Maravai LifeSciences NASDAQ: MRVI reported first-quarter fiscal 2026 results that management said marked a “strong start to 2026,” driven by growth at its TriLink segment, steady contribution from Cygnus, and the impact of restructuring actions taken last year.
On the company’s earnings call, CEO Bernd Brust said Maravai delivered total Q1 revenue of $65.8 million, up 41% year-over-year. Excluding COVID-related CleanCap revenue, Brust said base business revenue grew 10% year-over-year. The company posted adjusted gross margin of 65.3% and adjusted EBITDA of $20.3 million, and generated $4.2 million of positive free cash flow, which Brust noted was the first time the company had been free cash flow positive since Q3 2024.
Revenue growth led by TriLink; Cygnus steady
Brust said TriLink revenue grew 65% year-over-year, with base business growth of 15% supported by demand in both GMP and discovery consumables. Cygnus revenue increased “a little more than 1%” year-over-year, with Brust citing high single-digit growth in North America and low single-digit growth in EMEA, partially offset by lower contribution from China due to distributor ordering timing.
CFO Raj Asarpota outlined base revenue mix and geographic exposure for the quarter. Base revenue by customer type was 32% biopharma, 31% life sciences and diagnostics, 4% academia, 7% CRO/CMO/CDMO, and 26% distributors. By geography, base revenue was 60% North America, 25% EMEA, 8% Asia Pacific excluding China, and 7% China.
On segment results, Asarpota said TriLink represented 72% of total revenue in Q1 and 64% of total revenue excluding COVID CleanCap. Cygnus represented 28% of total revenue and 36% of base revenue. He added that TriLink produced adjusted EBITDA of $17.3 million, improving by more than $26 million year-over-year, while Cygnus generated adjusted EBITDA of $13.6 million with margins of 73.8%. Corporate expenses impacting adjusted EBITDA were $10.5 million.
Profitability and cash flow improve amid restructuring savings
Asarpota said GAAP net loss before non-controlling interest was $6.4 million, compared with a GAAP net loss of $52.9 million in the prior-year period. Basic and diluted loss per share was $0.02 versus $0.21 in Q1 2025, and adjusted EPS was $0.01 compared with an adjusted loss of $0.08 last year.
Maravai ended the quarter with $165.9 million in cash and $242.9 million in long-term debt, following what Asarpota described as a voluntary $50 million debt repayment during the quarter. He also cited $11.4 million of depreciation and amortization, $3.9 million of net interest expense, and $6.7 million of stock-based compensation.
Brust said restructuring actions implemented last year continue to deliver results, and the company now expects to achieve more than $65 million in annual EBITDA savings across labor, facilities, and controllable spend. He also pointed to a “favorable product mix,” particularly as higher-margin GMP consumables represent a larger portion of revenue.
Strategic updates: ModTail adoption, enzymes launch, and digital progress
In reviewing the company’s strategic priorities—commercial execution, operational excellence, and innovation—Brust said an increased focus on customer engagement has improved forecasting and order conversion, including more annual and multi-quarter purchase orders. He cautioned, however, that the business has a “disproportionate number of large orders” that can create quarter-to-quarter variability.
Within TriLink, Brust highlighted continued adoption of ModTail, stating the company now has more than 70 customers using the technology across large pharmaceutical companies and emerging biotechs. In Q&A, management said ModTail is “well performing above” expectations in customer count, while revenue is “right in line” with what the company expected for the year. Management added that GMP-grade ModTail is expected later this year, but said it is not expected to have a material impact in 2026 and is more likely to set up 2027.
Brust also said TriLink’s GMP customer base is expected to grow 22% in 2026, representing nine existing RUO customers transitioning to GMP customers, with two already converted this year. He added that the company recently launched “all-in-one IVT kits” to simplify production of capped RNA for early-stage researchers.
On R&D and manufacturing, Brust said TriLink completed its GMP facility for enzymes and expects to launch GMP-quality enzymes during the quarter. In response to an analyst question, management said none of the guidance raise was tied to the enzymes launch, adding the company already has “orders in hand” for GMP and expects to begin delivering toward the end of the quarter into early next quarter.
On digital initiatives, Brust said the company’s e-commerce channel continues to expand and that Q1 website revenue was a record. In response to a question about online engagement and “mRNAbuilder,” management said e-commerce revenue remains under 10% of the business, but noted increased online activity and said the company has seen its first “non-contact orders” come through.
Guidance raised on revenue and sharply higher EBITDA outlook
Based on Q1 performance and improved visibility, Asarpota said Maravai raised full-year revenue guidance to $205 million to $215 million, representing 10% to 16% growth over 2025. He said the company expects TriLink to grow in the high teens, driven by strength in GMP consumables and a return to growth in discovery.
Asarpota also said the company does not currently expect additional high-volume COVID CleanCap revenue in 2026, while continuing to view $10 million to $20 million of annual endemic demand as a reasonable longer-term baseline. During Q&A, management emphasized that Q1 included COVID-related orders received in the quarter and that the company does not expect additional COVID orders for the rest of 2026.
For Cygnus, Asarpota reiterated expectations for low- to mid-single-digit growth and described Q1 softness in China as timing-related. Addressing regional mix shifts, he said the China softness was driven by distributor ordering patterns rather than end-customer demand, and the company does not expect a significant shift for the balance of the year.
Maravai substantially raised full-year adjusted EBITDA guidance to $30 million to $32 million, which Asarpota said would represent an improvement of $61 million to $63 million year-over-year, “primarily driven by performance in TriLink.” He attributed the improved profitability outlook to demand in higher-margin areas, mix shift toward GMP and higher-margin discovery consumables, pricing discipline, and the company’s restructured cost base. Asarpota added the company expects gross margin expansion of more than 1,300 basis points and said it expects to generate positive free cash flow for the remainder of the year.
In closing remarks, Brust said the company has not seen instability following leadership and operational changes made last year, and pointed to “positive momentum” in pharma and biotech markets. He also described Asia as “opportunity” rather than downside, given the company’s limited exposure in the region today.
About Maravai LifeSciences NASDAQ: MRVI
Maravai LifeSciences Holdings, Inc NASDAQ: MRVI is a life sciences company specializing in the development and supply of critical reagents and services for the development and manufacture of biologic therapies. The company's offerings support a range of applications in genomics, molecular diagnostics, vaccine development and next-generation sequencing. Maravai's platforms address key challenges in nucleic acid production, protein detection, epigenetic analysis and reagent quality across the biopharmaceutical industry.
Through its product portfolio, which includes proprietary mRNA capping reagents, lipid nanoparticle delivery systems, synthetic oligonucleotides and high-precision assay kits, Maravai enables customers to accelerate research and streamline manufacturing workflows.
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