Repligen Corporation

First-quarter 2026 revenue was $194 million, up 15% reported year over year and 11% organic; foreign currency added 3 points and the upstream Analytics acquisition added 2 months of inorganic contribution. Adjusted gross profit was $108 million with adjusted gross margin of 55.5%, up 180 basis points year over year. Adjusted income from operations was $30 million, up 28% year over year, and adjusted operating margin was 15.4%, up 160 basis points. Adjusted EBITDA was $40 million, just under 21% margin; adjusted net income was $27 million, up 22%; adjusted diluted EPS was $0.48 versus $0.39 a year ago. Cash and marketable securities ended the quarter at $785 million, up $17 million sequentially. For full-year 2026, management now expects revenue of $803 million to $833 million, or 9% to 13% growth on both a reported and organic basis. They now expect 110 to 160 basis points of gross margin expansion, adjusted operating income of $124 million to $132 million, and adjusted diluted EPS of $1.97 to $2.05. The guide assumes mid-single-digit Filtration growth, greater than 20% Chromatography growth, Proteins growth greater than low double digits, and 20%+ Analytics growth. Management also said Q2 organic growth should be similar to Q1, Q2 gross margin should be slightly below the full-year range, and the year does not require a second-half acceleration to hit the midpoint of guidance.

Olivier Loeillot struck an upbeat tone, saying execution was strong across all customer segments and geographies and that the quarter reinforced confidence in the full-year outlook. He highlighted strategic actions including the launch of a transformation office, the sale of the noncore Polymem business, and a new OEM partnership in China. He framed China, analytics, proteins and process intensification as major multiyear growth opportunities and repeatedly emphasized confidence that capital equipment demand will eventually open up more broadly.

Jason Garland focused on margin mechanics, liquidity and the updated guide. He said Q1 gross margin benefited from volume leverage, pricing execution, favorable mix and some cost absorption timing, while OpEx grew 11% organically as the company balanced investment and margin expansion. He noted $785 million of cash and marketable securities at quarter-end, $20 million of cash from operations, $5 million of CapEx, and expected CapEx of about 3% to 4% of 2026 revenue. He also said the transformation office should deliver at least one point of annualized margin benefit by the end of 2027, with $5 million to $6 million of nonrecurring charges through 2027.

Analysts pressed on what drove the Q1 margin beat, and management said it was mostly volume leverage, pricing and mix, with some timing benefits that will unwind later in the year. They also asked about the transformation office, and management said it is intended to create a more structured fit-for-growth program and is additive to normal annual margin expansion. Other key questions centered on equipment orders, China, emerging biotech and ATF; management said order intake improved sharply in March, China demand is largely local and strong, emerging biotech is rebounding but still below historical levels, and ATF is temporarily moderated by customer inventory timing but should become a tailwind again in 2027.