Life sciences company Bio-Techne (NASDAQ: TECH) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 4.2% year on year to $316.2 million. Its non-GAAP profit of $0.56 per share was 10.4% above analysts’ consensus estimates.
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Bio-Techne (TECH) Q1 CY2025 Highlights:
- Revenue: $316.2 million vs analyst estimates of $317.4 million (4.2% year-on-year growth, in line)
- Adjusted EPS: $0.56 vs analyst estimates of $0.51 (10.4% beat)
- Adjusted EBITDA: $122.2 million vs analyst estimates of $114.1 million (38.7% margin, 7.1% beat)
- Operating Margin: 12.2%, down from 22.1% in the same quarter last year
- Free Cash Flow Margin: 9.8%, down from 21.3% in the same quarter last year
- Organic Revenue rose 6% year on year (2.1% in the same quarter last year)
- Market Capitalization: $7.54 billion
"Despite a dynamic macroenvironment, the Bio-Techne team once again executed at a high level and delivered strong third quarter results," said Kim Kelderman, President and Chief Executive Officer of Bio-Techne.
Company Overview
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Sales Growth
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Bio-Techne’s 9.9% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Bio-Techne’s recent performance shows its demand has slowed as its annualized revenue growth of 3.7% over the last two years was below its five-year trend. 
We can better understand the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Bio-Techne’s organic revenue averaged 3.4% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results. 
This quarter, Bio-Techne grew its revenue by 4.2% year on year, and its $316.2 million of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 7.6% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and indicates its newer products and services will spur better top-line performance.
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Operating Margin
Bio-Techne has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average operating margin of 22.3%.
Looking at the trend in its profitability, Bio-Techne’s operating margin decreased by 10.3 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 11.1 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.
This quarter, Bio-Techne generated an operating profit margin of 12.2%, down 9.8 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Bio-Techne’s remarkable 9.6% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
In Q1, Bio-Techne reported EPS at $0.56, up from $0.48 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Bio-Techne’s full-year EPS of $1.89 to grow 10.2%.
Key Takeaways from Bio-Techne’s Q1 Results
It was encouraging to see Bio-Techne beat analysts’ EBITDA and EPS expectations this quarter despite in line revenue. Zooming out, we think this was a decent quarter. The stock traded up 6.1% to $50.54 immediately following the results.
Is Bio-Techne an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
