Bio-Techne Sees 100 Basis Points Margin Expansion in FY26 Following Exosome Diagnostics Divestiture.

Bio-Techne Corporation reported 100 basis points of margin expansion for FY26 following the divestiture of Exosome Diagnostics. The company achieved 3% organic revenue growth and strong demand from large pharma for automated proteomic analytical instrumentation and cell therapy.

Title: Bio-Techne Corporation Reports 100 Basis Points of Margin Expansion for FY26

Bio-Techne Corporation (NASDAQ: TECH) announced its financial results for the fiscal year ending June 30, 2025, revealing a significant margin expansion of 100 basis points (bps) for FY26 following the divestiture of Exosome Diagnostics. The company reported 3% organic revenue growth, driven by strong demand from large pharma for automated proteomic analytical instrumentation and cell therapy.

The company's adjusted earnings per share (EPS) for the fiscal fourth quarter 2025 were 53 cents, surpassing the Zacks Consensus Estimate by 6% [2]. The quarter's adjustments eliminated the impact of certain one-time items, including amortization of intangibles and restructuring-related costs. GAAP loss per share was 11 cents compared to EPS of 25 cents in the prior-year quarter. For the full year, adjusted EPS of $1.92 topped the Zacks Consensus Estimate by 1.1% [2].

Revenue in the fiscal fourth quarter was $316.9 million, up 3.5% year over year on a reported basis and 3% on an organic basis, surpassing the Zacks Consensus Estimate by 0.48% [2]. Full-year revenues were $1.22 billion, a 5.2% improvement on a reported basis from fiscal 2024 (up 5% organically), matching the Zacks Consensus Estimate [2].

The company's gross profit fell 2.2% to $198.8 million, with the gross margin contracting 371 basis points (bps) to 62.7% on a 15% rise in the cost of sales. Selling, general, and administrative expenses escalated 47.2% to $196.6 million. Research and development expenses totaled $26 million, up 8.5% year over year. Total operating expenses were $222.7 million, up 41.4% from the prior-year quarter’s level. The company generated an operating loss of $23.9 million in the fiscal fourth quarter compared to the $45.8 million operating profit in the year-ago quarter [2].

Bio-Techne exited the fiscal fourth quarter with cash and equivalents of $162.2 million compared with $151.8 million at the end of fiscal 2024. Long-term debt obligations totaled $346 million at the end of the reported quarter compared with $319 million at the end of the prior-year quarter. Cumulative net cash provided by operating activities was $287.6 million at the end of the fiscal fourth quarter compared with $299 million a year ago [2].

The company's performance in the cell therapy and protein analysis instrumentation growth pillars was particularly strong, supported by a resilient pharma market. The divestiture of Exosome Diagnostics contributed to the margin expansion and improved overall financial health [2].

Investors should monitor Bio-Techne's continued performance in its core segments and its ability to maintain strong partnerships and technological advancements to drive future growth.

References:
[1] https://www.nasdaq.com/articles/digital-turbine-apps-q1-revenue-11
[2] https://www.tradingview.com/news/zacks:698097130094b:0-bio-techne-q4-earnings-beat-estimates-gross-margin-down-stock-falls/