Harvard Bioscience (NASDAQ:HBIO) reported second-quarter 2026 revenue of $22.7 million, up 11% from a year earlier and 10% on a constant-currency basis, as demand from contract research organization customers, distributor activity and growth across its cellular and molecular technologies portfolio supported results.
President and Chief Executive Officer John Duke said the company’s strategic work over the past year—including commercial alignment, sales and distribution optimization, and manufacturing consolidation under Project Viking—helped drive double-digit growth in its CMT and preclinical portfolios. The company raised its full-year revenue growth outlook while lowering its gross-margin target to reflect a sales mix weighted toward lower-margin CMT products and China.
Second-Quarter Results and Product Demand
New product innovation, or NPI, revenue represented 11% of total revenue in the quarter, compared with 3% a year earlier. Frost said recurring revenue from consumables, service and software rose to 55% of first-half revenue, up one percentage point from the prior-year period. The company’s longer-term recurring-revenue target is 60%.
Duke said recurring revenue is anchored in single-use consumables, including telemetry implants and electroporation reagents, as well as annual software licenses and service contracts. He said a growing installed base of platforms such as SoHo and BTX is generating recurring revenue over time.
During the question-and-answer session, Duke said electroporation revenue grew at a “strong double-digit” rate in the quarter. He also said the company saw strong year-to-date performance in organoid and Multi Channel Systems products.
Adjusted gross margin was 57% during the quarter, while GAAP gross margin was 55.6%. Adding back 20 basis points of restructuring costs produced an adjusted gross margin of 55.8%, compared with 56.4% in the second quarter of 2025. Frost attributed the decline to product and geographic mix, including stronger-than-expected sales of lower-margin CMT products and higher sales in China.
Adjusted EBITDA was $1.7 million, or 7.3% of revenue, up 11% from $1.5 million a year earlier. Adjusted operating income was $1.1 million, compared with $1 million in the prior-year quarter. The company reported a GAAP operating loss of $1 million, compared with a loss of $0.8 million a year earlier.
Operating expenses increased by $1.2 million, primarily because the company restored salaries and merit increases, Frost said. The company also made sales and marketing investments during the first half.
Regional Performance and China Sales
Revenue in the Americas increased 13% year over year to $11.4 million, driven by telemetry growth at CRO customers. Frost said the academic funding environment is beginning to improve, and the company expects stronger sales to academic customers in the second half of 2026.
European revenue rose 3% to $6.8 million, or 1.5% on a constant-currency basis. Growth among CRO, pharmaceutical and distribution customers offset declines in academic and government channels.
APAC revenue climbed 24% to $4.6 million, led by BTX electroporation and respiratory product sales. China revenue increased 29% to $3.1 million, primarily due to CRO demand. Duke noted that the prior-year second quarter had a lower baseline because of retaliatory tariffs.
Duke said growth in China was driven by organoid and Multi Channel Systems products, BTX electroporation, telemetry, and respiratory and inhalation products. Much of the company’s China revenue is generated through distributors, according to Duke and Frost.
The company is also advancing its “Made in China” localization initiative. Duke said Harvard Bioscience has begun shipping localized BTX units and is pursuing certifications for additional products in the second half, which management said could support regional growth in 2027.
Project Viking and Financial Position
Harvard Bioscience said its Project Viking manufacturing-footprint consolidation remains on schedule. The company moved two product lines out of its Holliston facility during the second quarter and plans to transition two additional lines during the third quarter.
Management expects the initiative to generate $3 million in cost savings in 2027 and $4 million annually thereafter. Frost said the company has engaged a broker to market the Holliston space and has hosted prospective tenants, although he does not expect a new lease agreement before the fourth quarter or first quarter. The company expects to leave the facility in the first quarter of next year.
Cash used in operations during the first six months of 2026 totaled $0.3 million, compared with $5.7 million of cash generated during the same period of 2025. Frost said inventory builds intended to improve lead times and support Project Viking transitions, along with higher interest costs following the company’s debt refinancing, contributed to the change.
The company ended the quarter with $6.5 million in cash and cash equivalents and net debt of $33.5 million, up about $5.6 million from a year earlier. GAAP diluted earnings per share were negative $0.64, versus negative $0.52 in the second quarter of 2025, while adjusted EPS was negative $0.14, compared with negative $0.05. Per-share figures reflect the company’s one-for-10 reverse stock split completed in March.
Updated Outlook
For the third quarter, Harvard Bioscience expects revenue of $21 million to $22.6 million, with a midpoint of $21.8 million representing approximately 6% year-over-year growth. The company forecast adjusted gross margin of 56% to 58% and adjusted EBITDA of $1.5 million to $2.5 million.
For the full year, the company raised its revenue growth outlook to 3% to 5%, from a prior range of 2% to 4%. It reduced its adjusted gross-margin forecast to 57% to 59%, from 58% to 60%, due to anticipated CMT volume and China demand. Harvard Bioscience reaffirmed expected adjusted EBITDA growth of 6% to 10%.
Frost said the company expects adjusted EBITDA expansion in the second half, particularly in the fourth quarter, which has historically been its strongest quarter for revenue and EBITDA. Management expects revenue growth, operating leverage and modest commercial restructuring actions completed in July to support that improvement.
About Harvard Bioscience (NASDAQ:HBIO)
Harvard Bioscience, Inc develops, manufactures and distributes life science research instruments and consumables used by academic, biopharmaceutical and government laboratories worldwide. The company’s product portfolio spans cellular physiology, microfluidics, electrophysiology and lab automation, providing tools that enable researchers to study everything from cell behavior and organ function to drug delivery and tissue mechanics.
Through its operating units—most notably Harvard Apparatus, BTX, Radnoti and Warner Instruments—Harvard Bioscience offers a diverse range of scientific equipment including precision pumps, stereotaxic instruments, electroporation and gene delivery systems, perfusion systems and microinjection tools.
