BIOLIFE SOLUTIONS INC Q3 FY2025 earnings call

• Delivered a strong quarter with cell processing revenue up 33% YOY and total revenue up 31% YOY.
• Adjusted EBITDA margin expanded to 28%, showing operating leverage from streamlined operations and focused product portfolio.
• Sold evo Cold Chain logistics product line for ~$25 million in cash, strengthening balance sheet to ~$125 million in cash and marketable securities.
• BPM products embedded in 16 approved therapies and utilized in over 250 commercially sponsored CGT clinical trials in the U.S. with over a 70% share.
• Focus on cross-selling other cell processing tools to marquee BPM customers, with potential to increase revenue per patient dose 2x to 3x.

Cell processing revenue reached $25.4 million in the third quarter, a 33% year-over-year increase, driving a 31% increase in total revenue for the quarter. BPM products represented more than 80% of total cell processing revenue. Adjusted EBITDA margin expanded 500 basis points year-over-year to 28%. Cell processing revenue contribution to total revenue was significant, with the growth reflecting sustained strength across the biopreservation media franchise and broader cell processing portfolio.

• Raised full-year 2025 cell processing revenue guidance to $93 million to $94 million (26%-28% YOY growth).
• Adjusted total revenue guidance for 2025 is $95 million to $96 million (27%-29% like-for-like growth) after adjusting for evo sale.
• Anticipate sequential revenue decrease in Q4 2025 due to timing of a $1.3 million BPM product shipment moved to Q3.
• Expect adjusted gross margin for full year to be in the mid-60s, reduced GAAP net loss, and expanded adjusted EBITDA margin in 2025.

Q: Congrats on the quarter. What's pricing like? What was it in 3 or 9 months year-to-date? And what do you anticipate pricing to be in years ahead?

A: Roderick de Greef said expecting to increase prices in '26 between 4% and 6% depending on the SKU; Troy Wichterman said had price growth higher than list price increases due to customer contract negotiations in year-to-date Q3 Q: And on your direct sales, I know you're trying to sell a variety of products now. What have you been doing with headcount, non-media sales? Could you give us color about do you continue to increase that direct sales level in the future quite a bit? Where are you with headcount to give us a gauge of kind of what your efforts are maybe headcount versus a year ago on direct sales?

A: Roderick de Greef said added about 1 person focused on cross-selling, total of about 6; suspects will add some in 2026, sales team focuses on top 20 direct customers and 30% of biopreservation media clinical trials not currently spec-ed in Q: Rod, maybe one for you. Just in terms of what you saw in 3Q, obviously, it sounds like the commercial was chugging along nicely. Would love to just get a little bit more color. It sounds like trends were solid across the broader cell processing tools portfolio, albeit that's a smaller piece. And then just curious on the clinical side. We've seen a couple of months here of a little bit better biotech funding, but would love a little more color on what your discussions are like there as well?

A: Roderick de Greef said growth across customer segments, core commercial customers driving overall growth; key distributor not raising red flags about funding issues, government shutdown impact expected small and built into guidance Q: I'll add my congrats as well. Maybe just a few for me. Now that the evo platform has gone and kind of removed from numbers, do you anticipate any lingering costs in Q4 and into FY '26? And then secondly, this is essentially the last piece of the strategic review puzzle that's now complete. So, what are you thinking in terms of capital allocation with the cash that you have on your balance sheet?

A: Troy Wichterman said Q4 results can use Q3 earnings release as baseline, no lingering OpEx; Roderick de Greef said interested in exploring adjacencies related to existing product line and dovetailing with core competencies, disciplined about capital allocation to avoid negative impact on financial profile Q: Nice to see the steady demand across the segment and the new guidance, too. I kind of just piggybacking on some of the earlier questions here. Just trying to get a little bit better sense for the really next wave of growth for you all. I guess in conversations with customers, how are you kind of feeling like a potentially more stable funding environment for pharma and biotech might impact their risk appetite to either expand some of these use cases for CNGT or even maybe rotate out of these modalities altogether?

A: Roderick de Greef said growth in '26 driven by commercial customers, most have deep clinical pipelines with 30 Phase III trials, expecting good portion to cross the line over next 24 months adding to growth Q: Rod, on some prior calls, there had been some discussion around you had a customer evaluating the CryoCase. Any update on how that project is going?

A: Roderick de Greef said project is ongoing, getting closer to customer commitment; product development team working with customer's process development folks, close to commercial discussion on commitment level before expanding resources Q: And then just to follow up on a prior question regarding the strategic review process being complete. So Thaw is with us, right? Thaw is not going anywhere, just to confirm?

A: Roderick de Greef said Thaw was never on the table, Thaw is complementary to CryoCase, with ongoing work to make Thaw device work with CryoCase for automated thawing