Q3 2025 Quanterix Corp Earnings Call

Speaker #1: Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Quanterix Corp Q3, 2025 earnings call.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question, during that time, simply press star, then the number one on your telephone keypad.

Speaker #1: I would now like to turn the call over to Joshua Young, Head of Investor Relations. Joshua, please go ahead.

Speaker #2: Thank you, Tiffany. And good afternoon, everybody. With me on today's call are Masoud Toloue, Quanterix President and CEO, and Vandana Sriram, Quanterix Chief Financial Officer.

Speaker #2: Today's call is being recorded, and a replay of the call will be available on the investor section of our website. During the course of today's presentation, we will make forward-looking statements within the meaning of the U.S.

Speaker #2: Private Securities Litigation Reform Act. These forward-looking statements are based on management's beliefs and assumptions as of today, November 10, 2025. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements.

Speaker #2: Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

Speaker #2: To supplement our financial statements presented on a GAAP basis, we have provided certain non-GAAP financial measures. These non-GAAP measures are used to evaluate our operating performance in a manner that allows for meaningful period-to-period comparison.

Speaker #2: An analysis of trends in our business indicates that such measures are important in comparing current results with results from other periods and assessing our operating performance within our industry.

Speaker #2: Non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for, the financial information presented in accordance with GAAP.

Speaker #2: Investors are encouraged to review the reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures set forth in the presentation posted to our website and in the earnings release issued today.

Speaker #2: Finally, any percentage changes we discuss will be on a year-over-year basis unless otherwise noted. Now, I'd like to turn the call over to Masoud Toloue.

Speaker #2: Masoud.

Speaker #3: Thank you, Joshua. We're pleased with how we executed in the third quarter, especially given the significant integration work underway and the challenging industry conditions we continue to navigate.

Speaker #3: This quarter reflects the strong execution focus and resiliency of the Quanterix team, who continued to deliver results while driving major integration milestones and advancing key strategic initiatives.

Speaker #3: I'd characterize the third quarter around a few key themes. First, we delivered on our revenue expectations in a demanding environment. Second, we're moving fast and hitting key integration milestones following our acquisition of Akoya.

Speaker #3: In just over three months since the closing of the transaction, we're operating as one company under one common infrastructure and leadership team. We've created meaningful scale and built a stronger foundation for growth and already realized $67 million of the $85 million in synergies we're targeting.

Speaker #3: Third, we continue to invest for growth. We're making significant investments in Alzheimer's diagnostics and in new assays across our Samoa, and spatial franchises. Year to date, we've invested roughly $27 million in R&D, just under 30% of our revenue, which underscores our conviction in the opportunities ahead and the innovation pipeline we're building.

Speaker #3: And finally, we remain disciplined in managing our cash. We're on track to finish the year with around $120 million in cash and no debt, and we'll be cash flow breakeven in 2026.

Speaker #3: We generated $40 million in revenue in Q3, a solid start to our first quarter operating Samoa, and spatial portfolios under one umbrella. While demand across the broader industry remains uneven, we're seeing signs of stabilization, particularly in academic, government, and pharma markets.

Speaker #3: Instrumentation and accelerated revenues were both up sequentially signaling a gradual recovery that we expect to continue over the next few quarters. Since bringing Samoa and spatial together, we're already seeing early commercial momentum.

Speaker #3: Customers are increasingly interested in combining tissue and blood insights and we're starting to see real cross-selling opportunities between both portfolios. This is expanding our presence across leading pharma and academic customers where multimodal, biomarker strategies are becoming an important focus.

Speaker #3: We're also seeing early activity in oncology where both platform sensitivity and reproducibility are proving valuable in emerging liquid biopsy and tumor profiling applications. These are still early days, but the traction we're seeing reinforces the strategic power of bringing these two technology platforms together and the potential to unlock entirely new growth avenues for Quanterix.

Speaker #3: The integration itself is progressing very well. We had three clear goals when we started. First, build one Quanterix organization under unified leadership team. Second, continue delivering on our core revenue expectations while positioning to capture tissue to blood-based opportunities.

Speaker #3: And third, capture meaningful cost synergies from the transaction. We've made substantial progress in all three fronts. We've consolidated four manufacturing and lab service operations into two Quanterix sites, we're fully aligned under one structure, and as I said, we've already implemented $67 million of the $85 million in targeted cost synergies.

Speaker #3: That's a strong start, and it gives us the flexibility to keep investing in growth while improving profitability. We're also making some of the most significant R&D investments in our history.

Speaker #3: We're developing our next-gen platform, advancing our Alzheimer's diagnostics programs, and expanding our assay portfolio across Samoa and spatial. We'll soon launch an early access program for Samoa One to give key partners hands-on experience with the technology and gather feedback ahead of a broader launch.

Speaker #3: We believe this will be an important catalyst for future instrument growth. In Alzheimer's diagnostics, we received a positive pricing recommendation to crosswalk our Lucent AD test at $897 with a final approval decision expected later this quarter.

Speaker #3: We also added four diagnostics partners in Asia extending our reach and making high sensitivity clinically relevant biomarker testing available to more patients worldwide. Diagnostics-related revenue was $2.4 million in the quarter, another step in the right direction.

Speaker #3: On the balance sheet, we remain in a strong position. The cost reductions from our integration activities are driving real improvements in cash performance. We expect to exit the year with about $120 million in cash and no debt supported by improved working capital and a full quarter benefit from the synergies in place.

Speaker #3: We're building a stronger more agile and more scalable company. With integration advancing ahead of plan, early commercial synergies taking hold, and continued leadership in neurology, and diagnostics innovation, we're laying the foundation for sustained growth, profitability, and impact.

Speaker #3: Our progress this quarter is a testament to the dedication and talent of the Quanterix team. And the momentum we're building together positions us well for long-term success.

Speaker #3: Now, I'll turn over the call to Vandana.

Speaker #2: Thank you, Masoud. And good afternoon. As a reminder, we closed Akoya on July 8th, so the following results represent a partial quarter of Akoya's operating performance and exclude $600,000 of revenue recognized by Akoya in the first week of July.

Speaker #2: Total revenue for Q3 was $40.2 million, and increase of 12% year over year. From a product perspective, Samoa contributed $23 million, a 36% organic revenue decline, and spatial reported $17.2 million, down 9% year over year.

Speaker #2: Spatial revenues include $1.2 million of non-cash revenue from an off-market contract. Instrument revenue was $7.2 million, with $2.5 million in Samoa and $4.7 million in spatial instruments.

Speaker #2: We placed 16 Samoa and 27 spatial instruments in the quarter, as compared to 13 Samoa instruments in the third quarter of '24. Consumable revenue was $18.8 million, which consisted of $12.3 million in Samoa and $6.5 million in spatial consumables.

Speaker #2: Accelerator lab revenue was $8 million, $5 million in Samoa and $3 million in spatial. Samoa accelerator lab revenue of $5 million increased sequentially by $1 million in the quarter.

Speaker #2: Our organic revenue decline was driven by weakness in the US academic and pharmaceutical end markets. For consumables, the number of orders this quarter were consistent year over year, and we had a net increase in the number of accelerator projects but in both cases, the dollars per order or project were lower than last year, driving the decline in revenue.

Speaker #2: Our customer mix was evenly split between pharma and academia in the quarter. On a pro-pharma basis, including spatial revenues, US academic revenue declined approximately 30%, which is tracking to the decline in academic grants.

Speaker #2: Pharma revenue declined 23% year over year. Gross profit and margin were $17.2 million and $42.8% respectively. Non-gap gross profit was $18.5 million and non-gap gross margin was $45.9%.

Speaker #2: The alignment of Akoya's accounting policies to Quanterix resulted in the reallocation of certain Akoya expenses into cost of sales, causing a reduction of approximately $900 basis points to the combined company's gross margins, which was then offset by the favorable impact of synergies.

Speaker #2: Operating expenses for the quarter were $54.5 million. Included in operating expenses are approximately $15 million of costs related to acquisition, integration, restructuring and purchase accounting, and $1.3 million of shipping and handling costs.

Speaker #2: Non-gap operating expenses were $38.2 million, an increase of $7.1 million sequentially. I'd like to comment here on the synergy realization from the Akoya transaction.

Speaker #2: These synergies are in three areas. Firstly, the alignment of the commercial organizations into one. Secondly, the integration of the supply chain into one manufacturing operation and one lab.

Speaker #2: And thirdly, the elimination of duplicate public company costs. Prior to the acquisition, Akoya had a run rate of nearly $20 million of quarterly operating expenses.

Speaker #2: So the $7.1 million sequential increase in spending for the combined company really highlights the impact of the swift action we've taken to capture cost synergies.

Speaker #2: Our adjusted EBITDA was a loss of $11.9 million, as compared to a loss of $5.5 million in the third quarter of the prior year.

Speaker #2: We ended the quarter with $138 million of cash, cash equivalents, marketable securities, and restricted cash. During the quarter, we paid approximately $126 million in deal-related costs, which includes the debt paydown, shareholder payments, severance, and other expenses.

Speaker #2: We acquired $16.8 million in cash from Akoya. Adjusted cash usage during the quarter was $16.1 million. I will now turn to our updated guidance for the year.

Hey, Kyle. So I'll take that, uh, first question. So, yeah. On the, on the consumable side for Samoa, as you, um, articulated, the order volume was consistent with last year, but the order size was smaller, you know, which explained the entire decline. So, what we're seeing, uh, on the academic side, um, are project sizes that um, weren't the same size as they were last year. And so, from a customer perspective, we're getting the same number of, uh, customers ordering the products just project sizes is smaller than it was, uh, in the prior year and we're really attributing that to the basic academic Grant, um, environment that we're in, um, which we saw less of, um, in the prior year.

Accelerator projects, this quarter. Um how you know about those projects are smaller in scope uh versus 24. So it's still a sticky business. Um and we expect you know, those smaller projects to scale in uh 26.

All right, got it. And then as I look to the um, 4 q 25, um, kind of plans to um, Implement more synergies. I think 1 aspect is, is building out this 1 manufacturing team and others the combining of the lab services. And I I feel like that's probably an accelerator illusion. So, you know, spatial has already done 3 million in the quarter, which was, which was good to hear? Could you just again kind of walk through what um, what the plan holds for 4 just because it seems like, you know, the last leg of the stretch here and it it seems like a could be more challenging than it than it seems on the surface.

Hey, Carl. I think you're referring to the integration chart that we put together um with uh some OA and spatial. And so in Q4 um we've already implemented the single manufacturing team and we're now combining uh lab services and when we say combining Lab Services, we're already in under 1 footprint and we've combined both Labs, we're operating out of a single building and what we're looking for is you know, some additional um, Synergy opportunities. Um, as we, you know, get down the final stretch, those include, you know, synergies that we see opportunities, we see in the lab side. But then also, as we enter the beginning of next year, we'll have, you know, the company running on a single.

Erp with all systems and financials integrated into uh, 1 organization. So we'd expect to pick up the remaining part of our synergies. Um as we round out um the first quarter so um you know, you mentioned could be difficult, you know, I think we we're ahead of schedule um with what we've done so far, I would call the you know, implementation of the operating lines. Probably some of the most challenging parts of the integration and and now we're actually um see good line of sight to towards uh the end and the full 85 million as energy.

All right. Great. And then finally, just on diagnostics, 2.4 million in Revenue in the quarter. Um, you know, as we think about the clfs later this month, or or this quarter, um, you know, how should we think about kind of durable Medicare coverage and the payment rate being close to the, the 8977, and then maybe next year. Again, this is like an infection year for for that business for Lucent.

Yeah, that's a great point. You know, we, we, we got the preliminary, reimbursement recommendation, we expect, um, to hear about, you know, by the end of uh, uh, this quarter on, you know, something definitive and, you know, you make a good point, you know, we're we're now I think for the first time basically sending up providers taking orders, um, and we didn't have that, you know, in the beginning of the year. So we do expect to gain some traction. Um, based on this pricing and you know, this is the the beginning part of our diagnostic Journey. What we need to do is continue to deliver on our clinical utility studies

Which show that a 5 marker algorithmic test outperforms, a single marker tests, um, and gets the, the value, um, that we've initially been assigned. So, uh, we think it's a beginning part of the journey but, um, you know, a lot more traction, you know, in 26 versus, uh, 25

Your next question comes from the line of Dan Brennan with TD Cohen. Please go ahead.

Great. Thank you. Um, congrats on the quarter, maybe just on the on the aqua business. Can you just walk through kind of the assumptions kind of in the fourth quarter? I guess so what you did 17 million this quarter?

And it's 39 for the back half. Is that right? So it's 13 million and the fourth quarter. Is that right? Just kind of I know it's simple math but just walk through. What you're assuming in the fourth quarter for a client

yes, so we got

to start on the aqua transaction and, you know, 17 million of our Revenue in the third quarter for the fourth quarter. We've modeled a slight step down, simply because there's a, you know, level of uncertainty in the market still. There's still questions on, you know, when funding will really start to flow down. So, we've de-risked Q4, just given the uncertainty in the market. Now, of course, if that were to change, then spatial would be in a position to take advantage of that.

Got it. Um, I mean, were there any like 1 off issues in the quarter, where you had more success, maybe getting some orders in, like, any pull forwards, or you just executed really well, and kind of got that 17 million in the door.

Got it and and then and then just on the kind of high level core quanterix. I mean, I guess the fourth quarter guide assumes, you know, kind of flat to down, but or the higher end up, you know, a decent Step Up. Um, just kind of you. You commented in the prepared remarks, you're seeing Improvement in improving signs in Pharma and Academia, maybe can you just speak to a little bit of like, what your specifically seeing?

And kind of how you've tried to characterize that in kind of the core Quanterix fourth quarter guide.

Yeah. So, you know, when we look at um the full year, you know, you'll notice we haven't changed the full year guide and I think that's, you know, what you see is us being prudent. And, you know, we we're still under a government shutdown and there's just some uncertainty. So, you know, we want to be, um, you know, realistic and uh, conservative on, um, the fourth quarter. Um, the, on the, on your commentary, um, along the lines of, um, performance. You know, I I think the, um, we were very happy with, um, the outcome of, uh, of Q3 and going into Q4, we saw a sequential, um, actually going into Q3 we saw sequential, um, Improvement in both accelerator and instruments. We saw a greater number of projects, um, coming in through our farmer customers. Um, and accelerator, we hope that, you know, that basically continues going into the fourth quarter and, and going into 2026, so we can keep that momentum going up. You know, we're we're excited about, uh, 26, um, even in the pressure environment.

Just maybe a little bit more on that. And, you know, you kind of look ahead like are, are you, are you already starting to see some incremental wins, or how do we think about that cross selling opportunity?

Yeah, early days, it's been positive. Uh Dan you know if you take a look at both consumables portfolio, um, some oi it has the number of 1 um, liquid biomarker franchise, you know, everywhere. And then, you know, spatial we have the number 1 uh, protein tissue by a marker, uh, panels, um, versus, you know, anything else out there. So what we did immediately was that, you know, we talked to our neurology customers and and they were interested in understanding, you know, where these proteins, um, are moving along the brain and, you know, the early signs of Alzheimer's and how this grows from ta Tangles to plaque to, you know, conditions for our patients. So we're we're seeing some of our Samoa customers interested in, in, in actually, making purchases for the, uh, spatial product line. And then on the other side, um, we're seeing on the oncology or immune oncology side, um formerly, um, aoya customers wanting to measure and track these biomarkers in blood. So,

I'd say we have probably a double digit uh list of um opportunities uh that we're tracking and um early days have been positive.

I'm sorry, truly final 1, like 2026. Will we get the first updated? JP Morgan? Will it be on the fourth quarter call? Most companies are kind of saying something at this point. Any, any early re? I don't know if you, were, you see where consensus is landed? Just wondering, kind of how we might think about it early, look at next year. Thank you.

Yeah, we're not going to um, provide sort of the 26. Uh, guidance on this call. We we typically do it on our, um, our last quarter call, um, for the year. So, I think we'd continue to wait there. But, you know, I just wanted to reiterate, um, we've made 25 was a big investment year, uh, for the company. We've made a lot of investments in the product and service portfolio. Um, and so we expect to enter 26 with, uh, real momentum.

Okay, great. Thank you.

Your next question comes from the line of punish.

Soda with Ling Partners, please go ahead.

Yeah, hi guys. Uh, just wondering, um, what your accounting for the government shutdown. If there was any impact that you're, um, thinking about in the fourth quarter and then, um, just um, you know, how should we think about, um, you know, um, if the shutdown is over now, um, how should we think about, um, you know, the recovery or potential for maybe slide upside? If if uh

You know, the government shutdown was to uh end and and uh you know, normaly was to reverse in in in the academic account accounts.

There is any kind of year-end flush, or if, you know, the government opens up sooner than expected. That would be favorable—favorable to us from a revenue perspective, but we do think we've bottomed out the risk here.

Okay, thank you. And then, um, massuda bigger, you know, high level question for you around competition. Um, I mean, I hear your comments on, on academic weakness. Backdrop is tough. We all know that. But, um, you know, how do you plan to address the, you know, significant Market competition? That is emerging from high sensitivity, High Multiplex platform on the Discovery side uh and and academic Discovery side as well. Especially in neurology. Um, you know, and Pharma and biotech as well. At least on the Discovery side I could say we can we're seeing more of that. So, just wondering how, how do you think about that? Uh, I appreciate your clinical trial business is not impacted, um, but um, you know, how do you compete more aggressively on the, uh, discoveries side of the business?

Yeah, Penny thanks for the question. So, you know, just, you know, for clarity, we really compete in the, you know, 4 or 5 marker space, which is a lot more of a translational, uh, segment. So, you know if um, a customer is interested in looking at something that's, you know, a 20 to a thousand Plex. We, we really don't play in that, um, part of the market now. We

Acknowledge that. That's a, um, fast growing, uh, segment and that's great for quanterix because as, uh, Discovery accelerates as, um, new markers are identified, you know, by customers doing, you know, a thousand or 100 Plex. That really translates, usually 4, 4 or 5, markers come out of those studies and that translates to more business for Quantic. So, you know, we're we're, um, very happy with, uh, with that, uh, Discovery progress and expect, um, new markers to come into our pipeline, you know, overall, uh, from a competitive standpoint. Um, you know, I think basically orders were on the consumer side flat. Uh which, you know, is good a good performance um given sort of some of this academic um shutdown um, and Grant instability. So overall, you know, we're not losing any share. In fact, we're gaining share. Um, in some of the um, diagnostic segments and clinical trial studies

As we are able to do 4 markers, uh, 5 markers with our algorithm, uh, we provide, you know, unique insights, um, that you just can't get with a single marker. So, you know, High Plex Discovery, uh, good for quanterix, um, translational, you know, single marker. Um, we've been able to, um, identify a great solution, um, on the clinical side.

Okay, and then, um, thanks for that and the last 1 for me. Um, um, could you remind us of all of the volume for you in loose and daily in the quarter? And how should we think about the volume ramp, uh, in, in, in 26 wondering? Uh, if you can provide an update on the commercial end of that and just, uh, related, um, um, you know, out of that volume, how should we think about the, um, the new pricing applying to what portion of that volume. Thank you.

Yes, so I'll let Vanna. Um, answer the question on the, um, on the revenue. But, you know, for Diagnostics, you know, we're going to be entering, uh, 26 with an established pricing recommendation. It's just something we didn't have this year. Um, and so that positions us really for stronger attraction and and growth in the segment. And so you know, when you look at uh current Revenue, um it's mainly through partner enablement. Where this is basically customers uh, buying a platform buying consumables buying tests and running it through their own, um ldt, Laboratories or reference, hospitals, and reference Laboratories and that really makes up you know the majority of uh our Diagnostics revenues. We are as I said on the call, um running patient samples and you know through our own Clea LDC lab. Um and you know that continues to increase and we expect with established pricing um that

To you know, as I said, give us more traction and growth, uh, next year.

Yeah, maybe just to add to that. Uh,

We don't disclose our direct testing. Uh,

Slowly started to buy consumables and then that is helping to hold the revenue at a fairly steady level each quarter year to date. We've done about Slightly North of 6, million of Revenue already versus 6 million for a whole of last year. So we are definitely seeing an uptick in our partners using our single Market test for testing as well.

All right. Okay, all right. Thanks guys.

Your next question comes from the line of Thomas dersy with nefron research. Please, go ahead.

Hey guys, thanks for taking the question. Um,

Just first, I was just wondering if you could clarify uh the difference between uh I guess cost your cost reductions implemented versus I guess cost reductions realized because UniFi yuly those. Um, there's a little bit of a gap so uh, just can you help me reconcile with you?

Yeah, sure. I can take that. So the cost reductions annualized is the full year impact of an action that you'll see in the

2026 time frame. What's realized in the quarter is true dollar savings that fell through within the quarter. So for example, if you take, you know, some of the leadership changes that happened 2 months worth of impact is captured in that 12 million dollar number,

But when you look to next year, that would really be a full 12 months worth of impact.

Understood.

and job and then just I guess all the instrument side um,

You know, obviously that's the difficult for pretty much everyone in the market. Um just um in terms of kind of, as you look at um Improvement in the End Market uh you know hopefully in the near future, would you expect to see uh I guess more of a rebound in lab services ahead of potential instrument placements or just how are you seeking about how that might materialize?

Yeah. Tom, you know, we were already seeing, um, increase in numbers of projects through the accelerator program. Um, now, you know, there's certainly, you know, some quarterly ups and downs on on services and as those smaller projects become larger, are we expect some smoothing out? Um, of that volume. So we're already seeing uh you know an uptick on the accelerator side it's just a matter of time on, you know, as these projects become larger or more spending happens, um, that that'll that'll improve. Um, and and I do expect it to perform that way to see Services uh, outperform sort of a consumable instrument uptick um in the, in the following quarters, instruments, uh, performed. Well, we obviously want to place those, you know, as you know. Um,

Across the franchise. Now, uh, both um, our HDX, our HT and the feno cycler, they're all high volume instruments with the capacity to run High volumes of of consumables. And we, you know, going to continue our work in making sure we get these uh placed globally.

Great. That was all my questions. Thanks for the time.

Thank you. Your next question. Is a follow-up from Kyle Mixon with Kord? Please go ahead.

On the point there about instruments on. So 1 just wanted to ask about the timeline there because I thought it was supposed to be launched by the end of 25, but it sounds like now there's an early Access program for that. So, um, again, how should we think about this product as being like a, you know, an incremental inorganic source of Revenue growth? Like next year, sounds like it could be, could be big, but I mean, what's the funnel kind of look like? What? What do you expect from that for that in the soon?

Yeah we've we've been working with a handful of customers and there are certainly excited to get access to higher sensitivity uh compared to where we are today and the ability to Plex uh even further. And so we're going to be kicking off an early Access program you know before the end of the year um where we're going to give um Early Access get feedback um from our customers um before we go and move forward with a full launch Revenue contribution, you know, we haven't talked about that in 26. We'll uh, provide an update on on our next quarter. Call

All right. Great. And then finally, on the, uh, the the Asia kind of updates for, for Lucent add, I mean, when does that become material? Like what what are the, the steps to sort of unlocking Revenue in in, you know, overseas International for that test? Given, it's not, you know, it's obviously unprecedented.

yeah, I think, you know what, you see in um, some of the collaborations we've done right now, in South, um, southeast Asia South, you know where basically

I had with testing patients, and, and getting the system out to, uh, Laboratories, um, across the country. So, um, good signs there, you know, the drug is available, um, patients want access, um, and, and they're using our tests. So that's been a, um, a decent contributor to our Diagnostics Revenue.

Got it. And finally, um, you know, you've reduced R&D spending quite a bit, and just kind of curious if you aim to sort of, um, you know, increase that next year. Is there anything about, again, the small one? You have other products coming out just to maintain, um, you know, a competitive stance and sort of drive growth as well over time. Just because you have a lot of synergies you've taken out, or, sorry, investments that you've taken over the business, so you need kind of, um, investments to drive more growth. How do you, what do you think about that kind of concept?

Yes. So we've been pretty disciplined about, uh, you know, the synergies. And we've been careful to make sure that we maintain all of our investment in our growth areas. So R&D is down ahead, but that's mainly because, uh, there's some reallocation of some of, uh, Aquarius R&D cost into, uh, cost of sales and on the SEMO side, you know, there's been a little bit of pruning and a little bit of housekeeping, but all of our strategic Investments are very much intact. So we're still allocating Capital to similar 1, as well as Diagnostics as well as on asset development, both for SEMO and spatial, as we go into 2026, you know, some of these programs will come to a natural end. Other programs will start off, but as intention is that we'll continue to

Balance R&D as a priority item, even going into 26.

Great. Thanks guys.

we have reached the end of our question and answer session, ladies and gentlemen, this concludes today's call thank you all for joining you may now disconnect