Cytek reaffirms $196M–$205M 2025 revenue outlook as recurring businesses accelerate

Earnings Call Insights: Cytek Biosciences (CTKB) Q3 2025

MANAGEMENT VIEW

* CEO Wenbin Jiang highlighted that "total revenue reached $52.3 million, representing a year-over-year increase of 2% compared to the same period in 2024." Jiang emphasized strong double-digit gains in the Asia Pacific region and momentum in recurring revenue businesses, particularly service and reagents.
* APAC led performance with robust growth across instruments, reagents, and service, while the U.S. saw double-digit overall revenue growth due to continued momentum in service revenue. EMEA experienced a double-digit revenue decline, largely due to reduced instrument sales in academic and government sectors.
* Instrument revenue to pharma and biotech customers grew 12% worldwide, and the new Aurora Evo Analyzer had a strong reception. Jiang noted, "Aurora Evo system is a demonstration of Cytek's commitment to maintain its position at the forefront of technology development in the flow cytometry industry."
* The Muse Micro Analyzer, introduced in March, received a strong reception for its advanced features and affordability.
* The company expanded its global instrument installed base to 3,456 units, with the Aurora cell sorter growing 35% year-over-year.
* Service revenue growth was driven by an expanding installed base and strong utilization, while reagent revenue grew 21% globally year-over-year.
* In bioinformatics, Cytek Cloud surpassed 22,600 users by September 30, 2025, marking over 40% growth since the start of the year.
* For the clinical segment, Cytek’s Northern Lights-CLC system was noted as the only special analyzer approved for clinical use in the EU.
* CFO William McCombe stated, "Total revenue for Q3 was $52.3 million, a 2% increase versus Q3 of 2024. This reflects strong growth in service and reagents worldwide, in instruments in Asia Pacific and stabilization in U.S. instrument revenues."

OUTLOOK

* The company reaffirmed its full year 2025 revenue outlook for a range of $196 million to $205 million. McCombe said, "We are reaffirming our full year 2025 revenue outlook for a range of $196 million to $205 million, assuming no change in currency exchange rates."
* Management expects continued strong growth in APAC instruments, stabilization in U.S. instruments, and solid momentum in recurring revenue businesses. EMEA is anticipated to remain under pressure.

FINANCIAL RESULTS

* Total revenue for Q3 was $52.3 million, up 2% year-over-year. Product revenue decreased 4% versus Q3 2024 due to a 26% decline in EMEA, partially offset by 19% growth in APAC. U.S. product revenue was up 20% versus Q2 but flat year-over-year.
* GAAP gross profit was $27.6 million, a 5% decrease from Q3 2024. Gross profit margin was 53% versus 56% in the prior year, attributed to increased headcount, travel, materials, and tariff costs.
* Adjusted gross profit margin was 55% in Q3, down from 60% in the prior year and from 56% in Q2.
* Operating expenses rose to $36.7 million, driven by higher general and administrative expenses, including legal costs and a $0.7 million non-recurring non-cash write-off.
* Net loss was $5.5 million in Q3 versus net income of $0.9 million in the prior year.
* Adjusted EBITDA was $2.5 million, down from $7.6 million a year ago. Free cash flow was slightly negative at minus $0.3 million, and cash and marketable securities totaled $261.7 million.

Q&A

* David Westenberg, Piper Sandler: Asked about the Aurora Evo launch and growth contribution. CEO Jiang responded that the product was designed based on pharma customer feedback, with features like higher throughput and automation.
* Westenberg inquired about double-digit growth in CROs as a leading indicator for biopharma demand. CFO McCombe clarified biopharma and CROs are considered one category, with instrument revenue up 12% for this group.
* Westenberg questioned if U.S. revenue growth was due to easier comps. CFO McCombe explained U.S. performance was strong, with flat instrument sales against a high benchmark and robust service and reagent growth.
* Brendan Smith, TD Cowen: Asked about customer spending appetite for next year and geographic differences. CFO McCombe noted strong growth in APAC, continued EMEA challenges, and U.S. stabilization, with biopharma strong and academic/government weak.
* Harrison Parsons, Stephens: Queried on 2025 outlook assumptions and Q4 instrument placement step-up. CFO McCombe said typical seasonal improvement is expected, particularly from biopharma budget flushes.
* Parsons asked about U.S. academic/government demand. CFO McCombe stated it remains pressured with no expected significant change.
* Parsons probed reagent growth initiatives. CEO Jiang cited improved logistics, European facility expansion, and warehouse relocation as drivers. McCombe added custom design-in activities and ongoing R&D.
* Noah Lewis, Raymond James: Inquired about Q4 guidance reliance on budget flush. McCombe equated budget flush with seasonality and reiterated confidence in Q4 outlook.
* Lewis asked about capital deployment. McCombe explained share repurchase is sized to free cash flow and M&A remains an option, with both strategies under review.

SENTIMENT ANALYSIS

* Analysts focused on growth drivers for new products, biopharma and CRO performance, and recurring revenue sustainability. The tone was neutral to slightly positive, with questions probing for clarity rather than expressing skepticism or concern.
* Management maintained a confident tone throughout, emphasizing stabilization, growth momentum, and operational improvements. McCombe used phrases such as "we don't have any reason to doubt" and "we are reaffirming" to reinforce confidence.
* Compared to the previous quarter, both management and analysts maintained a steady tone, with management slightly more confident due to stabilization in key regions and ongoing success in recurring revenue.

QUARTER-OVER-QUARTER COMPARISON

* The company maintained its full year 2025 revenue outlook at $196 million to $205 million, unchanged from the previous quarter.
* Strategic focus shifted slightly toward highlighting recurring revenue growth and new product adoption, particularly the Aurora Evo and Muse Micro.
* Analysts in both quarters concentrated on end-market dynamics, product launches, and recurring revenue growth, but this quarter saw more detailed questions on operational execution and capital deployment.
* Key metrics such as revenue, gross profit, and EBITDA saw modest quarter-over-quarter changes, with Q3 showing revenue growth but decreased gross profit margin and higher operating expenses.
* Management's tone was slightly more optimistic this quarter, citing improved momentum in the U.S. and strong performance in APAC, while remaining cautious about EMEA.

RISKS AND CONCERNS

* EMEA revenue continued to decline due to reduced public sector spending and a shift in government priorities.
* U.S. academic and government instrument demand remained under pressure amid funding uncertainty.
* Higher operating expenses, particularly legal costs and a non-recurring write-off, weighed on profitability.
* Management is addressing reagent growth through operational efficiency, facility expansion, and product design initiatives, and continues to monitor market conditions for capital spending trends.

FINAL TAKEAWAY

Cytek Biosciences' third quarter 2025 results underscore the company’s expanding recurring revenue base, strong growth in APAC, and stabilization in the U.S. instrument market. While EMEA remains challenged and operating expenses increased, management reaffirmed its full-year revenue guidance of $196 million to $205 million, citing confidence in ongoing momentum for service, reagent, and new product lines. The company continues to invest in operational excellence and innovation, believing these strategies will reinforce its competitive position and drive long-term value.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/ctkb/earnings/transcripts]

MORE ON CYTEK BIOSCIENCES

* Cytek Biosciences, Inc. (CTKB) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4838800-cytek-biosciences-inc-ctkb-q3-2025-earnings-call-transcript]
* Cytek Biosciences, Inc. (CTKB) Presents At Morgan Stanley 23rd Annual Global Healthcare Conference (Transcript) [https://seekingalpha.com/article/4821585-cytek-biosciences-inc-ctkb-presents-at-morgan-stanley-23rd-annual-global-healthcare]
* Cytek Biosciences: Growth Over Profit Will Pay Off In The Long Term [https://seekingalpha.com/article/4821012-cytek-biosciences-growth-over-profit-will-pay-off-in-the-long-term]
* Seeking Alpha’s Quant Rating on Cytek Biosciences [https://seekingalpha.com/symbol/CTKB/ratings/quant-ratings]
* Historical earnings data for Cytek Biosciences [https://seekingalpha.com/symbol/CTKB/earnings]