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    RGEN
    Earnings call· Mar 2026(Q1 FY26)

    REPLIGEN Q1 FY26 earnings call RGEN

    May 5, 2026 Source

    Executive summary

    Repligen Q1 FY26 — Strong Organic Growth and Margin Expansion, Strategic Initiatives Progress

    Repligen delivered strong Q1 FY26 results, driven by broad demand across geographies and product franchises, particularly Analytics. The company is progressing strategic initiatives like the Transformation Office for margin expansion and a new OEM partnership in China, while navigating temporary headwinds in ATF and the gene therapy market. Management expressed confidence in the full-year outlook, with Q2 organic growth expected to be similar to Q1.

    Highlights

    5

    • Reported revenue grew 15% year-over-year, with 11% organic growth in Q1 FY26.

    • Adjusted operating margin expanded by 160 basis points year-over-year to 15.4% in Q1 FY26.

    • Analytics franchise revenue grew over 50% in Q1 FY26, leading segment performance.

    • China revenue nearly doubled in Q1 FY26, marking the best quarter in over two years.

    • Adjusted diluted EPS increased 23% year-over-year to $0.48 in Q1 FY26.

    Concerns

    3

    • Full-year revenue outlook reduced by $7 million due to the divestiture of the non-core Polymem business.

    • Filtration growth outlook moderated to mid-single digits for FY26 due to customer-specific timing dynamics impacting ATF.

    • Gene therapy headwind continues to be dilutive to growth for new modalities.

    Guidance & targets

    15
    CategoryTargetConfidence
    Full-year 2026 Revenue (reported and organic)
    $803M-$833M
    high materiality
    High
    Full-year 2026 Filtration Growth
    mid-single-digit growth
    medium materiality
    Medium
    Full-year 2026 Chromatography Growth
    greater than 20% growth
    medium materiality
    High
    Full-year 2026 Proteins Growth
    at least low double digits
    medium materiality
    High
    Full-year 2026 Analytics Growth
    20% plus growth
    high materiality
    High
    Full-year 2026 Gross Margin Expansion
    110 to 160 basis points
    high materiality
    High
    Full-year 2026 Adjusted Operating Income
    $124M-$132M
    high materiality
    High
    Full-year 2026 Operating Margin Expansion
    160 to 200 basis points
    high materiality
    High
    Full-year 2026 Adjusted Other Income
    $90M
    medium materiality
    High
    Full-year 2026 Adjusted Effective Tax Rate
    22% to 23%
    medium materiality
    High
    Full-year 2026 Adjusted Diluted EPS
    $1.97-$2.05
    high materiality
    High
    Full-year 2026 CapEx Spend
    3% to 4% of 2026 revenue
    medium materiality
    High
    Q2 FY26 Organic Revenue Growth
    similar to the first quarter
    medium materiality
    High
    Transformation Office Annualized Margin Benefit
    at least one point
    high materiality
    High
    Transformation Office Non-recurring Charges
    $5M-$6M
    low materiality
    High

    Segment performance

    14
    SegmentRevenueYoYQoQMargin
    Company-wide
    Healthy demand across broad portfolio and all geographies.
    		$194M15% (reported), 11% (organic)——
    North America
    Drivers: OPUS, Analytics
    		approx. 46% of totalmid-single digits——
    EMEA
    Drivers: Proteins, OPUS
    		37% of total>20%——
    Asia Pacific & Rest of World
    Drivers: ATFs, mixers, AnalyticsStrong growth in China
    		approx. 17% of total>25%——
    Analytics
    Led segment performance.
    Downstream analytics: record quarterSoloVPE PLUS: strong demand, new placements, upgrades
    		—50%+——
    Consumables (including protein)
    Coupled with solid capital equipment growth.
    		—double digit——
    Services
    Remained a standout.
    		—30%+——
    Filtration
    Excluding gene therapy headwind, would have delivered double-digit growth. Outlook moderated due to customer-specific timing dynamics for ATF.
    Drivers: Fluid Management, ATF, other consumables
    		—mid-single digits (reported)——
    Chromatography
    Continued to win new customers globally.
    Drivers: OPUS columns
    		—>25%——
    Proteins
    On top of a very strong prior year comparison, reflecting benefits of strategy.
    Demand: healthy across offerings, led by ligands
    		—mid-teens——
    CDMO
    Growth: similar across Tier 1 and Tier 2
    		—mid-teens——
    Biopharma
    Growth: 20%+ from emerging biotechsGrowth: outside large pharma
    		—grew despite difficult comparison——
    OEM and integrated demand
    Drivers: growth in fleet management
    		—very robust——
    China
    Best revenue quarter in over 2 years.
    		—near doubling——

    Operational metrics

    16
    Adjusted Gross Margin
    55.5%180 bps expansion YoY
    Q1 FY26

    Expected to normalize over the remainder of 2026.

    Adjusted Income from Operations
    $30Mup 28% YoY (reported and organic)
    Q1 FY26
    OpEx Growth
    11%
    Q1 FY26

    Management remains thoughtful about balancing investments with margin expansion. Some additional investment expected in Q2.

    Adjusted Operating Margin
    15.4%160 bps increase YoY (reported), 200 bps ex-M&A/FX
    Q1 FY26
    Adjusted EBITDA
    $40M
    Q1 FY26
    Adjusted Net Income
    $27M22% YoY increase
    Q1 FY26

    Higher adjusted operating income was offset by slightly lower interest income on declining interest rates.

    Adjusted Diluted EPS
    $0.48up 23% vs Q1 FY25
    Q1 FY26
    Cash and Marketable Securities
    $785Mup $17M sequentially from Q4
    Q1 FY26 end

    Driven by strong cash flow from operations, offset by CapEx.

    Capital Expenditure
    $5M
    Q1 FY26

    Offset cash flow from operations.

    Foreign Currency Contribution to Revenue Growth
    3 points
    Q1 FY26

    Contributed to reported revenue growth.

    Transformation Office Annualized Margin Benefit
    at least one point
    by end of 2027

    Expected to accelerate path to 30% adjusted EBITDA margin by 2030, on top of normal run rate.

    Transformation Office Non-recurring Charges
    $5M-$6M
    through 2027

    These charges will be excluded from adjusted non-GAAP results.

    High Probability Funnel
    at highest level ever
    Q1 FY26

    Represents orders with a probability above 50% closing.

    Biotech Funding
    almost doublevs last year
    Q1 FY26

    Indicates a strong rebound in the biotech funding environment.

    Emerging Biotech Sales as % of Total Sales
    8%-9%
    Q1 FY26

    Trending back towards 10% experienced in the past.

    Services Attachment Rate
    very nice
    Q1 FY26

    To analytical equipment, contributing to services growth.

    Industry KPIs

    10
    MetricValueDetails
    FCF conversion ROIC—
    Revenue EPS guidanceFY26 Revenue: $803M-$833M; FY26 Adjusted EPS: $1.97-$2.05USD
    China revenue exposurenear doubling
    Pricing price realization—
    M a contribution synergies—
    Segment organic revenue growth—
    Bioprocessing orders book to bill—
    Reshoring US manufacturing tailwind—
    Instruments vs consumables services mix—
    Organic core revenue growth by end market11%%

    Product announcements

    2
    ProductTypeDetails
    FlowVPXupdate
    Digital Twin Capabilities (with Novasign)update

    Deals & partnerships

    2
    Polymem (France)Sale of noncore and low-margin operation.nominal proceeds

    The facility was a key contributor during the pandemic but reverted to noncore sales outside bioprocessing. The new owner will offer synergies in the common market.

    Unnamed PartnerOEM relationship in China to expand capabilities and local presence.multi-phase and multi-product arrangements, expected to expand over coming years

    A critical partnership to support growth in China, signaling commitment to the local biopharma market.

    Risks & headwinds

    5
    Gene therapy headwindOngoing

    Dilutive to growth for new modalities.

    Mitigation: Healthy growth in cell therapy and in gene therapy when excluding that specific headwind.

    Customer-specific timing dynamics (ATF)Temporary for 2026

    Moderated Filtration growth outlook to mid-single digits for FY26.

    Mitigation: Expect ATF to return to strong growth in 2027 and beyond due to growing commercial drugs and broader implementation.

    Higher Chromatography mixFY26

    Partially offsets slight benefit from Polymem divestiture on gross margin.

    Limited impact from Middle East conflictFY26

    Limited impact.

    Customer preparedness for equipment deliveryCurrent and future quarters

    Can delay revenue recognition for capital equipment, especially with onshoring projects.

    Mitigation: Not fully controllable by Repligen, as it depends on customer site readiness.

    What to watch in Q2 FY26

    5

    ATF Growth Recovery

    2027 and beyond
    CurrentModerated mid-single digit growth for FY26
    TargetReturn to strong growth

    Why it matters

    ATF is a key technology for process intensification, and its recovery is crucial for long-term growth.

    As a result, we see ATF returning to strong growth in 2027 and beyond, and we continue to see overall healthy consumable demand across our portfolio.

    Q&A highlights

    6

    Clarify Q1 operating margin drivers (incidental vs. strategic reprioritization) and the expected impact of the transformation office on annual margin expansion, specifically if it's incremental to the normal run rate.

    Q1 gross margin was driven by volume leverage, pricing, and favorable product mix, with some timing elements. The transformation office aims to create a structured program for fit-for-growth and margin expansion, expecting at least one point of annualized margin benefit by end of 2027, which will be incremental to the normal run rate and accelerate the path to 30% EBITDA by 2030.

    “That one point of annualized margin expansion by end of '27, think of that as more in the run rate... To your point, that's going to be on top of our normal run rate.”

    asked by Daniel Arias · answered by Jason Garland

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Initiatives and Transformation Office

    Repligen launched a transformation office to accelerate its "Fit for Growth" journey and path to 30% adjusted EBITDA margin by 2030. Key focus areas include optimizing manufacturing footprint, improving product line profitability, enhancing customer service, and accelerating IT modernization and AI implementation. These efforts are expected to yield at least one point of annualized margin benefit by the end of 2027, with non-recurring📎 charges of $5 million to $6 million through 2027.

    02

    China Strategy and OEM Partnership

    The company saw a near doubling of revenues in China in Q1 FY26, its best quarter in over two years, driven by local demand. To further capitalize on this growth, Repligen signed a critical OEM partnership in China. This multi-phase, multi-product arrangement, expected to begin in 2027, aims to increase competitiveness and access to local manufacturing, signaling a strong commitment to the Chinese biopharma market.

    03

    Capital Equipment Demand and Funnel

    Capital equipment demand showed strength in Q1 FY26, particularly in Analytics and mixers, with a significant pickup in orders in March. The company's "high probability funnel" for orders closing within the next 2-3 quarters is at its highest level ever, reinforcing confidence in future growth. However, customer decision-making and site preparedness remain factors influencing revenue recognition, especially for larger projects and onshoring initiatives.

    04

    Emerging Biotech Recovery

    Emerging biotech revenues grew over 20% in Q1 FY26, marking the fourth consecutive quarter of significant growth for this customer segment. This recovery is supported by strong biotech funding data, with Q1 funding almost double that of last year and April seeing approximately $10 billion. While activity levels remain slightly below historical peaks, the trend is encouraging and expected to become a stronger tailwind from Q2 FY26 onwards, though this segment currently represents a smaller portion of total sales.

    05

    Analytics Franchise Outperformance

    The Analytics franchise delivered a "phenomenal" quarter with over 50% growth, driven by strong demand for downstream analytics offerings, including SoloVPE PLUS placements and upgrades. The company expects continued 20%+ growth for the year, supported by momentum in downstream demand and increasing contributions from upstream analytics. Repligen is investing significantly in R&D to develop new PAT technologies and is seeing a strong attachment rate of services to its analytical equipment.

    06

    ATF Outlook and Inventory Management

    Repligen moderated its full-year 2026 Filtration growth outlook to mid-single digits, primarily due to customer-specific timing dynamics impacting ATF. This is attributed to temporary inventory management by two customers for commercial drugs, rather than a fundamental issue with the technology. Management expects ATF to return to strong growth in 2027 and beyond, as these drugs continue to grow and ATF is implemented across more products, expressing strong confidence in its process intensification leadership.

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