Harvard Bioscience Inc (NASDAQ:HBIO) Reports Mixed Q2 2025 Earnings Amid Revenue Miss and Improved Cash Flow

Harvard Bioscience Inc (NASDAQ:HBIO) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. The company posted revenue of $20.5 million, slightly below the consensus estimate of $20.8 million, while its adjusted earnings per share (EPS) of -$0.01 was in line with the projected -$0.0102. Despite the revenue miss, the market reaction has been muted, with pre-market trading showing a modest decline of approximately 0.11%. Over the past month, the stock has gained nearly 18.7%, suggesting investor optimism ahead of the earnings release.

Key Financial Highlights

• Revenue: $20.5 million (down 11.4% YoY, vs. $20.8 million estimate).
• Gross Margin: 56.4% (vs. 57.2% in Q2 2024).
• Net Loss: ($2.3 million), improving from ($2.9 million) in the prior-year quarter.
• Adjusted EBITDA: $1.5 million (up from $1.3 million YoY).
• Cash Flow: Positive operating cash flow of $2.8 million, a significant improvement from ($0.8 million) in Q2 2024.

Market Reaction and Performance

The stock has seen volatility in recent weeks, with a 6.5% decline over the past two weeks but a 21% gain over the last week. The muted pre-market reaction suggests investors are weighing the revenue miss against improved cost discipline and cash flow generation. The company’s ability to maintain stable gross margins and reduce net losses may be offsetting concerns about top-line weakness.

Credit Agreement and Liquidity Update

Harvard Bioscience amended its credit agreement, securing a waiver for covenant defaults and extending its refinancing deadline to December 5, 2025. This provides the company with additional financial flexibility as it works to restructure its balance sheet.

Outlook vs. Analyst Estimates

Management provided Q3 2025 revenue guidance of $19 million to $21 million, bracketing the analyst consensus of $22.2 million. Gross margin expectations (56%-58%) remain stable. For the full year, analysts project revenue of $88.9 million, but the company’s performance in the first half ($42.2 million) suggests it may fall short unless Q3 and Q4 show significant improvement.

Press Release Summary

• Revenue decline attributed to softer demand in key markets.
• Cost reductions and operational improvements contributed to better EBITDA.
• CEO John Duke emphasized restructuring efforts and long-term growth initiatives.
• The company remains focused on refinancing debt and improving liquidity.

For a deeper dive into Harvard Bioscience’s earnings and future estimates, visit the earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.