What Management Said

Read the full Q3 2025 transcript ↗

On this call, we will cover business highlights and financial performance for the three-month period ended September 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 quarter three with 18% organic growth. This quarter, every franchise grew double digits, which is a testament to our differentiated growth portfolio and diversified customer base.

We saw strength across our extensive customer base as both pharma and CDMOs grew over 20%, and all geographies grew double digits. The continued growth from CDMOs is very encouraging as it reflects the health of the ecosystem from a franchise perspective. Process Analytics led the way with over 50% growth, including more than 30% growth at CTECH, while Filtration grew over 20%. Consumable demand remained very robust with greater than 20% growth in the quarter, while Capital Equipment had another strong quarter with over 20% growth.

The better than expected performance in Process Analytics and Proteins this quarter underscores that growth opportunities exist across our entire portfolio driven by our innovation engine. In particular, Analytics revenue growth was aided by the launch of SoloVPE PLUS earlier this year. Transitioning to orders, total company orders grew sequentially for the sixth straight quarter and grew over 20% year-over-year, including double digit order growth across all of our franchises. With customer ordering patterns back to historical trends, we believe quarterly orders are a less relevant metric and plan to provide less detail around orders going forward.

What went well
  • Delivered another outstanding quarter with 18% organic growth and $189 million of revenue (22% reported), the fourth straight quarter of 14% or better organic non-COVID growth.
  • Every franchise grew double digits, with Process Analytics leading at over 50% growth (including more than 30% at CTECH) and Filtration over 20%.
  • Total company orders grew sequentially for the sixth straight quarter and over 20% year-over-year, with double-digit order growth across all franchises.
  • Emerging biotech revenue reached its highest level in nearly three years, and Asia Pacific grew nearly 50% year-over-year.
  • Adjusted gross margin of 53.3% expanded 260 basis points year-over-year and 210 basis points sequentially, with incredibly strong operating cash flow lifting cash to $749 million.
What went wrong
  • Adjusted operating margin declined 70 basis points year-over-year to 14.2%, largely due to M&A dilution.
  • The quarter included about $2 million of one-time SG&A expenses, primarily from leadership changes in the Fit for Growth journey, that will not repeat in Q4.
  • Adjusted EBITDA margin declined 160 basis points year-over-year, including a $1 million headwind from foreign currency transaction losses, and EBIT margin guidance was narrowed to the bottom end of prior range.
  • China orders were softer in the quarter even as revenue returned to growth, and a gene therapy platform headwind weighs on Q4 filtration (~3 points).

Guidance Changes

MetricPeriodCurrent guidance
RevenueFY2025$729M-$737M (up $8M at midpoint)
Organic revenue growthFY202512%-13.5% (organic), 14%-15.5% organic non-COVID; midpoint up 75 bps
Adjusted gross marginFY202552%-53% (unchanged, ~210 bps expansion at midpoint)
Adjusted effective tax rateFY202521%-22% (~100 bps lower)
Analytics growthFY2025north of 30%
Proteins growthFY202515%-20%

Performance Breakdown

MetricYoYNote
Revenue +22% reported / +18% organic Broad strength across franchises, customers, and geographies; acquisitions added ~2 points and FX ~2 points.
Process Analytics +50%+ SoloVPE PLUS launch driving a multi-year upgrade cycle; CTECH grew more than 30%; strong consumables and services.
Asia Pacific nearly +50% Driven by Filtration and Fluid Management, analytics, and ATF; China returned to revenue growth off a low base.
Adjusted gross margin +260 bps to 53.3% Volume leverage, price, and productivity year-over-year; sequential benefit from improved mix (normalized Opus resin) and proteins growth.
Adjusted operating margin -70 bps to 14.2% Largely M&A dilution, plus ~$2 million of one-time SG&A from leadership changes and continued strategic investments.
Adjusted EPS +$0.03 to $0.46 Higher operating income offset by $3 million of lower interest income.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Orders metric disclosureProvided detailed quarterly order commentaryWith ordering patterns back to historical trends, quarterly orders seen as less relevant; plan to provide less detail going forward while remaining transparent on trends—
Digitization / PATDigitization a key pillar; integrating 908 Devices upstream measurementsSuccessful inline integration of CTECH FlowVPX into downstream TFF systems for real-time monitoring; partnership with Novasign for digital twins; progressing on combining ATF with Maverick—
China and onshoringChina difficult; investing in new leadershipChina returned to revenue growth off a low base; receiving RFPs for large hardware; first onshoring orders expected second half of 2026, sales 2027-2028—
ATF blockbusterWon the blockbuster ATF project about a year agoDelivered the hardware toward end of Q3; consumable revenue timing uncertain, likely mid-next-year rather than Q4, with a long runway across 50+ late-stage/commercial drugs—

Q&A Summary

What was the cadence of order momentum through and out of the quarter, and how does it position you into next year?
Orders grew more than 20% for the second quarter in a row and sequentially for the sixth straight quarter, with every franchise growing double digits and no real change between July, August, and September. The business is back to operating in a very normal environment; biopharma recovered first, then CDMOs, and small biotech recovered nicely this quarter to its highest level in three years. China grew in sales though orders were softer; growth expected to return there in 2026.
How do you reconcile the sales guidance increase with narrowing EBIT margin to the bottom of the prior guide?
Overall happy with margin performance; gross margin moves with quarterly mix and is up 230 bps year-to-date. In the quarter operating income was up about 20% ex-M&A and FX versus ~18% revenue, getting leverage. The full sales increase did not drop through because of ~$2 million of one-time operating expenses (leadership changes for Fit for Growth), some FX pressure, and continued infrastructure and operations investments; EPS dropped only about a penny at midpoint, reflecting a balanced long-term view.
How is Repligen positioned to participate in larger-scale onshoring projects relative to a few years ago?
The big difference versus two to three years ago is that Repligen has become a broad hardware actor now receiving RFPs for large hardware investments worldwide, with a differentiated portfolio combined with its PAT technology. First onshoring orders are expected toward the second half of 2026 and sales from 2027-2028 onward.
Will the blockbuster ATF consumable revenue fall in Q4 or 1Q26, and what about emerging biotech trends?
Timing is uncertain and depends on how long the customer takes to commission the line; not likely Q4, more likely around mid-next-year. ATF has a long runway with 50+ late-stage/commercial drugs designed in. Emerging biotech rebounded to its highest level in three years, connected to biotech funding rising from EUR 9 billion in Q2 to EUR 13 billion in Q3 and to increased pharma M&A of small/mid biotechs, though it is less than 10% of sales and too early to call a trend.
Was the strong equipment performance driven by ATF placements or broad-based, and how should we think about 2026 consumable pull-through?
Capital equipment revenue grew more than 20% with orders up high teens, driven mainly by ATF and analytical equipment but broad-based year-to-date including downstream hardware. About one in four downstream systems is now paired with PAT technologies, a key differentiator. The specific ATF blockbuster was only a small part of the growth and would not have changed the overall picture (specific consumable pull-through numbers not provided).

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Q3 2025 call
Reported 2025-10-28 · figures from the Repligen Corp Q3 2025 earnings call.

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