BIOLIFE SOLUTIONS INC Q4 FY2025 earnings call

• 2025 was a strong year with double-digit revenue growth, operating margin expansion, and improved profitability. • Exited 2025 simpler, more focused, and structurally stronger after divesting the evil product line. • Streamlined portfolio centered on market-leading consumables and growth from commercial CGT customers. • Implemented ERP manufacturing modules in February with no disruption to operations. • BPM product line had broad-based growth across the cell processing tools portfolio in Q4. • Evaluating cross-sell opportunities to increase revenue per patient dose and portfolio adjacencies like cytokines through a partnership with QKIND.

Total revenue grew 29% to 96 million in 2025 compared to 2024. In Q4 2025, total revenue reached 24.8 million, increasing 20% year over year. The BPM product line accounted for approximately 85% of total revenue in Q4. Adjusted EBITDA for Q4 2025 was 6.9 million, or 28% of revenue, and for full year 2025 was 25 million, or 26% of revenue. Adjusted gross margin for Q4 2025 was 15.8 million or 64% compared with 14 million or 67% in the prior year. Full year adjusted gross margin was 63.2 million or 66% compared with 51.4 million or 69% in the prior year. Adjusted operating income for Q4 2025 was 0.9 million compared with an adjusted operating loss of 0.2 million in Q4 2024. Full year adjusted operating income was 2.9 million compared to an adjusted operating loss of 2.6 million in the prior year. Adjusted net income was 1.9 million in Q4 compared to an adjusted net loss of 0.1 million in Q4 of the prior year. Adjusted net income for the full year was 6.3 million compared to an adjusted net loss of 2.9 million in the prior year.

• 2026 revenue is expected to be between $112.5 million and $115 million, representing 17% to 20% growth. • Expect gap and adjusted gross margin for the full year to be in the mid-60s. • Anticipate achieving full-year positive gap net income and further expansion of adjusted EBITDA margins compared to 2025. • The primary driver of growth in 2026 is continued growth from commercial customers.

Q: Maybe just to kick off for the guide, any more color you can provide in terms of assumptions between commercial and clinical? Rod, I think you said commercial went from low 40s to the mix to about 50. Can we see a similar magnitude of uptick in 26 on the commercial side? And then just on the clinical side, are you starting to see some of the positive biotech funding data show up in activity levels or orders from customers?

A: Sure. We had a strong increase in commercial customer revenue as a portion of total revenue. We expect commercial customers to be between 50% and 55% in 26. Regarding the clinical side, we're not seeing significant uptake as these customers are small and the amount of product they buy is small in the early stages.

Q: And then just on the bag yield impact, is there any way to quantify what that was as a headwind in terms of margins in the back half of 25? And then, Rod, I think you talked about it as a clear priority for 26. Can you just talk a little bit more about timing and logistics in terms of resolving the bag yield headwind you saw in the back half of the year?

A: It's about a two to three point headwind on gross margin in the second half of 2025. We've found a solution that requires a 90-day customer notification. We need to sell through higher cost inventory before seeing the impact of higher yield bags, expected around Q4 2026.

Q: This is Anna on for Paul. Thanks for taking my question and congrats on a great quarter. My first question is just around the CAR T market. It seems like we're getting better patient access with the REMS removal. I was just wondering if you've seen this impact your top line at all. or just customers' outlook at all? And then could you just remind us your exposure to CAR-Ts at this point?

A: In terms of commercial exposure, it's at least over 80% with respect to CAR-Ts. It's hard to parse the impact of REMS as it just happened and will take time to flow through to increased patients.

Q: And then just quickly following up, on your outlook for 2026, how much would you say is rooted in commercial growth versus dependent on improving macro conditions in clinical trials? Or would you say most of your outlook is towards the commercial side.

A: The primary driver for growth in 2026 is continued growth from commercial customers.

Q: Great. Thanks for taking the questions, guys. I actually wanted to follow up on your commentary regarding the cross-selling there just a little bit more. Can you maybe expound a bit on really what ultimate success kind of looks like within that initiative? And sorry if I missed it, but can you just confirm if any contribution through that is included in some of your 26 guidance assumptions, or should we think of that more as upside?

A: We have a base assumption around growth of other tools. The ultimate measurement is the growth rate related to non-BPM tools versus BPM. We expect non-BPM tools to grow at a faster rate, but it's a long-term goal.

Q: Hey, good afternoon and thank you for taking my questions. Maybe one on the partnership agreement you signed earlier this year. It's a pretty interesting deal, maybe a little outside of your normal deal structure, but what can you share with us just in terms of maybe the margin profile or I guess first to start, maybe the adoption potential of that product with your Celsius vials and all that? And secondly, what could the margins look like for that type of business?

A: I'm not going to speak specifically to margins. The combination of cytokines in Celsius vials is a six- to nine-month development project. This is a long-term strategic move.

Q: And then maybe you touched on the bags being an issue in the second half of last year. But as it relates to cryo case, do you see that as a potential opportunity to maybe reduce scrap and improve margins long term as cryo case is adopted?

A: The cryo case is designed for the final product. Replacing bags with RCC is 18 to 24 months away. The remediation is process oriented and will alleviate scrap issues.

Q: Good afternoon. Thanks for taking the questions. Maybe first up, just so I heard you correctly, gross margins are still going to be weighed on a little bit here. first half of the year in particular. So we should be thinking, you know, somewhat similar in Q1 versus Q4?

A: Yeah, that's correct. We have inventory on hand and it will take time for customers to adopt the new product format, so full year is expected to be in line with guidance.

Q: And then, you know, obviously the QKinds partnership is unique. It's an opportunity to get into some new areas. Are you looking or exploring for more of those types of partnerships or are you still kicking the tires on potentially adding via acquisition?

A: It's all three: targeted acquisition, minority investment, and strategic collaboration like with QKIND. This is a long-term relationship.

Q: Yeah, thanks for the question. Actually, most of my questions have been answered. I'm just wondering if you're seeing any potential acquisitions that would be, you know, in the biopreservation area where the valuations have kind of come back to what would be a more normalized attractive level to pull the trigger.

A: Other than the Panthera acquisition, we're monitoring biopreservation technology. Nothing has provided a competitive advantage we don't already have.

Q: Hey, guys. Thank you for taking my questions today. I guess I would like to ask a little bit about the QCon collaboration in particular. How comprehensive is this, and are there other commonly used cytokines and growth factors for cell and gene therapy manufacturing that might be the subject of future agreements or M&A activity?

A: The deal is specific to certain cytokines. We have access to broader products non-exclusively. It's the first step in a potential long-term relationship.

Q: And then just to follow up on that, As you were saying, there is exclusivity on a limited number of cytokines, but is that exclusivity going both ways, as in terms of who else can use Delphiol for those particular cytokines, potential distribution agreements that you may enter or any acquisitions? I'm trying to see if the exclusivity is just for you or for them to you as well.

A: It's one way for us relative to their cytokines. We anticipate their products being sold widely with cell seal packaging, but no agreements with other cytokine manufacturers to use cell seal vial at this time.