BioLife Solutions raises 2025 revenue guidance to $96M as cell processing momentum accelerates

Earnings Call Insights: BioLife Solutions (BLFS) Q3 2025

MANAGEMENT VIEW

* CEO Roderick de Greef highlighted strong quarterly performance, stating that "cell processing revenue increased 33% year-over-year, driving a 31% increase in total revenue for the quarter." He emphasized the company's focus on higher-margin recurring revenue, noting an adjusted EBITDA margin expansion of 500 basis points year-over-year to 28%.
* de Greef announced the sale of the evo Cold Chain logistics product line for approximately $25 million in cash, bringing cash and marketable securities to approximately $125 million and allowing BioLife to focus on a "fully optimized portfolio" aligned with its "core competencies and operational strengths."
* de Greef pointed to a strategic shift, saying, "Over the last 2 years, our actions have reshaped BioLife into a more focused, high-margin enterprise, positioning us to deliver sustainable growth and expanding profitability."
* CFO Troy Wichterman stated, "We reported Q3 revenue of $28.1 million, representing an increase of 31% year-over-year." He explained that the year-over-year increase was "primarily related to a 33% increase in our cell processing platform, driven by strong demand from biopreservation media customers with commercially approved therapies."

OUTLOOK

* de Greef reported, "We're raising our full year cell processing revenue guidance, which was $91 million to $93 million, to $93 million to $94 million, representing a 26% to 28% year-over-year growth rate." Total revenue guidance, adjusted for the sale of evo, is now expected at $95 million to $96 million, a growth rate of 27% to 29% on a like-for-like basis.
* Wichterman outlined, "Our adjusted revenue guidance includes increasing our cell processing revenue guidance from $91 million to $93 million, to $93 million to $94 million or a 26% to 28% growth rate compared to prior year."
* Management indicated that the guidance implies a sequential decrease in revenue in Q4 due to a $1.3 million media order that was shipped in Q3 rather than Q4 at the customer's request.

FINANCIAL RESULTS

* Wichterman reported Q3 revenue of $28.1 million, up 31% year-over-year, and cell processing revenue of $25.4 million, a 33% increase.
* GAAP gross margin for Q3 2025 was 62%, and adjusted gross margin was 64%. The decrease in adjusted gross margin versus the prior year was attributed to a $600,000 onetime inventory reserve and a less favorable product mix.
* GAAP operating expenses for Q3 were $28.2 million. Adjusted operating expenses totaled $16.6 million.
* GAAP operating loss for Q3 2025 was $89,000, while adjusted operating income was $1.3 million.
* GAAP net income was $621,000 or $0.01 per share. Adjusted EBITDA for the third quarter was $7.8 million or 28% of revenue.
* Cash and marketable securities balance as of September 30, 2025, was $98.4 million, not including proceeds from the evo sale.

Q&A

* Paul Knight, KeyBanc: Asked about pricing trends and future increases. de Greef responded that prices are expected to increase in 2026 between 4% and 6% depending on the SKU. Wichterman added that price growth year-to-date was higher than list price increases due to contract negotiations.
* Paul Knight, KeyBanc: Inquired about direct sales headcount and cross-selling efforts. de Greef indicated headcount remains small, with about 6 focused on cross-selling, and stated, "Until we're confident, Paul, of the return on that investment, we're going to hold fire, although I do suspect we'll add some in 2026."
* Matthew Stanton, Jefferies: Queried about Q3 trends and clinical funding environment. de Greef said, "Across the board from a customer segment perspective, we had growth, but the rates of growth ... are definitely pretty dramatic with the core commercial customers really driving the overall growth."
* Steven Etoch, Stephens: Asked about lingering costs from the evo sale and capital allocation. Wichterman replied, "There's really no lingering OpEx in our corporate structure." de Greef expressed an interest in "exploring adjacencies relative to not only our existing product line, but things that dovetail with our core competencies."
* Brendan Smith, TD Cowen: Sought clarity on the next wave of growth and customer funding stability. de Greef stated that commercial and late-stage clinical customers, which provide over 50% of BPM revenue, are expected to be the primary growth drivers over the next 18 to 24 months.
* Thomas Flaten, Lake Street: Asked about CryoCase evaluation progress and the Thaw product's status. de Greef explained that discussions with customers are ongoing, with a focus on obtaining commitment before further development, and confirmed that Thaw "was never on the table" for divestiture.

SENTIMENT ANALYSIS

* Analysts maintained a positive tone, frequently congratulating management on performance and focusing on growth drivers, pricing, and capital allocation. Questions were constructive and sought details on future strategy and operational clarity.
* Management's tone was confident and forward-looking in both prepared remarks and Q&A, emphasizing execution, growth, and financial discipline. de Greef used phrases such as "We believe we've got really strong momentum going into '26" and "I'm pretty set on not going backwards from a financial profile standpoint" to reinforce confidence.
* Compared to the previous quarter, both analyst and management sentiment remain positive, with a slightly increased focus on execution following the evo divestiture and revised guidance.

QUARTER-OVER-QUARTER COMPARISON

* Guidance for full-year cell processing revenue was increased from $91 million-$93 million in Q2 to $93 million-$94 million in Q3, and total revenue guidance was similarly raised and adjusted to reflect the evo sale.
* Strategic focus shifted more fully to pure-play cell processing following the divestiture of the evo Cold Chain business.
* Management continues to emphasize cross-selling and product portfolio optimization, with recurring revenue and commercial customers as key growth drivers.
* Analysts remain focused on growth, pricing, and the impact of strategic changes, while management projects continued margin expansion and disciplined capital allocation.
* Key metrics such as revenue, EBITDA, and adjusted gross margin showed sequential and year-over-year improvement, with cash balances strengthened post-divestiture.

RISKS AND CONCERNS

* Management noted a $600,000 onetime inventory reserve impacting Q3 gross margin.
* Guidance factors in the pull-forward of a $1.3 million BPM order from Q4 to Q3, which will affect sequential revenue comparisons.
* Analysts raised questions about potential lingering costs from the evo divestiture, which management stated are minimal.
* Broader biotech funding and government shutdown risks were discussed, but management indicated these have been considered in guidance.

FINAL TAKEAWAY

BioLife Solutions management underscored the company's transition to a focused, high-margin cell processing enterprise, supported by the sale of the evo Cold Chain business and increased recurring revenue from commercial customers. The company raised its full-year revenue guidance and anticipates continued growth, improved profitability, and disciplined capital deployment into 2026, anchored by strong execution and deep customer relationships.

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

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