Cytek Biosciences Earnings Call Reveals Mixed Outlook

Cytek Biosciences, Inc. ((CTKB)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for Cytek Biosciences, Inc. painted a mixed picture for the company. On one hand, there was notable growth in recurring revenue and the U.S. market, alongside the successful launch of new products and an expanding Cytek Cloud user base. On the other hand, challenges in the EMEA and APAC regions, a decline in overall revenue, and lowered full-year guidance underscore ongoing difficulties. This combination of factors results in a balanced outlook for Cytek.

Strong Recurring Revenue Growth

The earnings call highlighted a robust increase in recurring revenue, with service and reagent revenue each rising by 18% compared to the second quarter of 2024. The recurring revenue businesses now account for 32% of the trailing 12-month sales, marking a 16% growth year-over-year.

Growth in U.S. Revenue

Cytek reported a 7% increase in total U.S. revenue over the second quarter of 2024, primarily driven by service and reagent sales. This growth is a positive indicator for the company’s performance in its home market.

Launch of New Products

The introduction of the Cytek Aurora Evo system and Micro Muse has enhanced Cytek’s product offerings, catering to both high-end and entry-level applications. These new products are expected to strengthen the company’s market position.

Cloud User Base Expansion

Cytek’s Cloud user base has grown by 27% since the beginning of 2025, reaching over 20,500 users as of June 30, 2025. This expansion reflects the increasing adoption of Cytek’s cloud solutions.

Overall Revenue Decline

Despite some positive trends, Cytek’s second quarter revenue was $45.6 million, down 2.2% from the second quarter of 2024. This decline was attributed to lower product revenue in the EMEA and APAC regions.

EMEA and APAC Weakness

The EMEA region experienced an 11% revenue decline due to weak instrument sales, while APAC saw a 12% decline in Q2 following strong performance in Q1. These regional challenges have impacted Cytek’s overall revenue.

Negative Overall Revenue Guidance

Cytek’s full-year 2025 revenue is projected to be between $196 million and $205 million, indicating a potential growth range of minus 2% to plus 2% compared to 2024. This guidance reflects the macroeconomic challenges and market conditions affecting capital spending, particularly in the EMEA and APAC regions.

GAAP Gross Profit Margin Decrease

The GAAP gross profit margin decreased to 52% from 55% in the prior year quarter, impacted by lower product gross margins and increased material costs.

Forward-Looking Guidance

During the earnings call, Cytek provided guidance for the full year 2025, expecting revenue to be between $196 million and $205 million. This reflects a slight decrease of 2% to a potential increase of 2% over 2024. The company remains optimistic about its recurring revenue streams and is committed to investing in innovation and strategic priorities.

In conclusion, Cytek Biosciences, Inc.’s earnings call presented a balanced outlook, with strong growth in recurring revenue and U.S. markets countered by challenges in EMEA and APAC regions. The company’s commitment to innovation and strategic investments is expected to drive future growth, despite the current hurdles.