Results are from Acurx's ongoing scientific collaboration with Leiden University Medical Center (LUMC) partially under a grant from Health Holland to further study the mechanism of action of DNA pol IIIC inhibitors LUMC highlighted Acurx's new class of promising antimicrobials, ibezapolstat and related analogues Novel chemotype specifically targeting gram-positive bacteria through an unexploited target Ibezapolstat ready to enter pivotal Phase 3 clinical trials for C. difficile Infection (CDI), with no cros ...

Core Viewpoint - Ginkgo Bioworks announces the resignation of CFO Mark Dmytruk, effective May 30, 2025, with Steven Coen appointed as the new CFO, highlighting a leadership transition aimed at continuing the company's financial strategy and goals [1][3]. Company Leadership Transition - Mark Dmytruk will resign to pursue another opportunity, and Steven Coen, who joined Ginkgo on May 1, 2023, will take over as CFO [1][2]. - Coen brings over 30 years of experience in public accounting and corporate finance, previously serving as Corporate Vice President and Corporate Controller at Charles River Laboratories, which has annual revenues of approximately $4.0 billion [2]. Financial Strategy and Goals - Coen expressed confidence in continuing the financial vision established by Dmytruk, focusing on cost reduction targets and achieving Adjusted EBITDA breakeven by the end of 2026 [3]. - Dmytruk acknowledged the high-performing finance organization he built and expressed confidence in Coen and the finance team to advance the company's financial objectives [3]. Company Overview - Ginkgo Bioworks is a leading platform for cell programming, providing services across various markets, including food, agriculture, pharmaceuticals, and biosecurity [4].

Core Insights - Regeneron Pharmaceuticals is acquiring the assets of 23andMe for $256 million, which includes its personal genome service, total health, research services, and biobank of genetic samples [1] - 23andMe will continue to provide consumer genome services post-acquisition [1] Group 1: Acquisition Details - The acquisition aims to enhance 23andMe's mission of helping individuals understand their DNA and improve personal health, while also supporting Regeneron's genetic research initiatives [2] - The deal is expected to close in the third quarter of this year, with Regeneron required to adhere to 23andMe's privacy policies regarding customer data [3] Group 2: Company Background - 23andMe filed for Chapter 11 bankruptcy protection in March, leading to the immediate resignation of CEO Anne Wojcicki [4] - The company, which went public in 2021 with a valuation of $6 billion, has struggled to achieve profitability and faced significant challenges, including a $30 million settlement for a data breach and substantial layoffs [5] - As of November, 23andMe reported debts of $2.3 billion and approximately $126 million in cash and cash equivalents, indicating a need for additional liquidity [5]

Financial Performance & Targets - Ginkgo achieved $205 million in annual run-rate cost savings from Q1 2024 to Q1 2025[13] - The company maintains a strong financial position with $517 million in cash, cash equivalents, and marketable securities[15] - Total Adjusted EBITDA improved from $(117) million in Q1 2024 to $(47) million in Q1 2025, a 59% increase[34] - Ginkgo is targeting Adjusted EBITDA breakeven by the end of 2026[11, 49] - The company aims for $250 million of annualized run-rate savings target by the end of Q3 2025[53] Revenue & Growth - Cell Engineering revenue increased by 37% year-over-year, reaching $38 million in Q1 2025[34] - This includes recognition of $75 million non-cash deferred revenue from BiomEdit[24] - Total revenue increased by 27% year-over-year, from $38 million to $48 million[34] - Biosecurity revenue remained stable at $10 million in Q1 2025 compared to Q1 2024[34] Biosecurity Expansion - Ginkgo's biosecurity segment has expanded its reach to 127 countries of origin of flights sampled, representing 65% of nations globally[33] - The biosecurity network includes 11 key international airports and 45 collection nodes cumulatively in 2025[33]

Core Insights - Ginkgo Bioworks Holdings, Inc. reported a quarterly loss of $1.58 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.23, marking an earnings surprise of -28.46% [1] - The company generated revenues of $48.32 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 17.12% and showing a year-over-year increase from $37.94 million [2] - Ginkgo Bioworks shares have declined approximately 29.5% year-to-date, contrasting with the S&P 500's decline of -3.9% [3] Company Performance - Over the last four quarters, Ginkgo Bioworks has surpassed consensus EPS estimates only once, indicating inconsistent performance [2] - The current consensus EPS estimate for the upcoming quarter is -$0.47 on revenues of $44.55 million, and for the current fiscal year, it is -$3.72 on revenues of $171.48 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Ginkgo Bioworks belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ginkgo Bioworks' stock performance [5][6]

Financial Data and Key Metrics Changes - The company achieved a reduction in annual run rate costs of $205 million between Q1 2024 and Q1 2025, surpassing the initial target of $200 million [8] - Total company adjusted EBITDA improved to negative $47 million in Q1 2025 from negative $117 million in Q1 2024 [17] - Cash burn decreased significantly to $58 million in Q1 2025 from $104 million in Q1 2024 [18] Business Line Data and Key Metrics Changes - Cell engineering revenue reached $38 million in Q1 2025, a 37% increase year-over-year, with a 10% increase to $31 million when excluding noncash revenue [11][12] - Biosecurity revenue was $10 million in Q1 2025, with a segment gross margin of 28% [13] - The number of revenue-generating programs in cell engineering increased by 32% year-over-year, totaling 123 programs [12] Market Data and Key Metrics Changes - The company has 28 government projects across cell engineering and biosecurity, with a contracted backlog exceeding $180 million [30] - The biotechnology sector is currently facing challenges in capital markets, but companies that navigate these difficulties are expected to emerge stronger [10][25] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven by the end of 2026 while maintaining a cash margin of safety [5][6] - A focus on expanding the tools business to market directly to a wider range of customers, moving beyond traditional R&D solutions [7] - The company is positioning itself as a trusted R&D service provider to the U.S. government, with ongoing investments in biotechnology and biosecurity [20][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the biotechnology sector's resilience and the potential for growth despite current market challenges [10][25] - The new U.S. administration is expected to continue funding biotechnology, with a focus on reducing regulations and increasing investment in critical technologies [26][30] - The company is well-positioned with over $517 million in cash and no bank debt, allowing it to navigate the current market environment effectively [9][25] Other Important Information - The company has made significant progress in restructuring efforts, achieving substantial cost reductions while maintaining service to existing customers [8][19] - The introduction of new metrics for revenue-generating programs aims to provide more useful data for analysts and improve revenue modeling [12] Q&A Session Summary Question: Is there an opportunity for data points to evolve into a SaaS cloud computing product? - Management acknowledged the potential for Ginkgo to assist large pharma companies in developing their data architecture and systems, indicating a possible opening in the SaaS space [85][86] Question: Can you provide more details on the ARPA H contract and its revenue recognition? - The ARPA H contract is a $29 million, two-year agreement, with revenue expected to be recognized over that period, significantly derisking the company's guidance for the year [92][94]

Financial Data and Key Metrics Changes - The company achieved a reduction in annual run rate costs of $205 million between Q1 2024 and Q1 2025, surpassing the initial target of $200 million [7] - Cash and cash equivalents on the balance sheet stand at $517 million with no bank debt, positioning the company strongly among peers in the biotechnology sector [8][26] - Total company adjusted EBITDA improved to negative $47 million in Q1 2025 from negative $117 million in Q1 2024, indicating significant progress in profitability [17] - Cash burn decreased to $58 million in Q1 2025 from $104 million in Q1 2024, reflecting the impact of restructuring efforts [18] Business Line Data and Key Metrics Changes - Cell engineering revenue reached $38 million in Q1 2025, a 37% increase year-over-year, with a 10% increase to $31 million when excluding noncash revenue [11] - The biosecurity business generated $10 million in revenue in Q1 2025, with a segment gross margin of 28% [13] - The number of revenue-generating programs in cell engineering increased by 32% year-over-year, totaling 123 programs [12] Market Data and Key Metrics Changes - The company has 28 government projects across cell engineering and biosecurity, with a contracted backlog exceeding $180 million [32] - The company is positioned to benefit from increased government investment in biotechnology, as highlighted by recent speeches from government officials [28][32] Company Strategy and Development Direction - The company aims to reach adjusted EBITDA breakeven by the end of 2026 while maintaining a cash margin of safety [4] - The strategic focus includes expanding the tools business and enhancing the way the platform is sold, moving beyond traditional R&D solutions [6][21] - The company is actively pursuing opportunities in the automation and data points sectors, leveraging its expertise in high-throughput screening and AI [46][84] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the biotechnology sector's resilience despite current market challenges, emphasizing that companies that navigate this period successfully will be in a strong position [9][26] - The management highlighted the importance of government funding for biotechnology and expressed confidence in the continuation of such funding [32][96] Other Important Information - The company has made significant strides in cost reduction while continuing to serve existing customers effectively [7][20] - The introduction of new metrics for revenue-generating programs aims to provide more useful data for analysts and investors [12] Q&A Session Summary Question: Is there an opportunity for data points to evolve into a SaaS cloud computing product? - The management acknowledged the potential for Ginkgo to assist large pharma companies with data architecture and automation technology, but clarified that the approach to market is still being evaluated [87][89] Question: Can you provide more details on the ARPA H contract and its revenue recognition? - The ARPA H contract is valued at $29 million over two years, with revenue expected to be recognized accordingly, which significantly derisks the revenue guidance for the year [94][95] - The management remains hopeful about the continuation of funding for biotechnology projects despite potential cuts in government spending [96]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ______________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File Number: 001-40097 ______________________ ...

Revenue Performance - Total revenue for Q1 2025 was $48 million, a 27% increase from $38 million in the same period last year, primarily due to a $7 million non-cash revenue release[6]. - Cell Engineering revenue for Q1 2025 was $31 million, up 10% from $28 million in the prior year, driven by growth with biopharma and government customers[6]. - Cell Engineering revenue increased to $38,230,000 in Q1 2025 from $27,889,000 in Q1 2024, representing a growth of 37.5%[19]. - Total revenue for Q1 2025 was $48,318,000, up from $37,944,000 in Q1 2024, marking a 27.5% increase[19]. - Full year 2025 revenue guidance updated to $167-$187 million, with Cell Engineering revenue projected at $117-$137 million[12]. Financial Losses and Improvements - GAAP net loss for Q1 2025 was $(91) million, an improvement from $(166) million in the same period last year[6]. - Net loss narrowed to $90,957,000 in Q1 2025 compared to a net loss of $165,911,000 in Q1 2024, improving by 45.0%[19]. - Basic net loss per share improved to $(1.68) in Q1 2025 from $(3.31) in Q1 2024[19]. - Adjusted EBITDA for Q1 2025 was $(47) million, an improvement from $(117) million in the prior year, attributed to increased revenue and decreased operating expenses[6]. - Adjusted EBITDA for Q1 2025 was $(47,451,000), an improvement from $(117,001,000) in Q1 2024[29]. - The total segment operating loss for Q1 2025 was $(36,773,000), compared to $(103,471,000) in Q1 2024, reflecting a significant reduction in losses[25]. Cost Management - The company aims to achieve $250 million in annualized cost reductions by the end of Q3 2025, with a current run-rate cost reduction of $205 million[6]. - Research and development expenses decreased to $70,923,000 in Q1 2025 from $136,457,000 in Q1 2024, a reduction of 48.0%[19]. - Total operating expenses decreased to $137,286,000 in Q1 2025 from $215,946,000 in Q1 2024, a decline of 36.4%[19]. - The company incurred restructuring charges of $5,273,000 in Q1 2025, primarily related to employee termination costs[26]. Cash and Backlog - Cash, cash equivalents, and marketable securities as of March 31, 2025, totaled $517 million[6]. - Cash and cash equivalents at the end of Q1 2025 were $312,420,000, down from $840,440,000 at the end of Q1 2024[23]. - Ginkgo has a contracted backlog of approximately $180 million across 28 US Government projects in Cell Engineering and Biosecurity[6]. Market Position and Growth - Ginkgo's Datapoints and Automation offerings are gaining traction, including a new deal with Aura Genetics, marking its first diagnostics company customer[6]. - The company is well-positioned in the biotechnology sector, which is emphasized as a critical area of national importance by US government reports[6].

Core Insights - Ginkgo Bioworks has made significant progress in its restructuring efforts, targeting $250 million in cost savings by Q3 2025 [1][3][7] - The company reported a total revenue of $48 million for Q1 2025, a 27% increase from $38 million in the same period last year, primarily due to a $7 million non-cash revenue release [6][22] - Ginkgo's Solutions business is becoming a trusted R&D service provider for the US Government and biopharma industry, while its Tools business is gaining traction in AI-related opportunities [3][7] Financial Performance - Q1 2025 total revenue was $48 million, with $31 million from Cell Engineering (up 10% year-over-year) and $10 million from Biosecurity (flat year-over-year) [6][22] - The company reported a GAAP net loss of $91 million for Q1 2025, an improvement from a net loss of $166 million in the prior year [6][22] - Adjusted EBITDA for Q1 2025 was $(47) million, an improvement from $(117) million in the prior year, driven by increased revenue and reduced operating expenses [6][22] Strategic Positioning - Ginkgo is well-positioned in the biotechnology sector, with 28 US Government projects and a contracted backlog of approximately $180 million [7] - The company is focusing on biosecurity and R&D services, which are deemed critical by national policy reports [7] - Ginkgo's Datapoints and Automation offerings are generating new deals, including a recent agreement with Aura Genetics [7] Guidance and Outlook - Ginkgo has updated its 2025 guidance to reflect total revenue expectations of $160-$180 million, with Cell Engineering revenue projected at $110-$130 million and Biosecurity revenue at least $50 million [5][13] - The company aims to achieve Adjusted EBITDA breakeven by the end of 2026 [7]