Harvard Bioscience (HBIO) investor relations material

Executive summary

• Q2 2025 revenue was $20.5M, down year-over-year but above guidance, driven by higher Chinese shipments and cost discipline.

• Gross margin was 56.4%, near the high end of guidance, with cost reductions offsetting lower revenue.

• Adjusted EBITDA improved to $1.5M from $1.3M year-over-year, aided by $2M in operating expense reductions.

• Net loss for Q2 2025 was $2.3M, an improvement from $2.9M in Q2 2024; YTD net loss was $52.6M, mainly due to a $48M goodwill impairment.

• New CEO John Duke outlined priorities: financial discipline, product adoption, and capital structure improvement.

Financial highlights

• Q2 2025 revenue declined 11.7% year-over-year to $20.5M but exceeded guidance due to Chinese shipments.

• Gross margin was 56.4%, down from 57.2% year-over-year but up 40 bps sequentially.

• Adjusted operating income rose to $1M from $0.8M year-over-year; adjusted operating margin was 5.1%.

• Operating cash flow for Q2 was $2.8M; YTD cash flow from operations reached $5.7M, up from $0.6M prior year.

• Net loss for Q2 2025 was $2.3M; adjusted EPS improved to $0.00 from ($0.01) in Q2'24.

Outlook and guidance

• Q3 2025 revenue guidance is $19M–$21M, with gross margin expected at 56%–58%.

• Management expects continued financial discipline, operational improvements, and margin expansion in 2026.

• Substantial doubt exists about the ability to continue as a going concern due to debt covenant non-compliance and refinancing uncertainty.

• The company must refinance or repay its credit agreement by December 5, 2025, or risk default.

• Management is exploring alternative capital sources but cannot assure availability or terms.