Bio-Techne (TECH -8.77%), a leading provider of life sciences tools and diagnostic solutions, reported its earnings for the fourth quarter of fiscal 2025 on August 6, 2025. The company’s headline news was a modest beat on both revenue and non-GAAP earnings per share, with GAAP revenue of $317.0 million surpassed analyst expectations and non-GAAP earnings per share reaching $0.53. However, the company posted a GAAP loss following an $83.1 million impairment tied to the divestiture of its Exosome Diagnostics business. The current quarter saw a slowdown in organic revenue growth, an ongoing margin squeeze in some business units, and continued uncertainty in several end markets. Overall, the period reflected disciplined expense control and operational resilience, albeit with notable one-time charges and softer-than-usual growth.
| Metric | Q4 Fiscal 2025(ended 6/30/2025) | Q4 Estimate | Q4 Fiscal 2024(ended 6/30/2024) | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.53 | $0.50 | $0.49 | 8.2 % |
| Revenue | $317.0 million | $314.61 million | $306.1 million | 3.6 % |
| Adjusted Operating Margin | 32.0 % | 33.5 % | (1.5) pp | |
| Revenue – Protein Sciences segment | $226.5 million | $214.0 million | 5.8 % | |
| Revenue – Diagnostics and Spatial Biology segment | $89.7 million | $90.7 million | (1.1 %) |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Key Success Factors
Bio-Techne develops and supplies specialized products and solutions that enable scientific research and clinical diagnostics in the life sciences sector. Its core product offerings serve pharmaceutical companies, academic labs, and diagnostics labs with a broad portfolio including research proteins, analytical instruments, and diagnostic reagents. The company’s business model is anchored in recurring consumables sales and continuous product innovation.
In recent years, Bio-Techne has pushed aggressively into fast-growing segments like cell and gene therapy, spatial biology, and automated protein analysis tools. Strategic priorities include expanding through targeted acquisitions, launching hundreds of new products annually, and maintaining rigorous regulatory compliance. The company’s ability to adapt quickly to shifting funding landscapes, tariff policies, and evolving customer demand is also a critical success factor.
Quarter in Detail: Results, Segment Performance, and Developments
Bio-Techne edged past consensus estimates for both revenue and non-GAAP earnings, although growth rates slowed from prior periods. Organic revenue growth, which excludes the impact of currency and acquisitions/divestitures, was 3%.
This segment includes products such as proteins, immunoassays (used to detect or quantify specific proteins), and protein-analysis instruments like the Maurice family. Growth in the prior quarter was driven by the pharmaceutical sector and higher demand for cell therapy and analytical instrumentation, reflecting Bio-Techne’s strategic push in these markets. The Protein Sciences segment also saw a slight improvement in operating margin compared to a year ago, with GAAP operating margin increasing to 43.6% from 43.0%, signaling stable profitability in this part of the business.
The Diagnostics and Spatial Biology segment recorded a revenue decline of 1.1% to $89.7 million from $90.7 million in the same quarter last year, with segment operating margin falling sharply to 6.0% from 12.5%. This area comprises diagnostic reagents—used to identify disease markers—and spatial biology platforms such as the COMET instrument, which automates tissue analysis for multiomics research. Spatial biology experienced headwinds from uncertain academic funding, with approximately 12% of Bio-Techne’s annual revenue coming from US academic customers. In response, while the remainder of the segment contended with order timing and a significant GAAP impairment charge tied to the sale of Exosome Diagnostics, which focused on exosome-based clinical tests like the ExoDx Prostate Test.
On a consolidated basis, margins came under pressure. Adjusted operating margin slipped to 32.0%, impacted by a less favorable sales mix and segment margin compression in Diagnostics and Spatial Biology. GAAP bottom-line results turned negative, with the company posting a GAAP quarterly net loss due to an $83.1 million non-cash impairment associated with divesting Exosome Diagnostics. The portfolio move was described by management as a way to sharpen focus on higher-growth, non-CLIA (Clinical Laboratory Improvement Amendments) product lines. CLIA labs are those certified to run clinical diagnostic testing in the US; exiting Exosome Diagnostics reduces direct clinical exposure.
Management emphasized ongoing investments in innovation, highlighting more than 800 new product launches in the fiscal year and ongoing strategic investments, including a $15.0 million investment in biotechnology start-up Spear Bio. Capital expenditures were $31.0 million for fiscal year 2025. The company also executed $275.7 million in share buybacks in FY2025 and paid $50.4 million in dividends in FY2025, with Year-end cash and equivalents (GAAP) were $162.2 million, up from $151.8 million for FY2024, and long-term debt (GAAP) was $346 million.
The company faced several market and policy headwinds during the period. Management estimated that new global tariffs would have an annual $20 million impact on adjusted operating income, with mitigation efforts underway. Academic market exposure remains material: roughly 12% of Bio-Techne’s annual revenue is tied to US research institutions, with about half of that reliant on National Institutes of Health (NIH) grants. Management downplayed the risk of a severe long-term impact from possible NIH funding cuts, citing geographic diversification and European academic market strength as positives.
Product Families and Recent Performance
The Protein Sciences segment is centered around research proteins, immunoassays, and protein-analysis instruments. These tools and consumables are sold to pharmaceutical, biotechnology, and academic research customers. The Maurice protein analytical instrument is used by pharmaceutical companies and contract research organizations for verifying protein identity and purity. Cell therapy reagents—used in developing new cell-based treatments—also showed robust demand, and the GMP (Good Manufacturing Practice) product portfolio for cell and gene therapy customers registered steady growth over the trailing year.
Diagnostics and Spatial Biology includes diagnostic reagents for lab-based disease detection and spatial biology platforms like COMET. COMET provides automated analysis for both RNA and protein, supporting multiomics research—a method for studying how different molecules interact within cells. The platform’s double-digit growth in the prior quarter, despite macro headwinds, demonstrates Bio-Techne’s competitive position in spatial biology instrumentation. The rest of the segment, including clinical diagnostics, faced order timing fluctuations and was affected by the strategic exit from the exosome-based clinical testing business.
Looking Ahead: Guidance and What to Watch
Bio-Techne’s management did not issue formal financial guidance for fiscal 2026. Leadership cited ongoing macroeconomic and market uncertainties, including continued tariff policy developments and unresolved NIH funding clarity. Management expects to issue clearer outlook statements after observing market conditions in the first three months of the new fiscal year.
Updates on cost mitigation for new global tariffs, and the impact of ongoing academic and NIH policy decisions, will be important to monitor. Additionally, Bio-Techne’s capital allocation strategy—balancing innovation investment, M&A, dividend growth, and share repurchases—remains an important lever for both growth and shareholder returns.
TECH does pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
