Repligen Q2 Earnings Call Highlights

Key Points

• Strong second-quarter performance: Repligen reported $204 million in revenue, up 12% year over year and 13% organically, led by 50% growth in proteins and more than 30% growth in analytics. Adjusted EPS rose 46% to $0.54, while adjusted operating margin expanded to 16.7%.
• 2026 outlook raised: The company increased its full-year organic revenue growth forecast to 10.5%–13.5% and adjusted EPS guidance to $2.03–$2.09, citing improving order momentum and stronger visibility into the second half.
• BioLife acquisition planned: Repligen expects to close the BioLife deal in the fourth quarter, expanding its cell-therapy portfolio. Management anticipates at least $20 million in first-year synergies and $0.05 of adjusted EPS accretion, rising to at least $30 million and $0.25 per share in the second year.

Repligen NASDAQ: RGEN reported second-quarter 2026 revenue of $204 million, up 12% year over year on a reported basis and 13% organically, as demand for proteins, analytics products and recurring consumables supported growth. The company also raised its full-year organic revenue growth and adjusted earnings outlook, citing continued order momentum and improved visibility into the second half.

President and Chief Executive Officer Olivier Loeillot said the company’s order trends improved late in the first quarter and continued through the second quarter, including an improvement in alternating tangential flow, or ATF, order activity. While capital-equipment revenue remained subdued, Repligen saw a sequential pickup in equipment orders and won another request-for-proposal opportunity, he said.

“Our base business remains very strong,” Loeillot said, pointing to 13% organic growth during the quarter and growth contributions from product innovations in analytics and proteins.

Revenue Growth Led by Proteins and Analytics

Proteins revenue rose 50% in the second quarter, supported by performance across the portfolio, including the company’s OEM partnership with Purolite, custom ligand and resin development within its Avitide portfolio, and growth factors. Repligen raised its full-year proteins growth outlook to the mid-teens from a prior low-double-digit expectation.

Analytics revenue increased more than 30%, with strength across consumables, services and capital equipment. Loeillot said the SoloVPE PLUS System upgrade cycle demonstrated the potential benefits of the company’s product lifecycle management strategy, while broader downstream analytics demand also remained strong. Repligen now expects analytics revenue growth of at least 25% for the full year.

Chromatography revenue grew in the low double digits despite lapping the company’s strongest quarter of the prior year. The performance was driven by OPUS columns, including continued demand from contract development and manufacturing organizations, or CDMOs, and biopharma customers. Large-scale column units increased 18% in the first half, according to Loeillot. The company maintained its expectation for chromatography growth of more than 20% for the year.

Filtration revenue increased slightly on a reported basis, with consumables demand, including fluid management and flat-sheet cassettes, offset by the sale of the Polymem business and a previously disclosed gene therapy headwind. The company expects filtration growth of roughly mid-single digits for 2026.

Loeillot said several filtration headwinds are expected to continue into the third quarter before beginning to normalize in the fourth quarter. Those factors include a gene therapy program issue, inventory management by one ATF customer, delays in another customer’s site readiness, and the Polymem divestiture. He added that ATF and equipment orders improved toward the end of the second quarter and are helping build backlog for 2027.

Regional Results and End-Market Trends

North America accounted for approximately 51% of quarterly revenue and grew in the high teens, while Europe, the Middle East and Africa represented 32% of revenue and declined in the mid-single digits due to a difficult prior-year comparison. Asia-Pacific and the rest of the world accounted for about 17% of revenue and grew 40%.

Asia-Pacific growth was supported by pharma and CDMO demand, including continued strength in China. Loeillot said China grew more than 60% in the first half, while growth across the region was driven primarily by filtration, chromatography and process analytics.

Emerging biotech revenue increased in the high teens, which Loeillot said reflected an improving funding environment and a sustained recovery among those customers. New modalities revenue grew 9% excluding a specific gene therapy headwind, marking the strongest quarter for that business since the first quarter of 2025, according to the company.

Capital-equipment revenue was stable sequentially from the first to the second quarter but declined slightly from a year earlier. Nevertheless, capital-equipment revenue grew in the high single digits during the first half. Loeillot said second-quarter equipment book-to-bill was “significantly above one,” and the company expects much of the resulting backlog to support 2027 revenue because customers need time to prepare facilities for equipment installation.

Margins, Earnings and Cash Flow

Chief Financial Officer Jason Garland said adjusted gross profit was $110 million, producing an adjusted gross margin of 53.9%, up 280 basis points from a year earlier. Volume leverage, pricing and product mix more than offset inflation, he said.

Adjusted income from operations rose 55% year over year to $34 million, while adjusted operating margin expanded 460 basis points to 16.7%. The sale of Polymem contributed 40 basis points to the operating-margin improvement.

Adjusted EBITDA totaled $43.8 million, or 21.4% of revenue. Adjusted net income increased 45% to $31 million, and adjusted diluted earnings per share rose 46% to $0.54 from $0.37 a year earlier.

Garland said operating expenses benefited during the quarter from a temporary employment compensation-cost effect that is not expected to recur in the second half. Repligen expects operating expenses to increase sequentially in the third and fourth quarters as it invests in sales, research and development, information technology and its “Fit for Growth” initiatives.

Cash equivalents and marketable securities totaled $810 million at quarter-end, up $25 million from the first quarter. The company generated $33 million in operating cash flow during the quarter and spent $5 million on capital expenditures.

Higher 2026 Outlook and BioLife Agreement

Repligen raised its 2026 revenue outlook to $813 million to $834 million, representing reported growth of 10% to 13% and organic growth of 10.5% to 13.5%. The organic-growth midpoint increased by one percentage point from the company’s prior guidance.

• Adjusted operating income is projected at $128 million to $134 million.
• Adjusted operating margin is expected to be 15.7% to 16.0%.
• Adjusted diluted earnings per share is expected to be $2.03 to $2.09, with the midpoint $0.05 above prior guidance.
• Gross margin is expected to expand by 110 to 160 basis points for the full year.

The guidance does not include any contribution from the planned BioLife acquisition, which Repligen expects to close in the fourth quarter subject to customary approvals. Loeillot said BioLife would expand Repligen’s cell therapy offering through its biopreservation media platform, which supports 18 commercial therapies.

Management expects the transaction to generate at least $20 million in synergies and add $0.05 to adjusted earnings per share in its first year. By the second year, Repligen expects at least $30 million in synergies and $0.25 of adjusted EPS accretion.

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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