Q1 2026 Maravai Life Sciences Holdings LLC Earnings Call

May 7, 2026

Speaker #1: Joining today's Verify Life Sciences Q1, 2026 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session.

Speaker #1: To register to ask a question at any time, please press *1 on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance.

Speaker #1: It is now my pleasure to turn the meeting over to Deb Hart, Head of Investor Relations. Please go ahead.

Speaker #2: Good afternoon, everyone. Thanks for joining us for our first quarter 2026 earnings call. The press release and slides accompanying today's call are posted on our website, and available at investors.moravai.com.

Speaker #4: Please stand by your meeting is about to begin. Hello, and welcome everyone joining today's MARAVAI LIFESCIENCES Q1, 2026 earnings call. At this time, all participants are in a listen-only mode.

Speaker #2: As you can see from the agenda on slide 2, our CEO, Bern Brost, will provide a business update and our CFO, Raj Asapoda, will review our financial results.

Speaker #4: Later, you will have the opportunity to ask questions during the question-and-answer session. To register to ask a question at any time, please press star one on your telephone keypad.

Speaker #2: Dr. Chanpeng Zhao, our Chief Scientific Officer, will join us for the Q&A session. Management will make forward-looking statements and refer to GAAP and non-GAAP financial measures during today's call.

Speaker #4: Please note this call is being recorded. We are standing by if you should need any turn the meeting over to Deb Hart, Head of Investor Relations.

Speaker #2: It's possible that actual results could differ from expectations. We refer you to slide 3 for details on forward-looking statements and our use of non-GAAP financial measures.

Speaker #4: Please go ahead.

Speaker #2: The press release provides reconciliations to the most directly comparable GAAP measures, and we also post reconciling schedules to our investor website. Please also refer to Moravai's SEC filings for additional information on the risks and uncertainties that may impact our operating results, performance, and financial condition.

Speaker #2: As you can see from the agenda on slide two, our CEO, Bernd Brust, will provide a business update and our CFO, Raj Asarpota, will review our financial results.

Speaker #2: Now, I'll turn the call over to Bern.

Speaker #3: Good afternoon, and thank you for joining us. We are very pleased with our first quarter performance. Which represents a strong start to 2026 and builds on the momentum we exited with last year.

Speaker #2: It's possible that actual results could differ from expectations. We refer you to slide three for details on forward-looking statements and our use of non-GAAP financial measures.

Speaker #3: The quarter results reflect solid execution across the business and reinforce our confidence in the trajectory we outlined on our call in February. Turning to slide 5, we delivered total Q1 revenue of $65.8 million.

Speaker #2: The press release provides reconciliations to the most directly comparable GAAP measures and we also post reconciling schedules to our investor website. Please also refer to MARAVAI's SEC filings for additional information on the risks and uncertainties that may impact our operating results, performance, and financial condition.

Speaker #3: That's 41% year-over-year growth and 10% year-over-year growth in our base business when you exclude COVID-related clean cap revenue. This performance was driven by improved tri-link demand, steady contribution from Cygnus, and continued progress against our strategic priorities.

Speaker #2: Now, I'll turn the call over to Bernd.

Speaker #3: Tri-link revenue grew 65% year-over-year, with the base business growth of 15%, supported by strong demand in both GMP and discovery consumables. At Cygnus, revenue grew a little more than 1% year-over-year.

Speaker #3: We saw solid underlying momentum with high single-digit growth in North America, and low single-digit growth in EMEA. Reinforcing our confidence in the positioning of the business, this was partially offset by lower contribution from China due to distributor ordering timing.

Speaker #3: That's 41% year-over-year growth and 10% year-over-year growth in our base business when you exclude COVID-related clean cap revenue. This performance was driven by improved TriLink demand, steady contribution from Cygnus, and continued progress against our strategic priorities.

Speaker #3: From a profitability standpoint, we delivered adjusted gross margin of 65.3% and adjusted EBITDA of 20.3 million. These results reflect the benefit of higher revenue, favorable product and customer mix, and the cost disciplines we have implemented across the organization.

Speaker #3: TriLink revenue grew 65% year-over-year, with the base business growth of 15%, supported by strong demand in both GMP and discovery consumables. At Cygnus, revenue grew a little more than 1% year-over-year.

Speaker #3: We also generated 4.2 million of positive free cash flow in the quarter, which is the first time the company has been cash flow positive since Q3 of 2024.

Speaker #3: We saw solid underlying momentum with high single-digit growth in North America and low single-digit growth in EMEA, reinforcing our confidence in the positioning of the business. This was partially offset by lower contribution from China due to distributor ordering timing.

Speaker #3: We see this as another clear indication that the structural improvements we have made are taking hold. Given our strong start to the year and improved visibility into the balance of 2026, we are increasing the range for our full-year revenue expectations and substantially raising our EBITDA guidance.

Speaker #3: Raj will walk through that in more detail shortly. Now, let's turn to slide 6 for an update on our performance against our three strategic pillars.

Speaker #3: Commercial execution, operational excellence, and of course, innovation. Starting with commercial execution, we are seeing strong momentum across the business. Our increased focus on customer engagement is translating into better forecasting, improved visibility, and stronger order conversion.

Speaker #3: We also generated 4.2 million dollars of positive free cash flow in the quarter, which is the first time the company has been cash flow positive since Q3 of 2024.

Speaker #3: We are securing more annual and multi-quarter purchase orders, which is improving the stability and predictability of our revenue base. This is a meaningful shift from where we were a year ago and reflects the effectiveness of the changes we have made in our commercial go-to-market approach.

Speaker #3: Raj will walk through that in more detail shortly. Now, let's turn to slide six for an update on our performance against our three strategic execution, operational excellence, and of course, innovation.

Speaker #3: That said, our business has a disproportionate number of large orders that can result in quarter-over-quarter performance variation. Large orders tend to align with customer program progression, and as a result, revenue can vary between periods.

Speaker #3: Starting with commercial execution, we are seeing strong momentum across the business. Our increased focus on customer engagement is translating into better forecasting, improved visibility, and stronger order conversion.

Speaker #3: What gives us confidence is not the timing of any single order, but the strength and continued expansion of the underlying opportunity funnel. Within tri-link, our portfolio now spans enabling technologies such as clean cap and motel, along with custom and catalog mRNA, enzymes, oligonucleotides, including guide RNAs, and a broad range of nucleotide chemistries, including NTPs.

Speaker #3: This breadth allows us to participate more deeply across the mRNA and gene therapy workflows. We also recently launched all-in-one ICT kits, which simplify the production of capped RNA and provide early-stage researchers with easier access to our platform.

Speaker #3: That said, our business has a disproportionate number of large orders that can result in quarter-over-quarter performance variation, large orders tend to align with customer program progression, and as a result, revenue can vary between periods.

Speaker #3: What gives us confidence is not the timing of any single order, but the strength and continued expansion of the underlying opportunity funnel. Within TriLink, our portfolio now spans enabling technologies such as CleanCap and Mottail, along with custom and catalog mRNA, enzymes, oligonucleotides, including guide RNAs, and a broad range of nucleotide chemistries, including NTPs.

Speaker #3: At tri-link, our model continues to work as intended. We establish relationships early in discovery, embed our technologies in customer workflows, and then grow with those programs as they advance into GMP.

Speaker #3: Mentions of tri-link technologies and scientific publications remain strong. Underscoring their role in customer workflows, which we view as an important leading indicator of future demand.

Speaker #3: A key highlight in the quarter is the continued adoption of motel. We now have more than 70 customers using this technology. Across both large pharmaceutical companies and emerging biotechs, we are seeing growth in new customers, repeat orders, and increasing use across multiple applications.

Speaker #3: We also see continued strengths in our GMP funnel, with GMP customers expected to grow 22% in 2026, representing nine existing REO customers transitioning to GMP customers.

Speaker #3: At TriLink, our model continues to work as intended. We establish relationships early in discovery, embed our technologies in customer workflows, and then grow with those programs as they advance into GMP.

Speaker #3: Mentions of TriLink technologies and scientific publications remain strong. Underscoring their role in customer workflows, which we view as an important leading indicator of future demand.

Speaker #3: Two of which we have already converted this year. Many of these programs are progressing into later clinical stages, which supports the durability of the demand as a long-term GMP supplier.

Speaker #3: At Cygnus, we saw growth from our newer DNA quantification and extraction kits. As well as from our MOCFI product offering. These product lines extend us beyond our traditional HCP franchise into adjacent applications.

Speaker #3: A key highlight in the quarter is the continued adoption of Mottail. We now have more than 70 customers using this technology, across both large pharmaceutical companies and emerging biotechs.

Speaker #3: We are seeing growth in new customers, repeat orders, and increasing use across multiple applications. We also see continued strength in our GMP funnel, with GMP customers expected to grow 22% in 2026, representing nine existing REO customers transitioning to GMP customers.

Speaker #3: While still early, we are encouraged by the traction we are seeing as customers look for high-quality analytical tools across their development and manufacturing workflows.

Speaker #3: And finally, at Cygnus, our kits continue to play a critical role in the market with a 100% attach rate supporting the safety testing of all 29 of the 29 FDA or EMA-approved CAR-T cell and gene therapies.

Speaker #3: Now turning to operational excellence. This remains a core focus and a key driver of our improved financial performance. The restructuring actions we implemented last year continue to deliver results.

Speaker #3: At Cygnus, we saw growth from our newer DNA quantification and extraction kits, as well as from our MOCFI product offering. These product lines extend us beyond our traditional HCP franchise into adjacent applications.

Speaker #3: And we now expect to achieve more than 65 million in annual EBITDA savings. These savings span labor, facilities, and controllable spend. And are creating a more efficient and scalable cost structure.

Speaker #3: While still early, we are encouraged by the traction we are seeing as customers look for high-quality analytical tools across their development and manufacturing workflows.

Speaker #3: This is clearly reflected in our margins. We are benefiting from both cost discipline and a favorable product mix. Particularly as higher margin GMP consumables represent a larger portion of our revenue.

Speaker #3: At the same time, our operating model is now positioned to absorb incremental volume without significant increases in fixed costs. Supporting continued margin expansion as we grow revenue.

Speaker #3: We are also making progress on our digital and operational initiatives. Our e-commerce channel continues to expand, with more customers placing orders directly through our platform.

Speaker #3: And we now expect to achieve more than 65 million dollars in annual EBITDA savings. These savings span labor, facilities, and controllable spend. And are creating a more efficient and scalable cost structure.

Speaker #3: Improving speed and efficiency. In Q1, our website delivered record revenue, reflecting both improved customer engagement and the scalability of our digital platform. Finally, turning to R&D.

Speaker #3: Our focus remains on translating innovation into revenue and strengthening our competitive position across our customers' workflows. At tri-link, we are making strong progress on our enzymes portfolio and our GMP facility has not been completed and we expect to launch GMP quality enzymes this quarter.

Speaker #3: At the same time, our operating model is in opposition to absorb incremental volume without significant increases in fixed costs. Supporting continued margin expansion as we grow revenue.

Speaker #3: We are also making progress on our digital and operational initiatives. Our e-commerce channel continues to expand, with more customers facing orders directly through our platform.

Speaker #3: Early customer engagement has been encouraging and we see this as an important extension of our capabilities. With motel, we are building on the strong discovery adoption and expect to launch GMP-grade motel later this year.

Speaker #3: Improving.

Speaker #3: We are already seeing customer demand for GMP material to support clinical programs. This is a clear example of how our innovation pipeline feeds future revenue growth.

Speaker #3: More broadly, our portfolio continues to diversify across custom mRNA kits and catalog mRNA. Complementing our existing clean cap and oligo product lines. This strengthens our position and reduces reliance on any single product or customer.

Speaker #3: At Cygnus, in addition to host cell protein assays, which remain the gold standard for clinical and commercial drug product lot release, we now offer an expanded suite of HCP analytical services utilizing advanced mass spectrometry, methods, and state-of-the-art instruments.

Speaker #3: These innovative analytical capabilities deliver critical insights to customers throughout drug development and into commercialization, helping ensure their products remain safe and effective. We continue to invest in and expand our IP portfolio across our core platforms, including clean cap, motel, and Cygnus assays.

Speaker #3: During the first quarter, tri-link received two additional European patents, including one further strengthening protection around our clean cap technology, and methods for synthesizing RNA.

Speaker #3: In addition, Cygnus was granted a new US patent related to its MVP mock viral particle technology, supporting our assay and analytical capabilities. In summary, the first quarter represents an incredible start to the year.

Speaker #3: We are executing well across all three pillars, driving commercial momentum, delivering operational discipline, and advancing innovation. The fundamentals of the business are strong and we believe we are well positioned for continued growth, margin expansion, and cash generation in 2026 and beyond.

Speaker #3: I'll now ask Raj to provide details on our first quarter performance and our updated guidance. Raj?

Speaker #2: Thank you, Baron. Building on Baron's comments, the first quarter reflects solid execution across both segments with improving base demand and strong margin flow-through. I'll focus on the key drivers behind the quarter including revenue composition, profitability, and our updated outlook.

Speaker #2: Let me start with the closer look at revenue on slide 8. Our business remains well diversified across end markets. Base revenue by customer type was 32% biopharma, 31% life sciences, and diagnostics, 4% academia, 7% CRO, CMO, CDMO, and 26% distributors.

Speaker #2: By geography, base revenue was 60% North America, 25% EMEA, 8% Asia-Pacific excluding China, and 7% in China. Turning to slide 9, our gap net loss before non-controlling interest was 6.4 million.

Speaker #2: This compares to a gap net loss before non-controlling interest of 52.9 million in the prior year period. Adjusted EBITDA and non-gap measure was 20.3 million for Q1, exceeding our expectations and improving by more than 30 million year over year.

Rajesh Asarpota: With strong margins flow through. I'll focus on the key drivers behind the quarter, including revenue composition, profitability, and our updated outlook. Let me start with a closer look at revenue on Slide 8. Our business remains well-diversified across end markets. Base revenue by customer type was 32% biopharma, 31% life sciences and diagnostics, 4% academia, 7% CRO/CMO/CDMO, and 26% distributors. By geography, base revenue was 60% North America, 25% EMEA, 8% Asia Pacific, excluding China, and 7% in China. Turning to Slide 9, our GAAP net loss before non-controlling interest was $6.4 million. This compares to a GAAP net loss before non-controlling interest of $52.9 million in the prior year period. Adjusted EBITDA, a non-GAAP measure, was $20.3 million for Q1, exceeding our expectations and improving by more than $30 million year over year.

Speaker #2: This was driven by stronger revenue, favorable mixed toward high margin GMP and discovery consumables, and high margin contribution from COVID clean cap. Basic and diluted loss per share in Q1 was 2 cents compared to a loss of 21 cents per share in Q1 2025.

Speaker #2: Adjusted EPS was positive 1 cent compared to a loss of 8 cents per share last year. Moving to the balance sheet, cash flow, and other financial metrics on slide 10.

Based Revenue by customer type was. 32%, biofarma 31% life sciences and Diagnostics 4% Academia?

7% CMO cdmo and 26% distributors.

Speaker #2: We ended the quarter with 165.9 million in cash and 242.9 million in long-term debt, following the voluntary 50 million debt repayment during the quarter.

By geography based Revenue was 60% North America 25% of Mia 8% asia-pacific. Excluding China and 7% in China.

Rajesh Asarpota: Turning to Slide nine, our GAAP net loss before non-controlling interest was $6.4 million. This compares to a GAAP net loss before non-controlling interest of $52.9 million in the prior year period. Adjusted EBITDA, a non-GAAP measure, was $20.3 million for Q1, exceeding our expectations and improving by more than $30 million year over year.

Speaker #2: We generated 4.2 million of positive free cash flow, reflecting improved EBITDA and disciplined capital management. Depreciation and amortization was 11.4 million, net interest expense was 3.9 million, and stock-based compensation and non-cash charge was 6.7 million for the quarter.

Turning to slide 9 our gaap. Net loss before non-controlling interests was 6.4 million. This compares to a gaap net loss before non-controlling interests of 52.9 million in the prior year period.

Rajesh Asarpota: This was driven by stronger revenue, favorable mix toward high-margin GMP and discovery consumables, and high margin contribution from COVID CleanCap. Basic and diluted loss per share in Q1 was $0.02, compared to a loss of $0.21 per share in Q1 2025. Adjusted EPS was +$0.01, compared to a loss of $0.08 per share last year. Moving to the balance sheet, cash flow, and other financial metrics on Slide 10. We ended the quarter with $165.9 million in cash and $242.9 million in long-term debt, following the voluntary $50 million debt repayment during the quarter. We generated $4.2 million of positive free cash flow, reflecting improved EBITDA and disciplined capital management.

Adjusted ibida, a non-gaap measure was 20.3 Million for q1 exceeding, our expectations, and improving by more than 30 million euro a year.

Speaker #2: Turning to segment performance on slide 11. Tri-link represented 72% of total revenue in the quarter, excluding COVID clean cap, tri-link represented 64% of total revenue with base growth of 15%.

This was driven by stronger Revenue favorable makes toward high margin GMP and Discovery consumables and high margin contribution from coid clean cap.

Speaker #2: Tri-link was a primary driver of adjusted EBITDA improvement, benefiting from high margin product mix and improved operating leverage. The segment generated 17.3 million of adjusted EBITDA, representing an improvement of more than 26 million year over year.

Basic and diluted loss per share in q1 was 2 cents. Compared to a loss of 21 cents per share in q1 2025.

Adjusted EPS was positive. 1 cent compared to a loss of 8 cents per share last year.

Moving to the balance sheet, cash flow, and other Financial metrics and slide 10.

Speaker #2: Cygnus represented 28% of total revenue or 36% of base revenue and continued to deliver strong profitability. Cygnus generated 13.6 million of adjusted EBITDA with margins of 73.8%.

The end of the quarter, with 165.9 million in cash and 242.9 million in long-term. Debt following the voluntary, 50 million debt repayment during the quarter.

Speaker #2: Corporate expenses impacting adjusted EBITDA were 10.5 million in the quarter, these expenses include HR, finance, legal, IT, and public company costs. Turning to our updated guidance on slide 12, our outlook reflects a strong first quarter and increased confidence in the base business trajectory.

Rajesh Asarpota: Depreciation and amortization was $11.4 million, net interest expense was $3.9 million, and stock-based compensation, a non-cash charge, was $6.7 million for the quarter. Turning to segment performance on Slide 11. TriLink represented 72% of total revenue in the quarter. Excluding COVID CleanCap, TriLink represented 64% of total revenue, with base growth of 15%. TriLink was a primary driver of adjusted EBITDA improvement, benefiting from high margin product mix and improved operating leverage. The segment generated $17.3 million of adjusted EBITDA, representing an improvement of more than $26 million year over year. Cygnus represented 28% of total revenue or 36% of base revenue and continued to deliver strong profitability. Cygnus generated $13.6 million of adjusted EBITDA, with margins of 73.8%. Corporate expenses impacting adjusted EBITDA were $10.5 million in the quarter.

We generated 4.2 million of positive, free cash, flow reflecting improved ebita, and discipline Capital Management.

Depreciation and amortization was 11.4 million. Net interest, expense was 3.9 million and stock-based compensation. A non-cash charge was 6.7 million for the quarter.

Turning to segment performance on slide 11.

Speaker #2: We are raising our revenue range to 205 million to 215 million representing growth of 10% to 16% over 2025. We expect tri-link to grow in the high teens driven by continued strength in GMP consumables and a return to growth in discovery.

Driving represented 72% of total revenue in the quarter, excluding coid clean cap. Trialing represented. 64% of total revenue with base, growth of 15%,

Speaker #2: We do not currently expect additional high-volume COVID clean cap revenue in 2026. However, we continue to view 10 million to 20 million of annual endemic demand as a reasonable baseline longer term.

Traveling was a primary driver of adjusted ibida Improvement benefiting from high margin product, mix and improved operating, Leverage The segment, generated 17.3 million of adjusted ibida representing an improvement of more than 26 million euro a year.

Speaker #2: For Cygnus, we continue to expect low to mid-single-digit growth and we view the Q1 softness in China as timing-related. We are substantially raising our full-year adjusted EBITDA guidance to 30 to 32 million representing an improvement of 61 to 63 million year over year primarily driven by performance in tri-link.

Signus represented 28% of total revenue or 36% of Base revenue and continue to deliver strong, profitability. Signis generated 13.6 million of adjusted Eva with margins of 73.8%.

Rajesh Asarpota: These expenses include HR, finance, legal, IT, and public company costs. Turning to our updated guidance on Slide 12, our outlook reflects a strong Q1 and increased confidence in the base business trajectory. We are raising our revenue range to $205 to 215 million, representing growth of 10% to 16% over 2025. We expect TriLink to grow in the high teens, driven by continued strength in GMP consumables and a return to growth in discovery. We do not currently expect additional high volume COVID CleanCap revenue in 2026. However, we continue to view $10 to 20 million of annual endemic demand as a reasonable baseline longer term. For Cygnus, we continue to expect low to mid-single digit growth, and we view the Q1 softness in China as timing related.

Speaker #2: This reflects the composition of the growth we are seeing. We continue to see strong demand in higher margin areas of the portfolio particularly GMP consumables, our higher margin discovery consumables, and key Cygnus product lines.

Corporate expenses, impacting adjusted ibida, were 10.5 million in the quarter, these expenses include HR Finance, legal it and public company costs.

Turning to our updated guidance on slide 12. Our Outlook, reflects a strong first quarter and increased confidence in the base business trajectory

Speaker #2: That mixed shift combined with structural improvements we've made is driving the outperformance in EBITDA. Additionally, we expect continued gross margin expansion of greater than 1,300 basis points supported by restructuring actions, cost discipline, and favorable product mix.

We're raising our Revenue range to 205 million to 215 million representing growth of 10% to 16% over 2025.

We expect trialing to grow in the High Teens driven by continued strength in GMP consumables and a return to growth and discovery.

Speaker #2: The remainder of our guidance framework we provided in February call is unchanged. Importantly, we expect to generate positive free cash flow for the remainder of the year representing a meaningful improvement from 2025.

We do not currently expect additional high volume COVID CleanCap revenue in 2026. However, we continue to view $10 million to $20 million of annual engagement as a reasonable baseline longer term.

For sickness.

Speaker #2: Overall, we are encouraged by the momentum in the business, improved commercial execution, a more efficient cost structure, and favorable mix are driving meaningful financial progress and we remain confident in our outlook for 2026.

We continue to expect low to mid single digit growth and we view the q1 softness in China as timing related.

Rajesh Asarpota: We are substantially raising our full year adjusted EBITDA guidance to $30 to 32 million, representing an improvement of $61 to 63 million year-over-year, primarily driven by performance in TriLink. This reflects the composition of the growth we are seeing. We continue to see strong demand in higher margin areas of the portfolio, particularly GMP consumables, our higher margin discovery consumables, and key Cygnus product lines. That mix shift, combined with structural improvements we've made, is driving the outperformance in EBITDA. Additionally, we expect continued gross margin expansion of greater than 1,300 basis points, supported by restructuring actions, cost discipline, and favorable product mix. The remainder of our guidance framework we provided in February's call is unchanged. Importantly, we expect to generate positive free cash flow for the remainder of the year, representing a meaningful improvement from 2025.

Speaker #2: With that, I'll turn the call back over to the operator for Q&A.

We are substantially raising our full year adjusted ibida guidance to 30 to 32 million representing an improvement of 61 to 63 million euro, a year primarily driven by performance in trilink.

Speaker #1: Thank you. At this time, if you would like to ask a question, please press star one now on your telephone keypad. To leave the queue at any time, please press star two.

Speaker #1: Once again, that is star one to ask a question. Please limit yourself to one question and one follow-up. And we'll pause for just a moment to allow everyone a chance to join the queue.

This reflects the composition of the growth. We're seeing we continue to see strong demand in higher margin. Areas of the portfolio, particularly GMP, consumables are higher margin Discovery, consumables and key signis product lines.

Shift combined with structural improvements. We've made is driving the outperformance in ibida.

Speaker #1: Thank you. We'll take our first question from Matt Hewitt. With Craig Hallam Capital Group, please go ahead your line is open.

Speaker #3: Well, congratulations on a very nice start to the year. Maybe first up and real high level, I'm just curious what you're seeing from your pharma and customers and kind of segmented large versus small and your expectations for those two groups as the year progresses.

Additionally, we expect continued growth, margin expansion, or greater than 1300 basis points supported by restructuring actions, cost discipline and favorable product mix.

The remainder of our guidance framework, we provided in February call is unchanged.

Rajesh Asarpota: Overall, we are encouraged by the momentum in the business. Improved commercial execution, a more efficient cost structure, and favorable mix are driving meaningful financial progress, and we remain confident in our outlook for 2026. With that, I'll turn the call back over to the operator for Q&A.

Speaker #3: Obviously, the funding has improved and there's been a lot of talk about that, but what are you seeing from a spending perspective for that, the smaller pharma and biotech group?

Importantly, we expect to generate positive free cash flow for the remainder of the Year. Representing a meaningful improvement from 2025 overall we encouraged by the momentum in the business.

Improved commercial execution, a more efficient cost structure, and favorable trends are driving meaningful financial progress, and we remain confident in our outlook for 2026.

Speaker #4: Thanks for the comment. Craig, or Matt, I'm sorry. When we look at that group, it's kind of consistent across the board. Big Pharma has been very healthy and specifically some larger discovery orders but discovery or smaller biotech, smaller pharma has been pretty consistent as well.

With that, I'll turn the call back over to the operator for Q&A.

Operator: We'll take our 1st question from Matt Hewitt with Craig-Hallum Capital Group. Please go ahead. Your line is open.

Thank you at this time. If you would like to ask a question, please press star 1. Now on your telephone keypad to leave the Queue at any time. Please press star 2 once again, that is star 1 to ask a question.

Speaker #4: Across the board, I think the area where we still see the most significant softness is in this academic research world. That's not a huge part of our revenue any longer.

Please limit yourself to one question and one follow-up, and we'll pause for just a moment to allow everyone a chance to join the queue.

Operator: We'll take our 1st question from Matt Hewitt with Craig-Hallum Capital Group. Please go ahead. Your line is open.

Speaker #4: But when it comes to pharma biotech, it's pretty consistent healthy.

Speaker #1: That's great. And then maybe just speaking to China, obviously there's a little bit of an order timing issue there. But it sounds like that's going to pick up.

Matt Hewitt: Well, congratulations on a very nice start to the year. Maybe first up and real high level, I'm just curious what you're seeing from your pharma and customers both in kind of segmented large versus small, and your expectations for those two groups as the year progresses. Obviously, the funding has improved and there's been a lot of talk about that, but what are you seeing from a spending perspective for that, the smaller pharma and biotech group?

Thank you. We'll take our first question from Matt Huitt with Craig Hallum Capital Group. Please go ahead, your line is open.

Speaker #1: But as a whole, when you look at the year, is China starting to come back or what are you seeing?

Speaker #4: When you look at our Cygnus business, we have one distributor who represents us there. They're a solid company. We are certainly continuing to explore other commercialization options there.

Speaker #4: Raj and Dr. Zowich in China last week for both Cygnus and tri-link. So we look at China for this year probably still as a sort of mid-single digits growth engine and I think we should be able to get there.

Bernd Brust: Thanks for the comment. Craig, or Matt, I'm sorry. When we look at that group, it's kind of consistent across the board. You know, big pharma has been very healthy in specifically some larger discovery orders. Discovery or smaller biotech, smaller pharma has been pretty consistent as well across the board. I think the area where we still see, you know, the most significant softness is in this academic research world. That's not a huge part of our revenue any longer. When it comes to pharma biotech, it's pretty consistent, healthy.

Well congratulations on uh very nice start to the year. Uh maybe first up in real high level, I'm just curious what you're seeing um from your Pharma and customers both in kind of segmented, large versus small and your expectations for those 2 groups as the year progresses, obviously, the funding um, has improved and there's been a lot of talk about that but what are you seeing from a spending perspective for that, uh, the smaller Farm on biotech group?

Speaker #4: It's the problem is a little bit these are all larger orders, right? There's not really any run rate modeling behind that. But we feel good in general about where that is sitting.

Uh, thanks for, uh, for the comment. Um, Greg, I or or, I'm sorry when, when we look at at that group, it's kind of consistent across the board. Um, you know, big Pharma has been very healthy in, in, in specifically some larger Discovery orders.

Speaker #4: On the tri-link front, we really haven't done much business in China. It was actually the main purpose for being in China last week. We had some great interactions with customers there.

Um, but Discovery grow, or, uh, or smaller. Biotech smaller Pharma has been pretty consistent as well. Uh, across the board. I think, the area where we still see

Speaker #4: I think you're going to see some progression happening there over the next months to come. And so China as a whole, revenue-wise, not a super critical component of the business, but certainly something we're going to continue to work on enhancing.

You know, the most significant softness is in this academic research world, that's not a huge part of our Revenue, any longer. Uh but when it comes to Pharma biotech, uh it's pretty consistent healthy.

Matt Hewitt: That's great. Maybe just speaking to China, obviously there's a little bit of an order timing issue there. It sounds like that's gonna pick up. As a whole, when you look at the year, is China starting to come back or what are you seeing?

Speaker #1: That's great. And congratulations again on the start of the year.

Speaker #4: Thank you very much.

Speaker #3: Thanks.

That that's great. And then, um, maybe just speaking to China, um, obviously there's a little bit of an order timing issue there, um, but it sounds like that's going to pick up, but as as a whole, when you look at the year is China, starting to come back or what are you seeing?

Bernd Brust: When you look at our Cygnus business, you know, we have one distributor who represents us there. They're a solid company. We are certainly continuing to explore other commercialization options there. Raj and Dr. Zawel were actually in China last week for both Cygnus and TriLink. We look at China for this year, probably still as a sort of mid-single digits growth engine, and I think we should be able to get there. The problem is a little bit, these are all larger orders, right? There's not really any run rate modeling behind that. We feel good in general about where that is sitting. On the TriLink front, we really haven't done much business in China. It was actually the main purpose for being in China last week.

Speaker #1: Thank you. We'll now move on to Matt Stanton with Jefferies. Your line is open.

Speaker #4: Hey, thanks. Maybe to go back to the demand question, just the base tri-link business, mid-teens growth year over year. Can you just unpack the demand a little bit more, what you saw in discovery versus GMP?

Speaker #4: I think you said you spoke GMP to grow over 20% for the year. Did you see that year in one queue? And then the last quarter, you sounded pretty upbeat on kind of order trends, final activity.

Speaker #4: What just kind of love to hear how that trended. For the rest of one queue and here into two queue in terms of some of the future demand indicators.

When you look at our sickness business, um you know we we have 1 1, distributor who represents us there at a solid company. We, we are certainly continue to explore other commercialization options there. Uh, Raj and Dr. Zaich in China last week for both sickness and and try link. So, um, we look at at China for this year, probably still as a sort of mid single digits uh growth engine and I think we should be able to get there. It's the problem is a little bit, these are all larger orders, right? There's there's not really any run rates modelling behind that.

Speaker #4: I assume pretty good just given the guidance rates, but would love to get any more anecdotal color just on some of the funnel and order activity as well for discovery and GMP.

Bernd Brust: We had some great interactions with customers there. I think you're gonna see some progression happening there over the next months to come. You know, China as a whole, revenue-wise, not a super critical component of the business, but certainly something we're gonna continue to work on enhancing.

Speaker #4: Thank you.

Speaker #3: Yep. Hey, Matt. Thanks for the question. I think when you look at tri-link, like we said, that grew 15%. And while that Q1 kind of base growth was strong, as you kind of extrapolate for the balance of the year, like we said, there's some variability in larger GMP orders.

Um, but we feel good in general about where that is sitting, um, on the trialing front, we really haven't done much business in China. It was actually the main purpose for being in China last week. We had some great interactions with customers there. I think you're going to see some progression happening there over the next months to come. Um and so, you know, China as a whole um Revenue wise, not a super critical component of the business, uh, but certainly something we're going to continue to work on enhancing.

Matt Hewitt: That's great, congratulations again on the start to the year.

Speaker #3: We characterize that underlying growth in the second half in tri-link to be in the low to mid-single digits. And we do remain very positive on the longer-term trajectory as we kind of look for more consistent growth.

Bernd Brust: Thank you very much.

That's great, and congratulations again on the start of the year.

Thank you very much.

Operator: Thank you. We'll now move on to Matt Stanton with Jefferies. Your line is open.

Thank you. We'll now move on to Matt Stanton with Jeffrey's. Your line is open.

Matt Stanton: Hey, thanks. Maybe to go back to the demand question, just the base TriLink business, mid-teens growth year over year. Can you just unpack the demand a little bit more, what you saw in discovery versus GMP? I think you said you expect GMP to grow over 20% for the year. I guess, did you see that here in Q1? The last quarter, you sounded pretty upbeat on kinda order trends, funnel activity. Would just kind of love to hear how that trend did for the rest of Q1 and here into Q2 in terms of some of the future demand in-indicator. I assume pretty good just given the guidance range, would love to get any more anecdotal color just on some of the funnel and order activity as well for discovery and GMP. Thank you.

Speaker #3: We have we talked about mocktail as a particular callout on the R&D side that is starting to kind of get good traction. We've seen revenues from last year into this year, steadily climbing.

Speaker #3: And then as that starts to turn into GMP level in the second half, we should see some more positive growth as these programs get traction towards the end of the year and into next year.

Speaker #4: Great. And then maybe just on mocktail, just it sounds like how is that tracking to expectation? It sounds like maybe better 70 customers, new customers, repeat orders.

Rajesh Asarpota: Yeah. Hey, Matt. Thanks for the question. I think, when you look at TriLink, like we said, that grew 15%. While that Q1 kind of base growth was strong, as you can extrapolate for the balance of the year, like we said, there's some variability in larger GMP orders. We characterize that underlying growth in H2 in TriLink to be in the low to mid single digits, and we do remain very positive on the longer term trajectory and as we kind of look for more consistent growth. We have, you know, we talked about ModTail as a particular call-out on the R&D side that is starting to kind of get good traction. We've seen revenues from last year into this year steadily climbing.

Hey thanks. Maybe to go back to the demand question. Just the base trilink. Business mid teens growth year-over-year? Can you just unpack the demand a little bit more? What you saw on Discovery verse GMP. I think you said these great GMP to grow over 20% for the year. Did you see that year in 1 q and then the last quarter? You sounded pretty upbeat on time to order Trends final activity. We're just kind of love to hear how that Trend did um for the rest of the 1q in here into 2 Q in terms of some of the future demand in indicator as soon. Pretty good just giving the guidance but would love to get any more anecdotal caller. Just on some of the funnel and Order activity as well for discovering GMP. Thank you.

Speaker #4: And then the scope to launch the GMP in the back half of the year, just how meaningful is that? And was that kind of accelerated as it relates to what you've seen so far in the activity levels on that product?

Speaker #4: Thank you.

Speaker #3: Yeah, I think it's certainly mocktail is well performing above what our expectations are. 70 customers is a pretty big number. I think the dollar amount is right in line with what we had expected for the whole year, not it's still a fairly small portion of our total revenues.

Speaker #3: Of course, it being a newly launched product. But the fact that we have some larger customers already asking for GMP quality product is pretty unique.

Like we said that grew 15% and while that q1 kind of Base growth was strong. Um as you can extrapolate for the balance of the year, like we said, there's some variability in larger GMP orders. Uh we characterize that underlying growth in the second half in trialing to be in the low to mid single digits. And uh, we do remain very positive on the longer term trajectory. And as we kind of look for more consistent growth,

Um, we have, you know, we talked about mTail as a particular

Speaker #3: So early on after launch. So yeah, we're moving quickly on that based on somebody's earlier customer indications. I don't think the GMP console holds in mocktail will have a material impact in 2026.

Rajesh Asarpota: As that starts to turn into GMP level in H2, we should see some more positive growth as these programs get traction towards the end of the year and into next year.

Speaker #3: But certainly, if you start seeing demand there, should set us up for a very nice 2027 for that product life.

Call out on the R&D side that is starting to kind of get a get good traction. We've seen revenues from last year into this year, steadily climbing. And then as that starts to turn into GMP level in the second half, we should see some more positive growth as these programs. Get traction towards the end of the year and into next year,

Matt Stanton: Great. Then maybe just on ModTail, just, it sounds like, you know, how is that tracking to expectations? Sounds like maybe better 70 customers, new customers, repeat orders. Then the scope to launch the GMP in H2, just how meaningful is that? Was that kind of accelerated as it relates to what you've seen so far on the activity levels on that product? Thank you.

Speaker #4: Great. Thank you.

Speaker #1: Thank you. We'll move next to Justin Bowers with Deutsche Bank. Your line is open. Please go ahead.

Speaker #5: Hi, good afternoon, everyone. Can you talk about the funnel and how that's shaping up and maybe any metrics around growth there and RFPs over the last few quarters or few months?

Bernd Brust: Yeah, I think certainly, you know, ModTail is well performing above what our expectations are. 70 customers is a pretty big number. I think the dollar amount is right in line with what we had expected for the whole year. Now, it's still a fairly small portion of our total revenues, of course, it being a newly launched product. But the fact that we have some larger customers already asking for GMP quality product is pretty unique so early on after launch. Yeah, we're moving quickly on that based on some of these earlier customer indications. I don't think the GMP consumables in ModTail will have a material impact in 2026. Certainly, if you start seeing demand there, should set us up for a very nice 2027 for that product line.

Speaker #5: And then also what you're seeing in terms of decision timelines there. Any change in the velocity?

All right, and then maybe just on mod tail. Just um it sounds like, you know, how is that tracking to expectations? Sounds like maybe better, 70, customers, new customers, repeat orders. Um, and then the scope to launch the GMP in the back after the year. Just, how meaningful is that and was that kind of accelerated as it relate, uh, as it relates to, what you've seen so far in the activity levels on our products. Thank you. Yeah, I think it's, it's certainly, um, the m is, is well performing above what our expectations are. 70. Customers is, is a pretty big number, um, I think the the dollar

Speaker #4: Let me maybe give a high-level comment and then I'll let Raj get maybe into some more details here. On the GMP front, the funnels continue to be good.

The amount is right in line with what we had expected for the whole year. Now, it's still a fairly small portion of our total revenues, of course, as it's a newly launched product.

Speaker #4: I think we pointed out at in our comments earlier that we have nine or so new discovery customers that are moving into clinical trials forecasted for this year.

Um, but but the fact that we have some larger customers already asking for GMP. Quality product is pretty unique so early on after a launch. So um,

Speaker #4: Two have already started the remainders. We're re expecting sometime in the remainder of this year to start. That funnel is always fairly easy to manage just because it has a fairly long outlook and so we have a pretty good grasp on what's happening there and it's good growth for the remainder of this year.

yeah, we're moving quickly on that based on somebody's earlier, customer indications, I don't think the GMP console holds in M tail will have a material impact in 2026

But certainly, if you start seeing demand there, should set us up for a very nice 2027 for that product line.

Matt Stanton: Great. Thank you.

Great. Thank you.

Operator: Thank you. We'll move next to Justin Bowers with Deutsche Bank. Your line is open. Please go ahead.

Speaker #4: On the larger discovery orders, it's been great velocity and in fact, it's been faster than we had expected. Customers that we were expecting to buy later in the year bought earlier in the around them accelerating their experiments, their work, and further growth moving forward.

Thank you.

Justin Bowers: Hi, good afternoon, everyone. Can you talk about the funnel and how that's shaping up, and maybe any metrics around growth there and RFPs over the last few quarters or few months? Also what you're seeing in terms of decision timelines there, any change in the velocity?

We'll move next to Justin Bowers with Deutsche Bank. Your line is open—please go ahead.

Speaker #4: The challenge in that part of this is a little bit is for us that the average sales cycle there is two or three months.

Hi, good afternoon everyone. Can you talk about the frontal and and how that shaping up and maybe any metrics around growth there and rfps over the last few quarters a few months and then also what you're seeing in terms of decisions and timelines. There any any change in the velocity?

Bernd Brust: Let me maybe give a high level comment, and then I'll let Raj get maybe into some more details here. On the GMP front, the funnels continue to be good. I think we pointed out at, in our comments earlier that we have 9 or so new discovery customers that are moving into clinical trials forecasted for this year. 2 have already started. The remainders we're expecting sometime in the remainder of this year to start. You know, that funnel is always fairly easy to manage just because it has a fairly long outlook. We have a pretty good grasp on what's happening there, and it's good growth for the remainder of this year.

Speaker #4: And so with GMP, we pretty much know in advance what's going to happen. On this larger discovery segment, we don't quite grasp yet what's going to happen in Q3 and Q4 just given again the sales cycle that comes for this.

Let me maybe give a high level comment and I'll let Raj, get maybe into some more details here. Um,

On the GMP front, the funnels continue to be good. I think we we pointed out at in our comments earlier that

Speaker #4: The trajectory has been great. We see no reason why that shouldn't continue that way. Certainly, that's what we are seeing in the first four and a half months or now of this year.

Um, we have 9 or so. Uh, new discovery customers that are moving into uh, clinical trials uh, forecasted for this year.

Speaker #4: But all in all, great, great growth trajectory in both areas. Any specifics, Raj, will add to that or?

Speaker #3: No, I think you covered it, Berent. I mean, maybe on discovery, again, if you we segment those under 15K and greater than 15K orders, and as we've always said, under 15K, those orders are predominantly academic.

Bernd Brust: On the larger discovery orders, it's been great velocity, and in fact, it's been faster than we had expected. Customers that we were expecting to buy later in the year bought earlier in the year. Hopefully that's a good indication around them accelerating their experiments, their work and further growth moving forward. The challenge in that part of the business for us is that the average sales cycle there is like 2 or 3 months. With GMP, we pretty much know in advance what's gonna happen. On those larger discovery segments, we don't quite grasp yet what's gonna happen in Q3 and Q4, just given, again, the sales cycle that comes with this. The trajectory has been great.

Speaker #3: And early-stage research. And that segment, like we said, is still recovering. But it's consistent with our broader funding environment. And we did see modest growth in this segment in Q1.

Uh, to have already started, um, the remainders we are expecting somehow in the remainder of the year to start. Um, you know, that funnel is always fairly easy to, to manage, just because it has a fairly fairly long Outlook. Um, and so, we, we have a pretty good grasp on what's happening there and it's good growth for the remainder of this year, on the larger Discovery, uh, orders, it's been great philosophy and in fact has been faster than we had expected, um, customers that we were expecting to buy later in the year, but earlier in the year. Um, I hope that that's a good indication around them accelerating their their experiments, their work. And, and further, further growth moving forward.

Speaker #3: And then on greater than 15K discovery orders, those are kind of dominated by biopharma and biotech development programs. And those are seeing really healthy growth like Berent said.

Speaker #5: Thank you. Appreciate it.

Speaker #1: Thank you. We'll move on now to Sabu. Nambi with Guggenheim. Your line is open. Please go ahead.

Bernd Brust: You know, we see no reason why that shouldn't continue that way. Certainly that's what we are seeing in the first four and a half months or now of this year. All in all, great growth trajectory in both areas. Any specifics, Raj, you want to add to that or?

The challenge in that part of this is a little bit. Is it for us that that that the average sales cycle? There is like 2 or 2 or 3 months? And so with with GMP, we pretty much know in advance what's going to happen on this large Discovery segment. Um, we don't quite grasp yet. What's going to happen in Q3 and Q4, just given again, the sales cycle that comes with this, um, did you?

Speaker #6: Thank you for taking my question. How did the CDMO customer orders perform in the quarter, particularly for Cygnus?

Speaker #4: Well, there's not in CDMO and Cygnus, I don't think we report it out necessarily. If you're talking about CDMO and some of our work we're doing with Trilink, that business is fairly steady.

Directory has been great. Um, you know, at least see no reason why that shouldn't, um, continue that way, certainly, that's what we are seeing, um, in in the first 4 and a half months or now of this year. But um, but all in all, you know, great, great growth trajectory in both areas.

The specifics.

Rajesh Asarpota: No, I think you covered it, Bernd. I mean, maybe on discovery, again, if you know, we segment those under 15K and greater than 15K orders. As we've always said, under 15K, those orders are predominantly academic and early stage research. That segment, like we said, is still recovering, but it's consistent with our broader funding environment, and we did see modest growth in this segment in Q1. Then on greater than 15K discovery orders, those are kind of dominated by biopharma and biotech development programs, and those are seeing really healthy growth, like Bernd said.

Speaker #4: We have a couple of great programs in there. It's a pretty smart small part of our business yet. And as we shared last year, we restructured that organization a little bit just to control our costs.

No, I think you covered it, Bernd. I mean, maybe on Discovery again, if you, you know, we segment those under $15K, engraved, in $15K orders,

Speaker #4: But the programs that are there are doing well. It's not a very large group. So there is a lot of lumpiness again in there as well.

Speaker #4: But that's probably the only CDMO we break out. I don't know if we break CDMO out customer-wise for Cygnus. I don't think we had in the past.

Speaker #3: No.

Speaker #6: Okay. That's helpful. And then when we think of Merva, just zooming out and we want to look at leading indicators, where would should investors lean on?

Our broader funding environment and we did see modest growth in this segment in q1. And then on greater than 15K, Discovery. Orders, those are kind of dominated by biofarma and biotech development programs. And those are seeing really Healthy Growth, like parents says,

Justin Bowers: Thank you. Appreciate it.

Thank you, appreciate it.

Operator: Thank you. We'll move on now to Subbu Nambi with Guggenheim. Your line is open. Please go ahead.

Thank you.

Speaker #6: Should it be smaller biotech that are working on biologics? Should it be cell and gene therapy companies or in general, the whole bioprocessing end market?

We'll move on now to Sabu nambi with Guggenheim. Your line is open. Please go ahead.

Subbu Nambi: Thank you for taking my question. How did the CDMO customer orders perform in the quarter, particularly for Cygnus?

Speaker #4: I would go with your last suggestion. I think that the health across the board is starting to get much, much better. Like we said, we're seeing a weakness still and it's such a small part of our business.

Thank you for taking my question. Um how did the cdmo customer order is performed in a quarter of a particularly for signis?

Bernd Brust: Well, in CDMO and Cygnus, I don't think we report it out necessarily. If you're talking about CDMO and some of our work we're doing with TriLink, that business is fairly steady. We have a couple of great programs in there. It's pretty small part of our business yet. As we shared last year, we restructured that organization a little bit just to control our costs. The programs that are there are doing well. It's not a very large group, so there is a lot of lumpiness again in there as well. That's probably the only CDMO we break out. I don't know if we break CDMO out customer-wise for Cygnus. I don't think we have in the past. Yeah.

Speaker #4: But it is in the academic smaller research world.

Um, well, there's not in cdmo and sigma. I don't think we reported out necessarily. Uh, if you talk about cdmo and, and some of our work we're doing with tri link, um, that business is, is

Speaker #6: Perfect. Thank you so much, guys.

Speaker #4: Thank you.

Speaker #1: Thank you. We'll move on to Matthew Parisse with KeyBank Capital Markets. Your line is open. Please go ahead.

Speaker #7: Hi, yes. This is Matthew Parisse on for Paul Knight. Congrats on the quarter and thanks for taking my question. As a percentage of revenue, APAC decreased pretty meaningfully in the quarter compared to fourth quarter.

Speaker #7: I was wondering what drove that change. And then is that a trend that you can expect for the rest of 2026?

Subbu Nambi: Okay, that's helpful. When we think of Maravai, just zooming out, and we want to look at leading indicators, should investors lean on? Should it be smaller biotech that are working on biologics? Should it be cell and gene therapy companies or in general the whole bioprocessing end market?

Fairly steady. We have, we have a couple of great programs in there. Um, it's pretty smart, small part of our business yet and that's as we shared last year, we restructured that organization and um, a little bit just to control our costs, but the programs that are, there are doing well. Um, it's, it's not a very large group, so there's a lot of lumpiness against in there as well. But, um, uh, that's probably the only cdmo we break out. I don't know if we break cdmo out, a customer wise for sickness. I don't think we have in the past now.

Speaker #4: I'll let Raj go to the details here. But my guess is that's largely through Cygnus. This just is not a lot of Trilink activity in that part of the world.

Speaker #4: So would Raj keep me honest there? Trilink, or I'm sorry, Cygnus, we talked about China. I think the other area was Korea or South Korea where we saw some softness.

Bernd Brust: I would go with your last suggestion. I think the health across the board is starting to get much better. Like we said.

Okay, that's helpful. And then, um, when we think of maarava, I just zooming out, uh, and we want to look at leading indicators where would should investors lean on? Should it be smaller biotech? Um, that are working on? Um, biologics, should it be selling gene therapy companies or in general, the whole bioprocessing End Market

Speaker #4: I don't know whether we have great data behind it.

I would go with your last uh, suggestion. I think that the health across the board is is starting to get much much better.

Subbu Nambi: Okay, thank you.

Speaker #3: Really, it's not that meaningful. And again, going back to China, that current softness that we saw in the first quarter is really kind of distributor ordering pattern.

Bernd Brust: Where we're seeing a weakness still, and it's such a small part of our business, but it is in the academic, smaller research world.

Like like we said, we see that we can still and it's such a small part of our business but it is in the academic uh smaller research world.

Subbu Nambi: Perfect. Thank you so much, guys.

Speaker #3: And it's not end customer-driven. We typically have good line of sight to what the end demand is. And that is not impacted. This is purely a timing issue.

Bernd Brust: Thank you.

Perfect, thank you so much, guys.

Operator: Thank you. We'll move on to Matthew Parisi with KeyBanc Capital Markets. Your line is open. Please go ahead.

Thank you.

Speaker #3: So we don't see any significant shifts for the balance of the year. And that demand is not impacted. So we feel pretty good about recovering the demand in the balance of the year.

Matthew Parisi: Hi, yes, this is Matthew Parisi on for Paul Knight. Congrats on the quarter, and thanks for taking my question. As a percentage of revenue, APAC decreased pretty meaningfully in the quarter compared to Q4. I was wondering what drove that change, is that a trend that you can expect for the rest of 2026?

We'll move on to Matthew Parisi with keybanc. Capital markets, your line is open. Please go ahead.

Speaker #7: Thank you. And if I could just squeeze in one more. I was just wondering about kind of how the engagement has been with the new mRNA builder.

Hi. Yes. This is Matthew prey on for Paul Knight, congrats on the quarter and thanks for taking my question. Um as a percentage of Revenue APAC decreased pretty neat meaningfully in the quarter compared to a fourth quarter. I was wondering um what drove that change and then is that a trend that you can expect for the rest of 2026?

Bernd Brust: I'll let Raj go through the details here, but my guess is that's largely through Cygnus. There's not a lot of TriLink activity in that part of the world. But Raj, keep me honest there. TriLink, I'm sorry, Cygnus, we talked about China. I think the other area was Korea, South Korea, where we saw some softness. I don't know whether we have great data behind there.

Speaker #4: It's been great. I mean, it's still early days, obviously. We saw the highest increase in online activity with the business in this quarter. Our total e-commerce revenues are still under 10% for the business.

Speaker #4: So it's still long runway to go here. But good engagement. We've seen our first non-contact orders coming through. And highly optimistic that that will be a big driver, specifically as the academic world will bounce back at some point here.

Um, I'll let Raj, go to the details here, but my guess is that's largely through sickness. Uh, it's just, there's not a lot of Tri link uh, activity in that part of the world. So but Raj, keep be honest there. Um, try link. Um, or so. Sorry snepsts, we talked about China. I think the other, uh, area was Korea, South Korea, where we saw some solve this,

um,

Rajesh Asarpota: Really, it's not that meaningful. Again, you know, going back to China, that current softness that we saw in Q1, is really kind of distributor ordering pattern, and it's not end customer driven. We typically have good line of sight to what the end demand is, and that is not impacted. This is purely a timing issue. We don't see any significant shift for the balance of the year, and that demand is not impacted. We feel pretty good about recovering the demand in the balance of the year.

Speaker #4: That allows us to touch those customers without really increasing any kind of human interaction.

Speaker #7: That's awesome. Thanks for taking my questions.

Speaker #1: Thank you. And once again, if you would like to ask a question, please press star one on your keypad now. We'll now move on to Dan Arias with Stifel.

Speaker #1: Your line is open.

I, I don't know, uh, whether we have got great data behind. Yeah, it's not that meaningful. And again, you know, going back to China, uh, that current softness that we saw in the first quarter, uh, is really kind of distributor ordering pattern and it's not end customer-driven. Uh, we typically have good line of sight to what the end demand is and that is not impacted. This is purely a timing issue. So we don't see any significant, uh, shift for the balance of the Year. And that demand is not impacted. So we feel pretty good about recovering, the demand in the balance of the year.

Speaker #8: Hey, guys. This is Rohan. I'm for Dan. Thanks for the questions. Last year, you were pretty adamant that high-volume, clean-cap visibility was near zero without binding purchase orders.

Matthew Parisi: Thank you. If I could just squeeze in one more. I was just wondering about kind of how the engagement has been with the new mRNA Builder.

Thank you. And if I could just squeeze in 1 more, I was just wondering about kind of how the engagement has been with the new mRNA Builder.

Bernd Brust: Great. I mean, so early days, obviously. We saw the highest increase in online activity with the business in this quarter. Our total e-commerce revenues is still under 10% for the business, so it's still a long runway to go here. Good engagement. We've seen our first non-contact orders coming through, and highly optimistic that that will be a big driver, specifically as the academic world will bounce back at some point here, that this allows us to touch those customers without really increasing any kind of human interaction.

Speaker #8: And today, you've pinned the COVID-19 revenue at exactly 14.3 million. What specifically changed in your forecasting methodology or customer contracts that allows for this level of precision now?

Speaker #4: I think that's misunderstanding, guys. I think we shared last year that we expect COVID in 2026 to be between 10 and 20 million dollars.

Been great. I mean, it's still early days. Obviously we saw we saw the, the highest increase in in, in online activities with the, with the business in this quarter. Um, our total, uh, e-commerce revenues is still under 10% for the business, so it's still, uh, long Runway to go here. But, um, good engagement. We've seen our first non-contact orders coming through. Um,

Speaker #4: And we expect that to be the same number kind of moving forward. We received orders in that this is the dollars that came in.

and uh, highly optimistic, that that will be a a Big Driver specifically as

Speaker #4: And so we don't expect any other order for the rest of the year. But I don't think we ever set that we would not have any further COVID-related orders in 2026.

As the economic world will bounce back at some point here, that just allows us to touch those customers without really increasing any kind of human interaction.

Matthew Parisi: That's awesome. Thanks for taking my questions.

That's awesome. Thanks for taking my questions.

Operator: We'll now move on to Dan Arias with Stifel. Your line is open.

Speaker #4: We would have said that for 2025.

Operator: We'll now move on to Dan Arias with Stifel. Your line is open.

Thank you. And once again, if you would like to ask a question, please press star 1 on your keypad now.

Speaker #8: Okay. Thanks for the clarity on that. And you raised a midpoint of adjusted EBITDA guidance by 12 million or so at the midpoint, right?

We'll now move on to Dan areas with stifel the line is open.

[Analyst] (Stifel): Hey, guys. This is Rohan on for Dan. Thanks for the questions. Last year you were pretty adamant that, you know, high volume CleanCap visibility was near zero without binding purchase orders. Today you've pinned the COVID-19 revenue at exactly $14.3 million. What specifically changed in your forecasting methodology or customer contracts that allows for this level of precision now?

Hey guys, this is Rohan on for Dan. Thanks for the questions.

Speaker #8: Well, only raising revenue by 5 million. Well, aside from the restructuring savings, how much of this kind of change or delta is driven by higher margin mix from Mod Pill or the GMP enzymes versus just kind of pure cost cutting?

Who were pretty adamant that you know high volume clean cat visibility was near zero without binding.

Speaker #3: Okay. So for EBITDA, I think in Q1, we saw the EBITDA disproportionately tied to revenue. We are seeing great benefits like we mentioned from our commercial strategy kind of focusing on high-value customers and programs.

Bernd Brust: I think that's a misunderstanding, guys. I think we shared last year that we expect COVID in 2026 to be between $10 million and $20 million, and we expect that to be the same number kind of moving forward. We received orders in that this is the dollars that came in. So we don't expect any other orders for the rest of the year. I don't think we ever said that we would not have any further COVID-related orders in 2026. We would have said that for 2025.

Uh, purchase orders. And today, you've pinned the co 19 Revenue at exactly 14.3 million, What specifically changed in your forecasting, um, methodology or customer contracts that allows for this level of precision now.

I think that's misunderstanding guys. Um, I think we share last year that we expect Co in 2026 to be between 10 and 20 million dollars.

Speaker #3: We've improved our pricing discipline. And just managed that longer tail of lower-value transactions. So that coupled with the favorable mix that we're seeing on GMP on the higher margin orders is kind of improving the quality of revenue and the flow of EBITDA through that.

And we expect that to be the same number kind of moving forward. Um,

we received orders in, uh,

Speaker #3: On top of that, our operating expenses are tracking to plan. And the cost reset that we did on the restructuring is fully embedded as we modeled.

that that this is the the dollars that came in. And and so we don't expect any other any other order for the rest of the year. But I I don't think we ever Set uh that we would not have any further Co related orders in 2026. We would have said that for 2025

[Analyst] (Stifel): Okay. Thanks for the clarity on that. You raised the midpoint of adjusted EBITDA guidance by $12 million or so at the midpoint, right, while only raising revenue by $5 million. Well, aside from the restructuring savings, how much of this kind of change or delta is driven by higher margin mix from ModTail or the GMP enzymes versus just kind of pure cost cutting?

Speaker #3: And we're continuing to see savings there. So those are some of the drivers on the EBITDA performance.

Speaker #4: And it's not an unfair comment, I think. We do potentially put in a little risk on some of our lower-margin service businesses not tied to commercialization, just tied to project and how well the success of those projects be.

Okay, thanks for the clarity on that. Um, and you raised the midpoint of, uh, adjusted EBITDA guidance by $12 million or so at the midpoint, right? Um, while only raising revenue by $5 million. Well, aside from the restructuring savings, how much of this kind of change or delta is driven by higher margin mix from ModPill or the GMPP enzymes versus just kind of pure cost cutting?

Rajesh Asarpota: Okay. In for EBITDA, you know, I think in Q1 we saw the EBITDA disproportionately tied to revenue. We are seeing great benefits, like we mentioned from our commercial strategy, kind of focusing on high-value customers and programs. We've improved our pricing discipline and just managed that longer tail of lower value transactions. That coupled with the favorable mix that we're seeing on GMP on the higher margin orders is kind of improving the quality of revenue and the flow of EBITDA through that. On top of that, our operating expenses are tracking to plan and the cost reset that we did on the restructuring is fully embedded as we modeled, and we're continuing to see savings there. Those are some of the drivers on the EBITDA performance.

Speaker #4: If you see some softness there, it won't impact our margins really in any material way. So the product mix is truly material impact of why we're seeing such great EBITDA performance.

um, okay, so in for ebida, um, you know, I think in q1, we saw

Speaker #8: Okay. Thank you. For that. And just to probably squeeze in one more question. Do you have GMP enzymes launching in Q2? How much of the 2026 guidance raise is contingent on this launch?

Speaker #8: And do you have any pre-orders in place from existing planners to customers? Thanks.

Speaker #4: Zero is tied to that revenue up call. We had assumed this was going to happen. We have orders in hand for GMP. We're running our engineering runs at the moment.

Speaker #4: I think we would start delivering those GMP orders toward the end of this quarter into early next quarter.

Speaker #8: Okay. Thank you, guys.

Bernd Brust: It's not an unfair comment.

The EBA disproportionately tied to revenue. We are seeing great benefits. Uh, like we mentioned from our commercial strategy, kind of focusing on high value customers and programs. Uh, We've improved our pricing discipline and just manage that longer tail uh of lower value transactions so that coupled with the favorable mix that we're seeing on GMP on the higher margin, orders is kind of improving the quality of Revenue and the uh flow of ibida through that. Um on on top of that, our operating expenses are tracking 2 plan and the cost reset that we did on the restructuring is fully embedded as we modeled and we're continuing to see savings there. So those are some of the drivers on uh on the even without performance.

[Analyst] (Stifel): Okay. Thank you.

Bernd Brust: We do potentially put in a little risk on some of our lower margin service businesses, not tied to commercialization, just tied to project and, you know, how will the success of those projects be. You know, if you see some softness there, it won't impact our margins really in any material way. The product mix is truly a material impact of why we're seeing such great EBITDA performance.

Speaker #1: Thank you. We'll now move on to Matt Laroux. With William Blair, your line is open.

As well. I'm sorry. Calm we do. We do.

Speaker #9: Hi. Good afternoon. Since the new team, Barron and Ross, you've been in place, obviously, the focus has been on restructuring, right-sizing, kind of improving the operational health.

Speaker #9: And I think last quarter and this quarter too, it had been as clearly has turned a corner and markets are improving as well. You mentioned being over in China recently to talk about trial length, so some new business development opportunities.

Potentially put in the little risk on some of our lower margin service businesses. Um, not tied to commercialization, just try to project and and how will the success of those those projects be? Um, you know, if you see some softness there won't impact our margins really in any material way. So the product mix is truly a material impact of of why we're seeing such great even out performance.

[Analyst] (Stifel): Okay, thank you for that. Just if I could squeeze in one more question. You have GMP enzymes launching in Q2. How much of the 2026 guidance raise is contingent on this launch? Do you have any pre-orders in place from existing Flanders 2 customers? Thanks.

Speaker #9: Some benefits from the website in terms of record sales. There are new product launches upcoming. I guess just as you think about shifting the organization sort of velocity or trajectory from one of restructuring and right-sizing to attacking new growth opportunities, what areas do you think are sort of the highest return or more near-term things that you can do as, again, the market recovers and customers fingers crossed are looking to continue to spend more?

Bernd Brust: Zero is tied to that revenue up call. We had assumed this was gonna happen. We have orders in hand for GMP. We're running our engineering runs at the moment. I think we would start delivering those GMP orders toward the end of this quarter into early next quarter.

Okay, thank you for that. And just if I could squeeze in 1, more question, do you have GMP enzymes launching Q2, how much of the 2026 guidance uh raise is contingent on this? Um launch and do you have any pre-orders in place from existing Flanders to customers? Thanks.

Zero zero is, is tied to that, that Revenue up call. We had assumed this is going to happen. Um, we have orders in hand 4 GMT. Um, we're running our engineering runs at the moment. Uh, I think we would start delivering, uh, those those GMP orders toward the end of this quarter into early next quarter.

Speaker #4: Yeah. I think it's a great question. I think maybe pointing out first and foremost, I'd like to really think the team that we've put together here - and this was in July, August last year - really combined its focus both on the restructuring while at the same time focusing on how do we commercially grow this business again.

[Analyst] (Stifel): Okay. Thank you, guys.

Okay, thank you guys.

Operator: Thank you. We'll now move on to Matt Larew with William Blair. Your line is open.

Thank you.

We'll now move on to Matt LaRue with William Blair. Your line is open.

Matt Larew: Hi. Good afternoon. Since the new team, Bernd and Raj, you've been in place, obviously the focus has been on restructuring, rightsizing, kind of improving the operational health. I think last quarter and this quarter too, it has been as clearly as has turned a corner, and markets are improving as well. You know, you mentioned being over in China recently to talk about TriLink, those new business development opportunities, and some benefits from the website in terms of record sales. There are new product launches upcoming.

Speaker #4: I think at a product front, you saw a great example from our R&D team and launching Mod Pill. And the great response to that product on the commercial front, you've seen the restructured organization bringing these products to the customers very effectively with more than 70 customers in place right now.

Hi, good afternoon. Um, this is the the, the new team, Brandon Rowe even in place. Obviously, the focus has been on restructuring, right? Sizing kind of improving the operational health.

And you know, I think last quarter and this quarter of 2 has been, as clearly as has turned a corner and and markets are are improving as well.

Speaker #4: And so I think the restructuring has happened really in parallel with this commercial effort. I wouldn't say that that's what we started first. And now we are shifting.

Matt Larew: I guess just as you think about shifting the organization sort of velocity or trajectory from one of restructuring and rightsizing to attacking new growth opportunities, what areas do you think, you know, are sort of the highest return or more near-term things that you can do, as again, the market recovers and customers, you know, fingers crossed, are looking to continue to spend more?

Speaker #4: That shift has happened for some time. And I think that's why you're seeing the results. I think as far as where do we see the biggest wins?

Speaker #4: Clearly, you're seeing automation and AI coming into play with our smaller academic basic research orders. We try to avoid having as we want to have as little interaction, human interaction with those types of orders.

Um, you know, you mentioned being over in China, recently, to talk about Trial links to some new business development opportunities. The some benefits from the website in terms of record sales or new product, launches upcoming, I guess just as you think about the Shifting, the organization sort of velocity or trajectory from 1 of restructuring and right sizing to attacking new growth opportunities. What areas do you think you know are sort of the highest return or more senior term things that you can do? Um, as again the market recovers and customers uh you know, fingers crossed are looking to continue to spend more.

Bernd Brust: I think it's a great question. You know, I think maybe pointing out first and foremost, I'd like to really think the team that we've put together here, and this was in July, August 2023, really combined its focus both on the restructuring while at the same time focusing on how do we commercially grow this business again. I think at the product front, you saw a great example from our R&D team in launching ModTail and the great, you know, response to that product. On the commercial front, you've seen the restructured commercial organization bringing these products to the customers very effectively with more than 70 customers in place right now. You know, I think the restructuring has happened really in parallel with this commercial effort.

Speaker #4: And so the biggest windfalls, the biggest gains I think clearly sit with Big Pharma. Small Pharma, biotech in this large discovery space where there's just a lot of uptick in activity and when we listen to our commercial teams, a lot of interaction with customers there.

Restructuring while at the same time, focusing on on, how do we commercially grow this business again?

Speaker #4: And then clearly, the bet here is that a lot of that effort will lead into future GMP activities where these programs enter some stage of clinical trials.

Speaker #4: And clearly, that's the entire approach for our business. How do you get your discovery consumables in the GMP consumables? And we're seeing a great future for that.

I think it's a product front. You saw a great example from from our R&D team and launching motel and, and the great, uh, you know, response to that product on the commercial front. You've seen the, you know, restructured organization, bringing these products to the customers, very effectively, with more than 70 customers in place right now.

Speaker #4: As far as geographic is concerned, obviously, we're spending the majority of our time today between North America and EMEA. I think you will start seeing an increased shift in focusing more on Asia.

Bernd Brust: I wouldn't say that that's what we started first and now we are shifting. That shift has happened for some time, and I think that's why you're seeing the results. I think as far as where do we see the biggest wins, you know, clearly you're seeing automation and AI coming into play with our smaller academic, basic research orders. We try to avoid having as little interaction, human interaction, with those types of orders. The biggest windfalls, the biggest gains, I think clearly sit with big pharma, small pharma, biotech in this large discovery space where there's just a lot of uptick in activity and when we listen to our commercial teams, a lot of interaction with customers there.

And so, you know, I think I think the restructuring has happened uh, really in parallel with this commercial effort. I wouldn't say that. That's what we started first. And now we are shifting that shift has happened for some time and I think that's why you're seeing the results. I think, as far as where do we see the biggest wins?

Speaker #4: I think there are opportunities there that we haven't captured. I think it's a little bit early days, I would say, in timing of where we have chosen to spend our time.

Speaker #4: It has been to obviously right-size the business, but also focus commercially on the regions I just mentioned. So Asia for sure will see more effort.

Speaker #4: I think it's a little early to kind of talk about what that looks like.

Speaker #9: Okay. Thank you, Sophomare.

Speaker #1: Thank you. And our final question will be from Matt Hewitt with Craig Hallam. Your line is open. And Mr. Hewitt, you may want to check your mute switch.

Bernd Brust: Clearly, you know, the bet here is that, you know, a lot of that effort will lead into future GMP activities where these programs enter some stage of clinical trials. Clearly that's the entire approach for our business. How do you get your discovery consumables into GMP consumables? We're seeing a great future for that. As far as geographic is concerned, you know, obviously we're spending the majority of our time today between North America and EMEA. I think you will start seeing an increased shift in focusing more on Asia. I think there are opportunities there that we haven't captured. I think it's a little bit early days.

Um, you know, clearly you're seeing automation and AI coming into play with our smaller academic, basic research orders. We try to avoid, um, having—as we want to have as little human interaction with those types of orders. Um, and so the biggest windfalls, the biggest, the biggest gains, uh, I think clearly sit with big pharma, small pharma, biotech, and this large discovery space where there's just a lot of uptick in activity. And, and when we listen to our commercial teams, a lot of interaction with customers there.

Speaker #1: Your line is open.

and then clearly, you know, the BET here is that, you know, a lot of that effort will lead into future GMP activities, where these programs enter some stage of clinical trials,

Speaker #10: All right. With Matt not on the line, why don't we turn it back to Barron for some closing remarks?

Speaker #4: Thank you, Deb. I'll keep this short here as well. Thanks, everybody, for taking the time today. To listen to our Q1 results and some great questions like the results showed in Q1, we feel great about where the business is heading.

Speaker #4: When we came in last year, and the changes we were bringing forward that always leave some concern for instability and we really haven't seen any of that.

Bernd Brust: I would say, you know, in timing of where we have chosen to spend our time, it has been to obviously rightsize the business, but also focus commercially on the regions I just mentioned. Asia for sure will see more effort. I think it's a little early to kinda talk about what that looks like.

Speaker #4: All of us have kind of commented here also on a positive momentum in the markets, specifically in pharma and biotech. Which is really our bread and butter.

Um, and clearly that's the entire approach for for our business. How do you get your Discovery consumables in the GMP consumables and and, and we're seeing a great great future for that. Um, as far as Geographic is concerned, you know, obviously we're spending a, the majority of our time today, uh, between North America. And, and EMA, I think you will start seeing an increase shift in focusing more on Asia. I think there are opportunities there that we haven't captured. I think it's a little bit early days. I would say, you know, in timing of where, where we have chosen to spend our time. It has been to obviously rightsize the business, but also Focus commercially on on the regions. I just mentioned so Asia for sure. We'll see more more effort. I think it's a little early to kind of talk about what that looks like.

Speaker #4: And so great Q1. We feel absolutely solid about the remainder of this year. And we feel great about the markets. So Asia, I think the question has come up a couple of times.

Matt Larew: Okay. Thank you. That's all for me.

Okay, thank you. That's all from me.

Operator: Thank you. Our final question will be from Matt Hewitt with Craig-Hallum. Your line is open. Mr. Hewitt, you may want to check your mute switch. Your line is open. All right. With Matt not on the line, why don't we turn it back to Bernd for some closing remarks?

Operator: Thank you. Our final question will be from Matt Hewitt with Craig-Hallum. Your line is open. Mr. Hewitt, you may want to check your mute switch. Your line is open.

Speaker #4: I think there's opportunity for us rather than downside just because our exposure isn't that great there yet. But all in all, we feel great about the business.

Thank you. And our final question will be from Matt Huitt with Craig Callum. Your line is open.

Speaker #4: Appreciate your support. And look forward to speaking again in about three months.

Hey, Mr. Huitt, you may want to check your mute switch. Your line is open.

Deb Hart: All right. With Matt not on the line, why don't we turn it back to Bernd for some closing remarks?

Bernd Brust: Thank you, Deb. I'll keep this short here as well. Thanks everybody for taking the time today to listen to our Q1 results and some great questions. Like the results showed in Q1, we feel great about where the business is heading. You know, when we came in last year, and the changes we were bringing forward, that always leaves some concern for instability and we really haven't seen any of that. A lot of us have kind of commented here also on a positive momentum in the market, specifically in pharma and biotech, which is really our bread and butter. Great Q1. We feel absolutely solid about the remainder of this year and we feel great about the market. Asia, I think the question has come up a couple times.

All right with, um, Matt, not on the line. Why don't we turn it back to burn for some closing remarks?

Bernd Brust: I think there's opportunity for us rather than downside just because our exposure isn't that great there yet. All in all, we feel great about the business. Appreciate your support and look forward to speaking again in about 3 months.

Thank you Deb. I'll keep this short here as well. Um, thanks everybody for taking the time today, uh, to uh, listen to our q1 results and and some great questions. Um, like the results showed in q1, we feel great about where the business is heading. Um, you know, when when we came in last year, um, and the changes we were bringing forward that always leaves some concern for instability and, and we really haven't seen any of that. All of us have kind of commented here, also on a positive momentum in the market, specifically in Pharma and biotech, uh, which is really our bread and butter, um, and so great q1. We feel absolutely solid about the remainder of this year and um, we feel great about the market. So, um, Asia, I think the question has come up a couple times. I think there's opportunity for us, rather than downside just because our exposure isn't that great there yet. Um, but all in all, um, we feel great about the business, appreciate your support.

And, uh, and look forward to, uh, speaking again in about three months.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation you may now disconnect