Standard BioTools Turns to Profit After Illumina Cash Deal

The Tip Desk · November 10, 2026 · 4 min read

The life-science tools company reported $13.5 million of net income for the three months ended September 30, 2026, after a $30.0 million gain on a termination agreement with Illumina.

Standard BioTools Inc. (LAB) reported net income of $13.5 million for the three months ended September 30, 2026, reversing a $26.8 million net loss in the three months ended June 30, 2026.

The swing came from discontinued operations. Income from discontinued operations, net of tax, was $28.5 million in the third quarter, reflecting a $30.0 million gain on a Termination, Waiver and Release Agreement with Illumina, compared with a $5.2 million loss in the second quarter. On July 24, 2026, the company received $30.0 million in cash in exchange for waiving its right to a 2026 SomaScan earnout of up to $50.0 million and terminating royalty and license agreements entered at the January 2026 closing of the SomaScan sale.

Continuing operations still lost money. Loss from continuing operations narrowed to $19.8 million from $25.4 million in the prior quarter. Revenue was $19.4 million, down 1% year over year, after an 8% year-over-year decline in the three months ended June 30, 2026.

Instrument sales were the inflection. Instrument revenue rose 18% year over year to $6.0 million, reversing a 2% year-over-year decline in the second quarter. Consumables revenue fell 4% year over year to $8.3 million, after a 10% year-over-year decline. Services and other revenue declined 12% year over year to $5.1 million. The company said the total-revenue decrease was driven by the services and consumables declines, partially offset by the instruments increase.

Gross margin expanded to 55.9% from 52.4% in the second quarter. Gross profit rose 14% year over year to $10.8 million. The company attributed the increase primarily to favorable consumables pricing and lower warranty expenses, as well as lower excess and obsolete inventory and scrap charges, partially offset by an unfavorable instrument mix.

Cost cutting from 2025 restructuring continued to compress the operating expense base. Research and development expense was $2.1 million, down 67% year over year, after a 68% year-over-year decline in the second quarter, primarily from lower personnel-related costs. Selling, general and administrative expense was $16.8 million, down 37% year over year, after a 42% year-over-year decline, reflecting lower personnel-related costs, lower stock-based compensation, and lower professional fees, plus $0.5 million of Illumina transition-services reimbursements recorded as a reduction of SG&A. Restructuring and related charges fell to $2.1 million, down 78% year over year, after a 63% year-over-year increase in the second quarter, as 2025 workforce reductions were substantially completed.

Transaction and integration expenses were $9.6 million, primarily related to the Treeline merger, after $14.7 million in the second quarter. Interest income, net, was $4.9 million, up from $2.1 million a year earlier, which the company said was primarily attributable to higher money market fund and investment balances from SomaScan sale proceeds.

Cash, cash equivalents and investments were $559.4 million at September 30, 2026, up from $544.0 million at June 30, 2026. The company said it expects existing liquidity and sources of capital to be sufficient to support operations for at least the next 12 months from the filing date.

The Treeline all-stock merger remains the near-term path. The Hart-Scott-Rodino waiting period was terminated early on July 21, 2026, the Form S-4 was declared effective on October 21, 2026, and the merger is expected to close in the fourth quarter of 2026, with a stockholder vote scheduled for November 19, 2026. On September 30, 2026, the company terminated its agreement to sell the Mass Cytometry Business to Multiplex Bio, agreed to pay a $1.5 million termination fee ($1.0 million to be paid by GMT Venture), and agreed to sell that business to Element Biosystems for $5.5 million in cash, subject to stockholder approval and completion of the merger. On October 4, 2026, it agreed to sell its microfluidics business to ARCHIMED. Existing Standard BioTools stockholders are expected to hold approximately 16% of the combined company on a fully diluted basis.