Cytek Biosciences (CTKB) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $41.5M, down 7.6%-8% year-over-year, mainly due to weaker instrument sales in the U.S. and EMEA, partially offset by strong APAC and service revenue growth.

• Service revenue grew 24% year-over-year, while product revenue declined 18%.

• Net loss widened to $11.4M from $6.2M in Q1 2024, driven by lower revenue, gross profit, and higher operating expenses.

• Cash and marketable securities totaled $265.6M at quarter-end, supporting ongoing R&D, operational investments, and share repurchases.

• The company continues to invest in R&D, commercial infrastructure, and global expansion, including launching the Cytek Muse Micro and Singapore operations.

Financial highlights

• Product revenue fell to $28.1M (down 18%), while service revenue increased to $13.3M (up 24%) compared to Q1 2024.

• GAAP gross profit was $20.2M, down 12% year-over-year; GAAP gross margin was 49% (vs. 51% prior year); non-GAAP adjusted gross margin was 52% (vs. 55%).

• Operating expenses rose to $35.1M, mainly from higher G&A costs.

• Net loss per share was $(0.09), compared to $(0.05) in Q1 2024.

• Cash and marketable securities were $265.6M at quarter-end, down $12.3M sequentially, mainly due to $10.6M in share repurchases.

Outlook and guidance

• Full-year 2025 revenue guidance revised to $196M–$210M, representing -2% to +5% growth over 2024, assuming stable FX rates.

• Growth is expected to be weighted toward the second half of the year, following typical seasonal patterns and as funding uncertainties potentially ease.

• Gross margin is expected to improve in subsequent quarters as revenue increases.

• Existing cash and anticipated cash flows are expected to meet working capital and capital expenditure needs for at least the next 12 months.

• The company anticipates ongoing market headwinds, including longer sales cycles and foreign exchange impacts.