Repligen delivered a standout second quarter, with revenue of $204 million, up 12% reported and 13% organically, driven by broad-based strength across its portfolio. Adjusted gross margin expanded 280 basis points to 53.9%, and adjusted operating margin improved 460 basis points to 16.7%, reflecting volume leverage, pricing, and favorable mix. Adjusted EPS rose 46% to $0.54. The company raised its full-year guidance, now expecting organic growth of 10.5%-13.5% (midpoint 12%, implying no acceleration needed) and adjusted EPS of $2.03-$2.09, up $0.05 at the midpoint. Management cited sustained order momentum, a recovering emerging biotech customer base (high-teens growth for the fifth consecutive quarter), and improving new modality trends as key confidence builders. The Proteins franchise led with an exceptional 50% surge, fueled by OEM partnerships (Purolite), custom resin (Avitide), and growth factors, while Analytics continued strong at 30%+ growth, supported by the SoloVPE Plus upgrade cycle. Chromatography grew low double digits despite tough comps, with large-scale OPUS column units up 18% in the first half. Filtration was a relative laggard, growing only slightly as expected, due to headwinds from a gene therapy customer inventory adjustment, site readiness delays for a key ATF customer, and the Polymem divestiture; however, order patterns improved late in Q2, building backlog for 2027. Geographically, APAC surged 40% (China +60% in first half), North America grew high teens, and EMEA declined mid-singles on a difficult prior-year comparison. On the strategic front, Repligen announced a definitive agreement to acquire BioLife, a cell therapy biopreservation platform, expected to close in Q4 2026. The deal is accretive to growth, margins, and EPS, with at least $20 million synergies in year one and $30 million in year two. Management also launched an integrated solutions initiative targeting large-scale RFP opportunities, winning a second RFP and expecting a third win shortly, positioning for a stronger 2027 capital equipment cycle. Risks include tariff volatility (minimal net impact assumed for 2026) and the potential for uneven recovery in filtration, while opportunities lie in market share gains, new product innovation, and the cell therapy expansion via BioLife.

Financial Performance

• Revenue: $204M (+12% reported, +13% organic)
• Adjusted Gross Margin: 53.9% (+280 bps YoY)
• Adjusted Operating Margin: 16.7% (+460 bps YoY)
• Adjusted EBITDA Margin: 21.4%
• Adjusted EPS: $0.54 (+46% YoY)
• Adjusted Net Income: $31M (+45% YoY)

Business/Product Analysis

• Filtration: Slight growth; consumables (fluid management, flat sheet) solid, offset by ATF/system muted sales, Polymem sale, and gene therapy headwind. Order pickup late Q2 builds 2027 backlog.
• Chromatography: Low double-digit growth; OPUS columns strong, large-scale units +18% in H1. Full-year guidance >20%.
• Proteins: +50% growth; broad strength across OEM (Purolite), custom resin (Avitide), and growth factors. Full-year guidance raised to mid-teens (from low double digits).
• Analytics: +30%+ growth; SoloVPE Plus upgrade cycle, broad downstream strength. Full-year guidance raised to >25%.

Regional Performance

• North America: ~51% of revenue, high-teens growth.
• EMEA: ~32% of revenue, mid-single-digit decline on tough comp.
• APAC: ~17% of revenue, +40% growth; China +60% in H1, driven by pharma and CDMOs.

Key Metrics

• Emerging Biotech: High-teens growth (5th consecutive quarter, stable pattern).
• New Modalities: +9% ex-gene therapy headwind; best quarter since Q1 2025.
• Capital Equipment: Stable QoQ; H1 high-single-digit growth; orders improved significantly (book-to-bill >1).
• Adjusted OpEx: +6% reported (+8% organic); cautious hiring, transient employment cost benefit in Q2.

Guidance (Excluding BioLife)

• Full-Year 2026 Revenue: $813M-$834M (midpoint $824M), representing 10%-13% reported growth, or 10.5%-13.5% organic (midpoint 12%, +1 full point from prior).
• Gross Margin Expansion: 110-160 bps (unchanged).
• Adjusted Operating Income: $128M-$134M; Operating Margin 15.7%-16.0% (190-220 bps expansion).
• Adjusted EPS: $2.03-$2.09 (midpoint $2.06, +$0.05 from prior).
• Tax Rate: ~22% (lower end of prior 22%-23% range).
• CapEx: 3%-4% of revenue.

Cadence Commentary

• Q3 revenue expected to increase slightly sequentially; Q3 gross margin to be the lowest of the year (down YoY) due to mix; Q4 gross margin benefits from volume leverage.
• Q3 OpEx to step up from Q2 to levels consistent with Q1; Q4 OpEx to step up further for growth investments (sales, R&D, IT).
• Q3 operating margin roughly flat YoY; H2 margins lower than H1, but full-year expansion on track.

Strategic Initiatives

• BioLife acquisition expected to close in Q4 2026; no impact in current guidance.
• Integrated Solutions team launched to target large-scale RFPs; two wins secured, third imminent.
• Transformation Office driving Fit for Growth and BioLife integration.

Q (Matt Larew, William Blair): How did order trends progress through Q2 and into early Q3? What does that mean for visibility to guidance? A (Olivier Loeillot): Orders improved strongly from late Q1 through Q2 across all franchises. This gave us confidence to raise guidance. At the midpoint, we need no acceleration; 12% organic H1 equals full-year midpoint. Proteins and Analytics drove the raise; Filtration remains the laggard as expected.

Q (Dan Arias, Stifel): On capital equipment, H1 high-single-digit growth, but Q1 was stronger. How does H2 shape up vs H1, and what does this imply for 2027? A (Jason Garland): Q2 equipment revenue was muted as expected, but orders picked up significantly (book-to-bill >1). We won a second RFP and a third is imminent. Backlog building for 2027; some equipment may ship late 2026 but most likely early 2027, setting up a stronger year.

Q (Casey Woodring, J.P. Morgan): What drove the 50% Proteins growth? Also, margin cadence: how much does gross margin step up from Q3 to Q4, and how should we model OpEx in H2? A (Olivier Loeillot): Proteins strength was broad: OEM with Purolite, Avitide custom resin, and growth factors all strong. We raised full-year guidance to mid-teens. A (Jason Garland): Gross margin guide unchanged at +135 bps for full year; mix more favorable in H1 (neutral for full year, so H2 mix pressures). OpEx: Q3 up a couple million from Q2, Q4 up similarly; still well below revenue growth (high single-digit OpEx growth vs double-digit revenue).

Q (Dan Leonard, RBC): On order conversion, you said ATF orders fuel 2027. Does that apply to both consumables and equipment? What limits faster conversion? A (Olivier Loeillot): Mostly capital equipment, where customer plant readiness dictates delivery. Sometimes consumables too, but less common.

Q (Brendan Smith, TD Cowen): Filtration headwinds: should we expect similar spread across Q3 and Q4? Any update on Metenova/ATF synergies? A (Olivier Loeillot): Headwinds (gene therapy, ATF customer delays, Polymem) will impact Q3 and normalize by Q4. We've won more ATF programs in H1 2026 than full-year 2025, setting up strong 2027 recovery.

Q (Puneet Souda, Leerink): Can you unpack 40% APAC growth, especially China? Also thoughts on 2027 organic growth ex-BioLife? A (Olivier Loeillot): APAC growth was broad, China +60% in H1 driven by filtration, chromatography, analytics. Proteins less there. OEM partnership in China progressing; local manufacturing expected early 2027. 2027 outlook not provided, but strong RFP pipeline and integrated solutions team position us well.

Q (Anna Snopkowski, KeyBanc): What factors drive low vs high end of guidance? A (Olivier Loeillot): High end requires continued strength in proteins/analytics and a further pickup in ATF orders; low end would reflect industry softness, which we are not seeing. Emerging biotech and new modalities improving give us confidence.

Q (Matt Hewitt, Craig-Hallum): Competitive landscape? Are RFP wins market share shifts? A (Olivier Loeillot): We now have a seat at the table with ~80% of large-scale hardware. Our PAT integration differentiates us. This is likely market share gain as customers seek smart manufacturing solutions.

Q (Max Smock, Stephens): Tariff impact? How much headwind in Q2 and full year? A (Jason Garland): Q2 had a $1M revenue headwind from refunds (not adjusted from organic growth). Full-year tariff impact now less than the 50 bps previously expected; minimal net impact assumed in guide.

Q (Michael Polark, Wolfe): Are your ATF headwinds related to same customers seeing resin shipment pushouts from peers? Does this give confidence in 2027 super-normal growth? A (Olivier Loeillot): We disclosed our specific customer challenges (inventory and site readiness) early and transparently. Hard to link to others. Our business has improved since those headwinds were identified.

Q (Matt Stanton, Jefferies): Proteins: what is market growth? How durable are growth drivers (Tantti, Avitide, Purolite)? A (Olivier Loeillot): Resin market grows 8-10% (trending lower); growth factors/cytokines low-to-mid teens. We are gaining share via innovation and broader adoption beyond new modalities. Durability is high as we are still early in customer conversions.

Q (Subbu Nambi, Guggenheim): Proteins driven by new modalities or biosimilars? Also, any changes in Chromatography order patterns? A (Olivier Loeillot): Proteins strength is broad, not just new modalities; we have successes with new modality resins (AAV) and also with established products. Chromatography continues to see strong CDMO and pharma adoption of pre-packed columns; still small fraction of total market.