Strong Spatial Biology Momentum and COMET Backlog
Spatial Biology delivered mid-teens growth overall with the COMET Multiomic Spatial Platform growing more than 65% in the quarter; company exited the quarter with a record COMET backlog and installed the first COMET system in China, positioning the platform for continued scaling.
GMP Protein Growth (Excluding Fast-Track Customers)
GMP protein portfolio grew nearly 50% year-over-year when excluding the two fast-track cell therapy customers that created timing effects, underscoring strong demand from advancing cell therapy programs.
Proteomic Analysis Strength and Regulatory Milestone
Proteomic Analysis instruments delivered mid-single-digit growth supported by favorable instrument placements and utilization; Ella platform showed strong adoption (3-year neurology assay portfolio CAGR of 50%) and achieved CE-IVD marking enabling clinical use in Europe.
Large Pharma and China End-Market Strength
Large pharmaceutical customers delivered their sixth consecutive quarter of double-digit growth; China achieved positive organic growth for the fourth consecutive quarter (low single-digit growth), with increasing demand from biopharma and CRO/CDMO customers focused on ADCs, cell therapy and autoimmune disorders.
Profitability and Margin Expansion (Sequential)
Adjusted operating margin was 34.2% in Q3, representing a 310 basis point sequential improvement over fiscal Q2; adjusted gross margin improved sequentially by 190 basis points to 70.4%.
Solid Cash Generation and Strong Balance Sheet
Generated $86.7 million in operating cash flow in Q3, with $9.1 million in net capital expenditures; ended the quarter with $209.8 million in cash and bank debt of $200 million, and total leverage below 1x EBITDA.
Reported EPS and GAAP Improvement
Adjusted EPS was $0.53 (down $0.03 year-over-year) while GAAP EPS improved to $0.32 from $0.14 in the prior year period, reflecting improved GAAP profitability despite some mix headwinds.
Strategic Portfolio Simplification and AI Integration
Announced strategic brand alignment consolidating 10 brands into 3 (R&D Systems, Bio-Techne Spatial Biology, Bio-Techne Diagnostics) to simplify customer engagement; investing AI internally to design novel proteins using five decades of proprietary data, and positioning Bio‑Techne as a data provider supporting AI-driven discovery.