Cytek Biosciences, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
CTKB$5.83+8.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001628280-25-049697
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001628280-26-032293
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 128 previous paragraphs and 126 current paragraphs.
85 unchanged; 27 reworded; 14 added; 16 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Total revenue for the three months ended March 31, 2026 was $44.1 million, representing a 6% increase compared to revenue for the three months ended March 31, 2025 of $41.5 million.
Current report
In February 2026, the U.S. Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”). The Company is currently evaluating whether it may be entitled to refunds related to these tariffs. As of March 31, 2026, the Company has not recognized any asset related to potential tariff refunds, as any such amounts are not expected to have a material impact on the Company’s future results of operation. The Company will continue to monitor developments and evaluate any new information as it becomes available.
Current report
Total revenue, net increased by $2.7 million to $44.1 million, or 6%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.
Current report
Product revenue increased by $0.7 million to $28.8 million, or 2%, for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, primarily as a result of higher reagent revenue for thethree months ended March 31, 2026.
Current report
Total cost of sales increased by $1.6 million, or 7%, for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The increase in cost of sales was primarily driven by higher service overhead costs in the three months ended March 31, 2026. The larger installed base for the three months ended March 31, 2026 required a larger service workforce, resulting in higher compensation and travel expenses.
Current report
Total gross profit margin was 48% and 49% of total revenue for the three months ended March 31, 2026 and 2025, respectively. Gross profit margin declined slightly, primarily due to higher service costs of sales that grew faster than service revenue. Year-over-year service gross profit margin can fluctuate quarter to quarter due to uneven hiring and service engineer turnover throughout the year. Overall, gross profit margin can depend on many factors, including market conditions that might affect our pricing; services; product mix changes between instrument configurations; excess and obsolete inventories; our cost structure for manufacturing operations relative to volume, freight costs and product support.
Current report
Research and development expenses were $9.6 million for the three months ended March 31, 2026 as compared to $9.7 million for the three months ended March 31, 2025.
Current report
Sales and marketing expenses were $11.6 million for the three months ended March 31, 2026 as compared to $12.5 million for the three months ended March 31, 2025. Lower sales and marketing expenses in the three months ended March 31, 2026 were primarily a result of lower compensation expenses on lower headcount in the quarter.
Current report
General and administrative expenses were $18.5 million for the three months ended March 31, 2026 as compared to $12.9 million for the three months ended March 31, 2025. The increase of $5.6 million in general and administrative expenses was primarilydue to higher litigation-related expenses, outside consulting expenses, and bad debt reserves.
Current report
Interest expense was $0.3 million for the three months ended March 31, 2026 as compared to $0.3 million for the three months ended March 31, 2025.
Current report
Interest income was $0.8 million for the three months ended March 31, 2026 as compared to $0.5 million for the three months ended March 31, 2025. The increase in interest income was the result of recognition of interest on the 2024 Federal Tax refund in the three months ended March 31, 2026.
Current report
Other income, net was $0.6 million for the three months ended March 31, 2026 as compared to other income, net of $3.5 million for the three months ended March 31, 2025. The decrease in other income was primarily driven by an increase in realized and unrealized foreign exchange losses of $1.2 million in the three months ended March 31, 2026, compared with a realized and unrealized foreign exchange gain of $1.3 million in the three months ended March 31, 2025. Other factors included the year-over-year decline in interest rates and a decline in balances in marketable securities accounts.
Current report
Provision for income taxes was $1.5 millionfor the three months ended March 31, 2026 as compared to a provision for income taxes of $0.1 million for the three months ended March 31, 2025. The net increase of $1.4 million for the three months ended March 31, 2026 was primarily due to the domestic valuation allowance established in the last quarter of 2025, which negates the tax benefit from losses within the U.S. jurisdiction for the current period.
Current report
Net cash provided by financing activities during the three months ended March 31, 2026 was $4.0 million, primarily driven by the proceeds from a line of credit of $5.1 million, partially offset by the repayment of loans of $0.9 million.
Removed paragraphs (16)
Previous report
Our FSP cell analyzers, the Cytek Aurora, Northern Lights and Cytek Aurora Evo systems, deliver high-resolution, high-content and high-sensitivity cell analysis and addresses the inherent limitations of other technologies by providing a higher level of multiplexing with exquisite sensitivity, more flexibility and increased efficiency, all at a lower cost for performance. Additionally, our Cytek Aurora cell sorter (“Cytek Aurora CS system”) leverages our FSP technology to further broaden our potential applications across cell analysis. Each system is supported by our highly intuitive, proprietary embedded SpectroFlo software, our reagents, and our service offerings to provide a comprehensive, end-to-end platform of solutions for our customers. Since our first U.S. commercial launch in mid-2017, we have sold and deployed our instruments to customers around the world, including pharmaceutical companies, biopharma companies, academic research centers, and clinical research organizations (“CROs”).
Previous report
On February 28, 2023, we completed the acquisition of certain assets (the “FCI Acquisition”) relating to the flow cytometry and imaging business of Luminex Corporation (“Luminex”), including relating to the business of manufacturing, marketing, selling, servicing and maintaining Amnis- and Guava-branded instruments, and flow cytometry reagent products and services (the “FCI Business”). The acquired FCI Business includes conventional flow and image-based flow cytometry instrumentation and related products and services (the “FCI Products”), which provide insights into all facets of cellular phenotypes and morphology. The acquisition supports our plan to develop new products and capabilities with flow cytometry and imaging technology, expand our reach and offerings into customer segments previously underserved, and increase the efficiency of our operations.
Previous report
Total revenue for the three and nine months ended September 30, 2025 was $52.3 million and $139.4 million, respectively, representing a 2% increase and a 3% decrease, respectively, compared to revenue for the three and nine months ended September 30, 2024 of $51.5 million and $143.0 million, respectively. Total revenue for the three months ended September 30, 2025 increased compared to total revenue for the three months ended September 30, 2024, due to higher service revenue from a larger installed base of instruments compared to a year ago, partially offset by lower product revenue resulting from lower instrument sales in EMEA. Lower EMEA instrument sales were partially offset by higher instrument sales in the APAC region as well as higher global reagent sales. The decrease in total revenue for the nine months ended September 30, 2025, compared to total revenue for the nine months ended September 30, 2024 was due to lower instrument sales to academic and government customers in EMEA and the United States. Lower instrument revenue was partially offset by higher reagent sales and higher service revenue from a larger installed base of instruments compared to a year ago.
Previous report
Total revenue, net increased by $0.8 million to $52.3 million, or 2%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. Total revenue, net decreased by $3.6 million to $139.4 million, or 3%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.
Previous report
Product revenue decreased by $1.4 million to $38.1 million, or 4%, for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The lower product revenue for the three months ended September 30, 2025 was primarily due to lower product revenue in EMEA, partially offset by growth in APAC and global reagent revenue. Product revenue decreased by $10.6 million to $97.6 million, or 10%, for the nine months ended September 30, 2025, as compared to thenine months ended September 30, 2024. The lower product revenue for thenine months ended September 30, 2025 wasprimarily due to lower product revenue in EMEA and to a lesser extent in the United States, partially offset by growth in the APAC region as well as global reagent revenue growth.
Previous report
Total cost of sales increased by $2.2 million to $24.7 million, or 10%, for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. Total cost of sales increased by $2.3 million to $67.8 million, or 3%, for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase in cost of sales for the three and nine months ended September 30, 2025 was driven primarily by higher parts and labor costs required to support a larger installed base of instruments and the associated higher level of service activity. The higher service cost of sales for the nine months ended September 30, 2025 was partially offset by lower product cost of sales primarily related to lower product revenue in thenine months ended September 30, 2025.
Previous report
Total gross profit margin was 53% and 56% of total revenue for the three months ended September 30, 2025 and 2024, respectively, and 51% and 54% for the nine months ended September 30, 2025 and 2024, respectively. Gross profit margin declined primarily due to lower service gross margins driven by higher labor and travel costs, and lower product gross margin associated with increased materials and overhead costs.
Previous report
Research and development expenses were $9.0 million and $27.5 million for the three and nine months ended September 30, 2025, respectively, as compared to $9.9 million and $29.7 million for the three and nine months ended September 30, 2024, respectively. The decrease in research and development expenses for both the three and nine months ended September 30, 2025 compared to research and development expenses for the three and nine months ended September 30, 2024 was primarily due to lower compensation expenses from lower headcount and lower outside services costs.
Previous report
Sales and marketing expenses were $11.7 million and $36.3 million for the three and nine months ended September 30, 2025, respectively, as compared to $12.4 million and $37.2 million for the three and nine months ended September 30, 2024, respectively. The decrease in sales and marketing expenses for both the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 was primarily due to lower compensation expenses from lower headcount and lower outside services costs.
Previous report
General and administrative expenses were $16.1 million and $42.6 million for the three and nine months ended September 30, 2025, respectively, as compared to $10.9 million and $34.0 million for the three and nine months ended September 30, 2024, respectively. The increase of $5.2 million and $8.5 million in general and administrative expenses for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024, was primarilydue to four factors: ongoing patent litigation expenses incurred in 2025 but not in 2024, a non-recurring charge of $0.7 million related to the write-off of deferred offering costs for a 2022 “at-the-market” offering program that expired as of September 30, 2025.
Previous report
Interest expense was $0.5 million and $1.2 million for the three and nine months ended September 30, 2025, respectively, as compared to $0.1 million and $0.7 million for the three and nine months ended September 30, 2024, respectively. The increase in interest expense for thethree and nine months ended September 30, 2025 were mainly due to two factors: (i) reductions in interest expense in thethree and nine months ended September 30, 2024 to the interest accrual on the estimated Becton, Dickinson and Company (“BD”) settlement liability to the accrual on actual liability based on sales of the relevant products in the quarter; (ii) increase in interest expense in thethree and nine months ended September 30, 2025 to reflect provisions for various state sales tax audit liabilities. See Note 11 to our unaudited interim consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details.
Previous report
Interest income was $0.6 million and $1.6 million for the three and nine months ended September 30, 2025, respectively, as compared to $1.4 million and $4.2 million for the three and nine months ended September 30, 2024, respectively. The decrease in interest income was the result of lower average balance of cash and cash equivalents and short-term investments as compared to the three and nine months ended September 30, 2024 due to the transfer of funds from cash accounts to marketable securities accounts, the income from which is classified as investment income, included in Other income, net, rather than interest income, and a lower interest rate environment.
Previous report
Other income, net, was $1.3 million and $8.5 million for the three and nine months ended September 30, 2025, respectively, as compared to other income, net of $3.1 million and $4.0 million for the three and nine months ended September 30, 2024, respectively. The decrease in other income for thethree months ended September 30, 2025 was due to $1.1 million of foreign exchange gains recognized in thethree months ended September 30, 2024 compared to $0.9 million of foreign exchange losses recognized in thethree months ended September 30, 2025. The increase in other income for the nine months ended September 30, 2025 was primarily driven by $2.0 million of foreign exchange gains recognized in the nine months ended September 30, 2025, compared to $1.8 million of foreign exchange losses recognized in the nine months ended September 30, 2024 and a $0.6 million increase in investment income from the movement of cash from interest bearing accounts to investment accounts.
Previous report
Benefit from income taxes was $2.3 million and $3.3 million for the three and nine months ended September 30, 2025, respectively, as compared to benefit from income taxes of $0.8 million and $0.4 million for the three and nine months ended September 30, 2024, respectively. The net increase of $1.5 million for the three months ended September 30, 2025 was primarily due toa higher effective tax rate for the three months ended September 30, 2025 caused by a higher worldwide taxable loss for 2025 compared to 2024 and a higher pre-tax loss compared to pre-tax income in the three months ended September 30, 2024. Benefit from income tax expense was $3.3 million for the nine months ended September 30, 2025, as compared to the benefit from income tax expense of $0.4 million for the nine months ended September 30, 2024. The net increase of $3.0 million for the nine months ended September 30, 2025 was primarily due to a higher effective tax rate resulting from alarger projected worldwide taxable loss for 2025 compared to 2024, and a higher pre-tax loss compared to the three months ended September 30, 2024.
Previous report
On August 26, 2022, we entered into a sales agreement (the “2022 Sales Agreement”) with Piper Sandler & Co. (“Piper”) as sales agent to sell from time to time up to $150.0 million of our common stock through an “at-the-market” offering program. The securities in this transaction were offered pursuant to an automatic shelf registration statement on Form S-3ASR (File No. 333-267118) that was filed with the SEC on August 26, 2022 and expired in August 2025. As of the termination of the 2022 Sales Agreement in August 2025, concurrent with the expiration of the automatic shelf registration statement, the Company had not made any sales of common stock pursuant to the 2022 Sales Agreement. Accordingly, $0.7 million in transaction expenses recorded as prepaid offering costs have been expensed and recorded as of September 30, 2025.
Previous report
Net cash used in financing activities during the nine months ended September 30, 2024 was $12.2 million, driven by the payments for the repurchase of share of $14.6 million. This was partially offset by the proceeds from a line of credit of $1.4 million, proceeds from our Employee Stock Purchase Plan of $1.0 million, and the proceeds from the issuance of common stock under our equity incentive plans of $0.9 million.
Reworded paragraphs (27)
Previous wording
We are a leading cell analysis solutions company advancing the next generation of research and clinical tools with our novel technical approach of leveraging the full spectrum of fluorescence signatures from multiple lasers to distinguish fluorescent tags on single cells (“Full Spectrum Profiling” or “FSP” technology). Our goal is to become the premier cell analysis company through continued innovation that facilitates scientific advances in biomedical research and clinical applications. Our FSP platform includes instruments, accessories, reagents, software and services to provide a comprehensive and integrated suite of solutions for our customers.
Current wording
We are a leading cell analysis solutions company advancing the next generation of research and clinical tools with our novel technical approach of leveraging the full spectrum of fluorescence signatures from multiple lasers to distinguish fluorescent tags on single cells (“Full Spectrum Profiling” or “FSP” technology). Our goal is to become the premier cell analysis company through continued innovation that facilitates scientific advances in biomedical research and clinical applications. Our platform includes instruments, accessories, reagents, software and services to provide a comprehensive and integrated suite of cell analysis solutions for our customers.
Previous wording
To date, we have adopted a direct sales model in North America, Europe, China, and several other countries in the Asia-Pacific region, and sell our products through third-party distributors in certain countries in Europe, Latin America, the Middle East, Africa and the Asia-Pacific region. Revenue from direct sales represented 72% and 73% of total revenue for the three and nine months ended September 30, 2025, respectively, and 77% and 76% for the three and nine months ended September 30, 2024, respectively. Revenue from distributors represented 28% and 27% of total revenue for the three and nine months ended September 30, 2025, respectively, and 23% and 24% for the three and nine months ended September 30, 2024, respectively.
Current wording
To date, we have adopted a direct sales model in North America, Europe, China, and several other countries in the Asia-Pacific region, and sell our products through third-party distributors in certain countries in Europe, Latin America, the Middle East, Africa and the Asia-Pacific region. Revenue from direct sales represented 69% and 72% of total revenue for the three months ended March 31, 2026 and 2025, respectively, and revenue from distributors represented 31% and 28% of total revenue for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
We focus a substantial portion of our resources on developing new products and solutions to meet our customers’ needs. Our research and development efforts focus on developing new and complementary instruments, reagents and reagent kits, and continued operating software development. We incurred research and development expenses of $9.0 million and $27.5 million for the three and nine months ended September 30, 2025, respectively, and $9.9 million and $29.7 million for three and nine months ended September 30, 2024, respectively. We intend to continue to make significant investments in research and development in the future.
Current wording
We focus a substantial portion of our resources on developing new products and solutions to meet our customers’ needs. Our research and development efforts focus on developing new and complementary instruments, reagents and reagent kits, and continued operating software development. We incurred research and development expenses of $9.6 million and $9.7 million for the three months ended March 31, 2026 and 2025, respectively. We intend to continue to make significant investments in research and development in the future.
Previous wording
We expect to continue to invest in our commercial infrastructure through hiring additional employees with strong scientific and technical backgrounds to support growth in our instrument sales as well as our planned expansion of reagents offerings and panel design capabilities. We also plan to continue to invest in sales, marketing and business development across the globe to drive commercialization of our products. We incurred sales and marketing expenses of $11.7 million and $36.3 million for the three and nine months ended September 30, 2025, respectively, and $12.4 million and $37.2 million for three and nine months ended September 30, 2024, respectively.
Current wording
We expect to continue to invest in our commercial infrastructure through hiring additional employees with strong scientific and technical backgrounds to support growth in our instrument sales as well as our planned expansion of reagents offerings and panel design capabilities. We also plan to continue to invest in sales, marketing and business development across the globe to drive commercialization of our products. We incurred sales and marketing expenses of $11.6 million and $12.5 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Our net loss was $5.5 million and $22.5 million for the three and nine months ended September 30, 2025, respectively, and our net income (loss) was $0.9 million and $(15.7) million for three and nine months ended September 30, 2024, respectively. The change for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 resulted primarily from a decrease in revenues and gross profit and an increase in operating expenses.
Current wording
Our net loss was $18.9 million and $11.4 million for the three months ended March 31, 2026 and 2025, respectively. The change for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, resulted primarily from a slight increase in revenues and gross profit, offset by higher operating expenses.
Previous wording
Recent inflation trends may adversely affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of materials and supplies, labor and benefit costs and overhead costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience increases in the near future (especially if the rate of inflation increases) on our operating costs, including our labor costs and research and development costs, due to inflationary pressures as well as supply chain constraints, consequences associated with future public health crises, the ongoing conflict between Russia and Ukraine, conflict in the Middle East or liquidity concerns at, and failure of, banks and other financial institutions.
Current wording
Recent inflation trends may adversely affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of materials and supplies, labor and benefit costs and overhead costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience increases in the near future (especially if the rate of inflation increases) on our operating costs, including our labor costs, research and development costs and supply chain costs, due to inflationary pressures as well as supply chain constraints, consequences associated with future public health crises, and geopolitical trends, changes or events such as the ongoing conflict between Russia and Ukraine and the conflicts in the Middle East. In addition, such factors and events could also have a negative impact on demand for the Company’s products and services.
Previous wording
The Trump administration has made and continues to signal additional changes to existing U.S. trade policies, including imposing and announcing plans for tariffs on all U.S. trading partners including China, and renegotiating or potentially terminating existing bilateral and multi-lateral trade agreements. In response, certain foreign governments have announced or implemented retaliatory tariffs against U.S. goods and other non-tariff protectionist measures, such as procurement preferences or informal disincentives to engage with, purchase from or invest in U.S. entities, which may limit our ability to compete internationally and attract non-U.S. investment, employees, customers and suppliers. Although we cannot predict the ultimate extent to which the United States or other countries will impose quotas, duties, reciprocal tariffs, taxes, or other similar restrictions upon the import or export of our products, nor can we predict future trade policy or the terms of any renegotiated trade agreements and their impact on our business, the Trump administration’s imposition of tariffs as well as threatened and actual retaliatory tariffs against U.S. goods may have a negative impact on our revenue and costs in the future.
Current wording
The U.S. government has made and continues to signal additional changes to existing U.S. trade policies, including imposing and announcing plans for tariffs on all U.S. trading partners, including China, and renegotiating or potentially terminating existing bilateral and multi-lateral trade agreements. Certain foreign governments have announced or implemented retaliatory tariffs against U.S. goods and other non-tariff protectionist measures, such as procurement preferences or informal disincentives to engage with, purchase from or invest in U.S. entities, which may limit our ability to compete internationally and attract non-U.S. investment, employees, customers and suppliers. Although we cannot predict the ultimate extent to which the United States or other countries will impose quotas, duties, reciprocal tariffs, taxes, or other similar restrictions upon the import or export of our products, nor can we predict future trade policy or the terms of any renegotiated trade agreements and their impact on our business, the U.S. government’s imposition of tariffs as well as threatened and actual retaliatory tariffs against U.S. goods may have a negative impact on our revenue and costs in the future.
Previous wording
In addition, the new license and export controls announced by the U.S. government in January 2025 that impact exports of certain products and technology, including high-parameter and spectral flow cytometers and cell sorters and certain mass spectrometry equipment to certain countries, including China, may have a negative impact on our sales, manufacturing and research and development activities.
Current wording
In addition, the license and export controls announced by the U.S. government in January 2025 that impact exports of certain products and technology, including high-parameter and spectral flow cytometers and cell sorters and certain mass spectrometry equipment to certain countries, including China, may have a negative impact on our research and development activities, manufacturing and business operations.
Previous wording
Finally, changes in the U.S. National Institutes of Health (“NIH”) policy with respect to grants for academic research, specifically, the reduction in indirect cost reimbursement, has impacted and may continue to impact our revenue from academic and government customers in the near term.
Current wording
Finally, changes in the U.S. National Institutes of Health (“NIH”) policy with respect to grants for academic research have impacted and may continue to impact our revenue from academic and government customers in the near term.
Previous wording
Product. Our product revenue primarily consists of sales of our instruments, including the Cytek Aurora, Northern Lights, Cytek Aurora Evo, Cytek Aurora CS, Amnis and Guava systems, instrument accessories, such as loaders, and consumables, such as reagents. We offer multiple versions of our FSP systems with different price points based on the number of lasers integrated in the systems. We also derive revenue from sales of our conventional flow cytometry system, which is available for sale in China. We recognize product revenue when control of the instrument is transferred to the customer.
Current wording
Product. Our product revenue primarily consists of sales of our instruments, including the Cytek Aurora, Northern Lights, Cytek Aurora Evo, Aurora CS, Amnis and Guava systems, instrument accessories, such as loaders, and consumables, such as reagents. We offer multiple versions of our FSP systems with different price points based on the number of lasers integrated in the systems. We also derive revenue from sales of our conventional flow cytometry system, which is available for sale in China. We recognize product revenue when control of the instrument is transferred to the customer.
Previous wording
We expect our revenue to increase in absolute dollars as we expand our sales organization and sales territories, broaden our customer base, and expand awareness of our products with new and existing customers. Our revenue was$52.3 million and $51.5 million for the three months ended September 30, 2025 and 2024, respectively, and$139.4 million and $143.0 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
We expect our revenue to increase in absolute dollars as we expand our sales organization and sales territories, broaden our customer base, and expand awareness of our products with new and existing customers. Our revenue was $44.1 million and $41.5 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
General and administrative. Our general and administrative expenses primarily consist of salaries, benefits, and stock-based compensation costs for employees in our executive, accounting and finance, legal and human resource functions, as well as professional services fees, such as consulting, audit, tax, legal, general corporate costs and allocated overhead expenses. We are focused on controlling our general and administrative expenses; however, these may increase in absolute dollars in future periods.
Current wording
General and administrative. Our general and administrative expenses primarily consist of salaries, benefits, and stock-based compensation costs for employees in our executive, accounting and finance, legal and human resource functions, as well as professional services fees, such as consulting, audit, tax, legal, general corporate costs and allocated overhead expenses. The Company is focused on controlling its general and administrative expenses; however, these may increase in absolute dollars in future periods.
Previous wording
Other income (expense), net. Our other income (expense), net consists primarily of foreign exchange gains and losses.
Current wording
Other income, net. Our other income, net consists primarily of foreign exchange gains and losses.
Previous wording
Our (benefit from) provision for income taxes consists primarily of provision for federal taxes and local taxes in the United States as well as foreign taxes. As we plan to expand the scale and scope of our international business activities, any changes in the United States and foreign taxation of such activities may increase our overall provision for income taxes in the future.
Current wording
Our provision for income taxes consists primarily of provision for federal taxes and local taxes in the United States as well as foreign taxes. As we plan to expand the scale and scope of our international business activities, any changes in the United States and foreign taxation of such activities may increase our overall provision for income taxes in the future.
Previous wording
The following table sets forth our consolidated results of operations and comprehensive (loss) income data for the periods presented:
Current wording
The following table sets forth our unaudited interim consolidated results of operations and comprehensive loss data for the periods presented:
Previous wording
Service revenue increased $2.2 million to $14.2 million, or 19%, and $7.0 million to $41.7 million, or 20%, for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. The increase was primarily due to continued growth of the installed base of instruments and the related increase in the number of service contracts and in maintenance activity.
Current wording
Service revenue increased $2.0 million to $15.4 million, or 15% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The increase was primarily due to continued growth of the installed base with the related increase in service contracts and maintenance activity.
Previous wording
Product revenue for the three and nine months ended September 30, 2025 decreased by 4% and 10%, respectively, as compared to the three and nine months ended September 30, 2024. Product cost of sales for the three months ended September 30, 2025 increased by 1%, due to higher overhead, material, and tariff costs, and for the nine months ended September 30, 2025 decreased 4%, as compared to the same period in 2024 due to lower material costs on lower volume. Product gross profit for the three and nine months ended September 30, 2025 decreased 8% and 15%, respectively, as compared to the three and nine months ended September 30, 2024. The lower product gross profit margins in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 were driven primarily by higher overhead costs associated with a site transition and higher tariff costs. The lower product gross margins in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 were driven primarily by lower product revenue resulting in lower fixed cost absorption, higher overhead associated with a manufacturing site transition and increased tariff costs.
Current wording
Product revenue for the three months ended March 31, 2026 increased by 2% as compared to the three months ended March 31, 2025. Product cost of sales for the three months ended March 31, 2026, increased by 3% as compared to the same period in 2025. Product gross profit for the three months ended March 31, 2026, increased 2% as compared to the three months ended March 31, 2025. Product gross profit margins in the three months ended March 31, 2026 were flat compared to the three months ended March 31, 2025. The effect of higher product revenue was partially offset by higher freight and duty costs for the three months ended March 31, 2026 compared to the prior year quarter.
Previous wording
Service revenue for the three and nine months ended September 30, 2025 increased 19% and 20%, respectively, as compared to the three and nine months ended September 30, 2024. Service cost of sales for the three and nine months ended September 30, 2025 increased by 40% and 27%, respectively, as compared to the same period in 2024. Service gross profit for the three and nine months ended September 30, 2025 increased 3% and 15%, respectively, as compared to the three and nine months ended September 30, 2024. In the three and nine months ended September 30, 2025, service gross margins declined compared to the three and nine months ended September 30, 2024 due to higher service labor and travel costs resulting from an increased field service headcount required to service a growing installed base of instruments, and higher material costs.
Current wording
Service revenue for the three months ended March 31, 2026 increased 15% as compared to the three months ended March 31, 2025. Service cost of sales for the three months ended March 31, 2026 increased by 21% as compared to the same period in 2025. Service gross profit for the three months ended March 31, 2026 increased 11% as compared to the three months ended March 31, 2025. The lower service gross margins in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 were mainly driven by higher service overhead costs that grew faster than service revenue year over year.
Previous wording
To date, our primary sources of capital have been through sales of our securities and revenue from the sale of our products and services. As of September 30, 2025 and December 31, 2024, we had approximately $261.7 million and $277.9 million, respectively, in cash and cash equivalents and short term investments, which were primarily held in U.S. short-term bank deposit accounts, money market funds, U.S. Treasury notes, Federal agency security notes, and short term commercial paper.
Current wording
To date, our primary sources of capital have been through sales of our securities and revenue from the sale of our products and services. As of March 31, 2026 and December 31, 2025, we had approximately $262.2 million and $261.5 million, respectively, in cash and cash equivalents and short term investments, which were primarily held in U.S. short-term bank deposit accounts, money market funds, U.S. Treasury notes, Federal agency security notes, and short term commercial paper.
Previous wording
In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2029. Under the terms of the leases, we are responsible for certain expenses related to operations, maintenance, repairs and management fees. Future minimum lease payments under non-cancelable operating leases totaled $21.0 million as of September 30, 2025.
Current wording
In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2029. Under the terms of the leases, we are responsible for certain expenses related to operations, maintenance, repairs and management fees. Future minimum lease payments under non-cancelable operating leases totaled $20.5 million as of March 31, 2026.
Previous wording
Net cash used inoperating activities for thenine months ended September 30, 2025, was $3.92 million. The primary factors affecting our operating cash flows during the period were ournet loss of $22.5 million, impacted by our non-cash charges of $19.9 million, primarily consisting ofstock-based compensation expense of $19.1 million, depreciation and amortization of $5.7 million, amortization of right-of-use assets of $3.2 million, and excess and obsolete inventory of $0.5 million, partially offset by deferred income taxes of $5.0 million and gain on investments accretion and amortization, net of $4.5 million. The cash used in changes in our operating assets and liabilities of $1.3 million were primarily due to an increase of $7.3 million in inventories, a decrease of operating lease liabilities of $3.3 million, a decrease in legal settlement liability of $0.8 million, and an increase in prepaid expenses and other assets of $0.7 million. These amounts were partially offset by cash provided from changes in our operating assets and liabilities of a decrease in trade accounts receivable of $6.5 million, an increase in deferred revenue of $1.9 million, and an increase in trade accounts payable of $1.8 million.
Current wording
Net cash used inoperating activities for the three months ended March 31, 2026 was $2.7 million. The primary factors affecting our operating cash flows during the period were our net loss of$18.9 million and our non-cash charges of $7.1 million, primarily consisting ofstock-based compensation expense of $4.9 million, depreciation and amortization of $1.9 million, amortization of right-of-use assets of $0.9 million, and provision for credit losses of $0.5 million, partially offset by a gain on investments, accretion and amortization, net of $1.3 million, and deferred income taxes of $0.2 million. The cash provided by changes in our operating assets and liabilities of $9.0 million in the three months ended March 31, 2026 was primarily due to a decrease in trade accounts receivable of $9.6 million due to seasonality, with our first quarter typically being lower than our fourth quarter; a decrease in prepaid expenses and other assets of $3.9 million; and an increase in deferred revenue of $1.2 million. These amounts were partially offset by cash used from changes in our operating assets and liabilities, including a decrease in accrued expenses and other liabilities of $3.9 million and an increase in inventories of $1.6 million.
Previous wording
Net cash provided byoperating activities for thenine months ended September 30, 2024 was $23.4 million. The primary factors affecting our operating cash flows during the period were our net loss of$15.7 million, impacted by our non-cash charges of $25.8 million, primarily consisting ofstock-based compensation expense of $19.8 million, depreciation and amortization of $5.4 million, amortization of right-of-use assets of $2.4 million, and excess and obsolete inventory of $1.4 million, partially offset by a gain on investments, accretion and amortization, net of $3.6 million. The cash provided by changes in our operating assets and liabilities of $13.2 million were primarily due to a decrease of inventories of $12.8 million and a decrease of trade accounts receivable of $3.9 million. These amounts were partially offset by cash used from changes in our operating assets and liabilities of a decrease in accrued expenses and other liabilities of $3.8 million, and an increase in prepaid expenses and other assets of $2.1 million.
Current wording
Net cash used in operating activities for the three months ended March 31, 2025 was $0.1 million. The primary factors affecting our operating cash flows during the period were our net loss of$11.4 million and our non-cash charges of $8.2 million, primarily consisting ofstock-based compensation expense of $6.6 million, depreciation and amortization of $1.9 million, amortization of right-of-use assets of $1.0 million, and excess and obsolete inventory of $0.3 million, partially offset by a gain on investments, accretion and amortization, net of $1.5 million, and deferred income taxes of $0.3 million. The cash provided by changes in our operating assets and liabilities of $3.0 million in the three months ended March 31, 2025 were primarily due to a decrease in trade accounts receivable of $6.4 million due to seasonality, with our first quarter typically being lower than our fourth quarter. These amounts were partially offset by cash used from changes in our operating assets and liabilities, including a decrease in accrued expenses and other liabilities of $2.1 million, an increase in inventories of $1.5 million, and a decrease in operating lease liabilities of $1.0 million.
Previous wording
Net cash used in investing activities during the nine months ended September 30, 2024 was $19.5 million driven by purchases of marketable securities of $166.8 million, and the purchase of property and equipment of approximately $2.6 million. This was partially offset by the proceeds from maturities of marketable securities of $150.0 million.
Current wording
Net cash used in investing activities during the three months ended March 31, 2026 was $27.1 million driven by purchases of marketable securities of $95.6 million and purchases of fixed assets and intangibles of approximately $2.2 million, partially offset by proceeds from maturities of marketable securities of $70.7 million.
Previous wording
Net cash provided by investing activities during the nine months ended September 30, 2025 was $12.0 million driven by proceeds from maturities of marketable securities of $216.1 million, proceeds from sale of property and equipment of $0.1 million, partially offset by purchase of marketable securities of $201.0 million, and purchase of property and equipment of approximately $3.2 million.
Current wording
Net cash provided by investing activities during the three months ended March 31, 2025 was $9.5 million driven by proceeds from maturities of marketable securities of $70.4 million, partially offset by the purchases of marketable securities of $60.2 million, and purchase of fixed assets and intangibles of approximately $0.9 million.
Previous wording
Net cash used in financing activities during the nine months ended September 30, 2025 was $12.2 million, driven by the payments for repurchase of shares of $15.1 million and repayment of loan of $1.8 million, partially offset by the proceeds from a line of credit of $4.2 million.
Current wording
Net cash used in financing activities during the three months ended March 31, 2025 was $11.5 million, primarily driven by payments for the repurchase of shares of $10.6 million and the repayment of loans of $1.5 million.
Previous wording
During the nine months ended September 30, 2025, there were no material changes to our contractual obligations and commitments from those described under “Management’s Discussion and Analysis of Financial Condition” which is contained in our Form 10-K and filed with the SEC on February 28, 2025.
Current wording
During the three months ended March 31, 2026, there were no material changes to our contractual obligations and commitments from those described under “Management’s Discussion and Analysis of Financial Condition” which is contained in our Form 10-K and filed with the SEC on February 26, 2026.
Previous wording
This management’s discussion and analysis of our financial condition and results of operations is based on our unaudited interim consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The preparation of our unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited interim consolidated financial statements and notes to the unaudited interim consolidated financial statements. Some of those judgments can be subjective and complex, and therefore, actual results could differ materially from those estimates are different assumptions and conditions. A summary of our critical accounting policies is presented in our audited financial statements and notes thereto as of and for the year ended December 31, 2024 included in our Annual Report on Form 10-K filed with the SEC on February 28, 2025. There were no material changes to our critical accounting policies during the three months ended September 30, 2025.
Current wording
This management’s discussion and analysis of our financial condition and results of operations is based on our unaudited interim consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The preparation of our unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited interim consolidated financial statements and notes to the unaudited interim consolidated financial statements. Some of those judgments can be subjective and complex, and therefore, actual results could differ materially from those estimates if different assumptions and conditions apply. A summary of our critical accounting policies is presented in our audited financial statements and notes thereto as of and for the year ended December 31, 2025 included in our Annual Report on Form 10-K filed with the SEC on February 26, 2026. There were no material changes to our critical accounting policies during the three months ended March 31, 2026.