Repligen Q1 Earnings Call Highlights

Key Points

• Repligen reported Q1 revenue of $194 million with 15% reported (11% organic) growth, 160 basis points of adjusted operating margin expansion, and adjusted EPS of $0.48 versus $0.39 a year ago.
• Growth was driven by analytics (50%+), strong chromatography and proteins performance (20%+ and low double digits guidance), and a nearly doubled China revenue where a new OEM partnership aims to expand local manufacturing beginning in 2027.
• The company divested Polymem, updated 2026 revenue guidance to $803M–$833M (9%–13% growth) and raised adjusted EPS guidance to $1.97–$2.05, while launching a transformation office targeting 30% adjusted EBITDA by 2030 and at least a 1-point annualized margin benefit by end-2027.

Repligen NASDAQ: RGEN reported first-quarter 2026 results that management said reflected broad-based demand across end markets and geographies, alongside margin expansion driven by mix, pricing, and volume leverage. The company also updated full-year guidance to reflect the divestiture of its Polymem business in France and raised its adjusted earnings per share outlook.

First-quarter results show double-digit organic growth and margin expansion

President and CEO Olivier Loeillot said the company delivered “15% reported revenue growth or 11% organic and 160 basis points of adjusted operating margin expansion,” citing “mid-teens top-line growth” and “disciplined cost management.” Repligen reported first-quarter revenue of $194 million.

Chief Financial Officer Jason Garland said foreign currency contributed three points of growth and the company had two months of inorganic contribution from its upstream analytics acquisition. By region, Garland said quarterly revenue mix was approximately 46% North America, 37% EMEA, and 17% Asia Pacific and rest of world. He added that North America grew mid-single digits driven by OPUS and analytics; EMEA grew more than 20% driven by proteins and OPUS; and Asia Pacific grew more than 25% driven by ATFs, mixers, and analytics.

On profitability, Garland reported adjusted gross profit of $108 million and adjusted gross margin of 55.5%, representing 180 basis points of expansion versus last year. He attributed the improvement primarily to “volume leverage, pricing execution, and favorable product mix,” which more than offset inflation and tariffs, noting that the mix benefit was driven by analytics growth and certain accretive filtration products. Garland also said first-quarter gross margin benefited from “cost absorption timing” tied to production levels and expects that benefit to normalize through the remainder of 2026.

Adjusted income from operations was $30 million, up 28% year-over-year, with adjusted operating margin of 15.4% in the quarter. Adjusted EBITDA was $40 million, or just under a 21% adjusted EBITDA margin. Adjusted net income was $27 million and adjusted diluted EPS was $0.48, compared with $0.39 in the prior-year period.

Franchise performance led by analytics, chromatography, and services

Loeillot said analytics “led the way with 50%+ growth,” while services grew “30%+.” He said consumables, including proteins, grew double digits and capital equipment grew, benefiting from strength in analytics and mixers and easier comparisons. He also noted “order trends were solid” with a “significant pickup in March” that included some conversion of the company’s capital equipment funnel.

Management provided additional color by franchise:

• Filtration: Loeillot said filtration grew mid-single digits reported, driven by fluid management, ATF, and other consumables. He said the franchise would have been double-digit excluding a gene therapy headwind previously discussed. With the Polymem sale, the company now expects filtration growth to be roughly mid-single digits in 2026 reported.
• Chromatography: Loeillot said revenue increased over 25%, driven by OPUS columns, and management now expects “20%+ growth in chromatography in 2026.” Garland said a higher chromatography mix is one factor within the full-year gross margin framework.
• Proteins: Loeillot said proteins delivered mid-teens growth “on top of a very strong prior year comparison,” led by ligands. He cited benefits from the company’s approach to “control our own destiny in proteins” and said Repligen expects protein growth of at least low double digits for the year.
• Analytics: Loeillot said analytics posted “another phenomenal quarter with 50%+ growth,” led by downstream analytics, including a record quarter for downstream offerings supported by SoloVPE PLUS demand, placements, and upgrades. He said the company continues to assume analytics growth of 20%+ for the year, with a growing contribution from upstream analytics.

China revenue nearly doubled; partnership aims to expand local capabilities starting in 2027

Loeillot said Asia Pacific was the strongest geographic region in the quarter and highlighted that China revenue nearly doubled, marking Repligen’s “best revenue quarter in the country in over two years.” In response to analyst questions, he characterized the demand as “vast majority” local Chinese demand rather than multinational expansion, and said the competitive environment in China has increased versus prior years.

He also said Repligen signed an OEM partnership in China during a recent regional visit, describing it as a “multi-phase and multi-product arrangement” expected to begin increasing local manufacturing access and competitiveness “beginning in 2027.” Loeillot emphasized the agreement has “no impact yet” on results because it was signed recently, and said the company expects to transfer parts of its portfolio—particularly filtration consumables—with the partner expected to be “up and running” toward the beginning of next year.

Transformation office launched; Polymem divested for nominal proceeds

Loeillot said the company created a transformation office to accelerate its Fit for Growth initiatives and support its path to 30% adjusted EBITDA margin by 2030. Key focus areas include optimizing manufacturing footprint, improving profitability of certain product lines through productivity and rationalization, enhancing customer service, capturing value for differentiated products, and accelerating IT modernization and AI implementation.

He said the company estimates these efforts should generate “at least 1 point of annualized margin benefit by the end of 2027.” Garland added that the one point should be viewed as a “run rate” by the end of 2027, with full benefits extending into 2028 and beyond, and that Repligen has not assumed benefits in 2026. Garland also said the company expects non-recurring charges of approximately $5 million to $6 million through 2027 related to the program, which will be excluded from adjusted non-GAAP results.

As part of the effort, Loeillot said Repligen divested the Polymem operation in France on March 30 for nominal proceeds. He said Polymem had reverted to “non-core sales outside bioprocessing,” operated at a net loss, and in 2025 generated $7 million of revenue and an adjusted operating loss.

Guidance updated for Polymem sale; EPS outlook raised

Garland said Repligen is reiterating its full-year organic growth expectation of 9% to 13% while updating reported revenue guidance to reflect only one quarter of Polymem revenue, removing approximately $7 million from the previously included full-year outlook. The company now guides to 2026 revenue of $803 million to $833 million, representing 9% to 13% growth on both a reported and organic basis.

For 2026, management’s growth assumptions by franchise include mid-single-digit filtration growth, greater than 20% chromatography growth, proteins growth greater than low double digits, and 20%+ analytics growth. Garland said the guidance assumes a couple million dollars of tariff surcharges in 2026 and “just under a point” of benefit from foreign currency.

On profitability, Garland said Repligen now expects 110 to 160 basis points of gross margin expansion in 2026, and adjusted operating income of $124 million to $132 million, implying 160 to 200 basis points of operating margin expansion. Adjusted diluted EPS is expected to be between $1.97 and $2.05, which Garland said is $0.04 higher than prior guidance at both the low and high ends of the range.

For cadence, Garland said the company expects second-quarter organic revenue growth to be similar to the first quarter and noted the full-year guide “does not require a second half acceleration to achieve the midpoint.” He added that second-quarter gross margin is expected to be slightly below the full-year range, operating expenses are expected to pick up sequentially in the second quarter, and the third quarter is expected to be the lowest margin quarter of the year.

Repligen ended the quarter with $785 million of cash and marketable securities, up $17 million sequentially, driven by $28 million of operating cash flow and $5 million of CapEx. Garland said the company expects 2026 CapEx of approximately 3% to 4% of revenue and intends to remain “prudent” while maintaining capacity for potential acquisitions.

About Repligen NASDAQ: RGEN

Repligen Corporation NASDAQ: RGEN is a life sciences company that develops and manufactures high-value consumable products for bioprocessing applications. Founded in 1981 and headquartered in Waltham, Massachusetts, the company specializes in technologies that support the development and production of biopharmaceuticals. Repligen's offerings include chromatography resins, filtration membranes, single-use technologies and systems for downstream purification and upstream processing.

The company's core product lines encompass Protein A affinity resins, designed for monoclonal antibody purification, and a portfolio of ion exchange, multimodal and hydrophobic interaction resins.

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