CTKB

• Overall Q2 2026 Performance

  • Total revenue reached $48.1 million, representing 6% year-over-year growth, building on positive momentum from the first half of 2026
  • Growth was driven by strong double-digit revenue expansion in the U.S. and China, strength in FFT instrument sales, and consistent double-digit growth in the service business
  • SciCAD install base grew by 142 units in the quarter to reach 3,933 total units, with high-end FSP instrument portfolio growing 11% year-over-year

• New Product Launches

  • Launched SciTech Borealis, the industry's first 60-color, 7-laser full spectrum flow cytometer. The platform enables analysis of 60 unique biomarkers per single sample, supports nanoparticle analysis, has higher throughput, enhanced automation, and optional integrated high-parameter cellular imaging. Early access customer feedback has been very positive ahead of full commercial launch
  • Launched an updated Aurora Evo instrument configuration with expanded automation capabilities, enabling integration into fully automated laboratory environments via remote operation and API connectivity. This new configuration targets biopharma organizations and CROs running large-scale research programs

• Recurring Revenue and Ecosystem Growth

  • Combined reagents and service revenue for the last 12 months ending June 30 2026 reached $18.5 million, up 8% year-over-year, and now represents 35% of total LTM revenue, up from 32% in the LTM ending June 30 2025. Management expects recurring revenue to grow as a percentage of total revenue over time
  • SciTech Cloud, the company's bioinformatics platform, surpassed 28,000 total users as of June 30 2026, up 15% since the start of the year, driving deeper customer engagement and supporting reagent and service growth

• Organizational Update

  • Starting in Q3 2026, SciTech will reorganize into three customer-aligned business units: Solutions and Clinical, Research Technology, and Service, to better align resources with customer segment needs

• Full year 2026 revenue guidance was revised upward: the low end of the range was increased, resulting in a new full-year revenue guidance range of $207 million to $212 million, with the midpoint increased by $1 million. The revision reflects stronger-than-anticipated year-to-date results, particularly in the U.S. and China.
• Full year 2026 adjusted EBITDA is expected to reach approximately break-even.
• Management expects adjusted EBITDA to improve in the second half of 2026, as revenue increases following normal seasonal patterns and operating expense growth moderates. Consistent with historical seasonal trends, Q4 2026 revenue is expected to be significantly higher than Q3 2026 revenue.
• Gross margins excluding the one-time Q2 2026 tariff refund are expected to increase through the remainder of 2026 as revenue grows, aligned with typical seasonal patterns.
• There remains contingency built into the 2026 full-year guidance to account for unforeseen macro developments, with unspent contingency remaining after the first half of 2026.

By product/segment:

1. Product (instruments + reagents): Q2 2026 revenue of $32.6 million, up 4% year-over-year. High-end instruments grew mid-teens year-over-year, driven by Aurora Evo Analyzer and Aurora CS orders. EMEA instrument revenue declined 10% year-over-year, and APAC product revenue (excluding China) fell due to purchasing pattern fluctuations after a strong Q1 2026. This segment contributed 67.8% of total Q2 2026 revenue.
2. Service: Q2 2026 revenue of $15.6 million, up 10% year-over-year, driven by expanding global install base and high customer instrument utilization. Service gross margin increased to 56% from 52% in Q2 2025 due to lower material costs. This segment contributed 32.2% of total Q2 2026 revenue.

By customer segment:

1. Biopharma, distributor, and CRO: Q2 2026 revenue of $29 million, up 22% year-over-year, with strong growth in EMEA and China.
2. Academic and government: Q2 2026 revenue of $19.1 million, down ~12% year-over-year. U.S. academic/government revenue grew strongly versus both Q2 2025 and Q1 2026, but this was offset by weakness in EMEA and other APAC (excluding China).

By geography:

1. United States: Q2 2026 revenue of $28.2 million, up 18% year-over-year.
2. EMEA: Q2 2026 revenue of $11.3 million, down ~8% year-over-year due to regional government budget pressures from geopolitical dynamics.
3. Total APAC (including China): Q2 2026 revenue of $7.9 million, flat year-over-year. China delivered double-digit year-over-year growth, which was offset by softness in other regional markets.

• Regional geopolitical dynamics have created ongoing budgetary pressures for academic and government customers in EMEA, leading to an 8% year-over-year decline in EMEA Q2 2026 revenue and a 10% decline in EMEA instrument revenue.
• General and administrative expenses increased 24% year-over-year in Q2 2026, primarily driven by higher legal costs associated with a previously disclosed patent litigation case, as well as higher severance and personnel costs.
• Forward-looking statements around future growth, product commercialization, and market penetration inherently carry significant risks and uncertainties that could cause actual results to differ materially from current expectations.
• The company recorded a $1.6 million non-recurring write-off of an investment in an early-stage technology company in Q2 2026.
• Softness in APAC markets outside of China offset China's strong double-digit growth in Q2 2026, leaving total APAC revenue flat year-over-year.

Q: With the improving biotech funding environment, will end market growth equilibrate across geographies, and what levers will SciTech use to capitalize on recoveries in different regions? / A: The U.S. has seen strong momentum, especially in academic and government segments, while U.S. biopharma has delivered 20% year-to-date growth. Europe remains challenged by government R&D budget pressures from shifting spending priorities like defense. China performed very strongly in Q2, and while other APAC had a soft quarter, management expects the region to be a strong long-term growth market. Key levers include the newly launched Borealis and Aurora Evo Automation products that have generated strong customer interest, plus ongoing investment in sales and marketing infrastructure leveraging the company's leading brand position.

Q: What is the annual replacement rate of the 46,000 global installed base of conventional flow cytometers, and are new placements mostly competitive upgrades or net new adoption? / A: Industry data puts annual global placements of flow cytometers between 7,000 and 10,000 units. SciTech focuses primarily on the high-end research market, where customers are increasingly shifting to full-spectrum flow cytometry technology, and the company is gaining market share in this segment. SciTech's growth rate is significantly higher than its competitors, which supports that the replacement of conventional systems with full-spectrum technology is benefiting the company.

Q: What is the update on the Q3 2026 strategic reorganization, when will benefits appear, and is there risk of customer disruption? / A: Implementation of the reorganization is underway as planned for Q3 2026, with the core goal of aligning resources to customer segments to improve growth and market penetration, especially in mid/low-end instruments and reagents. No customer disruption is expected; the reorganization will improve customer service by tailoring R&D, marketing and resources to specific segment needs. Benefits will take time to materialize, and the expected impact is already baked into the 2026 guidance, with the primary long-term benefit being improved top-line growth and market penetration.

Q: Have the core growth assumptions for instruments, service and reagents changed in the updated 2026 guidance? / A: There are no major shifts to the prior framework. Service revenue is expected to continue growing at or above the recent 10% year-over-year pace. Instrument revenue came in slightly higher than the upper end of prior expectations, but there are no material changes to the core underlying growth assumptions for the full year.