Repligen’s third quarter saw revenue and non-GAAP profit exceed Wall Street expectations, yet the market responded negatively. Management attributed the quarter’s strong top-line performance to double-digit growth across all product franchises, with analytics and filtration highlighted as standout performers. CEO Olivier Loeillot emphasized the role of new product launches, such as SoloVPE PLUS in process analytics, and noted that biopharma and contract development and manufacturing organizations (CDMOs) both posted over 20% sales growth. However, operating margins were affected by increased investments and one-time expenses, reflecting a deliberate choice to support long-term strategic priorities.
Is now the time to buy RGEN? Find out in our full research report (it’s free for active Edge members).
Repligen (RGEN) Q3 CY2025 Highlights:
- Revenue: $188.8 million vs analyst estimates of $181.9 million (21.9% year-on-year growth, 3.8% beat)
- Adjusted EPS: $0.46 vs analyst estimates of $0.42 (10.6% beat)
- Adjusted EBITDA: $35.93 million vs analyst estimates of $35.09 million (19% margin, 2.4% beat)
- The company lifted its revenue guidance for the full year to $733 million at the midpoint from $725 million, a 1.1% increase
- Management lowered its full-year Adjusted EPS guidance to $1.67 at the midpoint, a 1.2% decrease
- Operating Margin: 8.9%, up from -5.1% in the same quarter last year
- Organic Revenue rose 18% year on year vs analyst estimates of 15% growth (298.4 basis point beat)
- Market Capitalization: $8.45 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Repligen’s Q3 Earnings Call
- Daniel Arias (Stifel) asked about the cadence of order momentum and the sustainability of growth trends, with CEO Olivier Loeillot highlighting "six quarters of sequential order growth" and a return to more normalized industry conditions, although China remains a work in progress.
- Daniel Leonard (UBS) questioned the narrowing of EBIT margin guidance despite higher sales, prompting CFO Jason Garland to explain that "one-time operating expenses" and continued investments in leadership and infrastructure limited margin expansion, even as revenue rose.
- Matt Larew (William Blair) pressed for details on the impact of recent pharma tariffs and the opportunity for Repligen to participate in onshoring projects. Loeillot replied that the company is now seeing "requests for proposals for large hardware investments" and expects onshoring to drive growth from 2026 onward.
- Puneet Souda (Leerink Partners) asked about the sustainability of current organic growth rates and the impact of gene therapy customer headwinds. Loeillot acknowledged the "200 basis point headwind" for next year but stressed the company’s ability to offset with strength in other modalities.
- Steven Etoch (Stephens Inc.) inquired about Asia Pacific growth and future investments. Loeillot described ongoing organizational restructuring and new office openings, with a goal of raising the region’s sales contribution to match industry standards.
Catalysts in Upcoming Quarters
As we look to the next few quarters, our analysts will be watching (1) the pace of adoption for new analytics and protein products, particularly the SoloVPE PLUS upgrade cycle; (2) progress in Asia Pacific, including the impact of recent leadership hires and new office openings; and (3) the company’s ability to maintain margin discipline while investing in infrastructure and digital capabilities. Execution on new product launches and strategic account growth will also be key indicators of sustained momentum.
Repligen currently trades at $150, down from $160.79 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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