Group 1 - Ginkgo Bioworks Holdings, Inc. closed at $15.24, down 5.28% from the previous trading session, which is less than the S&P 500's loss of 0.28% [1] - Prior to the recent trading day, the company's shares had increased by 56.37%, significantly outperforming the Medical sector's gain of 3.31% and the S&P 500's gain of 4.03% [1] Group 2 - The upcoming earnings release is projected to show an EPS of -$1.24, reflecting a 14.81% decrease compared to the same quarter last year, with expected revenue of $39 million, down 56.2% from the prior-year quarter [2] - For the entire fiscal year, the Zacks Consensus Estimates predict an EPS of -$5.27 and revenue of $181 million, indicating changes of +49.13% and -20.28% respectively from the previous year [3] Group 3 - Recent revisions to analyst forecasts for Ginkgo Bioworks are important as they indicate changing near-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988; Ginkgo Bioworks currently holds a Zacks Rank of 3 (Hold) [6] Group 4 - The Medical - Biomedical and Genetics industry, part of the Medical sector, has a Zacks Industry Rank of 96, placing it in the top 39% of over 250 industries, indicating strong performance potential [7]

Core Viewpoint - Ginkgo Bioworks is settling multiple derivative actions with a total payment of $4,125,000 to be made by the Individual Defendants' Insurers, which is intended to benefit the company and its shareholders [5][7][10]. Summary by Sections Settlement Details - The settlement amount of $4,125,000 will be paid to Ginkgo within 30 days after the court enters the judgment [5]. - The settlement includes all fees and expenses of Plaintiffs' Counsel and Service Awards, which will be paid if approved by the court [5][8]. - Ginkgo will terminate a specific contract and implement corporate governance reforms for at least three years as part of the settlement [6]. Court Approval - A settlement hearing is scheduled for December 18, 2025, where the court will determine the fairness and adequacy of the settlement [9][10]. - Current Ginkgo stockholders have the right to appear at the hearing and object to the settlement or fee amounts [11][12]. Governance Reforms - The Board of Ginkgo has committed to adopting and maintaining comprehensive corporate governance and internal control reforms as part of the settlement [6][7]. - The Board believes the settlement confers substantial benefits to Ginkgo and its stockholders [7]. Legal Proceedings - The derivative actions are being settled in both the Northern District of California and Delaware Chancery Court [5][10]. - The settlement is part of a broader effort to address claims asserted in the derivative actions [6].

Core Insights - Quest Diagnostics has received Breakthrough Device Designation from the FDA for its Haystack MRD® test, aimed at identifying MRD-positive patients with stage II colorectal cancer post-surgery who may benefit from adjuvant therapy [1][3] - The Haystack MRD test is supported by a growing body of research indicating its effectiveness in detecting residual or recurrent cancer from solid tumors, enhancing both clinical and pharmaceutical applications [2][4] Company Overview - Quest Diagnostics is a leading provider of diagnostic information services, serving one in three adult Americans and half of the physicians and hospitals in the U.S. [6] - The company emphasizes the importance of diagnostic insights derived from laboratory testing to improve health outcomes and empower healthcare decisions [6] Product Details - Haystack MRD is a liquid biopsy test designed to detect low levels of circulating-tumor DNA (ctDNA) in the bloodstream, which can indicate residual, recurrent, or resistant disease in cancer patients [5] - The test has been utilized in multiple clinical trials and is available for clinical use across over 75 top cancer and academic centers [5] Research and Development - The Breakthrough Devices Program aims to expedite the development and approval of medical devices that provide effective treatment or diagnosis for life-threatening conditions, which aligns with the goals of Quest Diagnostics in advancing the Haystack MRD test [3] - A recent survey indicated that 96% of oncologists believe MRD testing can identify cancer recurrence earlier than current methods, highlighting the test's potential impact on clinical practices [4]

Core Insights - Ginkgo Bioworks has formed a strategic partnership with Inductive Bio and Tangible Scientific to enhance AI-driven drug discovery, making it more accessible across the industry [1][2] - The collaboration integrates Ginkgo Datapoints' rapid ADME profiling, Inductive Bio's model-driven chemistry design, and Tangible Scientific's compound management platform to streamline drug discovery processes [2][3] Group 1: Partnership Objectives - The partnership aims to transition from in-silico compound designs to validated experimental results in a single digital workflow, reducing synthesis cycles and overall drug discovery costs [2][3] - By coupling model-driven design with efficient logistics, the collaboration seeks to enable scientists to iterate quickly and utilize advanced digital tools for drug discovery [4][8] Group 2: Technological Integration - Ginkgo Datapoints provides high-quality ADME profiling services, including metrics like microsomal stability and permeability, benefiting from Boston's biopharma hub logistics [5][6] - Tangible Scientific's platform facilitates secure storage and rapid movement of compounds, allowing researchers to access Ginkgo's services directly from their digital environments [6][12] Group 3: Industry Context - The drug discovery process has evolved into a complex global logistics challenge, necessitating efficient coordination among various vendors and locations [3] - The partnership aligns with the FDA's goals for faster drug development timelines and increased use of AI tools in the industry [8] Group 4: Service Availability - The integrated services are currently available for pharmaceutical and biotech teams aiming to enhance ADMET optimization and reduce iteration times [9]

Core Viewpoint - Ginkgo Bioworks Holdings, Inc. (DNA) shows potential as a stock pick due to its recent technical performance and positive earnings estimate revisions [1][3]. Technical Analysis - DNA has surpassed the 50-day moving average, indicating a short-term bullish trend [1]. - The stock has increased by 22.6% over the past four weeks, suggesting strong upward momentum [2]. Earnings Estimates - There has been one upward revision in earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [3]. - The consensus earnings estimate has also increased, further supporting the bullish outlook for DNA [3]. Market Position - DNA is currently rated as a Zacks Rank 3 (Hold), which implies that the stock may continue to experience gains in the near future [2].

Core Insights - Ginkgo Bioworks has appointed Brian O'Sullivan as Head of Commercial for Ginkgo Automation to enhance its global go-to-market strategy [2][3] - Ginkgo Automation is transitioning from supporting internal R&D to providing modular automation solutions to external clients in biopharma, diagnostics, and national laboratories [3][5] Company Developments - Brian O'Sullivan will oversee all revenue-generating functions, including sales, business development, and marketing, at a crucial time for Ginkgo Automation [3][5] - The company has seen rapid growth in its customer base and is now offering its Reconfigurable Automation Cart (RAC) hardware and Catalyst software to external clients [3][4] Leadership Background - Brian O'Sullivan has a strong track record in building commercial teams and driving growth in the life sciences sector, having previously led commercial efforts at HighRes Biosolutions and held senior roles at Agilent Technologies and Beckman Coulter [4][5] - His expertise in capital expenditure and software solutions is expected to help Ginkgo Automation scale globally [4] Strategic Focus - Immediate priorities for Brian include expanding Ginkgo Automation's commercial reach and strengthening relationships with enterprise clients [5] - Ginkgo Automation aims to empower scientists by providing advanced hardware and AI-ready software to enhance laboratory efficiency [5]

Core Viewpoint - Ginkgo Bioworks has experienced significant stock price appreciation, with shares more than doubling to over $13, attributed to favorable market conditions [1]. Company Summary - Ginkgo Bioworks is a cell programming and biosecurity company that has emerged as one of the market's biggest winners in recent months [1]. Market Context - The overall market environment has contributed positively to the performance of Ginkgo Bioworks, leading to a substantial increase in its stock value [1].

Financial Data and Key Metrics Changes - The company achieved a $250 million annual run rate cost savings target a quarter early, with cash and cash equivalents totaling $474 million and no bank debt, providing a margin of safety [5][6][78] - Total adjusted EBITDA improved to negative $28 million in 2025 from negative $99 million in 2024, representing a 72% improvement [12] - Cash burn decreased significantly from $110 million in 2024 to $38 million in 2025, attributed to restructuring efforts [13] Business Line Data and Key Metrics Changes - Cell engineering revenue reached $39 million in 2025, an 8% increase compared to 2024, with 120 revenue-generating programs, a 10% year-over-year increase [9] - Biosecurity revenue was $10 million in 2025, with a segment gross margin of 18% [10] - R&D expenses for cell engineering decreased by 63% from $84 million in 2024 to $31 million in 2025, while G&A expenses decreased by 57% from $33 million to $14 million [11] Market Data and Key Metrics Changes - The company reaffirmed its total revenue guidance for 2025, expecting between $167 million and $187 million, with cell engineering revenue projected between $117 million and $137 million, and biosecurity revenue expected to be at least $40 million [14] Company Strategy and Development Direction - The company is transitioning from an R&D solutions business to the life science tool space, focusing on automation and data points as key growth areas [4][16] - The strategic focus includes maintaining a cash margin of safety while exploring growth opportunities leading into 2026 [6][78] - The company aims to leverage its automation technology to address the demand for increased output from existing R&D resources, particularly in the context of economic pressures and competition [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of automation as a significant revenue driver, aiming to make it as general-purpose as the lab bench [81][83] - The company is exploring opportunities in the CRO services market, emphasizing the importance of automation to reduce R&D costs and improve scalability [62][64] - Management highlighted the potential for AI-enabled science and the need for investment in automated lab environments to enhance research capabilities [55][57] Other Important Information - The company launched its first reagent product, a cell-free protein synthesis kit, which has already garnered interest in the academic research market [69][75] - The company is actively engaging with customers to provide competitive pricing for CRO services, aiming to match overseas providers [96] Q&A Session Summary Question: Is Ginkgo Automation expected to become a primary driver of revenue? - Management indicated that automation is anticipated to be a significant part of future business, potentially becoming the majority of revenue if successful in making it as general as the lab bench [81][83] Question: Are there plans for acquisitions? - Currently, there are no immediate acquisition plans, but the company remains open to opportunities if they align well with strategic goals [84] Question: Can you elaborate on Ginkgo RNA solutions? - RNA solutions are being developed as a service based on expertise in RNA discovery, with the potential for more offerings in the future [86][88] Question: Can you provide more details on AdMe data generation software? - Management discussed the potential for developing AI models based on generated AdMe data, emphasizing the importance of providing competitive pricing for CRO services [91][97]

Financial Performance & Targets - Ginkgo achieved its target of $250 million in annualized run-rate cost savings from Q1 2024 to Q2 2025[13, 50] - Ginkgo's Q2 2025 Cell Engineering revenue was $39 million, an 8% increase year-over-year[34] - Biosecurity revenue for Q2 2025 was $10 million, a 48% decrease year-over-year[34] - The company reaffirms its total revenue guidance for FY2025, projecting $167-$187 million, including $117-137 million from Cell Engineering and $40+ million from Biosecurity[37, 52] - Ginkgo aims to reach Adjusted EBITDA breakeven by the end of 2026[11, 46, 53] - Ginkgo had $474 million in cash, cash equivalents, and marketable securities with no bank debt[15, 16] Strategic Initiatives - Ginkgo is expanding from its Solutions business into tools, launching its first direct-to-scientist product: a cell-free protein synthesis system[11, 43, 63] - Ginkgo's Automation and Datapoints are establishing themselves as critical tools in AI-enabled science[43, 143] - Ginkgo has sampled flights originating from 128 countries, representing 65% of nations globally[33]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section details Ginkgo's unaudited financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Ginkgo's unaudited consolidated financial statements and detailed notes for H1 2025 and 2024 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets, liabilities, and stockholders' equity decreased from December 31, 2024, to June 30, 2025 | Metric | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :-------------------------- | :--------------------------------- | :----------------------------------- | | Total Assets | $1,231,009 | $1,377,449 | | Total Liabilities | $618,057 | $661,391 | | Total Stockholders' Equity | $612,952 | $716,058 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Net loss significantly reduced in H1 2025 due to lower operating expenses, despite a Q2 revenue decrease Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :--------- | :----------- | :----------- | | Total Revenue | $49,604 | $56,206 | $(6,602) | | Net Loss | $(60,300) | $(217,181) | $156,881 | | Basic Net Loss Per Share | $(1.10) | $(4.23) | $3.13 | Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :--------- | :----------- | :----------- | | Total Revenue | $97,922 | $94,150 | $3,772 | | Net Loss | $(151,257) | $(383,092) | $231,835 | | Basic Net Loss Per Share | $(2.77) | $(7.55) | $4.78 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to **$613.0 million** by June 30, 2025, primarily due to net loss Total Stockholders' Equity (in thousands) | Date | Amount | | :-------------------- | :------- | | June 30, 2025 | $612,952 | | December 31, 2024 | $716,058 | Stock-Based Compensation Expense (Six Months Ended June 30, in thousands) | Year | Amount | | :--- | :------- | | 2025 | $42,678 | | 2024 | $77,928 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash, cash equivalents, and restricted cash decreased by **$354.4 million** due to investing activities Cash Flows (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :------------------------------------------ | :--------- | :--------- | | Net cash used in operating activities | $(91,775) | $(173,649) | | Net cash used in investing activities | $(262,572) | $(38,951) | | Net cash used in financing activities | $(305) | $(1,071) | | Net decrease in cash, cash equivalents and restricted cash | $(354,392) | $(213,844) | - Purchases of marketable debt securities significantly increased cash used in investing activities in H1 2025 to **$320.1 million**, compared to none in H1 2024[23](index=23&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail Ginkgo's business, accounting policies, acquisitions, restructuring, fair value, investments, revenue, and segment data [Note 1. Basis of Presentation and Summary of Significant Accounting Policies](index=12&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) Ginkgo aims to engineer biology, offering R&D services and biosecurity, effected a 1:40 reverse stock split, and began investing in marketable debt securities - Ginkgo's mission is to make biology easier to engineer, providing biological R&D services through its Foundry (equipment, automation, software, data) and Codebase (biological assets, data)[27](index=27&type=chunk) - The Biosecurity business offers biomonitoring and bioinformatics support services (Canopy and Horizon) to identify, monitor, prevent, and mitigate biological threats for government and commercial customers[28](index=28&type=chunk) - A one-for-forty (1:40) reverse stock split for common stock was effected on **August 19, 2024**[30](index=30&type=chunk) - In 2025, the company began investing excess cash in marketable debt securities, classified as available-for-sale[35](index=35&type=chunk) [Note 2. Acquisitions](index=13&type=section&id=Note%202.%20Acquisitions) In 2024, Ginkgo acquired platform assets from AgBiome and Zymergen's IP, plus three other asset acquisitions expensed as in-process R&D - On **April 10, 2024**, Ginkgo acquired platform assets from AgBiome, Inc. for **$18.2 million**, paid with **407,240 shares of Class A common stock**, expanding its metagenomics database[40](index=40&type=chunk) - On **January 18, 2024**, Ginkgo completed the acquisition of substantially all of Zymergen's intellectual property assets for a total cash purchase price of **$6.2 million**[42](index=42&type=chunk) - Three other asset acquisitions during H1 2024 totaled **$19.8 million**, paid with **394,799 shares of Class A common stock**, and were expensed as acquired in-process research and development[45](index=45&type=chunk) [Note 3. Restructuring](index=14&type=section&id=Note%203.%20Restructuring) A Q2 2024 restructuring plan involves a workforce reduction of over 50% and facility consolidation, with estimated employee termination costs of **$27.0-$29.0 million** - A restructuring plan commenced in Q2 2024 includes a workforce reduction of more than **50%** and consolidation/subleasing of facilities[46](index=46&type=chunk) - Estimated costs for workforce reduction range from **$27.0 million to $29.0 million**, primarily in the Cell Engineering segment[47](index=47&type=chunk) Restructuring Costs Incurred (in thousands) | Cost Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Employee termination costs and other | $3,674 | $12,243 | $8,947 | $12,243 | | Impairment of right-of-use asset | — | $4,823 | — | $4,823 | | **Total restructuring** | **$3,674** | **$17,066** | **$8,947** | **$17,066** | - The accrued liability balance related to restructuring activities was **$2,568 thousand** as of June 30, 2025[50](index=50&type=chunk) [Note 4. Fair Value Measurements](index=15&type=section&id=Note%204.%20Fair%20Value%20Measurements) Total assets measured at fair value were **$467.5 million** as of June 30, 2025, with notes receivable and contingent consideration liabilities decreasing Fair Value Measurements (As of June 30, 2025, in thousands) | Category | Total | Level 1 | Level 2 | Level 3 | | :-------------------------------- | :------ | :------ | :------ | :------ | | **Assets:** | | | | | | Cash and cash equivalents | $187,762 | $171,888 | $15,835 | $— | | Marketable securities | $270,125 | $154,188 | $115,937 | $— | | Investments | $2,135 | $1,919 | $216 | $— | | Other non-current assets (Notes receivable) | $7,540 | $— | $— | $7,540 | | **Total Assets** | **$467,523** | **$327,9