BioLife Solutions Inc ((BLFS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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BioLife Solutions Inc has reported a positive sentiment in its latest earnings call, showcasing strong revenue growth and improved profitability. The company has made strategic moves, such as the sale of the evo Cold Chain product line, to bolster its financial position. Despite some challenges, including a decline in adjusted gross margin and increased operating expenses, the overall outlook remains optimistic due to robust growth metrics and a strategic focus on core competencies.
Strong Revenue Growth
BioLife Solutions reported a significant increase in revenue, with cell processing revenue rising by 33% year-over-year. This contributed to a total revenue growth of 31% for the quarter, highlighting the sustained strength across its biopreservation media franchise and broader cell processing portfolio.
Improved Profitability
The company’s adjusted EBITDA margin expanded by 500 basis points year-over-year to reach 28%. This improvement underscores the operating leverage inherent in BioLife’s business model, reflecting enhanced profitability.
Sale of evo Cold Chain Product Line
BioLife Solutions strengthened its balance sheet by selling the evo Cold Chain logistics product line for approximately $25 million in cash. This transaction increased the company’s cash and marketable securities to about $125 million, allowing a sharper focus on core cell processing competencies.
Increased Guidance
BioLife has raised its full-year cell processing revenue guidance from $91 million-$93 million to $93 million-$94 million, representing a 26% to 28% year-over-year growth rate. This adjustment reflects the company’s strong momentum and sustainable growth prospects.
Market Leadership
BioLife’s BPM products are embedded in 16 approved therapies and are utilized in more than 250 commercially sponsored CGT clinical trials in the U.S., capturing over a 70% market share. This includes more than 30 Phase III trials where their share is nearly 80%.
Adjusted Gross Margin Decline
The adjusted gross margin for Q3 was 64%, down from 67% in the prior year. This decline was primarily due to a $600,000 one-time inventory reserve and a less favorable product mix.
Increased Operating Expenses
GAAP operating expenses for Q3 2025 were $28.2 million, up from $21.8 million in Q3 2024. This increase was attributed to higher costs of sales and an increase in stock-based compensation expenses.
GAAP Operating Loss
Despite increased revenue, BioLife reported a GAAP operating loss of $89,000 for Q3 2025, compared to $418,000 in the prior year. This reflects the challenges faced in balancing revenue growth with rising expenses.
Forward-Looking Guidance
BioLife Solutions has announced an optimistic forward-looking guidance, expecting total revenue to reach $95 million to $96 million for the full year 2025, representing a 27% to 29% growth rate. The cell processing revenue is projected to hit $93 million to $94 million, indicating a 26% to 28% increase. This guidance reflects the company’s strategic adjustments following the sale of evo and suggests strong momentum and sustainable growth.
In summary, BioLife Solutions Inc’s earnings call highlights a positive sentiment driven by strong revenue growth and improved profitability. Strategic moves, such as the sale of the evo Cold Chain product line, have strengthened the company’s financial position. Despite some challenges, the company’s focus on core competencies and increased guidance point towards a promising future.