Cytek Biosciences Earnings Call: Mixed Sentiment and Growth

Cytek Biosciences, Inc. ((CTKB)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call of Cytek Biosciences, Inc. presented a mixed sentiment, reflecting both achievements and challenges. The company reported significant revenue growth in the Asia Pacific (APAC) region and in its service and reagent sectors. However, these positive developments were counterbalanced by difficulties in the EMEA region and the U.S. academic and government sectors. Additionally, increased operating expenses and a net loss contributed to the overall balanced sentiment of the call.

Revenue Growth in APAC and Recurring Revenue

The company achieved a total revenue of $52.3 million, marking a 2% year-over-year increase. This growth was primarily driven by strong double-digit gains in the APAC region and sustained momentum in recurring revenue businesses, particularly in service and reagents.

Strong Performance in APAC

APAC, including China, saw a remarkable 25% increase in Q3, fueled by growth in instruments, service, and reagents. This robust performance underscores the region’s critical role in Cytek’s overall revenue growth.

Reagent Revenue Growth

Globally, reagent revenue grew by 21% year-over-year, supported by operational improvements such as faster delivery times and enhanced customer service, which have contributed to this strong performance.

Service Revenue Growth

Service revenue demonstrated strong growth with a 19% increase in Q3 compared to the prior year quarter, highlighting the company’s successful expansion in this segment.

Aurora Evo Instrument Launch

The introduction of the Aurora Evo Analyzer was well-received, contributing positively to instrument revenue growth and reinforcing Cytek’s innovative edge in the market.

Expansion of Cytek Cloud User Base

As of September 30, 2025, Cytek Cloud had over 22,600 users, representing a growth of more than 40% since the beginning of 2025, indicating strong adoption and user engagement.

Decline in EMEA Revenue

The EMEA region experienced a double-digit year-over-year revenue decline, primarily due to significantly reduced instrument sales to academic and government customers, reflecting regional challenges.

U.S. Academic and Government Sector Weakness

In the U.S., instrument revenue remained flat year-over-year, with demand from academic and government sectors under pressure due to funding uncertainties.

Lower Gross Profit Margin

The GAAP gross profit margin decreased to 53% from 56% in the prior year quarter, impacted by higher materials and tariff costs, as well as increased overhead.

Increased Operating Expenses

Operating expenses rose to $36.7 million in Q3, up 10% from Q3 2024, driven by higher general and administrative expenses, including legal costs related to a patent litigation case.

Net Loss in Q3

The company reported a net loss of $5.5 million in Q3, compared to a net income of $0.9 million in the previous year quarter, attributed to higher operational losses and lower net other income.

Forward-Looking Guidance

Cytek Biosciences provided a stable financial outlook during the earnings call. The company reaffirmed its full-year 2025 revenue guidance of $196 million to $205 million, highlighting strong momentum in service and reagents and stabilization in U.S. instrument revenues. The growth in the APAC region and recurring revenue streams are expected to continue driving the company’s performance.

In conclusion, Cytek Biosciences’ earnings call highlighted a balanced sentiment with notable achievements in revenue growth, particularly in the APAC region and recurring revenue sectors. However, challenges in the EMEA region and U.S. academic and government sectors, along with increased operating expenses and a net loss, present areas for improvement. The company’s forward-looking guidance suggests a stable outlook with continued growth potential.