Q2 2025 Biolife Solutions Inc Earnings Call
Good afternoon, ladies and gentlemen, and thank you for standing by, welcome to the BioLife Solutions, Q2, 2025 shareholder and analyst conference call at this time, all participants are in a listen-only mode.
After today's presentation, there will be a question and answer session.
This conference is being recorded, and now I turn the call over to 12 Victor Men, Chief Financial Officer of BioLife Solutions.
Please go ahead, Mr. Wickman
Please stand by.
Please stand by.
Pardon me, ladies and gentlemen. Please stand by; the call by our live call will begin momentarily. Thank you.
Thank you, operator. Good afternoon, everyone, and thank you for joining the BioLife Solutions, Inc. 2025 second quarter earnings conference call.
On the call with me today is rodri degree, CEO and chairman of the board.
We will cover business, highlights and financial performance for the quarter and provide an update for our increased 2025 Revenue guidance.
Earlier today, we issued a press release announcing our financial results and operational highlights for the second quarter of 2025 which is available at BioLife solutions.com.
As a reminder. During this call, we will make forward-looking statements
These statements are subject to risks and uncertainties that can be found in our SEC filings.
These statements speak only as of the date given and we undertake no obligation to update them.
We will also speak to non-gaap or adjusted results.
Reconciliations of gaap to non-gaap or adjusted Financial metrics are included in the press release. We issued this afternoon.
Now I'd like to turn the call over to Rod degrief chairman and CEO of BioLife.
Thanks Troy, good afternoon, and thank you for joining us for BioLife. Second quarter, 2025 conference call, we delivered another strong quarter as our team continues to execute and build on the momentum established over the last several quarters.
On the top line, cell processing revenue increased 28% year-over-year, driving a 29% increase in total revenue for the quarter.
With strong performance in cell processing Revenue coupled with meaningful adjusted Evita margin expansion, which is up, 400 basis points to 24%. We're seeing the operating leverage play out in our financial results, realizing the benefits of our optimized product portfolio, and streamlined operations,
With over 100 million in cash and marketable securities at quarter end. We're operating from a position of strength enabling us to invest in our strategic priorities.
This includes advancing targeted growth initiatives as evidenced. By our recent investment in floristics, We are continuing to drive market share in our core cell processing business.
We remain highly focused on operational execution, and disciplined Capital, allocation to ensure we're deploying resources where they can generate the greatest return.
Our strategy is working.
With a sharpened focus, a leading product portfolio and an enhanced Financial profile. We believe we're well positioned to deliver sustainable growth throughout the balance of 2025 and Beyond.
This confidence is reflected in our decision to raise our full year Revenue. Guidance driven by continued strength in cell processing even as broader macro uncertainty, persists.
I'll speak more to this later in my prepared remarks. Looking at our second quarter, more closely cell processing Revenue, reached 23 million, a 28% year-over-year increase and up 6%. Sequentially making this our seventh consecutive quarter of cell processing, Revenue growth,
performance was led by continued strength in our core biopreservation Media or BPM product line, which represents approximately 85% of our Q2 cell processing Revenue
In Q2, our top 20 customers continue to account for Approximately 80% of BPM Revenue, which provides us with the benefit of increased visibility to a critical portion of our business.
Half of our direct channel, BPM revenue.
While a portion of that demand supports clinical trials, and process development. Rather than specific patient dosing, we continue to view these commercial customers as a key growth driver, in the quarters ahead.
A highlight this because it reflects the resilience and consistency inherent in our model, anchor to later stage and improve programs that are less susceptible to funding constraints.
Overall these metrics remain, broadly consistent with what we saw in the first quarter of 2025 reinforcing. The stability and recurring nature of our cell processing business.
BioLife has become the default partner for later, stage clinical programs, where success is more likely and the path to commercial revenue is more defined and the data continues to support this position.
At the end of the second quarter, our BPM products were in the total of 16 approved therapies and used in more than 250 relevant commercially. Sponsored cgt trials in the US representing over a 70% share.
notably this includes more than 30 phase 3 clinical trials bringing our estimated share in this phase to nearly 80% underscoring our leadership in late stage clinical development,
Harnessing this momentum, our sales and marketing team is spending the majority of their time visiting customers. They remain focused on deepening relationships with our key BPM accounts, both commercial and clinical, in order to unlock cross-sell opportunities to drive broader adoption of our full cell processing portfolio.
Today, our self seal and hpl products are utilized in 4, approved Therapies in the US and internationally, in addition to being used in over 35, commercially sponsored clinical trials in the US.
We believe there is a significant long-term potential to scale these products over time.
As we've shared before, each additional product integrated into a commercial therapy, has a potential to materially increase Revenue per dose Often by 2 to 3 times compared to our BPM products alone. Our commercial team is highly focused on advancing this cross sell strategy and today we have a growing number of BPM customers including large Pharma, who have adopted or evaluating, at least 1 additional product. While this opportunity will play out over the mid to longer term. Early traction, reinforces our confidence in its potential as a future growth lever for BioLife.
In July, we made a Strategic investment in purists a local early stage, but Revenue, generating developer of innovative ipsc, based products for the cell therapy Market. Floristics has a strong scientific team with a deep expertise, in cell therapy and their recent launch of a biological assay for organoid manufacturing aligns with our interests in exploring biological assays, more broadly, as a potential adjacency to our core cell processing portfolio,
This investment demonstrates, our commitment to exploring inorganic product, portfolio expansion into relevant, adjacencies in a measured and disciplined manner.
We remain optimistic about the long-term, fundamentals of the cgt industry but acknowledge persistent near-term. Uncertainties whether from tariffs, NIH budget, pressures or ongoing leadership changes at the FDA
We are actively monitoring. These Dynamics from both A supplier and customer perspective. But do not expect any material impact. On our financial outlook for the balance of 2025 that said, there have been some positive developments, which should lead to enhanced patient access to cell therapies over time.
Specifically, we view the fda's recent decision, to remove the Rems, requirement as an encouraging signal for the broader cgt landscape. This update reflects growing regulatory confidence in this class of therapies, backed by years of real world, safety and efficacy. Data by reducing patient monitoring burdens, this change should expand patient access streamline, clinical workflows, and ultimately Drive, increased referrals and uptake. Finally give our strong first half performance and clearer. Visibility into second. Half demand. We're raising our full year cell processing Revenue, guidance to 91 to 93 million reflecting an increase of 24 to 26% over last year.
With that, I'll hand the call over to Troy, who will provide an overview of our full Q2 results and changes to our total guidance.
Troy.
Thank you, rod.
We reported Q2 revenue of 25.4 million.
Representing an increase of 29% year-over-year.
Related to a 28% increase in our cell processing. Platform driven by an increase in biopreservation media Revenue.
Gaap gross margin for Q2, 2025 was 62% compared with 64% in Q2 2024.
Adjusted gross margin for the second quarter was 65%, compared with 67% in the prior year.
The decrease in adjusted gross margin percentage, compared with the prior year was primarily attributed to Fleet repair and maintenance costs at our Evo operations.
And a less favorable product, mix as a percentage of Revenue.
Despite the decrease in gross margin percentage, we had an increase of 3.2 million or 25% in gross margin dollars, reflecting strong Revenue growth, compared to the prior year.
gaps operating expenses for Q2 2025 were 42.1 million versus 21 million in Q2 2024,
The increase compared to the prior year was largely due to a 15.5 million. Non-cash IP R&D expense incurred in connection with a panthera acquisition.
We Fair valued the IPR andd asset at 15.5 million and in accordance with us gaap. The fair value of the asset was immediately expense.
For clarity. This is not an impairment and is treated as an expense under us, gaap and we are excited about the potential future of iri technology.
In addition stock based compensation increased by 1.9 million over Q2 2024.
Adjusted operating expenses for Q2 2025, totaled, 16.9 million compared with 14 million in the prior year.
Gap. Operating loss for Q2 2025 was 16.6 million versus 1.3 million in the prior year.
Our adjusted operating loss for the second quarter of 2025 was 0.5 million compared with an adjusted operating loss of 0.8 million in Q2 2024.
The increase in GAAP operating loss was primarily due to the 15.5% from the Panther acquisition and an increase of $1.9 million in stock compensation.
Our gaap. Net loss was 15.8 million or 33 cents per share in Q2 compared to 5.6 million or 12 cents per share in the prior year.
The increase in net loss was primarily due to the 15.5 million IP R&D expense. We incurred, which had a 32 Cent impact on EPS during the quarter.
without the impact of the iprd expense our gaap, net loss per share would have been 1 cent
Adjusted ibida for the second quarter of 2025 was 6.1 million or 24% of Revenue, compared with 3.9 million, or 20% of Revenue in the prior year.
Adjusted ibida increased in the prior year. Primarily due to the 3.2 million Improvement in gross. Margin driven by increased sales of buyer, pressurization media and includes 220,000 of Opex from the panthera acquisition.
Turning to our balance sheet, our cash and marketable securities balance reported as of June 30th. 2025 was a 100.2 million compared with a 107.6 million as of March 31st 2025
Taking into consideration, our adjusted. EBA of 6.1 million in Q2, cash usage was primarily driven by the 11.5 million cash outflow for the purchase of panthera.
Debt, principal payments of $2.5 million.
and capital expenditures of 1.9 million.
The entirety of our 10 million svb debt, balance became short-term at quarter end.
Our final payment on the Seb, debt balance is due June 2026.
We expect to continue making quarterly repayments of 2.5 million and have a 1.2 million loan maturity balloon payment due at the time of maturity.
Turning to our 2025 Financial guidance, which we are increasing our original guidance from our q1 earnings call.
Total revenue is now expected to be 100 million to 103 million reflecting an overall growth of 22% to 25%.
This is an increase from prior guidance of 95.5 million to 999 million.
Our cell processing platform is now expected to contribute $91 million to $93 million, or 24% to 26% growth, over 2024.
This is an increase from prior guidance of 86.5 million to 89 million.
Platform.
which is still expected to contribute 9 million to 10 million, or 3% to 15% growth over 2024
We expect adjusted gross margin for the full year to be in the mid-60s. Our reduction in gaap, net loss and expansion and adjusted IBA margin in 2025 due to higher expected Revenue partially offset by increases in R&D expenses related to development projects,
We are not expect any material revenue from panthera in 2025.
finally, in terms of our share count as of July 31st, which includes shares issued from our Panther acquisition,
we had 47.9 million shares issued in outstanding and 50.2 million shares on a fully diluted basis.
Now, I'll turn the call back to the operator to open up for questions.
Yes, thank you. We will now begin the question and answer session.
To ask a question. You may press star then 1 on your telephone keypad. If you are using a speaker-phone please pick up your handset before pressing the keys every time your question has been addressed and you'd like to withdraw it, please press star. Then 2 this time we will pause momentarily to assemble the roster.
And the first question comes from Matt Stanton with Jeffries.
Hey, thanks. Maybe this is the first 1 on on the guidance. You know, the updated guidance seems to suggest, you know, kind of a 6% ramp in the back half versus what you did in the first half year, just talk about your level of of visibility into that giving some of the the macro you called out is that all tied to commercial ramps. Are there any kind of later stage clinical items? You hope to see um move further along? And then uh just maybe 1 quick 1 in terms of phasing any more color in terms of what you expect to see between 32 and and 42. I assume maybe there's a bit of seasonality in in 4 q but trolling any more color on, that would be appreciated. Thank you.
Hi Matt, it's Rod here. Um, yeah, you're correct in the percentage increase, first half the second half and it's based on pretty good visibility with respect to the 80% of of biopreservation media Revenue. That's made up of the 20, uh, largest customers, including distribution, which we have decent visibility on as well. So we feel pretty confident um based on what we're seeing, there may be some uh lumpiness between Q3 and Q4, but we're highly confident in the overall second half number and therefore the full year number and the address is seasonality question. We really don't experience seasonality in our business but as Rod mentioned, it really depends on the order. It's placed by our largest customers that influences that sequence.
Okay, great. Thanks. And then Rod, you talked to a little bit in the, in the prepared remarks. But would you love to just hear a little more color from you on updates around? You know, the team's focus on cross-selling Dynamics, I know you and, and the team have been focused on that. I think you talked about kind of early traction, just any more color in terms of proof points, is that, you know, trialing products is that early indications on orders. Um, you know, parts of the funnel, just any more color, you can kind of provide on on the cross selling Dynamics and and maybe just you know, a little more color in terms of what maybe near to mid-term and then what's more mid to long term. Um, thank you.
Yeah, so we look at it. Um, as a
A percent of or media customers that are purchasing and utilizing other Technologies or tools that we have that sort of the the framework that we look at it within and we have some baseline numbers that we're working with coming at a 24 and then applying that same filter to q1 and Q2 were internally figuring out the best way to report that out, uh, and expect to be able to report it out in Q3. So that we have that be part of the periodic metrics that, that we report. But I think anecdotally, it's fair to say that we're definitely seeing some traction and there's a couple of larger accounts that uh can provide some significant Revenue opportunity with respect to adopting. For example, our ct5 automated Phil device with 1 of our largest custo
And what is going on there and the teams working on it. We have a relatively small number of team of team members in the sales force, but at the same time, the absolute number of clinical trials that they need to go touch. Uh, are also relatively small so give us another quarter and we'll be able to get more specific around that Matt.
Thanks you maybe I just need 1 more just on the the cryo case. Just any update on the the timeline. I think you had talked about previously kind of a couple quarters to make some tweaks in relation to a a larger customer that gave you some feedback and then any update on the status of kind of locking them in on the other side of of uh, making those tweaks, as well as it relates to the Crow case. Thank you. Yeah. That that's the key. Is that yes, we have a large uh commercial customer uh probably number 3 or 4 and they're highly interested in adopting crowd case for their clinical pipeline as you noted. They've asked us to uh, make some changes. However, these changes are pretty material with respect to the mold, uh, that we have. So, what we're asking them to do is, give us a commitment and we're in the process of that conversation right now. Once we get that commitment, that they will adopt the crowd case, assuming that we make the changes they want, then we're going to go ahead and make those changes. I will say that. Um, I'm pleased.
When I did my last check-in on cryo case evaluations that we have well over 30 customers that are currently evaluating the cryo case within our media uh customer base.
Thank you.
Thank you.
Thank you. And the next question comes from Chad with troski from TD account.
Hey guys, just wanted to touch on a little bit. Um, the company also has sort of this prior freeze crop reservation. Uh, products, do you view that as a competitor today? Obviously, you have a huge moat and are the incumbent in commercial therapies would a future acquisition of purists allow you to uh enter any other parts of the market.
Yeah. So we're clearly aware of their purifies product. Um and again we have respect for what what their capabilities are. We do not see them as any kind of competitive threat from a crop preservation perspective. Um, their focus with respect to crop reservation, has been specifically around ipsc cells, um, and trying to gain some incremental benefit. So that's kind of a side tangential, uh, part of it. All the real big Focus for us is this idea that they're starting to develop some assays, which is an area that we're interested in in looking at more closely. Uh, and that's really what the focus of the investment was about.
That's helpful. And then just on panthera, is there, are there any updates worth mentioning just regarding the next gen combo formulations and are those the next products in general that we can expect to be launched?
Yeah, in terms of um, denovo products in in the media category, I would say yes. So from an update perspective, you recall that we closed the transaction in early April of this year. And we stated that we expected to have uh, commercial product flowing in 18 months, which kind of puts that in the back, half of next year. So we remain on track to to meet that objective. And right now, the focus is the scientific work. Uh, associated with identifying which of the 3 Gen 2 molecules will ultimately end up with in terms of combining that with our crowd store product, we do have um 1 of the Gen 2 molecules in the hands of 2 customers who have commercially available therapies and they're experimenting with that to see what sort of impact uh, that has on cryopreservation efficacy from their perspective. So it is in the hands of 2 sophisticated.
Indicated real world large customers. So, we're looking forward to getting that feedback in the next couple of quarters.
Thanks for the question guys. Nice quarter.
Thank you, thanks.
Thank you. The next question comes from back out, Ash with Steven Zinc.
Hey, good afternoon. Um,
appreciate you taking my questions. It it seems commentary lately. It's been more recently focused around the cell processing segments obviously a priority, uh, just given where it's at, but I'd like to take your temperature on expectations around Evo and fall and just giving your comments around Purity sticks. Just how that segment fits into the portfolio longer term.
Under evaluation with respect to, whether it's a long-term fit with the overall strategy of BioLife saw we are definitely, um, convinced that that will be something that we will maintain in the product portfolio. It's incredibly consistent with respect to the revenue, it generates on a quarterly basis. So it's, it's a nice product line to have. Um,
there was a second part of your question.
I I think that answered it pretty accurately um I appreciate that and then and then focusing on uh early clinical stage portion of the business within media just given the continued funding challenges and you know headlines from our regulatory perspective and things of that nature. What are you seeing in terms of demand Trends there?
Yeah, good question. So I would say that in Q2, it's fair to say that all of our customer segments were up year-over-year, but from a percentage increase, I would say the lightest of those would be what we call our other clinical customers which are the smaller earlier stage uh Phase 1, Phase 2 customers. So clearly we're seeing a little bit of softness but nevertheless they're still up year-over-year. Um and we expect that to continue for the balance of 25.
I appreciate the color.
You bet. Thank you.
Thank you. And the next question comes from Kowski with Key Bank.
Hi. Thanks for taking my question and congrats on the quarter. Um, maybe first you called out strength in both your direct sales and distribution Network. Um and I know distribution is often exposed to more uncertainty. So is there anything you would call out there in terms of visibility or has anything changed there from the first quarter?
No, you you're you're right in pointing out the um the visibility issue. So in our last call, I think we stated that to the extent that we expected to see any ramifications of, in particular, NIH funding. That we would likely see it through our distribution Channel, which sells primarily to small labs, Etc. Um, we have not seen that certainly not in Q2 and based on the forecast that we received for the second half of the Year. We're not seeing any weakness there either. So at at least as we sit today we're confident that that distribution line is going to continue to have some strength to it throughout the rest of the year.
Okay perfect. Um and then my next question is just on the m&a front. I know you acquired the remaining Panther business. Um maybe if you could just touch on how you see this business advancing your existing portfolio. Um maybe boosting your market share and then how do you view your m&a strategy going forward.
yeah, so with respect to Panther, really the the fundamental driver there was to
Really underscore our Market leadership within the area of biopreservation. So by adding iri which has some unique characteristics relative to our core product line, in addition to Bringing on several very um accomplished trial biologists to to beef up our staff and and scientific expertise in that area. Really. I think it puts us without question between that and the market leadership that we have from the clinical stuff trial standpoint and from an approved therapy standpoint. It's hard to debate. That BioLife is is the market leader and gold standard in biopreservation so that was a strong driver for doing that. What we expect to come out of? It is a line of products sort of in the second half and it'll probably be 1 product first with several others that come behind it. And the opportunity there with these products are to have better crowd preservation efficacy.
When combined with our standard crowd store product, it has the opportunity to have the same crowd preservation efficacy but with a lower concentration of DMSO. And then the real I think home run for us would be to be able to allow these cell therapies to be shipped. Not at ln2. 196, minus 196, temperature ranges, but more minus 80. And I think that's a much longer term. But potentially significant alteration to the, the way that coal chain Logistics Works in today's Marketplace.
Thank you.
Thank you. And the next question comes from Yu Chan with 8C rain, right?
Uh, could you give us some common on the rationale behind the uh 2 million convertible note? And also whether uh, you will eventually acquire that Target company and also in general your m&a strategy going forward. Thank you.
Yeah, so I'll speak to the second part of your question, with respect to the puristic investment and the whether you know, we we did structure the investment similar to that of panthera. And um,
Sexton. Thank you Troy. Um,
And so in that case we do have an opportunity to have some rights relative to an acquisition down the road. But what will determine that is 2, things 1 is our our conclusion that essays uh are a place that we want to be from a product adjacency, and that the uptake or the the revenue growth, uh, that purest is going to realize over the next few years is going to be sufficient to, to make a difference to us, so relative to puristic, that's sort of how it works. In terms of the overall m&a strategy, I think it, it really is focused on
A disciplined approach to make sure that whatever we do as a strategic, rationale to it, with respect to where we already are from a product portfolio. So, again, the in, in the simplest terms, it's between the walls of the cell manufacturing facility, its products that are adjacent to products. We already have. And whether that as in the case of panthera solidifies, our Market leadership position, or some other opportunities that were looking at, which would take an existing product line, that we have and move us into the market leadership position. Those are the kind of things we're looking at.
Got it. Thank you.
Thank you.
Thank you. And this concludes our question and answer session. I would like to turn the floor back over to Roger to grief for any closing comments.
Thank you, Keith in closing, the first half of 2025 positions us well for the balance of the year.
We remain confident in our ability to navigate any uncertainty with minimal impact to our financial results.
Thank you for your time this afternoon and we look forward to updating you as we move through the remainder of the year, as well as seeing some of you at upcoming investor conferences.
Thank you. The conference is not concluded. Thank you for attending today's presentation. May now disconnect your lines