Financial Analysis

Note 5. Debt and Other Financing Arrangements: On August 31, 2022, the Company entered into a revolving line-of-credit and term loan by a Credit Agreement (the Credit Agreement). The Credit Agreement provides for a revolving credit facility of $1 billion, which can be increased by an additional $400 million subject to certain conditions. Borrowings under the Credit Agreement may be used for working capital and expenditures of the Company and its subsidiaries, including financing permitted acquisitions. Borrowings under the Credit Agreement bear interest at a variable rate. The current outstanding debt is based on the one-month Secured Overnight Financing Rate (SOFR) plus an applicable margin. The applicable margin is determined from the total leverage ratio of the Company and updated on a quarterly basis. The annualized fee for any unused portion of the credit facility is currently 10 basis points. The Credit Agreement matures on August 31, 2027 and contains customary restrictive and financial covenants and customary events of default. As of December 31, 2025 and June 30, 2025, the outstanding balance under the Credit Agreement was $260.0 million and $346.0 million, respectively.

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Revenue by type is as follows (in thousands): Quarter Ended Six Months Ended December 31, December 31, 2025 2024 2025 2024 Consumables $ 235,443 $ 230,715 $ 467,044 $ 461,560 Instruments 29,605 30,868 51,431 57,074 Services 22,316 27,350 49,798 54,707 Total product and services revenue, net $ 287,364 $ 288,933 $ 568,273 $ 573,341 Royalty revenues 8,513 8,098 14,159 13,148 Total revenues, net $ 295,877 $ 297,031 $ 582,432 $ 586,489 …

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Note 9. Share-based Compensation : During the six months ended December 31, 2025 and 2024, the Company granted 0.9 million and 0.8 million stock options at weighted average grant prices of $53.93 and $74.65 and weighted average fair values of $19.13 and $25.43, respectively. During the six months ended December 31, 2025 and 2024, the Company granted 0.6 million and 0.5 million restricted stock units at a weighted average fair value of $53.65 and $74.96, respectively. During the six months ended December 31, 2025 and 2024, the Company granted 13,120 and 11,696 shares of restricted common stock shares at a weighted average fair value of $60.96 and $68.37, respectively. Stock options for 1.5 million and 0.8 million shares of common stock with total intrinsic values of $20.2 million and $28.3 million were exercised during the six months ended December 31, 2025 and 2024, respectively. Stock-based compensation expense, inclusive of payroll taxes, of $13.4 million and $14.5 million was included in Selling, general and administrative expenses for the quarter ended December 31, 2025 and 2024, respectively. Stock-based compensation expenses, inclusive of payroll taxes, of $25.0 million and $24.8 million was included in Selling, general, and administrative expenses for the six months ended December 31, 2025 and 2024, respectively. Additionally, the Company recognized $0.5 million and $0.4 million of stock-based compensation costs, inclusive of payroll taxes, in Cost of goods sold for th …

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Note 11. Income Taxes : The Companys effective income tax rate for the quarter ended December 31, 2025 and 2024 was 25.2% and 18.6%, respectively, of consolidated earnings before income taxes, inclusive of discrete items, and 22.9% and 17.5% for the six months ended December 31, 2025 and 2024, respectively. The change in the Companys tax rate for the quarter and six months ended December 31, 2025 compared to the quarter and six months ended December 31, 2024 was driven by discrete tax items. The Company recognized total net tax benefit related to discrete tax items of $0.3 million and $3.9 million during the quarter and six months ended December 31, 2025, respectively, compared to total net tax benefits of $2.2 million and $5.2 million during the quarter and six months ended December 31, 2024, respectively. Share-based compensation excess tax expense was $0.5 million in the quarter ended December 31, 2025 and was immaterial for the six months ended December 31, 2025, compared to a benefit of $1.0 million and $4.3 million in the quarter and six months ended December 31, 2024, respectively. The sale of Exosome Diagnostics contributed a tax benefit of $2.6 million during the six months ended December 31, 2025. There was no comparable activity in the quarter ended December 31, 2025 and fiscal 2025. During the quarter and six months ended December 31, 2025, the Company had total other discrete tax benefit of $0.8 million and $1.3 million, respectively. The Company recognized total …

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Note 6. Leases: As a lessee, the Company leases offices, labs, and manufacturing facilities, as well as vehicles, copiers, and other equipment. The Company determines whether a contract is a lease or contains a lease at inception date. Upon commencement date, operating lease right-of-use assets and liabilities are recognized based on the present value of lease payments over the lease term. The discount rate used to calculate present value is the Companys incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term and the economic environment of the applicable country or region. The Company recognizes operating lease expense on a straight-line basis over the lease term. Further, as part of our adoption of ASC 842, the Company also made the accounting policy elections to not capitalize short term leases (defined as a lease with a lease term that is less than 12 months) and to combine lease and non-lease components for all asset classes in determining the lease payments. The Condensed Consolidated Financial Statements include the following amounts related to operating leases where the Company is the lessee ($ in thousands): Quarter Ended Six Months Ended December, 31 December, 31 2025 2024 2025 2024 Condensed Consolidated Statements of Earnings Fixed operating lease expense $ 4,401 $ 4,345 $ 8,810 $ 8,723 Variable operating lease expense 1,171 1,319 2,497 2,581 …

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Recently Adopted Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280) , which requires incremental disclosures on reportable segments, primarily through enhanced disclosures on significant segment expenses. The Company adopted this guidance beginning with our annual report for fiscal 2025 and interim periods thereafter on a retrospective basis. Relevant New Standards Issued Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740) , which requires incremental annual disclosures on income taxes, including rate reconciliations, income taxes paid, and other disclosures. The Company will adopt this guidance beginning with our annual report for fiscal 2026. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) , which requires incremental disclosures on purchases of inventory, employee compensation, depreciation, intangible asset amortization, and other expenses. The Company will adopt this guidance beginning with our annual report for fiscal 2028. This accounting standard will increase disclosures in the Companys annual reporting but will have no impact on reported income statement expenses. In August 2025, the FASB issued ASU 2025-0 …

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Note 13. Restructuring : Fiscal 2025 Restructuring Actions: During the fourth quarter of fiscal 2025, management engaged in a series of restructuring activities to optimize components of our global manufacturing processes. These activities included adjusting manufacturing locations and protocols of certain products to better align with geographical and customer demand. The Company is expecting to incur costs related to these actions through fiscal 2027, which will be recorded when specified criteria are met. As part of these actions, certain assets and liabilities associated with the Exosome Diagnostics business were classified as held-for-sale, including $4.5 million of goodwill allocated on a relative fair value basis at June 30, 2025. As a result of an impairment test performed during fiscal 2025, a cumulative impairment charge of $83.1 million was recorded. During the quarter ended September 30, 2025, the Company entered into an agreement with a buyer to purchase the Exosome Diagnostics business for approximately $15.0 million, with approximately $6.8 million in stock received at closing. Additionally, we recognized a recovery of assets held-for-sale of $6.8 million during the quarter ended September 30, 2025 recorded within Selling, general, and administrative on the Condensed Consolidated Statements of Earnings. As part of the agreement, the Company and the buyer entered into a promissory note that will mature in September 2029 that requires the buyer to pay four annual …

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"Note 2. Revenue Recognition : Consumables revenues consist of specialized proteins, immunoassays, antibodies, reagents, blood chemistry and blood gas quality controls, and hematology instrument controls that are typically single-use products recognized at a point in time following the transfer of control of such products to the customer, which generally occurs upon shipment. Instruments revenues typically consist of longer-lived assets that, for the substantial majority of sales, are recognized at a point in time in a manner similar to consumables. Service revenues consist of extended warranty contracts, post contract support, and custom development projects that are recognized over time as either the customers receive and consume the benefits of such services simultaneously or the underlying asset being developed has no alternative use for the Company at contract inception and the Company has an enforceable right to payment for the portion of the performance completed. Service revenues also include laboratory services recognized at point in time. We recognize royalty revenues in the period the sales occur using third party evidence. The Company elected the ""right to invoice"" practical expedient based on the Company's right to invoice a customer at an amount that approximates the value to the customer and the performance completed to date. The Company elected the exemption to not disclose the unfulfilled performance obligations for contracts with an original length of one …

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Note 12. Segment Information: The Company's management evaluates segment operating performance based on operating income before certain charges to cost of sales and selling, general and administrative expenses, principally associated with the impact of partially-owned consolidated subsidiaries as well as acquisition accounting related to inventory, amortization of acquisition-related intangible assets and other acquisition-related expenses. The Protein Sciences and Diagnostics and Spatial Biology segments both include consumables, instruments, services and royalty revenue. The following is financial information relating to the Company's reportable segments (in thousands): For the Quarter Ended December 31, 2025 Protein Sciences Diagnostics and Spatial Biology Total Net sales $ 215,084 $ 81,180 $ 296,264 Intersegment (387) Consolidated net sales $ 295,877 Segment operating income Cost of sales 57,030 36,471 Selling, general and administrative 58,993 27,597 Research and development 14,446 8,680 Segment operating income $ 84,615 $ 8,432 $ 93,047 Unallocated amounts Amortization of intangibles (15,379) Acquisition related expenses and other (2,093) Certain litigation charges (2,140) Stock based compensation, inclusive of employer taxes (14,198) Restructuring and restructuring-related costs (3,739) Corporate general, selling, and administrative expenses (1,037) Consolidated operating income $ 54,461 For the Quarter Ended December 31, 2024 Protein Sciences Diagnostics and Spatial B …

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Note 14. Subsequent Events: None.

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