Harvard Bioscience (NASDAQ:HBIO) Issues Earnings Results

Harvard Bioscience (NASDAQ:HBIO) announced its quarterly earnings data on Tuesday. The medical instruments supplier reported ($0.14) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.21) by $0.07, FiscalAI reports. Harvard Bioscience had a negative return on equity of 25.78% and a negative net margin of 11.44%.The business had revenue of $22.73 million during the quarter, compared to analysts’ expectations of $21.45 million.

Here are the key takeaways from Harvard Bioscience’s conference call:

• Second-quarter revenue rose 11% year over year to $22.7 million, exceeding guidance, driven by CRO demand, distributor performance, telemetry, electroporation, and other CMT products. Management raised full-year 2026 revenue growth guidance to 3%-5% from 2%-4%.
• Adjusted gross margin declined to 57% in the quarter due to a less favorable mix, including stronger CMT and China sales. The company lowered its full-year adjusted gross margin outlook by one percentage point to 57%-59%.
• Recurring revenue increased to 55% of first-half revenue, supported by consumables, software, and service contracts, while new product innovation revenue contributed 11% versus 3% a year ago. Management is targeting 60% recurring revenue over the long term.
• Project Viking remains on schedule, with two product lines transitioned in the second quarter and two more planned for the third quarter. The manufacturing consolidation is expected to generate $3 million in annual cost savings in 2027 and $4 million thereafter.
• Operating cash flow turned negative at $0.3 million for the first six months, compared with $5.7 million generated in the prior-year period, largely due to inventory builds and higher interest costs. The company ended the quarter with $6.5 million in cash and $33.5 million of net debt.

Harvard Bioscience Stock Up 2.6%

HBIO traded up $0.16 during trading on Wednesday, hitting $6.29. 11,508 shares of the company’s stock traded hands, compared to its average volume of 38,308. The stock has a market capitalization of $28.37 million, a price-to-earnings ratio of -2.90 and a beta of 1.49. The company’s 50 day simple moving average is $6.15 and its two-hundred day simple moving average is $5.82. Harvard Bioscience has a 12-month low of $3.75 and a 12-month high of $9.40. The company has a current ratio of 1.99, a quick ratio of 1.06 and a debt-to-equity ratio of 3.60.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of HBIO. Corsair Capital Management L.P. increased its holdings in Harvard Bioscience by 1,008.7% in the 4th quarter. Corsair Capital Management L.P. now owns 1,108,692 shares of the medical instruments supplier’s stock worth $741,000 after buying an additional 1,008,692 shares in the last quarter. Essex Investment Management Co. LLC bought a new position in Harvard Bioscience during the 4th quarter valued at about $124,000. Renaissance Technologies LLC lifted its stake in Harvard Bioscience by 17.6% during the 4th quarter. Renaissance Technologies LLC now owns 1,021,241 shares of the medical instruments supplier’s stock valued at $683,000 after acquiring an additional 152,763 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Harvard Bioscience by 4.3% during the 4th quarter. Geode Capital Management LLC now owns 460,793 shares of the medical instruments supplier’s stock valued at $308,000 after acquiring an additional 18,923 shares during the last quarter. Finally, Two Sigma Investments LP boosted its holdings in shares of Harvard Bioscience by 139.7% during the 3rd quarter. Two Sigma Investments LP now owns 474,157 shares of the medical instruments supplier’s stock valued at $208,000 after acquiring an additional 276,372 shares during the last quarter. 80.87% of the stock is owned by institutional investors.

Key Headlines Impacting Harvard Bioscience

Here are the key news stories impacting Harvard Bioscience this week:

• Positive Sentiment: Q2 results exceeded expectations: Revenue increased 11% year over year to $22.7 million, above the $21.45 million consensus estimate. Adjusted EBITDA rose to $1.7 million from $1.5 million, while adjusted EPS of negative $0.14 was better than the expected negative $0.21. Harvard Bioscience Announces Second Quarter 2026 Financial Results
• Positive Sentiment: 2026 outlook was raised: Harvard Bioscience now expects full-year revenue of $89.1 million to $90.9 million, compared with the prior consensus of $88.6 million, representing 3% to 5% year-over-year growth. Management also projects adjusted EBITDA growth of 6% to 10%. Harvard Bioscience 2026 Revenue Guidance
• Positive Sentiment: Analyst support increased: Benchmark raised its price target from $6.00 to $7.50 and assigned a “speculative buy” rating, implying approximately 21% upside from the referenced share price. Benchmark Price Target Update
• Neutral Sentiment: Transformation efforts continue: The company launched Project Viking, a strategic initiative focused on translational science and operational transformation. Its financial benefits remain to be demonstrated. Project Viking Launch
• Negative Sentiment: Profitability remains a concern: Harvard Bioscience reported a $2.9 million GAAP net loss, wider than the $2.3 million loss a year earlier. The company continues to operate with negative margins and substantial leverage, making the “speculative buy” designation particularly relevant.

Wall Street Analyst Weigh In

HBIO has been the subject of several analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Harvard Bioscience in a report on Wednesday, June 24th. Benchmark increased their price objective on shares of Harvard Bioscience from $6.00 to $7.50 and gave the company a “speculative buy” rating in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Harvard Bioscience currently has an average rating of “Hold” and an average target price of $6.75.

Harvard Bioscience Company Profile

Harvard Bioscience, Inc develops, manufactures and distributes life science research instruments and consumables used by academic, biopharmaceutical and government laboratories worldwide. The company’s product portfolio spans cellular physiology, microfluidics, electrophysiology and lab automation, providing tools that enable researchers to study everything from cell behavior and organ function to drug delivery and tissue mechanics.

Through its operating units—most notably Harvard Apparatus, BTX, Radnoti and Warner Instruments—Harvard Bioscience offers a diverse range of scientific equipment including precision pumps, stereotaxic instruments, electroporation and gene delivery systems, perfusion systems and microinjection tools.