Standard BioTools Inc. (LAB): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the new reality for Standard BioTools Inc. after the strategic SomaLogic divestiture, and frankly, understanding the remaining core business-the high-parameter cell analysis platforms-is key to assessing its near-term stability. Honestly, the focus now shifts to operational efficiency, supported by a strong cash position of $217.0 million as of September 30, 2025, while the company executes a restructuring plan. Looking at the Q3 2025 numbers, the recurring revenue from consumables, which hit $8.7 million, is now outpacing instrument sales of $5.1 million, all while maintaining a GAAP gross margin of 48.5%. This Business Model Canvas distills exactly how Standard BioTools Inc. is repositioning its proprietary CyTOF technology and managing its cost structure to fund R&D and potential inorganic growth; check below to see the full picture.

Standard BioTools Inc. (LAB) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Standard BioTools Inc. relies on to drive its business, especially after the major strategic realignment announced in mid-2025. These partnerships are crucial for delivering on their multi-omic strategy and achieving profitability, targeted for 2026.

Illumina, Inc. for the strategic sale of SomaLogic and ongoing proteomics collaboration

The partnership with Illumina, Inc. is currently dominated by the strategic sale of the SomaLogic business, including SomaScan® Assay Services, Authorized Sites, and KREX™. This transaction is designed to simplify the Standard BioTools operating structure and is expected to result in a cash & cash equivalents balance of at least $550 million at closing, which is anticipated in the first half of 2026.

Here are the hard numbers tied to that June 2025 agreement:

This deal is a significant financial pivot; for context, Standard BioTools reported revenue from continuing operations of only $19.6 million in the third quarter of 2025, and they are targeting full-year 2025 combined revenue between $165 million and $175 million.

Leading pharmaceutical and biotechnology companies for translational research

Standard BioTools Inc. supports translational and clinical oncology research through its proteomic portfolio, which is a key area of focus for pharmaceutical and biotech partners. The company's technology is being used to uncover predictive biomarkers and elucidate mechanism of action in cancer studies.

Evidence of this partnership activity includes:

• 90 scientific posters and presentations powered by the Standard BioTools proteomic portfolio at the AACR 2025 meeting.
• The SomaScan Select 3.7K Assay covers approximately 70% of FDA standard clinical biomarkers.
• The general SomaScan Assay measures approximately 10,000 proteins with high precision.

Academic and government research institutions for technology adoption

Academic and government institutions are key end-users for Standard BioTools Inc.'s platforms, which integrate microfluidics, mass cytometry, sequencing, and imaging. The company's strategy involves expanding access to its technology through these research hubs.

The company noted challenges in this segment, anticipating a high single-digit millions decline in Americas academic revenue for fiscal 2025 due to anticipated NIH funding pressures.

Contract Research Organizations (CROs) for outsourced services

CROs utilize Standard BioTools Inc.'s services, such as Lab Services, which involve performing the SomaScan® assay on customer samples to generate protein biomarker data. These services are sold at a fixed price per sample.

The company's Q3 2025 Field Services revenue decreased due to fewer active service contracts and lower on-demand revenue, which reflects the broader operational environment impacting service-based partnerships.

Finance: review the impact of the $40 million annualized cost savings from restructuring on the 2026 adjusted EBITDA target by next Tuesday.

Standard BioTools Inc. (LAB) - Canvas Business Model: Key Activities

You're looking at the core actions Standard BioTools Inc. is taking right now to manage its current state and fund its future growth, especially after that big move with Illumina. Honestly, the key activities are all about streamlining the present while setting up for acquisitions.

Manufacturing and distributing mass cytometry and microfluidics instruments.

The company's day-to-day involves getting its core hardware and the necessary consumables out the door. This is where the rubber meets the road for their existing customer base in translational and clinical research. You see the direct impact of the market environment in the instrument revenue, which for the third quarter of 2025 hit $5.1 million, a slight dip of 3% year-over-year.

The microfluidics and flow side, which feeds into consumables, is feeling the pinch from project funding declines. Consumables revenue specifically was $8.7 million in Q3 2025, down 17% from the prior year. Still, the imaging segment within instruments showed growth, which is a bright spot.

The technology itself is being pushed for scale. For instance, the CyTOF XT PRO system is engineered to deliver up to 4x faster throughput and better walk-away automation for large immunophenotyping initiatives. The Helios and Polaris systems remain central to their high-parameter immune profiling offerings.

Here's a quick look at the product revenue snapshot from Q3 2025:

Executing the operational restructuring plan for $40 million+ in annualized cost savings.

This is a major focus area to accelerate the path to profitability, targeted for 2026. In September 2025, Standard BioTools Inc. implemented a phased operational restructuring plan. This latest effort is expected to deliver over $40 million in total annualized cost savings, which should be fully realized in fiscal 2026.

The plan involved some tough calls, including an aggregate reduction-in-force of approximately 20% of its global workforce. To be fair, the company had already announced a prior restructuring in April 2024, targeting $45 million to $50 million in annualized savings for fiscal 2025. The Q3 2025 results show the immediate financial impact of these actions, with operating expenses including $9.4 million in restructuring and related charges. The goal is to keep the organization lean while driving productivity gains, partly through consolidating operations, like the planned move of the global headquarters to Boston.

The restructuring is designed to support the adjusted EBITDA breakeven target set for 2026.

Research and development (R&D) for next-generation life science tools.

Even while cutting costs, Standard BioTools Inc. must maintain its innovation pipeline, which centers on its proprietary technologies like mass cytometry and microfluidics. You see R&D spending being managed tightly, reflecting a more prioritized strategy and some deferrals of long-term projects.

For the first quarter of 2025, R&D operating expenses were reported at $11,328 thousand, with non-GAAP R&D expenses at $9,886 thousand. By the third quarter of 2025, R&D operating expenses had decreased by 8% to $6.35 million compared to the prior year. For the first half of 2025, non-GAAP R&D expenses totaled $10,101 thousand.

The focus remains on delivering solutions that empower researchers, such as the development of LyoMax CyTOF panels, which are lyophilized (dry format) assays for stability and speed in high-volume studies.

• R&D spending is being optimized following the SomaLogic merger review.
• The company is prioritizing core technology advancements like mass cytometry and spatial biology.
• The goal is to maintain a portfolio of essential, standardized next-generation technologies.

Strategic capital deployment for inorganic growth (M&A) post-Illumina transaction.

The key to future growth is the capital expected from the divestiture of SomaLogic assets to Illumina, which was announced in June 2025. This transaction is set to close in the first half of 2026, and it's a game-changer for their balance sheet.

As of September 30, 2025, the company held $217.0 million in cash and cash equivalents. The expectation is that the closing of the Illumina transaction will boost this to approximately $550 million in cash and cash equivalents. This significant cash injection is explicitly intended to fuel their inorganic growth strategy, meaning they are actively looking at strategic Mergers and Acquisitions (M&A) to expand their portfolio. Management has stated they are well positioned to execute this post-transaction.

Finance: draft 13-week cash view by Friday.

Standard BioTools Inc. (LAB) - Canvas Business Model: Key Resources

The Key Resources for Standard BioTools Inc. center on its patented technology foundation and its financial stability as of late 2025.

Proprietary mass cytometry (CyTOF) and microfluidics technology platforms represent the core of the Proteomics segment. The company's offerings include the CyTOF XT System, the Hyperion XTi imaging system for spatial biology, and the Biomark X9 for genomics. The CyTOF technology allows investigators to interrogate more than 50 markers simultaneously on millions of individual cells.

The platform capabilities are detailed below:

The company maintained a strong cash position of $217.0 million in cash & cash equivalents as of September 30, 2025. Furthermore, Standard BioTools Inc. expected approximately $550 million in cash & cash equivalents at the close of the transaction with Illumina, anticipated in the first half of 2026.

The Intellectual property (IP) portfolio in single-cell and spatial biology is anchored by the proprietary nature of its four core solutions:

• CyTOF: Inventor of high-multiplex single-cell proteomics, launched in 2008.
• Hyperion (IMC): Pioneer of spatial proteomics, introduced in 2014.
• SomaScan: Plasma proteomics platform.
• Biomark: Genomics and Multi-omics.

Regarding highly specialized scientific and engineering talent, the company has been actively optimizing its structure. In September 2025, Standard BioTools Inc. implemented a phased operational restructuring plan.

Key talent and operational data points include:

• The restructuring plan included an aggregate reduction-in-force of approximately 20% of its global workforce.
• The company had a headcount of 500 personnel at the end of 2023.
• Research and development teams are located in South San Francisco, California; Markham, Ontario, Canada; and Singapore.
• The company is on track to achieve positive adjusted EBITDA target in 2026.

Standard BioTools Inc. (LAB) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Standard BioTools Inc. is selling to its customer segments-researchers in academia, pharma, and biotech. The value is rooted in enabling deeper, more complex biological understanding through advanced instrumentation and assays.

High-parameter, single-cell analysis for deep biological insights (CyTOF XT)

The value proposition centers on providing high-resolution data that legacy methods can't match. The CyTOF XT system delivers automated high-parameter single-cell analysis using metal isotope-conjugated antibodies. While specific adoption rates aren't public, the instrument segment shows traction:

• Instruments revenue for the first quarter of 2025 was $7.8 million, up 24% year-over-year.
• Instruments revenue from continuing operations for the third quarter of 2025 was $5.1 million.

Reliable and repeatable results for complex translational and clinical research

Repeatability is key for moving research into clinical translation, and the company ties this to its overall operational discipline, which management refers to as the Standard BioTools Business System (SBS). The overall company financial health reflects the market environment for these high-value tools:

Spatial biology solutions (Hyperion XTi) for tissue imaging

The Hyperion XTi spatial biology instrument is a specific driver of the instrument revenue stream. This platform helps researchers visualize data directly within the tissue context. The growth here is notable:

• Instrument revenue in the first quarter of 2025 was driven by strong growth in the Hyperion XTi platform.
• Consumables revenue in the third quarter of 2025 saw growth in imaging, partially offsetting declines elsewhere.

Integrated proteomics solutions via the Illumina partnership

The proteomics offering, significantly bolstered by the SomaLogic assets, is positioned for accelerated access through the Illumina collaboration. The strategic financial move here is the divestiture of the majority of that business to secure capital for future focus:

• Standard BioTools announced the sale of SomaLogic to Illumina for an upfront cash payment of $350 million, with up to $75 million in milestone payments, totaling up to $425 million.
• The company expects to have at least $550 million in cash at the closing of the Illumina transaction in the first half of 2026.
• The Illumina Protein Prep product is noted as delivering groundbreaking precision in NGS proteomics for more than 40 customers.

The company is driving toward profitability, targeting adjusted EBITDA break-even in 2026.

Standard BioTools Inc. (LAB) - Canvas Business Model: Customer Relationships

You're looking at how Standard BioTools Inc. maintains its connections with its customer base as of late 2025. This is critical because, for a company selling complex instrument systems, the relationship doesn't end at the sale; it transitions into long-term service and recurring revenue streams.

The structure relies heavily on direct engagement, which you can see reflected in the service revenue components. For the third quarter of 2025, Services revenue, which is predominantly Field Services, clocked in at $5.8 million year-over-year. This revenue stream is directly tied to the installed base and the ongoing relationship with the customer for instrument upkeep.

Dedicated direct sales and field application specialist support is the backbone here. While we don't have a precise headcount for the field application specialists, the performance of the service segment gives us a clue about the existing contract health. Field Services revenue decreased by 9% year-over-year in Q3 2025. Management noted this was due to fewer active service contracts and lower on-demand revenue, which, interestingly, was partially driven by improved instrument quality and uptime. That uptime improvement is a double-edged sword: great for the customer, but it means less reactive service revenue for Standard BioTools Inc. in the short term.

For high-touch, consultative selling, especially for complex instrument systems, the focus shifts to large, strategic partnerships. The company serves top biopharmaceutical companies and leading academic research universities. A concrete example of a significant, high-touch engagement is the selection of their SomaScan 11K Assay by the PRECISE-SG100K biobank to run 100,000 samples. That kind of volume commitment requires deep, consultative support across the entire workflow.

Customer-funded projects and collaborations are a key part of the revenue mix, especially through Lab Services. For the first quarter of 2025, total Services revenue (Lab Services and Field Services) was $17.6 million, down 16% year-over-year. Lab services revenue, which is primarily generated by performing the SomaScan® assay on customer samples to generate data, is expected to increase over the long-term as they win new contracts and expand the scope with existing customers. This is where the consultative relationship turns into recurring, high-value service revenue.

Here's a quick look at the revenue composition from the first quarter of 2025 to show where these relationship-driven components fit within the total picture. Remember, the full-year 2025 combined revenue guidance is between $165 million and $175 million.

Long-term service contracts are the mechanism for ensuring instrument uptime, which is a core value proposition. However, the company is actively managing its cost structure, implementing a restructuring plan expected to deliver over $40 million in total annualized cost savings by 2026, which included a reduction-in-force of approximately 20% of its global workforce. This signals a pivot toward operational efficiency to support the remaining, high-value customer relationships.

Finance: draft 13-week cash view by Friday.

Standard BioTools Inc. (LAB) - Canvas Business Model: Channels

You're looking at how Standard BioTools Inc. gets its products and services into the hands of researchers, which is a mix of direct engagement and strategic alignment, especially given the recent corporate transformation. Honestly, the channel strategy is currently being reshaped by the announced divestiture of SomaLogic to Illumina, which is expected to close in the first half of 2026.

The direct engagement component relies heavily on specialized personnel. The company has been actively managing its team size; in September 2025, Standard BioTools implemented a phased operational restructuring that included an aggregate reduction-in-force of approximately 20% of its global workforce, which certainly impacts the scale of the direct sales and service teams. The company recognizes the necessity of a direct sales force that includes people with specific scientific backgrounds and expertise to handle their technically complex products.

Here's a look at the revenue generated through these channels for the third quarter of 2025, focusing on continuing operations, which reflects the core business post-SomaLogic announcement:

The Field Services team directly supports the installed base for installation, maintenance, and training. The revenue from this segment, which is mostly Field Services, was $5.8 million in the third quarter of 2025. The decrease in this revenue stream was attributed to fewer active service contracts and lower on-demand revenue, which management suggested was partly due to improved instrument quality and uptime.

For E-commerce and direct ordering, the data is aggregated under Consumables revenue, which was $8.7 million in Q3 2025. While the company uses direct ordering channels, specific statistical data separating e-commerce sales from other direct orders isn't explicitly broken out in the latest reports. Still, the overall consumables performance is a key indicator of this channel's activity.

Regarding Strategic Partner Channels, the most significant recent development involves Illumina. Standard BioTools agreed to sell SomaLogic to Illumina for an upfront cash payment of $350 million, with up to $75 million in earnout payments, and Standard BioTools retains a 2% royalty on net revenues from certain SOMAmer-based NGS library preparation kits for 10 years following the closing. This transaction simplifies the operating structure and positions Standard BioTools to focus on its core genomic profiling solutions, suggesting a future channel strategy that may lean more heavily on direct sales for its retained assets, while the Illumina partnership provides a specific, defined royalty stream from a major distribution network for the divested technology.

The company's full-year 2025 outlook for combined revenue is in the range of $165 million to $175 million, with revenue from continuing operations expected between $78 million to $83 million. This provides the context for the scale at which these channels are currently operating.

• Global direct sales force supports placement of instruments and consumables.
• Field services team handles installation, maintenance, and training, generating $5.8 million in Q3 2025 services revenue.
• Consumables, which include direct ordering, accounted for $8.7 million of Q3 2025 continuing operations revenue.
• Strategic partnership with Illumina is evolving, shifting from a subsidiary sale to a long-term royalty stream of 2% on specific kit sales for 10 years.

Standard BioTools Inc. (LAB) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Standard BioTools Inc. as of late 2025. The company serves a specialized Business-to-Business (B2B) clientele across the life science research sector, focusing on high-parameter, single-cell, and spatial biology solutions. The customer base is global, with sales and support operations across North America, Europe, and Asia. Standard BioTools has between 501-1000 Employees.

Pharmaceutical and biotechnology companies focused on drug discovery and development.

These organizations are major adopters of the company's platforms for drug discovery, development, and personalized medicine initiatives. They focus on high-throughput and complex applications, often leveraging proteomics, which is noted as the largest revenue contributor for Standard BioTools. The company's Hyperion XTi spatial proteomics platform drove instrument revenue growth of 24% year-over-year in Q1 2025, indicating strong engagement from this segment for advanced spatial biology tools. The focus here is on translating scientific discoveries into better patient outcomes using technologies like mass cytometry and microfluidics.

Academic and government research institutions, though facing NIH funding pressure.

Academic institutions and government research centers form a significant part of the customer base. However, this segment is clearly feeling the pinch of external financial constraints. Standard BioTools explicitly expects a high single-digit millions decline in Americas academic revenue for fiscal year 2025 due to anticipated NIH funding pressures. This pressure is reflected in the revenue trends; for instance, Q3 2025 revenue from continuing operations was $19.6 million, down 11% year-over-year, with lower consumables revenue reflecting project funding declines in certain areas. Still, the company maintains a strong cash position of $217.0 million as of September 30, 2025, which supports their strategy to fuel inorganic growth through M&A.

Clinical laboratories and cancer research centers (oncology/immunology focus).

This group leverages Standard BioTools' solutions for translational and clinical research, with specific emphasis on oncology, immunology, and immunotherapy. Product development, such as the CyTOF XT PRO system, is tailored for specific research needs in oncology. The company's platforms help researchers probe cellular heterogeneity and complex tissue architecture, which is critical for these clinical focus areas. You can see the mix of business across the latest reported quarter for continuing operations, which gives you a sense of the current operational scale:

The overall revenue from continuing operations in Q3 2025 was $19.6 million. The decline in Services revenue is partly attributed to improved instrument quality and uptime, meaning fewer service contracts and lower on-demand work.

Biobanks and population studies leveraging large-scale proteomics.

Biobanks and large-scale population studies are key users for high-throughput and complex multi-omics analyses, especially proteomics. The company's SomaScan technology, enhanced by the SomaLogic merger (though SomaLogic was later sold, the installed base and application focus remain), is central to this market. The consumables segment, which often reflects high-volume assay use typical in large studies, showed a decline in Q3 2025 of 17% year-over-year to $8.7 million in continuing operations. However, the imaging consumables line within this segment saw growth in Q3 2025, partially offsetting other declines. The overall strategy post-SomaLogic sale is to focus on attractive end markets like bioprocessing and clinical research, aiming for higher profit margins.

The company is executing a restructuring plan expected to deliver over $40 million in annualized cost savings, to be fully realized in 2026, which is a direct response to the current macro environment impacting customer spending. Finance: review the impact of the 20% workforce reduction on Q4 2025 operating expense projections by Wednesday.

Standard BioTools Inc. (LAB) - Canvas Business Model: Cost Structure

You're looking at the core expenses Standard BioTools Inc. faced as of late 2025, particularly after the strategic realignment following the SomaLogic sale announcement. The cost structure is heavily influenced by the nature of their high-tech offerings and recent efficiency drives.

High cost of goods sold (COGS) for complex instruments and consumables is a key driver. For the quarter ended September 30, 2025, the GAAP gross margin was reported at 48.5%, a notable drop from 54.9% in the third quarter of 2024. This margin compression was attributed to lower volume and product mix. Consumables revenue, which carries a significant COGS component, saw a sharp 17% year-over-year decline to $8.7 million in Q3 2025.

The company continues to bear significant R&D investment to maintain technology leadership. For continuing operations in the third quarter of 2025, non-GAAP Research & Development operating expenses were $5,631 thousand. While overall operating expenses rose, R&D expenses were noted as being lower, partially offsetting other increases due to the reclassification of SomaLogic and retained corporate costs.

Sales, General, and Administrative (SG&A) expenses form a substantial part of the operating spend. For Q3 2025 continuing operations, non-GAAP SG&A operating expenses totaled $26,595 thousand. Total GAAP Operating Expenses for the third quarter of 2025 were $42.4 million, an increase of 9% compared to the third quarter of 2024.

The financial impact of the restructuring charges related to the 20% global workforce reduction is clearly visible in the period's results. Operating expenses for Q3 2025 included $9.4 million in restructuring and related charges. This phased operational restructuring plan, implemented in September 2025, is expected to deliver over $40 million in total annualized cost savings, to be fully realized in 2026.

Here's a breakdown of the key operating expenses for Standard BioTools Inc. continuing operations for the three months ended September 30, 2025:

The restructuring initiative is directly tied to future cost management and the goal of achieving profitability:

• Targeted annualized cost savings from restructuring: over $40 million.
• Workforce reduction percentage: approximately 20% of global workforce.
• Expected realization of full savings: by 2026.
• Targeted profitability milestone: positive adjusted EBITDA in 2026.

The cost of servicing existing business also saw a change. Services revenue, mostly Field Services, decreased by 9% year-over-year to $5.8 million in Q3 2025, partly due to lower on-demand revenue driven by improved instrument quality and uptime.

Finance: draft 13-week cash view by Friday.

Standard BioTools Inc. (LAB) - Canvas Business Model: Revenue Streams

You're looking at how Standard BioTools Inc. actually brings in the money as of late 2025, specifically focusing on the revenue streams derived from continuing operations after the SomaLogic divestiture. Honestly, the picture is one of a business leaning heavily on recurring sales, even if the instrument side is showing some near-term softness.

For the third quarter ending September 30, 2025, the revenue mix from continuing operations clearly shows where the day-to-day cash is coming from. Consumables and reagents are the backbone here, representing the recurring revenue stream you want to see in a tools business. Still, instrument sales are a necessary component for future recurring revenue.

Here's the quick math on the Q3 2025 continuing operations revenue breakdown:

You can see the pressure points right there. Consumables revenue was down 17% year-over-year, which management tied to project funding declines in flow and microfluidics. That's a definite headwind you need to watch. Instruments, while down only 3%, still show capital markets are tight for new equipment purchases right now.

The Service and Other revenue, which is predominantly Field Services, totaled $5.8 million for the quarter. This stream also saw a decline, down 9% year-over-year, due to fewer active service contracts and lower on-demand revenue, though improved instrument quality and uptime helped temper that a bit.

Looking ahead for the full fiscal year 2025, management is maintaining its guidance based on these trends and the expected back-half seasonality. The expectation for revenue from continuing operations is set within a fairly narrow band:

• Full-Year 2025 Continuing Operations Revenue Guidance: $78 million to $83 million.
• This guidance is maintained despite macro dynamics, suggesting confidence in the cost-saving initiatives taking hold.

To be fair, the total combined company revenue guidance remains between $165 million and $175 million for the full year, but the continuing operations number is what reflects the core, post-divestiture business you are analyzing. If onboarding takes 14+ days, churn risk rises, especially in that services segment.

Finance: draft 13-week cash view by Friday.