Fourth quarter revenue of $198 million, a year-over-year increase of 18% as reported, 14% organic with continued momentum in orders in the quarter
Full year 2025 revenue of $738 million, a year-over-year increase of 16% for both reported and organic non-COVID
Full year 2026 revenue guidance of $810 million - $840 million, 10% to 14% reported revenue growth, 9% to 13% organic and adjusted operating margin expansion of 150 bps at the midpoint
WALTHAM, Mass., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Repligen Corporation (NASDAQ:RGEN), a life sciences company focused on bioprocessing technology leadership, today reported financial results for its fourth quarter of 2025, covering the three- and twelve- month periods ended December 31, 2025. The Company is also providing financial guidance for the full year 2026.
Olivier Loeillot, President and Chief Executive Officer of Repligen said, “We had a great finish to 2025 with 14% organic growth in the quarter led by Analytics and Proteins. As a result, we exceeded the high end of our October revenue and adjusted operating income guidance. We are thrilled by our strong performance in 2025 with 16% organic non-COVID growth driven by traction across our differentiated portfolio, while continuing to expand margins.
“As we turn the page to 2026, we are excited about our product portfolio, the team we've built, and the strategy we are executing. We are investing with intention: expanding our commercial presence and scaling our operations for greater agility. We remain focused on innovation that enables customers to accelerate development and improve yields. Our initial 2026 guidance calls for 10% - 14% revenue growth, which we believe is an appropriate starting point for the year and includes a two-point gene therapy headwind. In addition, we expect 150 bps of adjusted operating margin expansion at the midpoint.”
Q4 2025 BUSINESS HIGHLIGHTS
Executed on All 2025 Strategic Priorities.
Delivered 14% organic growth in FY25, which surpassed the high end of our initial guidance range and meaningfully outpaced market growth.
Increased FY adjusted operating margins by 90 bps or 240 bps excluding the impact of M&A and foreign exchange, while making key investments across our portfolio and becoming more fit for growth.
Expanded our Analytics portfolio via M&A and launched multiple new products across our Analytics, Filtration, and Proteins franchises.
Proteins Launch. Launched three new high® performance chromatography resins: AVIPure HiPer™ AAV9 and AVIPure® HiPer™ AAV8 affinity resins, along with HiPer™ QA anion exchange resin, expanding the Company’s growing proteins portfolio and reinforcing our commitment to innovation in next-generation bioprocessing.
APAC Investments. In the fourth quarter, we opened a new office in Singapore and expanded our footprint in Japan. This builds on our growing APAC presence as we continue to invest in the region to support future growth.
FINANCIAL PERFORMANCE
Q4 and Full Year 2025 Financial Performance (compared to prior year periods except as noted)
All adjusted figures are non-GAAP and, except for earnings per share, are rounded to the nearest million, and are reconciled in the tables included later in this press release.
Q4 reported revenue was $198 million, compared to $168 million, an increase of 18% as reported and 14% organic, bringing our full year 2025 revenue to $738 million, compared to $634 million, an increase of 16% as reported and 14% organic.
Q4 GAAP gross profit was $104 million, compared to $39 million. Adjusted gross profit was $104 million, compared to $85 million. For the full year 2025, GAAP gross profit was $386 million, compared to $275 million. Adjusted gross profit was $388 million, compared to $320 million.
Q4 GAAP income (loss) from operations was $18 million, compared to ($37) million. Adjusted income from operations was $30 million, compared to $25 million. For the full year 2025, GAAP income (loss) from operations was $55 million, compared to ($35) million. Adjusted income from operations was $102 million, compared to $82 million.
Q4 GAAP net income (loss) was $13 million, compared to ($34) million. Adjusted net income was $28 million, compared to $25 million. For the full year 2025, GAAP net income (loss) was $49 million, compared to ($26) million. Adjusted net income was $97 million, compared to $89 million.
Q4 GAAP earnings (loss) per share was $0.23 on a fully diluted basis, compared to ($0.60). Adjusted earnings per share was $0.49 on a fully diluted basis, compared to $0.44. For the full year 2025, GAAP earnings (loss) per share was $0.86 on a fully diluted basis, compared to ($0.46). Adjusted earnings per share was $1.71 on a fully diluted basis, compared to $1.58.
MARGIN SUMMARY
GAAP Margins | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | ||||
Gross Margin | 52.5% | 23.2% | 52.3% | 43.3% | ||||
Operating (EBIT) Margin | 9.0% | (21.8)% | 7.5% | (5.5)% | ||||
Net Income (Loss) Margin | 6.7% | (20.2)% | 6.6% | (4.0)% | ||||
Adjusted (non-GAAP) Margins | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | ||||
Gross Margin | 52.4% | 50.7% | 52.6% | 50.4% | ||||
Operating (EBIT) Margin | 15.0% | 14.9% | 13.8% | 12.9% | ||||
Net Income Margin | 14.0% | 15.0% | 13.1% | 14.0% | ||||
EBITDA Margin | 20.0% | 20.9% | 19.0% | 18.5% | ||||
Cash, cash equivalents and marketable securities at December 31, 2025, were $768 million, compared to $757 million at December 31, 2024.
FINANCIAL GUIDANCE FOR FULL YEAR 2026
All Adjusted figures are non-GAAP
Our financial guidance for the full year 2026 is based on expectations for our existing business. Our Adjusted (non-GAAP) guidance excludes the impact of any potential or pending business acquisitions in 2026, and future fluctuations in foreign currency exchange rates.
CURRENT GUIDANCE | ||
(at February 24, 2026) | ||
FY 2026 | Adjusted (non-GAAP) | |
Total Reported Revenue | $810M - $840M | |
Reported Growth | 10% - 14% | |
Organic Growth | 9% - 13% | |
Gross Margin | 53.6% - 54.1% | |
Income from Operations | $122M - $130M | |
Operating Margin | 15.1% - 15.5% | |
Other Income (Expense) | ~$18M | |
Adjusted EBITDA Margin | 20% - 20.5% | |
Tax Rate on Pre-Tax Income | 22% - 23% | |
Net Income | $109M - $114M | |
Earnings Per Share - Diluted | $1.93 - $2.01 | |
Revenue guidance reflects just under a one point benefit from foreign currency and M&A.
Conference Call and Webcast Access
Repligen will host a conference call and webcast today, February 24, 2026, at 8:30 a.m. ET, to discuss fourth quarter 2025 financial results, corporate developments and financial guidance for 2026. The conference call will be accessible by dialing toll-free (800) 715-9871 for domestic callers or (646) 307-1963 for international callers. No passcode is required for the live call. In addition, a webcast will be accessible via the Investor Relations section of the Company’s website. Both the conference call and webcast will be archived for a period following the live event. You can access the replay on the Investor Relations section of the Company's website.
About Repligen Corporation
Repligen Corporation is a global life sciences company that develops and commercializes highly innovative bioprocessing technologies and systems that enable efficiencies in the process of manufacturing biological drugs. We are “inspiring advances in bioprocessing” for the customers we serve; primarily biopharmaceutical drug developers and contract development and manufacturing organizations (CDMOs) worldwide. Our focus areas are Filtration and Fluid Management, Chromatography, Process Analytics and Proteins. Our corporate headquarters are located in Waltham, Massachusetts, and the majority of our manufacturing sites are in the U.S., with additional key sites in Estonia, France, Germany, Ireland, the Netherlands and Sweden. For more information about the company see our website at www.repligen.com, and follow us on LinkedIn.
Non-GAAP Measures of Financial Performance
To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (“GAAP”), the following Adjusted (“non-GAAP”) measures of financial performance are included in this release: organic non-COVID revenue and non-COVID revenue growth; organic revenue and organic revenue growth; adjusted cost of goods sold, adjusted gross profit and adjusted gross margin; adjusted R&D expense and adjusted SG&A expense; adjusted income from operations and adjusted operating margin; organic adjusted operating margin year-over-year change; adjusted pre-tax income; adjusted net income and adjusted net income margin; adjusted earnings per share (diluted); adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), and adjusted EBITDA margin. The Company provides the impact of foreign currency translation, to enable determination of revenue and margin growth rates at constant currency. To calculate the impact of foreign currency translation, the Company converts the reported amounts from local currency to U.S. dollars using constant foreign currency exchange rates in the current and prior year periods.
The Company’s non-GAAP financial results and/or non-GAAP guidance exclude the impact of: acquisition and integration costs; restructuring charges including the costs of severance and accelerated depreciation among other non-cash charges; inventory step-up costs and adjustments; incremental costs attributed to CEO transition; contingent consideration related to the Company’s acquisitions; intangible amortization costs; non-cash interest expense related to the accretion of the debt discount; amortization of debt issuance costs related to Company’s convertible debt; foreign currency impact of certain intercompany loans; and, the related impact on tax of non-GAAP charges. These costs are excluded because management believes that such expenses do not have a direct correlation to future business operations, nor do the resulting charges recorded accurately reflect the performance of our ongoing operations for the period in which such charges are recorded. Further, organic adjusted operating margin year-over-year change excludes the effect of adjustments above, as well as the impact of mergers and acquisitions and foreign exchange. This measure is used by the Company in periods of acquisition because the timing, size and number of such transactions and their related impact on the financial statements may vary and make comparison of long-term results difficult.
All reconciliations of above GAAP figures to adjusted (non-GAAP) figures are detailed in the tables included later in this press release. When analyzing the Company’s operating performance and guidance, investors should not consider non-GAAP measures as a substitute for the comparable financial measures prepared in accordance with GAAP.
The Company does not provide GAAP financial measures on a forward looking basis as the Company is unable to provide a quantitative reconciliation of forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort. The Company cannot reasonably predict items including, but not limited to, the timing and amount of future restructuring, cost-savings actions and acquisition and integration related costs. These items are generally uncertain and are not indicative of ongoing operations of the business, and the impact could be material to our results in accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking statements, which are made pursuant to and in reliance upon the safe harbor provisions of federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained herein which do not describe historical facts, including, among others, any express or implied statements or guidance regarding current or future financial performance and position, including our 2026 financial guidance and related assumptions; expected demand in the markets in which we operate; expectations regarding the acquisition of 908 Devices’ bioprocessing portfolio; and the expected performance of our business and momentum across our portfolio, are based on management’s current expectations and beliefs and are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements.
Such risks and uncertainties include, among others, our ability to successfully grow our bioprocessing business; our ability to manage through and predict headwinds; the risk that we have assumed that markets and franchises will improve and grow as predicted; our ability to achieve our 2026 financial guidance; our ability to develop and commercialize products and the market acceptance of our products; our ability to successfully integrate any acquired businesses and relevant personnel in a timely manner or at all, and to achieve the expected benefits of such acquisitions; the risk that demand for our products could decline, which could adversely impact our future revenues, cash flows, results of operations and financial condition; our ability to compete with larger, better financed bioprocessing companies; risks around the Company’s effectiveness of disclosure controls and procedures and the effectiveness of our internal control over financial reporting; our compliance with all U.S. Food and Drug Administration and European Medicines Evaluation Agency regulations; our volatile stock price; the impact of tariffs on our business, and other risks and uncertainties detailed in Repligen’s filings with the U.S. Securities and Exchange Commission (the Commission), including our Annual Report on Form 10-K for the year ended December 31, 2024 and in subsequently filed reports with the Commission, including our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as our upcoming Annual Report on form 10-K for the year ended December 31, 2025 and any subsequent filings made with the Commission, which are available at the Commission’s website at www.sec.gov. Actual results may differ materially from those Repligen contemplated by these forward-looking statements, which reflect management’s current views, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions, and are based only on information currently available to us. Repligen cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Repligen disclaims any obligation to update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
Repligen Contact:
Jacob Johnson
VP, Investor Relations
(781) 419-0204
investors@repligen.com
REPLIGEN CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited, amounts in thousands, except share data) | ||||||||
December 31, | ||||||||
2025 | 2024 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 566,021 | $ | 757,355 | ||||
Marketable securities | 201,607 | — | ||||||
Accounts receivable, net of allowances of $2,767 and $1,832 at December 31, 2025 and December 31, 2024, respectively | 158,587 | 134,115 | ||||||
Inventories, net | 170,458 | 142,964 | ||||||
Prepaid expenses and other current assets | 40,712 | 31,607 | ||||||
Total current assets | 1,137,385 | 1,066,041 | ||||||
Noncurrent assets: | ||||||||
Property, plant and equipment, net | 186,614 | 197,738 | ||||||
Intangible assets, net | 386,147 | 397,897 | ||||||
Goodwill | 1,114,408 | 1,030,995 | ||||||
Deferred tax assets | 694 | 749 | ||||||
Operating lease right of use assets | 119,538 | 135,378 | ||||||
Other noncurrent assets | 4,913 | 868 | ||||||
Total noncurrent assets | 1,812,314 | 1,763,625 | ||||||
Total assets | $ | 2,949,699 | $ | 2,829,666 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 30,010 | $ | 32,134 | ||||
Operating lease liabilities | 21,559 | 15,104 | ||||||
Contingent consideration | 5,049 | 17,126 | ||||||
Accrued liabilities | 79,208 | 62,423 | ||||||
Total current liabilities | 135,826 | 126,787 | ||||||
Noncurrent liabilities: | ||||||||
Convertible Senior Notes due 2028, net | 542,213 | 525,567 | ||||||
Deferred tax liabilities | 22,496 | 22,775 | ||||||
Noncurrent operating lease liabilities | 126,176 | 145,576 | ||||||
Noncurrent contingent consideration | 1,304 | 19,662 | ||||||
Other noncurrent liabilities | 15,555 | 16,581 | ||||||
Total noncurrent liabilities | 707,744 | 730,161 | ||||||
Total liabilities | 843,570 | 856,948 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding | — | — | ||||||
Common stock, $0.01 par value; 80,000,000 shares authorized; 56,325,429 shares at December 31, 2025 and 56,091,677 shares at December 31, 2024 issued and outstanding | 563 | 561 | ||||||
Additional paid-in capital | 1,651,849 | 1,617,336 | ||||||
Accumulated other comprehensive loss | (2,531 | ) | (52,533 | ) | ||||
Retained earnings | 456,248 | 407,354 | ||||||
Total stockholders’ equity | 2,106,129 | 1,972,718 | ||||||
Total liabilities and stockholders’ equity | $ | 2,949,699 | $ | 2,829,666 | ||||
REPLIGEN CORPORATION | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited, amounts in thousands, except per share data) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 197,728 | $ | 167,394 | $ | 737,960 | $ | 634,178 | ||||||||
Royalty and other revenue | 185 | 153 | 296 | 261 | ||||||||||||
Total revenue | 197,913 | 167,547 | 738,256 | 634,439 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of goods sold | 94,082 | 128,706 | 352,011 | 359,794 | ||||||||||||
Research and development | 13,120 | 11,677 | 54,177 | 43,200 | ||||||||||||
Selling, general and administrative | 74,363 | 60,474 | 290,508 | 263,368 | ||||||||||||
Change in fair value of contingent consideration | (1,520 | ) | 3,191 | (13,607 | ) | 3,191 | ||||||||||
Total costs and operating expenses | 180,045 | 204,048 | 683,089 | 669,553 | ||||||||||||
Income (loss) from operations | 17,868 | (36,501 | ) | 55,167 | (35,114 | ) | ||||||||||
Other income (expense), net: | ||||||||||||||||
Investment income | 6,754 | 8,293 | 27,574 | 35,827 | ||||||||||||
Interest expense | (5,495 | ) | (5,462 | ) | (21,513 | ) | (20,731 | ) | ||||||||
Amortization of debt issuance costs | (417 | ) | (411 | ) | (1,660 | ) | (1,843 | ) | ||||||||
Other income (expense), net | 403 | (4,527 | ) | 2,815 | (5,174 | ) | ||||||||||
Other income (expense), net | 1,245 | (2,107 | ) | 7,216 | 8,079 | |||||||||||
Income (loss) before income taxes | 19,113 | (38,608 | ) | 62,383 | (27,035 | ) | ||||||||||
Income tax provision (benefit) | 5,826 | (4,739 | ) | 13,489 | (1,521 | ) | ||||||||||
Net income (loss) | $ | 13,287 | $ | (33,869 | ) | $ | 48,894 | $ | (25,514 | ) | ||||||
Earnings (loss) per share: | ||||||||||||||||
Basic | $ | 0.24 | $ | (0.60 | ) | $ | 0.87 | $ | (0.46 | ) | ||||||
Diluted | $ | 0.23 | $ | (0.60 | ) | $ | 0.86 | $ | (0.46 | ) | ||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 56,310 | 56,057 | 56,234 | 55,937 | ||||||||||||
Diluted | 56,659 | 56,057 | 56,561 | 55,937 | ||||||||||||
REPLIGEN CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited, amounts in thousands) | ||||||||
Year Ended December 31, | ||||||||
2025 | 2024 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 48,894 | $ | (25,514 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 78,745 | 69,673 | ||||||
Amortization of debt discount and issuance costs | 16,646 | 15,588 | ||||||
Inventory step-up amortization | 1,560 | — | ||||||
Stock-based compensation | 32,605 | 48,070 | ||||||
Deferred income taxes, net | (3,373 | ) | (16,790 | ) | ||||
Change in fair value of contingent consideration | (13,607 | ) | 3,191 | |||||
Net unrealized foreign exchange gain | (13,014 | ) | — | |||||
Operating lease right of use asset amortization | 18,211 | 16,889 | ||||||
Other adjustments and non-cash items | 1,630 | 3,366 | ||||||
Changes in operating assets and liabilities, excluding impact of acquisitions: | ||||||||
Accounts receivable | (17,165 | ) | (14,031 | ) | ||||
Inventories | (14,947 | ) | 56,895 | |||||
Prepaid expenses and other current assets | (7,756 | ) | 1,553 | |||||
Other noncurrent assets | (1,560 | ) | 471 | |||||
Accounts payable | (4,150 | ) | 12,898 | |||||
Accrued liabilities | 11,813 | 6,106 | ||||||
Operating lease liabilities | (15,556 | ) | (8,292 | ) | ||||
Noncurrent liabilities | (1,559 | ) | 5,321 | |||||
Total cash provided by operating activities | 117,417 | 175,394 | ||||||
Cash flows for investing activities | ||||||||
Acquisitions, net of cash acquired | (70,328 | ) | (54,765 | ) | ||||
Purchases of marketable securities | (200,257 | ) | — | |||||
Additions to capitalized software costs | (2,211 | ) | (4,222 | ) | ||||
Purchases of property, plant and equipment | (23,519 | ) | (25,677 | ) | ||||
Sale of property, plant and equipment | 238 | — | ||||||
Purchase of intellectual property | — | (3,006 | ) | |||||
Other investing activities | (2,397 | ) | 1,287 | |||||
Total cash used in investing activities | (298,474 | ) | (86,383 | ) | ||||
Cash flows for financing activities | ||||||||
Proceeds from exercise of stock options | 3,176 | 4,294 | ||||||
Payment of tax withholding obligation on vesting of restricted stock | (8,833 | ) | (9,882 | ) | ||||
Repayment of 2019 Notes | — | (69,939 | ) | |||||
Payment of earnout consideration | (9,548 | ) | (7,375 | ) | ||||
Total cash used in financing activities | (15,205 | ) | (82,902 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 4,928 | (77 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (191,334 | ) | 6,032 | |||||
Cash and cash equivalents, beginning of period | 757,355 | 751,323 | ||||||
Cash and cash equivalents, end of period | $ | 566,021 | $ | 757,355 | ||||
REPLIGEN CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited, amounts in thousands, except percentage and earnings per share data)
In all tables below, totals may not add due to rounding
Reconciliation of Total Revenue (GAAP) Growth to Organic Non-COVID Revenue Growth (Non-GAAP)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
TOTAL REPORTED REVENUE (GAAP) GROWTH | 18 | % | 1 | % | 16 | % | 0 | % | ||||||||
Acquisition revenue | (1 | )% | 0 | % | (1 | )% | (2 | )% | ||||||||
Currency exchange | (2 | )% | 2 | % | (1 | )% | 1 | % | ||||||||
ORGANIC REVENUE GROWTH (NON-GAAP) | 14 | % | 3 | % | 14 | % | (1 | )% | ||||||||
COVID revenue | 0 | % | 13 | % | 2 | % | 2 | % | ||||||||
ORGANIC NON-COVID REVENUE GROWTH (NON-GAAP) | 14 | % | 16 | % | 16 | % | 1 | % | ||||||||
Reconciliation of Income (Loss) from Operations (GAAP) to Adjusted Income from Operations (Non-GAAP)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS (GAAP) | $ | 17,868 | $ | (36,501 | ) | $ | 55,167 | $ | (35,114 | ) | ||||||
ADJUSTMENTS TO INCOME (LOSS) FROM OPERATIONS (GAAP): | ||||||||||||||||
Acquisition and integration costs | 3,346 | 2,450 | 18,067 | 7,347 | ||||||||||||
Restructuring activities and other related charges(1) | (1,138 | ) | 45,232 | (49 | ) | 47,171 | ||||||||||
Incremental costs attributed to CEO transition(2) | — | 16 | — | 22,362 | ||||||||||||
Intangible amortization | 9,769 | 8,689 | 39,057 | 34,615 | ||||||||||||
Contingent Consideration | (1,520 | ) | 3,191 | (13,607 | ) | 3,191 | ||||||||||
Inventory step-up charges | 491 | — | 1,560 | — | ||||||||||||
Other(4) | 921 | 1,922 | 1,628 | 2,508 | ||||||||||||
ADJUSTED INCOME FROM OPERATIONS (NON-GAAP) | $ | 29,737 | $ | 24,999 | $ | 101,823 | $ | 82,080 | ||||||||
OPERATING (EBIT) MARGIN (GAAP) | 9.0 | % | (21.8 | )% | 7.5 | % | (5.5 | )% | ||||||||
ADJUSTED OPERATING (EBIT) MARGIN (NON-GAAP) | 15.0 | % | 14.9 | % | 13.8 | % | 12.9 | % | ||||||||
Reconciliation of Operating (EBIT) Margin Growth to Organic Adjusted Operating Margin Growth (Non-GAAP)
Three Months Ended | Year Ended | |||||||
OPERATING (EBIT) MARGIN (GAAP) YEAR-OVER-YEAR CHANGE | 30.8 | % | 13.0 | % | ||||
Acquisition and integration costs | 0.2 | % | 1.3 | % | ||||
Restructuring activities and other related charges(1) | (27.6 | )% | (7.4 | )% | ||||
Incremental costs attributed to CEO transition(2) | (0.0 | )% | (3.5 | )% | ||||
Intangible amortization | (0.3 | )% | (0.2 | )% | ||||
Contingent Consideration | (2.7 | )% | (2.3 | )% | ||||
Inventory step-up charges | 0.2 | % | 0.2 | % | ||||
Other(4) | (0.7 | )% | (0.2 | )% | ||||
ADJUSTED OPERATING (EBIT) MARGIN (NON-GAAP) YEAR-OVER-YEAR CHANGE | 0.1 | % | 0.9 | % | ||||
Impact of mergers and acquisitions | 1.7 | % | 1.7 | % | ||||
Currency exchange | (0.4 | )% | (0.2 | )% | ||||
ORGANIC ADJUSTED OPERATING MARGIN (NON-GAAP) YEAR-OVER-YEAR CHANGE | 1.4 | % | 2.4 | % | ||||
Reconciliation of Net Income (Loss) (GAAP) to Adjusted Net Income (Non-GAAP)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
NET INCOME (LOSS) (GAAP) | $ | 13,287 | $ | (33,869 | ) | $ | 48,894 | $ | (25,514 | ) | ||||||
ADJUSTMENTS TO NET INCOME (LOSS) (GAAP): | ||||||||||||||||
Acquisition and integration costs | 3,346 | 2,450 | 18,067 | 7,347 | ||||||||||||
Restructuring activities and other related charges(1) | (1,138 | ) | 45,232 | (49 | ) | 46,937 | ||||||||||
Incremental costs attributed to CEO transition(2) | — | 16 | — | 22,362 | ||||||||||||
Intangible amortization | 9,769 | 8,689 | 39,057 | 34,615 | ||||||||||||
Contingent Consideration | (1,435 | ) | 3,191 | (16,720 | ) | 3,191 | ||||||||||
Inventory step-up charges | 491 | — | 1,560 | — | ||||||||||||
Non-cash interest expense | 3,990 | 3,681 | 15,471 | 14,291 | ||||||||||||
Amortization of debt issuance costs | 417 | 411 | 1,660 | 1,843 | ||||||||||||
Foreign currency impact of certain intercompany loans(3) | (867 | ) | 4,883 | (867 | ) | 5,509 | ||||||||||
Other(4) | 921 | 1,922 | 1,628 | 2,508 | ||||||||||||
Tax effect of non-GAAP charges | (1,094 | ) | (11,479 | ) | (11,756 | ) | (24,288 | ) | ||||||||
ADJUSTED NET INCOME (NON-GAAP) | $ | 27,687 | $ | 25,127 | $ | 96,945 | $ | 88,801 | ||||||||
NET INCOME (LOSS) MARGIN (GAAP) | 6.7 | % | (20.2 | )% | 6.6 | % | (4.0 | )% | ||||||||
ADJUSTED NET INCOME MARGIN (NON-GAAP) | 14.0 | % | 15.0 | % | 13.1 | % | 14.0 | % | ||||||||
Reconciliation of Earnings (Loss) Per Share (GAAP) to Adjusted Earnings Per Share (Non-GAAP)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
EARNINGS (LOSS) PER SHARE (GAAP) - DILUTED | $ | 0.23 | $ | (0.60 | ) | $ | 0.86 | $ | (0.46 | ) | ||||||
ADJUSTMENTS TO EARNINGS (LOSS) PER SHARE (GAAP) - DILUTED: | ||||||||||||||||
Acquisition and integration costs | 0.06 | 0.04 | 0.32 | 0.13 | ||||||||||||
Restructuring activities and other related charges(1) | (0.02 | ) | 0.80 | — | 0.83 | |||||||||||
Incremental costs attributed to CEO transition(2) | — | — | — | 0.40 | ||||||||||||
Intangible amortization | 0.17 | 0.15 | 0.69 | 0.61 | ||||||||||||
Contingent Consideration | (0.03 | ) | 0.06 | (0.30 | ) | 0.06 | ||||||||||
Inventory step-up charges | 0.01 | — | 0.03 | — | ||||||||||||
Non-cash interest expense | 0.07 | 0.07 | 0.27 | 0.25 | ||||||||||||
Amortization of debt issuance costs | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||
Foreign currency impact of certain intercompany loans(3) | (0.02 | ) | 0.09 | (0.02 | ) | 0.10 | ||||||||||
Other(4) | 0.02 | 0.03 | 0.03 | 0.04 | ||||||||||||
Tax effect of non-GAAP charges | (0.02 | ) | (0.21 | ) | (0.21 | ) | (0.41 | ) | ||||||||
ADJUSTED EARNINGS PER SHARE (NON-GAAP) - DILUTED(5) | $ | 0.49 | $ | 0.44 | $ | 1.71 | $ | 1.58 | ||||||||
Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (Non-GAAP)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
NET INCOME (LOSS) (GAAP) | $ | 13,287 | $ | (33,869 | ) | $ | 48,894 | $ | (25,514 | ) | ||||||
ADJUSTMENTS: | ||||||||||||||||
Investment income | (6,754 | ) | (8,293 | ) | (27,574 | ) | (35,827 | ) | ||||||||
Interest expense | 5,495 | 5,462 | 21,513 | 20,731 | ||||||||||||
Amortization of debt issuance costs | 417 | 411 | 1,660 | 1,843 | ||||||||||||
Income tax provision | 5,826 | (4,739 | ) | 13,489 | (1,521 | ) | ||||||||||
Depreciation | 10,183 | 9,670 | 39,689 | 34,967 | ||||||||||||
Intangible amortization | 9,769 | 8,717 | 39,057 | 34,726 | ||||||||||||
EBITDA (NON-GAAP) | $ | 38,223 | $ | (22,641 | ) | $ | 136,728 | $ | 29,405 | |||||||
OTHER ADJUSTMENTS: | ||||||||||||||||
Acquisition and integration costs | 3,346 | 2,450 | 18,067 | 7,347 | ||||||||||||
Restructuring activities and other related charges(1)(6) | (1,138 | ) | 45,232 | (49 | ) | 46,937 | ||||||||||
Incremental costs attributed to CEO transition(2) | — | 16 | — | 22,362 | ||||||||||||
Contingent Consideration | (1,435 | ) | 3,191 | (16,720 | ) | 3,191 | ||||||||||
Inventory step-up charges | 491 | — | 1,560 | — | ||||||||||||
Foreign currency impact of certain intercompany loans(3) | (867 | ) | 4,883 | (867 | ) | 5,509 | ||||||||||
Other(4) | 921 | 1,922 | 1,628 | 2,508 | ||||||||||||
ADJUSTED EBITDA (NON-GAAP) | $ | 39,541 | $ | 35,053 | $ | 140,347 | $ | 117,259 | ||||||||
NET INCOME (LOSS) MARGIN (GAAP) | 6.7 | % | (20.2 | )% | 6.6 | % | (4.0 | )% | ||||||||
ADJUSTED EBITDA MARGIN (NON-GAAP) | 20.0 | % | 20.9 | % | 19.0 | % | 18.5 | % | ||||||||
Reconciliation of Cost of Goods Sold (GAAP) to Adjusted Cost Goods Sold (Non-GAAP)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
COST OF GOODS SOLD (GAAP) | $ | 94,082 | $ | 128,706 | $ | 352,011 | $ | 359,794 | ||||||||
ADJUSTMENT TO COST OF GOODS SOLD (GAAP): | ||||||||||||||||
Acquisition and integration costs | (521 | ) | (533 | ) | (1,630 | ) | (822 | ) | ||||||||
Restructuring activities and other related charges(1) | 1,416 | (45,079 | ) | 2,217 | (44,029 | ) | ||||||||||
Intangible amortization | (276 | ) | (471 | ) | (1,023 | ) | (471 | ) | ||||||||
Inventory step-up charges | (491 | ) | — | (1,560 | ) | — | ||||||||||
ADJUSTED COST OF GOODS SOLD (NON-GAAP) | $ | 94,210 | $ | 82,623 | $ | 350,015 | $ | 314,472 | ||||||||
GROSS MARGIN (GAAP) | 52.5 | % | 23.2 | % | 52.3 | % | 43.3 | % | ||||||||
ADJUSTED GROSS MARGIN (NON-GAAP) | 52.4 | % | 50.7 | % | 52.6 | % | 50.4 | % | ||||||||
Reconciliation of R&D Expense (GAAP) to Adjusted R&D Expense (Non-GAAP)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
R&D EXPENSE (GAAP) | $ | 13,120 | $ | 11,677 | $ | 54,177 | $ | 43,200 | ||||||||
ADJUSTMENT TO R&D EXPENSE (GAAP): | ||||||||||||||||
Acquisition and integration costs | (315 | ) | (164 | ) | (1,996 | ) | (364 | ) | ||||||||
Restructuring activities and other related charges(1) | (58 | ) | — | (889 | ) | (449 | ) | |||||||||
Intangible amortization | (563 | ) | (121 | ) | (2,073 | ) | (121 | ) | ||||||||
ADJUSTED R&D EXPENSE (NON-GAAP) | $ | 12,184 | $ | 11,392 | $ | 49,219 | $ | 42,266 | ||||||||
Reconciliation of SG&A Expense (GAAP) to Adjusted SG&A Expense (Non-GAAP)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
SG&A EXPENSE (GAAP) | $ | 74,363 | $ | 60,474 | $ | 290,508 | $ | 263,368 | ||||||||
ADJUSTMENTS TO SG&A EXPENSE (GAAP): | ||||||||||||||||
Acquisition and integration costs | (2,510 | ) | (1,753 | ) | (14,441 | ) | (6,161 | ) | ||||||||
Restructuring activities and other related charges(1) | (220 | ) | (153 | ) | (1,279 | ) | (2,693 | ) | ||||||||
Incremental costs attributed to CEO transition(2) | — | (16 | ) | — | (22,362 | ) | ||||||||||
Intangible amortization | (8,930 | ) | (8,097 | ) | (35,961 | ) | (34,023 | ) | ||||||||
Other(4) | (921 | ) | (1,922 | ) | (1,628 | ) | (2,508 | ) | ||||||||
ADJUSTED SG&A EXPENSE (NON-GAAP) | $ | 61,782 | $ | 48,533 | $ | 237,199 | $ | 195,621 | ||||||||
FOOTNOTES FOR ALL TABLES ABOVE (amounts in thousands, except share data): | |||
(1) | In July 2023, we began restructuring activities to simplify and streamline our organization and strengthen the overall effectiveness of our operations. The Company continued further restructuring activities during 2025 including severance, employee-related and facility exit costs. Cost of goods sold includes the benefit received from the sale of inventory that had previously been reserved as part of the restructuring plan of $1,704 and $4,972 for the three and twelve months ended December 31, 2025, respectively. | ||
(2) | Includes $16 and $22,362, of incremental stock compensation expense, recorded during the three and twelve months ended December 31, 2024, respectively, attributable to the transition of the Company’s Chief Executive Officer (“CEO”) to Executive Chair of the Board announced by the Company on June 12, 2024. The incremental stock compensation expense was the result of the modification of the unvested equity awards held by the CEO immediately prior to the modification. This resulted in the revalue of his unvested awards and a change in his remaining requisite service period due to his change in duties upon transitioning to Executive Chair of the Board. | ||
(3) | During the three months ended December 31, 2025 and 2024, we recorded foreign currency (gains) and losses on certain intercompany loans of ($867) and $4,883, respectively, and ($867) and $5,509 for the twelve months ended December 31, 2025 and 2024, respectively. The impact is recorded in Other (expenses) income, net within the Consolidated Statements of Operations. | ||
(4) | Includes other expenses that are non-indicative of our ongoing performance and one-time events relating to a cybersecurity incident, net of insurance, and costs associated with the restatement of previously issued financial statements. | ||
(5) | GAAP loss per share - diluted for the three and twelve months ended December 31, 2024, was determined excluding the effect of dilutive shares as the impact of such shares would have been antidilutive due to the net loss for the period, while the adjusted earnings per share - diluted for the same period was determined based upon diluted shares. | ||
(6) | Excludes $19 of accelerated depreciation related to the restructuring plan for the twelve months ended December 31, 2024. This amount is included in the depreciation line item of this table for that period. | ||