This article first appeared on GuruFocus .
-
Revenue:$22.7 million, up 11% year-over-year (10% on a constant currency basis).
-
Adjusted Gross Margin:57% for the quarter, slightly lower than anticipated due to higher CMT product sales and strong demand in China.
-
Adjusted EBITDA:$1.7 million, up 11% year-over-year, with a 7.3% margin.
-
GAAP Gross Margin:55.6%, or 55.8% after adding back restructuring charges, compared to 56.4% in Q2 2025.
-
Operating Loss:$1 million, compared to a loss of $0.8 million in Q2 2025.
-
Adjusted Operating Income:$1.1 million, representing a 4.9% operating margin.
-
GAAP Diluted EPS:Negative $0.64, compared to negative $0.52 in Q2 2025.
-
Adjusted EPS:Negative $0.14, compared to negative $0.05 in Q2 2025.
-
Cash Used in Operations (First Half):$0.3 million, compared to cash generated of $5.7 million in the year-ago period.
-
Cash and Cash Equivalents:$6.5 million at quarter end.
-
Net Debt:$33.5 million, up roughly $5.6 million year-over-year.
-
Total Debt:$36.7 million, reduced by $3.3 million in unamortized deferred financing costs.
-
Recurring Revenue:Increased to 55% of total revenue in the first half.
-
NPI Revenue Contribution:11% of revenue, versus 3% in the prior year.
-
Americas Revenue:$11.4 million, up 13% year-over-year.
-
Europe Revenue:$6.8 million, up 3% year-over-year (1.5% on a constant currency basis).
-
APAC Revenue:$4.6 million, up 24% year-over-year.
-
China Revenue:$3.1 million, up 29% year-over-year.
-
Full-Year Revenue Growth Guidance:Raised to 3% to 5%, up from 2% to 4%.
-
Full-Year Adjusted Gross Margin Guidance:Revised to 57% to 59%, down from 58% to 60%.
-
Full-Year Adjusted EBITDA Growth Guidance:Reaffirmed at 6% to 10%.
-
Q3 Revenue Guidance:Between $21 million and $22.6 million, with a midpoint of $21.8 million.
-
Q3 Adjusted Gross Margin Guidance:Between 56% and 58%.
-
Q3 Adjusted EBITDA Guidance:Between $1.5 million and $2.5 million.
Release Date: August 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Harvard Bioscience Inc ( NASDAQ:HBIO ) delivered strong Q2 2026 revenue of $22.7 million, up 11% year-over-year, exceeding guidance.
-
The company raised its full-year 2026 revenue growth guidance to 3%-5% from 2%-4%, reflecting strong commercial momentum.
-
Recurring revenue increased to 55% of total revenue in the first half, progressing toward the long-term target of 60%.
-
Project Viking manufacturing consolidation is on track, with two product lines transitioned in Q2 and two more planned for Q3, expected to deliver $3 million in cost savings in 2027.
-
The Made in China localization initiative is progressing well, with strong regional performance and plans to expand localized product lines in the second half.
-
Adjusted EBITDA grew 11% year-over-year to $1.7 million in Q2, reaching the high end of the outlook range.
-
The distribution agreement with Fisher Scientific generated double-digit growth in Q2, broadening customer reach.
-
NPI revenue contribution increased to 11% of revenue, up from 3% in the prior year, indicating successful new product adoption.
Negative Points
-
Adjusted gross margin declined to 57% in Q2, lower than anticipated due to a product mix shift toward lower-margin CMT products and higher China sales.
-
The company revised its full-year 2026 adjusted gross margin guidance down by 100 basis points to 57%-59% from 58%-60%.
-
Operating loss widened to $1.0 million in Q2, compared to a loss of $0.8 million in Q2 2025.
-
Adjusted EPS was negative $0.14 in Q2, worse than the negative $0.05 in Q2 2025.
-
Cash used in operations for the first six months was $0.3 million, compared to cash generated of $5.7 million in the prior year, due to inventory builds and higher interest costs.
-
Net debt increased to $33.5 million, up roughly $5.6 million year-over-year.
-
OpEx increased by $1.2 million in Q2 due to restored salaries and merit, offsetting gross margin improvements.
-
The company has not yet secured a subtenant for the Holliston facility, with expectations for a lease not until Q4 2026 or Q1 2027.
Q & A Highlights
Q: What was the growth rate for the electroporation business and the organoid/MEA product line in the second quarter? A: John Duke (CEO): The electroporation business grew at a strong double-digit rate, and we are seeing the same strong year-to-date performance in our organoids or multichannel systems products.
Q: Can you provide more specifics on the strong China demand? Which product categories drove the growth, and how are sales conducted in that region? A: John Duke (CEO) & Mark Frost (CFO): While Q2 2025 had a lower baseline due to retaliatory tariffs, we saw very strong sales in China this quarter. The growth was driven by organoids/multi-channel systems, BTX electroporation, telemetry, and respiratory/inhalation products. The majority of our sales in China are conducted through distributors, which is our largest contribution to revenue in that market.
Q: What is the implied revenue growth for Q3 and Q4 2026 based on your guidance? A: Mark Frost (CFO) & John Duke (CEO): For Q3, the midpoint of our guidance is $21.8 million, which represents mid-single-digit year-over-year growth. We expect Q4 growth to be slightly lower, in the 4% to 6% range, as we had a very strong Q4 last year.
Q: What percentage of total revenue came from new product innovation (NPI) products in the second quarter? A: Mark Frost (CFO): The NPI revenue contribution was 11% of total revenue in Q2, which is consistent with Q1 and a significant increase from the 3% contribution in the same period last year.
Q: With the release of NIH funding, what is the outlook for the academic market, and how is the company positioned to capitalize on it? A: John Duke (CEO): The academic market in the U.S. is gradually improving. We are actively targeting accounts where funds have been released, deploying our salespeople and distributors to pursue these opportunities. We believe we are well-positioned for year-over-year growth in this segment in the second half of the year.
Q: Has the company found a subtenant for the Holliston facility lease as part of Project Viking? A: Mark Frost (CFO): We have engaged a broker and are actively marketing the space, with a few interested parties having visited the site. However, we have not yet signed a new lease. We do not expect to finalize anything until the fourth quarter of 2026 or the first quarter of 2027, as we won't fully vacate the space until Q1 of next year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
