Bio-Techne Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 November 2025: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue fell 1% to $286.6 million: Reported and organic revenue each decreased 1%. Foreign currency had a favorable impact of 1%, and businesses held-for-sale had an unfavorable impact of 1%. Source
• Emerging biotech funding headwinds persisted: Management said funding headwinds continued for emerging biotech companies, while the large pharmaceutical customer base was described as a source of continued activity. Source
• GMP proteins order timing headwinds: Management linked the Fast Track designations to order timing headwinds for its GMP proteins business, described as short- and intermediate-term. Source
• Adjusted operating margin up 90 basis points: Adjusted operating income was $84.2 million, and adjusted operating margin was 29.9%, against 29.0%. Productivity initiatives, foreign exchange and the divestiture were named as favorable factors. Source
• Operating cash flow fell: Net cash from operating activities was $27.6 million, against $63.9 million a year earlier. Other operating activities reduced cash by $44.8 million in the quarter. Source
• Exosome Diagnostics divestiture completed: The company completed the divestiture to focus investment and commercial priorities on non-CLIA based product lines in its growth pillars. Source

“The Bio-Techne team once again executed with focus and agility in a dynamic operating environment,”

Kim Kelderman, President and Chief Executive Officer

What changed from last quarter

• Ended: The Exosome Diagnostics business, announced for divestiture in the prior quarter, was completed in the first quarter, including the ExoDx Prostate test. Source

Results and growth drivers

• Revenue fell 1% to $286.6 million: Reported and organic revenue each decreased 1%. Foreign currency had a favorable impact of 1%, and businesses held-for-sale had an unfavorable impact of 1%. Source
• GAAP EPS rose, adjusted EPS flat: GAAP diluted EPS was $0.24, against $0.21 a year earlier. Adjusted diluted EPS was $0.42, the same as the prior-year quarter. Source
• GAAP operating income up on lower restructuring: GAAP operating income rose 19% to $47.7 million, and GAAP operating margin was 16.6% against 13.8%. Management attributed the margin change partly to lower restructuring charges. Source
• ProteinSimple growth momentum continued: Management said ProteinSimple's analytical solutions extended their growth momentum during the quarter. Source

Segments and regions

• Protein Sciences sales down 1%: Protein Sciences net sales were $202.2 million, down 1% from $204.5 million. Organic revenue decreased 3%, with foreign currency exchange favorable by 2%. Source
• Diagnostics and Spatial Biology sales down 4%: Segment net sales were $79.5 million, down 4% from $83.2 million. Organic growth was 3%, while the held-for-sale business had an unfavorable impact of 7%. Source
• Diagnostics margin rose on divestiture: Segment operating margin was 11.2%, against 5.1% a year earlier. Management attributed the increase to volume leverage and the Exosome Diagnostics divestiture. Source

“Bio-Techne remains well positioned to deliver long-term value for all stakeholders.”

Kim Kelderman, President and Chief Executive Officer

Products, customers and end markets

• Pharma strength, academic stabilization: Management reported encouraging signs of stabilization in the US academic end market and continued strength from large pharmaceutical customers during the quarter. Source
• Emerging biotech funding headwinds persisted: Management said funding headwinds continued for emerging biotech companies, while the large pharmaceutical customer base was described as a source of continued activity. Source

Demand and order book

• Cell therapy customers got FDA Fast Track: Management said a few of its largest cell therapy customers received FDA Fast Track Designation, which enables shortened clinical development and approval timelines. Source
• GMP proteins order timing headwinds: Management linked the Fast Track designations to order timing headwinds for its GMP proteins business, described as short- and intermediate-term. Source

Costs, margins and pricing

• Adjusted operating margin up 90 basis points: Adjusted operating income was $84.2 million, and adjusted operating margin was 29.9%, against 29.0%. Productivity initiatives, foreign exchange and the divestiture were named as favorable factors. Source
• GAAP gross margin and amortization lower: GAAP gross margin was 65.6%, against 63.2%. Amortization of intangibles was $9.4 million against $11.8 million in the prior-year quarter. Source

Capital, cash and returns to shareholders

• Operating cash flow fell: Net cash from operating activities was $27.6 million, against $63.9 million a year earlier. Other operating activities reduced cash by $44.8 million in the quarter. Source
• Debt reduced, repurchases minimal: Long-term debt fell to $300.0 million from $346.0 million through net repayment of $46.0 million. Repurchases of common stock were $24 thousand, against none a year earlier. Source
• Capital spending and dividends lower: Additions to property and equipment were $5.4 million, against $9.2 million. Cash dividends paid were $12.4 million, against $12.7 million. Source

Strategy and portfolio

• Exosome Diagnostics divestiture completed: The company completed the divestiture to focus investment and commercial priorities on non-CLIA based product lines in its growth pillars. Source
• Held-for-sale proceeds and recovery: Proceeds from sale of assets held-for-sale were $4.6 million. A $6.8 million recovery of assets held-for-sale was listed as an identified adjustment in the non-GAAP reconciliation. Source

Coming up, as management said on 5 November 2025

• Spatial Biology growth expected to accelerate: Management said Spatial Biology stabilized during the quarter and showed early signs of accelerating growth going forward. Source

Figures management reported

Risks management discussed

• Demand: Funding headwinds for emerging biotech companies persisted during the quarter. Source
• Demand: Fast Track designations for large cell therapy customers are expected to create short- and intermediate-term order timing headwinds for GMP proteins. Source
• External: Management described the operating environment as dynamic. Source

Earlier plans management reported on

• Met: Management reported the divestiture of the Exosome Diagnostics business as completed in the first quarter. Source
• Not stated: Management cited ongoing productivity and cost containment initiatives as tied to the 90 basis point increase in adjusted operating margin. Source

Other quarters

• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.