Summary of Maravai LifeSciences Conference Call Company Overview - **Company**: Maravai LifeSciences (NasdaqGS:MRVI) - **Industry**: Life Sciences Tools and Diagnostics Key Points and Arguments Management Changes and Business Restructuring - New management team and CEO have been in place for about five months, focusing on restructuring the business to adapt to a post-COVID environment [4][3] - Over $50 million in annualized expenses are being removed through reduced headcount, facility rationalization, and lower capital expenditures [4][5] - The organization has become leaner with instilled financial discipline to ensure effective spending [4][5] Financial Guidance and Revenue Outlook - Guidance was suspended in Q2 to reassess the business, but reinstated for Q3, projecting $49 million for Q4, indicating a significant sequential increase [6][7] - The company is focused on returning to revenue growth and achieving positive EBITDA and cash flow generation [5][6] Sales and Commercial Strategy - Positive trends observed in October, particularly in GMP consumables and CDMO orders, with biotech funding showing signs of improvement [9][10] - The sales team is concentrating on larger orders (over $25,000), which constitute about 60% of revenue, while smaller orders are less impactful [10][11] - The company is enhancing sales tools and business intelligence to improve revenue generation [12][10] Product Development and Innovation - A strategic shift towards fewer, more impactful products, such as ModTail technology, which enhances mRNA protein expression durability [14][15] - Introduction of IVT kits for discovery customers, with plans for further product rollouts in 2026 [15][18] - The MockViral kits and mass spec analytical services are driving growth in the BST business, with expectations for high single-digit growth rates [19][20] Market Trends and Regional Performance - Strong growth in the Americas and Europe, with a muted performance in China due to previous tariff issues [19][26] - The company anticipates growth in China, particularly in the BST segment, as relationships with suppliers strengthen [26][27] CDMO Business and Capacity Utilization - Increased demand for CDMO services as programs move to clinical stages, with a focus on technical expertise and responsiveness [28][29] - The company is exploring options for utilizing excess capacity built during the COVID period, particularly in light of onshoring trends [29][30] Financial Projections for 2026 - Projected revenue from vaccine-related CleanCap products is estimated at $10 million to $20 million annually starting in 2026 [31][32] - Orders in hand are reportedly higher than the previous year, with a high degree of confidence in their realization [35][36] - Positive trends in biotech funding are expected to translate into increased demand within six months [42][43] Cost Management and Profitability - The company has downsized by 25% of its headcount, centralizing operations to improve decision-making and reduce costs [45][46] - The business is structured for scalability, allowing for increased profitability without significant additional operating expenses [46][44] Additional Important Insights - The focus on impactful product development and strategic customer engagement is expected to drive future growth [14][38] - The company is optimistic about capturing market opportunities in mRNA and oncology sectors over the next 12-18 months [38][39]

Summary of Maravai LifeSciences Conference Call Company Overview - **Company**: Maravai LifeSciences (NasdaqGS:MRVI) - **Date of Conference**: November 12, 2025 - **Key Speaker**: CFO Raj Asarpota Key Points Strategic Review and Restructuring - Maravai has undergone a strategic review leading to a restructuring aimed at achieving over **$50 million** in annualized expense savings, with **$3 million** realized in Q3 and an expected **$7 million** in Q4 [9][10][11] - The company has streamlined operations by removing layers built during the COVID years, enhancing decision-making and forecasting capabilities [10][11] Financial Performance and Forecasting - Q3 nucleic acid revenues were down **20%** to **$25 million**, compared to **$30 million** in the first half of the year, but the decline rate is decreasing [24][28] - The company expects strong double-digit growth in Q4, supported by a solid order volume and improved forecasting accuracy [29][31] - For 2024, Maravai anticipates **$10 million to $20 million** in COVID-related revenues, having had **zero** COVID revenue in the current year [80][81] Industry Outlook - The biopharma sector shows signs of recovery, with larger pharma companies active and smaller biotechs rationalizing their programs [39][40] - mRNA therapies are gaining traction beyond COVID, particularly in oncology and autoimmune conditions, which are seen as future growth drivers [40][49] Customer Base and Market Dynamics - Emerging biotech companies are crucial for early discovery and future revenue growth as they transition to larger orders [58] - The company is focusing on larger deals while still maintaining e-commerce initiatives for smaller orders [21][22] Product Development and Innovation - Maravai is optimistic about the potential of new products, particularly in mRNA applications, which are expected to increase dosage and efficiency [106][110] - The combination of Mocktail and CleanCap technologies is anticipated to enhance customer workflows and product durability [109][110] Financial Projections - The company aims for mid to high single-digit growth in the long term, aligning with peers like Thermo and Danaher [116] - Positive EBITDA is expected for the full year, driven by cost reductions and improved product mix [117][120] Customer Concentration - Nakulai has become a significant customer, contributing to revenue in 2024, although the company does not rely heavily on them for forecasts [84][91] - Pfizer remains committed to mRNA therapeutics despite some pipeline adjustments, alleviating concerns about customer concentration [74][80] Regional Performance - Growth in the BST segment was **7%** in the Americas and **17%** in Europe, while growth in China was muted due to tariff-related actions [97][102] - The company expects growth in China in 2026, with a stable outlook for European operations [104][102] Additional Insights - The company is focused on leveraging its scientific credibility and customer relationships to drive future growth [9][40] - There is a strong emphasis on improving operational efficiency and decision-making processes to enhance profitability [121][122]

Financial Performance - Revenue for Q3 2025 was $41.63 million, a decrease of 39.8% compared to $69.03 million in Q3 2024[19] - Gross profit for Q3 2025 was $5.66 million, down 82.4% from $32.23 million in Q3 2024[19] - The net loss for Q3 2025 was $45.06 million, compared to a net loss of $172.46 million in Q3 2024, indicating an improvement in financial performance[20] - The company reported a basic and diluted net loss per Class A common share of $0.18 for Q3 2025, compared to $0.68 for Q3 2024[19] - The company experienced a comprehensive loss attributable to Maravai LifeSciences Holdings, Inc. of $25.55 million for Q3 2025, compared to $97.07 million for Q3 2024[20] - For the three months ended September 30, 2025, the net loss was $45,057,000, compared to a net loss of $172,455,000 for the same period in 2024[23] - The company reported a net loss of $45.1 million for the three months ended September 30, 2025, compared to a net loss of $172.5 million in the same period of 2024[161] - Basic and diluted net loss per Class A common share for the three months ended September 30, 2025, was $(0.18), an improvement from $(0.68) in the same period of 2024[128] Revenue Breakdown - For the nine months ended September 30, 2025, total revenue was $135.88 million, down from $202.63 million in the same period of 2024, indicating a decrease of about 32.9%[42][43] - Nucleic Acid Production segment revenue for the three months ended September 30, 2025, was $25.35 million, compared to $53.84 million in the same period of 2024, reflecting a decline of approximately 53.0%[42][43] - Biologics Safety Testing segment revenue for the three months ended September 30, 2025, was $16.28 million, down from $15.18 million in the same period of 2024, showing an increase of about 7.3%[42][43] - Total revenue for the three months ended September 30, 2025, was $25.4 million in Nucleic Acid Production and $16.3 million in Biologics Safety Testing, compared to $53.8 million and $15.2 million for the same period in 2024[162] - For the nine months ended September 30, 2025, total revenue was $85.2 million in Nucleic Acid Production and $50.7 million in Biologics Safety Testing, down from $154.4 million and $48.2 million in 2024[163] Expenses and Costs - Total operating expenses in Q3 2025 were $46.69 million, significantly lower than $197.85 million in Q3 2024, primarily due to a reduction in goodwill impairment[19] - Selling, general and administrative expenses were $35.4 million and $113.5 million for the three and nine months ended September 30, 2025, respectively, compared to $39.1 million and $120.5 million in 2024[164] - Research and development expenses for the nine months ended September 30, 2025, were $13.61 million, slightly down from $14.66 million in the same period of 2024[19] - Research and development expenses for the three and nine months ended September 30, 2025, were $3.8 million and $13.6 million, respectively, compared to $4.7 million and $14.7 million for the same periods in 2024[165] - Total costs of revenue for the three months ended September 30, 2025, were $25.0 million, compared to $25.2 million in the same period of 2024, indicating a slight decrease[161] Cash and Assets - Cash and cash equivalents decreased to $243.57 million as of September 30, 2025, from $322.40 million as of December 31, 2024[17] - Total assets decreased to $849.19 million as of September 30, 2025, down from $1,008.24 million as of December 31, 2024[17] - Total stockholders' equity attributable to Maravai LifeSciences Holdings, Inc. was $245.44 million as of September 30, 2025, a decrease from $325.29 million as of December 31, 2024[17] - Total stockholders' equity as of September 30, 2025, was $431,859,000, a decrease from $612,699,000 as of September 30, 2024[24] - Cash and cash equivalents at the end of the period were $243,574,000, down from $578,157,000 at the end of September 2024[27] Goodwill and Impairment - The Company incurred a goodwill impairment of $42,884,000 for the nine months ended September 30, 2025[27] - The Company's goodwill balance as of September 30, 2025, was $129.429 million, down from $159.878 million as of December 31, 2024, primarily due to a $42.884 million impairment in the Nucleic Acid Production segment[82] - Goodwill impairment of $12.4 million was recorded for the TriLink reporting unit in Q1 2025, and $30.4 million for the Alphazyme reporting unit in Q2 2025 due to lower projected revenues[177][178] Corporate Actions and Plans - The Company implemented a corporate realignment plan in August 2025, terminating approximately 25% of its workforce to reduce operating costs and focus on sustainable long-term growth[79] - Restructuring charges for the three months ended September 30, 2025, totaled $7.386 million, with severance and other compensation expenses accounting for $6.448 million[80] - The company expects the 2025 Corporate Realignment Plan to lower annualized expenses by more than $50.0 million through headcount and non-headcount-related reductions[174] - The company is implementing a phased approach to the 2025 Corporate Realignment Plan, with completion anticipated by the end of Q3 2026[172] Acquisitions - The Company completed the acquisition of Molecular Assemblies for a total purchase consideration of $11.2 million, with $9.2 million paid in cash[63] - The acquisition of Officinae Bio was completed for a total purchase consideration of $15.1 million, with $9.9 million paid in cash[72] - The estimated fair value of identifiable assets acquired from Molecular included $4.57 million in property and equipment and $3.2 million in intangible assets[66] - The estimated fair value of identifiable intangible assets acquired from Officinae included $8.1 million for developed technology and $80,000 for customer relationships[76] Tax and Liabilities - The effective tax rate for the three months ended September 30, 2025, was 0.2%, compared to (0.2)% for the same period in 2024[131] - The Company had unrecognized tax benefits of $0.4 million as of September 30, 2025, down from $3.6 million as of December 31, 2024[133] - The Company had no outstanding liabilities under the Tax Receivable Agreement (TRA) as of September 30, 2025[143] Inventory and Current Liabilities - Total inventory decreased from $50.1 million as of December 31, 2024, to $45.3 million as of September 30, 2025[102] - Accrued expenses and other current liabilities increased from $39.6 million as of December 31, 2024, to $48.1 million as of September 30, 2025[103]

Maravai LifeSciences Holdings, Inc. (MRVI) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to a loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced a loss of $0.08, delivering a surprise of -33.33%.Over the last four quarters, ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $41.6 million, down from $69 million in Q3 2024, representing a decline of approximately 40% [15][16] - Adjusted EBITDA for Q3 2025 was a negative $10.8 million compared to a positive $16.2 million in Q3 2024 [16][23] - GAAP net loss before non-controlling interest was $45.1 million for Q3 2025, compared to a loss of $172.5 million in Q3 2024, which included a goodwill impairment charge of $154.2 million [16][23] Business Line Data and Key Metrics Changes - Biologics Safety Testing (BST) revenue was $16.3 million, growing 7% year-over-year, while Nucleic Acid Products (NAP) revenue was $25.4 million, declining 53% year-over-year [3][19] - The base NAP business, excluding GMP COVID CleanCap, was down 29% year-over-year [16][19] - Adjusted EBITDA for BST was $10.5 million, with an adjusted EBITDA margin of 64.8% [19][20] Market Data and Key Metrics Changes - Revenue by geography: 60% from North America, 19% from EMEA, 12% from Asia-Pacific (excluding China), 8% from China, and 1% from Latin and Central America [15][16] - Strength in BST was primarily from the U.S. and European markets, which grew 8% and 17% year-over-year, respectively [5][19] - China market showed weakness, with a reported decline of 12% [57][60] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA and cash flow in 2026, with a focus on operational excellence and revenue growth [4][13] - A strategic realignment and cost reduction initiative is underway, targeting over $50 million in annualized expense reductions [4][21] - The introduction of new technologies like MODTAIL is expected to broaden the customer base and drive future revenue, particularly in CAR T and oncology applications [9][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Q4 performance, citing strong order velocity and visibility into future growth [18][48] - The company anticipates closing 2025 with revenue of approximately $185 million, implying an 18% growth in Q4 over Q3 [22][23] - Management noted that the funding environment for discovery remains challenging but is showing signs of stabilization [43][44] Other Important Information - The company has stabilized operations and significantly reduced expenses, strengthening its balance sheet [4][21] - The launch of the mRNA Builder platform has doubled the number of orders placed, enhancing operational efficiency [11][68] Q&A Session Summary Question: Anticipated revenue contribution from COVID CleanCap in 2026 - Management indicated that the $10-$20 million revenue contribution is based on a combination of orders in hand and ongoing customer discussions [26] Question: Cost savings breakdown for Q4 and next year - Cost savings are expected to come from various categories, with approximately 40-50% from labor cost reductions and a roughly 50/50 split between COGS and OpEx [27] Question: Key findings from the strategic review - The company was found to be over-structured, and the restructuring has led to improved operational efficiency and engagement from the leadership team [32][33] Question: Performance of BST and regional strength - Management confirmed strength in the U.S. and Europe, while China remains weak, but there are signs of improvement in funding [34][35] Question: Gross margin expectations for Q4 and 2026 - Management expects improvements in gross margin due to cost reductions and a favorable product mix in Q4 [37][38] Question: Confidence in GMP business excluding COVID - Management expressed high confidence in Q4 and 2026, citing strong order visibility and binding purchase commitments [47][49]

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NASDAQ: MRVI Q3 2025 Financial Results November 6, 2025 Agenda | | Welcome | Deb Hart, Head of Investor Relations | | --- | --- | --- | | 02 | Business Updates | Bernd Brust, Chief Executive Officer | | 03 | Financial Results and Guidance | Raj Asarpota, Chief Financial Officer | | 04 | Q&A Session | Bernd Brust, Chief Executive Officer Raj Asarpota, Chief Financial Officer Chanfeng Zhao, Chief Scientific Officer | | 01 | | | © 2025 Maravai LifeSciences 2 Past performance may not be a reliable indicator of ...

Financial Performance - Revenue for Q3 2025 was $41.6 million, a 39.7% decrease year-over-year from $69.0 million in Q3 2024[5] - Net loss for Q3 2025 was $(45.1) million, compared to a net loss of $(172.5) million in Q3 2024[7] - Adjusted EBITDA for Q3 2025 was $(10.8) million, down from $16.2 million in Q3 2024[7] - Revenue for the first nine months of 2025 was $135.9 million, a 32.9% decrease from $202.6 million in the same period of 2024[8] - Full year 2025 revenue guidance is approximately $185.0 million, excluding potential revenue from high-volume CleanCap orders and new acquisitions[3] Revenue Segments - Nucleic Acid Production revenue decreased by 52.9% year-over-year to $25.4 million, primarily due to a lack of high-volume CleanCap orders[9] - Biologics Safety Testing revenue increased by 7.2% year-over-year to $16.3 million, driven by strength in nearly all product lines[9] Future Outlook - The company expects TriLink to deliver double-digit sequential revenue growth in Q4 2025[2] - Maravai expects TriLink to achieve double-digit sequential revenue growth in Q4 2025, indicating a positive outlook for the upcoming quarter[25] - The company anticipates delivering attractive financial results in both Q4 2025 and 2026, reflecting confidence in its operational strategies[25] - The company aims to strengthen its position to deliver attractive financial results in 2026[3] Loss and Adjustments - For the three months ended September 30, 2025, Maravai reported a net loss attributable to the company of $25.6 million, compared to a net loss of $97.1 million for the same period in 2024[15] - The adjusted net loss (non-GAAP) for the three months ended September 30, 2025, was $21.3 million, while for the nine months ended September 30, 2025, it was $62.6 million[15] - The adjusted fully diluted loss per share (non-GAAP) for the three months ended September 30, 2025, was $0.08, compared to $0.01 for the same period in 2024[15] - The company incurred $9.1 million in stock-based compensation for the three months ended September 30, 2025, compared to $13.1 million for the same period in 2024[15] Organizational Changes and Costs - Organizational restructuring and operating cost reduction initiatives are on track[1] - Maravai's leadership transition in June 2025 resulted in executive leadership transition costs of $2.0 million for the nine months ended September 30, 2025[17] - Maravai's retention payment expenses related to acquisitions totaled $2.9 million for the three months ended September 30, 2024[16] Market Position and Risks - The company is focused on expanding its market presence in the fields of nucleic acid synthesis and biologics safety testing, serving leading biopharmaceutical and vaccine companies[23] - Maravai faces competition from larger life science, pharmaceutical, and biotechnology companies that may develop superior products, potentially rendering Maravai's offerings obsolete[27] - The company is dependent on a limited number of customers for a significant portion of its revenue, which poses risks to maintaining these relationships[27] - There are risks related to the potential failure of Maravai's products to meet quality standards and market acceptance[27] - The company is exposed to geopolitical instability and natural disasters, which could adversely affect operations[27] - Maravai's ability to generate sufficient cash flow to service its existing debt obligations is critical, given its current level of indebtedness[27] - The company may face challenges in managing strategic acquisitions and organic growth opportunities effectively[27] - Risks associated with compliance to intellectual property obligations and potential infringement claims could impact operations[27] Financial Controls and Impairments - Maravai's ability to maintain effective internal controls over financial reporting is essential for timely remediation of material weaknesses[28] - The potential for future impairment of goodwill and intangible assets could negatively affect Maravai's financial position[28] - The company recognized a goodwill impairment of $154.2 million for its Nucleic Acid Production segment during the nine months ended September 30, 2024[17] - Maravai's organizational structure includes a Tax Receivable Agreement that may require substantial future cash payments, impacting financial flexibility[28]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Maravai LifeSciences Holdings, Inc. due to a class action complaint alleging breaches of fiduciary duties by the company's board of directors during a specified class period [2][8]. Group 1: Company Overview - Maravai LifeSciences Holdings, Inc. is facing legal scrutiny following a class action complaint filed on March 3, 2025, concerning events from August 7, 2024, to February 24, 2025 [2]. - The company announced a postponement of its fiscal 2024 earnings release and a delay in filing its annual report due to an error in revenue recognition, which resulted in approximately $3.9 million being incorrectly recorded [8]. Group 2: Financial Impact - Following the announcement of the revenue recognition error, Maravai's share price fell by $0.87, or 21.70%, closing at $3.14 per share on February 25, 2025, amid unusually heavy trading volume [8]. - The class action complaint alleges that the company made materially false and misleading statements regarding its financial health, including inadequate internal controls over financial reporting and overstated goodwill [8]. Group 3: Legal Actions - Investors who purchased Maravai stock during the specified class period are encouraged to contact Bragar Eagel & Squire for discussions regarding their legal rights and options [1][4]. - The law firm emphasizes that there is no cost or obligation for investors to inquire about these claims [4].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Maravai LifeSciences Holdings, Inc. due to a class action complaint alleging breaches of fiduciary duties by the board of directors during a specified class period [2][8]. Group 1: Company Overview - Maravai LifeSciences announced a postponement of its fiscal 2024 earnings release and a delay in filing its annual report on Form 10-K due to an error in revenue recognition, which resulted in approximately $3.9 million being incorrectly recorded [8]. - The company identified a material weakness in its internal controls over revenue recognition and required additional time to assess a potential non-cash impairment charge related to goodwill from its acquisition of Alphazyme LLC [8]. Group 2: Financial Impact - Following the announcement of the revenue recognition error, Maravai's share price fell by $0.87, or 21.70%, closing at $3.14 per share on February 25, 2025, amid unusually heavy trading volume [8]. Group 3: Legal Proceedings - The class action complaint alleges that Maravai's executives made materially false and misleading statements and failed to disclose adverse facts about the company's financial reporting and operations during the class period [8]. - Specific allegations include inadequate internal controls over financial reporting, inaccurate revenue recognition, overstated goodwill, and misleading positive statements about the company's business prospects [8].