Bio-Techne (TECH) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 delivered 9% organic revenue growth to $297 million, driven by biopharma recovery, strong Diagnostics and Spatial Biology performance, and robust cell/gene therapy workflow solutions.

• GAAP EPS rose to $0.22 from $0.17 and adjusted EPS to $0.42 from $0.40 year-over-year.

• Operational efficiency improvements led to a sequential 110 basis point increase in adjusted operating margin to 30.1%.

• Growth pillars included cell and gene therapy, proteomic analysis, spatial biology, and precision diagnostics.

• Net earnings for the quarter were $34.9 million, up from $27.5 million.

Financial highlights

• Q2 revenue reached $297 million, up 9% year-over-year on both reported and organic basis.

• Adjusted gross margin improved to 70.5% from 69.7% last year; GAAP gross margin was 65.3%.

• Adjusted operating margin was 30.1%, up 110 basis points sequentially and flat year-over-year.

• Adjusted EBITDA for the quarter was $96.1 million, up from $93.2 million a year ago.

• $84.3 million in operating cash flow for the quarter; $148.2 million for the six months.

Outlook and guidance

• Organic growth outlook for the second half of FY25 remains intact, with Q3 expected at the upper range of mid-single digit organic growth.

• High single-digit organic growth anticipated exiting Q4.

• Adjusted operating margins for 2H FY25 forecasted to be 50–150 basis points higher than prior year, despite a 1% FX headwind.

• Management expects gross margins to be impacted by product mix and future acquisitions; forecasted tax rate before discrete items is 23.6% for fiscal 2025.

• Capital expenditures for the remainder of fiscal 2025 are expected to be ~$20 million, funded by cash and operations.