Core Viewpoint - CryoPort, Inc. (CYRX) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to significant buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, CryoPort is expected to earn -$0.82 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 25.7% over the past three months [8]. - The upgrade to Zacks Rank 2 places CryoPort in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10].

Core Insights - Cryoport, Inc. has completed the divestiture of its specialty courier business, CRYOPDP, to DHL Group for approximately $200 million in cash [1][4] - A strategic partnership has been established between Cryoport and DHL to enhance supply chain services in the global life sciences and healthcare sector [2][3] Financial Impact - The divestiture provides a significant capital infusion, improving Cryoport's growth trajectory and positioning the company for sustainable, long-term profitability [4] Strategic Focus - The partnership with DHL is expected to enhance Cryoport's capabilities in the Asia Pacific and EMEA regions, allowing for targeted services in response to market demand [3] - Cryoport aims to intensify its focus on advancing its Life Science Services platform, particularly in the regenerative medicine market [3] Company Overview - Cryoport is a leader in temperature-controlled supply chain solutions for the life sciences, emphasizing regenerative medicine [5] - The company offers a comprehensive suite of services designed to minimize risk and maximize reliability across the temperature-controlled supply chain [5]

Core Viewpoint - CryoPort, Inc. (CYRX) has seen a 7.3% increase in share price over the past four weeks, closing at $6.03, with a potential upside indicated by Wall Street analysts' mean price target of $10.94, suggesting an 81.4% increase [1][11]. Price Targets and Analyst Estimates - The mean estimate consists of nine short-term price targets with a standard deviation of $3.05, indicating variability among analysts; the lowest estimate is $6.50 (7.8% increase), while the highest is $15 (148.8% increase) [2][9]. - Analysts' consensus on price targets is often questioned, as they may not accurately reflect future stock prices; empirical research suggests that price targets can mislead investors [3][7]. - Despite skepticism around price targets, a low standard deviation among estimates indicates strong agreement among analysts regarding the stock's price direction [9][10]. Earnings Estimates and Market Sentiment - Analysts are optimistic about CYRX's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlate with stock price movements [4][11]. - The Zacks Consensus Estimate for the current year has risen by 20.8% over the past month, with four estimates increasing and no negative revisions [12]. - CYRX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for near-term upside [13].

Group 1 - CryoPort, Inc. (CYRX) shares have increased by 22.5% in the past four weeks, closing at $7.07, with a mean price target of $10.94 indicating a potential upside of 54.7% [1] - The average price targets from analysts range from a low of $6.50 to a high of $15, with a standard deviation of $3.05, suggesting variability in estimates [2] - Analysts are optimistic about CYRX's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which has shown a strong correlation with stock price movements [4][11] Group 2 - The Zacks Consensus Estimate for CYRX's current year earnings has increased by 23.2% over the past month, with four estimates revised upward and no negative revisions [12] - CYRX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While price targets may not be entirely reliable, the direction they imply can serve as a useful guide for potential price movements [10][13]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section covers the company's unaudited financial statements, management's discussion, market risk, and internal controls [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) This section presents Cryoport's unaudited condensed consolidated financial statements, including CRYOPDP reclassification and reduced net loss [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets at **$699.8 million**, reflecting CRYOPDP reclassification, stable liabilities, and slight equity decrease Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited, in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $36,102 | $34,137 | | Total current assets | $411,276 | $341,572 | | Current assets held for sale | $108,090 | $36,251 | | Total assets | $699,844 | $703,493 | | **Liabilities & Equity** | | | | Total current liabilities | $74,030 | $64,563 | | Total liabilities | $301,033 | $301,595 | | Total stockholders' equity | $398,811 | $401,898 | | Total liabilities and stockholders' equity | $699,844 | $703,493 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue from continuing operations increased **10.1%** to **$41.0 million**, with improved gross margin and reduced net loss Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Total revenue | $41,040 | $37,291 | | Gross margin | $18,641 | $15,065 | | Loss from operations | $(9,484) | $(17,508) | | Loss from continuing operations | $(9,028) | $(15,035) | | Net loss | $(11,981) | $(18,895) | | Net loss attributable to common stockholders | $(13,981) | $(20,895) | | Net loss per share - basic and diluted | $(0.28) | $(0.43) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$4.3 million**, with investing activities providing **$5.9 million**, leading to a net cash increase Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,342) | $(3,265) | | Net cash provided by investing activities | $5,922 | $6,445 | | Net cash (used in) provided by financing activities | $(189) | $512 | | Net change in cash and cash equivalents | $2,072 | $3,317 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, the **$195 million** CRYOPDP divestiture, revenue disaggregation, and segment performance - On March 31, 2025, Cryoport entered a definitive agreement to divest its CRYOPDP specialty courier business to DHL for a total enterprise value of **$195 million**. The transaction is expected to close in Q2 or Q3 2025[23](index=23&type=chunk)[48](index=48&type=chunk) - The CRYOPDP business has been classified as discontinued operations. Its assets and liabilities are now presented as 'held for sale' on the balance sheet, and its results are reported separately from continuing operations[24](index=24&type=chunk)[26](index=26&type=chunk)[49](index=49&type=chunk) Revenue from Continuing Operations by Geography (in thousands) | Region | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Americas | $32,195 | $26,690 | | EMEA | $5,580 | $7,400 | | APAC | $3,265 | $3,201 | | **Total** | **$41,040** | **$37,291** | Segment Adjusted EBITDA (in thousands) | Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Life Sciences Services | $(2,484) | $(4,940) | | Life Sciences Products | $3,510 | $2,123 | | **Total Segment Adjusted EBITDA** | **$1,026** | **$(2,817)** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, highlighting revenue growth, improved gross margin, and the strategic CRYOPDP divestiture [Overview](index=39&type=section&id=MD%26A%20Overview) Cryoport, a life sciences supply chain leader, supported **711 clinical trials** and **19 commercial therapies**, strategically divesting CRYOPDP - As of March 31, 2025, Cryoport supported **711 clinical trials** globally, an increase from 675 at March 31, 2024. Of these, **79 were in Phase 3**[116](index=116&type=chunk)[122](index=122&type=chunk) - The company supports **19 commercial therapies**, anticipating that approved therapies will become significant revenue drivers[116](index=116&type=chunk) - The divestiture of CRYOPDP and strategic partnership with DHL is expected to enhance the company's ability to develop its business, particularly in the EMEA and APAC regions[118](index=118&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Total revenue from continuing operations grew **10.1%** to **$41.0 million**, driven by Life Sciences Services growth and improved gross margin Revenue from Continuing Operations by Segment (in thousands) | Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Life Sciences Services | $22,865 | $19,485 | $3,380 | 17.3% | | Life Sciences Products | $18,175 | $17,806 | $369 | 2.1% | | **Total revenue** | **$41,040** | **$37,291** | **$3,749** | **10.1%** | - The increase in Life Sciences Services revenue was driven by year-over-year growth in BioStorage/BioServices (**22.8%**) and Commercial Cell & Gene therapy revenue (**32.9%**)[122](index=122&type=chunk) - Overall gross margin improved to **45.4%** in Q1 2025 from 40.4% in Q1 2024[124](index=124&type=chunk) - SG&A expenses decreased by **$3.6 million** (**13.0%**), mainly due to a **$5.2 million** decrease in contingent consideration, offset by **$2.4 million** in costs related to the CRYOPDP divestiture[128](index=128&type=chunk) [Non-GAAP Financial Measures](index=44&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA from continuing operations improved to a loss of **$2.8 million**, with a minor negative FX impact on revenue Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | GAAP loss from continuing operations | $(9,028) | $(15,035) | | **Adjusted EBITDA from continuing operations** | **$(2,819)** | **$(6,657)** | - For the three months ended March 31, 2025, revenue would have been **$0.3 million** higher on a constant currency basis, representing a **-0.7% FX impact**[143](index=143&type=chunk)[146](index=146&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$36.1 million** in cash and **$207.9 million** in short-term investments, sufficient for future operations - As of March 31, 2025, the company had cash and cash equivalents of **$36.1 million** and short-term investments of **$207.9 million**[148](index=148&type=chunk) - Net cash used in operating activities for Q1 2025 was **$4.3 million**[150](index=150&type=chunk)[151](index=151&type=chunk) - As of March 31, 2025, approximately **$73.9 million** of repurchase authorization remains available under the company's repurchase programs[89](index=89&type=chunk)[158](index=158&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's market risk exposure, primarily from interest rate and foreign currency fluctuations - The company's primary market risks are interest rate changes affecting its debt and investment portfolio, and foreign currency fluctuations from international operations[160](index=160&type=chunk) - A hypothetical 10% adverse change in foreign exchange rates would result in a **$2.3 million** decline in the value of foreign-denominated cash and a **$3.5 million** loss related to long-term intercompany loans[163](index=163&type=chunk)[164](index=164&type=chunk) [Controls and Procedures](index=50&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[166](index=166&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025[169](index=169&type=chunk) [PART II. OTHER INFORMATION](index=52&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section details legal proceedings, risk factors, equity security sales, and lists filed exhibits [Legal Proceedings](index=52&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not aware of any legal proceedings materially affecting its business or financial condition - The company is not aware of any legal proceedings that would have a material adverse effect on its business[170](index=170&type=chunk) [Risk Factors](index=52&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers readers to detailed risk factors in the company's latest Annual Report on Form 10-K - For a detailed discussion of risk factors, the report refers to the company's 2024 Annual Report on Form 10-K[171](index=171&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales or issuer purchases of equity securities occurred during the quarter - No unregistered sales of equity securities occurred during the quarter ended March 31, 2025[172](index=172&type=chunk) - No issuer purchases of equity securities were made during the quarter[173](index=173&type=chunk) [Exhibits](index=53&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the CRYOPDP divestiture agreement and certifications

Financial Performance - CryoPort, Inc. reported a quarterly loss of $0.22 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.23, and an improvement from a loss of $0.43 per share a year ago, indicating an earnings surprise of 4.35% [1] - The company posted revenues of $41.04 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.91%, but down from $54.59 million in the same quarter last year [2] - Over the last four quarters, CryoPort has exceeded consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - CryoPort shares have declined approximately 28.8% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.22 on revenues of $41.95 million, and for the current fiscal year, it is -$0.84 on revenues of $168.12 million [7] Industry Context - The Transportation - Services industry, to which CryoPort belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact CryoPort's stock performance [5][6]

Financial Data and Key Metrics Changes - Cryoport reported $41 million in revenue from continuing operations for Q1 2025, representing a 10% year-over-year growth and contributing to significant adjusted EBITDA improvement [10] - The company confirmed its revenue guidance for fiscal year 2025 in the range of $165 million to $172 million, indicating a 7.5% growth compared to fiscal year 2024 [13] Business Line Data and Key Metrics Changes - Life sciences services revenue increased by 17% year-over-year, driven by a 33% growth in support for commercial cell and gene therapies [10] - Life sciences services now account for 56% of total revenue, reflecting the increasing development and commercialization of cell and gene therapies [10] - The life sciences products business showed a 2% year-over-year growth, indicating demand stabilization [12] Market Data and Key Metrics Changes - Cryoport supported 19 commercial therapies and 711 clinical trials as of March 31, representing approximately 70% of cell and gene therapy trials [11] - The company anticipates up to 17 additional application filings and four therapy approvals for the remainder of 2025, indicating a robust pipeline [11] Company Strategy and Development Direction - The strategic partnership with DHL, involving the sale of Cryo PDP for an enterprise value of $195 million, is expected to enhance Cryoport's positioning in Asia Pacific and EMEA [12][13] - The partnership aims to leverage DHL's global scale and capabilities, allowing Cryoport to sharpen its focus on core life sciences service offerings in the regenerative medicine space [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth forecast despite potential tariff impacts, stating that they have taken steps to diversify the supply chain [14][15] - The company does not expect tariffs to significantly impact core support for clinical trials or commercial therapies [15] - Management remains optimistic about the commercial revenue ramp-up and the maturation of commercial therapies [44] Other Important Information - The company reported a significant increase in service gross margins year-over-year, with expectations for continued margin improvements [34] - The onboarding process for EntegraCell is progressing smoothly, with multiple commercial contracts already in place [65] Q&A Session Summary Question: Update on the launch of Entegrisel and client adoption - Management sees the market positively, with commercial revenue continuing to ramp and growth in clinical trials [20] Question: Contingent consideration impact on adjusted EBITDA - Management clarified that contingent consideration was backed out, and adjusted EBITDA improved significantly compared to Q1 of the previous year [29] Question: Response to potential tariffs and macro environment - Management indicated no significant tariff impact on cell and gene therapy, with continued commercial revenue growth [41][42] Question: Supply chain initiatives and margin improvements - Management stated that while they cannot quantify the impact of supply chain initiatives on margins, they expect strong gross margins to continue [54] Question: Impact of the new FDA director on therapy modalities - Management expressed optimism about the new FDA director's qualifications and the continued interest in cell and gene therapy [56] Question: Demand for new product launches - Management reported positive reception and ongoing adoption for new products, with expectations for substantial contributions in the future [62]

Financial Data and Key Metrics Changes - Cryoport reported $41 million in revenue from continuing operations for Q1 2025, representing a 10% year-over-year growth, contributing to significant adjusted EBITDA improvement [8] - The company confirmed its revenue guidance for fiscal year 2025 in the range of $165 million to $172 million, indicating a 7.5% growth relative to fiscal year 2024 [12][14] Business Line Data and Key Metrics Changes - Life sciences services revenue increased by 17% year-over-year, driven by a 33% growth in support for commercial cell and gene therapies [9][87] - Life sciences services now account for 56% of total revenue, reflecting the increasing development and commercialization of cell and gene therapies [9] Market Data and Key Metrics Changes - Cryoport supported 19 commercial therapies and 711 clinical trials as of March 31, representing approximately 70% of cell and gene therapy trials [10] - The company anticipates up to 17 additional application filings and four therapy approvals for the remainder of 2025, indicating a robust pipeline [11] Company Strategy and Development Direction - The strategic partnership with DHL, involving the sale of Cryo PDP for an enterprise value of $195 million, is expected to enhance Cryoport's positioning in Asia Pacific and EMEA [12] - The partnership aims to leverage DHL's global scale and capabilities, allowing Cryoport to sharpen its focus on core life sciences service offerings in the regenerative medicine space [12][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth forecast despite potential tariff impacts, stating that they have taken steps to diversify the supply chain [13] - The overall market for cell and gene therapies is viewed positively, with expectations of continued commercial revenue growth and a robust pipeline of therapies [19][20] Other Important Information - The company reported a significant increase in service gross margins, with expectations for continued expansion throughout 2025 [33] - Management noted that the new FDA director's conservative views are not expected to negatively impact the cell and gene therapy sector, emphasizing the importance of data in regulatory decisions [57][60] Q&A Session Summary Question: Update on Entegrisel launch and CGP trial growth - Management sees a positive market outlook with continued growth in commercial therapies and clinical trials, indicating a robust pipeline [19][20] Question: Contingent consideration impact on adjusted EBITDA - Management clarified that contingent consideration was backed out, and adjusted EBITDA improved significantly compared to Q1 of the previous year [28] Question: Steps to bolster shareholder value post-divestiture - Management plans to be prudent and opportunistic with cash allocation, considering stock buybacks due to undervaluation [29][30] Question: Service gross margins expansion - Management confirmed a significant increase in service gross margins and expects continued leverage from core services [33] Question: Performance of small vs. large pharma - Management reported balanced contributions from both biotech and large pharma, with a robust pipeline and continued interest in promising therapies [37] Question: Response to macroeconomic pressures and tariffs - Management indicated minimal impact from tariffs on cell and gene therapy, with ongoing commercial revenue growth [41][42] Question: Supply chain initiatives and margin improvement - Management emphasized that supply chain initiatives aim to protect margins rather than quantify specific improvements [55] Question: Impact of new FDA director on therapy approvals - Management expressed optimism regarding the new FDA director's qualifications and the continued progress of cell and gene therapies [57][60] Question: Demand for new product launches - Management reported positive reception and ongoing adoption of new products, with expectations for meaningful revenue contributions in the future [67]

[CEO Commentary and Business Highlights](index=1&type=section&id=CEO%20Commentary%20and%20Business%20Highlights) Cryoport started 2025 strongly with 10% revenue growth and improved adjusted EBITDA, driven by stabilizing demand and strategic partnerships - Revenue from continuing operations reached **$41.0 million**, growing **10% year-over-year**[3](index=3&type=chunk)[4](index=4&type=chunk)[7](index=7&type=chunk) - Commercial Cell & Gene Therapy revenue increased **33%** to **$7.2 million**[3](index=3&type=chunk)[4](index=4&type=chunk)[7](index=7&type=chunk) - The company supported **711 global clinical trials**, a net increase of **36 trials**[3](index=3&type=chunk)[4](index=4&type=chunk)[7](index=7&type=chunk) Key Financial and Operational Metrics | Metric | Q1 2025 Value | YoY Growth | | :--- | :--- | :--- | | Revenue from Continuing Operations | $41.0 million | 10% | | Commercial Cell & Gene Therapy Revenue | $7.2 million | 33% | | Global Clinical Trials Supported | 711 | +36 trials | - The company is seeing signs of demand stabilization in its Life Sciences Products business and new momentum in its Life Sciences Services business, which accounted for **56% of total revenue**[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) - A strategic partnership with DHL Group was announced, which includes the anticipated acquisition of CRYOPDP by DHL, expected to enhance operational reach in APAC and EMEA and allow Cryoport to focus on the regenerative medicine space[6](index=6&type=chunk)[12](index=12&type=chunk) - The company is advancing key initiatives like the IntegriCell™ Cryopreservation Solution and completing its Global Supply Chain Centers to diversify revenue streams[8](index=8&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Q1 2025 saw solid top-line growth, significant margin improvement, and a strengthened financial position, driven by Life Sciences Services [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Q1 2025 total revenue from continuing operations grew 10.1% to $41.0 million, primarily led by Life Sciences Services Revenue from Continuing Operations | Revenue from Continuing Operations (in thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Life Sciences Services | $22,865 | $19,485 | 17% | | - BioLogistics Solutions | $18,531 | $15,957 | 16% | | - BioStorage/BioServices | $4,334 | $3,528 | 23% | | Life Sciences Products | $18,175 | $17,806 | 2% | | **Total Revenue** | **$41,040** | **$37,291** | **10%** | - Revenue from the support of commercial Cell & Gene therapies increased by **33% year-over-year** to **$7.2 million**[4](index=4&type=chunk)[7](index=7&type=chunk)[10](index=10&type=chunk) [Profitability and Margins](index=4&type=section&id=Profitability%20and%20Margins) Q1 2025 profitability improved significantly, with gross margin expanding to 45.4% and net loss narrowing due to decreased operating expenses Gross Margin from Continuing Operations | Gross Margin from Continuing Operations | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Life Sciences Services | 47.9% | 43.5% | | Life Sciences Products | 42.3% | 37.0% | | **Total Gross Margin** | **45.4%** | **40.4%** | Key Profitability Metrics | Profitability Metric (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Loss from Operations | $(9.5) | $(17.5) | | Net Loss | $(12.0) | $(18.9) | | Adjusted EBITDA | $(2.8) | $(6.7) | - Operating costs and expenses from continuing operations decreased by **13.7% year-over-year** to **$28.1 million**[14](index=14&type=chunk) [Financial Position](index=4&type=section&id=Financial%20Position) Cryoport maintained a strong financial position as of March 31, 2025, with $244.0 million in cash and $73.9 million available for share repurchases - The company held **$244.0 million** in cash, cash equivalents, and short-term investments as of March 31, 2025[16](index=16&type=chunk) Balance Sheet Highlights | Balance Sheet Highlights (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $411,276 | $341,572 | | Total assets | $699,844 | $703,493 | | Total current liabilities | $74,030 | $64,563 | | Total liabilities | $301,033 | $301,595 | | Total stockholders' equity | $398,811 | $401,898 | - As of March 31, 2025, **$73.9 million** remains available for repurchase under the company's two share repurchase programs[17](index=17&type=chunk) [Business and Operational Review](index=2&type=section&id=Business%20and%20Operational%20Review) Cryoport showed strong operational momentum, supporting 711 clinical trials and 19 commercial therapies, with Life Sciences Services driving growth [Clinical Trial Progress](index=3&type=section&id=Clinical%20Trial%20Progress) Cryoport's clinical trial support remains robust, with 711 global trials, including 79 in Phase 3, and anticipates significant regulatory milestones in 2025 Clinical Trials by Phase | Clinical Trials by Phase | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Phase 1 | 304 | 286 | | Phase 2 | 328 | 312 | | Phase 3 | 79 | 77 | | **Total** | **711** | **675** | - The majority of trials are in the **Americas (544)**, followed by **EMEA (118)** and **APAC (49)**[11](index=11&type=chunk) - For the remainder of 2025, the company anticipates up to **17 additional application filings**, **4 new therapy approvals**, and **4 approvals for label/geographic expansions** for its clients[11](index=11&type=chunk) [Strategic Initiatives and Outlook](index=1&type=section&id=Strategic%20Initiatives%20and%20Outlook) Cryoport is executing strategic initiatives, including the DHL partnership and CRYOPDP divestiture, to focus on regenerative medicine and achieve positive adjusted EBITDA in 2025 [DHL Partnership and CRYOPDP Divestiture](index=1&type=section&id=DHL%20Partnership%20and%20CRYOPDP%20Divestiture) The DHL partnership and CRYOPDP divestiture will enhance global reach, provide capital, and sharpen Cryoport's focus on regenerative medicine - The partnership with DHL is expected to enhance the company's operational reach, especially in the **EMEA** and **APAC** regions, and reshape its competitive profile[6](index=6&type=chunk)[12](index=12&type=chunk) - The divestiture will provide a strong infusion of capital and allows the company to sharpen its organizational focus on the rapidly growing regenerative medicine space[6](index=6&type=chunk) - The transaction is subject to customary closing conditions and is expected to close in the **second or third quarter of 2025**[6](index=6&type=chunk)[12](index=12&type=chunk) [Fiscal 2025 Guidance](index=6&type=section&id=Fiscal%202025%20Guidance) Cryoport reiterates full-year 2025 guidance, projecting $165.0M-$172.0M organic revenue and a return to positive adjusted EBITDA during the year Fiscal Year 2025 Guidance | Fiscal Year 2025 Guidance | Range | YoY Growth | | :--- | :--- | :--- | | Total Organic Revenue | $165.0M - $172.0M | 5% - 10% | - The company remains confident that its current momentum and strategic actions will lead to a return to **positive adjusted EBITDA during 2025**[8](index=8&type=chunk) [Appendix](index=6&type=section&id=Appendix) This appendix provides supplementary information, including conference call details and non-GAAP financial measure reconciliations [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) The company provides GAAP to non-GAAP reconciliations, showing Q1 2025 adjusted EBITDA loss of $2.8 million from a GAAP loss of $9.0 million Reconciliation to Adjusted EBITDA | Reconciliation to Adjusted EBITDA (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP loss from continuing operations** | **$(9,028)** | **$(15,035)** | | Depreciation and amortization expense | $6,134 | $5,747 | | Stock-based compensation expense | $3,064 | $4,666 | | Change in fair value of contingent consideration | $(5,178) | $293 | | Divestiture costs | $2,290 | $— | | Other adjustments (net) | $(181) | $(1,928) | | **Adjusted EBITDA from continuing operations** | **$(2,819)** | **$(6,657)** | - Adjusted EBITDA is used by management to assess operating results and for incentive compensation programs, excluding items like interest, taxes, depreciation, amortization, stock-based compensation, and other non-recurring or non-cash items[34](index=34&type=chunk)[35](index=35&type=chunk) [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) Cryoport held a conference call on May 7, 2025, at 5:00 p.m. ET for investors to discuss Q1 2025 results - A conference call for investors was held on Wednesday, **May 7, 2025, at 5:00 p.m. ET**[23](index=23&type=chunk)[24](index=24&type=chunk) - A live webcast and a replay of the call are available in the 'Investor Relations' section of the company's website[24](index=24&type=chunk)

Core Viewpoint - Cryoport, Inc. reported a strong start to 2025 with a revenue of $41.0 million for Q1, reflecting a 10% year-over-year growth, and expressed optimism for the full year due to stabilizing order patterns and increased engagement in its Life Sciences Services segment [2][6][19]. Financial Performance - Total revenue from continuing operations for Q1 2025 was $41.0 million, up from $37.3 million in Q1 2024, marking a 10.1% increase [14]. - Life Sciences Services revenue, which constituted 56% of total revenue, reached $22.9 million, a 17.3% increase year-over-year [14]. - Life Sciences Products revenue, representing 44% of total revenue, was $18.2 million, showing a 2.1% increase compared to the previous year [14]. - Adjusted EBITDA for Q1 2025 was a negative $2.8 million, an improvement from a negative $6.7 million in Q1 2024 [16][38]. - The net loss for Q1 2025 was $12.0 million, compared to a net loss of $18.9 million in Q1 2024 [24]. Business Segments - Revenue from commercial Cell & Gene therapies increased by 33% year-over-year, totaling $7.2 million [8][9]. - Life Sciences Services revenue increased by 17% year-over-year, driven by the development and commercialization of Cell & Gene-based therapies [3][9]. - BioStorage/BioServices revenue grew by 23% year-over-year, indicating strong demand for these services [7]. Strategic Developments - Cryoport announced a strategic partnership with DHL Group, which includes the anticipated acquisition of CRYOPDP, expected to close in Q2 or Q3 2025 [5][11]. - The partnership is expected to enhance operational reach in the APAC and EMEA regions and provide a strong infusion of capital [5][11]. Market Position and Outlook - The company supports 711 global clinical trials as of March 31, 2025, an increase of 36 trials from the previous year [9]. - The company anticipates continued growth in the regenerative medicine space and aims to return to positive adjusted EBITDA during 2025 [6][19].