Cytek Biosciences, Inc. Common Stock 2026 Q2 Earnings Call

Please go ahead. Thank you, operator.

Joining me today from Cytek are Wenbin Jiang, CEO, and Bill McCombe, CFO. Earlier today, Cytek Biosciences released financial results for the second quarter ended June 30th, 2026. If you haven't received this news release or if you'd like to be added to the company's distribution list, please send an email to investors@cytekbio.com. A copy of the news release is also available on the investor relations section of Cytek's website at investors.cytekbio.com. As a reminder, on Slide 2, we will make statements during this call that are forward-looking statements within the meaning of the Federal Securities laws, including statements regarding Cytek's business plans, strategies, opportunities, and financial projections.

These statements are based on the company's current expectations and inherently involve significant risks and uncertainties that could cause actual results or events to materially differ from those anticipated in these statements. Additional information regarding these risks and uncertainties appears in our slide presentation, in the section entitled Forward-Looking Statements in the press release Cytek issued today, and in Cytek's filings with the SEC. This call will also include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles. Additional information regarding our use of non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, may be found on our slide presentation and in today's press release.

While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Except as required by law, Cytek disclaims any duty to update any forward-looking statements, whether because of new information, future events, or changes in its expectations. This conference call contains time-sensitive information and is accurate only as of the live broadcast, August fifth, 2026. Finally, I would like to remind you of the organizational update we mentioned during our last call. During the third quarter of 2026, Cytek will begin operating as three distinct customer-aligned business units: Solutions and Clinical, Research Technology, and Service. For further details about these business units, please see the slide included in the appendix of our presentation.

With that, I will turn the call over to Wenbin.

Thanks, Mark. Welcome everyone, and thank you for your interest in Cytek. On today's call, I will start with a discussion on our performance in the second quarter and highlight a couple of exciting new product launches before turning the call over to Bill for a detailed look at our financials and our updated full-year outlook. Turning to Slide three. We built upon our good start to the year with continued positive momentum through the second quarter, delivering another period of solid revenue growth. Second quarter 2026 revenue was $48.1 million, an increase of 6% year-over-year. Our second quarter performance was driven by strong double-digit revenue growth in the U.S. and in China, mix gains growth from our FSP instruments, and consistent double-digit growth in our service business. Turning to Slide four. Geographically, in the United States, second quarter revenue was $28.2 million, an increase of 18% year-over-year.

This maintains the strong trend from Q1 and reflects impressive growth in instrument revenue in the academic and government sector and in our service business. In EMEA, second quarter revenue was $11.3 million, down approximately 8% year-over-year, reflecting a continuation of the budgetary pressures arising from regional geopolitical dynamics. Total APAC revenue, including China, was $7.9 million, flat year-over-year. China delivered a strong double-digit growth against a modest year-on-year comp, which was offset by softness in other parts of the region. Turning to Slide five. We continued to expand our global footprint in the second quarter, adding 142 units and bringing Cytek's total install base to 3,933 units.

We continued to see good instrument unit growth in the second quarter, driven by our high-end FSP instrument portfolio, which grew 11% year-over-year and was led by Aurora Evo Analyzer and Aurora CS Cell Sorter. Turning to slides six and seven. I want to additionally highlight two exciting new product launches that further extend our technology leadership and set the foundation for our next phase of growth. First, I recently introduced the Cytek Borealis, the industry's first 60-color, seven-laser, full spectral-flow cytometer. The advancement to resolve 60 unique colors in a single sample run was enabled by Borealis' unique technology, where seven lasers operate simultaneously in concert with purpose-built and proprietary deep UV and IR dye reagents.

The capability to analyze 60 colors in a single run significantly expands the range of cellular biomarkers that scientists can evaluate while retaining the direct hierarchy comparison benefits of a single-tube sample. On top of the technological benefits that improve analytical capability, the Borealis also delivers increased efficiency for our customers, including the ability to analyze nanoparticles, which expands the diversity of sample types, high flow rates that increases the speed of the analysis and throughput of the system, and enhanced automation that eliminates the need for manual sample handling. The Borealis system has also been designed to allow for the integration of onboard high-parameter cellular imaging capabilities. By incorporating imaging alongside advanced full spectrum seven-laser spectral detection, Borealis will provide a more complete cellular view from a single sample, representing another meaningful step forward in what our customers can learn from each experiment.

Feedback from our early access customers has been very strong, and we look forward to sharing more on Borealis as we progress toward greater commercial availability. Second, we introduced the new Aurora Evo instrument configurations with expanded automation capabilities. These enhancements enable the integration of full spectral-flow cytometry into highly automated laboratory environments by adding automated and remote operation of key instrument functions, as well as an API for interfacing with automation plate handling systems, eliminating the need for a human operator. These capabilities are particularly relevant for biopharma organizations and CROs, where efficiency, reproducibility, and system integration are critical to large-scale programs. Taken together, these newly launched products underscore our continued commitment to extending our technology leadership while enabling cutting-edge research and driving lab productivity for our customers. Turning to applications and service. Our recurring revenue base continued to strengthen in the second quarter.

Combined reagents and service revenue was $18.5 million in Q2 2026, up 8% year-over-year, representing 35% of Cytek's last 12 months revenue, up from 32% for the 12 months to June the 30th, 2025. Service revenue was $15.6 million in the second quarter, growing 10% year-over-year, driven by continued growth in our installed base and the high utilization of our instruments by customers worldwide. We expect recurring revenue to represent an increasing percentage of our total revenue over time, supported by high utilization and the continued expansion of our installed base. Moving to bioinformatics. The Cytek Cloud continues to play a critical role for researchers working to create and optimize experiment workflows and is also driving adoption and utilization of our cell analysis solutions. As of June the 30th, 2026, Cytek Cloud has surpassed 28,000 users, up 15% since the start of the year.

Growth in Cytek Cloud users reinforces the strength of our integrated ecosystem and drives deeper customer engagement. We believe this increasing level of engagement is an important factor in driving growth in our reagent and service businesses. With that, I will now turn the call over to Bill for additional details on our Q2 financials and our updated guidance.

Thanks, Wenbin. Turning to slide eight. Second quarter revenue was $48.1 million, an increase of 6% compared to $45.6 million in Q2 2025. Growth was led by strong results in the U.S., where we saw 18% year-over-year growth and record revenue in Q2, as well as robust growth in China. These were partially offset by continued softness in EMEA and other APAC, excluding China. Product revenue, which is comprised of instruments and reagents, was $32.6 million, an increase of 4% year-over-year, driven by sales of our high-end instruments, which grew mid-teens during Q2. We saw improved sentiment and strong revenue growth from academic and government customers in the U.S. While biopharma distributor and CRO customers grew in other regions. EMEA instrument revenue declined 10% year-over-year, reflecting the government budgetary pressures Wenbin described earlier.