Thank you, Regina. Good afternoon, everyone, and thank you for joining us.

My name is Ruben Argueta, Bio-Rad's new Head of IR. It's a pleasure to join the team and be with you here.

Today, we will review the financial results for the first quarter ended March 31st, 2026, and provide an update on key business trends for Bio-Rad. With me on the call today are Norman Schwartz, our Chief Executive Officer; Jon DiVincenzo, President and Chief Operating Officer; and Roop Lakkaraju, Executive Vice President and Chief Financial Officer.

Before we begin our review, I would like to remind everyone that we will be making forward-looking statements about management's goals, plans, and expectations, our future financial performance, and other matters. These statements are based on assumptions and expectations of future events that are subject to risks and uncertainties.

Our actual results may differ materially from these plans, goals, and expectations. You should not place undue reliance on these forward-looking statements, and I encourage you to review our filings with the SEC, where we discuss in detail the risk factors in our business.

The company does not intend to update any forward-looking statements made during the call today. Finally, our remarks today will include references to non-GAAP financials, including net income and diluted earnings per share, which are financial measures that are not defined under generally accepted accounting principles.

In addition to excluding certain atypical and non-recurring items, our non-GAAP financial measures exclude changes in the equity value of our stake in Sartorius AG in order to provide investors with a better understanding of Bio-Rad's underlying operational performance. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release.

We have also posted a supplemental earnings presentation in the Investor Relations section of our website for your reference. With that, I will now turn the call over to our Chief Operating Officer, Jon DiVincenzo.

Thanks, Ruben, and welcome to the team. Good to have you here.

Good afternoon, everyone. Thank you for joining us.

In the first quarter, our teams executed within a dynamic operating environment. We reported Q1 results within our revenue guidance as we navigated several external pressures, most notably associated with the ongoing conflict in the Middle East.

This region has been one of Bio-Rad's fastest-growing markets for several years. We haven't highlighted this in the past, but in 2025, the region represented over 9% of our diagnostics segment, primarily driven by our blood typing franchise.

The conflict substantially reduced our first quarter 2026 revenues, and depending upon the timing of resolution, will be a significant headwind for revenue and margin for full year 2026. Despite the macro headwinds, our teams remain focused on executing our strategic initiatives, accelerating innovation, and driving further efficiencies across the organization to increase competitiveness.

In Life Science, reported net sales were flat, reflecting mixed end market conditions. Academic demand remained constrained, particularly in the Americas, where our customers' budgets have been significantly impacted by changes in funding.

While NIH funding increased modestly year-over-year, our voice of customer pulse surveys indicate that, behind the scenes, there continues to be considerable disruption, and we continue to see a lag between funding approvals and purchasing activity. In biopharma, we are seeing early signs of stabilization.

Early-stage biotech remains cautious, however, activity among later-stage companies is more robust. We expect gradual improvement through the year.

On the commercial side, ensuring we capture our fair share of demand in a constrained market requires our sales organization to work differently. We have sharpened the focus of our commercial teams on segment-level prioritization, directing coverage towards customers with active funding, accelerating conversions from our existing installed base, and competing aggressively where competitive displacement opportunities exist.

Our digital PCR product area continues to be a strategic differentiator. In the quarter, ddPCR instrument revenue grew 24% over prior year.

This is an encouraging leading indicator since new customers typically drive consumable pull-through within 6 to 12 months of purchase and installation. The new QX700 platform is driving both competitive wins and conversion from qPCR, supported by an extensive assay menu and expanding publication base.

Ahead of schedule, the team now has enabled over 99% of our digital PCR assays be available on the new QX700 series, which is driving instrument growth. Looking ahead, we continue to expect a measured recovery in Life Science led by biopharma.

In Clinical Diagnostics, we delivered modest reported growth of just under 2%. As I mentioned earlier, performance in the quarter was impacted by geopolitical disruption in the Middle East, which affected both demand and logistics.

While this creates near-term challenges, we expect eventual market normalization once the conflict is resolved. Outside of this region, the segment performed as planned.

In particular, demand for our quality systems and immunohematology franchises showed signs of strength. From a margin standpoint, Diagnostics was adversely affected by disproportionate share of supply chain cost pressures, and in light of these continuing supply chain challenges, we understand the need to rationalize manufacturing capacity and network.

We are also addressing these challenges through focused actions in procurement and manufacturing. Turning to our operational priorities, we are executing against a clear agenda focused on improving agility, resiliency, and efficiency across the company.

In our efforts to become more agile, we are increasing flexibility in our manufacturing footprint. During the quarter, we began manufacture of select Life Science instruments in China for China, improving responsiveness to local market demand, allowing us to compete in tenders while minimizing tariff exposure.

This initiative is indicative of how we are using efficient capital deployment to build operational capabilities for long-term business continuity. In R&D, we have reengineered our innovation engine to deliver improved return on investment.

Following our portfolio prioritization decisions, we are concentrating investment in areas with the strongest commercial potential. As I mentioned earlier, one example of this prioritization is the fact that 99% of our digital assays are now supported on the new QX700 platform, again, ahead of plan.

As we prioritize our projects, our focus areas are expanding into high-growth clinical applications leveraging our ddPCR technology, advancing our digital PCR portfolio, including our next-gen system and oncology assays, and embedding AI capabilities to accelerate development and enhance platform performance. While it is early, this focus allows us to deliver more consistent, higher-quality growth over time.

In closing, we are executing with discipline in a challenging environment. We are making progress on the operational actions within our control, improving supply chain capability, strengthening execution, and focusing investment where it matters most.

We remain confident these actions will translate into improved financial performance over time. With that, I'll turn the call over to Roop.

Thank you, John, and good afternoon. I'd like to start with a review of the first quarter 2026 results.

Net sales for the first quarter of 2026 were approximately $592 million, which represents a 1.1% increase on a reported basis versus $585 million in Q1 of 2025. On a currency-neutral basis, this represents a 4.2% year-over-year decrease and was driven by lower sales in both Life Science and Clinical Diagnostics segments.

Sales of the Life Science segment in the first quarter of 2026 were $229 million, essentially flat compared to Q1 of 2025 on a reported basis, and a 4.3% decrease on currency-neutral basis, primarily driven by ongoing challenges in the academic research market, particularly in the Americas. Currency-neutral sales decreased in the Americas and EMEA, partially offset by increased sales in Asia Pacific.

Our ddPCR portfolio was essentially flat in Q1 due to softer biopharma consumables as customers shift their R&D priorities, despite the instrument growth. The year-over-year instrument growth, as John noted, we believe is a strong indicator of our market share gains, especially considering the current market conditions.

Finally, the Stilla acquisition is on track to be accretive by midyear. More importantly, the QX700 is contributing to both revenue growth and margin expansion.

Life Science ex-process chromatography revenue increased 1% year-over-year and decreased 3.1% on a currency-neutral basis. Consumables revenue in academic and biopharma research was down 3.9%, reflecting the challenging academic research funding environment.

Our process chromatography business, as expected, experienced a year-over-year currency-neutral decline of 13%. Sales of the Clinical Diagnostics segment in the first quarter of 2026 were approximately $364 million compared to $357 million in Q1 of 2025, an increase of 1.9% on a reported basis and a decrease of 4.1% on a currency-neutral basis, primarily driven by revenue declines from our EMEA region as a result of the regional conflicts in the Middle East.

The regional conflict affected demand and execution of logistics for our diagnostics products, resulting in an $11 million impact to the business in the quarter. As a result of the ongoing challenges within the Middle East, this will have a continued effect on our business for the remainder of 2026.

Consolidated gross margin was 52.3% for both the first quarter of 2026 and 2025. On a non-GAAP basis, first quarter gross margin was 53.1% versus 53.8% in the year-ago period.

The lower Q1 gross margin was due to several factors, including unfavorable manufacturing absorption as a result of the decreased Middle East revenue, which contributed to margin pressure by 40 basis points, higher instruments versus consumables mix, which adversely affected margin by 30 basis points, higher freight fuel surcharges by 20 basis points, and FX by 20 basis points. SG&A expense for the first quarter of 2026 was $212 million, or 35.9% of sales, compared to $209 million, or 35.7%, in Q1 of 2025.

First quarter non-GAAP SG&A spend was $211 million versus $192 million in the year-ago period. The increase in SG&A expense was primarily due to foreign exchange impact resulting from a weaker US dollar on our international cost base, partially offset by lower restructuring costs.

Research and development expense in the first quarter of 2026 was $63 million, or 10.6% of sales, compared to $74 million, or 12.6% of sales, in Q1 of 2025. First quarter non-GAAP R&D spend was $65 million versus $60 million in the year-ago period.

Q1 operating income was approximately $34 million compared to operating income of approximately $24 million in Q1 of 2025. On a non-GAAP basis, first quarter operating margin was 6.6% compared to 10.8% in Q1 of 2025, reflecting the lower gross margin year-over-year.

The change in fair market value of equity security holdings and loan receivable, primarily related to the ownership of Sartorius AG shares, contributed $562 million to our reported net loss of $527 million, or $19.55 per diluted share. Non-GAAP net income, which excludes the impact of the change in equity value of the Sartorius shares, was $51 million, or $1.89 diluted earnings per share, for the first quarter of 2026 versus $71 million, or $2.54 diluted earnings per share, for Q1 of 2025.

Moving on to the balance sheet and cash flow. Total cash and short-term investments at the end of Q1 were $1,565 million compared to $1,541 million at the end of 2025.

Inventory at the end of Q1 was $771 million, up from $741 million at the end of 2025. For the first quarter of 2026, net cash generated from operating activities was $108 million compared to $130 million for Q1 2025.

Net capital expenditures for the first quarter of 2026 were approximately $30 million. Depreciation and amortization for the first quarter was $41 million.

Free cash flow for the first quarter was $78 million, which compares to $96 million in Q1 of 2025, and represents a free cash flow to non-GAAP net income conversion ratio of 153% for the first quarter of 2026. During the first quarter of 2026, we repurchased 176,000 shares through our buyback program at a total cost of approximately $48 million.

Since Q1 of 2024, we've spent $542 million to repurchase 2.1 million shares at an average price per share of approximately $261. Moving on to our non-GAAP guidance for 2026.

We have decided to adjust our 2026 guidance. As John mentioned in his comments, the Middle East, which represented the fastest-growing region for us over the past few years, was again expected to contribute growth in 2026.

As a result of the ongoing conflict in the region, we are seeing continued demand softness, challenges getting products to our channel partners and into end customers. Once the conflict resolves, we believe that infrastructure rebuild will be prioritized, and ultimately, when the region is stable, the Middle East will return to a double-digit growth area for us.

Our updated guidance is currency-neutral revenue growth for the full year to be between -3% and +0.5%. The Life Science segment year-over-year currency-neutral revenue growth is expected to be between -3% and -1% due to continued challenges in academic funding, with an adverse impact from the Middle East conflict in the high single-digit millions.

We are still modeling a modest biopharma recovery. For the Diagnostics segment, we estimate currency-neutral revenue growth to be between -3% and +1%.

We project mid single-digit growth for our quality controls business. We are assuming that the remaining diagnostics portfolio, ex-quality controls, is expected to decline between negative mid to low single digit.

Full-year non-GAAP gross margin is projected to be between 53% and 54% due to the lower revenue, which is reducing our fixed cost absorption, and higher freight rates. Full-year non-GAAP operating margin is projected to be between 10% and 12%.

We estimate the non-GAAP full-year tax rate to be approximately 22%. As a result of the lower revenue and operating profit, we've updated our 2026 full-year free cash flow estimate to be in the range of approximately $290 to $340 million.

Regarding share repurchases, we will continue to be opportunistic, and as of March 31st, we have approximately $237 million available for additional buybacks under the current board-authorized program. I'll now turn the call over to Norman.

Great. Thank you, Roop.

As you've heard from John and Roop, we are operating in a challenged and challenging environment. However, underlying the market noise, I think we continue to make progress on many fronts.

In the last 24 months, for example, we've strengthened our management team and how we operate as a company. To me, this is a team with deep operational experience, and I think it is reflected in the rigor, the discipline, and consistency in current decision-making and in implementation.

We see that in our portfolio decisions, where we're focusing investments and making the choices necessary to bring quality products to market more quickly and to improve returns. We see that in our operating model, building capabilities like our In China, For China initiative to improve responsiveness to local demand and allowing us to participate in local tenders in a cost-effective manner.

You see it in our M&A, with a focus on disciplined, strategic opportunities where we can create value for our customers, the company, and shareholders. We do see M&A as a key lever for us in our longer-term strategy to accelerate top-line growth and margin expansion.

I would say here our focus has shifted from early-stage opportunities to companies with demonstrated revenue and margin profiles, businesses where we can leverage our capabilities and scale to accelerate growth in attractive markets. I think here Stilla is a good example of this approach: strengthening a core platform with a scalable, commercially proven business.

In terms of size, today our target acquisition is companies within the $100 million to $500 million revenue range, with complementarity to our current business. We're not at the moment focused on anything transformative.

In short, I think we see our strategy as disciplined, targeted, and accretive. Finally, we always get the question on Sartorius, and so I thought maybe I'd just take a moment to reiterate our position.

Fundamentally, we continue to be thoughtful, disciplined stewards of the asset. The Sartorius position is monetizable and provides us with optionality, which we evaluate with the same rigor we apply to every capital decision we make.

That said, our focus is really running, growing, and positioning Bio-Rad for market leadership and maximizing long-term shareholder value, and every capital allocation decision, including Sartorius, comes from that vantage point. Overall, if I think about where we are today, our end markets in Life Science and Diagnostics, although challenged in the near term, are durable and resilient, and I think we're well positioned as a market leader in a number of segments.

In the meantime, we continue building on the operational discipline required to deliver consistent revenue growth and mid-teens operating margin in the near term. That's all from me.

Operator, now I think we'll open up the line for questions. At this time, I would like to remind everyone, in order to ask a question, press star, then the number 1 on your telephone keypad.

Sorry about that. Hello.

Good afternoon. I wanted to start, just to get a little bit more color on the Middle East.

This has come up on a few of the earnings that have been reported so far, but it seemed like the impact was a little bit more prominent for Bio-Rad. I was wondering if you could just share why that might be the case, either in terms of the exposure to the region or how that might have impacted your logistics.

Just color on exactly how it played out would be helpful.

Jack. Hey, it's John.

Thanks for joining us. As we said on the call, the fact that it's been a fast-growing region for us, we've been very successful in our diagnostics business, winning a number of tenders across the countries in the region the last number of years.

It got to a scale where it's 9% of the diagnostics business, mid single digit for the company as a whole. I think the exposure we had maybe a little different than some of our peers based on our strength and our wins there.

Just as things kind of emerged, the channel kind of certainly slowed down. We obviously still had revenue there, but we did not reach the revenue numbers that we had.

We expected solid high say double-digit growth in that region. It was just kind of a bit of a break there for us.

I think as we project forward, be great if the conflict was resolved, here soon, but it'll take some time for the region to recover. That was kind of the thinking behind the new guide that we've expressed.

Got it. Obviously, unfortunate situation.

I did hear kind of reiterated kind of the ambition to get up to the mid-teens operating margins in the near term. Can you just talk about the cost actions that you're planning to take to kind of draw a line under earnings and, obviously, there's things that are out of your control, but what can you do to protect and grow earnings in this environment?

Jack, appreciate it. This is Roop.

I'll maybe start on that question. I think there's a number of things that we have under evaluation.

We've already begun to tamp down discretionary spend and these sort of things. I think more broadly, if this sort of impact continues, then obviously, it's going to be a more meaningful impact, which is reflected in our guide, and therefore, more significant actions.

I think the other piece of this that Norman mentions about reaching that mid-teens, part of what we're evaluating is just overall considering the continued challenges that seem to be arising, whether that tariffs last year, now Middle East conflict, which arguably can't be predicted to this magnitude, there's some structural things that maybe we need to be thinking about and how we run the business. Those are the types of things we're looking at without getting into too many specifics at this time, which I think is a little bit early.

It's kind of all functional areas and how we operate and how we execute, we can be more efficient, effective, and being more nimble in this environment.

Got it. Maybe one final one is unrelated, but just on the China diagnostics business.

There was an update during the quarter from the NHSA around not VBP, but new strategies around cost containment. Any color on how you see that playing out, and any updates on the region there?

Thank you.

Maybe I'll start again. To date, we're not seeing anything impacting us in terms of what our folks on the ground are saying from China.

Obviously, it's something we'll continue to monitor and evaluate. Nothing currently that we're anticipating.

Hey, thanks. Good afternoon.

It'd be helpful if you could just maybe share any color on 2Q, 3Q revenue phasing. You lap a tougher comp in the second quarter, and are you kind of assuming that a fairly normal sequential seasonality for the business off of the 1Q base from here?

I appreciate the question, Brandon. Let me talk about the phasing from Q1 to Q2.

Obviously, Q1 is typically our low quarter. That'll be the case here in 2026.

From a phasing standpoint, we see about a 5% lift from Q1 to Q2, and then it lifts a little bit from there, just slightly into Q3, which is not been the case. Q2, Q3 has been relatively flat in the last couple years that I've been here.

Then Q4 is expected to jump up again from that, Q4 tending to be our seasonally strongest quarter. In terms of the drivers of those, obviously, the Middle East, we've pulled out specific revenue or most of the revenue associated with certain countries that are affected directly by the conflict.

Obviously, Middle East is more broad than that in terms of additional countries that we've left unaffected. The other piece of it, though, more specifically to the Q2, Q3, Q4 increase in revenue over time, it's through other areas of our business and other regions.

Specifically, quality controls based on batch releases are going to be strong in Q3 and Q4 this coming year. Our blood typing business in other regions has some uptick in Q3 and Q4.

There's some very specific drivers that allow us to get to that kind of phased-in increase of revenue as we get through the year based on other parts of our business.

Thanks. That's really helpful.

One on the ddPCR business. If I'm doing the math right, were consumables down something like low double digits in the quarter?

It wasn't really clear what was driving that. Last quarter you talked about the QX700 maybe driving some share gains versus your main competitor there and from qPCR.

Has there been any acceleration in the cannibalization of qPCR? Cuz your main competitor still seems to be growing pretty nicely in that market.

Thanks. Yeah.

Brandon, it's John. We are pretty pleased with the kind of the results of the instrument sales, both for QX700, but also for our legacy Q100 systems, QX200 systems as well.

The consumables, which is the majority of overall the business, was soft in the quarter, combination of academic and even some on the biopharma side. To answer your question, that's just a matter of what projects are going forward when.

We did have pretty strong growth the first half of last year in consumables and probably just absorbing some of that growth this year. As the equation here is growing our install base, and we feel like we're growing our install base both by taking share within qPCR as well as competitively holding our own as we look at our win-loss analysis, etc.

We think if anything, this is the healthiest we've been in our ddPCR portfolio in quite some time, both because of the portfolio itself and the breadth of the offering that we have, as well as just the increase in both the assays that we're developing and the number of publications, which seems to be on a accelerating trajectory. We feel really strong that we're certainly holding our own, in many cases, we are taking share from qPCR, and competitively, I think our team feels pretty good, and our pipeline is larger today than it's been since I've been here.

I'll just add one additional piece, Brandon, to your specific question on the change, and you're spot-on in terms of low double digits.

Great. Last one for Norman.

I couldn't help but notice, it felt like your comments around M&A priorities there toward the end of your prepared remarks, a little bit more detail than I think you've kind of shared in the past. Should we interpret that as an indication that, hey, the pipeline's full and maybe there's something more actionable over the relative near term?

Thanks.

No, I think for me, it's just explaining that part of the strategy. I think that the focus is on continuing to develop the business, growing the organic business, and this is another piece of the puzzle, which is M&A.

It's just diving a little bit in on a piece of the strategy.

Got you. Thanks.

Thanks, Brandon.

Hey, thanks. Maybe just starting on R&D.

You are spending 12%, which is, relatively high versus peers. Can you maybe just help us think about You've talked about, bringing products to market faster, getting better ROI on those dollars.

Just talk a little bit about what we can expect from that, any metrics you can put around that, and is, R&D a source of leverage over time as well for you guys?

Certainly is. If anything, it's kind of a foundational growth opportunity for us.

Whether it was through COVID or some pretty large bets we were making in diagnostic side, we've reset the bar on the projects that we're working on. We've kind of redirected some of our resources, but even more importantly, Tycho, a disciplined approach to the life cycle of our existing portfolio, looking at ways to really make an impact, as I said, applying AI into some of the imaging and other platforms we have, and a couple of bets that are kind of new to the world bets.

I think it's just a comprehensive management and governance of that investment. As you said, it's a pretty high investment, if anything, we have even more in Life Sciences rather than Diagnostics compared to some of our peers, and we need a better return.

I think over time, maybe we become more efficient and we're not investing at that level, but today, it's kind of all hands on deck to get a very, very robust innovation pipeline going and to really see the fruits of that labor.

Okay. Follow-up on 2Q, Roop.

I'm hoping you can kind of clarify. I think there's been a little bit of confusion.

Are you saying kind of down mid single-digit core? Is that what you're implying here given the sequential comments you made?

Hey, Tycho, I apologize. I missed the first part.

In what area?

I was asking for clarification on your 2Q comments. I think people are getting to kind of down 5, down 6% organic.

Is that the right number?

That's not an unreasonable number. We're going to see, and revenue will pick up a little bit.

Gross margin, we'll see that tick down just a tad in Q2, and quite honestly, it's specific to freight because we had effectively 1 month of freight due to the Middle East conflict, now we've got 3 months of freight. We've got mitigating actions that we're working through, but not sure that they're have the level of impact starting in Q2.

It'll have some, but in Q3, Q4, we'll see a bit more of that. Q2 is a revenue increase, slight dip in gross margin, and then that flows through.

Okay. Then I guess just on the actions, how much of this is a wait-and-see on the backdrop here if things get better?

Overall, you're back to 2018 levels on operating margins. Can you maybe just talk about your commitment to actually driving those higher, and how much of this is timing-related watching the backdrop here in the near term?

Maybe I'll start, and I'll have Norman jump in. I'll just speak to obviously, there's near-term actions that we're taking, as Norman talked about more broadly, and I'll turn it over to him.

I think we are factoring the Middle East conflict to be transitory, not permanent. I think it's hard to predict exactly when that ends, and so we wanted to give that color from that standpoint, knowing that we then need to evaluate the broader business.

I think that certainly we've been working on making the business more agile in these kinds of environments, and I think that's our focus really is we can't control the kind of what's going on in these environments, and we just have to kind of work on what we can control, which is improving our kind of operations and our capabilities, and when the markets return, I think we'll be in very good shape.

Maybe the last thing to add, the fact that Norman was explicit in that manner, you can be assured that it's a focus for us in terms of driving that operating margin expansion in the near term, as he said.

Thank you.

Thanks, Tycho.

Hey, guys, thank you for taking the question. Maybe one on the process chrome business.

Can you just talk about performance and visibility there? We've heard some noise from some of that more concentrated vaccine exposure, some customers lowering ordering patterns down the line.

Are you seeing any changes on process chrome? What's the right way to think about the pacing of that as we go through this year and the recovery path?

Yeah.

Patrick, from a process chrome standpoint, Q1 played out as expected. We are mindful of kind of staying close to our customers as part of understanding order patterns, demand patterns, these sort of things.

We're not necessarily seeing any change in inflection for the rest of the year at this point in time, but that is something that we're keeping a pulse on, if you will.

I think it was last call Norman kind of mentioned-- Yep, go ahead. Sorry.

Sorry, just the fact that certainly there is a bit of concentration-- Sorry, just the fact that certainly there is a bit of concentration today in our revenues. However, we have several hundred projects we're working on from early-stage clinical trials to later stages in preparing for commercialization.

We're projecting forward, how do we bring a little more stability by broadening out the revenue sources across, and some of that is with existing customers that have been successful and they have new molecules coming to market, and other are new customers. There's quite a bit of transparency in where we're building out method development and participating in molecules that could be pretty exciting in the future.

Time will tell. These are things that don't happen in weeks, months, or quarters, it's over a period of years.

We feel good that we're bringing some balance and spreading, if you will, out the revenues to various molecules they're coming to market.

Yeah. No, that's helpful.

Then I think it was last quarter Norman kind of mentioned the path back to mid single-digit growth for process chrome, maybe next year is still a little subdued in the low single. Is that still the right way to think about it, just any updated thoughts on the path to recovery there?

Hey, Patrick, really apologize. You're a bit muffled, would you mind repeating that?

Sure. It was just on the path back to recovery of process chrome.

I think last quarter Norman mentioned, maybe it's a low single-digit number next year on the path back to mid single. Is that still the right way to think about it, just the visibility that's had?

I think that's still the right answer. Yes.

Great. Last one's on the PCR, digital PCR side in particular.

Are you seeing any changes competitively in the market? Just updated thoughts on the growth outlook for that business would be helpful.

Thank you, guys.

I think as I mentioned earlier, Patrick, we feel really confident. Our commercial team is working quite strongly with our marketing teams.

We have a number of new assays that are being built out to our portfolio as we transition to this broader portfolio. I think that they're in a position today where they feel like they have a broad set of solutions, the right solution for the right customers, and customers are I think receiving the new portfolio very well.

We still have more R&D projects to work on to expand what we have today, and I think that compared to a year ago, we're in a much better position, maybe than we were starting 2025.

Thank you very much. I have a follow-up question on the guidance, and I think it touches a thread that we've been speaking to earlier in the call.

The reduction in the margin forecast suggests that the decremental margins on lower revenue are pretty severe. Can you clarify whether there's any offsetting actions you're taking today, or are any potential offset something we should stay tuned for in the future?

Dan, great to have you on the call and chat with us. We've got near-term actions that we are in process of having put in place and evaluating further.

I think in terms of broader evaluation of things, stay tuned for that as we continue to work through the different aspects.

I think there are things like increased fuel costs and logistics costs, which we've absorbed at this point in time, which you really see the impact. We have to decide whether there are appropriate surcharges or ways to mitigate some of the additional costs we have.

It's a pretty comprehensive board that we have of things we can do to improve our margins in light of the conflict and overall challenges.

That's helpful. Then my follow-up question: can you elaborate a bit more on your assumptions for the biopharma end market?

It sounded like you were more optimistic in that market. Yeah.

Again, we think of biopharma kind of in three different segments. Obviously, it's large pharmaceutical, biopharmaceutical companies that are, I think, in pretty good shape, and our portfolio looks good there.

When you get to the smaller biotechs, but they have molecules and phase 3 clinical trials, they're doing pretty well. There's still some softness in the early-stage biotechs.

I think that's what we tried to elucidate in our comments. There's still some concern there that even though they may or may not be funded, they're still quite conservative in their spending.

It's across that spectrum, there's good strength and other areas where it's softer than we'd like it to be.

Thank you very much.

Thank you. Thanks, Dan.

Thank you for joining today's call. As always, we appreciate your interest and look forward to connecting with you soon.

Thank you.