Q3 2025 Alpha Teknova Inc Earnings Call

Speaker #3: Fortunately , the

Speaker #3: other

Speaker #3: 75% of our .

Speaker #3: 75% of our taken revenue comes from.

Speaker #3: catalog products

Speaker #3: and custom

Speaker #3: products

Speaker #3: across all

Speaker #3: other

Speaker #3: market segments

Speaker #3: has grown in

Speaker #3: the low double

Speaker #3: for the year to date

Speaker #3: And we are

Speaker #3: seeing an

Speaker #3: uptick in demand for custom reagents in these other segments of the market , such as animal health , life science tools , and diagnostics .

Speaker #3: Taken together , we remain very confident in our strategy and our optimistic for the long term . First , we have a foundational business that is predictable and growing that can support the company until the

Speaker #3: historical growth rates

Speaker #3: .

Speaker #3: we have

Speaker #3: execute

Speaker #3: operationally and

Speaker #3: commercially

Speaker #3: . And

Speaker #3: finally ,

Speaker #3: we

Speaker #3: continue to

Speaker #3: attract and onboard new clinical

Speaker #3: solutions

Speaker #3: which we

Speaker #3: in

Speaker #3: combination with our

Speaker #3: Essentials

Speaker #3: products , will allow us to can achieve a

Speaker #3: sustainable

Speaker #3: 20 to 25% top line

Speaker #3: growth

Speaker #3: as therapies and

Speaker #3: diagnostics

Speaker #3: migrate from research

Speaker #3: to

Speaker #3: commercialization

Speaker #3: .

Speaker #3: will

Speaker #3: now hand 9.6 million the call

Speaker #3: to talk

Speaker #3: financials

Speaker #3: .

Speaker #4: Thanks , Steven , and good afternoon ,

Speaker #4: everyone

Speaker #4: .

Speaker #4: Overall , we delivered

Speaker #4: great in the

Speaker #4: financial results for the third

Speaker #4: quarter

Speaker #4: of 2025 . As Steven

Speaker #4: revenue

Speaker #4: 10.5 million ,

Speaker #4: a 9%

Speaker #4: increase , and

Speaker #4: from

Speaker #4: 9.6 million in the third

Speaker #4: quarter

Speaker #4: of 2020 . For essentials

Speaker #4: . Once again , strong

Speaker #4: sales from was the

Speaker #4: catalog

Speaker #4: portion of our lab

Speaker #4: Essentials products drove our

Speaker #4: revenue

Speaker #4: growth in the

Speaker #4: quarter

Speaker #4: Lab

Speaker #4: essentials of

Speaker #4: products are 2024 . targeted at

Speaker #4: the

Speaker #4: research

Speaker #4: use

Speaker #4: only

Speaker #4: or revenue was Ruo

Speaker #4: market , and include

Speaker #4: catalog and custom

Speaker #4: products

Speaker #4: . Lab

Speaker #4: essentials

Speaker #4: revenue

Speaker #4: was 8.3 million in the third

Speaker #4: quarter

Speaker #4: of 2025 .

Speaker #4: A

Speaker #4: 16% increase

Speaker #4: from

Speaker #4: 7.2 million

Speaker #4: in the third

Speaker #4: quarter

Speaker #4: of

Speaker #4: 2024 . The

Speaker #4: Lab Essentials

Speaker #4: revenue was attributable

Speaker #4: to higher

Speaker #4: average

Speaker #4: revenue per

Speaker #4: customer and

Speaker #4: to a lesser

Speaker #4: extent , a

Speaker #4: larger number of

Speaker #4: customers

Speaker #4: . Clinical

Speaker #4: solutions

Speaker #4: . Products are made

Speaker #4: according to

Speaker #4: good

Speaker #4: Manufacturing

Speaker #4: Practices or GMP

Speaker #4: quality standards , and are

Speaker #4: primarily used by our

Speaker #4: customers as

Speaker #4: components

Speaker #4: or

Speaker #4: inputs

Speaker #4: in

Speaker #4: the

Speaker #4: development and

Speaker #4: manufacture of

Speaker #4: diagnostic and

Speaker #4: therapeutic

Speaker #4: products

Speaker #4: Clinical

Speaker #4: solutions .

Speaker #4: Revenue

Speaker #4: 1.7 million in the third quarter

Speaker #2: Good day and thank you for standing by . Welcome to the Technova . Third quarter 2025 Financial Results conference call . At this time , all participants are in listen

Speaker #4: of 2025 ,

Speaker #4: a

Speaker #4: from

Speaker #4: 2.0 million in the

Speaker #4: third

Speaker #4: of 2024 .

Speaker #4: The

Speaker #4: decrease

Speaker #4: in

Speaker #4: clinical

Speaker #4: solutions

Speaker #2: only mode .

Speaker #4: revenue was attributable to

Speaker #2: speakers presentation , there will be a question and answer session . To ask a question during the for session ,

Speaker #4: average

Speaker #4: revenue per be

Speaker #4: customer

Speaker #4: , partially

Speaker #4: offset by an

Speaker #4: increased number of

Speaker #4: customers

Speaker #2: need to press star one

Speaker #2: one on your 2025 Financial telephone . You will then hear an automated message advising your hand is raised to

Speaker #4: We expect

Speaker #4: revenue per customer to increase over time as a subset of these customers ramp up their purchase volumes as they move through the phases of clinical trials .

Speaker #2: withdraw your question .

Speaker #2: Please conference

Speaker #2: press

Speaker #2: one one again . Please be

Speaker #2: advised that today's

Speaker #4: However , this metric can be affected by the addition of newer clinical solutions or

Speaker #2: conference is

Speaker #2: being speaker's

Speaker #2: recorded . presentation ,

Speaker #2: I would there will be

Speaker #2: now a question

Speaker #2: like to

Speaker #2: over

Speaker #2: first speaker

Speaker #2: today

Speaker #4: GMP catalog customers who typically order less . Just as a

Speaker #2: Vice President

Speaker #2: of star

Speaker #2: Marketing

Speaker #2: . Please go

Speaker #2: ahead

Speaker #4: larger

Speaker #4: average order revenue size

Speaker #3: Thank you . Operator . Welcome to Tech

Speaker #4: compared to lab

Speaker #3: Nova's today's third quarter 2020 earnings conference call . With

Speaker #4: Essentials

Speaker #4: , there can be more

Speaker #4: quarter to

Speaker #4: quarter

Speaker #4: revenue

Speaker #3: today's call are

Speaker #4: lumpiness in this

Speaker #3: Stephen Gunstream

Speaker #3: Technologies President

Speaker #3: and Chief

Speaker #3: Executive

Speaker #3: Officer

Speaker #4: statement highlights

Speaker #3: and your

Speaker #3: Matt Lowell

Speaker #4: gross

Speaker #4: profit for the profit would third quarter of 2025 was 3.2 million , compared to 0.1 million

Speaker #3: , chief

Speaker #3: financial

Speaker #3: officer , who will make

Speaker #3: prepared remarks and then

Speaker #3: take your , Jennifer Henry questions

Speaker #3: . As a reminder , the forward looking

Speaker #3: statements that we make

Speaker #3: during this

Speaker #4: in the third have quarter of 2024 . Gross margin for the third quarter of 2025 was 30.7% , which is up from 0.9% in

Speaker #3: including those

Speaker #3: regarding Nova's

Speaker #3: business goals and

Speaker #3: expectations for

Speaker #3: financial performance of the

Speaker #3: company ,

Speaker #3: are subject to risks and

Speaker #3: uncertainties that

Speaker #3: may President and cause

Speaker #3: actual

Speaker #3: events or results to

Speaker #3: differ

Speaker #3: . Additional

Speaker #4: the third been quarter of 2024 . The increase was primarily

Speaker #3: information concerning

Speaker #3: these officer ,

Speaker #3: risk

Speaker #3: factors make

Speaker #3: is

Speaker #3: included in the

Speaker #3: press

Speaker #3: release . The

Speaker #3: company questions issued earlier

Speaker #4: driven

Speaker #3: today ,

Speaker #4: 2.8 million of

Speaker #3: and they

Speaker #3: are more

Speaker #3: fully looking described

Speaker #4: non-recurring 29.8% , and non-cash

Speaker #3: in the

Speaker #3: company's

Speaker #3: various filings with

Speaker #4: charges

Speaker #3: the call ,

Speaker #3: SEC

Speaker #3: . Today's

Speaker #4: during the third

Speaker #4: quarter of

Speaker #4: 2024 related to the

Speaker #3: comments

Speaker #3: company's

Speaker #4: disposal of expired

Speaker #3: current company , views ,

Speaker #3: which

Speaker #3: could

Speaker #3: change as a result of new risks

Speaker #4: inventory and write

Speaker #3: information ,

Speaker #4: down of excess

Speaker #3: future actual

Speaker #4: inventory , excluding those non-recurring and non-cash charges , the to

Speaker #3: events or other

Speaker #3: factors .

Speaker #3: And the .

Speaker #3: company does

Speaker #3: not information

Speaker #3: obligate or

Speaker #3: commit itself to

Speaker #3: update its

Speaker #4: would

Speaker #3: forward included in the

Speaker #4: have Operating

Speaker #4: been expenses 2.9 million and gross

Speaker #3: looking press

Speaker #3: statements

Speaker #3: , except as

Speaker #3: required issued

Speaker #4: margin would have

Speaker #3: law

Speaker #3: .

Speaker #4: been

Speaker #3: The fully

Speaker #3: company's described

Speaker #3: management

Speaker #4: respectively ,

Speaker #3: that in addition to GAAP

Speaker #4: in the third

Speaker #4: quarter

Speaker #3: results , non-GAAP

Speaker #4: 2024 , the

Speaker #3: financial

Speaker #3: measures

Speaker #3: can

Speaker #3: provide

Speaker #3: meaningful

Speaker #4: improvement in gross

Speaker #3: insight

Speaker #3: when evaluating

Speaker #4: margin

Speaker #4: from

Speaker #3: the views ,

Speaker #3: company's financial

Speaker #3: performance and the

Speaker #3: effectiveness of its business

Speaker #3: strategies

Speaker #3: . We

Speaker #4: by higher

Speaker #3: will therefore use

Speaker #4: revenue

Speaker #3: non-GAAP

Speaker #4: .

Speaker #3: financial measures of

Speaker #3: certain of

Speaker #3: our its

Speaker #3: results during this

Speaker #4: Operating

Speaker #3: call

Speaker #3: .

Speaker #4: for the third quarter

Speaker #3: Reconciliations of GAAP to

Speaker #4: of had

Speaker #4: 2025

Speaker #3: non-GAAP .

Speaker #4: were 7.2 million ,

Speaker #3: financial

Speaker #3: measures

Speaker #3: are management

Speaker #3: included in the press release

Speaker #4: compared

Speaker #4: to 7.5 million for the third

Speaker #3: that we

Speaker #3: issued this

Speaker #3: afternoon ,

Speaker #3: which is

Speaker #3: posted financial

Speaker #3: on both Nova's

Speaker #4: quarter

Speaker #4: of

Speaker #4: 2024 . The

Speaker #3: and the SEC's

Speaker #3: .

Speaker #4: decrease

Speaker #3: non-GAAP

Speaker #3: measures should

Speaker #4: was

Speaker #4: driven by an overall net

Speaker #3: always be effectiveness of its

Speaker #3: considered only as a

Speaker #4: reduction

Speaker #3: supplement strategies to ,

Speaker #4: in general , and

Speaker #4: administrative

Speaker #3: and not

Speaker #3: as a

Speaker #4: spending

Speaker #3: substitute for

Speaker #3: or

Speaker #3: as

Speaker #4: at the

Speaker #3: superior

Speaker #4: end of

Speaker #4: the third 7.6 million , or quarter of 2025 ,

Speaker #3: to

Speaker #3: financial

Speaker #3: measures call prepared in

Speaker #3: accordance with GAAP

Speaker #4: we

Speaker #4: had

Speaker #4: 161 total

Speaker #3: . The

Speaker #3: non-GAAP non-GAAP

Speaker #4: associates

Speaker #3: financial measures in this

Speaker #4: , compared

Speaker #4: to 165 a year

Speaker #3: presentation may differ from measures are

Speaker #3: similarly

Speaker #4: earlier

Speaker #3: named

Speaker #3: non-GAAP

Speaker #3: financial posted on measures

Speaker #4: Net loss

Speaker #3: used by other

Speaker #4: for the third quarter

Speaker #3: companies

Speaker #3: . Please also be advised

Speaker #4: of

Speaker #4: 2025

Speaker #4: was 4.3 million , or

Speaker #3: that the , non-GAAP company

Speaker #3: has posted a Financial

Speaker #3: supplemental

Speaker #4: $0.08 per

Speaker #3: slide deck to accompany

Speaker #4: diluted share , compared to

Speaker #3: today's only as a prepared

Speaker #3: remarks .

Speaker #3: It can be

Speaker #4: a

Speaker #4: net loss

Speaker #3: accessed

Speaker #4: of 7.6 million , or

Speaker #3: on the for

Speaker #3: Investor

Speaker #3: Relations

Speaker #3: section of

Speaker #3: Nova's , financial

Speaker #4: $0.15 per diluted

Speaker #3: website . measures

Speaker #3: And now prepared in

Speaker #4: share ,

Speaker #3: I will turn the

Speaker #4: the third quarter of 2020 . For

Speaker #3: to Stephen

Speaker #3: .

Speaker #3: Thank you may differ

Speaker #4: adjusted

Speaker #3: Jen . from

Speaker #4: EBITDA ,

Speaker #4: Good

Speaker #4: a

Speaker #4: thank you

Speaker #4: non-GAAP

Speaker #4: everyone for joining

Speaker #4: measure was

Speaker #4: us for our

Speaker #4: -1.6 million for the

Speaker #4: third companies

Speaker #4: quarter

Speaker #4: 2020 Please

Speaker #4: third

Speaker #4: quarter

Speaker #4: earnings

Speaker #4: call advised

Speaker #4: 2025 , compared

Speaker #4: . We were

Speaker #4: encouraged

Speaker #4: to

Speaker #4: by our accompany

Speaker #4: third quarter

Speaker #4: results .

Speaker #4: for the

Speaker #4: third

Speaker #4: Revenue remarks .

Speaker #4: increased

Speaker #4: of 2020 . For excluding the

Speaker #4: by

Speaker #4: 9% compared to the same period

Speaker #4: impact of

Speaker #4: last

Speaker #4: year , Tech Nova's

Speaker #4: the

Speaker #4: 2.8 million charge

Speaker #4: making it the fifth

Speaker #4: consecutive

Speaker #4: related to

Speaker #4: inventory

Speaker #4: quarter of year over year

Speaker #4: .

Speaker #4: growth over to

Speaker #4: . That growth

Speaker #4: was .

Speaker #4: Now

Speaker #4: driven by

Speaker #4: for cash flow

Speaker #4: strength in sales of our lab . Essentials products . Revenue from which grew 16% . We also

Speaker #4: and balance sheet

Speaker #4: highlights ,

Speaker #4: capital

Speaker #4: expenditures for the third

Speaker #4: quarter

Speaker #4: of 2025

Speaker #4: were

Speaker #4: 0.4 million , 2025 ,

Speaker #4: extremely well operationally .

Speaker #4: compared to 0.3 million in the third quarter of 2020 .

Speaker #4: progress We

Speaker #4: prepare

Speaker #4: for technology long term , sustainable , above

Speaker #4: free cash

Speaker #4: outflow , a

Speaker #4: market growth for long through

Speaker #4: non-GAAP measure which

Speaker #4: we report as

Speaker #4: cash used in operating

Speaker #4: investments term we've made in distributor management , purchasing , integration and price optimization . We have succeeded once

Speaker #4: activities .

Speaker #4: purchases

Speaker #4: of

Speaker #4: property , plant

Speaker #4: equipment ,

Speaker #4: was 2.4 million

Speaker #4: again in growing , sustainable , revenue , double digits in catalog products , which

Speaker #4: for the , and

Speaker #4: third

Speaker #4: of 2025 , which was the same as the third quarter of 2024 . Turning to the balance sheet , as of September 30th , 2025 , we had 22.1 million in cash .

Speaker #4: majority of our lab above Essentials revenue compared to the same period last year . We have also increased and

Speaker #4: diversified our clinical market

Speaker #4: solutions

Speaker #4: customer base ,

Speaker #4: which we

Speaker #4: believe in

Speaker #4: translate to

Speaker #4: significant , integration revenue growth

Speaker #4: Cash equivalents and short term investments and 13.2 million in total borrowings . Now , for our outlook , we are reiterating 2025 total revenue guidance of 39 million to 42 million , based on persistent softness in demand for

Speaker #4: as

Speaker #4: these optimization .

Speaker #4: therapies and

Speaker #4: diagnostics

Speaker #4: move once again

Speaker #4: towards

Speaker #4: commercialization

Speaker #4: .

Speaker #4: And catalog the next

Speaker #4: 2 to 3 years

Speaker #4: .

Speaker #4: Operationally , we

Speaker #4: execute

Speaker #4: extremely

Speaker #4: well

Speaker #4: . Key

Speaker #4: drive

Speaker #4: operating

Speaker #4: and

Speaker #4: reduce

Speaker #4: costs ,

Speaker #4: such as

Speaker #4: moving to

Speaker #4: electronic

Speaker #4: batch records

Speaker #4: , automated high

Speaker #4: our for our

Speaker #4: throughput revenue

Speaker #4: dispensing

Speaker #4: solutions .

Speaker #4: lines , and

Speaker #4: adding

Speaker #4: larger and

Speaker #4: batch size

Speaker #4: customers

Speaker #4: in

Speaker #4: capabilities towards are on track and

Speaker #4: particular ,

Speaker #4: expected to be

Speaker #4: finish

Speaker #4: operational in

Speaker #4: slightly

Speaker #4: below the

Speaker #4: 2026 . We

Speaker #4: midpoint of

Speaker #4: that continues to

Speaker #4: range

Speaker #4: .

Speaker #4: are . already seeing

Speaker #4: the

Speaker #4: results from

Speaker #4: investments through

Speaker #4: from sales

Speaker #4: of our from

Speaker #4: metrics such as on time

Speaker #4: catalog products , which

Speaker #4: represents the

Speaker #4: delivery ,

Speaker #4: majority of our

Speaker #4: which allow us to further

Speaker #4: differentiate

Speaker #4: essentials and

Speaker #4: Test Nova from other

Speaker #4: clinical solutions revenue

Speaker #4: reagent suppliers

Speaker #4: in the throughput

Speaker #4: marketplace

Speaker #4: . The progress made operationally

Speaker #4: , was up at a of mid-teens growth rate in the third quarter of 2025 . As spending on discovery work

Speaker #4: over the

Speaker #4: past

Speaker #4: couple of and years

Speaker #4: given us more

Speaker #4: confidence in our ability to

Speaker #4: continues to clinical be robust in

Speaker #4: scale in

Speaker #4: technology 2026 .

Speaker #4: to more

Speaker #4: than

Speaker #4: $200 million in annualized

Speaker #4: pockets of the

Speaker #4: market

Speaker #4: .

Speaker #4: revenue without through

Speaker #4: significant additional

Speaker #4: hand , growth was minimal from custom

Speaker #4: capital metrics

Speaker #4: investments .

Speaker #4: products , which .

Speaker #4: We also

Speaker #4: remain

Speaker #4: active in pursuing

Speaker #4: modest portion of lab

Speaker #4: in

Speaker #4: acquisitions and from other

Speaker #4: collaborations to bolster

Speaker #4: the large majority

Speaker #4: of

Speaker #4: our capabilities , reduce

Speaker #4: clinical

Speaker #4: our time to

Speaker #4: profitability ,

Speaker #4: . As the macro

Speaker #4: and

Speaker #4: accelerate

Speaker #4: remains favorable for

Speaker #4: top past couple line

Speaker #4: growth

Speaker #4: .

Speaker #4: early stage

Speaker #4: small to

Speaker #4: Now , ability

Speaker #4: I'd

Speaker #4: biopharma

Speaker #4: like to turn scale my

Speaker #4: customers

Speaker #4: attention Technova

Speaker #4: to the to more broader

Speaker #4: market .

Speaker #4: and for their

Speaker #4: clinical work in

Speaker #4: As a $200 million in

Speaker #4: reminder , we annualized

Speaker #4: do not have

Speaker #4: material

Speaker #4: exposure to the

Speaker #4: . As

Speaker #4: geopolitical

Speaker #4: to next

Speaker #4: environment ,

Speaker #4: year , we

Speaker #4: given that

Speaker #4: modest growth in

Speaker #4: are

Speaker #4: predominantly

Speaker #4: biopharma

Speaker #4: in the United

Speaker #4: States ,

Speaker #4: only

Speaker #4: representing about

Speaker #4: about $1 million annually of our

Speaker #4: 25% of our total During the

Speaker #4: raw capabilities , materials ,

Speaker #4: revenue

Speaker #4: we

Speaker #4: estimate , are

Speaker #4: and low double

Speaker #4: imported

Speaker #4: digit

Speaker #4: in accelerate

Speaker #4: in the

Speaker #4: remaining

Speaker #4: less

Speaker #4: than 4% of 2024 . Revenue

Speaker #4: 75% of total

Speaker #4: revenue ,

Speaker #4: revenue , which is the not as

Speaker #4: was . directly

Speaker #4: attributable

Speaker #4: impacted by the

Speaker #4: government

Speaker #4: weak biotech funding

Speaker #4: research

Speaker #4: institutes

Speaker #4: environment

Speaker #4: and academic institutions . Nonetheless , we do have exposure to changes in biotech funding levels because approximately 25% of our total revenue is derived from purchases of custom products by biopharma customers , most of which are supporting therapies and preclinical or early stage clinical trials .

Speaker #4: . Gross

Speaker #4: margin was

Speaker #4: up over the

Speaker #4: prior

Speaker #4: year

Speaker #4: quarter , and down

Speaker #4: sequentially business

Speaker #4: as , we still

Speaker #4: we

Speaker #4: time

Speaker #4: . During the

Speaker #4: cost

Speaker #4: that normally

Speaker #4: skewed favorably . Whereas this quarter , the effect was more balanced

Speaker #4: , our 2025 remains

Speaker #4: gross margins are very

Speaker #4: sensitive to

Speaker #4: catalog products purchased by customers in this segment remains steady and growing in 2025 , we have seen continued delays in larger purchases of custom products .

Speaker #4: to the size of our business . We still believe that over longer periods of time

Speaker #4: , approximately believe we 70% of incremental revenue will flow through

Speaker #4: profit .

Speaker #4: Our gross

Speaker #4: margin target for fiscal year

Speaker #4: 2025 remains in the

Speaker #4: low annualized 30s .

Speaker #4: the biotech funding environment or

Speaker #4: Although we ended the third quarter below target spending levels , partly due to timing considerations . We continue to expect operating expenses of at least 8 million in the fourth quarter , allowing us to moderately increase our investment in

Speaker #4: trials of the

Speaker #4: expect only

Speaker #4: modest in 2025 ,

Speaker #4: improvement . In this end

Speaker #4: market . In continued

Speaker #4: 2026 .

Speaker #4: Fortunately , the .

Speaker #4: other

Speaker #4: 75% of our

Speaker #4: revenue from

Speaker #4: sales of

Speaker #4: catalog products

Speaker #4: sales and marketing

Speaker #4: and

Speaker #4: and custom we see products

Speaker #4: year . Positioning ourselves for the market's broader recovery at these spending levels , we continue to believe we will become adjusted EBITDA positive in the range

Speaker #4: across all

Speaker #4: other market

Speaker #4: has grown in the low

Speaker #4: double

Speaker #4: for the

Speaker #4: year to advancement through

Speaker #4: date period .

Speaker #4: And we are seeing

Speaker #4: an uptick

Speaker #4: in demand for

Speaker #4: custom

Speaker #4: in these

Speaker #4: other

Speaker #4: segments of .

Speaker #4: the market market , such as animal

Speaker #4: health , in life science

Speaker #4: of 50 to 55 million in expect free annualized

Speaker #4: tools , 2026 . and

Speaker #4: diagnostics

Speaker #4: together , we

Speaker #4: remain sales of very

Speaker #4: confident in our

Speaker #4: The

Speaker #4: company

Speaker #4: strategy and

Speaker #4: continues to

Speaker #4: expect free

Speaker #4: our

Speaker #4: optimistic for

Speaker #4: cash outflow

Speaker #4: the long

Speaker #4: term

Speaker #4: of less than

Speaker #4: .

Speaker #4: 12 million for the

Speaker #4: First , we

Speaker #4: have a digits

Speaker #4: full

Speaker #4: year 2025 , as we

Speaker #4: foundational business that

Speaker #4: is period .

Speaker #4: predictable and

Speaker #4: growing , that

Speaker #4: support the company until the biopharma market

Speaker #4: support the company until the biopharma market returns biopharma to historical growth rates

Speaker #4: . Second , market we have demonstrated our ability to execute operationally

Speaker #4: and returns commercially and finally , we continue to attract and onboard new clinical solutions customers , which we believe in combination with our lab Essentials products , will allow us to achieve

Speaker #4: .

Speaker #3: Thanks ,

Speaker #3: Matt this

Speaker #3: . We believe

Speaker #4: a sustainable to

Speaker #3: term

Speaker #3: outlook for our end

Speaker #4: 20 to 25% top line

Speaker #3: markets remains

Speaker #3: positive , and

Speaker #4: growth as

Speaker #3: committed to

Speaker #3: helping our press

Speaker #4: therapies Second ,

Speaker #3: customers accelerate the

Speaker #4: and

Speaker #4: diagnostics demonstrated our migrate

Speaker #3: introduction

Speaker #4: from ability to

Speaker #4: research to

Speaker #3: of

Speaker #3: therapies

Speaker #4: commercialization .

Speaker #3: , diagnostics

Speaker #4: I will now hand the

Speaker #3: products that

Speaker #3: improve human

Speaker #4: call over to Matt

Speaker #3: health

Speaker #4: to talk

Speaker #3: . We

Speaker #4: through the

Speaker #4: financials

Speaker #3: will now take your

Speaker #4: .

Speaker #3: .

Speaker #5: Thanks ,

Speaker #5: Steven , and

Speaker #5: good customers ,

Speaker #5: afternoon ,

Speaker #5: everyone believe

Speaker #5: .

Speaker #5: Overall , we delivered

Speaker #1: At this time , we will conduct the question and answer session . As a reminder to ask a question , you will need to press star one one on your telephone and wait for your name to be announced .

Speaker #5: great financial

Speaker #5: great

Speaker #5: results for the third quarter of 2025 .

Speaker #5: As Steven

Speaker #5: noted ,

Speaker #5: revenue

Speaker #5: was

Speaker #5: 10.5 million ,

Speaker #5: a

Speaker #5: 9%

Speaker #5: increase

Speaker #5: from

Speaker #1: To withdraw your question , please

Speaker #5: in the

Speaker #5: third over to

Speaker #5: quarter Matt

Speaker #1: press star

Speaker #5: of 2020 . For .

Speaker #1: one one again . Please

Speaker #1: stand by while

Speaker #5: strong sales from the catalog through the

Speaker #1: we compile the

Speaker #1: roster .

Speaker #5: our

Speaker #5: Lab Essentials

Speaker #5: products drove our

Speaker #5: revenue growth

Speaker #5: quarter

Speaker #5: .

Speaker #5: Lab essentials products

Speaker #5: are targeted at

Speaker #5: the noted , research

Speaker #5: use only or

Speaker #5: Ruo

Speaker #5: market

Speaker #5: include both catalog and custom

Speaker #5: products

Speaker #1: The

Speaker #1: first question

Speaker #1: comes

Speaker #5: . Lab

Speaker #1: from the

Speaker #1: line

Speaker #5: revenue

Speaker #1: of

Speaker #5: 8.3 million

Speaker #1: Matt

Speaker #1: McIntosh

Speaker #5: in the third quarter

Speaker #5: of 2025 .

Speaker #1: of

Speaker #1: Inc. .

Speaker #5: A

Speaker #5: 16%

Speaker #1: Your

Speaker #1: line is conversations now

Speaker #5: increase

Speaker #1: open

Speaker #5: from 7.2 million in the third

Speaker #1: .

Speaker #5: Hey ,

Speaker #5: good

Speaker #5: afternoon

Speaker #5: quarter .

Speaker #5: . Appreciate you taking my

Speaker #5: The

Speaker #5: questions .

Speaker #5: increase

Speaker #5: Maybe just to

Speaker #5: in Lab

Speaker #5: Essentials

Speaker #5: start .

Speaker #5: attributable to

Speaker #5: Just given

Speaker #5: higher

Speaker #5: recent

Speaker #5: average both revenue per

Speaker #5: around

Speaker #5: customer and

Speaker #5: MFN ,

Speaker #5: tariffs and just

Speaker #5: to a lesser

Speaker #5: extent , a

Speaker #5: announcements around

Speaker #5: larger number

Speaker #5: of customers

Speaker #5: Onshoring

Speaker #5: capacity and pharma

Speaker #5: production

Speaker #5: . Clinical

Speaker #5: solutions

Speaker #5: . Products are made

Speaker #5: conversations trended

Speaker #5: according to good

Speaker #5: Manufacturing

Speaker #5: thus far

Speaker #5: into the

Speaker #5: Practices

Speaker #5: or

Speaker #5: GMP

Speaker #5: year

Speaker #5: ?

Speaker #5: quality

Speaker #5: standards , and are

Speaker #3: Yeah .

Speaker #3: Thanks, ramping up, Matt.

Speaker #5: primarily used by

Speaker #5: our increase in

Speaker #5: customers as

Speaker #3: I

Speaker #3: would

Speaker #5: components or

Speaker #3: say , you

Speaker #5: inputs in

Speaker #3: know ,

Speaker #5: the

Speaker #5: development and

Speaker #3: like the idea

Speaker #5: manufacture of

Speaker #3: of these leading

Speaker #3: indicators , whether it's

Speaker #5: diagnostic and

Speaker #3: biotech

Speaker #3: funding

Speaker #5: therapeutic

Speaker #3: or the MFN

Speaker #5: products . Clinical

Speaker #3: but we're not yet

Speaker #5: solutions

Speaker #5: revenue

Speaker #3: impact

Speaker #5: was

Speaker #3: from the impact customers . So I

Speaker #5: 1.7 million

Speaker #3: think there's

Speaker #5: in the third

Speaker #3: optimism

Speaker #5: quarter

Speaker #5: of 2025 ,

Speaker #3: across the

Speaker #3: .

Speaker #3: But time , the

Speaker #5: a 13% decrease

Speaker #3: actual

Speaker #3: actions of

Speaker #3: maybe

Speaker #3: purchasing nice more , ramping up

Speaker #5: from

Speaker #5: 2.0 million in the third quarter

Speaker #3: purchases , we have

Speaker #5: of

Speaker #5: 2024 .

Speaker #3: why ,

Speaker #3: you

Speaker #3: know , we've been here the

Speaker #5: The

Speaker #5: decrease in

Speaker #3: and we

Speaker #5: clinical

Speaker #3: sure that

Speaker #5: solutions

Speaker #3: we're

Speaker #3: cautious

Speaker #5: revenue was

Speaker #3: . And

Speaker #5: attributable to lower

Speaker #3: seeing that

Speaker #3: when are still these things start to

Speaker #5: average revenue

Speaker #3: happen , if they're

Speaker #5: per customer

Speaker #3: sustained for

Speaker #5: , partially

Speaker #3: an are extended

Speaker #3: period of time

Speaker #5: offset .

Speaker #5: by an

Speaker #5: increased number

Speaker #3: , we believe it'll

Speaker #3: impact this sort of the emergent

Speaker #5: of

Speaker #5: customers was

Speaker #3: therapy

Speaker #3: side . But

Speaker #5: . We

Speaker #5: expect revenue per customer to

Speaker #3: this point

Speaker #3: in moment . time , I

Speaker #5: increase over

Speaker #3: you know , we're seeing

Speaker #5: time as 13% decrease a subset of these

Speaker #3: some nice

Speaker #3: growth in the

Speaker #3: large pretty

Speaker #5: customers ramp

Speaker #5: up

Speaker #3: We're actually

Speaker #3: seeing some

Speaker #5: their

Speaker #5: purchase quarter volumes as they

Speaker #3: in some of the emerging therapeutic companies that

Speaker #5: move through

Speaker #5: the

Speaker #5: phases

Speaker #5: of

Speaker #3: have been

Speaker #5: clinical

Speaker #3: purchased

Speaker #5: trials

Speaker #3: by larger companies . But those that are

Speaker #5: . However , this metric

Speaker #3: constrained

Speaker #5: can lower

Speaker #3: by

Speaker #5: affected by the

Speaker #5: addition of newer

Speaker #3: are

Speaker #3: operating

Speaker #5: clinical

Speaker #3: in a way that

Speaker #5: solutions or

Speaker #3: they're

Speaker #5: GMP

Speaker #5: catalog customers who typically

Speaker #3: rationalizing

Speaker #3: pipeline or

Speaker #5: order .

Speaker #3: slowing Is there

Speaker #5: less

Speaker #3: things any down at the

Speaker #3: moment .

Speaker #3: So

Speaker #5: . Just as a

Speaker #5: reminder , reminder , due to the

Speaker #3: At this point in time, there...

Speaker #3: has been

Speaker #5: larger average due to the order size in clinical solutions compared to lab Essentials , there can be more quarter to quarter

Speaker #3: conversations about

Speaker #3: ramp

Speaker #3: spend

Speaker #3: their

Speaker #5: Fair

Speaker #5: enough .

Speaker #5: lumpiness in this category

Speaker #5: I'd also

Speaker #5: like to get a little bit of an

Speaker #5: update

Speaker #5: on the

Speaker #5: Ruo plus

Speaker #5: onto income in highlights gross profit for

Speaker #5: It's been ,

Speaker #5: you are not

Speaker #5: know , quite ready a

Speaker #5: little over a year since

Speaker #5: the third quarter clinical of 2025 was 3.2 million , compared

Speaker #5: the third quarter clinical of 2025 was 3.2 million , compared to 0.1 million in solutions the third quarter

Speaker #5: put into

Speaker #5: Is there

Speaker #5: on

Speaker #5: efforts are trending ? There

Speaker #5: ?

Speaker #3: Yeah , their it's an important part of our

Speaker #3: portfolio and it

Speaker #3: fills a really

Speaker #5: of 2024 .

Speaker #3: nice gap for us

Speaker #5: Gross

Speaker #5: margin for the third

Speaker #3: lot of

Speaker #5: quarter

Speaker #3: effort and

Speaker #5: of

Speaker #5: 2025

Speaker #3: investment

Speaker #3: into

Speaker #5: was 30.7% , which is up from 0.9% in the third

Speaker #3: this new

Speaker #3: facility

Speaker #3: . We have facility , but a lot of

Speaker #3: customers that want to use

Speaker #3: the new facility , but are not quite ready

Speaker #3: for GMP .

Speaker #5: quarter of 2024 . The increase was primarily driven by 2.8 million of non-recurring and non-cash charges during the third quarter of 2024 related to the disposal of expired inventory and write down

Speaker #5: quarter of 2024 . The increase was primarily driven by 2.8 million of non-recurring and non-cash charges during the third quarter of 2024 related to the disposal of expired inventory and category of excess inventory onto

Speaker #3: a great landing spot for them where they can get their products made in the facility . They get a lot more flexibility in their formulations .

Speaker #3: They get sort of an improved quality that is very similar to GMP , but not quite all the way to GMP .

Speaker #3: not the exact same as GMP , right ? So for us , it allows us to get a little bit of a price premium for using that facility , but some actually

Speaker #5: , excluding income

Speaker #5: those non-recurring and non-cash charges , the gross

Speaker #5: 2.9 million and gross margin

Speaker #3: controls

Speaker #5: would

Speaker #5: have been by

Speaker #3: around

Speaker #3: the the

Speaker #3: changes they want to make and get their products to them sooner . So this is a really nice landing spot .

Speaker #5: respectively , in the

Speaker #5: third

Speaker #5: quarter

Speaker #5: 2024 , the

Speaker #3: We're seeing customers come in here. Those will sit in. Thank you.

Speaker #5: improvement in gross margin

Speaker #5: from

Speaker #5: 29.8%

Speaker #3: lab essentials business because it's part of their research . Use only . And

Speaker #5: 30.7% was

Speaker #5: driven gross primarily by higher

Speaker #3: obviously to migrate them to GMP . And we see .

Speaker #5: revenue profit .

Speaker #3: customers

Speaker #3: sitting in that , in

Speaker #5: for the third quarter

Speaker #3: that pathway

Speaker #5: of

Speaker #5: 2025

Speaker #3: right now

Speaker #3: .

Speaker #5: were 7.2 million , 29.8% ,

Speaker #5: great to hear . I

Speaker #5: compared

Speaker #5: to 7.5 million

Speaker #5: appreciate the

Speaker #5: context . I'll leave it

Speaker #5: there

Speaker #5: .

Speaker #5: for the third

Speaker #5: quarter

Speaker #5: of

Speaker #5: 2024 . The

Speaker #5: decrease

Speaker #5: was 29.8% to driven by an

Speaker #5: overall net 30.7% was

Speaker #1: Thank you

Speaker #1: .

Speaker #5: reduction in driven general ,

Speaker #1: Our next

Speaker #5: and primarily

Speaker #5: administrative

Speaker #1: call

Speaker #5: spending at the

Speaker #1: comes

Speaker #1: from the

Speaker #1: line of

Speaker #1: Brendan

Speaker #1: Smith

Speaker #5: end of the

Speaker #5: third quarter of

Speaker #1: of TD

Speaker #5: 2025 , expenses we

Speaker #1: Cohen .

Speaker #1: Your help drive line is

Speaker #5: 161 total

Speaker #1: now open

Speaker #5: associates

Speaker #1: .

Speaker #5: to

Speaker #5: 165 a year earlier

Speaker #6: Thanks , guys for taking the

Speaker #6: Appreciate all the color

Speaker #6: on actually there are any

Speaker #6: the

Speaker #6: funding

Speaker #5: . Net loss

Speaker #6: , environment

Speaker #5: for the third quarter

Speaker #6: impact

Speaker #6: or that you're

Speaker #6: potential seeing impact into next

Speaker #5: of

Speaker #5: 2025

Speaker #6: year .

Speaker #5: was 4.3 million ,

Speaker #6: Actually just

Speaker #6: wondering if you

Speaker #6: could maybe

Speaker #5: or

Speaker #5: -$0.08 per diluted

Speaker #6: really any more

Speaker #6: color there on actually the

Speaker #5: share ,

Speaker #5: compared to

Speaker #6: expected Yeah .

Speaker #6: product

Speaker #5: a net

Speaker #5: loss

Speaker #6: could kind of come

Speaker #5: of

Speaker #6: in some of

Speaker #6: these different

Speaker #6: scenarios

Speaker #5: $0.15 per diluted

Speaker #6: that compensation . You're talking

Speaker #5: share ,

Speaker #5: for the

Speaker #6: about for the

Speaker #5: third

Speaker #5: quarter

Speaker #6: possibility of a

Speaker #5: of 2020 . For

Speaker #6: more

Speaker #6: protracted biotech

Speaker #6: slowdown

Speaker #5: adjusted EBITDA

Speaker #6: . It's

Speaker #6: wondering if there are any specific

Speaker #5: , a non-GAAP

Speaker #5: measure was .

Speaker #6: that

Speaker #5: negative one

Speaker #6: portfolio that

Speaker #5: point

Speaker #6: seeing particular

Speaker #5: 6 million for the

Speaker #6: interest in and what

Speaker #5: third quarter

Speaker #5: of 2025 ,

Speaker #6: for those into

Speaker #6: next year .

Speaker #5: compared to

Speaker #5: -2.2 million the

Speaker #3: Yeah . So ,

Speaker #3: Brendan , if you're

Speaker #5: third quarter

Speaker #5: of 2024 .

Speaker #5: Excluding the impact of the

Speaker #3: we typically

Speaker #3: the custom

Speaker #3: biopharma , is

Speaker #5: 2.8 million charge related

Speaker #3: that correct

Speaker #5: to

Speaker #5: inventory for

Speaker #3: ? And how we

Speaker #3: see that

Speaker #5: . Now , for

Speaker #3: changing

Speaker #3: time

Speaker #3: .

Speaker #3: ?

Speaker #6: More . Yeah . More

Speaker #5: cash flow and

Speaker #5: balance sheet

Speaker #6: into

Speaker #6: next year you're

Speaker #5: highlights ,

Speaker #5: capital

Speaker #6: if after is

Speaker #6: you're if you're sort of , you

Speaker #5: expenditures for the third quarter

Speaker #6: confident

Speaker #6: that

Speaker #5: of

Speaker #6: the

Speaker #5: 2025

Speaker #6: rev mix that

Speaker #5: were

Speaker #6: you're seeing now could kind

Speaker #5: 0.4 million , of

Speaker #6: of continued compensate for

Speaker #5: compared

Speaker #5: to 0.3 million in the third

Speaker #6: any

Speaker #6: potentially

Speaker #6: biotech funding slowdown , just kind

Speaker #5: quarter -2.2 million

Speaker #5: of

Speaker #5: 2020 .

Speaker #6: wondering if there

Speaker #5: For quarter

Speaker #6: are specific

Speaker #6: products within

Speaker #6: there

Speaker #5: free cash

Speaker #6: that you're next .

Speaker #5: outflow , a

Speaker #6: you know , seeing

Speaker #5: non-GAAP

Speaker #5: measure which

Speaker #6: special say interest into

Speaker #5: we report

Speaker #6: next year that

Speaker #5: as cash used in operating

Speaker #6: could help

Speaker #6: drive that

Speaker #5: activities .

Speaker #6: ?

Speaker #3: maybe I'll

Speaker #5: Plus

Speaker #5: purchases

Speaker #3: think what

Speaker #5: of property ,

Speaker #5: plant and

Speaker #3: of , you know ,

Speaker #5: equipment ,

Speaker #3: obviously entirely there

Speaker #5: was

Speaker #5: 2.4 million

Speaker #3: could

Speaker #3: be and

Speaker #3: expect some ,

Speaker #5: third quarter of

Speaker #3: continued

Speaker #5: which was the

Speaker #3: conservation

Speaker #5: same as the third quarter of

Speaker #3: of media capital

Speaker #3: and the

Speaker #5: 2024 . For Turning to

Speaker #3: biotech environment ,

Speaker #3: particularly we're around

Speaker #3: emerging markets over

Speaker #3: next . You know , I

Speaker #5: the balance sheet , as

Speaker #3: don't actually ,

Speaker #5: of

Speaker #5: September 30th ,

Speaker #3: 6 to 12 months .

Speaker #5: 2025 ,

Speaker #3: We're very

Speaker #3: fortunate

Speaker #3: that see a 75% of our business is growing

Speaker #5: we

Speaker #5: had

Speaker #5: 22.1 million in Plus cash .

Speaker #3: double increase digits .

Speaker #5: Cash

Speaker #3: And we're

Speaker #5: equivalents and

Speaker #3: actually interest seeing

Speaker #3: it

Speaker #5: short

Speaker #5: term and

Speaker #5: investments

Speaker #3: entirely across the board ,

Speaker #3: across every market

Speaker #5: 13.2 million in

Speaker #3: segment . And where

Speaker #3: actually all three of our

Speaker #3: primary

Speaker #5: total borrowings

Speaker #3: product

Speaker #3: lines have agar

Speaker #5: . Now , for our outlook , we are reiterating 2025 total revenue guidance of 39 million to 42 million , based on persistent quarter

Speaker #3: plates ,

Speaker #3: cell culture ,

Speaker #3: media

Speaker #3: and custom

Speaker #3: buffers . So

Speaker #3: we're

Speaker #3: we're

Speaker #3: pretty

Speaker #3: about

Speaker #3: that side of

Speaker #3: and how well

Speaker #3: we're increased performing

Speaker #3: there . We do

Speaker #3: see a

Speaker #3: increase in

Speaker #3: on actually the tools and

Speaker #5: clinical

Speaker #5: solutions clinical . Products from biopharma customers in particular , we now expect to finish slightly below the midpoint of that range . Revenue from

Speaker #3: we

Speaker #3: supply that , you a

Speaker #3: Number of products, know both for the...

Speaker #3: that custom

Speaker #3: into before .

Speaker #3: clinical

Speaker #3: trials

Speaker #3: . And so , you know , the

Speaker #3: combination of of having

Speaker #5: our catalog products , which represents the majority of our lab

Speaker #3: this

Speaker #3: sort

Speaker #3: of

Speaker #3: clinical

Speaker #3: customers

Speaker #3: right

Speaker #5: essentials and a Products from small portion of clinical Solutions revenue

Speaker #3: now as

Speaker #3: we go through

Speaker #3: this

Speaker #3: period really good

Speaker #3: predictable

Speaker #3: baseline

Speaker #5: , was biopharma

Speaker #5: up at a mid-teens . Growth

Speaker #3: that that is in the double

Speaker #5: rate

Speaker #3: digits .

Speaker #5: in the

Speaker #5: third

Speaker #5: quarter to of 2020 .

Speaker #3: know

Speaker #5: Five , as

Speaker #3: , that is

Speaker #3: very

Speaker #5: spending on

Speaker #3: similar

Speaker #3: to the business

Speaker #5: discovery work

Speaker #3: here

Speaker #3: We made a lot of these investments that grew

Speaker #5: be

Speaker #5: robust in certain pockets of the

Speaker #3: between 2009 and 2019 ,

Speaker #5: market . On the other hand , growth

Speaker #3: 12%. You know, we're back.

Speaker #5: was Revenue minimal

Speaker #3: to that level . If not higher at times . So we feel like we're

Speaker #5: custom

Speaker #5: products , which

Speaker #5: represents

Speaker #5: a

Speaker #5: modest lab

Speaker #5: portion of

Speaker #5: lab

Speaker #5: essentials , and the large majority portion of

Speaker #3: in a

Speaker #3: really good spot to , to to let the

Speaker #3: rest of .

Speaker #3: strategy play out on the therapeutic side . And we're

Speaker #5: solutions revenue . As the

Speaker #5: macro environment certain remains favorable for early stage small to mid-sized biopharma customers

Speaker #3: working on bringing

Speaker #3: on more of

Speaker #3: these customers in these other market

Speaker #3: segments

Speaker #3: .

Speaker #5: and for their

Speaker #5: clinical work in

Speaker #6: Got it . Makes sense . Thanks ,

Speaker #5: particular

Speaker #6: guys

Speaker #6: .

Speaker #5: As we look ahead to

Speaker #5: next represents year , we expect modest growth in

Speaker #5: custom a

Speaker #5: biopharma

Speaker #1: Thank you

Speaker #5: products essentials , and

Speaker #5: representing

Speaker #5: about

Speaker #5: 25% of our

Speaker #1: Our next

Speaker #1: question

Speaker #5: total solutions

Speaker #1: comes growth

Speaker #5: revenue revenue and low

Speaker #1: from

Speaker #5: double digit

Speaker #5: growth in the environment

Speaker #5: remaining

Speaker #1: with

Speaker #5: 75% of total

Speaker #1: William

Speaker #5: revenue , which

Speaker #1: Your line is now

Speaker #5: is not as mid-sized

Speaker #1: open

Speaker #5: impacted by the

Speaker #1: .

Speaker #5: weak biotech

Speaker #5: funding

Speaker #5: environment

Speaker #7: Good

Speaker #7: afternoon

Speaker #5: . Gross particular margin

Speaker #5: was

Speaker #5: up we look

Speaker #7: Your

Speaker #5: over the ahead

Speaker #7: on 2026 .

Speaker #5: prior year

Speaker #5: quarter and

Speaker #5: down expect

Speaker #5: sequentially as

Speaker #7: You know ,

Speaker #5: we custom

Speaker #5: explained

Speaker #7: revenue

Speaker #5: at the products time .

Speaker #7: growing , well , a could help double digits

Speaker #7: and modest growth in 25% , that seems to suggest

Speaker #5: second quarter , several

Speaker #5: cost

Speaker #5: categories that

Speaker #7: something that is around

Speaker #5: normally

Speaker #5: fluctuate skewed

Speaker #7: point . So I

Speaker #5: favorably

Speaker #7: guess

Speaker #5: . Whereas this quarter ,

Speaker #5: effect was more

Speaker #7: is that

Speaker #7: math

Speaker #7: right ? And Thanks ,

Speaker #5: balanced

Speaker #7: then on the on the clinical

Speaker #5: , our

Speaker #5: gross margins are very

Speaker #7: solution side

Speaker #5: sensitive to the effect of

Speaker #7: , you've called out a

Speaker #7: times this year the

Speaker #5: these

Speaker #5: fluctuations

Speaker #7: growth in the be number

Speaker #5: due to the

Speaker #7: of

Speaker #5: size of our

Speaker #7: I know

Speaker #7: that's a with metric you update annually ,

Speaker #5: believe that

Speaker #7: but

Speaker #5: over longer

Speaker #7: maybe

Speaker #5: periods

Speaker #5: of the

Speaker #7: if you

Speaker #5: time

Speaker #7: could help

Speaker #7: is

Speaker #5: ,

Speaker #5: approximately second quarter ,

Speaker #7: tracking new

Speaker #5: 70% of several

Speaker #7: customer earnings

Speaker #7: acquisition

Speaker #5: incremental

Speaker #5: revenue will categories flow

Speaker #7: to

Speaker #5: through to gross

Speaker #7: perhaps years

Speaker #5: profit . fluctuate

Speaker #7: and your

Speaker #7: own

Speaker #5: Our gross margin target for fiscal year

Speaker #7: expectations this

Speaker #4: Yeah .

Speaker #4: Thanks ,

Speaker #4: Matt

Speaker #5: in the low

Speaker #5: 30s .

Speaker #4: . Yeah , obviously , you

Speaker #4: know , it's a little

Speaker #4: bit early to

Speaker #5: Although we ended the third quarter below target spending levels , partly due to timing considerations , we continue to expect operating expenses of at least 8 million in the fourth quarter , allowing us to

Speaker #4: be

Speaker #4: really

Speaker #4: with

Speaker #4: precision

Speaker #4: on the 2026 . And we'll

Speaker #4: certainly do

Speaker #4: that in our rest

Speaker #4: next basically call when we report year end

Speaker #4: earnings

Speaker #4: But thought it

Speaker #4: might be

Speaker #4: useful to provide

Speaker #4: some

Speaker #5: moderately increase our investment in sales and marketing compared to last year . Positioning ourselves for the market's broader

Speaker #4: high level

Speaker #4: thoughts about where

Speaker #4: we see

Speaker #4: things been today .

Speaker #4: And

Speaker #4: you're right ,

Speaker #4: kind of in couple of

Speaker #4: these we've kind of

Speaker #4: focused

Speaker #4: on

Speaker #4: two components of the business .

Speaker #5: recovery at these spending the effect of these

Speaker #4: The 25% we've been talking

Speaker #4: about in custom

Speaker #4: biopharma and

Speaker #5: continue to fluctuations due

Speaker #4: the

Speaker #5: will

Speaker #5: become to

Speaker #4: rest , seeing basically

Speaker #5: adjusted gross

Speaker #5: EBITDA positive in the range

Speaker #4: . And

Speaker #4: as

Speaker #5: of

Speaker #4: Stephen in the

Speaker #5: 50 to 55 million in

Speaker #4: his

Speaker #4: comments ,

Speaker #4: we updating that have

Speaker #5: revenue

Speaker #4: the market environment

Speaker #5: .

Speaker #4: has been

Speaker #4: relatively

Speaker #4: last couple

Speaker #5: The

Speaker #4: of

Speaker #5: company compared to

Speaker #4: quarters

Speaker #5: continues to last

Speaker #4: in that custom

Speaker #4: biopharma , or

Speaker #5: cash outflow of less than 12 million for the full year 2025 , as

Speaker #4: also known as

Speaker #4: bioprocessing

Speaker #4: in our

Speaker #4: business

Speaker #5: we have communicated revenue previously , based on reasonable assumptions about future growth and spending , plus current liquidity , we believe that we do not need to raise additional capital

Speaker #4: and

Speaker #4: we are

Speaker #4: not seeing any

Speaker #4: indicators yet

Speaker #4: that that's going to be

Speaker #4: changing in

Speaker #4: the near

Speaker #4: term . But we'll be ,

Speaker #4: of

Speaker #4: course , updating that

Speaker #4: view

Speaker #4: every quarter , and we will

Speaker #5: to . execute on

Speaker #4: have some more data points

Speaker #5: our

Speaker #5: organic

Speaker #4: next

Speaker #5: growth

Speaker #5: strategy

Speaker #4: call

Speaker #4: Obviously

Speaker #5: . With

Speaker #4: But on the other hand ,

Speaker #5: that , I will turn the call

Speaker #4: we as

Speaker #5: back

Speaker #4: just highlighted

Speaker #5: to Steven

Speaker #5: .

Speaker #5: .

Speaker #4: the rest of

Speaker #4: the business is

Speaker #4: performing really well . And and

Speaker #4: Thanks , Matt have communicated previously , . based We on believe the reasonable long term outlook assumptions for our about end future markets remains growth and positive , spending .

Speaker #4: don't see

Speaker #4: that changing

Speaker #4: the near

Speaker #4: and we are committed Plus to current helping our liquidity , customers we accelerate the believe that introduction of we do novel not need to therapies additional capital to , diagnostics and other execute products that on improve our human health organic growth .

Speaker #4: term . And overall that's a

Speaker #4: great thing development to have .

Speaker #4: The diversity

Speaker #4: in the

Speaker #4: portfolio ,

Speaker #4: to have the

Speaker #4: , you

Speaker #4: know , even

Speaker #4: though they're and

Speaker #4: working in different

Speaker #4: We will now strategy take your questions . With that , I will turn the call . back to Steven

Speaker #4: directions at the moment . But

Speaker #4: think in

Speaker #4: general , you

Speaker #4: that's

Speaker #4: kind of

Speaker #2: Thank you .

Speaker #4: the

Speaker #4: math

Speaker #2: At

Speaker #2: time , we will conduct the

Speaker #4: we

Speaker #2: question

Speaker #2: and answer session the long

Speaker #4: the moment

Speaker #2: . As

Speaker #4: . And

Speaker #2: a reminder to ask

Speaker #2: a question , you

Speaker #4: of the overall

Speaker #2: will need

Speaker #4: development

Speaker #2: to we are

Speaker #2: star one one on your

Speaker #4: of you know , the

Speaker #4: the

Speaker #2: telephone and wait

Speaker #4: clinical

Speaker #4: solutions

Speaker #2: for your

Speaker #2: name to be

Speaker #4: business , we

Speaker #2: announced novel

Speaker #2: . To

Speaker #2: withdraw

Speaker #4: been adding

Speaker #2: your and other

Speaker #2: question , please

Speaker #4: there , and we will be

Speaker #2: press star

Speaker #2: one

Speaker #2: one again .

Speaker #2: Please stand

Speaker #2: by while questions we compile the Q&A

Speaker #4: at

Speaker #4: the end

Speaker #4: of the life year kind of where

Speaker #4: those numbers

Speaker #2: roster

Speaker #4: land and

Speaker #2: . Thank you .

Speaker #4: for the year .

Speaker #4: Once we're once

Speaker #4: we're

Speaker #4: done ,

Speaker #4: we continue

Speaker #4: increases

Speaker #4: of the

Speaker #4: Although , you

Speaker #4: the as mix can sometimes

Speaker #4: change you know

Speaker #4: markets , as Stephen

Speaker #4: was pointing

Speaker #4: out , could be

Speaker #2: The first question comes

Speaker #2: from the line

Speaker #4: , you know ,

Speaker #4: some , it's

Speaker #4: differences

Speaker #2: of

Speaker #2: Matt

Speaker #4: in life

Speaker #4: sciences

Speaker #2: McIntosh of

Speaker #4: and

Speaker #2: Stephens , Q&A

Speaker #2: Inc. Your line is now open .

Speaker #4: . And

Speaker #4: course

Speaker #4: , versus Yeah I'll just biopharma , for add Matt example . that , But you know in on that either particular case , we're thing when happy to we talk about onboard those increasing I think it's customers and have them particularly as a positive statement that you know , we're increasing despite , customers with you know , significant revenue companies that potential going forward .

Speaker #6: Hey , good afternoon . Appreciate you taking my questions . Maybe just to start . Just given the recent rhetoric around MFN , pharma

Speaker #6: tariffs and

Speaker #6: just the

Speaker #6: subsequent

Speaker #6: announcements

Speaker #6: around

Speaker #6: Onshoring

Speaker #6: capacity and pharma

Speaker #6: production

Speaker #6: , how

Speaker #6: have Stephens ,

Speaker #6: customer

Speaker #6: trended

Speaker #4: But team's we'll see how we executing really finish the well . year There . But of course there's always .

Speaker #6: thus far into the

Speaker #6: second half of this

Speaker #3: Yeah I just add

Speaker #6: year

Speaker #6: ?

Speaker #3: Matt

Speaker #3: that you know on that particular thing when we talk do .

Speaker #4: Yeah . Thanks ,

Speaker #4: Matt .

Speaker #3: increasing I think

Speaker #4: Mark

Speaker #3: it's that particularly

Speaker #4: . So I would

Speaker #4: say

Speaker #3: a positive statement that we're

Speaker #4: , you the know

Speaker #3: increasing despite , you know ,

Speaker #4: , we

Speaker #4: like the rhetoric

Speaker #4: idea of these

Speaker #3: companies that within we

Speaker #4: leading indicators ,

Speaker #3: supported kind

Speaker #4: whether it's

Speaker #4: biotech the

Speaker #3: last

Speaker #3: year are really no longer in

Speaker #4: funding subsequent or the

Speaker #4: MFN results .

Speaker #3: existence in

Speaker #4: But we're not

Speaker #3: So we

Speaker #4: yet seeing

Speaker #3: have to

Speaker #3: overcome

Speaker #4: impact from the

Speaker #3: that

Speaker #4: customers . , how

Speaker #3: then add new

Speaker #4: So I have

Speaker #3: ones . So

Speaker #4: think there's customer

Speaker #4: optimism across the

Speaker #3: I feel like the teams

Speaker #4: board . But

Speaker #3: there . But of course there's always

Speaker #4: the

Speaker #4: actual second half of this

Speaker #4: actions of maybe purchasing more ,

Speaker #3: more we can do .

Speaker #3: of year

Speaker #3: we'll give you guys

Speaker #4: purchases , we have not yet seen , which

Speaker #3: a

Speaker #3: update on that

Speaker #4: is So

Speaker #4: why ,

Speaker #4: you know , we've been here

Speaker #3: .

Speaker #8: Okay . And obviously we're now . a

Speaker #4: before and we

Speaker #4: want to make sure

Speaker #4: that we're we

Speaker #4: cautious and

Speaker #7: You know ,

Speaker #7: within kind of

Speaker #4: seeing that ,

Speaker #4: you know , when these

Speaker #4: things start

Speaker #7: new

Speaker #4: to happen , if they're sustained

Speaker #7: modality

Speaker #7: world

Speaker #4: for an extended period of

Speaker #4: time results ,

Speaker #7: , you know ,

Speaker #7: gene armat , therapy ,

Speaker #4: , we believe

Speaker #4: it will seeing the

Speaker #7: call it like

Speaker #7: a just kind of a grab

Speaker #4: this

Speaker #7: bag within your of

Speaker #4: sort of the emergent

Speaker #4: therapy side .

Speaker #7: clinical updates throughout the

Speaker #4: But at

Speaker #4: this point board in

Speaker #7: year ,

Speaker #7: some

Speaker #7: quite positive , particularly

Speaker #4: I

Speaker #4: would

Speaker #4: say , you know , we're seeing some

Speaker #7: in some subgroups recent

Speaker #4: growth in the large

Speaker #4: pharma .

Speaker #7: therapy

Speaker #7: indications , some perhaps more

Speaker #4: We're actually not

Speaker #4: seeing some yet seen ,

Speaker #4: seeing some yet seen , nice which is

Speaker #4: growth in some of

Speaker #4: emerging

Speaker #4: therapeutic before

Speaker #4: companies

Speaker #7: And obviously

Speaker #4: that have want to make

Speaker #4: been

Speaker #4: purchased by

Speaker #7: we're now

Speaker #4: larger companies .

Speaker #7: a bit a year or so into some of the fast

Speaker #4: But those that

Speaker #4: constrained by

Speaker #4: capital

Speaker #7: efforts , whether

Speaker #4: operating

Speaker #7: it's fast track

Speaker #4: in a way that they're

Speaker #4: they're

Speaker #7: it might

Speaker #7: be ,

Speaker #7: just

Speaker #4: rationalizing pipeline

Speaker #7: group . What's

Speaker #4: or slowing

Speaker #4: things

Speaker #4: down at the at

Speaker #7: your

Speaker #4: So

Speaker #4: at would say , this point

Speaker #4: in time

Speaker #4: , that has been

Speaker #7: subgroups

Speaker #4: limited

Speaker #7: , and do

Speaker #4: . Conversations pharma .

Speaker #7: you have

Speaker #4: about

Speaker #4: ramp up

Speaker #4: and spend nice

Speaker #4: their growth

Speaker #4: .

Speaker #7: have an opportunity

Speaker #7: to

Speaker #7: participate in these , in

Speaker #6: Okay . Fair

Speaker #7: these programs , and

Speaker #6: enough .

Speaker #7: how has that

Speaker #7: affected

Speaker #6: I'd

Speaker #7: either

Speaker #6: also like to still

Speaker #7: their 48 , demand or how they're

Speaker #6: get a little

Speaker #6: bit of an

Speaker #7: working with you

Speaker #6: update on capital the

Speaker #6: rules

Speaker #6: initiative .

Speaker #7: ?

Speaker #3: Yeah , I think it's

Speaker #6: It's

Speaker #3: also fair to say it's been a

Speaker #6: been , you

Speaker #6: know , they're call it a little over a year since that's been

Speaker #3: for us where we have some that

Speaker #3: have done

Speaker #3: quite well

Speaker #6: put into

Speaker #6: place . the

Speaker #3: participating in some

Speaker #6: update

Speaker #6: on how the

Speaker #6: efforts are trending ?

Speaker #3: of those programs

Speaker #6: There at

Speaker #3: and some

Speaker #6: ?

Speaker #3: that that we had are , are ,

Speaker #4: Yeah ,

Speaker #4: it's an pretty

Speaker #3: are really

Speaker #4: important limited part of our

Speaker #3: constrained . Recently

Speaker #4: portfolio and

Speaker #4: it

Speaker #4: fills up and

Speaker #4: a really

Speaker #4: nice gap for us in

Speaker #3: . I know at the

Speaker #3: end

Speaker #3: of

Speaker #4: That, you know.

Speaker #4: we put a Okay .

Speaker #4: lot

Speaker #4: of effort and investment into this

Speaker #3: did

Speaker #3: talk about the number

Speaker #3: of clinical

Speaker #3: with 48 ,

Speaker #4: new

Speaker #4: facility .

Speaker #3: of have

Speaker #3: which

Speaker #3: 39 were and biopharma

Speaker #4: We have a lot

Speaker #4: of customers

Speaker #4: that want

Speaker #4: to use the new initiative . facility but

Speaker #3: . Of those , 39 that were biopharma related ,

Speaker #4: for

Speaker #4: GMP .

Speaker #3: 23 were selling gene

Speaker #4: And that's

Speaker #4: it's a great been

Speaker #4: landing spot

Speaker #4: for them place .

Speaker #4: where they

Speaker #4: can get their any update

Speaker #3: gives you the idea

Speaker #4: products

Speaker #4: made in the how the

Speaker #4: facility . They get a lot more flexibility in

Speaker #3: exposure that we

Speaker #3: had at the end of 2024 . I

Speaker #4: formulations . They get

Speaker #3: don't think it's changed therapy drastically . Matt . But I think there are some there

Speaker #4: sort of an

Speaker #4: improved

Speaker #4: quality that is

Speaker #4: very in that

Speaker #4: similar to we GMP ,

Speaker #4: but put a not

Speaker #4: quite all the way

Speaker #3: that are

Speaker #3: later

Speaker #4: to

Speaker #3: stage that

Speaker #4: GMP .

Speaker #3: are

Speaker #3: actually executing

Speaker #4: At a

Speaker #4: price that's not the exact same as GMP , right ? So for us , it allows us to get a little bit of a price premium for using that

Speaker #3: the plan . There's some

Speaker #3: that have

Speaker #3: been acquired

Speaker #3: and

Speaker #3: and

Speaker #3: are kind of

Speaker #3: the , you

Speaker #3: new know ,

Speaker #3: .

Speaker #3: Party is

Speaker #4: not

Speaker #4: actually

Speaker #3: actually running

Speaker #3: those and executing

Speaker #4: committing them

Speaker #3: those . And there's some

Speaker #4: to

Speaker #4: some And it's

Speaker #3: there

Speaker #3: that , you know , I

Speaker #4: more controls around the the changes they want to make and get their products to them

Speaker #3: would say they're more

Speaker #3: sensitive or more specifically an

Speaker #3: mRNA

Speaker #3: the sort of

Speaker #4: sooner . So committing this is a really nice landing spot .

Speaker #3: sensitive

Speaker #3: gene therapy areas that have been both

Speaker #4: We're seeing them to customers come in there . Those will sit in that lab essentials business because it's part of their research . Use only .

Speaker #3: good

Speaker #3: , positive and

Speaker #3: negative

Speaker #3: over the one for me past , past year . So we're kind of , you

Speaker #4: And

Speaker #4: the goal some there is obviously to migrate them to GMP . And we

Speaker #3: know , as a company , gross

Speaker #3: you know , our specialty

Speaker #3: is making these

Speaker #4: see a lot some of customers actually sitting in

Speaker #3: custom small

Speaker #3: batches of reagents

Speaker #4: that , in that more pathway

Speaker #3: not

Speaker #4: right

Speaker #4: now

Speaker #4: .

Speaker #3: to

Speaker #3: therapeutic .

Speaker #3: We're kind of margin participating in all sides of that market , if that

Speaker #6: It's great to hear . I appreciate the context . I'll leave it there .

Speaker #3: makes improvement sense

Speaker #7: Just the the last

Speaker #7: one for me of the , gross

Speaker #7: margins year projects you to date

Speaker #2: you

Speaker #7: up about 600 basis

Speaker #2: Our next call

Speaker #7: points . terms of go And that's despite clinical solutions being flattish , slightly

Speaker #2: comes a lot of from the line of Brendan Smith of

Speaker #2: TD

Speaker #2: Cohen . actually Your

Speaker #2: line is now

Speaker #2: open

Speaker #7: down forward year to date . So large scale driven

Speaker #2: .

Speaker #7: Great . Thanks , guys ,

Speaker #7: for taking That's

Speaker #7: the

Speaker #7: questions .

Speaker #7: you

Speaker #7: Appreciate

Speaker #7: referenced Matt , a number

Speaker #7: all the color on . Actually the funding , environment ,

Speaker #7: of I guess

Speaker #7: impact and potential impact into next year . Actually just wondering if you could maybe give really

Speaker #7: completed

Speaker #7: and process cost , and planned projects continue to efficiency . I

Speaker #7: any more color there on

Speaker #7: know scale is a big low piece . Is that kind of the right gross margin improvement trajectory to think about or some

Speaker #7: actually the

Speaker #7: expected

Speaker #7: product

Speaker #7: mix

Speaker #7: that could

Speaker #7: kind of come in some

Speaker #7: these

Speaker #7: different scenarios

Speaker #7: that might

Speaker #7: of the projects variable you reference more or less impactful in terms of go forward ?

Speaker #7: that

Speaker #7: compensation . You're talking about for the possibility of a more

Speaker #7: protracted

Speaker #7: biotech Great .

Speaker #7: slowdown

Speaker #7: . It's questions really just

Speaker #7: wondering if .

Speaker #4: Yeah , I think thank you for

Speaker #7: specific

Speaker #7: products

Speaker #7: within that

Speaker #7: portfolio

Speaker #7: particular interest

Speaker #4: highlighting those initiatives . cost Matt . We are

Speaker #7: in and what maybe your

Speaker #7: expectations

Speaker #7: are for

Speaker #7: those into next

Speaker #7: year . give

Speaker #4: working

Speaker #7: Thanks

Speaker #4: on a lot of

Speaker #7: .

Speaker #4: things ,

Speaker #4: things already profile that

Speaker #4: So , if you're asking

Speaker #4: things we're

Speaker #4: still working .

Speaker #4: about like ,

Speaker #4: on for

Speaker #4: what type of mix that

Speaker #4: next year

Speaker #4: product product

Speaker #4: mix we

Speaker #4: . I would say , you know ,

Speaker #4: typically

Speaker #4: sell into the

Speaker #4: custom that might biopharma ,

Speaker #4: key

Speaker #4: is that help

Speaker #4: correct drive

Speaker #4: for

Speaker #4: margin projects performance

Speaker #4: ? And how

Speaker #4: we see that

Speaker #4: changing over

Speaker #4: time

Speaker #4: . ?

Speaker #4: multiple

Speaker #7: More . Yeah .

Speaker #7: More

Speaker #4: just in

Speaker #7: specifically like

Speaker #4: single

Speaker #7: into just next year

Speaker #4: quarter

Speaker #7: if you're if your

Speaker #4: this

Speaker #7: confident

Speaker #7: that

Speaker #4: know , high fixed cost , low

Speaker #7: you know you're

Speaker #7: the

Speaker #7: rev

Speaker #7: mix maybe your that you're

Speaker #4: variable piece cost

Speaker #7: seeing expectations are now could

Speaker #7: kind of

Speaker #7: compensate

Speaker #4: mix in our

Speaker #7: for Thanks any potentially

Speaker #4: cost

Speaker #7: protracted .

Speaker #7: biotech

Speaker #4: that we

Speaker #7: funding

Speaker #4: have

Speaker #7: slowdown , just asking about

Speaker #7: kind of like , what

Speaker #4: , where again , we've

Speaker #7: wondering if type of there are specific

Speaker #7: products product mix within

Speaker #4: 70% of incremental

Speaker #7: there

Speaker #7: that you're sell into

Speaker #7: kind of , you

Speaker #7: know ,

Speaker #4: revenue flowing

Speaker #7: seeing special interest

Speaker #4: through the

Speaker #7: into

Speaker #4: projects

Speaker #7: next year

Speaker #7: that could help

Speaker #7: drive over

Speaker #7: that

Speaker #7: ?

Speaker #4: . You know ,

Speaker #4: Yeah , maybe

Speaker #4: we'll

Speaker #4: I'll think I

Speaker #4: we'll

Speaker #4: change that about a little

Speaker #4: think what specifically like

Speaker #4: bit . But cash , I would

Speaker #4: say overall that 70% of cash

Speaker #4: know , obviously

Speaker #4: is going to be still

Speaker #4: there could

Speaker #4: thematically the

Speaker #4: be and we

Speaker #4: expect some ,

Speaker #4: some

Speaker #4: piece

Speaker #4: . So

Speaker #4: conservation

Speaker #4: of

Speaker #4: capital

Speaker #4: as you can see though , from quarter to quarter , there is variation against that 70% . I would

Speaker #4: in protracted the

Speaker #4: biotech

Speaker #4: environment of

Speaker #4: , particularly around

Speaker #4: emerging markets

Speaker #4: over the

Speaker #4: You know ,

Speaker #4: I don't kind of , know ,

Speaker #4: say that the 70% is production .

Speaker #4: 6 to 12 months .

Speaker #4: We're very

Speaker #4: most realizable in the when we talk about cash , 70% of cash dropping through , sometimes due to other types of

Speaker #4: fortunate

Speaker #4: that 75% of our business

Speaker #4: is Yeah , growing

Speaker #4: double

Speaker #4: digits . And we're think I

Speaker #4: actually

Speaker #4: seeing you're after

Speaker #4: it is almost

Speaker #4: across the

Speaker #4: every

Speaker #4: market

Speaker #4: segment . And we

Speaker #4: actually all

Speaker #4: three of our primary some product lines of agar

Speaker #4: accounting But

Speaker #4: for I

Speaker #4: plates , cell culture ,

Speaker #4: inventory

Speaker #4: and

Speaker #4: and production , we can see

Speaker #4: buffers . So

Speaker #4: some of the

Speaker #4: variations that

Speaker #4: we've seen . This quarter . And the

Speaker #4: we're pretty

Speaker #4: excited

Speaker #4: about the

Speaker #4: the that

Speaker #4: side of the know , business and how

Speaker #4: last quarter . As two examples in each way . But I think I think overall , we still have

Speaker #4: well we're say performing

Speaker #4: there .

Speaker #4: We do

Speaker #4: a very high fixed

Speaker #4: in

Speaker #4: on

Speaker #4: actually the

Speaker #4: tools and almost diagnostics

Speaker #4: and

Speaker #4: side

Speaker #4: and that is going to allow us to continue

Speaker #4: we

Speaker #4: supply a

Speaker #4: driving Reif strong

Speaker #4: performance into

Speaker #4: number of

Speaker #4: products , both for

Speaker #4: next Craigholme year ,

Speaker #4: the discovery

Speaker #4: , but also in

Speaker #4: growth that

Speaker #4: that

Speaker #4: expecting

Speaker #4: into clinical

Speaker #4: . Hello .

Speaker #4: trials . And

Speaker #4: so ,

Speaker #7: Okay .

Speaker #4: you know ,

Speaker #7: Thank

Speaker #4: the

Speaker #4: combination excited

Speaker #7: you

Speaker #7: .

Speaker #4: of

Speaker #4: of actually

Speaker #4: having the

Speaker #4: this

Speaker #4: sort the

Speaker #4: of business

Speaker #4: number of clinical

Speaker #4: customers

Speaker #4: right now as we go through this

Speaker #4: period

Speaker #1: you . Our

Speaker #4: with interest this

Speaker #1: next

Speaker #1: call Thank

Speaker #4: predictable

Speaker #1: comes from the line

Speaker #4: baseline growth diagnostics

Speaker #4: that side that is in the double

Speaker #4: digits . And I where will say

Speaker #1: Reif Korman with

Speaker #4: , that is very

Speaker #4: similar to discovery but the

Speaker #4: business that also in was here

Speaker #1: . Your line is

Speaker #1: now

Speaker #1: open

Speaker #4: We made a lot of these

Speaker #1: .

Speaker #4: investments that

Speaker #4: grew

Speaker #4: between 2009 and 2019 ,

Speaker #4: 12% ,

Speaker #9: taking the question .

Speaker #9: You talked are about process

Speaker #4: you

Speaker #4: know ,

Speaker #9: improvements , taking

Speaker #4: we're we're

Speaker #4: back to that increased

Speaker #9: effect

Speaker #9: in we're

Speaker #4: level . number of If

Speaker #4: not

Speaker #9: 26 . Are there

Speaker #4: higher at times .

Speaker #9: any other

Speaker #4: So

Speaker #9: areas

Speaker #4: we

Speaker #4: feel like we're in a

Speaker #9: looking to

Speaker #4: spot

Speaker #9: drive ? More

Speaker #4: to , with to to

Speaker #9: efficiencies ? Thank you

Speaker #4: let this the rest

Speaker #4: of our

Speaker #4: strategy

Speaker #4: play out on growth , the

Speaker #4: therapeutic

Speaker #4: side .

Speaker #9: .

Speaker #3: Yeah ,

Speaker #3: of course . I mean this

Speaker #4: And And I will

Speaker #4: we're say

Speaker #3: constant theme

Speaker #4: working that , you

Speaker #4: on bringing

Speaker #3: here

Speaker #4: on more

Speaker #4: of

Speaker #4: these

Speaker #3: You know , since

Speaker #4: customers in these

Speaker #4: other that was

Speaker #3: since we

Speaker #4: market

Speaker #3: started on

Speaker #4: segments before .

Speaker #4: .

Speaker #3: journey about five years

Speaker #3: ago , we map

Speaker #3: these

Speaker #7: Got it . Makes

Speaker #3: processes that we felt

Speaker #7: sense . Thanks , guys

Speaker #3: like

Speaker #7: .

Speaker #3: , are

Speaker #3: inefficient

Speaker #3: we're we've put the

Speaker #3: it

Speaker #2: Thank

Speaker #2: you

Speaker #3: really

Speaker #3: track

Speaker #3: and

Speaker #3: identify those , those

Speaker #2: Our next

Speaker #2: question comes from the line of our

Speaker #3: areas . So

Speaker #2: Matthew

Speaker #2: Leroux

Speaker #3: looking at

Speaker #2: with

Speaker #3: Now

Speaker #3: there's there's a couple of different kinds . Right .

Speaker #2: William Blair . Your line is now

Speaker #3: So

Speaker #3: on the

Speaker #3: operational

Speaker #2: open

Speaker #2: .

Speaker #3: side

Speaker #3: at labor and direct

Speaker #3: labor

Speaker #8: Good afternoon

Speaker #3: But of course if we can get more

Speaker #8: . Matt . Your

Speaker #8: comments on 2026 . You know , if you've got

Speaker #3: the same

Speaker #3: fixed

Speaker #3: drives a lot of a lot to the

Speaker #8: 75% of the revenue growing with double digits

Speaker #3: bottom

Speaker #3: line

Speaker #3: and will

Speaker #8: and .

Speaker #8: modest

Speaker #8: in

Speaker #8: 25% , that

Speaker #3: same number of , say

Speaker #8: seems to the line

Speaker #3: , headcount as

Speaker #8: suggest of

Speaker #8: something Matthew around

Speaker #8: 10% as a starting Leroux point . So

Speaker #3: we ramp

Speaker #3: up in operations .

Speaker #3: up in operations . revenue But then . And in

Speaker #3: fact ,

Speaker #8: I

Speaker #8: guess

Speaker #3: you

Speaker #3: know ,

Speaker #3: you heard in the in the transcript , we have 161 employees at the end of Q3 . You know , there was a time where we actually over 300 with a similar revenue amount .

Speaker #8: , is

Speaker #8: that math ? Right . And then on the on the

Speaker #8: clinical solution

Speaker #8: side ,

Speaker #8: you've called out a couple

Speaker #8: times this Matt .

Speaker #8: year the growth in

Speaker #8: the number comments of

Speaker #8: customers . I know that's a

Speaker #3: So , you know , significant work has gone into driving efficiency across the board . And we won't stop that as we go forward .

Speaker #8: metric you

Speaker #8: update if you've annually ,

Speaker #8: but got

Speaker #8: maybe just if you 75% of the

Speaker #8: us how

Speaker #8: tracking new customer acquisition to

Speaker #3: So , you know , there's efficiency in the operations , but then there's efficiency in all the other supporting

Speaker #8: perhaps 10% as a years

Speaker #8: past starting and

Speaker #8: your own

Speaker #8: expectations this year .

Speaker #5: Yeah .

Speaker #3: So a lot of a

Speaker #5: Matt

Speaker #3: lot of people

Speaker #5: . Yeah

Speaker #3: here

Speaker #5: , obviously , you know , it's a little

Speaker #3: , a can lot of

Speaker #5: bit

Speaker #5: early to couple

Speaker #3: processes

Speaker #5: really

Speaker #3: being

Speaker #5: commenting customers .

Speaker #3: optimized

Speaker #3: around One is how do

Speaker #3: metrics . And not

Speaker #5: precision on 2026 .

Speaker #3: even

Speaker #3: rolls all

Speaker #5: And we'll

Speaker #3: the way to the and

Speaker #5: certainly do

Speaker #3: commercial side . continue that Right . How do

Speaker #5: that in just

Speaker #5: our next

Speaker #5: call

Speaker #3: we do going more with the same number of

Speaker #5: when we

Speaker #5: report year end

Speaker #3: people

Speaker #3: ? And ,

Speaker #5: . But

Speaker #3: so , you

Speaker #5: thought

Speaker #5: it might be relative

Speaker #3: know , it's just

Speaker #5: useful to

Speaker #5: provide

Speaker #3: a mantra

Speaker #5: some past

Speaker #3: here more than

Speaker #5: high level

Speaker #3: else .

Speaker #5: thoughts

Speaker #5: about where

Speaker #5: we see year things today . And

Speaker #3: probably

Speaker #5: you're ?

Speaker #5: right , kind of

Speaker #5: in these

Speaker #3: , you know , it would take us a long time to go

Speaker #5: we've kind of focused on

Speaker #5: these two

Speaker #3: into all the

Speaker #3: details here . , commercial But I think you

Speaker #5: components of

Speaker #5: the business .

Speaker #5: The

Speaker #3: kind of see that from a

Speaker #5: 25% we've been talking about and

Speaker #3: company . You

Speaker #5: custom commenting

Speaker #5: biopharma and

Speaker #3: we have like two major focuses .

Speaker #5: 75% of the

Speaker #3: One is how do we drive top line and continue that going forward as we wait for these customers to come all the way through the therapeutic pipeline , as well as then how do we

Speaker #5: . And

Speaker #5: as

Speaker #5: Stephen .

Speaker #5: outlined

Speaker #5: in his

Speaker #5: comments , and we

Speaker #5: have

Speaker #5: the market

Speaker #5: environment has

Speaker #3: continue to

Speaker #5: relatively

Speaker #5: stable the last

Speaker #3: processes ,

Speaker #3: processes , whether the

Speaker #5: quarters

Speaker #5: in

Speaker #3: it's line of operations

Speaker #5: that custom biopharma or

Speaker #3: , commercial

Speaker #5: also known as

Speaker #3: HR , you name

Speaker #5: bioprocessing

Speaker #3: it

Speaker #3: .

Speaker #5: in our

Speaker #5: business

Speaker #9: Thank you

Speaker #5: . And

Speaker #5: we are

Speaker #5: not 75% of the

Speaker #5: any strong

Speaker #5: indicators yet that that's going to be changing

Speaker #5: near

Speaker #5: term . outlined in

Speaker #5: But we'll be , of course ,

Speaker #5: view

Speaker #5: every quarter ,

Speaker #1: Thank

Speaker #5: and we will

Speaker #1: you . Our next

Speaker #5: have some

Speaker #5: more stable the

Speaker #5: data points

Speaker #1: question comes

Speaker #5: here . By

Speaker #5: the time of our next

Speaker #1: from the recovery line

Speaker #5: call

Speaker #1: of Mark

Speaker #5: . Obviously

Speaker #5: . But on the other hand ,

Speaker #1: of

Speaker #1: Btig .

Speaker #5: we as Stephen , just

Speaker #1: Your

Speaker #1: line is

Speaker #5: highlighted the rest of the

Speaker #1: open

Speaker #5: business is performing

Speaker #5: really

Speaker #1: .

Speaker #10: Hello . This is

Speaker #5: well . And and

Speaker #10: Vivian . Mark . Thanks for taking the questions .

Speaker #5: similarly

Speaker #5: , don't see strong that

Speaker #5: changing

Speaker #10: I'll

Speaker #5: in the

Speaker #10: keep it

Speaker #5: near term .

Speaker #10: to one . about how

Speaker #5: And that's a great thing to

Speaker #10: So I

Speaker #5: have . The

Speaker #10: think you

Speaker #5: diversity and the

Speaker #10: touched

Speaker #10: on

Speaker #5: portfolio to

Speaker #5: have the

Speaker #10: , maybe some

Speaker #5: two pieces

Speaker #10: incremental

Speaker #10: spend on the

Speaker #10: sales organization .

Speaker #10: force just trying to get ahead

Speaker #5: , you

Speaker #5: know , here by the even though they're

Speaker #5: working time of our

Speaker #5: in different

Speaker #10: of a , you know , recovery

Speaker #5: directions at

Speaker #10: in

Speaker #10: funding .

Speaker #5: the .

Speaker #5: moment . But yes , I

Speaker #10: Could you

Speaker #5: think in .

Speaker #10: just

Speaker #5: general ,

Speaker #10: us where

Speaker #5: you

Speaker #5: know , Stephen , that's that's

Speaker #10: Salesforce sits today and kind of at what levels

Speaker #5: kind

Speaker #5: of

Speaker #5: the math

Speaker #5: that we see

Speaker #10: you might .

Speaker #10: feel ?

Speaker #10: Rightsized .

Speaker #5: at the similarly

Speaker #5: . And

Speaker #10: .

Speaker #3: Yeah .

Speaker #3: And

Speaker #5: in

Speaker #5: terms of the in

Speaker #3: people often

Speaker #3: talk to us about

Speaker #3: how many people you

Speaker #5: of

Speaker #5: the

Speaker #3: field . And we

Speaker #5: clinical

Speaker #5: solutions business ,

Speaker #5: we have been

Speaker #3: broadly as a commercial

Speaker #3: organization . So

Speaker #5: adding two pieces

Speaker #5: customers there ,

Speaker #5: we will be

Speaker #5: reporting

Speaker #3: , you know ,

Speaker #3: talking about modest

Speaker #5: at the

Speaker #5: end of the

Speaker #3: increases here , as we've overall said since

Speaker #5: year kind of where those

Speaker #5: numbers

Speaker #3: the beginning of the

Speaker #5: land know ,

Speaker #5: for the

Speaker #3: We're we're talking

Speaker #5: year . that's

Speaker #5: Once we're

Speaker #5: once we're

Speaker #3: couple

Speaker #5: done and

Speaker #3: headcount here and

Speaker #3: there .

Speaker #5: continue that

Speaker #5: to see

Speaker #3: But

Speaker #3: again , back to the last comment . A lot of these are process

Speaker #5: increases see at

Speaker #5: of

Speaker #5: the of the larger

Speaker #3: improvements that we're

Speaker #5: size in terms

Speaker #5: customers , although ,

Speaker #3: driving

Speaker #3: efficiency .

Speaker #5: mix

Speaker #3: So I think what you'll

Speaker #5: can

Speaker #5: sometimes change

Speaker #5: between the end

Speaker #3: see over the course of the next year is , you know , less

Speaker #5: markets ,

Speaker #5: as have Stephen was pointing

Speaker #5: out

Speaker #5: , could customers be

Speaker #5: , you know ,

Speaker #3: than I'm ten headcount

Speaker #5: some reporting differences

Speaker #3: increases

Speaker #5: in

Speaker #5: sciences

Speaker #3: overall for

Speaker #3: entire commercial

Speaker #5: and

Speaker #5: tools

Speaker #3: organization , including

Speaker #5: and

Speaker #3: customer support and

Speaker #5: of

Speaker #5: course , versus

Speaker #5: biopharma

Speaker #3: marketing .

Speaker #3: And

Speaker #5: , for to see example .

Speaker #3: field

Speaker #5: But in either

Speaker #3: sales

Speaker #3: .

Speaker #5: case , we're of the

Speaker #5: happy to onboard

Speaker #5: those larger size customers and

Speaker #5: have customers . them

Speaker #10: Thanks for taking the question .

Speaker #5: , customers

Speaker #5: with between

Speaker #5: significant the end revenue potential

Speaker #5: going

Speaker #5: forward .

Speaker #5: so yeah

Speaker #5: looking

Speaker #5: good .

Speaker #5: And and the market and

Speaker #5: the makeup of it

Speaker #5: is , is and

Speaker #5: maybe changing

Speaker #5: a little tools bit , but

Speaker #5: we'll see how

Speaker #5: we of

Speaker #5: finish the year

Speaker #4: we supported So last year are really no longer in so yeah , existence in it's many ways . Right . looking So good .

Speaker #4: we have And to the and the overcome that and the barrier and then add makeup of it new ones . is , is maybe So changing I a little feel like the bit .

Speaker #4: more we can

Speaker #4: And at the end of the year we'll give you guys

Speaker #4: a about better update on

Speaker #4: .

Speaker #9: Okay

Speaker #9: .

Speaker #8: You know ,

Speaker #8: of the new

Speaker #8: modality

Speaker #8: world

Speaker #8: , you

Speaker #8: know , many ways .

Speaker #8: gene Right . therapy , there's

Speaker #8: been

Speaker #8: I call

Speaker #8: it like

Speaker #8: a kind

Speaker #8: of a grab barrier and bag

Speaker #8: of

Speaker #8: clinical

Speaker #8: updates throughout the

Speaker #8: year , executing really

Speaker #8: some well , quite , quite

Speaker #8: positive , particularly in

Speaker #8: some

Speaker #8: recent And

Speaker #8: gene at the end

Speaker #8: therapy

Speaker #8: indications , some

Speaker #8: perhaps

Speaker #8: more better

Speaker #8: negative

Speaker #8: bit a year or so

Speaker #8: into

Speaker #8: some the

Speaker #8: of the fast

Speaker #8: track efforts , whether

Speaker #8: it's fast track or

Speaker #8: whatever it

Speaker #8: might there's

Speaker #8: be , been I

Speaker #8: customer group . What's your

Speaker #8: exposure

Speaker #8: like

Speaker #8: to those

Speaker #8: various quite ,

Speaker #8: ? And , you

Speaker #8: know , do you gene

Speaker #8: have

Speaker #8: customers that

Speaker #8: have an negative opportunity to participate in these in these

Speaker #8: programs ? And how .

Speaker #8: has that

Speaker #8: affected

Speaker #8: either their

Speaker #8: demand or how they're working with track you

Speaker #8: ?

Speaker #4: Yeah , I

Speaker #4: think

Speaker #4: it's or also fair to say it's

Speaker #4: been a grab mat

Speaker #4: bag for or whatever

Speaker #4: us where we have some that

Speaker #4: have done

Speaker #4: quite

Speaker #4: well within your in

Speaker #4: our customer

Speaker #4: participating

Speaker #4: in some of those

Speaker #4: programs exposure like

Speaker #4: and some to those that

Speaker #4: are , various are , are

Speaker #4: really

Speaker #4: constrained

Speaker #4: recently . I know at

Speaker #4: the customers that

Speaker #4: end

Speaker #4: of

Speaker #4: 2024 , we did

Speaker #4: talk about

Speaker #4: the number of clinical

Speaker #4: customers we have is

Speaker #4: of which

Speaker #4: 39 were biopharma related

Speaker #4: . Of those ,

Speaker #4: 39 that were

Speaker #4: biopharma related , grab bag

Speaker #4: 23 were

Speaker #4: selling gene

Speaker #4: therapies . So that

Speaker #4: kind of gives you the and are idea

Speaker #4: of the

Speaker #4: exposure

Speaker #4: at the end of 2024 .

Speaker #4: I don't think it's changed

Speaker #4: drastically .

Speaker #4: Matt . But I think there

Speaker #4: are some

Speaker #4: there that

Speaker #4: are 2024 , we

Speaker #4: later stage

Speaker #4: that are actually

Speaker #4: executing the

Speaker #4: plan . customers we have There's some that

Speaker #4: been acquired

Speaker #4: and

Speaker #4: are related of the new

Speaker #4: . Party is

Speaker #4: actually running those

Speaker #4: and therapy .

Speaker #4: executing So that

Speaker #4: those . And there's kind of some

Speaker #4: there that , you know , I would say they're more

Speaker #4: sensitive or more an mRNA or some of the sort of the of

Speaker #4: sensitive gene

Speaker #4: areas that

Speaker #4: have been , you

Speaker #4: both positive

Speaker #4: and

Speaker #4: good

Speaker #4: , positive and

Speaker #4: negative

Speaker #4: over the

Speaker #4: past ,

Speaker #4: past year . So we're

Speaker #4: as a company because , you

Speaker #4: know , our

Speaker #4: specialty is making

Speaker #4: these

Speaker #4: custom small batches

Speaker #4: of reagents

Speaker #4: that are

Speaker #4: not

Speaker #4: tied to a therapeutic . We're kind of

Speaker #4: participating

Speaker #4: all or

Speaker #4: sides of some of that market , if that

Speaker #4: makes

Speaker #4: sense

Speaker #4: .

Speaker #8: Okay .

Speaker #8: Just positive and

Speaker #8: the the

Speaker #8: last

Speaker #8: margins year to

Speaker #8: date because , are up about 600 basis points . And that's despite

Speaker #8: clinical

Speaker #8: solutions

Speaker #8: being

Speaker #8: flattish ,

Speaker #8: slightly that are

Speaker #8: down

Speaker #8: in process and planned projects to continue to improve efficiency . I know scale is a big piece . Is that kind of the right

Speaker #8: gross a

Speaker #8: trajectory to

Speaker #8: think about ? .

Speaker #8: Or some Okay .

Speaker #8: referenced more or less impactful

Speaker #8: in are

Speaker #8: ?

Speaker #5: Yeah ,

Speaker #5: think

Speaker #5: thank you for highlighting those initiatives . Matt . We are working on a lot of things we've already completed , and things we're still working on for next year .

Speaker #5: fixed

Speaker #5: mix in

Speaker #5: our

Speaker #5: cost

Speaker #5: we completed

Speaker #5: have and

Speaker #5: Or again , we've

Speaker #5: talked

Speaker #5: about this

Speaker #5: 70% of

Speaker #5: incremental the

Speaker #5: revenue flowing

Speaker #5: through the driver

Speaker #5: . You

Speaker #5: know over we'll

Speaker #5: we'll

Speaker #5: change that a quarters , not

Speaker #5: little

Speaker #5: bit . But I a

Speaker #5: would say

Speaker #5: overall that is going to

Speaker #5: be still , is

Speaker #5: thematically the

Speaker #5: strongest , you

Speaker #5: . So

Speaker #5: as you can see

Speaker #5: though

Speaker #5: , from profile

Speaker #5: quarter to

Speaker #5: quarter , there is

Speaker #5: variation

Speaker #5: against talked about that 70% . I

Speaker #5: would say this

Speaker #5: that the

Speaker #5: 70% is

Speaker #5: for the

Speaker #5: most

Speaker #5: realizable in the

Speaker #5: when we talk

Speaker #5: dropping

Speaker #5: through

Speaker #5: , sometimes due to

Speaker #5: other strongest types of accounting

Speaker #5: for

Speaker #5: inventory and

Speaker #5: We can see some of the variations

Speaker #5: that we've seen . This quarter . And the last quarter as to examples in each way .

Speaker #5: think I think overall , we still have a very high fixed cost makeup and and that is going to allow us to continue driving strong performance into next year , commensurate with the growth that we're

Speaker #5: expecting

Speaker #5: .

Speaker #8: Okay .

Speaker #8: Thank you

Speaker #8: .

Speaker #2: Thank

Speaker #2: Our

Speaker #2: next cost call

Speaker #2: comes makeup from the line

Speaker #2: of

Speaker #2: Korman with

Speaker #2: . Your

Speaker #2: . Your line is commensurate with the

Speaker #2: now

Speaker #2: open we're

Speaker #2: .

Speaker #10: Thanks

Speaker #10: for

Speaker #10: taking the

Speaker #10: question . You talked about process

Speaker #10: improvements , taking effect in 26 . Are there any other areas you're looking

Speaker #10: to drive Thank ? More

Speaker #10: efficiencies ?

Speaker #10: you

Speaker #10: .

Speaker #4: Yeah . Of course . I mean this is a constant theme

Speaker #4: here of

Speaker #4: . You know ,

Speaker #4: since Craig-hallum since we started

Speaker #4: on

Speaker #4: this

Speaker #4: journey about five years ago , we map out a lot of these

Speaker #4: processes that Hello .

Speaker #4: we felt Thanks for like

Speaker #4: inefficient

Speaker #4: . And now

Speaker #4: we put the it

Speaker #4: infrastructure and the

Speaker #4: systems in

Speaker #4: place that

Speaker #4: we can you're really

Speaker #4: track

Speaker #4: and identify

Speaker #4: those , those areas . So

Speaker #4: we're

Speaker #4: always

Speaker #4: looking at is a

Speaker #4: efficiency . Now

Speaker #4: there's there's a couple different kinds .

Speaker #4: Right . .

Speaker #4: So

Speaker #4: on the

Speaker #4: operational

Speaker #4: side , this

Speaker #4: you know you

Speaker #4: can look at

Speaker #4: labor and out a lot of direct

Speaker #4: labor

Speaker #4: savings

Speaker #4: . But

Speaker #4: of course if we can get more

Speaker #4: output with the

Speaker #4: same .

Speaker #4: fixed And now cost ,

Speaker #4: right . That drives a

Speaker #4: lot

Speaker #4: of a infrastructure and the

Speaker #4: lot to systems

Speaker #4: the in place

Speaker #4: bottom that we can

Speaker #4: line .

Speaker #4: And will allow

Speaker #4: us to keep the

Speaker #4: same number of , say

Speaker #4: , headcount as we

Speaker #4: ramp we're

Speaker #4: up in always revenue and

Speaker #4: in

Speaker #4: fact , efficiency .

Speaker #4: you know ,

Speaker #4: you heard

Speaker #4: in the in the

Speaker #4: transcript ,

Speaker #4: we

Speaker #4: have

Speaker #4: 161 employees at , you know ,

Speaker #4: the end you can look of

Speaker #4: Q3 .

Speaker #4: You know , there was a

Speaker #4: You know , there was a time where savings we were

Speaker #4: actually over .

Speaker #4: 300 with a similar revenue

Speaker #4: amount . output with

Speaker #4: So ,

Speaker #4: you know

Speaker #4: , significant work has gone into cost

Speaker #4: driving that

Speaker #4: efficiency

Speaker #4: across the board . And we

Speaker #4: won't stop

Speaker #4: that

Speaker #4: as we allow us to

Speaker #4: go keep the forward .

Speaker #4: So , you know , there's

Speaker #4: efficiency in the

Speaker #4: there's

Speaker #4: efficiency

Speaker #4: in all

Speaker #4: the other supporting

Speaker #4: as well . So a lot of a lot of it infrastructure

Speaker #4: here , a lot functions of processes being optimized around

Speaker #4: metrics . And that as even even rolls all the way to the commercial side . Right .

Speaker #4: How do well . we do more with the same number of

Speaker #4: ? And , and so ,

Speaker #4: you know , it's just IT a mantra here more than anything

Speaker #4: else . infrastructure And probably , you know , would take us a long time to go into all the details here . But I think you

Speaker #4: kind of see that from a company

Speaker #4: . You know , functions we have like two major

Speaker #4: focuses .

Speaker #4: we

Speaker #4: drive

Speaker #4: top line

Speaker #4: forward as

Speaker #4: we wait for

Speaker #4: these

Speaker #4: customers to and

Speaker #4: way through the

Speaker #4: therapeutic

Speaker #4: pipeline

Speaker #4: , as

Speaker #4: well as anything

Speaker #4: then how do we

Speaker #4: continue And to optimize our

Speaker #4: processes , whether it's

Speaker #4: operations

Speaker #4: HR , you

Speaker #4: name can it

Speaker #4: .

Speaker #10: Thank

Speaker #10: you know ,

Speaker #10: .

Speaker #2: Thank you

Speaker #2: . Our

Speaker #2: next optimize our question comes from

Speaker #2: Mark

Speaker #2: Massaro of

Speaker #2: Btig .

Speaker #2: Your line is now open

Speaker #2: .

Speaker #11: Hello . This is Vivian . Mark . Thanks

Speaker #11: for taking . the questions . I'll actually just keep it to one . So I think you touched on briefly maybe some incremental spend on the sales

Speaker #11: force

Speaker #11: just trying to get ahead of a

Speaker #11: in

Speaker #11: funding .

Speaker #11: Could you Massaro just remind

Speaker #11: us where your

Speaker #11: sales

Speaker #11: force

Speaker #11: sits

Speaker #11: today now

Speaker #11: and kind of at what levels you might feel right

Speaker #11: . Thanks

Speaker #11: .

Speaker #4: Yeah .

Speaker #4: And

Speaker #4: people actually just often talk to us

Speaker #4: many

Speaker #4: people you have

Speaker #4: in the

Speaker #4: field .

Speaker #4: And we think about

Speaker #4: it much briefly more

Speaker #4: broadly as

Speaker #4: a commercial

Speaker #4: So

Speaker #4: we're talking

Speaker #4: about modest

Speaker #4: increases here .

Speaker #4: As we've

Speaker #4: said since

Speaker #4: the beginning remind of the year ,

Speaker #4: where we're

Speaker #4: talking maybe a couple headcount here and there your

Speaker #4: But

Speaker #4: again , back

Speaker #4: to the last

Speaker #4: comment . A lot of these are process improvements

Speaker #4: that we're

Speaker #4: driving

Speaker #4: efficiency .

Speaker #4: So

Speaker #4: I

Speaker #4: think what have in the you'll

Speaker #4: see over

Speaker #4: the course think about

Speaker #4: of the it next

Speaker #4: year much

Speaker #4: is more

Speaker #4: , you

Speaker #4: , less

Speaker #4: than

Speaker #4: ten headcount we're

Speaker #4: increases

Speaker #4: for the entire

Speaker #4: commercial

Speaker #4: organization , year .

Speaker #4: including

Speaker #4: customer maybe a

Speaker #4: support and

Speaker #4: marketing .

Speaker #4: And

Speaker #4: field sales

Speaker #4: .

Speaker #11: Understood . Thanks

Speaker #11: for taking the

Speaker #11: question

Speaker #11: .

Speaker #2: showing no

Speaker #2: further questions at

Speaker #2: this

Speaker #2: time the

Speaker #2: . Thank you for your

Speaker #2: participation in today's

Speaker #2: conference .

Speaker #2: This does

Speaker #2: conclude the

Speaker #2: program .

Speaker #2: You may now disconnect

Speaker #2: . Understood .