What Management Said

Read the full Q2 2025 transcript ↗

On this call, we will cover business highlights and financial performance for the three-month period ending June 30, 2025, and we'll provide financial guidance for the full year 2025. During this call, we are providing non-GAAP financial results and guidance unless otherwise noted. We had another outstanding quarter in Q2 with 17% organic non-COVID growth, the highest growth rate since 2022. There were highlights across the portfolio led by Chromatography, while Filtration posted mid-teens non-COVID growth.

Orders grew over 20% year-over-year and high teens organically, led by strength in Filtration. This marks the eighth quarter in a row of Orders exceeding non-COVID Revenue and the fifth quarter of sequential order growth. We believe this broad-based demand across our diversified portfolio and customer base highlights our ability to outpace industry growth. As a result, we are raising the Midpoint of our organic growth Guidance.

I'll speak to this more in a moment, but we believe our Q2 results highlight that by executing on our innovation and commercial strategy, we can deliver differentiated growth. Unpacking our performance by end-market, Q2 2025 BioPharma revenues grew 20% year-over-year and orders grew over 20%. Both revenues and orders from BioPharma and CDMOs are up greater than 20%, underscoring the continued momentum from our end markets. Consumable revenue and orders, which exclude Proteins, grew greater than 20% year-over-year, a record revenue quarter on a non-COVID basis.

What went well
  • Delivered 17% organic non-COVID growth in Q2 with $182 million of revenue (15% reported), the highest growth rate since 2022, led by Chromatography.
  • Orders grew over 20% year-over-year (high teens organically), marking the eighth quarter in a row of orders exceeding non-COVID revenue and the fifth quarter of sequential order growth.
  • Capital equipment revenue returned to growth in the high teens while orders grew greater than 20%, driven by traction in both ATF and Downstream Systems.
  • China orders rebounded north of 40% year-over-year and more than doubled sequentially, an encouraging early win from new regional leadership.
  • Both biopharma and CDMO revenues and orders grew greater than 20%, and APAC orders outside China nearly doubled sequentially.
What went wrong
  • Adjusted operating margin declined 80 basis points year-over-year to 12% due to COVID and mix headwinds plus a point of recent-acquisition dilution.
  • Gross margin of 51.1% was flat year-over-year as a 3-point mix headwind from higher Repligen-procured Opus resin and a one-point prior-year COVID benefit offset volume and productivity.
  • Adjusted EPS of $0.37 fell 6% year-over-year, and adjusted net income declined $1 million, affected by last year's high-margin COVID business, lower interest income, and higher taxes.
  • A gene therapy (Sarepta) platform headwind drove a 1% guidance headwind, with emerging biotech orders remaining muted and new modality demand assumed muted in the second half.

Guidance Changes

MetricPeriodCurrent guidance
RevenueFY2025$715M-$735M (up $17.5M at midpoint)
Organic revenue growthFY202510.5%-13.5% (12.5%-15.5% organic non-COVID)
Adjusted gross marginFY202552%-53% (160-260 bps expansion)
Adjusted income from operationsFY2025$98M-$103M (up $2M at midpoint)
Adjusted operating marginFY202513.5%-14.5% (maintained)
Chromatography growthFY2025greater than 20%

Performance Breakdown

MetricYoYNote
Revenue +15% reported / +17% organic non-COVID Broad-based demand led by Chromatography with mid-teens Filtration; acquisitions added ~2 points and FX ~2 points.
Capital equipment high teens revenue / orders +20%+ Q1 funnel converted to orders and revenue, driven by differentiated ATF and Downstream Systems with integrated PAT technologies.
Biopharma revenue +20% Recent wins at large pharma accounts as Repligen cross-sells its entire portfolio.
Gross margin flat at 51.1% Strong volume and productivity offset by a 3-point mix headwind from Opus resin pass-through and a one-point prior-year COVID benefit.
Adjusted operating margin -80 bps to 12% COVID and mix headwinds plus a point from recent acquisitions, more than offsetting price, volume, and productivity benefits.
Adjusted EPS -6% to $0.37 Higher operating income offset by $3 million lower interest income and higher tax provisions; affected by last year's high-margin COVID business.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Strategic plan / doublingFramework to outpace market by 5%Completed annual strategic planning; path to doubling the company over the medium term (typically five years) with only modest M&A assumptions, while driving gross margin expansion and operating leverage—
ChinaSeveral difficult quartersOrders rebounded north of 40% and more than doubled sequentially; some couple-million pull-forward likely, but new leadership and heavy investment underpin optimism for return to growth in 2026—
New modalities / gene therapyAAV roughly two-thirds of ~18% new-modality revenueNew modalities now 17% of sales; AAV component lower than previously estimated; gene therapy (Sarepta) platform a 1% headwind, with strength shifting to cell therapy and ADCs—
Systems strategy / digitizationEmbarked on systems journey years agoPortfolio spans small to larger-scale systems with integrated Process Analytics; ~25% of systems sold this year include FlowVPX; plan to run the same playbook with 908 Devices upstream—

Q&A Summary

How much of the order-book strength is a pull-forward from customers manufacturing ahead of tariffs, and what are you seeing on clinical versus commercial?
Very little pull-forward seen apart from China, where maybe a couple of million was pulled forward amid early-quarter tariff uncertainty. Outside China, essentially none; Repligen is more clinical than commercial. The business was about 35% commercial and 65% clinical last year, with the commercial share likely higher now given ATF, Filtration and Fluid Management, and key-account traction, though updated only once per year.
Can you size your AAV/gene therapy exposure and how to think about that customer into 2026?
Repligen typically does not comment on specific customers but, given headlines, noted the Sarepta platform contributed $10 million of first-half revenue plus $3 million recognized in July, with minimal incremental revenue assumed for the rest of 2025 (a 1% headwind). They declined to guide 2026 or comment on the specific program, noting new modalities remain important (10% first-half growth versus 15% company growth) with strength shifting to cell therapy and ADCs.
Does the 5% above-market growth framework hold even if new modalities remain under sustained pressure, and what is market growth?
Yes. They estimate the bioprocessing market grows 8%-12% (8% a tax year, 12% a good year) and is nearly back to pre-COVID levels. With every franchise performing well and a diversified approach across modalities, customers, and programs (20+ new-modality customers each over $1 million), they are confident in delivering 5% above market even with gene therapy headwinds, offset by cell therapy and ADC strength.
Did you see any pause in equipment orders due to global trade uncertainty?
Not really; the anomaly was Q1 when customers delayed equipment decisions, while Q2 saw a big difference as the strong funnel converted. Systems are highly differentiated (about 25% include FlowVPX) and Repligen has a small market share, making faster growth easier. Growth was consistent across all three regions with no specific behavior from U.S. or Asia customers tied to onshoring.
What did the strategy session reveal about margin trajectory, and what were the quarter's margin moving parts?
The strat plan sees a path to margin expansion year-over-year toward the 30% EBITDA target over five years via productivity, volume leverage, and modest pricing. For the quarter, a high level of Chromatography/Opus resin pass-through created 300-350 bps of sequential operating-margin pressure, plus a full quarter of 908 Devices consolidation; FX helped and tariffs were a slight drag. They expect ~100 bps sequential gross margin pickup in Q3 and another ~100 bps in Q4 on higher volume, with OpEx flattish.

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Q2 2025 call
Reported 2025-07-29 · figures from the Repligen Corp Q2 2025 earnings call.

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