increasing productivity and driving the go-forward business toward profitability expected in 2026… well positioned to expand our portfolio through strategic M&A” .
  • CFO Alex Kim: “These decisions were important to keep our organization lean… positioned to emerge stronger… delivering innovative solutions to our customers as they advance science and improve human health” .
  • Strategic Update: PRECISE-SG100K selection underscores SomaScan’s value proposition in population-scale proteomics (coverage, reproducibility, service) .

Q&A Highlights

  • No Q3 earnings call transcript available; Q2 release indicated a pause in earnings calls “until further notice,” with disclosures provided via press releases and SEC filings .
  • Guidance reaffirmations and restructuring details were provided in the press release rather than on a call .

Estimates Context

  • Revenue beat: Actual continuing ops revenue $19.552M vs $18.000M* consensus; combined revenue $46.245M provided additional context .
  • EPS miss: Actual continuing ops EPS -$0.08 vs -$0.02* consensus, reflecting lower gross margins, restructuring charges ($9.428M), and retained shared corporate costs after SomaLogic reclassification .
  • Implications: Street models may lower near-term EPS on higher restructuring/transition costs but could lift medium-term margin expectations as >$40M savings phase in by 2026 .

Consensus values marked with *; Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue came in above consensus but below prior-year levels; EPS missed due to restructuring and margin pressure—near-term volatility, but medium-term cost actions are material .
  • Restructuring (>20% RIF) and consolidation to Singapore target >$40M annualized savings; expect margin/EBITDA trajectory to improve into 2026 .
  • FY25 guidance maintained (combined $165–$175M; continuing ops $78–$83M), suggesting stable demand assumptions despite NIH headwinds and capital constraints .
  • Imaging is a bright spot; consumables softness (flow/microfluidics) and services declines linked to funding and improved uptime—monitor mix shifts for margin impact .
  • Balance sheet provides strategic flexibility: $217.0M cash at Q3 and ≈$550M expected at Illumina close in 1H 2026 to fund M&A-driven growth .
  • With calls paused, disclosures are via filings and press releases—watch for additional restructuring updates and Illumina transaction milestones .
  • Trading lens: Near-term sentiment may hinge on visibility into cost realization and proteomics pipeline wins (e.g., large biobank deals) versus continuing ops demand softness .