Management characterized 2025 as a pivotal foundation-building year, focusing on improving financial flexibility and clarifying a long-term shift toward the $10 billion translational science market.

The company is evolving from a traditional tools provider to an enabler of translational science, aiming to bridge the gap between animal models and human trials where 90% of drug candidates currently fail.

Q4 performance was driven by a favorable mix shift toward higher-margin product lines and disciplined expense management, resulting in 27% year-over-year adjusted EBITDA growth.

Strategic consolidation of manufacturing from Holliston to Minneapolis and European centers is expected to yield $3 million in savings in 2027 and $4 million annually thereafter.

The company is intentionally prioritizing higher-margin consumables, service, and software, which now represent approximately 55% of total revenue, to improve visibility and durability.

Management strengthened governance and leadership by appointing four new Board members and confirming Mark Frost as permanent CFO to support the transition to a platform-based technology provider.

Full year 2026 guidance forecasts low single-digit revenue growth (2% to 4%) and high single-digit adjusted EBITDA growth (6% to 10%), driven by higher-margin new product innovation.

Revenue is expected to ramp throughout the year on a year-over-year percentage basis, supported by stronger contributions from the NPI pipeline including SoHo telemetry and Mesh MEA.

The 2026 outlook assumes the reinstatement of employee bonuses and merit-based compensation, which were suspended in 2025 due to macro headwinds.

Management expects a positive impact from the February NIH funding approval to begin appearing in orders late in Q1, with primary revenue benefits realized in Q2.

The company plans to continue deleveraging through a debt structure that requires no amortization in the first two years and offers potential conversion of debt to equity.

A 43-day government shutdown during the fourth quarter impacted the company's ability to overachieve on revenue targets.

Full year GAAP operating income was significantly impacted by a goodwill impairment charge taken earlier in 2025.

The company successfully remediated material weaknesses and one significant deficiency in its financial reporting during the year.

A comprehensive refinancing completed in December extended debt maturity to 2021 and reduced annual debt service by $3 million for the first two years.

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Management expects a positive impact toward the end of Q1 and into Q2 as pending grant submissions are approved.

While NIH revenue is approximately 20% of U.S. revenue, the build-to-order nature of the business means most revenue benefits will lag until the second quarter.

Management explicitly expects both the BTX bioproduction and Mesh MEA platforms to achieve double-digit growth in 2026.

Q4 saw a 10% year-over-year increase in China/Asia Pacific as tariff-related delays from earlier in the year began to subside.

The company expects a return to a normal cadence in Asia, though this remains sensitive to any future changes in tariff policy.

Management noted that the pharma and biotech portion of the market is currently up year-to-date.

The company ended the year with its highest backlog in over two years, providing confidence in the 2026 growth trajectory.

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