Company Performance - Ginkgo Bioworks Holdings, Inc. (DNA) experienced a stock increase of +1.96% to $8.31, outperforming the S&P 500's daily loss of 0.74% [1] - Over the past month, the company's shares have declined by 5.12%, which is worse than the Medical sector's loss of 0.8% and the S&P 500's gain of 0.79% [1] Upcoming Earnings - The upcoming earnings release is anticipated to show an EPS of -$1.8, reflecting a 1.1% increase from the same quarter last year [2] - Revenue is forecasted at $37 million, indicating a 15.62% decrease compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at -$5.94 per share, representing a 42.66% increase from the previous year [3] - Revenue for the fiscal year is estimated at $173 million, showing a 23.8% decline from the prior year [3] Analyst Estimates - Recent changes in analyst estimates for Ginkgo Bioworks are crucial as they reflect the evolving business trends [4] - Positive revisions in estimates are seen as indicators of analysts' confidence in the company's performance and profit potential [4] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Ginkgo Bioworks at 3 (Hold) [6] - The Medical - Biomedical and Genetics industry, which includes Ginkgo Bioworks, holds a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7]

Core Insights - Ginkgo Bioworks has partnered with Carnegie-Mellon University for the POSEIDON program, aimed at early cancer detection and intervention, supported by funding from ARPA-H [1][2] Group 1: Partnership and Project Overview - The partnership involves Ginkgo Bioworks as the Commercial Partner, with the project led by Rebecca Taylor from Carnegie Mellon University [1] - The project aims to develop an innovative orally administered pill with tumor-targeting sensors and a user-friendly at-home cancer screening device [2] Group 2: Technology and Innovation - The pill will utilize synthetic biology and nucleic acid nanotechnology to detect tumor-specific conditions such as low oxygen, acidity, and lactate, which are indicators of cancer [3] - The sensors will release reporters to indicate tumor presence and its tissue of origin, with results collected through urine [3] Group 3: Project Goals and Impact - The dual-function approach aims to provide high precision in detecting hidden tumors, potentially transforming early cancer diagnostics [4] - The project includes a multidisciplinary team from various academic institutions and corporate partners, emphasizing the importance of interdisciplinary collaboration in developing new diagnostics [4]

Core Insights - Thermo Fisher Scientific Inc. has launched two new products, Gibco™ Bacto™ CD Supreme FPM Plus and Gibco™ Bacto™ CD Supreme Feed (2X), aimed at enhancing plasmid DNA and recombinant protein production using E. coli [1] Product Launch - The new formulations are part of the Gibco™ Bacto™ CD portfolio, designed to simplify and improve the production processes for plasmid DNA and recombinant proteins [1] - The launch responds to the increasing demand for plasmid DNA, which is driven by the growth in gene therapy and mRNA vaccine development [1]

Core Insights - ProteoNic BV's proprietary 2G UNic® technology has been licensed by Ginkgo Bioworks for a project funded by BARDA, aimed at enhancing domestic biomanufacturing of monoclonal antibodies to combat filoviruses like Ebola and Sudan Virus [1][2] Group 1: Project Overview - The project has a total value of up to $22.2 million and involves a collaboration between Ginkgo Bioworks, Advanced BioScience Laboratories, Isolere Bio, NeuImmune, and ProteoNic [2] - The initiative focuses on developing innovative technologies across the entire monoclonal antibody production process, from cell line development to purification, to create a more efficient and cost-effective biomanufacturing solution [2] Group 2: ProteoNic's Role - ProteoNic's contribution centers on its 2G UNic vector and transposon technologies, which are designed to maximize expression and productivity in mammalian systems, thereby enhancing manufacturing efficiency and yield [3] - The technology aims to reduce both time and cost associated with large-scale bioproduction of monoclonal antibodies [3] Group 3: Strategic Importance - The collaboration highlights ProteoNic's expansion into next-generation biologics manufacturing, supporting therapeutic protein production and cell and gene therapy applications [4] - By improving productivity from existing manufacturing infrastructure, ProteoNic's technology aims to bolster biomanufacturing resilience against future global health threats [4]

Core Insights - Ginkgo Bioworks has partnered with Deep Origin on a 4.5-year project funded by ARPA-H to develop a computational platform for drug safety [1][4] - The collaboration, named PREDICTS, aims to enhance pharmacological research through digital integration and clinical trial simulation [1][4] Company Overview - Ginkgo Bioworks specializes in engineering biology and offers customizable R&D solutions, including protein engineering and nucleic acid design [6] - The company utilizes its 'Datapoints' platform to generate large, structured datasets for AI model training, focusing on drug safety and efficacy [2][4] Project Details - The PREDICTS project will leverage Ginkgo's high-throughput capabilities to create detailed models of cellular responses to drug treatments [3][4] - The initiative will include various readouts such as cell type-specific toxicity endpoints and DRUG-seq transcriptomics [2] Strategic Importance - This partnership highlights Ginkgo's commitment to interdisciplinary collaboration and its expertise in generating large datasets for drug development [4] - The collaboration is expected to push the boundaries of multi-omics data generation, transforming drug discovery processes [4]

Core Insights - NeuralCloud is enhancing its global wellness and B2B health practitioner delivery model through high-fidelity cardiac signal processing and digital health integration [1] - The partnership positions MaxYield™ as a central AI engine for next-generation smart rings and consumer cardiac monitoring within the broader INTRINSICA platform [1]

Core Insights - Ginkgo Bioworks has been awarded a four-year contract worth up to $47 million by the Environmental Molecular Sciences Laboratory to develop a High-Throughput Automated Phenotyping Platform [1][5] - The platform aims to enhance the U.S. Department of Energy's capabilities in generating reproducible microbial data, thereby supporting the bioeconomy and biotechnology innovation [1][4] Group 1: Contract and Collaboration - The contract is part of a competitive procurement process and will support the Microbial Molecular Phenotyping Capability [1][5] - Ginkgo Automation will utilize its Catalyst scheduling software and modular Reconfigurable Automation Carts to automate workflows from media preparation to multimodal analytics [2][3] Group 2: Technological Features - The HTPAPP is designed to support BSL2 operations, remote planning, and laboratory integration, allowing for adaptability as scientific needs evolve [2][9] - Key features include a modular architecture, integrated transport, and software-enabled interleaving of diverse protocols to maximize efficiency [2][9] Group 3: Strategic Importance - The project aligns with the recent AI Action Plan aimed at boosting U.S. scientific innovation through AI-enabled cloud laboratories [4] - The platform is expected to increase throughput and reproducibility of phenotyping campaigns, capturing multimodal analytical measurements suitable for AI and machine learning applications [5][9] Group 4: Company Overview - Ginkgo Bioworks specializes in engineering biology, offering customizable R&D solutions across various sectors including therapeutics, diagnostics, and agriculture [8] - The company also provides laboratory automation solutions to enhance research efficiency and data generation for AI models [8]

Core Viewpoint - The article emphasizes a sell rating on Ginkgo Bioworks (DNA), highlighting a significant decline in its share price over the past two years [1]. Company Summary - Ginkgo Bioworks is identified as a cell programming and biosecurity company [1]. - The company has experienced a notable decrease in its stock value, which is a central theme of the analysis [1]. Analyst Background - The author has a background in finance and accounting, with experience in investment management and portfolio management [1]. - The author has been active in the markets for several years, focusing primarily on long/short equities [1].

Financial Data and Key Metrics Changes - In Q3 2025, Ginkgo reported a cash position of $462 million with no bank debt, reflecting a significant reduction in quarterly cash burn by 75% from $114 million in Q3 2024 to $28 million in Q3 2025 [4][11] - Total adjusted EBITDA for Q3 2025 was negative $56 million, down from negative $20 million in Q3 2024, primarily due to a $21 million shortfall related to a Google Cloud contract and a $45 million non-cash revenue from a prior customer agreement [10][12] Business Line Data and Key Metrics Changes - Cell engineering revenue was $29 million in Q3 2025, a 61% decrease compared to Q3 2024, with a 5% decrease in revenue-generating programs attributed to ongoing program rationalization [6][8] - Biosecurity revenue generated $9 million in Q3 2025, with a segment gross margin of 19% [7] Market Data and Key Metrics Changes - The company reaffirmed its overall revenue guidance for 2025, projecting total revenue between $167 million and $187 million, with cell engineering revenue expected to be between $117 million and $137 million, and biosecurity revenue expected to be at least $40 million [12] Company Strategy and Development Direction - Ginkgo aims to deliver robotics and software for autonomous labs at customer sites, expand its frontier autonomous lab in Boston, and provide best-in-class CRO services leveraging in-house robotic infrastructure [2][3] - The company is focusing on AI's impact on biotechnology, particularly through reasoning models and automation, to enhance laboratory efficiency and reduce costs [13][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the macro environment while continuing to execute core objectives, emphasizing the importance of investing in automation and AI tooling for future growth [12][40] - The management highlighted the need for the U.S. to invest in robotic infrastructure to compete with China's growing biotech sector [19][20] Other Important Information - Ginkgo has made significant strides in reducing costs while maintaining a strong cash position, allowing for future investments in growth [4][40] - The company is actively building a community around AI models trained on biological data through initiatives like the Antibody Developability Competition [24][26] Q&A Session Summary Question: Impact of U.S. government shutdown on Ginkgo's business - Management indicated that the shutdown has not significantly impacted the company, as grants and funding continue to flow [41] Question: Development and rollout path for the rack system - Management expressed excitement about the scalability and productization of the rack system, aiming for broader adoption in the next 18 months [42][44] Question: Ideal revenue mix by 2030 - The company envisions an 80-20 revenue mix favoring tools over services by 2030, with a focus on becoming a dominant provider of general-purpose R&D infrastructure [50][51] Question: Details on the Google Cloud contract reset - Management provided insights on favorable terms negotiated with Google, reducing future commitments and extending the contract period [52][53] Question: AI's role in R&D landscape - Management discussed the potential of AI and robotics to transform drug discovery and laboratory operations, enabling researchers to pursue multiple hypotheses simultaneously [56][58]

Financial Performance - Ginkgo's Q3 2025 total revenue was $39 million, a decrease of 56% year-over-year compared to $89 million in Q3 2024[34] - Cell Engineering revenue in Q3 2025 was $29 million, a 61% decrease compared to $75 million in Q3 2024, which includes $45 million of non-cash deferred revenue from Motif[23, 34] - Biosecurity revenue in Q3 2025 was $9 million, a 32% decrease compared to $14 million in Q3 2024[34] - Total Adjusted EBITDA for Q3 2025 was $(56) million, compared to $(20) million in Q3 2024[34] - Ginkgo reaffirms its full year 2025 total revenue guidance of $167-187 million[43] - Ginkgo's cash, cash equivalents, and marketable securities remain strong at $462 million as of Q3 2025[17] - Quarterly cash burn continues to improve, with a 73% decrease from the prior quarter[14] Strategic Focus - Ginkgo is expanding its business model into life science tools and services[54, 96] - Ginkgo believes AI models will impact biotechnology in two ways and is well-positioned to provide tools in both[48, 51, 93, 115] - Ginkgo continues to offer research solutions on top of its in-house robotics, winning new deals in Agriculture and with the US Government[49, 52, 94, 116] - Ginkgo is expanding its frontier autonomous lab in Boston as a showcase[50, 53, 95, 117, 118]