Harvard Bioscience Reports 11.2% Revenue Decline and $50.3 Million Net Loss in Q1 2025

Harvard Bioscience, Inc. reported a significant decline in its financial performance for the first quarter of 2025, with revenues totaling $21.8 million, down 11.2% from $24.5 million in the same period last year. The decrease in revenue was attributed primarily to a softening demand from academic research institutions and contract research organizations (CROs). The company's gross profit also fell to $12.2 million, a 17.5% decrease compared to $14.8 million in the prior year, resulting in a gross margin of 56.0%, down from 60.3%. The company recorded a net loss of $50.3 million, which included a non-cash goodwill impairment charge of $48.0 million, reflecting the impact of a sustained decrease in its stock price and other operational challenges.

In terms of operational metrics, Harvard Bioscience's total current assets decreased slightly to $44.9 million as of March 31, 2025, compared to $45.1 million at the end of 2024. The company’s cash and cash equivalents increased to $5.5 million from $4.1 million, while accounts receivable and inventories showed minor fluctuations. The company’s total liabilities rose to $65.0 million, up from $63.3 million, primarily due to an increase in current liabilities. The company’s employee headcount remained stable, with no significant changes reported.

Strategically, Harvard Bioscience is navigating a challenging financial landscape, including compliance with its Credit Agreement, which has been amended to include specific refinancing milestones. The company is actively exploring alternative sources of capital to refinance its outstanding debt of $36.4 million and avoid default. As of May 12, 2025, the company was in compliance with the refinancing milestones set forth in the March 2025 Amendment to its Credit Agreement. However, there remains substantial doubt about the company's ability to continue as a going concern if it cannot secure additional financing or extend repayment terms.

Looking ahead, Harvard Bioscience faces ongoing challenges due to market conditions and the need to adapt to changing customer demands. The company is focused on improving its operational efficiencies and aligning its cost structure with its strategic objectives. Management has indicated that the results for the first quarter of 2025 may not be indicative of future performance, and the company is committed to addressing its financial and operational hurdles in the coming months. The outlook remains cautious as the company works to stabilize its financial position and regain market confidence.