Q1 2025 Quanterix Corp Earnings Call
Okay.
Operator: Ladies and gentlemen, thank you for standing by.
Tangerine: Ladies and gentlemen, and thank you for standing by my name as Tangerine I will be your conference operator today at this time I would like to welcome everyone to the Quanta weeks Corporation first quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the Speakers' remarks, Joe will be a question and answer session.
Desiree: My name is Desiree and I will be your conference operator today.
Desiree: At this time, I would like to welcome everyone to the Quanterix Corporation first quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise.
Desiree: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again, press the star 1.
Tangerine: If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad if.
Tangerine: If you would like to draw your question again press the star one.
Joshua Young: I would now like to turn the conference over to Joshua Young, Head of Investor Relations. You may begin. Thank you and good afternoon. With me on today's call are Masoud Toloue, Quanterix President and CEO, and Vandana Sriram, Quanterix Chief Financial Officer. Today's call is being recorded and a replay of the call will be available on the investors section of our website.
Speaker Change: I would now like to turn the conference over to Joshua Young head of Investor Relations you may begin.
Speaker Change: Thank you and good afternoon with me on today's call are Ms. Sue Tulu quite tariffs, president and CEO and founder Sriram quite Terex Chief Financial Officer, today's call is being recorded and a replay of the call will be available on the investors section of our website during the course of today's presentation.
Joshua Young: During the course of today's presentation, we will make forward-looking statements within the meaning of the US Private Securities Litigation Reform Act. These forward-looking statements are based on management's beliefs and assumptions as of today, May 12, 2025. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statement. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statement.
Speaker Change: <unk>, we will make forward looking statements within the meaning of the U S Private Securities Litigation Reform Act.
Speaker Change: These forward looking statements are based on management's beliefs and assumptions as of today May 12, 2025, we may not actually achieve the plans intentions or expectations disclosed in our forward looking statements forward looking statements involve known and unknown risks uncertainties.
Speaker Change: These assumptions and other factors that may cause our actual results performance or achievements to be materially different from any future results performance or achievements expressed or implied by the forward looking statements.
Joshua Young: To supplement our financial statements presented on a GAAP basis, we have provided certain non-GAAP financial measures. These non-GAAP measures are used to evaluate our operating performance in a manner that allows for meaningful period-to-period comparison and analysis of trends in our business and our competitors. We believe that such measures are important in comparing current results with other periods results and assessing our operating performance within our industry. Non-GAAP financial information presented to herein should be considered in conjunction with, not as a substitute for, the financial information presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures set forth in the presentation posted to our website and in the earnings release issued today.
Speaker Change: To supplement our financial statements presented on a GAAP basis, we have provided certain non-GAAP financial measures ease.
Speaker Change: non-GAAP measures are used to evaluate our operating performance in a manner that allows for a meaningful period to period comparison and analysis of trends in our business and our competitors. We believe that such measures are important in comparing current results without the period's results and assessing our operating performance.
Speaker Change: It's within our industry.
Speaker Change: non-GAAP financial information presented herein should be considered in conjunction with not as a substitute for the financial information presented in accordance with GAAP.
Speaker Change: Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures set forth in the presentation posted to our website and in the earnings release issued today.
Joshua Young: Finally, any percentage changes we discuss will be on a year-over-year basis unless otherwise noted.
Speaker Change: Finally, any percentage changes, we discussed will be on a year over year basis, unless otherwise noted.
Masoud Toloue: Now I'd like to turn the call over to Masoud Toloue. Thank you, Joshua, and good afternoon. First quarter results exceeded our expectations, highlighting the resilience of our instruments and consumables business, and strengthening our confidence in the long-term growth potential.
Sue Tulu: Now I'd like to turn the call over to MS. Sue <unk>.
Sue Tulu: Thank you Joshua and good afternoon.
Sue Tulu: First quarter results exceeded our expectations, highlighting the resilience of our instruments and consumables business and strengthening our confidence in the long term growth potential.
Masoud Toloue: While the quarter was stable, we have revised our guidance more conservatively to account for the broader macro funding environment rather than any company specific factors. I want to spend some time discussing our position in the market. Let's begin with the key fundamentals. Demand for human health is not going away. And we're optimistic about delivering solutions to meet this demand.
Sue Tulu: While the quarter was stable, we haven't revised our guidance more conservatively to account for the broader macro funding environment, rather than any company specific factors.
Sue Tulu: I want to spend some time discussing our position in the market.
Sue Tulu: Let's begin with the key fundamental.
Sue Tulu: Demand for human health is not going away.
Sue Tulu: And we're optimistic about delivering solutions to meet this demand.
Masoud Toloue: First. Quanterix's ultra-sensitive protein detection platform is unmatched, empowering early disease detection Accelerating the development of new therapies through clinical trials. and enabling precise monitoring of neurobiomarkers in long-term studies.
Sue Tulu: First.
Sue Tulu: On taxes ultra sensitive protein detection platform is unmatched empowering early disease detection.
Sue Tulu: Accelerating the development of new therapies through clinical trials and.
Sue Tulu: And enabling precise monitoring of neuro biomarkers and long term studies.
Masoud Toloue: Second. We believe proteomics will be a cornerstone of non-invasive liquid biopsy solutions, offering real-time insight into human health and providing a dynamic view that complements genetic and methylation data. We are building our leadership in neurology, applying the scientific and business expertise we've gained to expand our addressable market into immunology and oncology, areas where we are poised to lead in early biomarker detection. And finally, as long as people seek longer and healthier lives, the demand for high-sensitivity detection tools will remain, and Quanterix is at the forefront with our customers, advancing the science to meet this enduring need.
Sue Tulu: Second.
Sue Tulu: We believe proteomics will be a cornerstone of noninvasive liquid biopsy solutions offering real time insight into human health and providing a dynamic view that compliments genetic and methylation data.
Sue Tulu: Third.
Sue Tulu: We are building our leadership in neurology applying the scientific and business expertise, we've gained to expand our addressable market into immunology and oncology areas, where we are poised to lead and early biomarker detection.
Sue Tulu: And finally as long as people seek longer and healthier lives the demand for high sensitivity detection tools will remain <unk>.
Sue Tulu: <unk> is at the forefront with our customers advancing the science to meet this enduring need.
Sue Tulu: Okay.
Masoud Toloue: Onto the quarter. In the first quarter we reported revenue of $30.3 million, while this represents a decline of 5%. We recorded our highest consumables quarter and expect consumables performance to remain strong. Our adjusted gross margin was approximately 50% and our adjusted cash usage was $9,000,000.25 representing a greater than 50% improvement versus last year. Vandana will describe this in more detail, however I want to emphasize we are committed to achieving positive cash flow in 2026 with a balance sheet well north of $100 million.
Sue Tulu: Onto the quarter.
Sue Tulu: In the first quarter reported revenue of $33 million.
Sue Tulu: While this represents a decline of 5%.
Sue Tulu: We recorded our highest consumables quarter and expect consumables performance to remain shrunk.
Sue Tulu: Our adjusted gross margin was approximately 50% and our adjusted cash usage was $9 million in the quarter, representing a greater than 50% improvement versus last year.
Sue Tulu: One that I will describe this in more detail.
Sue Tulu: However, I want to emphasize we are committed to achieving positive cash flow in 2026, with a balance sheet well north of $100 million.
Masoud Toloue: Turning now to our pending merger with Aquia Biosciences. Nearly two weeks ago, we announced an amendment to our proposed transaction. I want to highlight some of the key financial details of this amended transaction. First, The equity value of the transaction is being reduced by 67% from $201 million to $66 million. The number of shares being issued is reduced by over 9 million shares, increasing Quanterix's shareholder ownership of the combined company from 70 to 84 percent. And we expect Equoia will contribute 37% to Top Line and 40% to Quanterix's gross profit dollars at 16% pro forma ownership.
Sue Tulu: Turning now to our pending merger with acquire Biosciences.
Sue Tulu: Nearly two weeks ago, we announced an amendment to our proposed transaction I.
Sue Tulu: I want to highlight some of the key financial details of this amended transaction.
Sue Tulu: First the.
Sue Tulu: The equity value of the transaction is being reduced by 67% from $201 million to $66 million.
Sue Tulu: The number of shares being issued is reduced by over 9 million shares increasing Kwan, Texas shareholder ownership of the combined company from 70% to 84%.
Sue Tulu: And we expect it will contribute 37% to top line.
Sue Tulu: And 40% of Quanta Ericsson's gross profit dollars.
Sue Tulu: 16% pro forma ownership.
Masoud Toloue: At the core of our strategic rationale for this transaction is the tremendous synergy for tracking protein biomarkers from tissue to blood. Diseases like cancer start in tissue and ultimately leak into blood, causing morbidity. Enabling our customers to track cancer biomarkers such as ORF1P, which plays a critical role in both blood and tissue, will open new opportunities for Quanterix to expand its impact and accelerate our growth. beyond what would be possible as a standalone entity.
Sue Tulu: At the core of our strategic rationale for this transaction is a tremendous synergy for tracking protein biomarkers from tissue to blood.
Sue Tulu: Diseases like cancer start in tissue and ultimately leak into blood.
Sue Tulu: Causing morbidity.
Sue Tulu: Enabling our customers to track cancer, Biomarkers, such as <unk> or F. One P, which plays a critical role in both blood and tissue will open new opportunities for <unk> to expand its impact and accelerate our growth.
Sue Tulu: Beyond what it would be possible as a stand alone entity.
Masoud Toloue: Customers and industry KOLs are excited about the potential of bringing technologies from Quanterix and Equoia together, and we have already begun considering matched tissue blood biomarker detection solutions.
Sue Tulu: Customers and industry Kols are excited about the potential of bringing technologies from <unk> and acquire together and we have already begun considering matched tissue blood biomarker detection solutions.
Sue Tulu: Yeah.
Masoud Toloue: Now, an update on our strategic initiative. Our first GROW menu is already delivering results. In Q1, we launched four new immunology assays, building on the 20 new assays we introduced last year, which enabled us to achieve our highest consumables revenue quarter. Our continued investment in this powerful product development engine is paying off.
Sue Tulu: Now an update on our strategic initiatives.
Sue Tulu: Our first grow menu is already delivering results.
Sue Tulu: In Q1, we launched four new immunology assays building on the 20th New assays, we introduced last year, which enabled us to achieve our highest consumables revenue quarter.
Sue Tulu: Our continued investment in this powerful product development engine is paying off.
Masoud Toloue: We are expanding our assay portfolio to reinforce our leadership in neurology. adding inflammation biomarkers and initiating development in oncology applications. With more than 1,000 instruments installed worldwide, each with significant throughput potential, we are committed to maximizing their value through the introduction of novel biomarker assays.
Sue Tulu: We are expanding our assay portfolio to reinforce our leadership in neurology.
Sue Tulu: Adding inflammation, biomarkers and initiating development and oncology applications.
Sue Tulu: With more than 1000 instruments installed worldwide.
Sue Tulu: Each with significant throughput potential we are committed to maximizing their value through the introduction of novel biomarker assays.
Masoud Toloue: Our second strategic focus is expanding into adjacencies, starting with the launch of Samoa I. an instrument and reagent platform, contract for release by year end. We expect this next-gen platform will break current sensitivity barriers, delivering up to 10x the sensitivity of our existing system. with expanded multiplexing up to 10-plex and improved specificity through code-matched barcoding. All with an intuitive workflow. Samoa 1 will extend our category leadership and set a new standard for performance in the field.
Sue Tulu: Our second strategic focus is expanding into adjacencies, starting with the launch of <unk> one.
Sue Tulu: And instrument.
Sue Tulu: And reagent platform on track for release by yearend.
We expect this next Gen platform will break current sensitivity barriers delivering up to 10 X the sensitivity of our existing systems.
Sue Tulu: With expanded multiplexing up to 10, Plex and improved specificity through code matched barcoding.
Sue Tulu: With an intuitive workflow.
Sue Tulu: Similar one will extend our category leadership and set a new standard for performance in the field.
Masoud Toloue: Our third area of focus. Alzheimer's Diagnostics. We're making rapid progress. Last year we signed agreements with regional labs and hospital networks generating $6 million in revenue. This quarter, we expanded our footprint through a new collaboration with ARUP Laboratories, a premier national lab. ARUP will now offer the P-Tau 217 blood test for Alzheimer's disease using our platform and assay kit, leveraging antibody technology licensed from Eli Lilly and validated on samples from Lilly's Phase 3 Trailblazer ALS-2 trial. This is a critical step toward building a global infrastructure for non-invasive Alzheimer's testing, a priority that will continue to advance throughout 2025.
Sue Tulu: Our third area of focus.
Sue Tulu: Alzheimer's diagnostics, where we're making rapid progress.
Sue Tulu: Last year, we signed agreements with regional labs, and hospital networks generating $6 million in revenue.
Sue Tulu: This quarter, we expanded our footprint through a new collaboration with <unk> laboratories, a premier National lab.
Sue Tulu: <unk> will now offer the <unk> blood test for Alzheimer's disease, using our platform and assay kit leveraging antibody technology licensed from Eli Lilly and validated on samples from Lilly's phase III Trailblazer <unk> two trial.
Sue Tulu: This is a critical step towards building a global infrastructure for noninvasive, Alzheimer's testing a priority, but will continue to advance throughout 2025.
Masoud Toloue: We also anticipate introducing pricing for a Lucent AD complete test later this summer. A multi-marker algorithm-driven Alzheimer's risk assessment tool. This test is currently progressing through four clinical trials with enrollment expected to complete by Q4 of this year.
Sue Tulu: We also anticipate introducing pricing for our Lucent complete test later this summer a multi marker algorithm driven Alzheimer's risk assessment tool.
Sue Tulu: This test is currently progressing through four clinical trials with enrollment expected to complete by Q4 of this year.
Masoud Toloue: Now, a few final words on our current market environment and the three actions we are taking to succeed in it. First, As I said earlier, despite market headwinds around academic funding and biopharma spending, Demand for human health in the near or long term is not going away. and today.
Sue Tulu: Now a few final words on our current market environment and the three actions we are taking to succeed in it.
Sue Tulu: First.
Sue Tulu: As I said earlier, despite market headwinds around academic funding in Biopharma spending demand for human health and the near or long term is not going away.
Sue Tulu: And today.
Masoud Toloue: We're pleased to announce, for the first time... a new footing for Quanterix to deliver Samoa sensitivity at scale. In response to capital and resource constraints among academic and biopharma customers, we will democratize access to our technology. Starting in 2026, through an early access program, customers will be able to use unlocked SEMOA-1 assay kits on over 20,000 existing flow cytometers worldwide, eliminating the need for a high capital instrument purchase. This is made possible by Breakthrough Reagent Innovation. Digital, ultra-sensitive Samoa signal detection is now embedded in kinetic dye-encoded beads. enabling compatibility with a far broader install base.
Sue Tulu: We're pleased to announce for the first time.
Sue Tulu: Our new foot, Inc. For foreign tariffs to deliver similar sensitivity at scale.
Sue Tulu: In response to capital and resource constraints, among academic and Biopharma customers, we will democratize access to our technology.
Sue Tulu: Starting in 2026 through an early access program customers will be able to use unlocks similar one assay kits on over 20000 existing flow cytometer worldwide eliminating.
Sue Tulu: Eliminating the need for a high capital instrument purchase.
Sue Tulu: This is made possible by breakthrough reagent innovation.
Sue Tulu: Digital ultra sensitive some our signal detection is now embedded in kinetic die encoded beads.
Sue Tulu: Enabling compatibility with a far broader installed base.
Masoud Toloue: One that is at least 20 times greater than our own. This is a massive event.
Sue Tulu: One that is at least 20 times greater than our own.
Sue Tulu: This is a massive events.
Masoud Toloue: that we will make available after CIRM-01 platform launch expected at the end of the year.
Sue Tulu: That we will make available after our semi one platform launch expected at the end of the year.
Masoud Toloue: Second, We are scaling the success we've established in neurology into adjacent fields, immunology and oncology through our GROW menu initiative and the acquisition of a quiet bioscience. Day one of the acquisition, our installed base increases by 1,300 instruments, and our addressable market expands from $1 to $5 billion. Liquid biopsy is expected to eventually surpass the market size of all other diagnostic testing combined and it has become abundantly clear proteins are the next frontier. Our ability to measure biomarkers across the tissue-to-blood continuum will accelerate the pace of novel diagnostic tests. With this expanded footprint, we are executing a strategy grounded in scale and speed, unlike other technologies that are still reliant on capital equipment sales in a risk-averse market.
Sue Tulu: Second.
Sue Tulu: We are scaling the success, we have established in neurology into adjacent fields immunology and oncology through our grow menu initiative and the acquisition of acquire Biosciences.
Sue Tulu: Day, one of the acquisition our installed base increases by 1300 instruments, and our addressable market expands from $1 billion to $5 billion.
Sue Tulu: Liquid biopsy is expected to eventually surpass the market size of all other diagnostic testing combined and it has become abundantly clear proteins or the next frontier.
Sue Tulu: Our ability to measure biomarkers across the tissue to blood continuum, we will accelerate the pace of novel diagnostic test.
Sue Tulu: With this expanded footprint, we are executing a strategy grounded in scale and speed. Unlike other technologies that are still reliant on capital equipment sales and a risk averse market.
Masoud Toloue: Third. We are operating with discipline and purpose. We are committed to achieving positive cash flow by 2026, supported by a balance sheet exceeding $100 million.
Sue Tulu: Third.
Sue Tulu: We are operating with discipline and purpose, we are committed to achieving positive cash flow by 2026 supported by a balance sheet exceeding $100 million.
Masoud Toloue: Today, we're announcing a $30 million core operating cost reduction, scaling to $55 million annualized savings by 2026. These savings are driven by operational efficiency. and our expected synergies from the Acquia acquisition, aligned with our standalone revenue forecast of $120 to $130 million for 2025.
Sue Tulu: Today, we're announcing a $30 million core operating cost reduction scaling to $55 million annualized savings by 2026.
Sue Tulu: These savings are driven by operational efficiencies.
Sue Tulu: And our expected synergies from the equator acquisition.
Sue Tulu: Lined with our stand alone revenue forecast of $120 million to $130 million by 2025.
Vandana Sriram: Now, I'll turn the call over to Vandana. Thank you, Masoud, and good afternoon. I will now go over our performance for the first quarter and provide an update for the full year 2021. Total revenue for the first quarter of 2025 was $30.3 million. A decrease of 5% compared to the prior. Consumables revenue was $18.1 million. Up 6% versus the previous year, driven by strong performance from products launched in the past 12 months. Instrument revenue was $2.6 million, up 3% year-over-year, as we continue to see pressure on capital investment. We placed 17 instruments in the quarter as compared to 16 instruments in the first quarter of 2020.
Vonda: Now I'll turn the call over to Vonda.
Vonda: Thank you Masoud and good afternoon.
Speaker Change: I will now go over our performance for the first quarter and provide an update for the full year 2025.
Speaker Change: Total revenue for the first quarter of 2025, or $30 3 million, a decrease of 5% compared to the prior year.
Speaker Change: Consumable revenue was $18 1 million up 6% versus the previous year driven by strong performance from products launched in the past 12 months.
Speaker Change: Instrument revenue was $2 6 million.
Speaker Change: Up 3% year over year, as we continue to see pressure on capital equipment.
Speaker Change: We placed 17 instruments in the quarter as compared to 16 instruments in the first quarter of 2024.
Vandana Sriram: Accelerator lab revenue was $5.6 million, a decrease of 36% driven by a decline in large multi-million dollar projects from pharma companies. In terms of revenue stratification, our customer mix for Q1 was approximately 50-50 between pharma and academia. Sales to our diagnostics partners totaled $1.6 million for the From a geographic perspective, our revenue growth was led by North America, which grew 3%. Europe declined 30% primarily due to lower acceleration rates. and the Asia-Pacific region was up 14%. Shifting to the rest of the P&L for the quarter, GAAP's gross profit and margins were $16.4 million and 54.1% respectively.
Speaker Change: Accelerated lab revenue was $5 6 million a decrease of 36% driven by a decline in large multimillion dollar project from private customers.
Speaker Change: In terms of revenue stratification, our customer mix for Q1 was approximately 50 50 between pharma and academia.
Speaker Change: Sales to our diagnostics partners totaled $1 6 million for the quarter.
Speaker Change: From a geographic perspective, our revenue growth was led by North America, which grew 3%.
Speaker Change: Europe declined 30%, primarily due to lower accelerates our revenue and the Asia Pacific region was up 14%.
Speaker Change: Shifting to the rest of the P&L for the quarter.
Speaker Change: GAAP gross profit and margin was $16 4 million and 54, 1% respectively.
Vandana Sriram: Non-Gap Growth Profit was $15.1 million and Non-Gap Growth Margin was $49.7 million. The decrease of 150 basis points versus last year was primarily driven by a non-cash charge-to-inventory ratio.
Speaker Change: non-GAAP gross profit was $15 1 million and non-GAAP gross margin was 49, 7%.
Speaker Change: The decrease of 150 basis points versus last year was primarily driven by a noncash charge to inventory.
Vandana Sriram: GAAB operating expenses for the quarter were $42.8 million, up $9.1 million. and non-GAAP operating expenses were $33.8 million. Up 2.3 million over last year. Included in GAAP operating expenses are approximately $7 million of costs related to acquisition and integration expenses and shipping and handling.
Speaker Change: GAAP operating expenses for the quarter were $42 8 million up $9 5 million enrolled and non-GAAP operating expenses were $33 8 million.
Speaker Change: $2 3 million over last year.
Speaker Change: Included in GAAP operating expenses are approximately $7 million of costs related to acquisition and integration expenses and shipping and handling costs.
Vandana Sriram: As we stated last quarter, we are making an update to the non-GAAP financial measures that we report on a quarterly basis. As we add acquisitions to our portfolio, we are adding Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Cash Burn as new measures. Please refer to our earnings release and the accompanying presentation for a definition of these metrics and accompanying recommendations. Our adjusted EBITDA was a loss of $11.3 million in the first quarter of 2025, as compared to a loss of $8.1 million in the first quarter of the prior year. This EBITDA number includes investments in Stemor I and Alzheimer's.
Speaker Change: As we stated last quarter, we are making an update to the non-GAAP financial measures that we report on a quarterly basis.
Speaker Change: As we add acquisitions to our portfolio.
Speaker Change: Adding adjusted EBITDA, adjusted EBITDA margin and adjusted cash burn as new metrics.
Speaker Change: Please refer to our earnings release and the accompanying presentation for the definition of these metrics and accompanying reconciliation.
Speaker Change: Our adjusted EBITDA was a loss of $11 3 million in the first quarter of 2025 as compared to a loss of $8 1 million in the first quarter of the prior year.
Speaker Change: This EBITDA number includes investments in similar one and Alzheimer's diagnostics.
Vandana Sriram: We ended the first quarter of 2025 with $269.5 million of cash, cash equivalents, marketable securities, and restricted cash. Down 22.2 million from last year. During the quarter, $13.2 million of cash was applied towards one-time We paid $9 million for the first tranche of the emission acquisition and $4.2 million towards one-time expenses, primarily related to the Akoya Dam. Excluding these payments, adjusted cash burned during the quarter was $9 million. compared to adjusted cash burn of $19.4 million in the prior year, a reduction of over 50% in our cash.
Speaker Change: We ended the first quarter of $2025 $269 5 million of cash cash equivalents marketable securities and restricted cash.
Speaker Change: $22 2 million from last year.
Speaker Change: During the quarter $13 2 million of cash was applied towards onetime items.
Speaker Change: We paid $9 million for the first tranche of the emission acquisition and.
Speaker Change: $4 2 million one.
Speaker Change: One time expenses, primarily related to the courtyard.
Speaker Change: Excluding these statements adjusted cash burn during the quarter was $9 million compared to adjusted cash flow of $19 4 million in the prior year.
Speaker Change: A reduction of over 50% and our cash flows.
Vandana Sriram: I will now turn to our updated guidance for the full year 2025. We currently expect to report revenues in a range of $120,000 to $130,000. which represents a revenue decline of 5-13% and excludes revenue from Lucent Diagnostics. As compared to our prior guide of 4% at the midpoint, we now expect a reduction of 9% at the midpoint. This includes approximately 600 basis points of incremental pressure from the current academic funding and tariff environment. As mentioned before, approximately 22% of our revenues are indexed to U.S. academic customers. And we factored in a 10% or 250 basis point reduction earlier.
Speaker Change: I will now turn to our updated guidance for the full year 2020.
Speaker Change: We currently expect to report revenues in a range of $120 million to $130 million.
Speaker Change: This represents a revenue decline of 5% to 13%.
Speaker Change: Excludes revenue from NUCYNTA diagnostics testing.
Speaker Change: As compared to our prior guide of 4% at the midpoint.
Speaker Change: Now expect a reduction of 9% at the midpoint.
Speaker Change: This includes approximately 600 basis points of incremental pressure from the current academic funding and tariff environment.
Speaker Change: As mentioned before approximately 22% of our revenues are indexed to U S academic customers.
Speaker Change: These factored in a 10% or 250 basis point reduction.
Vandana Sriram: We now estimate an additional 20% reduction in NIH funding levels, implying approximately 500 basis points of additional. We have assumed 100 basis points of revenue pressure from tax. We have also factored in a total of 900 basis points of pressure from pharma versus 200 basis points in our prior guide, primarily in our accelerator. Last year, Accelerator grew 36% year-on-year. This year, while we see a healthy pipeline and better project diversity within that pipeline, we see some conservatism among our biopharma and biotech customers. with some push out of projects and smaller ticket sales. We continue to see accelerator as a key differentiator in our business model and believe that it's a matter of time before pharma uncertainty settles, and this eventually returns as a driver of our business.
Speaker Change: We now estimate an additional 20% reduction in NIH funding levels.
Speaker Change: <unk> approximately 500 basis points of additional pressure.
Speaker Change: We have assumed 100 basis points of revenue pressure from tablets.
Speaker Change: We have also factored in a total of 900 basis points of pressure from pharma, plus a 200 basis points in our prior guidance.
Speaker Change: Not only in our accelerator lab.
Speaker Change: Last year accelerated to 36% year on year.
Speaker Change: This year, while we see a healthy pipeline.
Speaker Change: Better project diversity within that pipeline.
Speaker Change: Some conservatism among our biopharma and biotech customers with some push out of projects and smaller ticket sizes.
Speaker Change: We continue to see accelerator as a key differentiator in our business model and believe that it's a matter of time before pharma uncertainty settles and this eventually returns as a driver of our growth.
Vandana Sriram: The second and third upside scenarios in our guide include strong growth in our consumables business. Driven by menu additions we saw last year and Lucent Diagnostics testing, which is currently not embedded.
Speaker Change: The second and third upside scenarios in our guide includes strong growth in our consumables business driven by menu additions, we saw last year and lucid diagnostics testing, which is currently not embedded in the guide.
Vandana Sriram: Moving on to gross margin for the year, we expect GAAP gross margin to be in the range of 55 to 59 percent, and non-GAAP gross margin in the range of 50 to 54 percent, a reduction of 300 basis points from our prior graph. We expect that the impact of tariffs on incoming materials is limited to approximately 50 to 100 basis points of margin after factoring in countermeasures that we have already discussed.
Speaker Change: Moving on to gross margin for the year, we expect GAAP gross margin to be in the range of 55% to 59%.
Speaker Change: non-GAAP gross margin in the range of 50% to 54%.
Speaker Change: Reduction of 300 basis points from our prior guidance.
Speaker Change: We expect that the impact of tariff on incoming material is limited to approximately 50% to 100 basis points of margin. After factoring in counter measure that we have already put in place.
Vandana Sriram: Thank you. The remaining impact on gross margin is driven by the reduction in revenue. specifically in our high-margin accelerator business and takes into account the cost actions that.
Speaker Change: The remaining impact on gross margin is driven by the reduction in revenue.
Speaker Change: Typically in our high margin accelerate our business.
Speaker Change: Takes into account the cost actions that missile threat.
Vandana Sriram: These cost actions of 15 million in 2025 fully offset the impact of lower revenue and margin Quanterix's stand-alone cash usage for the year, therefore, is still expected to be between $35 to $45 million from operations. and $20 million for payments for...
Speaker Change: These cost actions of $50 million in 2025 fully offset the impact of lower revenue and margin in the yellow.
Speaker Change: <unk> standalone cash usage for the year, therefore, it's still expected to be between $35 million to $45 million from operations.
Speaker Change: $20 million for payments formation.
Vandana Sriram: As Masoud mentioned, we expect to close the ACOIA transaction in the second... At the end of the second quarter, and after settling deal-related expenses and FOIA. We now expect our cash balance to be approximately $160 million versus $155 million. We now expect the second emission payment of $10 million to push into the second half of the year. This is partially offset by an additional $5 million of working capital spent in the second quarter, primarily related to bringing in second-half inventory earlier than expected. Factoring in cash form for the combined company in the second half, as well as our recent cost reduction.
Speaker Change: As I've mentioned, we expect to close the <unk> transaction in the second quarter at.
Speaker Change: At the end of the second quarter and after assessing deal related expenses and plants that we now expect our cash balance to be approximately $160 million versus the $155 million previously.
Speaker Change: We now expect the second emission payment of $10 million to push into the second half of the year.
Speaker Change: This is partially offset by an additional $5 million of working capital spend in the second quarter.
Speaker Change: Finally related to bringing in second half inventory earlier than expected.
Speaker Change: Factoring in cash burn for the combined company in the second half as well as our recent cost reductions.
Vandana Sriram: We expect our cash balance will be approximately $120 million at the end of 2025.
Speaker Change: Expect our cash balance will be approximately $120 million at the end of 2025.
Vandana Sriram: Finally, I'll provide some color on expected cash balances for 2020. We expect that the cost actions announced today will increase our total cost savings from $40 million to $55 million in 2020.
Speaker Change: Finally, I'll provide some color on expected cash balances for 2020.
Speaker Change: We expect that the cost actions announced today will increase our total cost savings from 40 million to $55 million in 2026.
Vandana Sriram: After factoring in a lower revenue run rate from 2025 into 2026, we expect to achieve cash flow breakeven as a combined company in 2026. And we expect to have north of 100 million of cash on the balance with no debt at the exit.
Speaker Change: After factoring in a lower revenue run rate from 2025 into 2026 <unk>.
Speaker Change: We expect to achieve cash flow breakeven as a combined company in 2026.
Speaker Change: And we expect to have north of $100 million of cash on the balance sheet with no debt as we exit 2020.
Masoud Toloue: I will now turn it back over to... Quanterix is committed to driving advancements in high sensitivity protein detection and expanding into the critical therapeutic areas of neurology, oncology, and immunology. With our strategic initiatives, including the upcoming launch of our SEMOA 1 platform and the ECOIA Biosciences merger, we are well positioned to lead the future of protein-based biomarker testing.
Speaker Change: I will now turn it back over to Mr.
Speaker Change: Thanks Linda.
Speaker Change: <unk> is committed to driving advancements and high sensitivity protein detection and expanding into the critical therapeutic areas of neurology oncology and immunology.
Speaker Change: With our strategic initiatives, including the upcoming launch of our <unk> platform and the acquire Biosciences merger, we are well positioned to lead the future of protein based biomarker testing.
Masoud Toloue: Our focus on operational discipline and cost efficiencies will ensure sustainable growth with a clear path to positive cash flow by 2026.
Speaker Change: Our focus on operational discipline and cost efficiencies will ensure sustainable growth with a clear path to positive cash flow by 2026.
Operator: Operator, please assemble the Q&A roster. Thank you.
Speaker Change: Operator, please assemble the Q&A roster.
Speaker Change: Thank you we will now begin the question and answer session. If you have dialed in and would like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.
Operator: We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again.
Speaker Change: I would like to withdraw your question simply press Star one again.
Operator: If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue.
Speaker Change: I call upon to ask a question and are listening via speaker phone or device. Please pickup your handset to ensure that your phone is not on mute and asking your questions again press star one to join the queue.
Kyle Mikson: And our first question comes from the line of Kyle Mikson with Canaccord Genuity. Your line is... Hey guys, thanks for the questions. Just first on the financial, so Accelerator and Consumables, I wanted to talk about that. I know, you know, Accelerator kind of stopped this quarter. You expected that to have a slow start this year, given the projects kind of lower, you know, in the first half of the year or so. But how did that compare to your expectations, the Accelerator revenue number for the quarter? And then maybe just talk about the ramp, especially in the second half of the year.
Kyle: And our first question comes from the line of Kyle <unk> with Canaccord Genuity. Your line is open.
Kyle: Hey, guys. Thanks for the questions just first on the financials. So we'll accelerate on consumables wanted to talk about that I know accelerated kind of kind of soft this quarter.
Kyle: We expect to have a slow start this year given the projects.
Kyle: I'm kind of lower than the first half of the area. So, but how does that convert euro expectations. The accelerator revenue number for the quarter and then maybe just talk about the ramp, especially in the second half of the year. How should we think about that going forward really just want to understand that it's a key swing factor for the year.
Kyle Mikson: How should we think about that going forward? I really just want to understand if it's a key swing factor for the year.
Kyle Mikson: Secondly, on Consumables, that was, you know, you said that was a record. Just was curious what assays drove that in particular, if any legacy products are still representing a material portion of the revenue. Thanks.
Kyle: Secondly on consumables that was.
Kyle: So that was a record.
Speaker Change: Just was curious what assays drove that in particular, if any legacy products are still representing a material portion of the revenue. Thanks.
Masoud Toloue: Hey, Kyle, I'll take the second part of that question, and then Vandana can answer the accelerator question. You know, from a consumable business, we're thrilled with the record quarter on consumables. You know, we continue to lead in neurology, and the markers that we are delivering to our customers are markers that our customers have not been able to access before. So we work with the leading innovators in the field. These super interesting markers come to us. We develop assays, you know, in our product development engine, and we deliver them to customers. And so, you know, I would say it was the top neurology assays, and we've been starting to see some good traction in the inflammation and cytokine-based assays that give us, you know, good confidence in continued growth of that.
Karl: Hey, Karl I'll take the second part of that question.
Speaker Change: Can answer the accelerator question.
Speaker Change: Consumable business, we're thrilled with the with a record quarter on consumables, we continue to lead in neurology and the markers that we are delivering to our customers our marketers that our customers have not been able to access before so we work with leading innovators in the field.
Speaker Change: These super interesting markers come to us we develop assays.
Speaker Change: Our product development engine, and we deliver them to customers and so I would say it was the top neurology assays and we have been starting to see some good traction.
Speaker Change: Inflammation cytokine based assays that give us.
Speaker Change: Good competence in.
Speaker Change: Continued growth of that business.
Vandana Sriram: Yeah, hey, Kyle. On Accelerator, I think Q1 was very much aligned with our expectations. You know, we have good visibility into Accelerator going into the quarter. We knew that we wouldn't have the Lilly revenue, that's a million and a half of headwind in Accelerator that we had planned for. So Q1 was very much aligned with our expectations. But as we looked forward to the pipeline, we saw that the pipeline was taking longer. We've always described Accelerator as having about 50% pure recurring revenue and the rest of it coming from large projects. The recurring revenue piece of it is strong and is growing.
Speaker Change: Hey, Kyle.
Speaker Change: An accelerator I think Q1 was very much aligned with our expectation we have good visibility into accelerator going into the quarter. We knew that we wouldn't have been any revenue that's a million and a half headwind in actual data that we have slides. So Q1 was very much aligned with our expectations, but as we looked forward to the pipeline we further depth.
Speaker Change: Pipeline, what's taking longer to develop.
Speaker Change: We've always described accelerator as having about 50% recurring revenue and the rest of it coming from large projects.
Speaker Change: Coronary revenue piece of it is strong and is growing.
Vandana Sriram: On the project side, we're seeing a lot of good interest. We're seeing a lot of new customers coming and a lot of new areas, such as immunology, with our new site-acquired office. Having said that, we're not seeing the large ticket items that we had seen earlier in the last year when Accelerator grew about 36%. So again, with the visibility we have right now, and with what we can see in the pipeline right now, we're forecasting to that.
Speaker Change: On the project side, we're seeing a lot of good interest, we're seeing a lot of new customers coming and a lot of new areas, such as immunology with our new site plan offerings having.
Speaker Change: Having said that we're not seeing the large ticket items that we had seen earlier in.
Speaker Change: In the last year and accelerated to about 36%. So again with the visibility we have right now and with what we can see in the pipeline right now.
Speaker Change: We're forecasting to that.
Kyle Mikson: Great. Thanks, guys.
Speaker Change: Great. Thanks, guys and then on the similar one.
Kyle Mikson: And then on the Simul-1, you know, news, the updates here, the kits will be compatible on flow cytometers kind of early on here.
Speaker Change: Do you use the update here.
Speaker Change: The case will be compatible on <unk> kind of early on here just curious about.
Kyle Mikson: Just curious about, you know, what that really means for this year going forward, especially synergies. So, again, like maybe immunology focused, but could this help you expand to maybe MRD applications in the hemonc world given that's like where flow is kind of being used today in some cases? And also, any synergies with the Aquoia transaction given there's definitely overlaps in Aquoia's customer base and the flow users as well?
Speaker Change: What they're looking for for this year going forward, especially synergies so.
Speaker Change: Again, like maybe immunology focus but could this help you expand to maybe Marty applications and the Haemonchus world given that's like where flows kind of being used today in some cases.
Speaker Change: And also.
Speaker Change: Any synergies with the equator transaction, given theres definitely overlaps and acquire.
Speaker Change: We are raising the flow users as well.
Masoud Toloue: Thanks for the question, Kyle. Absolutely. You know, when we look at the platforms in the market, you look at a broad base, the ubiquitous platform, like PCR, and then you think of all the reagents that, you know, various companies make for the PCR platform, and also sequencing, you look at flow cytometry, and you say, hey, this is an existing, massive base, and a wide diversity of labs. to your point, in immunology, in oncology, and by utilizing that base, we'll be able to accelerate our menu development into these customers' hands. So, you know, in an environment where there are capital constraints, we're meeting the customers where they are and delivering the solution, and we think it's gonna be super effective.
Kyle: Thanks for the question Kyle.
Speaker Change: <unk> when we look at.
Speaker Change: The platforms in the market you look at a broad based <unk> platform like PCR and then you think of all of the reagents that.
Speaker Change: Various companies make for the PCR platform and also sequencing you look at flow cytometry, and you say hey, this is at an existing massive base.
Speaker Change: And a wide diversity of labs to your point in immunology and oncology.
Speaker Change: By utilizing that base will be able to accelerate our menu development into these customers hands. So in an environment, where there are capital constrains.
Speaker Change: We're meeting the customers, where they are and delivering a solution and we think it's going to be super effective it's going to have.
Masoud Toloue: It's gonna have a high synergy impact in our combination with Akoya Bioscience. where we'll have a footprint in oncology there. We're gonna have the immunology markers coming in, flowing through the flow cytometer, no pun intended, and we're excited about that possibility.
Speaker Change: Hi, synergy impact in our combination with acquire Biosciences.
Speaker Change: We'll have a footprint in oncology there were going to have the immunology markers coming and flowing through the <unk>.
Speaker Change: Cytometer no pun intended.
Speaker Change: We're excited about that possibility.
Kyle Mikson: Thanks.
Kyle Mikson: And quickly, just on unloosened AD pricing, if you get that in 3Q, just wondering when the testing, like, you know, revenue would inflect, if that's going to happen maybe before mid-next year, mid-26, if possible. And just remind us the level of pricing you expect to receive and which test that would be for, you know, multi-marker, et cetera. Thanks. Yeah, the pricing we're expected to receive on the PLA would be multi-marker. You know, obviously, we want to, you know, high triple digits on on reimbursement and reimbursement would begin in the early part of 2026.
Ed: Thanks, Ed and quickly to some analysts may be pricing, if you get them to re queue just.
Speaker Change: Just wondering when the when the testing.
Our revenue would inflect, if that's going to happen before mid next year mid 'twenty, six and thoughtful and just remind us the level of pricing you expect to receive and when which test that before eight am up multi marker et cetera. Thanks.
Speaker Change: Yes.
Speaker Change: We're expected to receive on the Pls would be multi marker.
Speaker Change: Obviously, we don't want to high triple digits upon.
Speaker Change: On reimbursement and reimbursement would begin.
Speaker Change: In the early part of 2026.
Kyle Mikson: Okay, I'll leave it there. Thanks, guys. Appreciate it.
Speaker Change: Okay I'll leave it there thanks, guys I appreciate it.
Kyle: Thanks Kyle.
Matt Sykes: Our next question comes from the line of Matt Sykes with Goldman Sachs. Your line is open.
Speaker Change: Our next question comes from the line of Matt <unk> with Goldman Sachs. Your line is open.
Jake Allen: Hi, this is Jake on format. Thank you for taking my question. One thing I wanted to dig a little bit more into is on like exactly what you're seeing throughout the US academic and market and is weakness kind of isolated to, you know, strictly instrument purchases on a go forward basis, you know, given the strength we saw in consumables this quarter.
Speaker Change: Hi, This is Jake on for Matt. Thank you for taking my question.
Speaker Change: One thing I wanted to dig a little bit more into his arms like exactly what you are seeing throughout the U S academic and market weakness kind of isolated to strictly instrument purchases on a go forward basis, given the strength we saw in consumables this quarter.
Jake Allen: And then my follow up, I'll just ask both up front.
Speaker Change: And then my follow up I'll, just ask both upfront one can you can you update us on your FDA submission timeline, particularly like how long from submission to approval and should a competitor receive FDA approval in 2025, how can you kind of rack the potential first mover advantage there great. Thank you.
Jake Allen: One, can you can you update us on your FDA submission timeline, particularly like how long from submission to approval? And should a competitor receive FDA approval in 2025? How can you counteract the potential first mover advantage there? Great. Thank you.
Masoud Toloue: Hi, Jake.
Speaker Change: Thanks, Jake I'm going to take the your.
Masoud Toloue: I'm going to take your question on Alzheimer's testing and then I'll let Vandana talk a little bit about give some color on academia and that market. So on the Alzheimer's diagnostic front, we're super excited about our test. It's a multi-marker algorithmic test. This is a market differentiating test. We continue to invest in both identifying big partners to give them access to the test, you know, the partners with large distribution networks, and then building the infrastructure from our own lab. So we intend to complete enrollment of the clinical trials in the back half of the year.
Speaker Change: Question on the on.
Speaker Change: On Alzheimer's testing and then I'll, let Bob talk a little bit about give some color on academia on that in the market. So on the.
Speaker Change: Alzheimer's diagnostic front.
Speaker Change: Super excited about.
Speaker Change: Our test of multi marker algorithmic test.
Speaker Change: This is a market differentiating test we.
Speaker Change: We continue to invest in both identifying big partners to give them access to the test partners with large distribution networks.
Speaker Change: And then building the infrastructure from our own lab.
Speaker Change: We intend to complete enrollment of the clinical trials in the back half of the year.
Masoud Toloue: And, you know, as we complete those trials, we'll be submitting our FDA application. You know, when I look at the sort of near-term and long-term for Alzheimer's-based testing, I think a big part of this market is laboratory-developed testing. And in an algorithmic approach, there's probably going to be some level of laboratory-developed tests that are in the market. And, you know, an FDA-approved test is obviously going to help, but I don't think it's going to be, you know, one FDA test and that's it, or, you know, LDT test and that's it. I think there's going to be some sort of, you know, combination of offerings in the market, and we're working hard to make sure that our FDA test comes through.
Speaker Change: And.
Speaker Change: As we complete those trials will be submitting our FDA application.
Speaker Change: When I look at the sort of.
Speaker Change: Near term and long term for our Alzheimer's based testing I think a big part of this market as a laboratory developed test Inc.
Speaker Change: EMEA algorithmic approach there is probably going to be some level of laboratory developed tests that are in the market.
Speaker Change: An FDA approved test is obviously going to help but I don't think its going to be.
Speaker Change: <unk> FDA test and Thats ads or LDH, LDC test and that said I think theres going to be some sort of combination of offerings in the market and we're working hard to make sure that our FDA.
Speaker Change: Test comes through.
Masoud Toloue: And then, you know, at a very high level on the academia before Vandana provides some color, you mentioned the consumables business. Absolutely. We, you know, we have a over 1,000 instrument fleet of platforms in the market. And if you look at each of the HDX platforms in our own accelerator lab, they generate, you know, approximately a million dollars each. And that's a high throughput instrument. So when we look at our strategic initiatives, the one core thing that we do day and night build and expand that menu for our customers and that menu tends to be, as I mentioned on Kyle's question, the latest in neurology.
Speaker Change: And then at a very.
Speaker Change: High level on the <unk>.
Speaker Change: Academia before abundant and provide some color you mentioned the consumables business absolutely.
Speaker Change: We have over.
Speaker Change: Over 1000 instrument fleet of platforms in the market.
Speaker Change: And if you look at each of the HD X platforms, and our own accelerator lab and generate approximately $1 million each and that's a high throughput instrument. So when we look at our strategic initiatives.
Speaker Change: One core thing that we do Dan night.
Speaker Change: Build and expand that menu for our customers and that menu tends to be as I mentioned on karls question. The latest in neurology, it's going to have the latest in immunology and very exciting markers as we see synergies between <unk> and <unk> related to oncology.
Vandana Sriram: It's going to have the latest in immunology and very exciting markers as we see synergies between ECOIA and Quanterix related to oncology. Yeah, just to build on that to your first You know, we're definitely seeing pressure on instruments, but that's where our consumables have grown to be incredibly resilient and really have kind of been balancing out the model with the recurring revenue as well as with, you know, the new assets that we.
Speaker Change: Yes, just to build on that to your question.
We're definitely seeing pressure on instruments, but thats, where our consumables have proven to be incredibly risky that demand and really has kind of been balancing out the model with the decline in revenue as well as with.
Speaker Change: The new assay.
Vandana Sriram: With that said, you know, we're hearing the same concerns that everybody else is around the funding environment and the ability to get additional funding and grants. As we looked at the data for the first quarter, you know, we saw the same data that everybody else did, where cumulative award values are down almost 40%. The proposal for a 40% reduction in 2026 is on the table. We have viewed that the 40% scenario does not hold, but we did also acknowledge that just a 10% cut year over year is probably not. And that's how we frame it.
Speaker Change: With that said we are getting the same concerns that everybody else is around the funding environment and your ability to get additional funding and grants approved.
Speaker Change: We looked at the data for the first quarter. We saw the same data that everybody else declared cumulative award values are down almost 40% the proposal for a 40% reduction in 2026 is on the table right now.
Speaker Change: We have assumed that.
Speaker Change: The 40% value does not fall like we did also acknowledge Doug just a 10% year over year as probably not sufficient either and thats, how we framed out nicely.
Sung Nam: Our next question comes from the line of Sunji Nam with Scotiabank. Your line is open. Hi, thanks for taking the questions.
Speaker Change: Our next question comes from the line of <unk> with Scotiabank. Your line is open.
Speaker Change: Hi, Thanks for taking the question maybe.
Sanjay: Maybe starting out with the CIMOA-1 assays that will be available for other existing flow cytometers.
Speaker Change: Maybe starting out with the similar one assays that will be available for either existing flow cytometer. This might be a high class problem, but just kind of curious if there are advantage there will be advantages of using your similar one platform versus other flow cytometer with the.
Sanjay: This might be a high-cost problem, but just kind of curious if there will be advantages of using your CIMOA-1 platform versus other flow cytometers with the CIMOA assays. Yeah, Sanjay, you got it. Yeah, you nailed it. Yes.
Speaker Change: With the CMO assays.
Speaker Change: Yes, Sanjay you got it yes, you nailed it yes.
Masoud Toloue: The platform that we're going to launch at the end of the year is going to be a fully integrated, full instrument assay solution. And as you can imagine, in any fully integrated solution, the platform is going to have, you know, the greatest specs, and it's going to outperform sort of other solutions. And you know, as the technology advances, and there are future, you know, future iterations of the platform, it's going to become even more sophisticated.
Speaker Change: And the platform that we're going to launch at the end of the year is going to be a fully integrated full instrument assay solution as you can imagine an ordinary fully integrated solution.
Speaker Change: One is going to have the greatest specs and it's going to outperform sort of other solutions.
Speaker Change: As the technology advances.
Speaker Change: And there are future future iterations of the platform it is going to become even more sophisticated.
Masoud Toloue: You know, Samoa One, you know, was an intentional naming. And, you know, we expect the fully integrated solution to be a important solution for a lot of customers, both in research, and then those that are working in, you know, regulatory environments, doing longitudinal projects, etc. Got it.
Speaker Change: Similar one and it was intentional name Inc.
Speaker Change: We expect the fully integrated solution to be a <unk> solution for a lot of customers.
Speaker Change: <unk> research and then those that are working in regulatory environments doing laundry terminal projects et cetera.
Speaker Change: Got it.
Masoud Toloue: And then you mentioned that the Accelerator Lab, the pipeline is taking longer to develop.
Speaker Change: And then you mentioned that the accelerator lab. The pipeline is taking longer to develop just was wondering if I could probe a little further and if.
Masoud Toloue: Just was wondering if I could probe a little further and if you might be able to comment on kind of what's driving that. Is that, do you think, you know, is it largely kind of the tariffs and the pharma tariffs and the, you know, even the most favored nation pricing concerns that are going on among your customer base? Or do you think it's just kind of .
Speaker Change: If you might be able to comment on kind of what's driving that is that do you think.
Speaker Change: Is it large the kind of the tariffs and the pharma carrots and indeed, the data even the most favored nation pricing concerns that are going on.
Speaker Change: Among your customer base or do you think it's just kind of.
Masoud Toloue: Reprioritization of some of the projects, maybe in the near term, kind of what do you think are the key drivers of the pipeline taking longer to develop?
Speaker Change: Re prioritization of some of the projects maybe in the near term.
Speaker Change: What do you think are the key drivers of the of the pipeline.
Speaker Change: Longer to develop.
Masoud Toloue: Yeah, you know, Sanjay, I'll take that one. The our accelerator customers are incredibly sticky and incredibly loyal to the to the business. You know, we deliver good results. And I love those results. So you know, I would say the customer stickiness is there. The customer diversity versus last year is even better. So we're seeing, you know, quite a bunch of new customers coming in this year versus last year. And, you know, they begin with, some of the new customers begin with pilot projects that expand to, you know, preclinical work, to phase one and, you know, other programs. So we feel good about that and we think that pipeline is healthy.
Speaker Change: Yes.
Speaker Change: Take that one.
Speaker Change: Our accelerator customers are incredibly.
Speaker Change: Sticky and incredibly loyal to the business we delivered good results.
Speaker Change: And our love those results so I would say the customer stickiness is there.
Speaker Change: The customer diversity.
Speaker Change: Versus last year is even better so we're seeing quite a bunch of new customers coming in this year versus last year and they began with some of the new customers to begin with pilot projects that expand to preclinical work to phase one.
Speaker Change: Other programs. So we feel good about that and we think that pipeline is healthy.
Masoud Toloue: On the short term, you know, I think there's just some form of spending dynamics in the field. You mentioned a few of them and, you know, folks are mainly pushing out projects that we would expect to have gotten, you know, in the early half of the year to second half or beyond. So it's not that the projects are disappearing, but we're seeing some level of push out of larger projects that we wouldn't have anticipated at the beginning of the first half. But overall, you know, 36% growth. Last year, it was a big pillar of our ability to differentiate in the market.
Speaker Change: The short term I think there is just some pharma spending dynamics in the field that you mentioned a few of them.
Speaker Change: And folks are mainly pushing out projects that we would expect to have gotten in the early half of the year to second half or beyond so it's not that the projects are disappearing, but we're seeing some level of push outs.
Speaker Change: Of larger projects that we wouldn't have anticipated at the beginning of the first half, but overall, 36% growth last year. It was a big pillar of our ability to differentiate in the market and we think that this comes back to growth and it continues to be a driver for the business.
Masoud Toloue: And, you know, we think that this comes back to growth and it continues to be a driver for the... Got it.
Speaker Change: Got it and if I could ask a quick one for abandoned. Thank you so much for breakout breaking out the tariff impact. If you I was wondering if you might be able to give us a sense of.
Vandana Sriram: And if I could ask a quick one for Vandana, thank you so much for breaking out the tariff impact. I was wondering if you might be able to give us a sense of what your supply chain exposure looks like, where the kind of the biggest drivers of that tariff impact will be coming from. And then are you guys also factoring in the announcement today on the tariffs between the US and China today? Thank you.
Speaker Change: What your supply chain exposure looks like where the kind of the biggest drivers of that tariff impact will be coming from and then are you guys also factoring in the announcement today.
Speaker Change: The China tariffs, China between the Trs <unk> USA, China today. Thank you.
Vandana Sriram: Yeah, thanks for the question. Let me talk about the cost first and then I'll talk about the revenue. So in terms of incoming costs, our exposure is primarily around certain antibodies. And as you know, our HDX machine is made in... So, through this first quarter, early second quarter process, we already took a handful of countermeasures to make sure inventory was in the right spot and where we needed it to be to minimize the impact of the tariffs. With all those moves, we expect that the impact of tariffs on margins is probably limited to 50 to 100 basis points and not more.
Speaker Change: Yes, thanks for the question.
Speaker Change: Let me talk about the cost first and then I'll talk about the revenue impact.
Speaker Change: In terms of incoming cost our exposure is primarily around certain antibodies and as you know our HTS machine is made in Switzerland.
Speaker Change: Through this first quarter early second quarter.
Speaker Change: We already took a handful of counter measures to make sure inventory wasn't device for that maybe needed to be to minimize the impact of the tariffs.
Speaker Change: With all of those moves we expect that.
Speaker Change: Impact of tariff on margins is probably limited to 50 to 100 basis points and not more than that.
Vandana Sriram: In terms of potential reciprocal tariffs, we had actually factored in the China We had assumed that China would come back to slightly normal levels. We've based some pressure on instruments, knowing that passing on instrument-related tariffs is going to be relatively easy. But we assume that in total, when you take instruments and certain consumables that may be harder than others, the total impact of the reciprocal tariffs should not be more than maybe a hundred basis points. Got it.
Speaker Change: In terms of potential risk appropriate tenants, we have actually factored in China.
Speaker Change: We had assumed that China would come back to <unk> normal levels, we've baked in some pressure on instruments, knowing that passing on instrumentally to types of course presented a difficult, but we assume that in total when you take instruments in total consumables that may be harder than others. The total impact after that that's appropriate tariffs should not be more than maybe.
Speaker Change: 100 basis points.
Vandana Sriram: Thank you so much.
Speaker Change: Got it thank you so much.
Puneet Souda: Next question comes from the line of Puneet Souda with Learing Partners. Hi, guys. Thanks for the questions here.
Speaker Change: Next question comes from the line of Puneet <unk> with Leerink partners. Your line is open.
Speaker Change: Hi, guys. Thanks for the questions here, so maybe the first one on the guide at the midpoint.
Puneet Souda: So maybe the first one on the guide at the midpoint for the year, can you walk us through your assumptions for instrumentation, the consumables and the accelerator? The accelerator obviously came in soft. I just want to understand sort of how you're, you know, how are you thinking about growth in each of those? I mean, when you look at the end market today, obviously, biotech funding is challenged. I mean, large pharma, you've got MFN, you have most, I mean, most favored nation, you've got tariffs still around the corner. Pharma, it is hard to spend, you know, aggressively in times like these.
Speaker Change: For the year can you walk us through your assumptions for instrumentation, the consumables and the accelerator the accelerator obviously came in soft.
Speaker Change: Just want to understand sort of how are you how.
Speaker Change: How are you thinking about growth in each of those.
Speaker Change: I mean, when you look at the end market today, obviously biotech funding is challenged I mean large pharma.
Speaker Change: In Q.
Speaker Change: Most most favored nation, you've got tariffs is still around the corner.
Speaker Change: Pharma it is hard to spend.
Speaker Change: Aggressively in times like these so just given all of that backdrop, and then academics as you know already challenges there so.
Puneet Souda: So just given all that backdrop and then academics, as you know, already challenges there.
Masoud Toloue: So just trying to understand what gives you confidence in this guide and maybe if you can go into the segments. Yeah, sure. I think that's So maybe starting at the top, you know, instruments and consumables, instruments, as you mentioned, still a lot of headwinds in the market. So we expect instruments to be largely the same as what we saw in 2024. 2024 was a step down for us and we'd expect instruments. Consumables is really where our recurring revenue comes in. Consumables grew this quarter, and our expectation is that we should see some nice stuff. You know, maybe not as much as we wanted, but we'll still see some level of stickiness because of the nature of the recurring revenue.
Speaker Change: Just trying to understand what gives you confidence in this guide and maybe if you can go into the segments.
Speaker Change: Yeah sure I think that's what EBITDA, so maybe starting at the top of instruments and consumables instruments as you mentioned.
Speaker Change: A lot of headwinds in the market.
Speaker Change: We expect instruments to be largely the same as what we saw in 2020 for 2024 with a step down for us and we would expect instruments to be launching <unk>.
Speaker Change: <unk> Israeli better articulating revenue pumping consumables grew this quarter and our expectation is that we should see some lifestyle maybe.
Speaker Change: Maybe not as much as we wanted but we'll still see some level of stickiness because of the nature of the recurring revenue.
Vandana Sriram: And then on the accelerator side, you know, the portion of accelerator that is a little more run rate recurring will continue to hold and will continue to be steady. But that's really where you will see the most drop on a year. We had already quantified the impact of the Lilly collaboration coming to an end. That's a fairly significant number. And then in addition to that, the slowness of the pipeline and all the points you made on the pharma spending are the remainder. Okay, got it.
Speaker Change: And then on the accelerator side the portion of factual data that is a little more run rate recurring will continue to evolve and will continue to be steady, but thats really that you would see the most drop on a year over year basis.
Speaker Change: <unk> quantified the impact of the Lilly collaboration coming to them and that's a fairly significant number and then in addition to that the slowness of the pipeline and all the points you made on the farmer spending or the remainder of the difference.
Speaker Change: Okay got it and then just on <unk> I didn't hear.
Vandana Sriram: And then just on 2Q, I didn't hear on the revenue or the margin side. How are you thinking about the second quarter, just given you have some read into that as to how that's playing out? Yeah, sure. So our expectation for the first half was the second half is somewhat consistent with what our history has been in the past. And we've generally done between 45 and 48% of our total year revenue in the first half.
Speaker Change: On the revenue or the margin side.
Speaker Change: Or are you thinking about the second quarter just given.
Speaker Change: You have some read into that as to how thats playing out.
Speaker Change: Yes, sure so our expectation for the half with the second half is somewhat consistent with what our history has been in the Boston, We've generally done between 45 and 48% of our total year revenue in the first half our expectation would be somewhat similar this year as well.
Vandana Sriram: Our expectation would be somewhat similar this year as well, where 45 to 48% in the first half, and then the second half picks up just Okay, that's helpful.
Speaker Change: 5% to 48% in the first half and then the second half picks up just a little bit.
Speaker Change: Okay. That's helpful and then if I could ask on the.
Masoud Toloue: And then if I could ask on the, you know, on the similar one, would you expect your customers to pause the HDX purchases or other instrument purchases? And then ultimately, you know, how should we think about the similar one itself versus flow cytometers that are out there? Do you expect to be, you know, to expect, do you expect to have higher consumables mix, you know, in 2026, just given the installed base there and potentially, you know, migrating to those as much as you can with your with your assays? On the HDXs, HDX continues to be a workhorse for Quanterix, and so you've got to imagine HDX, blood sample in, result out, in neurology, it's unmatched from a platform perspective, and we expect that business to continue and continue uninterrupted.
Speaker Change: On the similar one.
Speaker Change: Would you expect your customers to pause the Sds purchases or other instrument purchases and then ultimately.
Speaker Change: How should we think about.
Speaker Change: The <unk> <unk> flow Cytometer that are out there do you expect to be.
Speaker Change: Unit to expect do you expect to have higher consumables mix.
Speaker Change: 2026, just given.
Speaker Change: The installed base, there and potentially migrating to those as much as you can with your with your assays.
Speaker Change: Yes.
Speaker Change: On the HD X is <unk> continues to be a workhorse for <unk> and so you got to imagine HD X blood.
Speaker Change: Blood sample in result out in neurology on Matt.
Speaker Change: From a platform perspective, and we expect that business to continue.
Speaker Change: And continue on to uninterrupted.
Masoud Toloue: The Samoa platform on launch is going to be a immunology slash oncology initially marker offering, so we don't expect there to be any level of cannibalization on the system. And then to your second point on the expansion into this 20,000 plus install base, we think our margins and consumables are very attractive, and in a market-constrained environment where folks are unclear how long it'll be capital constraint, we're putting together a solution to this market, and we're, as I said in the prior question, meeting researchers where they are, and we think this is going to be well-received.
Speaker Change: Similar platform on launch is going to be a immunology slash oncology initially mark are offering. So we don't expect there to be any level of cannibalization.
Speaker Change: On the system and then and then to your second point on the.
Speaker Change: Expansion into.
Speaker Change: This 20000 plus installed base.
Speaker Change: Our margins in consumables are very attractive and.
Speaker Change: In a markets constrained environment, where folks are unclear how long it will be capital constrained, we're putting together a solution to this market and we're as I said in the prior question meeting researchers where they are.
Speaker Change: And we think this is going to be well received.
Masoud Toloue: You're doing a consumable purchase as opposed to high capex instrument, and similar to what we did last year where we took revenues in a capital-constrained environment and we move into Accelerator, what we're doing here is pretty big and enabling a broad base usage of our ultra-sensitive biomarker detection.
Speaker Change: Doing a consumable purchase as opposed to a high capex.
Speaker Change: Instrument and similar to what we did last year, where we took revenues.
Speaker Change: In a capital constrained environment, then we move into accelerator, what we're doing here is pretty big.
Speaker Change: Enabling.
Speaker Change: Broad based usage of our ultra sensitive biomarker detection.
Puneet Souda: And the last one, if I could just squeeze one last one in, around LucentDX and Alzheimer's, what is your expectation this year for contribution from that?
Speaker Change: Got it and then last one if I could squeeze one last one then around loosened Dx in Alzheimer's what is your expectation this year for contribution from that and I'm wondering if you can start to are you starting to look at 2026, what could be the contribution there because I think the key question here is that some of this.
Masoud Toloue: And I'm wondering if you can start to, are you starting to look at 2026, what could be the contribution there? Because I think the key question here is that some of the startup platforms like the MassFact platforms have gained meaningful adoption, that you have other larger companies that are, you know, large caps or mega caps that are in the space that are investing in this space. So, you know, how are you thinking about your position with the assay and where you stand today and your expectations this year? Thank you. Yeah, absolutely. You know, the, this is going to be a large market, right?
Speaker Change: Startup platforms like the mass spec platform gained.
Speaker Change: <unk> meaningful adoption, but you have other larger companies that are.
Speaker Change: Large caps are mega caps that are in this space that are investing in this space. So how are you thinking about your position.
Speaker Change: With the assay and where you stand today in your expectations for this year. Thank you.
Speaker Change: Yes, absolutely.
Speaker Change: And this is going to be a large market right. We are talking about a 9% to $10 billion blood testing market in the future and the offering that we have is unmatched loosened 80 complete combines not only just 2017, but add four more markers to Ed.
Masoud Toloue: We're talking about a $9 to $10 billion blood testing market in the future. And the offering that we have is unmatched. You know, LUCEN 80 complete, it combines not only just 217, but adds, you know, four more markers to it. And we have an algorithm where we're able to deliver, you know, 90% accuracy while reducing intermediate zone to, you know, around 10, 12%. No other test performs, you know, that, those features, you have intermediate zones that are, you know, 20 to 30% in the field. And I think when customers look at the ability to reduce, follow on PET, to reduce, you know, follow on expense and testing, that's going to be favored by patients, payers and physicians.
Speaker Change: And we have an algorithm, where we're able to deliver 90% accuracy, while reducing intermediate zone to around 10% to 12% no other test performance.
Speaker Change: Those features you have intermediate zones that are 20%, 30% in the field and I think when customers look at the ability to reduce follow on pet to reduce in a follow on expense and testing that's going to be favored by patients payers and physicians and we have a great deal of confidence that <unk> is going to.
Masoud Toloue: And we have a great deal of confidence that Quanterix is going to, you know, be playing a major role in the, in the market of testing. And then, you know, on your other question on the availability of the test vis-à-vis some other providers, look, I think we're working very hard to build a distribution collaboration. So we announced a big one today on the call. We're going to continue to do that and make sure that our customers and service providers around the world will be able to offer our testing. And at the same time, we're going to be working hard to build that infrastructure in our laboratory with our fleet of systems and instruments and get it out into the world.
Speaker Change: Be playing a major role in the in the market of testing.
Speaker Change: And then.
Speaker Change: <unk>.
Speaker Change: The.
Speaker Change: Your other question on the availability of the test.
Speaker Change: Some other providers look I think we are working very hard to build a distribution collaborations we announced a big one today on the call.
Speaker Change: We're going to continue to do that and make sure that our customers.
Speaker Change: Our in service providers around the world will be able to offer our testing.
At the same time, we're going to be working hard to build that infrastructure and our laboratory with our fleet up systems and instruments and get it out into the field.
Masoud Toloue: From a revenue contribution, Puneet, you know, I think we did 6 million, Vandana mentioned, you know, we did about, you know, a million and a half, you know, this quarter. And you know, I think part of it is gated on how fast there's therapy adoption and drug adoption in the market. And for as soon as there's demand and, you know, a need, we have a commercial infrastructure that we're building, that's out in the field. We're continuing to invest in Alzheimer's diagnostics. We're not putting our foot off of the gas pedal there. We're investing even more for this really sizable opportunity.
Speaker Change: From a revenue contribution.
Speaker Change: I think we did 6 million bond that I mentioned, we did about one.
Speaker Change: 1 million and a half.
Speaker Change: This quarter.
Speaker Change: I think part of it is gated on how fast they're therapy adoption in drug adoption in the market.
Speaker Change: And for as soon as there is demand in.
Speaker Change: A need we have a commercial infrastructure that we're building that out in the field, we're continuing to invest in Alzheimer's diagnostics, we're not putting our foot off the gas pedal in there.
Speaker Change: Investing even more.
Speaker Change: This really sizable opportunity. So I think we've got the best test we've got a great infrastructure, we've got great partners and we're ready to support the field.
Dan Brennan: So I think we got the best test, we got a great infrastructure, we got great partners, and we're ready to support the field. And should we run rate that for the rest of the year, one and a half million? Yeah, I said too soon to save the year as you saw last year, it was a little bit lumpy, but now there is a Okay. All right. Thank you. And again, if you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: And should we run rate that for the rest of the year of one 5 billion.
Speaker Change: Yes, I'd say too soon to say in the year as you saw last year is a little bit lumpy, but now there is a steady flow.
Speaker Change: Okay alright, thank you.
Speaker Change: Yeah.
Speaker Change: And again, if you would like to ask a question. Please press star one on your telephone keypad.
Dan Brennan: And we have a question from Dan Brennan with TD Cowen. Your line is open. Great. Thank you. Thanks for taking the questions.
Speaker Change: And we have a question from Dan Brennan with TD Cowen Your line is open.
Dan Brennan: Great. Thank you thanks for taking the questions congrats on the quarter maybe.
Vandana Sriram: Congrats on the quarter. Maybe just on the cash flow side, you talked about the levels this year and next year. Can you just assess some of the puts and takes for next year? Kind of what goes into the assumption? Any high-level comments there?
Dan Brennan: Maybe just on the cash flow side, you talked about the levels. This year and next year can you just discuss some of the puts and takes for next year kind of what goes into the assumption any any high level comments. There and then also what's the latest thinking about a coy as cash burn for 2026, if you could share that.
Vandana Sriram: And then also, what's the latest thinking about Akoya's cash burn for 2026, if you could share that? Yes, so I can start with that. So as we look forward into 2026, you know, we've certainly taken into account the changes that we announced today in terms of our revenue guidance, etc. I don't necessarily want to guide for Acquoia just yet, but we've taken into account a fairly prudent assumption on Acquoia revenue as well. And then when you put the two businesses together, we also then factor in the synergies that we expect to realize. We've talked previously about $40 million of synergies.
Dan Brennan: Yes, so I can start with that so as we look forward into 2020, we are starting to be taken into account.
Changes that we announced today in terms of our revenue guidance et cetera.
Dan Brennan: When we.
Dan Brennan: The downside of that.
Dan Brennan: We want to guide for <unk>, just yet, but we've taken into account a fairly prudent assumption on the courtyard revenue as well and then you've got to put two businesses. Together. We also then factor in the synergies that we expect to realize we've talked previously about $40 million of synergies.
Vandana Sriram: Against that, with the cost actions that we're taking today, we believe that number will really be more like $55 million. So that's really what moves our cash fund and really gives us the scale that we were looking for. You know, we built ourselves for scale when we did our transformation a couple of years ago. So we have the capacity and we have the bandwidth to be able to take on that volume and realize. So the way we built our cash bag basically was in 2025, we expect to complete Pay down the debt and, you know, start to kind of moderate the cash flow immediately.
Dan Brennan: Against that with the cost actions that we're taking today, we believe that number will really be more like $55 million. So thats really what most of our cash flow and really gives us the scale that we were looking for with this acquisition.
Dan Brennan: We built ourselves for scale when we did our transformation a couple of years ago. So we have the capacity in behalf of bandwidth to be able to take on that volume and realize the synergies.
Dan Brennan: So the way we built our cash scientifically was in 2025, we expect to complete the deal pay down the debt and start to kind of moderate the cash flow immediately and then in 2026. Please see the full value of all of the synergies come through.
Dan Brennan: And then in 2026, we see the full value of all of Got it, okay.
Dan Brennan: Okay.
Dan Brennan: Got it okay.
Masoud Toloue: Maybe just on the Lucen AD, Masoud, the triple-digit price, what's kind of the visibility on that? Can you just remind us? And how you get there, obviously, you know, the single analyte price was disappointing the way, you know, it was priced.
Dan Brennan: Maybe just on <unk>.
Speaker Change: Masoud, the triple digit price, what's kind of the visibility on that can you just remind us on.
Dan Brennan: And how you get there obviously the single analyte price with disappointing.
Masoud Toloue: I'm just wondering on the triple digit price. Yep, yeah, so the way we think about this, this is a five marker test, Dan. So, you know, five markers. We have a Alzheimer's algorithm that takes, you know, each of the five markers, quantitates it through the algorithm and then provides an Alzheimer's risk score. So when you look at comparable tests in the market, proteomic tests in the market that are, you know, four or five markers, you see sort of the price level that I'm referencing. So it's very different than, you know, a single marker test that got priced in the past.
Speaker Change: So I'm just wondering on the triple digit price.
Speaker Change: Yes, yes, so the way we think about this this is a five marker test Dan.
Speaker Change: So five markers, we have a alzheimers algorithm.
Speaker Change: Each of the five markers quantitate set through the algorithm and then provides the alzheimers risk score. So when you look at comparable testing the market proteomics tests in the market that are four five mark or as you see sort of the price level.
Speaker Change: That I'm referencing so it's very different than.
Speaker Change: A single marker test that got priced in the past.
Masoud Toloue: And we anticipate, you know, this to be a summer pricing, and we'll hopefully, with favorable pricing, be able to offer that at the beginning of 2020. Great.
Speaker Change: And we anticipate this to be a summer.
Speaker Change: Some of our pricing and.
Speaker Change: Hopefully with favorable pricing and be able to offer that at the beginning of 2026.
Vandana Sriram: And then maybe just one more on the accelerator. I know there's a few questions asked already, but just in terms of that, you talked about the percentage of the business that isn't recurring. Maybe it's like lumpier, bigger contracts. What have you baked in in the back half guide for that? I know it was mentioned earlier in a few questions, just given, you know, the uncertainty on pharma spending right now. I wonder if you've kind of taken a real conservative stance there. Yes, so over there, you know, we mentioned that on the overall pharma side, we've baked in about 900 basis points of production year over year, the large majority of that will hit Accelerator, again, four and a half million dollars coming straight from Lilly, and then the remainder coming from the fact that we don't have visibility right now into those large The pipeline is there.
Speaker Change: Great and then maybe just one more on the accelerator I know, there's a few questions asked already but just in terms of that.
Speaker Change: Talked about the percentage of the business that isn't recurring maybe it's like Lumpier bigger bigger contracts is what have you baked in the back half guide for that just I know it was mentioned earlier and a few questions just given.
Speaker Change: The uncertainty on pharma spending right now I'm wondering if you've kind of taken a real conservative stance there.
Speaker Change: Yes, so over there.
Speaker Change: Mentioned back on the overall pharma side, we've baked in about 900 basis points of <unk>.
Speaker Change: Production year over year, the large majority of that will hit the accelerator again partner Hoffman coming straight from lending and then the remainder coming from the fact that we don't have visibility right now into those large project pipeline of third we don't have good line of sight into exactly when that developed and when that really starts to hit.
Vandana Sriram: We don't have a good line of sight into exactly when that develops and when that really starts. Got it, okay. Okay.
Speaker Change: Got it okay.
Masoud Toloue: Final one, just kind of, you know, when that's in the market, kind of what's your feedback now in terms of sales funnel things of that nature? How do you think about the contribution that you could see from that, say, in year one? Yeah, Samoa One, you know, when we are looking at the platform, there's excitement on the ability to go even higher sensitivity. I think, you know, we have customers that use us on a regular basis, Dan, and say, Hey, what about, you know, you gave us early, what about, you know, single molecules that are going from tissue to blood, when can we even detect that earlier?
Speaker Change: Okay.
Speaker Change: Final one smaller one just kind of when that's in the market kind of what's what's your feedback now in terms of sales funnel things of that nature. How do you think about the contribution that you could see from that in year one.
Speaker Change: Yes, similar one.
Speaker Change: We are looking at the platform there is excitement.
Speaker Change: The ability to go even.
Speaker Change: Higher sensitivity I think we have customers that use us on a regular basis, Dan and say hey.
Speaker Change: What about you gave us early what about.
Speaker Change: Single molecules that are going from tissue to blood.
Speaker Change: When can we would even detect that earlier and so.
Masoud Toloue: And so, you know, that was like sort of the conception of CEM-001, our ability to increase multiplexing to a level that is going to be important for periomics and testing, which, you know, up to 10 markers, you know, is very relevant from a testing and diagnostics perspective. And then, you know, our ability to just do a very efficient workflow and, you know, what we've already delivered on our platforms and having something that's simple and easy to use was important from our customers. We have been talking to folks in the immunology field who are super excited about this.
Speaker Change: That was like sort of the conception of some over one our ability to increase multiplexing to a level that is going to be important for proteomics and testing, which up to 10 markers.
Speaker Change: It's a very relevant from a from a testing and diagnostics perspective and then.
Speaker Change: Our ability to just do a very efficient workflow.
Speaker Change: We've already delivered on our platforms and having something that's simple and easy to use what's important from our customers. We have been talking to folks in the immunology field, we're super excited about this.
Masoud Toloue: And, you know, by the end of the year, we'll be able to talk a little bit more about the features and the system and hopefully have customers that are ready to go.
Speaker Change: By the end of the year, we'll be able to talk a little bit more about the features in the system and hopefully have.
Speaker Change: Customers that are ready to go.
Masoud Toloue: And then, you know, and then as I mentioned, we got a program in 26, where we're going to do a much broader democratization and and that has implications for Something that's much grander wider than that. We've been talking about here from instrument to instrument per capita Okay, terrific. All right.
Speaker Change: And then and then as I mentioned, we've got a program in 'twenty, six where we're going to do a much broader democratization and and that has implications for.
Speaker Change: Something thats much grander wider than that we've been talking about here from instrument to instrument purchases.
Speaker Change: Okay terrific all right well, thank you very much.
Operator: Well, thank you very much.
Operator: Ladies and gentlemen, that concludes today's conference call. Thank you all for joining and participating today.
Speaker Change: Ladies and gentlemen that concludes todays conference.
Speaker Change: Conference call. Thank you all for joining and participating today you may now disconnect.
Operator: You may now disconnect.
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