BioLife Solutions’ 2026 Growth Outlook Shifts from Clinical to Commercial, Delays CryoCase Adoption Timeline

Date of Call: Feb 26, 2026

Financials Results

• Revenue: Q4: $24.8M, up 20% YOY. Full Year: $96.2M, up 29% YOY.
• EPS: Not explicitly provided. Q4 adjusted net income was $1.9M. Full Year adjusted net income was $6.3M.
• Gross Margin: Q4 adjusted: 64%, compared to 67% prior year. Full Year adjusted: 66%, compared to 69% prior year.
• Operating Margin: Q4 adjusted operating income was $0.9M vs. adjusted operating loss of $0.2M prior year. Full Year adjusted operating income was $2.9M vs. adjusted operating loss of $2.6M prior year.

Guidance:

• Revenue for 2026 expected to be $112.5M to $115M, representing growth of 17% to 20%.
• Expect GAAP and adjusted gross margin in the mid-60s for full year 2026.
• Expect to generate full year positive GAAP net income and further expansion of adjusted EBITDA margins compared to 2025.

Business Commentary:

Revenue Growth and Strategic Focus:

• BioLife Solutions reported total revenue of $96.2 million for the full year 2025, representing an increase of 29% over the prior year.
• The growth was driven by increased demand for biopreservation media from customers with commercially approved therapies and the culmination of a multiyear strategic transformation.

Commercial Customer Mix and Market Position:

• Commercial customers accounted for nearly 50% of revenue in 2025, up from the low 40s range in 2024.
• This shift reflects the ongoing move toward later-stage and approved therapies, reinforcing the stability of BioLife's recurring revenue base and its position as a market leader.

Operational and Margin Improvements:

• Adjusted EBITDA increased to $25 million or 26% of revenue for the full year 2025, up from $13.3 million or 18% in the prior year.
• This improvement was primarily due to higher revenue and a decrease in sales tax accrual, despite challenges such as lower bag yields impacting gross margin.

Strategic Partnerships and Expansions:

• BioLife entered into a strategic distribution and product development agreement with QKine Limited, focusing on cytokines as a natural complement to its hPL product line.
• This partnership, along with previous acquisitions, reflects a strategy to expand the product platform through targeted M&A and collaborations.

2026 Financial Guidance and Outlook:

• The company provided 2026 revenue guidance of $112.5 million to $115 million, representing growth of 17% to 20%.
• The guidance is based on expected demand from BPM customers with approved therapies and increased demand for other tools, with a focus on operational excellence and margin expansion.

Sentiment Analysis:

Overall Tone: Positive

• CEO stated '2025 was another strong year for BioLife' and 'We exit the year simpler, more focused and structurally stronger.' He also noted 'we expect 2026 to be another strong year of revenue growth, operating margin expansion and increased profitability' and expressed confidence in the long-term trajectory of the field.

Q&A:

• Question from Matthew Stanton (Jefferies): Maybe just to kick off for the guide, any more color you can provide in terms of assumptions between commercial and clinical? Rod, I think you said commercial went from low 40s to the mix to about 50. Can we see a similar magnitude of uptick in '26 on the commercial side? And then just on the clinical side, are you starting to see some of the positive biotech funding data show up in activity levels or orders from customers?
  Response: Commercial customer revenue is expected to be between 50% and 55% in 2026, not as large an increase as in 2025. No significant uptick is seen from clinical customers as they are small.

• Question from Matthew Stanton (Jefferies): And then just on the bag yield impact, is there any way to quantify what that was as a headwind in terms of margins in the back half of '25? And then, Rod, I think you talked about it as a clear priority for '26. Can you just talk a little bit more about timing and logistics in terms of resolving the bag yield headwind you saw in the back half of the year?
  Response: Bag yield was a 2- to 3-point headwind on gross margin in H2 2025. A solution is found, requiring 90-day customer notification, with higher yield bags expected to impact results around Q4 2026.

• Question from Anna Snopkowski (KeyBanc Capital Markets): This is Anna on for Paul. Congrats on a great quarter. My first question is just around the CAR T market. It seems like we're getting better patient access with the REMS removal. I was just wondering if you've seen this impact your top line at all or just customers' outlook at all? And then could you just remind us your exposure to CAR Ts at this point?
  Response: Commercial exposure to CAR Ts is at least over 80%. The impact of REMS removal is hard to parse as it happened recently and will take time to flow through to increased patient treatments.

• Question from Anna Snopkowski (KeyBanc Capital Markets): And then just quickly following up, on your outlook for 2026, how much would you say is rooted in commercial growth versus dependent on an improving macro conditions in clinical trials?
  Response: The primary driver for 2026 growth is expected to be continued growth from existing commercial customers.

• Question from Brendan Smith (TD Cowen): I actually wanted to follow up on your commentary regarding the cross-selling there just a little bit more. Can you maybe expound a bit on really what ultimate success kind of looks like within that initiative? And sorry if I missed it, but can you just confirm if any contribution through that is included in some of your '26 guidance assumptions?
  Response: Success will be measured by the growth rate of non-BPM tools versus BPM, expecting non-BPM to grow faster. Some contribution from cross-selling is included in 2026 guidance assumptions.

• Question from Steven Etoch (Stephens): Maybe one on the partnership agreement you signed earlier this year. It's a pretty interesting deal, maybe a little outside of your normal deal structure. But what can you share with us just in terms of maybe the margin profile? I guess, first to start, maybe the adoption potential of that product with your CellSeal vials and all that? And secondly, what could the margins look like for that type of business?
  Response: Margin profile reflects anticipated volume but was not disclosed. Revenue from CellSeal vial combination is expected in late 2026/early 2027. It is a long-term strategic move.

• Question from Steven Etoch (Stephens): And then maybe -- you touched on the bags being an issue in the second half of last year, as it relates to CryoCase, do you see that as a potential opportunity to maybe reduce scrap and improve margins long term as CryoCase is adopted?
  Response: CryoCase could replace bags for shipping, potentially reducing scrap. Adoption is 18 to 24 months away, with a process remediation expected to alleviate the scrap issue first.

• Question from Matthew Hewitt (Craig-Hallum Capital Group): Maybe first up, just so I heard you correctly, gross margins are still going to be weighed on a little bit here first half of the year in particular. So should we be thinking somewhat similar in Q1 versus Q4?
  Response: Yes, gross margins are expected to be similar in Q1 as in Q4, with full-year margins in line with guidance as inventory and process changes take effect.

• Question from Matthew Hewitt (Craig-Hallum Capital Group): And then obviously, the QKine partnership is unique. It's an opportunity to get into some new areas. Are you looking or exploring for more of those types of partnerships? Or are you still kicking the tires on potentially adding via acquisition?
  Response: The company is open to targeted acquisitions, minority investments, and strategic collaborations like QKine, with the relationship potentially evolving further.

• Question from Carl Byrnes (Northland Capital Markets): Actually, most of my questions have been answered. I'm just wondering if you're seeing any potential acquisitions that would be in the biopreservation area where the valuations have kind of come back to what would be a more normalized attractive level to pull the trigger.
  Response: No other acquisitions have been identified that provide a competitive advantage beyond existing offerings, unlike the unique PanTHERA acquisition.

• Question from Michael Okunewitch (Maxim Group): I guess I would like to ask a little bit about the QKine collaboration in particular. How comprehensive is this? And are there other commonly used cytokines and growth factors for cell and gene therapy manufacturing that might be the subject of future agreements or M&A activity?
  Response: The deal has narrow exclusivity for certain cytokines and broader nonexclusive access. The partnership is step one, with potential for future agreements or M&A.

• Question from Michael Okunewitch (Maxim Group): And then just to follow up on that. As you're saying, there is exclusivity on a limited number of cytokines, but is that exclusivity going both ways as in terms of who else can use CellSeal for those particular cytokines, potential distribution agreements that you may enter or any acquisition?
  Response: Exclusivity is one-way for BioLife relative to QKine's cytokines. There is loose intent around CellSeal packaging, with no plans for other cytokine manufacturers to use it currently.

Contradiction Point 1

2026 Growth Outlook and Commercial Customer Contribution

Contradiction in the primary driver for 2026 growth, shifting from a mix of commercial and clinical to solely commercial.

Anna Snopkowski (KeyBanc Capital Markets) - Anna Snopkowski (KeyBanc Capital Markets)

20260227-2025 Q4: The primary driver for 2026 growth is continued growth from existing commercial customers, not new clinical trial activity. - [Roderick de Greef](CEO)

How has the removal of REMS for CAR T therapies impacted your top line and customers' outlook, what is your CAR T exposure, and how much of the 2026 outlook is driven by commercial growth versus improving clinical trial conditions? - Brendan Smith (TD Cowen)

20251107-2025 Q3: Growth over the next 24 months will be driven by commercial and late-stage clinical customers... Progress in Phase III trials... will be additive to growth. - [Roderick de Greef](CEO)

Contradiction Point 2

CryoCase Adoption Timeline

Contradiction in the timeline for CryoCase adoption, shifting from near-term commitment to a 18-24 month horizon.

Steven Etoch (Stephens) - Steven Etoch (Stephens)

20260227-2025 Q4: A process remediation is expected to alleviate this, with a timeline of 18–24 months for RCC adoption. - [Roderick de Greef](CEO)

What can you share about the margin profile and adoption potential of the QKine partnership, and could the CryoCase be an opportunity to reduce scrap and improve margins long-term? - Thomas Flaten (Lake Street)

20251107-2025 Q3: Getting closer to a commitment from the customer... Product development team is working on specifications; now at the stage of finalizing commercial commitment before investing resources. - [Roderick de Greef](CEO)

Contradiction Point 3

Cross-Selling Expectations

Contradiction in the expected contribution from cross-selling, shifting from a significant near-term opportunity to a base assumption.

Brendan Smith (TD Cowen) - Brendan Smith (TD Cowen)

20260227-2025 Q4: The guidance includes a base assumption for cross-selling contribution. - [Roderick de Greef](CEO)

How is success defined for the cross-selling initiative, and will it contribute to the 2026 guidance or be considered upside? - Matthew Jay Stanton (Jefferies LLC)

2025Q2: Cross-sell progress is being measured... The company is seeing definite traction and expects to report specific metrics in Q3. The cross-sell opportunity is significant... - [Roderick de Greef](CEO)

Contradiction Point 4

Growth Outlook for Commercial Customers

Contradiction in the projected growth rate for commercial customer revenue, down from a 10-point increase in 2025 to 50-55%.

Matthew Stanton (Jefferies) - Matthew Stanton (Jefferies)

20260227-2025 Q4: For 2026, it is expected to be between 50% and 55%. - [Roderick de Greef](CEO)

What are the assumptions differentiating commercial and clinical aspects in the 2026 guidance, and will commercial growth maintain a similar magnitude as 2025? - Matthew Jay Stanton (Jefferies LLC)

2025Q2: The increased second-half visibility... based on strong customer engagement... The team is highly confident in the overall second-half number. - [Roderick de Greef](CEO)

Contradiction Point 5

M&A/Partnership Strategy and Pipeline

Contradiction in the description of the M&A pipeline and partnership focus, shifting from a few specific opportunities to a broader strategy.

Matthew Hewitt (Craig-Hallum Capital Group) - Matthew Hewitt (Craig-Hallum Capital Group)

20260227-2025 Q4: The company is evaluating opportunities through targeted acquisitions, minority investments, and strategic collaborations, similar to the QKine partnership. - [Roderick de Greef](CEO)

Will gross margins be similarly pressured in Q1 2026 as they were in Q4, and are you pursuing additional partnerships like QKine or exploring acquisitions? - Paul Knight (KeyBanc)

2025Q1: The company is looking at a few M&A opportunities... There are a couple of small tuck-in opportunities, similar to PanTHERA, in the pipeline. - [Roderick de Greef](CEO)