Cytek Q3 Revenue Rises 2% as Gross Margin Reaches 59%

Cytek Biosciences reported modest revenue growth for the third quarter of 2026 as demand for high-end instruments and expanding service revenue offset lower overall product sales. Gross margin increased sharply, while higher legal expenses and weaker adjusted EBITDA underscored continued pressure on profitability.

Revenue for the quarter ended September 30 rose 2% year over year to $53.2 million and increased 11% sequentially. Product revenue declined to $37.2 million from $38.1 million a year earlier, but service revenue grew 13% to $16.1 million.

High-end full spectrum profiling instrument revenue increased 11%, led by the Aurora Evo platform. Placements of Aurora Evo instruments nearly doubled from a year earlier following the second-quarter launch of automation configurations, which the company said supported demand for larger panels and more reproducible data at higher throughput.

Recurring revenue, comprising service and reagent sales, rose 11% to $19.1 million. On a trailing-12-month basis, recurring revenue represented 36% of total revenue, compared with 33% a year earlier, supporting Cytek’s strategy of generating more sales from its installed instrument base.

Gross margin expands, but adjusted EBITDA declines

GAAP gross profit increased 13% to $31.2 million, while gross margin reached 59%, up 590 basis points from 53% in the prior-year quarter. Cytek described the result as its strongest third-quarter gross margin since 2023. Non-GAAP adjusted gross margin was 61%, compared with 55% a year earlier.

Operating expenses increased 8% to $39.6 million. Research and development expense rose 4% to $9.4 million, and sales and marketing expense increased 2% to $11.9 million. General and administrative expense climbed 14% to $18.4 million, primarily reflecting a $3 million increase in legal costs associated with active patent litigation.

The GAAP operating loss narrowed to $8.4 million from $9.2 million, but the net loss widened to $6.1 million from $5.5 million. Non-GAAP adjusted EBITDA declined to $0.7 million from $2.5 million. Excluding investment income, adjusted EBITDA was a loss of $0.5 million, compared with positive $0.5 million in the third quarter of 2025.

U.S. growth leads regional performance

U.S. revenue rose 12% year over year to $30.4 million, driven by high-end instrument demand and continued service growth. Revenue in Europe, the Middle East and Africa increased 1% to $12.5 million, marking a return to growth in the region, according to the presentation.

Asia-Pacific revenue, including China, totaled $8.3 million. While that was below the $11.1 million recorded a year earlier, it increased 5% sequentially from the second quarter of 2026 as instrument sales improved. Revenue from other markets rose to $2.1 million from $1.6 million.

Cytek also expanded its software and product-development initiatives during the quarter. The company launched Cytek Cloud Analysis, integrating panel design and data analysis in one platform, and said Cytek Cloud users approached 30,000, an increase of more than 20% since the start of the year. It also doubled the size of the Borealis early-access program, with customer feedback highlighting the use of panels supporting more than 60 colors in biopharma discovery and clinical research.

2026 revenue outlook maintained at midpoint

Cytek narrowed its full-year 2026 revenue guidance while reiterating the midpoint, forecasting revenue of $208 million to $211 million. The range represents expected year-over-year growth of 3% to 5% and assumes no change in current foreign-exchange rates.

The company’s stated priorities include expanding instrument penetration across multiple geographies, advancing its technology platform, and increasing reagent and service revenue from its global installed base. Cytek also said it remains focused on achieving sustainable, profitable long-term growth.

The outlook remains subject to risks including geopolitical and economic conditions, export controls and licensing requirements, tariffs, U.S. National Institutes of Health funding policies, foreign-exchange movements, competition, customer demand, product adoption, supply-chain concentration and the company’s ability to develop and manufacture new products. Active patent litigation is also contributing to elevated legal expenses.