Cytek Biosciences Q3 Earnings Call Highlights

Key Points

• Revenue rose 2% to $53.2 million, with 12% growth in the U.S. offsetting a 25% decline in Asia-Pacific. Cytek narrowed its full-year revenue outlook to $208 million–$211 million and still expects adjusted EBITDA to be around break-even.
• Gross margin improved to 59% from 53%, but the GAAP net loss widened to $6.1 million and adjusted EBITDA fell to $0.7 million, pressured by higher operating expenses and lower investment income.
• Aurora and Aurora Evo placements grew 23%, while Cytek expanded early access to its Borealis analyzer ahead of a planned 2027 launch. The company expects fourth-quarter revenue to rise meaningfully from Q3 and said fourth-quarter legal expenses should decline.

Cytek Biosciences NASDAQ: CTKB reported third-quarter 2026 revenue of $53.2 million, up 2% from a year earlier, as growth in the U.S. and demand for its high-end instruments helped offset weakness in Asia-Pacific.

The flow cytometry company narrowed its full-year revenue guidance to $208 million to $211 million while maintaining the midpoint of its prior range. It also continued to expect adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, to be around break-even for the year.

CEO Wenbin Jiang said the quarter benefited from demand for the Aurora Evo platform, double-digit service revenue growth and stronger gross margins. Cytek expects fourth-quarter revenue to rise meaningfully from the third quarter, reflecting seasonal customer purchasing and continued service growth, CFO Bill McCombe said.

U.S. Growth Offsets Asia-Pacific Decline

U.S. revenue rose 12% year over year to $30.4 million, supported by instrument sales to academic and government customers and growth in services. Revenue in Europe, the Middle East and Africa increased 1% to $12.5 million, while Asia-Pacific revenue, including China, fell 25% to $8.3 million against a strong prior-year quarter. Asia-Pacific sales rose 5% sequentially.

Revenue from academic and government customers increased 38% to $24.5 million. In the U.S., instrument revenue from those customers grew more than 60%, McCombe said.

Revenue from biopharma, distributors and contract research organizations declined approximately 17% to $28.7 million. McCombe said the comparison reflected a strong year-earlier quarter and weaker Asia-Pacific and China markets, where a higher proportion of sales go through distributors. He said biopharma revenue was up 3% year to date and described the company as positive about the segment, particularly in the U.S.

Product revenue, including instruments and reagents, fell 3% to $37.2 million as declines in imaging and mid- to low-end instruments offset strength in high-end products. Service revenue rose 13%, helped by a larger installed base and continued use of Cytek systems.

Margins Improve as Net Loss Widens

GAAP gross margin increased to 59% from 53% a year earlier. McCombe attributed the improvement in product margins primarily to lower overhead following the transfer of manufacturing capacity from Seattle to Singapore, as well as lower material costs and tariffs.

Operating expenses rose 8% to $39.6 million. General and administrative expenses increased 14% to $18.4 million, including a $3 million increase in legal expenses associated with patent litigation and an August trial.

Cytek reported a GAAP net loss of $6.1 million, compared with a $5.5 million loss a year earlier. Adjusted EBITDA fell to $0.7 million from $2.5 million, which McCombe attributed primarily to lower investment income and higher operating expenses.

The company held $256 million in cash, cash equivalents, restricted cash and marketable securities at Sept. 30, down from $262 million at June 30. McCombe said Cytek expects fourth-quarter legal expenses to decline by $3 million to $4 million from the third quarter, with the most expensive phase of the trial behind it.

Product Pipeline and Litigation

Combined placements of Cytek’s Aurora and Aurora Evo instruments grew 23% year over year, with Evo placements nearly doubling, Jiang said. The company added 140 instruments overall, bringing its installed base to 4,073.

Cytek doubled the size of the early access program for its Borealis analyzer during the quarter and plans to expand it further in the fourth quarter. A broader commercial launch, including integrated imaging capabilities, is planned for 2027.

The company also launched a cloud-based analysis tool in the U.S. through a new premium subscription tier. Jiang said Cytek Cloud had nearly 30,000 users at quarter-end, up more than 20% since the start of the year. He described the platform as a tool to help customers use Cytek’s instruments, reagents and other products together, rather than primarily as a source of profit on its own.

On the patent case, Jiang said a Delaware jury found in Cytek’s favor on three of four asserted claims. On the fourth, the jury found no literal infringement but did find infringement under the doctrine of equivalents. Cytek has filed post-trial motions seeking to overturn the verdict, Jiang said, adding that the verdict does not affect the company’s ability to sell or ship products.

Cytek also postponed implementation of a new business-unit structure until the start of 2027. Jiang said the company judged the near-term risk of changing its organization midyear to be too significant.

McCombe declined to provide a specific 2027 growth forecast but said Cytek expects to outgrow the market and its peers and improve profitability. The company plans to provide more detailed guidance when it announces fourth-quarter revenue in late February or early March.

About Cytek Biosciences (NASDAQ:CTKB)

Cytek Biosciences, Inc develops and commercializes cell analysis solutions for biomedical research, clinical research and biopharmaceutical applications. The company focuses on spectral flow cytometry, a technology that enables researchers to analyze multiple characteristics of individual cells and identify complex cell populations.

Its product portfolio includes the Aurora and Northern Lights spectral flow cytometers, compact and specialized instruments, cell sorters, software and a range of fluorescent reagents.

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