Harvard Bioscience (NASDAQ:HBIO) reported first-quarter 2026 revenue of $20.8 million, down from $21.8 million a year earlier but within the company’s guidance range, as management pointed to growth in new product platforms and biopharma customers while academic and some Asia-Pacific distributor sales remained pressured.
President and CEO John Duke said the quarter reflected “continued progress” in transforming Harvard Bioscience from a traditional tools provider into a supplier focused on the emerging translational science market. He cited demand for the company’s Mesh MEA organoid platform, BTX electroporation products and SoHo telemetry products as key drivers of the quarter’s performance.
New Products Drive Margin Expansion
Duke said Harvard Bioscience’s new product innovation, or NPI, portfolio is central to its strategy, particularly as biopharma customers adopt new approach methodologies intended to produce more predictive, human-relevant research outcomes.
“As anticipated, growth in consumables and software products in our NPI portfolio is translating into higher margins,” Duke said, adding that the company is working toward “consistent gross margins greater than 60% and recurring revenue approaching 60%.”
Chief Financial Officer Mark Frost said NPI revenue represented more than 12% of total revenue in the quarter, compared with approximately 4% in the year-earlier period. He attributed gross margin improvement to prior cost actions, operational efficiencies and higher-margin NPI revenue.
Duke said sales to pharma and large biotech customers grew more than 20% year over year in the quarter. He described Mesh MEA as enabling long-term electrical recording of organoids and 3D tissue models, BTX as supporting cell engineering and transfection applications, and SoHo telemetry as providing continuous real-time physiological monitoring in preclinical settings.
Regional Results Mixed as China Returns to Growth
Frost said revenue in the Americas declined 9% year over year, primarily due to lower academic and government sales. He said the company expects university-level approvals to increase in the second quarter following the passage of the NIH budget on Feb. 3, noting that those funds must be committed by the Sept. 30 fiscal year-end.
“We are seeing increased proposal activity,” Frost said.
European revenue increased 7% year over year, helped by higher sales through distribution partners and pharma customers. Asia-Pacific revenue declined 9%, reflecting lower distributor sales in several Asian markets. However, China revenue grew 3%, driven mainly by contract research organization sales.
Duke said Harvard Bioscience has launched a “Made in China” initiative, beginning with BTX electroporation products, in response to incentives for Chinese companies to source domestically. The company plans to expand the initiative to other products in 2026.
During the question-and-answer session, Frost said the company expects Asia to be “flat to growth” for the year based on the Made in China program and progress with NPI products. Duke said Asia-Pacific demand includes both restarted business and new facility expansions by some customers.
Guidance Reaffirmed for 2026
Harvard Bioscience reaffirmed its full-year 2026 outlook. The company continues to expect revenue growth of 2% to 4%, adjusted gross margin of 58% to 60%, and adjusted EBITDA growth of 6% to 10%.
For the second quarter, management guided for:
- Revenue: $20.5 million to $22.5 million
- Adjusted gross margin: 57% to 59%
- Adjusted EBITDA: $1 million to $2 million
Frost said the midpoint of the second-quarter outlook implies 5% revenue growth, 160 basis points of margin expansion and flat adjusted EBITDA compared with the prior year. He also noted that the company has reinstated bonuses and merit-based compensation after suspending them in 2025 due to macroeconomic headwinds. Harvard Bioscience has also increased sales activities, including trade shows and travel, which are built into its EBITDA outlook.
Project Viking Remains on Track
Duke said Project Viking, the company’s manufacturing consolidation initiative, remains on track. The program includes the phased closure of the company’s Holliston, Massachusetts facility and the transfer of operations to sites in Minneapolis and Europe.
In the first quarter, Harvard Bioscience moved one product line and expects to move several more in the second quarter. Duke said the company remains confident Project Viking will generate $3 million in savings in 2027 and $4 million annually thereafter.
Frost said the company reported a GAAP operating loss of $1.2 million in the quarter, compared with a loss of $49.7 million a year earlier, which included a $48 million goodwill impairment. Adjusted operating income was $0.2 million, slightly below $0.3 million in the prior-year quarter.
Cash used in operations was $0.7 million, compared with $3 million generated from operations in the prior-year quarter. Frost said the change was primarily due to higher inventory, including inventory built to improve lead times and support Project Viking, as well as one-time administrative costs related to the company’s reverse split and S-3 filing.
Management Points to CRO and Academic Recovery
In response to analyst questions, Duke said the company is seeing an “unthawing” in academic spending after budget approvals, with orders received in March expected to translate into second-quarter revenue. He also said sales to contract research organizations increased in China, the Americas and Europe.
Asked whether CRO spending reflected new projects or restarted work, Duke said North American activity was “mostly” a restart of projects that had slowed, and that indications suggest spending in North America and Europe will be up versus the prior year.
Duke also said the company believes its newer, higher-margin products and greater mix of recurring revenue from disposables, service and software can support gross margins above 60% over the next several years.
About Harvard Bioscience (NASDAQ:HBIO)
Harvard Bioscience, Inc develops, manufactures and distributes life science research instruments and consumables used by academic, biopharmaceutical and government laboratories worldwide. The company’s product portfolio spans cellular physiology, microfluidics, electrophysiology and lab automation, providing tools that enable researchers to study everything from cell behavior and organ function to drug delivery and tissue mechanics.
Through its operating units—most notably Harvard Apparatus, BTX, Radnoti and Warner Instruments—Harvard Bioscience offers a diverse range of scientific equipment including precision pumps, stereotaxic instruments, electroporation and gene delivery systems, perfusion systems and microinjection tools.
