Bio-Rad Laboratories Reports 4.2% Decline in Q1 2025 Net Sales

Bio-Rad Laboratories, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales of $585.4 million, down 4.2% from $610.8 million in the same period last year. The decrease was primarily attributed to lower sales in the Life Science segment, which saw a 5.4% drop to $228.6 million. The Clinical Diagnostics segment also experienced a decline, with sales of $356.8 million, a decrease of 3.2%. On a currency-neutral basis, sales decreased approximately 1.5%, indicating that foreign exchange fluctuations had a limited impact on the overall revenue decline.

The company's gross profit margin fell to 52.3% from 53.4% year-over-year, influenced by increased costs in the Clinical Diagnostics segment due to higher restructuring and material costs. Selling, general and administrative expenses decreased slightly to $208.8 million, or 35.7% of sales, compared to 35.2% in the prior year. Research and development expenses rose to $73.5 million, representing 12.6% of sales, reflecting ongoing investments in product development despite the overall revenue decline.

In terms of strategic developments, Bio-Rad announced a binding offer to acquire Stilla Technologies for approximately $225 million, with potential future milestone payments. This acquisition aims to enhance Bio-Rad's capabilities in digital PCR instruments and assays, which are critical for genetic testing and molecular diagnostics. The acquisition is expected to close by the end of the third quarter of 2025, pending regulatory approvals.

Operationally, Bio-Rad's cash flow from operations improved significantly, reaching $129.9 million compared to $69.8 million in the prior year, primarily due to lower cash payments to suppliers and employees. The company also reported a net increase in cash and cash equivalents to $521.4 million as of March 31, 2025, up from $488.1 million at the end of 2024. However, the company faced challenges in the biopharma market and ongoing uncertainties in international markets, particularly in China, which could impact future performance.

Looking ahead, Bio-Rad anticipates continued challenges due to global economic conditions, including inflationary pressures and reduced government funding affecting its customer base. The company remains focused on integrating new technologies and improving its product offerings to drive growth, while also managing costs and navigating the complexities of international operations.