Harvard Bioscience (NASDAQ:HBIO) reported 8% revenue growth in the third quarter of 2026, but lowered its full-year adjusted EBITDA growth forecast as sales shifted toward lower-margin products and distribution channels.
Revenue rose to $22.2 million, driven by demand from contract research organizations (CROs) and distribution partners. President and CEO John Duke said the company saw double-digit growth in its preclinical portfolio, led by respiratory and inhalation products, as well as strong gains in organoid-related products.
Adjusted EBITDA fell to $1.8 million, or 7.9% of revenue, from $2 million, or 9.6%, a year earlier. Adjusted gross margin was 57.1%, at the low end of the company’s outlook range, as lower-margin legacy products, distribution sales and China contributed more to revenue.
Outlook Reflects Lower-Margin Sales Mix
Harvard Bioscience maintained its full-year forecast for revenue growth of 3% to 5% and adjusted gross margin of 57% to 59%. It lowered its adjusted EBITDA growth outlook to a range of a 1% decline to 4% growth, from its prior forecast of 6% to 10% growth.
CFO Mark Frost attributed the change to greater-than-expected demand for certain lower-margin legacy products and increased sales through distribution channels and to customers in China. Duke said the company was maintaining expense discipline despite the less favorable mix.
For the fourth quarter, the company expects revenue of $23.7 million to $25.5 million, adjusted gross margin of 59% to 61% and adjusted EBITDA of $3.8 million to $4.2 million. Frost said the EBITDA midpoint would represent 5% growth from a year earlier.
Regional Growth Offsets Academic Weakness
Third-quarter revenue in the Americas rose 9% to $11.3 million, supported by CRO customers and the company’s Fisher Scientific agreement. Duke said sales through Fisher Scientific North America had more than doubled year to date following an expansion of the distribution agreement last year.
Asia-Pacific revenue increased 29% to $4.6 million, including $2.8 million in China, where sales rose 31%. Duke said all three localized BTX electroporation product lines were available and shipping in China, and the company was working to localize additional lines.
Europe revenue fell 5% to $6.3 million, or 3% on a constant-currency basis. Frost cited weak academic demand and lighter-than-expected demand in several areas of the company’s cellular and molecular technologies portfolio. Duke said academic markets in both the United States and Europe remained challenging.
New product innovation contributed more than 11% of total quarterly revenue, Frost said. Duke also said BTX electroporation sales were up by strong double digits year to date across regions. Frost said the company expects to fully launch a bioproduction version of the product line by approximately mid-2027.
Restructuring and Cash Flow
Harvard Bioscience expects to complete Project Viking, its manufacturing consolidation plan, in the first quarter of 2027. Frost said five of eight product lines had moved, including a parallel build of major fluidics products. The company expects the project to generate $3 million in savings in 2027, beginning in the second quarter, and $4 million annually thereafter.
Frost said approximately 75% of the project’s savings relate to gross margin. Along with a greater contribution from new products and recurring revenue, he expects gross margin to be in the 60% range in 2027.
Cash used in operations was $600,000 for the first nine months of 2026, compared with $6.8 million generated in the prior-year period. Frost attributed the change primarily to increased inventory, restructuring charges and higher interest costs. The company ended the quarter with $4.9 million in cash and cash equivalents and $35.1 million in net debt.
Frost said inventory should begin to decline significantly as the manufacturing transition finishes. He also said the company had made progress toward putting an asset-based revolver in place to refinance $10 million of Term Loan A debt, although he did not announce an agreement.
About Harvard Bioscience (NASDAQ:HBIO)
Harvard Bioscience, Inc (NASDAQ: HBIO) develops, manufactures and supplies specialized tools, equipment and consumables used in biomedical research, drug discovery and related life science applications. Its products support work in areas such as cell biology, electrophysiology, gene delivery, organ-on-chip research and preclinical studies.
The company’s portfolio includes laboratory instruments, tissue and organ perfusion systems, electrophysiology equipment, cell and molecular biology products, and related consumables.
