Bio-Techne’s second quarter results were met with a negative market reaction despite topping Wall Street’s revenue and profit expectations. Management attributed the performance to robust growth from large pharmaceutical customers, driven by continued demand for automated proteomic analytical instruments and cell therapy solutions. However, the company faced margin compression, which President and CEO Kim Kelderman linked to unfavorable product mix and ongoing challenges in the biotech and academic funding environments. The divestiture of the Exosome Diagnostics business was highlighted as a strategic step to streamline operations and focus on core growth pillars.
Is now the time to buy TECH? Find out in our full research report (it’s free).
Bio-Techne (TECH) Q2 CY2025 Highlights:
- Revenue: $317 million vs analyst estimates of $314.7 million (3.5% year-on-year growth, 0.7% beat)
- Adjusted EPS: $0.53 vs analyst estimates of $0.50 (6.1% beat)
- Adjusted EBITDA: $115.6 million vs analyst estimates of $110.2 million (36.5% margin, 4.9% beat)
- Operating Margin: -7.5%, down from 15% in the same quarter last year
- Organic Revenue rose 2.6% year on year vs analyst estimates of 2.2% growth (38.9 basis point beat)
- Market Capitalization: $8.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bio-Techne’s Q2 Earnings Call
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Puneet Souda (Leerink Partners) asked about Bio-Techne’s expectations for Protein Sciences segment growth amid ongoing uncertainty. CFO Jim Hippel explained that segment growth rates are not expected to change materially until clarity emerges around NIH funding and pharmaceutical tariffs.
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Dan Leonard (UBS) inquired whether Bio-Techne could continue to outperform the market by 500 basis points. CEO Kim Kelderman acknowledged that in highly turbulent environments, outperformance is harder to predict but maintained confidence in the company’s long-term differentiation once uncertainties subside.
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Daniel Arias (Stifel) requested details on the sources of academic funding beyond NIH. Hippel clarified that less than one-third of U.S. academic revenue is directly tied to NIH grants, with the remainder coming from other federal and private sources.
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Matt Larew (William Blair) asked what would catalyze increased customer spending as uncertainties resolve. Hippel responded that customer behavior is currently more conservative than actual funding outcomes, and resolution of NIH budgets or policy clarity could prompt a rebound in academic and biotech demand.
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Kyle Boucher (TD Cowen) questioned trends between large pharma and biotech segments. Hippel noted that large pharma continued to deliver double-digit growth for Bio-Techne, while smaller biotech remains constrained by a weak funding environment.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be watching (1) the resolution of U.S. policy debates surrounding NIH funding and pharmaceutical tariffs, (2) the pace of recovery in academic and biotech spending as uncertainties settle, and (3) the impact of recent product launches and the Exosome Diagnostics divestiture on margin trends. Progress in China’s market stability and execution of targeted M&A will also be important indicators of Bio-Techne’s ability to deliver on its strategic objectives.
Bio-Techne currently trades at $51.75, down from $54.61 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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