Revenue in Line with Guidance
Reported Q1 revenue of $20.8M, within guidance of $20.0M–$22.0M. Q2 guidance ($20.5M–$22.5M) midpoint implies ~5% year-over-year growth; company reaffirmed full-year 2026 revenue guidance of +2% to +4%.
Harvard Bioscience
· HBIO
May 12th, 2026
Summary
- Earnings Call Date:
- 2026-05-12
- Change Since:
- +10.17%
- Next Earnings Date:
- 2026-07-30
Earnings Call Sentiment
NeutralThe call presented a mixed but balanced picture: meaningful operational progress and product-led margin improvement (strong NPI momentum, gross margin expansion, pharma sales growth and on-track cost-savings initiatives) were contrasted with near-term revenue pressure, regional softness (Americas and APAC), flat adjusted EBITDA and cash-flow headwinds from inventory builds and financing costs. Management reaffirmed guidance and highlighted multi-year strategic drivers, but near-term financials remain modest.
Company Guidance
Management reaffirmed full-year 2026 guidance and gave Q2 ranges: revenue $20.5–$22.5M (midpoint implying ~5% y/y growth), adjusted gross margin 57%–59% (midpoint implying ~160 bps expansion vs prior period) and adjusted EBITDA $1–$2M (midpoint roughly flat y/y); for the full year they reiterated revenue growth of 2%–4%, gross margin of 58%–60% and adjusted EBITDA growth of 6%–10%. For context, Q1 revenue was $20.8M with adjusted gross margin of 59% (≈+300 bps y/y) and adjusted EBITDA of $0.8M (flat y/y), NPI revenue topped >12% of sales (vs ~4% prior year), pharma/biotech sales rose >20% y/y, the Mesh/BTX/SoHo platforms (≈15–20% of revenue) are expected to deliver double‑digit growth, and Project Viking is expected to generate $3M in savings in 2027 and $4M annually thereafter.
Gross Margin Expansion
Adjusted gross margin improved to 59%, up ~300 basis points year-over-year (from ~56% in Q1 2025). Management is targeting consistent gross margins >60% and FY gross margin guidance of 58%–60%.
Strong NPI and Translational Product Momentum
New product innovation (NPI) revenue grew to >12% of total (from ~4% a year ago). The Mesh MEA, BTX and SoHo platforms now represent ~15%–20% of revenue and are expected to deliver double-digit revenue growth for the full year. Sales to pharma and biotech customers grew >20% year-over-year.
Improved Profitability Metrics Versus Prior Year Impairment
GAAP operating loss narrowed to $1.2M versus a $49.7M loss in prior year (prior included a $48M goodwill impairment). Adjusted EBITDA was $0.8M (flat YoY) and adjusted EPS improved to -$0.33 from -$1.25 a year ago.
Operational and Commercial Initiatives
Project Viking (manufacturing consolidation) remains on track and expected to yield $3M in savings in 2027 and $4M annually thereafter. Enhanced distribution with Fisher North America drove high-single-digit sales growth; leadership strengthened with hiring of an experienced SVP of Commercial; Made in China pilot launched for BTX to address local sourcing incentives.
Operator
Good day, and welcome to the Q1 2026 Harvard Biosciences, Inc. Earnings Conference Call. [Operator Instructions] Please note, this call is being recorded. I would now like to turn the call over to Taylor Krafchik, Senior Vice President at Ellipsis TA. Please go ahead.
Taylor Krafchik
Thank you, operator, and good morning, everyone. Thank you for joining the Harvard Bioscience First Quarter 2026 Earnings Conference Call. Leading the call today will be John Duke, President and Chief Executive Officer; and Mark Frost, Chief Financial Officer. In conjunction with today's recorded call, we have provided a presentation that will be referenced during our remarks that is posted to the Investor Relations section of our website at investor.harvardbioscience.com. Please note that statements made in today's discussion that are not historical facts, including statements on management's expectations of future events or future financial performance and forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the current views of Harvard Biosciences management, and Harvard Bioscience assumes no obligation to update or revise any forward-looking statements. Actual results may differ materially from those expressed or implied. Please refer to today's press release, the Harvard Bioscience Form 10-Q and other filings with the Securities and Exchange Commission for additional disclosures on forward-looking statements and the risks, uncertainties and contingencies associated there within.
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