Charles River Laboratories Reports Q1 2026 Revenue of $995.8 Million, Net Loss of $14.8 Million

Charles River Laboratories International, Inc. reported its financial results for the first quarter of fiscal 2026, ending March 28, 2026, revealing a total revenue of $995.8 million, a 1.2% increase from $984.2 million in the same period last year. The growth was primarily driven by a 6.8% rise in Manufacturing revenue, particularly from the Microbial Solutions segment, which offset a decline in Research Models and Services (RMS) revenue. The company recorded a net loss attributable to common shareholders of $14.8 million, compared to a net income of $25.5 million in the prior year, largely due to a significant loss on assets held for sale related to the divestiture of its CDMO and Cell Solutions businesses.

In terms of operational performance, the company’s operating income surged to $119.9 million, or 12.0% of revenue, compared to $74.7 million, or 7.6% of revenue, in the previous year. This increase was attributed to the absence of accelerated amortization expenses and a gain from the sale of certain assets, despite higher acquisition and integration costs. The RMS segment saw a revenue decline to $208.4 million, down 2.2% year-over-year, while the Discovery and Safety Assessment (DSA) segment reported a slight revenue increase of 0.7% to $596.9 million.

Strategically, Charles River Laboratories has been active in acquisitions and divestitures. The company completed the acquisition of a 79% equity interest in PathoQuest SAS for approximately $60 million, enhancing its capabilities in manufacturing quality-control testing. Additionally, it acquired assets from K.F. Cambodia Ltd for $507.3 million, aimed at bolstering its non-human primate supply chain. On the divestiture front, the company signed an agreement to sell certain European Discovery Services businesses to IQVIA for $145 million and completed the sale of its CDMO and Cell Solutions businesses, recognizing a pre-tax loss of $118 million.

The company’s cash flow from operations decreased significantly to $41.1 million from $171.7 million in the prior year, primarily due to increased variable compensation payments. Cash used in investing activities was notably high at $407.8 million, driven by the recent acquisitions. As of March 28, 2026, Charles River Laboratories had $191.8 million in cash and cash equivalents, down from $213.8 million at the end of the previous fiscal year. Looking ahead, the company anticipates continued challenges in the market but remains focused on executing its strategic initiatives to drive growth and efficiency.