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    CTKB
    Earnings call· Jun 2026(Q2 FY26)

    Cytek Biosciences Q2 FY26 earnings call CTKB

    Aug 5, 2026 Source

    Executive summary

    Cytek Biosciences Q2 FY26 — Strong US & China Growth, New Product Launches

    Cytek Biosciences reported solid Q2 FY26 results, driven by robust revenue growth in the US and China, alongside the successful launch of two new high-end flow cytometry instruments. The company is undergoing a strategic reorganization into three customer-aligned business units to enhance market penetration and optimize resource allocation. While facing headwinds in EMEA and parts of APAC, management remains focused on expanding its recurring revenue base and leveraging technological leadership for sustainable long-term growth.

    Highlights

    5

    • Second quarter revenue increased 6% year-over-year to $48.1 million.

    • US revenue grew 18% year-over-year to $28.2 million, driven by academic and government sectors.

    • China delivered strong double-digit growth in revenue.

    • High-end FSP instrument portfolio grew 11% year-over-year.

    • Recurring revenue (reagents and service) increased 8% year-over-year to $18.5 million, representing 35% of LTM revenue.

    Concerns

    5

    • EMEA revenue was down approximately 8% year-over-year to $11.3 million due to budgetary pressures.

    • Academic and government revenue declined approximately 12% year-over-year to $19.1 million, primarily due to weakness in EMEA and other APAC.

    • GAAP net loss increased to $12.2 million from $5.6 million in Q2 2025.

    • Adjusted EBITDA was a loss of $1.5 million in Q2 2026, compared to a positive $1.3 million in Q2 2025.

    • General and administrative expenses increased 24% to $16.8 million, primarily due to higher legal expenses and severance costs.

    Guidance & targets

    2
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $207 million to $212 million
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    around break-even
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    United States
    Strong trend from Q1, reflecting impressive growth in instrument revenue in the academic and government sector and in service business. Biopharma in US was relatively flat in Q2, but up 20% in H1.
    		$28.2 million18%——
    EMEA
    Reflecting a continuation of budgetary pressures arising from regional geopolitical dynamics. EMEA instrument revenue declined 10% year-over-year.
    		$11.3 million-8%——
    APAC (including China)
    China delivered strong double-digit growth against a modest year-on-year comp, which was offset by softness in other parts of the region. Product revenue in APAC excluding China was lower due to normal fluctuations after a strong Q1.
    		$7.9 million———

    Operational metrics

    21
    Total revenue growth
    6%YoY
    Q2 FY26

    Total revenue was $48.1 million, compared to $45.6 million in Q2 2025.

    High-end FSP instrument portfolio growth
    11%YoY
    Q2 FY26

    Led by Aurora EvoAnalyzer and Aurora CS sales order.

    Recurring revenue (reagents and service)
    $18.5 millionup 8% YoY
    Q2 FY26

    Represents combined reagents and service revenue.

    Service revenue growth
    10%YoY
    Q2 FY26

    Driven by continued growth in install base and high utilization of instruments.

    Cytacloud users
    28,000up 15% since start of year
    as of June 30, 2026

    Growth in SiteCloud users reinforces integrated ecosystem strength and drives deeper customer engagement.

    Product revenue
    $32.6 millionup 4% YoY
    Q2 FY26

    Driven by sales of high-end instruments, which grew mid-teens during Q2.

    Biopharma distributor and CRO customer revenue growth
    22%YoY
    Q2 FY26

    Revenue totaled $29 million, result of strong growth in EMEA and China.

    GAAP gross margin
    59%
    Q2 FY26

    GAAP gross profit was $28.3 million.

    GAAP gross margin (excluding tariff refund)
    53%vs 52% in Q2 2025
    Q2 FY26

    Excluding a one-time $2.8 million tariff refund.

    Product gross margin (excluding tariff refund)
    52%vs 53% in Q2 2025
    Q2 FY26

    Product gross margin was 60% including the tariff refund.

    Service gross margin
    56%up from 52% in Q2 2025
    Q2 FY26

    Result of lower material costs.

    Adjusted gross margin (excluding tariff refund)
    56%vs 56% in Q2 2025
    Q2 FY26

    Adjusted gross margin was 61% including the tariff refund. Excludes stock-based compensation and amortization of acquisition-related intangibles.

    Total operating expenses
    $39.7 millionup 15% vs Q2 2025
    Q2 FY26

    Overall operating expenses for the quarter.

    Research and development expenses
    $9.7 millionup 10% vs Q2 2025
    Q2 FY26

    Primarily due to higher personnel costs.

    Sales and marketing expenses
    $13.2 millionup 9% vs Q2 2025
    Q2 FY26

    Primarily due to higher personnel costs, advertising, and marketing expenses.

    General and administrative expenses increase
    $3.3 millionup 24%
    Q2 FY26

    Total G&A was $16.8 million. Increase primarily due to higher legal expenses associated with patent litigation and higher severance/personnel costs.

    Loss from operations increase
    $0.8 million
    Q2 FY26

    Increased from $10.6 million in Q2 2025 to $11.4 million in Q2 2026.

    Net other income decrease
    $4.5 million
    Q2 FY26

    Contributed to higher GAAP net loss.

    Adjusted EBITDA
    -$1.5 millionvs positive $1.3 million in Q2 2025
    Q2 FY26

    Primarily due to higher loss from operations, lower add-back of stock-based comp, and lower investment income.

    Cash, cash equivalents and marketable securities
    $262 millionvs $262.2 million as of March 31, 2026
    as of June 30, 2026

    Balance sheet provides financial flexibility for global growth priorities.

    Total install base
    3,933added 142 units
    Q2 FY26

    Continued expansion of global footprint.

    Industry KPIs

    5
    MetricValueDetails
    FCF conversion ROICapproximately neutralUSD
    Revenue EPS guidance$207 million to $212 millionUSD
    China revenue exposurestrong double-digit growth
    Segment organic revenue growth18%%
    Instruments vs consumables services mix35%%

    Product announcements

    2
    ProductTypeDetails
    Cytek Borealislaunch
    Aurora EVO instrument configurationexpansion

    Risks & headwinds

    4
    Geopolitical dynamics and budgetary pressures in EMEAQ2 FY26, continuing trend

    EMEA revenue down approximately 8% year-over-year to $11.3 million; EMEA instrument revenue declined 10% year-over-year.

    Mitigation: Focus on new product launches and sales/marketing investments in other regions; strategic reorganization to better align resources.

    Weakness in academic and government sectors in EMEA and other APACQ2 FY26

    Academic and government revenue down approximately 12% year-over-year to $19.1 million.

    Mitigation: Strong US academic and government growth partially offset this weakness; new product launches expected to attract interest globally.

    Increased legal expenses and severance costsQ2 FY26

    General and administrative expenses up $3.3 million or 24% to $16.8 million.

    Mitigation: Operating expense growth expected to moderate in the second half of the year.

    Foreign exchange losses and non-recurring write-offQ2 FY26

    Lower net other income by $4.5 million, including $0.7 million FX losses and $1.6 million write-off.

    Mitigation: Adjusted EBITDA excludes foreign exchange impacts and non-recurring write-offs; expected to improve in H2.

    What to watch in Q3 FY26

    5

    EMEA revenue trend

    next quarter
    CurrentDown 8% YoY
    TargetStabilization or improvement

    Why it matters

    EMEA is a significant region experiencing budgetary pressures; its recovery is key to overall international growth.

    In a year, second world revenue was $11.3 million, down approximately 8% year over year, reflecting a continuation of the budgetary pressures arising from regional geopolitical dynamics.

    Q&A highlights

    7

    With improving biotech funding, will growth across end markets equilibrate? What levers are available to capitalize on recovery in US vs. other geographies?

    Management noted strong US academic/government growth, while US biopharma was flat in Q2 but up 20% in H1. EMEA and other APAC faced budgetary pressures. New products (Borealis, Aurora Evo automation) and continued investment in sales/marketing are key levers. Cytek's technology leadership is a global advantage.

    “We have significant new products that we talked about, the Borealis, the Aurora Evo automation, with enhanced automation, which are attracting very strong interest from customers. We continue to invest in our sales and marketing infrastructure and And our brand is very strong and we And it represents really the leading technology in the space.”

    asked by Brendan Smith · answered by William McCombe

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Reorganization for Enhanced Customer Focus

    Cytek is implementing a strategic reorganization in Q3 2026, transitioning to three distinct customer-aligned business units: Solutions and Clinical, Research Technology, and Service. This restructuring aims to better align resources with different customer segments, particularly to improve market penetration in mid- and low-end instruments and reagents. Management expects this initiative to enhance top-line growth and market penetration, though significant benefits are anticipated to materialize over time⏳.

    02

    New Product Innovation Driving Growth

    The company launched two significant new products: the Borealis, the industry's first 60-color, 7-laser full-spectrum flow cytometer, and the Aurora EVO instrument configuration with expanded automation capabilities. The Borealis significantly expands cellular biomarker analysis and offers increased efficiency, while the Aurora EVO enhances integration into automated lab environments, particularly for biopharma and CROs. These launches underscore Cytek's commitment to technological leadership and are attracting strong customer interest.

    03

    Geographic Performance and Market Dynamics

    Q2 FY26 saw strong performance in the US, with 18% year-over-year revenue growth, primarily from academic and government customers. China also delivered strong double-digit growth. However, EMEA revenue declined 8% due to regional geopolitical dynamics and budgetary pressures, and other APAC regions experienced softness. Management noted that the strong US academic and government growth offset weakness in these sectors in EMEA and other APAC.

    04

    Recurring Revenue Base Strengthening

    Cytek's recurring revenue, comprising reagents and service, grew 8% year-over-year to $18.5 million, now representing 35% of the last 12 months' revenue, up from 32% in the prior year. Service revenue alone grew 10% year-over-year, driven by an expanding install base and high instrument utilization. The company expects recurring revenue to continue increasing as a percentage of total revenue, supported by the growing install base and active instrument use.

    05

    Cytacloud User Growth and Ecosystem Engagement

    The Cytacloud platform continues to play a critical role in optimizing experimental workflows, with users surpassing 28,000 as of June 30, 2026, a 15% increase since the start of the year. This growth reinforces the strength of Cytek's integrated ecosystem and drives deeper customer engagement, which is considered an important factor in driving growth in the reagents and service businesses.

    AI-generated summary of the company’s earnings call. Not investment advice.