Harvard Bioscience reported 8% year-over-year revenue growth in the third quarter, to $22.2 million, and reaffirmed its full-year 2026 revenue growth forecast of 3% to 5%. The life-sciences tools company said sales to contract research organizations and customers in China grew at double-digit rates, supported by demand for its organoid, respiratory and fluidics products.
Growth came alongside weaker quarterly profitability and operating cash flow: the company’s net loss widened, gross margin narrowed and cash from operations turned negative. Harvard Bioscience said its Project Viking initiative remains on track for completion by the end of the first quarter of 2027.
Key details
- Third-quarter revenue: Revenue rose to $22.2 million from $20.6 million a year earlier. Foreign exchange reduced reported growth by less than 1%.
- Margins: Gross profit increased to $12.3 million from $12.0 million, but gross margin fell to 55.4% from 58.4%. On an adjusted basis, gross margin was 57.1%, down from 59.2%.
- Earnings and cash flow: The net loss widened to $2.6 million from $1.2 million. Adjusted EBITDA declined to $1.8 million from $2.0 million. Cash used in operations was $0.2 million, compared with $1.0 million of cash provided a year earlier.
- First nine months: Revenue reached $65.7 million, up from $62.8 million. Foreign exchange added about 1.2% to revenue on a constant-currency basis. Gross margin was 56.6%, versus 56.9%; adjusted gross margin was 57.9%, compared with 57.7%.
- Year-to-date earnings: The net loss narrowed to $9.0 million from $53.9 million, largely because the prior-year period included a $48.0 million goodwill impairment. Adjusted EBITDA was nearly unchanged at $4.2 million, versus $4.3 million. Cash used in operations was $0.6 million, compared with $6.8 million of cash provided in the first nine months of 2025.
- Business initiatives: Management pointed to improved results from revamped sales and marketing teams and continued adoption of new products. It said Project Viking remains on schedule for completion by the end of the first quarter of 2027.
- Outlook: The company reaffirmed its forecast for 3% to 5% full-year 2026 revenue growth.
What changes for investors
The quarter showed stronger sales but weaker margins, lower adjusted EBITDA and a shift to modest cash use from operations. The nine-month net-loss improvement is mainly a comparison against the prior year’s large impairment charge, while adjusted EBITDA was slightly lower and operating cash flow materially weaker.