Standard BioTools Q2 rev. $42mln, SomaLogic sold to Illumina for up to $425mln.

• Standard BioTools reports Q2 2025 revenue of $42.0 million • Revenue from continuing operations at $21.8 million • Announced sale of SomaLogic to Illumina for up to $425 million • Cash & cash equivalents at $240 million as of June 30, 2025 • Expected $550 million at SomaLogic deal close in H1 2026

Standard BioTools Inc. (NASDAQ: LAB) has reported its second-quarter 2025 financial results, showcasing a strategic transformation with the sale of its SomaLogic division to Illumina. The company reported a Q2 revenue of $42.0 million, with revenue from continuing operations at $21.8 million. The sale of SomaLogic to Illumina for up to $425 million in cash plus future royalties significantly strengthens the company's balance sheet, with cash and cash equivalents at $240 million as of June 30, 2025. The company expects to have at least $550 million post-SomaLogic deal closure in H1 2026.

The strategic pivot is highlighted by the announced sale of SomaLogic to Illumina, which will provide Standard BioTools with substantial capital for strategic acquisitions. The company's cash position is expected to be significantly bolstered, with at least $550 million available post-transaction. This capital will be deployed towards "high-quality, underappreciated assets" to drive scale and growth, signaling an aggressive inorganic growth strategy ahead.

Key segment performance includes consumables revenue of $10.5 million, up 18% year-over-year, indicating improved recurring revenue streams across imaging, flow, and microfluidics product lines. Instruments revenue declined 26% to $5.2 million, reflecting capital constraints in end-markets. Services revenue also fell 8% to $6.1 million, partly due to improved instrument quality requiring less maintenance.

The company's margin profile is improving despite revenue challenges. Non-GAAP gross margins increased to 54.1% from 48.6% in the year-ago quarter, driven by favorable product mix and efficiency improvements from their Standard BioTools Business System. Operating expenses decreased 11% to $36.3 million, reflecting merger synergies and productivity gains. The net loss narrowed significantly to $17.7 million from $25.4 million in Q2 2024, a 31% improvement. Adjusted EBITDA loss improved by $1.2 million to $16.1 million. The company is targeting adjusted EBITDA break-even in 2026, indicating a clear path to profitability.

For fiscal year 2025, management projects combined revenue of $165-175 million, with continuing operations expected to contribute $78-83 million. This outlook accounts for anticipated NIH funding pressures, which the company expects will cause a high single-digit millions decline in Americas academic revenue.

The sale of SomaLogic transforms Standard BioTools into a leaner operation with substantial capital for strategic acquisitions. Management explicitly states they plan to deploy this capital towards "high-quality, underappreciated assets" to drive scale and growth, signaling an aggressive inorganic growth strategy ahead.

References:
[1] https://www.ainvest.com/news/standard-biotools-q2-2025-earnings-outlook-strategic-shifts-revenue-pressures-path-creation-2508/
[2] https://www.stocktitan.net/news/LAB/standard-bio-tools-reports-second-quarter-2025-financial-ku9tnefeko63.html