Repligen's adjusted earnings exclude a recurring inventory cost, has an unremediated material weakness in its inventory accounting, days inventory on hand is extending, and keeps a one-time FX gain unrelated to operations.

Inventory bought and not sold is a normal cost of operating. Across FY2024 and FY2023, RGEN wrote off inventory, classified it within restructuring and excluded from the adjusted measures.

In FY2024 the gap is visible in the adjusted gross margin line: the inventory write-off in FY2024 — about $36M of the restructuring charge in COGS — lifted gross margin by roughly 570bps, from a GAAP 43.3% to 49%.

The footnote attributes the write-offs to discontinued products, pandemic-era over-buying, and demand forecasts revised by new leadership — operating judgments, by the filing's own account.