[Management View]
Cytek Biosciences reported a 2% year-over-year increase in total revenue for Q3 2025, driven by strong performance in the Asia Pacific region and growth in recurring revenue streams such as service and reagents. The company emphasized strategic investments in operational efficiency, particularly in reagent logistics and European expansion, to enhance delivery times and support recurring revenue growth.

[Outlook]
Cytek reaffirmed its full-year 2025 revenue guidance of $196 million to $205 million, assuming stable foreign exchange rates. The company expects continued growth in APAC and stabilization in the US, while EMEA remains under pressure. Cytek plans to focus on expanding its recurring revenue base and leveraging its strong balance sheet for targeted investments.

[Financial Performance]
Year-over-year, total revenue increased by 2% to $52.3 million, with APAC revenue up 25% and US revenue up 12%. EMEA revenue declined by 28% due to reduced instrument sales. Adjusted EBITDA decreased to $2.5 million from $7.6 million in the prior year, primarily due to lower gross profits and higher operating expenses.

[Q&A Highlights]
Question 1: Can you discuss the differences in the Aurora Evo product and its growth contribution?
Answer: The Aurora Evo includes features like higher throughput and small particle detection, tailored for pharma customers. It is expected to drive growth by meeting specific customer needs.

Question 2: Is there a leading indicator from CROs that biopharma might want to own their instruments?
Answer: Biopharma and CROs are grouped together, with instrument revenue to this group growing 12% worldwide. The favorable response suggests potential for increased ownership.

Question 3: How much of the US revenue growth is due to easier comps versus execution?
Answer: The US performance is attributed to strong service and reagent growth, with flat instrument revenue against a high benchmark from the previous year.

Question 4: What is the quality of customer conversations regarding 2026 budgets?
Answer: APAC shows strong growth, while the US is stabilizing. Biopharma is strong, but academic and government sectors remain weak. Trends are expected to continue barring external shocks.

Question 5: What are the key assumptions behind the 2025 outlook?
Answer: A typical Q4 budget flush from biopharma customers is expected, with strong service and reagent momentum in APAC and stable US performance.

Question 6: How has US academic and government demand trended since last August?
Answer: Demand remains down due to funding pressures, but biopharma momentum is strong. No significant changes are expected in the near term.

Question 7: What initiatives are in place to increase reagent market capture?
Answer: Improvements in operational efficiency and logistics, expansion of European facilities, and leveraging Cytek cloud and custom reagent design are key initiatives.

Question 8: How reliant is the Q4 guide on budget flush versus seasonality?
Answer: Budget flush and seasonality are linked, with biopharma companies incentivized to spend remaining budgets in Q4.

Question 9: What is the approach to capital deployment, including share buybacks and M&A?
Answer: The company aims to balance share repurchase and M&A, with share buybacks sized to free cash flow and opportunistic execution. M&A opportunities are reviewed regularly.

[Sentiment Analysis]
Analysts showed interest in product differentiation, market trends, and strategic initiatives. Management maintained a positive tone, emphasizing growth areas and strategic investments while acknowledging challenges in EMEA.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------|---------|---------|
| Total Revenue | $52.3M | $51.3M |
| APAC Revenue Growth | 25% | N/A |
| EMEA Revenue Decline | 28% | N/A |
| US Revenue Growth | 12% | N/A |
| Adjusted EBITDA | $2.5M | $7.6M |
| Net Loss | $5.5M | $0.9M Net Income |

[Risks and Concerns]
Key risks include a significant decline in EMEA revenue due to shifting government spending priorities and weaker demand from academic and government customers. Profitability is pressured by increased operating expenses, including patent litigation costs and a nonrecurring write-off.

[Final Takeaway]
Cytek Biosciences demonstrated resilience with modest revenue growth driven by APAC and recurring revenue streams, despite challenges in EMEA. Strategic investments in logistics and product innovation, such as the Aurora Evo, are expected to support future growth. The company remains focused on expanding its recurring revenue base and leveraging its strong balance sheet for targeted investments, while navigating ongoing market challenges.