Repligen (RGEN) Q2 2025: Chromatography Revenue Surges 40%, Outpacing Bioprocessing Market Growth

July 29, 2025 | By EarningsIQ Research

Repligen delivered broad-based double-digit growth in Q2, led by a standout 40%+ increase in chromatography revenue, as order momentum and portfolio strength propelled the company to raise its full-year outlook. Management’s emphasis on innovation, diversified end-market exposure, and disciplined operating leverage signals confidence in sustaining above-market expansion despite new modality headwinds and evolving tariff dynamics.

Summary

• Order Momentum Outpaces Sales: Eight consecutive quarters of orders exceeding revenue highlight persistent demand strength.
• Chromatography and Filtration Lead Growth: Hardware and consumable pull-through drive franchise outperformance.
• Margin Expansion Remains Central: Strategic investments and productivity initiatives underpin multi-year operating leverage plans.

Performance Analysis

Repligen posted 17% organic non-COVID revenue growth in Q2, its strongest pace since 2022, with all major product franchises and geographies contributing. Chromatography delivered a standout quarter, growing revenue over 40%, fueled by large-scale column demand and pharma wins in Europe. Filtration revenue rose in the mid-teens, supported by strong ETF (XCell ATF, alternating tangential flow filtration system) and TFF (tangential flow filtration) consumable demand, while capital equipment rebounded with high-teens growth, converting a robust funnel into new placements.

Order trends were consistently strong, with total orders up over 20% year-over-year and high teens organically. This marks the eighth straight quarter of orders exceeding non-COVID revenue, and the fifth of sequential order growth, indicating a durable demand pipeline. Biopharma, the largest end market, grew revenue 20% and orders over 20%, while CDMOs (contract development and manufacturing organizations) posted double-digit gains. Consumables, a recurring revenue driver, grew over 20% year-over-year. Despite a muted new modalities outlook for H2, the company’s diversified base and hardware-driven consumable pull-through support the raised guidance.

• Geographic Breadth: All regions posted mid-teens growth, with APAC orders nearly doubling sequentially and China rebounding sharply after new leadership investments.
• Margin Dynamics: Gross margin held at 51.1%, with mix headwinds from higher procured resin offset by productivity and volume leverage. Tariffs and acquisitions were modest margin drags.
• Operating Leverage: Adjusted OPEX grew 9% organically, well below the 17% organic revenue growth, driving margin expansion despite mix and FX pressures.

Repligen’s cash position increased to $709 million, providing flexibility for continued investment and selective M&A. The company’s consistent outperformance versus the bioprocessing market, coupled with disciplined cost control, underpins its updated full-year outlook and multi-year growth ambitions.

Executive Commentary

Strategic Positioning

1. Portfolio Diversification and Innovation

Repligen’s product strategy centers on a diversified bioprocessing portfolio, spanning filtration, chromatography, proteins, and process analytics. The company’s innovation engine, fueled by both R&D and targeted M&A, has enabled it to cross-sell into large pharma accounts and capture emerging opportunities in new modalities like cell therapy and ADCs (antibody-drug conjugates). Recent hardware wins, particularly in capital equipment and PAT (process analytical technology), further reinforce consumable pull-through and recurring revenue streams.

2. Commercial Execution and Global Expansion

Order growth and funnel expansion across all geographies demonstrate effective commercial execution. Notably, APAC and China showed significant sequential improvement, aided by new leadership and targeted investments. Management is investing in manufacturing labor and commercial teams to preserve lead times and capitalize on renewed demand in China and the broader Asia region.

3. Margin Expansion and Operating Discipline

Gross margin expansion remains a core tenet, with management targeting 52-53% for 2025 and a multi-year path toward 30% EBITDA margin. Key levers include volume-driven operating leverage, disciplined OPEX growth, and the Repligen Performance System (RPS, productivity and manufacturing optimization initiative). Pricing actions and sourcing improvements provide additional margin support, offsetting inflation, tariffs, and product mix headwinds.

4. Strategic Resilience Amid Modality Volatility

While gene therapy and AAV (adeno-associated virus) exposures remain a watchpoint, management has proactively sized the headwind from a major gene therapy platform at a 1% impact to guidance, with minimal incremental revenue assumed for H2. The company’s broad exposure to monoclonal antibodies and cell therapy, along with a growing base of $1 million+ customers in new modalities, provides resilience against program-specific volatility.

5. Hardware-Driven Consumable Flywheel

Capital equipment placements are increasingly viewed as a leading indicator for future consumable revenue, mirroring the successful ATF playbook. The company’s hardware portfolio, now including integrated PAT, is expected to drive services and consumable pull-through over multi-year cycles, underpinning longer-term growth visibility.

Key Considerations

Repligen’s Q2 results underscore the effectiveness of its innovation-led, diversified business model, but several factors will determine whether this momentum persists as bioprocessing markets normalize and competitive dynamics evolve.

Key Considerations:

• Order Book Health: Eight quarters of orders exceeding sales and sequential order growth signal durable demand, but sustained funnel expansion is essential to maintain above-market growth.
• China Rebound: Sharp order recovery and new leadership in China could unlock a multi-year growth tailwind if innovation and local investment translate to share gains.
• New Modality Volatility: Muted H2 guidance for new modalities reflects program-specific risk, but cell therapy and ADC momentum may offset gene therapy softness.
• Margin Trajectory: Mix headwinds, tariff surcharges, and acquisition integration must be balanced by productivity and pricing to achieve targeted margin expansion.
• Hardware Pull-Through: Continued success in capital equipment placements is critical for driving future consumable revenue and reinforcing the recurring model.

Risks

New modality headwinds, particularly in gene therapy, present ongoing revenue risk if broader sector softness persists. Tariff and trade policy changes, especially in China, could introduce volatility or disrupt supply chains, while product mix shifts and integration of recent acquisitions may pressure margins. Biotech funding and small biotech order trends remain muted, and any deterioration could impact growth from emerging customers.

Forward Outlook

For Q3 2025, Repligen expects:

• Revenue in line with Q2, defying normal seasonal softness due to strong order momentum.
• Sequential improvement in gross margin as product mix normalizes.

For full-year 2025, management raised guidance:

• Revenue of $715 to $735 million, reflecting 12.5% to 15.5% organic non-COVID growth.
• Gross margin of 52% to 53%, and adjusted EPS of $1.65 to $1.72.

Management cited:

• Portfolio strength in core franchises, particularly chromatography and filtration.
• Order and funnel growth as leading indicators for continued outperformance.

Takeaways

Repligen’s Q2 results validate its strategy of innovation-driven, diversified growth and disciplined margin expansion, positioning the company to consistently outpace bioprocessing market growth even as select modalities face headwinds.

• Order and Revenue Outperformance: Persistent order strength and broad-based franchise gains reinforce the company’s ability to capture share and sustain above-market growth.
• Margin and Productivity Levers: Operating leverage, disciplined OPEX, and productivity initiatives are translating top-line gains into margin expansion, with a multi-year path toward 30% EBITDA margin.
• Hardware-Consumable Flywheel: Capital equipment momentum is creating a durable pull-through opportunity, supporting recurring revenue and long-term visibility.

Conclusion

Repligen’s Q2 showcased robust execution across segments and regions, with order momentum and franchise innovation driving a guidance raise. While new modality volatility and trade dynamics require monitoring, the company’s diversified portfolio and operational discipline position it to deliver on its medium-term growth and margin ambitions.

Industry Read-Through

Repligen’s outperformance and raised outlook signal an ongoing recovery in bioprocessing demand, with hardware and consumables leading the rebound. The company’s ability to offset modality-specific headwinds with core portfolio strength and global expansion highlights the importance of diversification and innovation for sector peers. Capital equipment pull-through as a future growth lever is a key theme for other bioprocessing and life sciences tools players, while China’s rebound and tariff navigation will be closely watched for broader industry implications. Margin expansion through operating leverage and disciplined investment remains a critical differentiator as bioprocessing markets normalize and competitive intensity rises.

RGEN Healthcare Bioprocessing Consumables Capital Equipment Recurring Revenue Innovation Margin Expansion