icon
icon
icon
icon
$300 Off
$300 Off

News /

Articles /

Standard BioTools' Q1 2025 Earnings: Navigating Headwinds with Innovation and Cost Discipline

Philip CarterWednesday, May 7, 2025 9:06 am ET
15min read

Standard BioTools Inc. (NASDAQ: LAB) delivered a mixed performance in its Q1 2025 earnings, facing near-term headwinds while laying groundwork for long-term growth through strategic initiatives and operational discipline. The company reported a net loss of $26 million, with revenue declining 10% year-over-year to $40.8 million. However, key metrics such as narrowing net losses, improving EBITDA, and strong instrument sales suggest resilience amid macroeconomic and sector-specific challenges.

Key Financial Takeaways

The quarter highlighted a stark divergence between segments:
- Instrument Revenue: Surged 24% YoY to $7.8 million, driven by demand for the Hyperion XDI spatial imaging system, which was named Nature’s Method of the Year 2024. This technology enables high-throughput spatial proteomics, a growing field in translational research.
- Consumables and Services: Both fell 16% YoY due to delayed U.S. academic funding and reduced lab service backlogs. Management noted these segments remain vulnerable to macroeconomic pressures, particularly in the U.S. academic sector.

Profitability and Liquidity:
- Adjusted EBITDA improved by 29% YoY to -$16.9 million, while net loss narrowed 19% to $26 million.
- Cash reserves remained robust at $261 million, with no material debt, providing a buffer for strategic investments and R&D.
- Adjusted cash burn fell 33% YoY to $31 million, reflecting cumulative cost reductions of $90 million since the SomaLogic merger.

Strategic Initiatives: Building a Durable Platform

CEO Michael Egholm emphasized a focus on operational rigor and diversification, with three pillars driving the growth strategy:

Ask Aime: What's the outlook for Standard BioTools after Q1 2025 earnings?

  1. Product Innovation:
  2. Launched the Hyperion XDI Pro (higher-throughput imaging) and SomaScan 3.7K Select assay, which outperformed competitors like Affinity Proteomics in precision and cost.
  3. Partnered with Illumina to distribute NGS-based proteomics solutions, targeting the $10 billion global sequencing market. This partnership could boost consumables sales through expanded lab adoption.

  4. Cost Discipline:

  5. Implemented $10 million in additional annualized cost cuts in early 2025, reducing non-GAAP operating expenses by 22% YoY.
  6. Leveraged the Standard BioTools Business System (SBS), a lean management framework, to improve quality and reduce waste.

  7. Market Penetration:

  8. International Growth: Noted resilience in APAC markets, offsetting U.S. academic softness.
  9. Biopharma Collaboration: Highlighted high-impact studies, such as identifying 50+ protein biomarkers in prostate cancer research and predicting lung toxicity in cancer treatments, underscoring SomaScan’s clinical utility.

Challenges and Risks

Despite progress, Standard BioTools faces significant hurdles:
- Academic Funding Pressures: U.S. academia revenue is projected to decline mid-teens YoY, impacting consumables and services. Management cited “cautious optimism” due to biopharma and international demand.
- Tariffs and Trade: 10% tariffs on Singapore-manufactured instruments and Chinese shipments of SomaScan kits are estimated to cost low single-digit millions annually. Strategies to pass costs to customers or shift production are in place.
- Competitive Landscape: Intensifying competition in proteomics, particularly from antibody-based technologies, requires ongoing innovation to maintain margins.

Market Outlook and Valuation

LAB Trend

The stock closed Q1 at $1.15, down 8.7% intraday but rebounding slightly in after-hours trading. Analysts remain split, with some citing valuation discounts (P/S ratio of ~1.2x) as attractive amid the company’s $261M cash position.

Ask Aime: "Did Standard BioTools' Q1 earnings show resilience in a challenging market?"

Full-Year Guidance:
- Revenue of $165–175 million (unchanged), with a back-half weighting due to delayed projects and seasonality.
- Aims for adjusted EBITDA profitability by 2026, supported by operational leverage and margin improvements.

Conclusion

Standard BioTools navigates a challenging quarter with a blend of strategic focus and financial discipline. While near-term revenue pressures persist—particularly in U.S. academia—the company’s strong liquidity, instrument-driven growth, and partnerships like the Illumina deal position it to capitalize on long-term opportunities in spatial proteomics and multi-omics.

Crucial catalysts for 2025 include:
1. Hyperion XDI placements: Driving recurring consumables revenue.
2. SomaScan adoption: Leveraging its scientific credibility in high-profile studies.
3. Cost savings: With $90 million in synergies realized post-SomaLogic, further margin expansion is achievable.

Investors should monitor execution risks, including tariff impacts and academic funding trends, but the stock’s valuation and cash-heavy balance sheet suggest a favorable risk-reward profile for those willing to bet on the proteomics revolution.

In the words of CFO Alex Kim: “We remain committed to long-term profitable growth, not short-term gains.” For Standard BioTools, the path to EBITDA positivity by 2026—and leadership in multi-omics solutions—depends on executing this vision with precision.

Comments

Add a public comment...
Post
User avatar and name identifying the post author
Running4eva
05/07
Hyperion XDI Pro could outpace competitors easily.
0
Reply
User avatar and name identifying the post author
kanoa700
05/07
@Running4eva Do you think it'll move the needle?
0
Reply
User avatar and name identifying the post author
stoked_7
05/07
LAB's valuation seems attractive with a P/S ratio of ~1.2x. Analysts divided, but I see potential upside. Keeping an eye on after-hours moves.
0
Reply
User avatar and name identifying the post author
NalonMcCallough
05/07
@stoked_7 I had a small position in LAB last year, sold too early. FOMO hitting hard now with this dip.
0
Reply
User avatar and name identifying the post author
applesandpearss
05/07
@stoked_7 How long you planning to hold LAB? Got any price target in mind?
0
Reply
User avatar and name identifying the post author
skilliard7
05/07
SomaScan's clinical utility is game-changer, watch this space
0
Reply
User avatar and name identifying the post author
CurlyDarkrai
05/07
Instrument sales are a bright spot, but consumables need a boost. Anyone buying the dip?
0
Reply
User avatar and name identifying the post author
Jelopuddinpop
05/07
Standard BioTools navigating challenges with innovation and cost control. Proteomics revolution could be a game-changer. Risk-reward looks favorable to me.
0
Reply
User avatar and name identifying the post author
comoestas969696
05/07
LAB's EBITDA improvement catches my eye. Adjusted cash burn down 33% YoY? That's some serious cost discipline.
0
Reply
User avatar and name identifying the post author
mav101000
05/07
Instrument sales are 🔥, consumables need boost
0
Reply
User avatar and name identifying the post author
BenGrahamButler
05/07
$10 million in additional annualized cost cuts? That's operational rigor right there. Standard BioTools Business System seems to deliver results.
0
Reply
User avatar and name identifying the post author
_hiddenscout
05/07
International resilience is a plus. APAC markets stepping up while U.S. academia falters. Diversification works, folks.
0
Reply
User avatar and name identifying the post author
owter12
05/07
SomaScan adoption in biopharma could be a game-changer. 50+ protein biomarkers in prostate cancer? That's next-level utility.
0
Reply
User avatar and name identifying the post author
smarglebloppitydo
05/07
$LAB's cash reserves are solid, but U.S. academia funding is a dark cloud. 📉
0
Reply
User avatar and name identifying the post author
AkibaSok
05/07
2026 EBITDA profitability goal seems ambitious but doable. Operational leverage and margin improvements could make a difference. LAB's got a roadmap.
0
Reply
User avatar and name identifying the post author
bottlethecat
05/07
@AkibaSok Ambitious, but LAB's cash flow helps.
0
Reply
User avatar and name identifying the post author
Beetlejuice_hero
05/07
LAB's cash reserves are solid, valuation attractive
0
Reply
User avatar and name identifying the post author
JimmyCheess
05/07
Hyperion XDI is a game-changer. Long-term hold for me. Spatial proteomics is the future.
0
Reply
User avatar and name identifying the post author
jstanfill93
05/07
Standard BioTools' cash reserves are solid. $261M cushion can ride out the academic funding dips. Watching Hyperion XDI placements closely.
0
Reply
User avatar and name identifying the post author
NavyGuyvet
05/07
@jstanfill93 Solid cash, but academia's a wildcard.
0
Reply
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App