Repligen opened fiscal 2026 with a strong first quarter, delivering $194 million of revenue (up 15% reported and 11% organic) and 160 basis points of adjusted operating margin expansion, with adjusted EPS up 23% to $0.48. Growth was broad-based across all customer segments and geographies, led by Process Analytics (50%+), services (30%+), and a near-doubling of China revenue, while emerging biotech grew over 20% for the fourth straight quarter and the high-probability funnel reached its highest level ever. Strategically, the company launched a transformation office targeting at least one additional point of annualized margin by end of 2027, divested the non-core loss-making Polymem business, and signed a multi-phase OEM partnership in China. Management reiterated 9%-13% organic growth, updated reported revenue guidance to $803M-$833M for the Polymem sale, and raised adjusted operating income and EPS guidance ($1.97-$2.05), noting no second-half acceleration is required to reach the midpoint, with gene therapy and a transitory ATF inventory headwind the main offsets.
Thank you, operator, and welcome everyone to our 2026 first quarter report. On this call, we will cover business highlights and financial performance for the three month period ended March 31st, 2026, and we'll provide financial guidance for the full year 2026. Joining us on the call today are Repligen's President and Chief Executive Officer, Olivier Loeillot, and our Chief Financial Officer, Jason Garland. As a reminder, the forward-looking statements that we make during this call, including those regarding our business goals and expectations for the financial performance of the company, are subject to risks and uncertainties that may cause actual events or results to differ.
Additional information concerning risks related to our business is included in our quarterly reports on Form 10-Q, our annual report on Form 10-K, our current reports, including the Form 8-K that we are filing today, and other filings that we make with the Securities and Exchange Commission. Today's comments reflect management's current views, which could change as a result of new information, future events, or otherwise. The company does not oblige or commit itself to update forward-looking statements except as required by law. During this call, we are providing non-GAAP financial results and guidance unless otherwise noted. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this morning, which is posted to Repligen's website and on sec.gov.
Adjusted non-GAAP figures in today's report include the following: organic revenue and/or revenue growth, cost of goods sold, gross profit and gross margin, operating expenses, including R&D and SG&A, income from operations and operating margin, other income or expense, tax rate on pre-tax income, net income, diluted earnings per share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin. These adjusted financial measures should not be viewed as an alternative to GAAP measures but are intended to best reflect the performance of our ongoing operations. With that, I'll turn the call over to Olivier.
Thank you, Jacob. Good morning, everyone, welcome to our 2026 first quarter call. We are delighted to share our first quarter 2026 results. Great execution once again by our team enabled us to deliver 15% reported revenue growth or 11% organic and 160 basis points of adjusted operating margin expansion. Mid-teens top-line growth, coupled with disciplined cost management, resulted in margins outperforming expectations. In addition to our strong financial performance in the quarter, we advanced several key strategic priorities. This includes the launch of our transformation office, the associated sale of the Polymem business, and a new partnership in China. This OEM relationship advances our strategy in the country where we are seeing significant growth again. I'll touch on each of these initiatives in more detail shortly.
As I reflect on our end markets and company today, it's encouraging to see the strength we're seeing across all of our customer segments. The talented and experienced team we have assembled is executing fiercely on our differentiated strategy. This has resulted in a very rich, high-probability opportunity funnel that just needs to be coupled with faster customer decision-making. We did see encouraging signs in the first quarter and remain convinced the capital equipment tap will open. We delivered $194 million of first quarter revenue, driven by healthy demand across our broad portfolio and all geographies. Analytics led the way with 50%+ growth, but all of our franchises grew nicely again in the first quarter. Consumables, including proteins, grew double digits, which was coupled with solid capital equipment growth, and services remained a standout with 30%+ growth.
Capital equipment demand benefited from strength in analytics, mixers, and easier comps. We also saw growth across our diversified customer base and all geographies. Order trends were solid in the first quarter with a significant pickup in March and included some conversion of our robust capital equipment funnel. Our first quarter results and these recent order trends reinforce our confidence in our full-year revenue outlook. Jason will provide more details. We are reiterating our expectation for 9%-13% organic growth while updating our reported revenue guidance to reflect the sale of our non-core and low-margin Polymem business. This reduces our full-year revenue outlook by $7 million but improves our margin outlook. In addition, given our strong first quarter performance, we are increasing our adjusted earnings per share guidance for the full year.
We remain excited about our differentiated product portfolio, the global team we've built, and the strategy we're executing. As we look ahead to the next several years, we see a number of opportunities across our portfolio that position us for robust growth and allow us to continue to outpace the market. Looking at our performance by end market, we saw widespread strength across our customer base. CDMO revenues grew mid-teens, with similar growth across both Tier 1 and Tier 2. Biopharma revenues also grew despite a very difficult comparison. We saw notable growth outside of large pharma, including 20% plus growth from emerging biotechs. We continue to be encouraged by growth from this customer base, though demand remains below historical levels. OEM and integrator demand was very robust, given growth in fluid management. From a geographic point of view, we saw strengths across all regions led by Asia Pacific.
This included a near doubling of revenues in China with our best revenue quarter in the country in over two years. This is a testament to the team we've put in place. Asia Pacific remains a key strategic region, and I will discuss the progress on our strategy in China shortly. As expected, new modalities were dilutive to growth, given the gene therapy headwind we previously discussed. We continue to see healthy growth in cell therapy and also in gene therapy when excluding that specific headwind. I wanted to update you on the following three strategic initiatives. First, as we have emphasized recently, we are committed to expanding margins while balancing the efforts needed to support future growth.
In an effort to accelerate both of our Fit for Growth journey and our path to 30% adjusted EBITDA margin by 2030, we have formed a transformation office that will ensure we have the right prioritization and resources focused on these critical initiatives. Key focus areas under this program include efforts to optimize our manufacturing footprint for increased cost efficiency, improving the profitability of certain product lines through targeted productivity and rationalization, continuously improving service to our customers, and efforts to capture the value of our differentiated products, and finally, acceleration of our IT modernization and AI implementation across all functions. Jason will walk you through more details, but in terms of financial impact, we estimate this effort should result in at least 1 point of annualized margin benefit by the end of 2027.
We remain committed to our goal of doubling the business and expanding margin while further progressing our Fit for Growth capabilities. The transformation office will enable us to achieve and accelerate all of this. Most of these initiatives have just kicked off. We're happy to share that as part of this effort, on March 30th, we divested the Polymem operation in France for nominal proceeds. While this facility was a key contributor to Repligen's ability to supply product during the pandemic, the business has since reverted to non-core sales outside bioprocessing and has operated at a net loss. In 2025, Polymem generated $7 million of revenue and an adjusted operating loss. The new owner will offer synergies in the common market in which they operate. Second, we remain more excited than ever by our growth opportunity in Asia.
In fact, Jason and I recently returned from a week-long visit to the region where we met with both key customers and our Asia leadership team. We are building a great team and continuing to gain traction with key customers in the region. We are also thrilled to announce that while in the region, we signed a critical partnership to expand our capabilities and local presence in China. The partnership outlines an OEM relationship that will increase our competitiveness and access to local manufacturing beginning in 2027. It will be a multi-phase and multi-product arrangement that we expect to expand over the coming years. After our trip, we are more conviction than ever that China will be a meaningful player in biopharma for years to come. Finally, I want to comment on our IT investments and digitization journey.
On our last call, we mentioned investment in our IT organization in 2026 as part of our Fit for Growth journey. We have made key additions to our team this year, including new data management and AI experts. We have implemented AI across a variety of functions, including, but not limited to legal, commercial, and supply chain. As part of our transformation office, we are also working to further optimize our data infrastructure, which will allow us to better implement AI in the coming years. To support our customers, our analytics franchise is well-positioned for an increasingly digital environment. Our PAT product portfolio allows for the collection of both upstream and downstream data in real time. We have integrated our FlowVPX into our downstream filtration system and are working to replicate this on the upstream side.
We announced a partnership with Novasign last year and are working to integrate their digital twin capabilities into our next-generation small-scale filtration systems. We see digitization as a multi-year journey, and it remains a key strategic focus area for our company. Before I turn the call over to Jason, I'll provide some more detail on our franchise-level performance. Starting with filtration. Revenue grew mid-single digits on a reported basis in the quarter, driven by fluid management, ATF, and other consumables. Excluding the gene therapy headwind, this franchise would have delivered double-digit growth. With the sale of Polymem, we now expect filtration growth to be roughly mid-single digits in 2026 on a reported basis. This also contemplates a moderated ATF outlook in 2026 due to customer-specific timing dynamics that are expected to be a tailwind in 2027.
A result, we see ATF returning to strong growth in 2027 and beyond. We continue to see overall healthy consumable demand across our portfolio. We remain extremely confident in our process intensification leadership position. After over a decade of seeding our ATF technology, we have built a high amount of trust from the Biopharma industry. We will continue to prioritize further innovation and advancements that will allow us to remain the industry's partner in process intensification. Chromatography revenue increased over 25%, driven by growth in OPUS columns. We continue to win new customers globally as they appreciate the plug-and-play convenience of pre-packed columns. Given the traction we are seeing in OPUS, we now expect 20%+ growth in chromatography in 2026. With this outlook, we do expect a slightly higher mix of chromatography revenue versus our initial expectations.
It was a great quarter in proteins with mid-teens growth on top of a very strong prior year comparison. We saw healthy demand across our offerings led by our ligands, reflecting the benefits of the strategy we put in place to control our own destiny in proteins. We expect protein growth of at least low double digits for the year. Our analytics franchise had another phenomenal quarter with 50%+ growth. This was led by notable strength in our downstream analytics offering, which had a record quarter. This benefited from strong demand for our SoloVPE PLUS, including new placements and upgrades. We continue to assume analytics growth of 20%+, given momentum in downstream demand and a growing contribution throughout the year from our upstream analytics offering. To wrap up, we are very pleased with our start to 2026.
Thank you, Olivier, and good morning, everyone. Today, we are reporting our financial results for the first quarter of 2026 and providing updated guidance for the full year 2026. Unless otherwise noted, all financial measures discussed reflect adjusted non-GAAP measures. As shared in our press release this morning, we delivered first quarter revenue of $194 million, a reported year-over-year increase of 15%. This is an 11% organic growth, excluding the impact of acquisitions and foreign exchange. Foreign currency contributed three points of growth, and we had two months of inorganic contribution from our upstream analytics acquisition. As Olivier offered details on our product franchise performance, I'll provide more color on our regional performance.
Starting with quarterly revenue mix, North America represented approximately 46% of our total, EMEA represented 37%, and Asia Pacific and the rest of the world represented approximately 17%. North America grew mid-single digits, driven by OPUS and analytics. EMEA grew more than 20%, driven by proteins and OPUS. Asia Pacific grew more than 25%, driven by ATFs, mixers, and analytics. As previously mentioned, we had very strong growth in China. Transitioning to profit and margins, first quarter adjusted gross profit was $108 million, and adjusted gross margin was 55.5%. This was 180 basis points of margin expansion versus last year. The year-over-year increase was driven primarily by volume leverage, pricing execution, and favorable product mix, all of which more than offset inflation and tariffs.
The favorable mix was driven by growth in our Analytics business and certain accretive filtration products. In addition, first quarter gross margin also benefited from cost absorption timing associated with production levels required to support the sales ramp through the year. We expect this benefit to normalize over the remainder of 2026. Continuing through the P&L, our adjusted income from operations was $30 million in the first quarter, up 28% year-over-year on a reported and organic basis. OpEx grew 11% on an organic basis. We remain thoughtful about balancing investments in the business while expanding margin.
We expect some additional investment in the second quarter. This translated to an adjusted operating margin of 15.4% in the first quarter, which was an increase of 160 basis points year-over-year on a reported basis, and 200 basis points of margin expansion excluding M&A and the impact of foreign currency. Adjusted EBITDA was $40 million in the quarter, or just under 21% adjusted EBITDA margin. Moving to the bottom line, adjusted net income was $27 million, a 22% year-over-year increase. Higher adjusted operating income was offset by slightly lower interest income on declining interest rates. Our first quarter adjusted effective tax rate was 22%, which starts the year on the low end of our full year guidance, which remains unchanged.
Adjusted fully diluted earnings per share for the first quarter was $0.48 compared to $0.39 in the same period in 2025, or an increase of 23%. Finally, our cash and marketable securities position at the end of the first quarter was $785 million, up $17 million sequentially from the fourth quarter. This was driven by $28 million of strong cash flow from operations, offset by $5 million of CapEx in the quarter. We remain focused on optimizing our working capital to drive improved cash flow conversion. I will now speak to adjusted financial guidance. As Olivier mentioned, we are reiterating our organic growth guidance for full year 2026, while updating guidance for the sale of Polymem and our first quarter results.
Our guidance also assumes a couple million dollars of tariff surcharges in 2026. We are now guiding $803 million-$833 million of revenue, or 9%-13% growth on both a reported and organic basis. Our update in guidance now reflects only one quarter of revenue from Polymem, which removes approximately $7 million of revenue from the full year previously included in guidance. This continues to assume just under a point of benefit from foreign currency, which we realized in the first quarter. Our reported growth of 9%-13% assumes the following: mid-single-digit growth in filtration, greater than 20% growth in chromatography, proteins growth greater than low double digits, and 20%+ growth in analytics.
We now expect 110-160 basis points of gross margin expansion for the year. This assumes a slight benefit from the divestiture, partially offset by higher chromatography mix and limited impact from the conflict in the Middle East. With the strong Q1 performance, the sale of Polymem, and judicious management of OpEx, we are raising our adjusted income guidance. We now expect $124 million-$132 million of adjusted operating income. This implies 160-200 basis points of operating margin expansion, which represents a 30 basis point increase at the midpoint versus our prior guidance. Continuing through the P&L, we now assume $90 million of adjusted other income and continue to assume a 22%-23% adjusted effective tax rate.
Putting this together, we expect adjusted fully diluted earnings per share to be between $1.97 and $2.05. This is up $0.26-$0.34 versus 2025, or up 18% at the midpoint, and $0.04 higher than our prior guidance at both the low and high ends of the range. To assist with the quarterly cadence, we expect Q2 organic revenue growth to be similar to the first quarter. As a result, our guidance does not require a second half acceleration to achieve the midpoint of our full year outlook. We expect second quarter gross margin to be slightly below our full year guidance range and OpEx to pick up slightly sequentially following our disciplined OpEx control in the first quarter. We expect second half OpEx to be similar to 2Q.
As a result, we expect solid operating margin expansion in the second quarter, while the third quarter will likely represent the lowest margin quarter of the year. Our balance sheet remained strong as we ended the first quarter with $785 million of cash and marketable securities. We will remain prudent in our spending while maintaining substantial dry powder for potential acquisitions. We expect CapEx spend to be approximately 3%-4% of 2026 revenue. Before we wrap, I wanted to briefly follow up on the transformation office that Olivier shared earlier. We are thrilled to establish a team of both internal and external experts to drive focused improvements in areas that will drive our Fit for Growth capabilities and margin expansion. This is a change in mindset that reinforces the structured framework is required to drive margin expansion beyond volume leverage.
As Olivier shared, we expect to see meaningful benefits from the initiatives. We are still finalizing the detailed scopes and benefits, expect to generate at least one point of annualized margin benefit by the end of next year and continue into 2028 and beyond. We will see benefits in both gross margin and at the EBIT and EBITDA level. We see this effort accelerating our path to our 2030 EBITDA target. In other words, our path to reaching 30% adjusted EBITDA margins will be less weighted to the out years than previously communicated. We expect non-recurring charges of approximately $5 million-$6 million through 2027 associated with this effort. These will be excluded from our adjusted non-GAAP results. Finally, Olivier and I would like to thank our Repligen teammates for delivering a strong start to 2026.
We continue to be energized by the opportunities ahead, and we are focused on advancing our strategic efforts in 2026. With that, I'll turn the call back to the operator to open the line for questions.