Quanterix Corporation Q3 FY2025 earnings call

Key Themes - Delivered on revenue expectations in a demanding environment. - Made significant integration progress post-Akoya acquisition, achieving $67M of $85M synergies, unified organization under one leadership, and saw early commercial momentum with cross-selling opportunities. - Invested roughly $27M in R&D year-to-date, ~30% of revenue. - Cash on track to finish year at ~$120M with no debt and cash flow breakeven in 2026. - Q3 revenue $40M, saw stabilization in academic, government, and pharma markets, with instrumentation and accelerator revenues up sequentially. - Integration of Simoa and Spatial progressing well, with goals of unified organization, revenue capture, and synergy realization met.

In Q3, total revenue was $40.2 million. Simoa contributed $23 million, a 36% organic revenue decline. Spatial reported $17.2 million, down 9% year-over-year. Instrument revenue was $7.2 million ($2.5M Simoa, $4.7M Spatial). Consumable revenue was $18.8 million ($12.3M Simoa, $6.5M Spatial). Accelerator lab revenue was $8 million ($5M Simoa, $3M Spatial). Organic revenue decline was due to smaller project sizes in academic and pharma end markets despite consistent order volumes. Customer mix was evenly split between pharma and academia.

2025 Guidance - Expect revenue of $130M to $135M. - GAAP gross margin to range between 45% and 47%, non-GAAP gross margin in same range. - Expected to end 2025 with ~$120M in cash and no debt. - Q4 Akoya revenue modeled with slight step down due to market uncertainty. - Full year guide unchanged, being prudent with guidance.

Risks - Market uncertainty with uneven demand across the industry. - Impact of government shutdown on academic accounts, which was factored into Q4 guide. - Competition in the high sensitivity, high multiplex platform space on the discovery side.

Q: Just wondering if you could clarify the difference between cost reductions implemented versus realized?

A: Cost reductions annualized is full year impact, while realized in quarter is true dollar savings within the quarter.

Q: On the instrument side, how do you think about improvement in the end market?

A: Already seeing increase in projects through Accelerator program, expect smoothing out of volume as smaller projects become larger. Instruments performed well, continuing work to place globally.

Q: On the point about instruments on Simoa One, what's the time line and revenue contribution?

A: Kicking off early access program before end of year, revenue contribution for '26 to be updated on next quarter call.

Q: On the Asia updates for LucentAD, when does that become material?

A: Early stages in Southeast Asia, with partners in China moving ahead with testing patients and system deployment. Drug available, patients wanting access.

Q: You've reduced R&D spending quite a bit. How do you think about increasing that next year?

A: R&D spending down a hair due to reallocation, but strategic investments in Simoa One, diagnostics, and assay development intact. Intention to balance R&D as priority in 2026