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Rapid Micro Biosystems (NasdaqCM:RPID) FY Conference September 09, 2025 11:00 AM ET Speaker0Good morning, everyone, and thank you for joining day two of the H. C. Wainwright twenty seventh Annual Global Investment Conference twenty twenty five. My name is Daniel Smith, and I'm an H. C.Wainwright Equity Research Associate in Biotechnology. With that said, let me introduce you to our presenter for the session. I'd like to welcome Sean Wurches, CFO of Rapid Micro Biosystems. We're accelerating the detection of ...

Company Overview - Rapid Micro Biosystems, Inc. is an innovative life sciences technology company focused on providing automation solutions for the efficient manufacturing and safe release of healthcare products [3] - The company is headquartered in Lexington, Massachusetts, with U.S. manufacturing in Lowell, Massachusetts, and global locations in Switzerland, Germany, and the Netherlands [3] Product and Technology - The flagship product, Growth Direct system, automates microbial quality control (MQC) testing workflows, modernizing traditional manual processes in pharmaceutical manufacturing [3] - The Growth Direct system enhances operational efficiency, accuracy, compliance with data integrity regulations, and decision-making speed, ensuring a consistent supply of healthcare products [3] Upcoming Events - The company will present at the H.C. Wainwright 27th Annual Global Investment Conference in New York on September 9, 2025, at 11:00 a.m. ET [2] - A live webcast of the presentation will be available on the company's investor relations website and will be archived for replay [2]

**FORM 10-Q Filing Information** [**Registrant Information**](index=1&type=section&id=Registrant%20Information) Provides basic identification details of Rapid Micro Biosystems, Inc. as the registrant for the Form 10-Q filing for the quarterly period ended June 30, 2025, including its state of incorporation, principal executive offices, telephone number, and SEC file number, confirming compliance with SEC filing requirements and identifying the company as a non-accelerated filer, smaller reporting company, and emerging growth company - Registrant: Rapid Micro Biosystems, Inc[2](index=2&type=chunk) - Filing Period: Quarterly period ended June 30, 2025[2](index=2&type=chunk) - SEC File Number: 001-40592[2](index=2&type=chunk) Registrant Status | Status | Indication | | :------------------------ | :--------- | | Large accelerated filer | o | | Accelerated filer | o | | Non-accelerated filer | x | | Smaller reporting company | x | | Emerging growth company | x | - Outstanding Shares as of August 8, 2025: Class A common stock: **39,710,799 shares**; Class B common stock: **4,499,529 shares**[6](index=6&type=chunk) **TABLE OF CONTENTS** **FORWARD-LOOKING STATEMENTS** [**Safe Harbor and Identification**](index=3&type=section&id=Safe%20Harbor%20and%20Identification) States that the Quarterly Report on Form 10-Q contains forward-looking statements intended to be covered by safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, identifiable by terms like 'may,' 'will,' 'expects,' and 'plans,' based on current expectations and projections about future events and financial trends - Forward-looking statements are covered by safe harbor provisions of Section 27A of the Securities Act and Section 21E of the Exchange Act[11](index=11&type=chunk) - Identifiable by terms such as 'may,' 'will,' 'should,' 'expects,' 'plans,' 'anticipates,' 'could,' 'intends,' 'targets,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'forecasts,' 'predicts,' 'potential' or 'continue' or their negatives[11](index=11&type=chunk) [**Key Forward-Looking Statements and Risks**](index=3&type=section&id=Key%20Forward-Looking%20Statements%20and%20Risks) Forward-looking statements include expectations regarding the Growth Direct platform, future financial results (revenue, gross margin, operating expenses, cash flow), the goal of achieving positive cash flow by end of 2027, impact of new debt facility, funding requirements, customer base expansion, R&D activities, and intellectual property protection, which are subject to known and unknown risks, uncertainties, and important factors, particularly those discussed in the 'Risk Factors' section - Forward-looking statements include business strategy for Growth Direct platform, future results of operations and financial position (revenue, gross margin, operating expenses, positive cash flow), and the goal to achieve positive cash flow by end of 2027[13](index=13&type=chunk) - Also covers expected impact of the recently-announced debt facility, future funding requirements, ability to maintain and expand customer base, effectiveness of sales force, anticipated market trends, R&D activities, and intellectual property protection[13](index=13&type=chunk) - Caution: Actual results, performance, or achievements may differ materially due to known and unknown risks, uncertainties, and other important factors, including those in Part II, Item 1A, 'Risk Factors'[12](index=12&type=chunk) **SUMMARY RISK FACTORS** [**Principal Risks and Uncertainties**](index=4&type=section&id=Principal%20Risks%20and%20Uncertainties) Provides a concise overview of the primary risks and uncertainties affecting the company's business, including significant historical losses and expected future losses, challenges in achieving and maintaining positive cash flow, dependence on the commercial success of the Growth Direct platform, and potential fluctuations in operating results, along with other risks such as the need for additional capital, indebtedness, market competition, new product development complexities, regulatory compliance, inventory management, and intellectual property protection - Incurred significant losses since inception and expects future losses; may not achieve positive cash flow and profitability[16](index=16&type=chunk) - Business relies on the commercial success of the Growth Direct platform, which may not be achieved or maintained[16](index=16&type=chunk) - Operating results have fluctuated and will continue to fluctuate, making future results difficult to predict[16](index=16&type=chunk) - May need to raise additional capital; existing and future indebtedness could adversely affect operations[16](index=16&type=chunk) - Challenges include maintaining market position, expanding customer base, timely new product development, managing inventory, and competing successfully[16](index=16&type=chunk)[21](index=21&type=chunk) - Risks also involve potential product liability lawsuits, loss of key management, manufacturing facility damage, reliance on third-party suppliers, and intellectual property protection issues[21](index=21&type=chunk) **TRADEMARKS** [**Trademark Usage Disclaimer**](index=5&type=section&id=Trademark%20Usage%20Disclaimer) Clarifies that trademarks and trade names in the report are referred to without ® and ™ symbols for convenience, but this should not be interpreted as a waiver of the company's full legal rights to these marks - Trademarks and trade names are used without ® and ™ symbols for convenience[18](index=18&type=chunk) - Such references do not indicate a waiver of the company's full rights under applicable law[18](index=18&type=chunk) **INTERNET POSTING OF INFORMATION** [**Investor Information Access**](index=5&type=section&id=Investor%20Information%20Access) The company routinely posts important investor information in the 'Investors' section of its website, www.rapidmicrobio.com, and encourages investors to consult it regularly, noting that the website content is not incorporated by reference into this Form 10-Q - Important investor information is routinely posted in the 'Investors' section of www.rapidmicrobio.com[20](index=20&type=chunk) - Website content is not incorporated by reference into this Form 10-Q[20](index=20&type=chunk) **Part I — Financial Information** [**Item 1. Financial Statements**](index=6&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for Rapid Micro Biosystems, Inc., including the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, financial instruments, and other relevant financial information for the periods ended June 30, 2025, and December 31, 2024 [**Condensed Consolidated Balance Sheets**](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show a decrease in total assets and stockholders' equity from December 31, 2024, to June 30, 2025, primarily driven by a reduction in short-term investments and an increase in accumulated deficit Condensed Consolidated Balance Sheets (Unaudited, In thousands) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :------------------ | | **Assets** | | | | Cash and cash equivalents | $18,333 | $16,911 | | Short-term investments | $12,922 | $33,821 | | Total current assets | $60,146 | $80,917 | | Total assets | $75,586 | $98,169 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $16,403 | $17,565 | | Total liabilities | $21,041 | $22,817 | | Accumulated deficit | $(498,395) | $(475,274) | | Total stockholders' equity | $54,545 | $75,352 | - **Total assets** decreased by **$22,583 thousand** (**23.0%**) from December 31, 2024, to June 30, 2025[23](index=23&type=chunk) - **Total stockholders' equity** decreased by **$20,807 thousand** (**27.6%**) over the same period, largely due to an increased **accumulated deficit**[23](index=23&type=chunk) [**Condensed Consolidated Statements of Operations**](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show an increase in total revenue for both the three and six months ended June 30, 2025, compared to the prior year, while **net loss** decreased, indicating improved operational efficiency Condensed Consolidated Statements of Operations (Unaudited, In thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Product revenue | $4,802 | $4,537 | $8,903 | $8,250 | | Service revenue | $2,460 | $2,081 | $5,564 | $3,979 | | Total revenue | $7,262 | $6,618 | $14,467 | $12,229 | | Total costs and operating expenses | $19,410 | $19,996 | $38,276 | $39,880 | | Loss from operations | $(12,148) | $(13,378) | $(23,809) | $(27,651) | | Net loss | $(11,858) | $(12,578) | $(23,121) | $(25,900) | | Net loss per share

Core Insights - Rapid Micro Biosystems, Inc. reported a quarterly loss of $0.27 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.26, but an improvement from a loss of $0.29 per share a year ago [1] - The company posted revenues of $7.26 million for the quarter, missing the Zacks Consensus Estimate by 0.52%, but showing growth from $6.62 million in the same quarter last year [2] - The stock has increased by approximately 262.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.4% [3] Earnings Outlook - The earnings outlook for Rapid Micro Biosystems is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.25 on revenues of $9.1 million, and for the current fiscal year at -$0.98 on revenues of $33.1 million [7] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Instruments industry, to which Rapid Micro Biosystems belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased by 10% year-over-year to $7,300,000, slightly above the midpoint of guidance [7][16] - Recurring revenue rose by 15% to $4,400,000, driven by growth in consumables and service contracts [17] - Gross margins improved to 4%, a seven percentage point increase from the prior year, marking the fourth consecutive quarter of positive gross margins [8][17] Business Line Data and Key Metrics Changes - Product revenue increased by 6% to $4,800,000, supported by mid-teens growth in consumables and higher software sales [16] - Service revenue grew by 18% to $2,500,000, attributed to higher field service activity and increased contract revenue [17] - Four GrowthDirect systems were placed in Q2, maintaining guidance despite delays in customer site readiness [8][16] Market Data and Key Metrics Changes - The company is well-positioned to benefit from significant investments in new pharmaceutical manufacturing capacity in the US, which is expected to incorporate advanced technologies [11][12] - Global trade dynamics are creating uncertainty in customer purchase decisions, particularly for larger capital investments [11][12] Company Strategy and Development Direction - The company announced a new $45,000,000 term loan facility to support long-term strategy and positive cash flow [6][7] - The partnership with MilliporeSigma is expected to enhance product innovation and gross margin expansion over the long term [9][10] - The company is focusing on operational improvements and cost reduction initiatives to drive gross margin expansion [13][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing industry trends and customer support for automation and new technologies [11][12] - There is cautious optimism regarding the timing and scale of customer purchase decisions due to global trade dynamics [12][21] - The company expects to finish the year toward the low end of its previous guidance range for system placements due to near-term uncertainties [19][20] Other Important Information - The company plans to participate in several industry events, including the annual PDA Micro Conference and PharmaLab Congress, to showcase the GrowthDirect platform [14] - The company expects to complete at least 18 validations in 2025, with at least three in Q3 [20] Q&A Session Summary Question: Impact of pharma delays on decision-making - Management noted mixed signals in pharma decision-making but remains encouraged by ongoing conversations and projects with existing customers [24][25] Question: System placements and market share in CAR T - The majority of installations are in existing facilities, but new builds are expected to increase automation and efficiency, benefiting the company [27][28] Question: Reasons for lower guidance on system placements - Management cited trade dynamics and near-term uncertainties as reasons for expecting to finish the year at the lower end of the guidance range [30][31] Question: Stability of consumable revenue growth - Management expects sequential growth in consumables revenue in Q3 and Q4, driven by new high-volume sites coming online [32][34] Question: Near-term levers for gross margin improvement - Focus areas include product cost reduction, procurement efficiencies, and manufacturing improvements, with significant progress expected [37][39] Question: Timing for onshoring initiatives - Management anticipates benefits from onshoring initiatives but noted that specific timing remains uncertain due to construction and equipment ordering dynamics [42][46] Question: Attitude differences between existing and potential customers - Existing customers tend to be more resilient and have ongoing projects, while new customers may be more cautious in the current environment [50][52]

Exhibit 99.1 Rapid Micro Biosystems Reports Second Quarter 2025 Financial Results Lexington, MA, August 12, 2025 (GLOBE NEWSWIRE) -- Rapid Micro Biosystems, Inc. (Nasdaq: RPID) (the "Company"), an innovative life sciences technology company providing mission critical automation solutions to facilitate the efficient manufacturing and fast, safe release of healthcare products, today announced its financial results for the second quarter ended June 30, 2025. "Our second quarter results reflect broad-based, con ...

Core Viewpoint - Rapid Micro Biosystems, Inc. reported a 10% increase in total revenue for Q2 2025, driven by strong service revenue growth and reaffirmed its full-year revenue guidance of at least $32 million [2][7][9]. Financial Performance - Total revenue for Q2 2025 was $7.3 million, up from $6.6 million in Q2 2024, with service revenue increasing by 18% to $2.5 million and product revenue rising by 6% to $4.8 million [3][6][9]. - Recurring revenue grew by 15% to $4.4 million compared to $3.8 million in Q2 2024 [3][9]. - Gross margin improved to 4%, a seven-percentage point increase from the negative 3% in Q2 2024 [4][9]. Cost and Expenses - Total cost of revenue increased by 3% to $7.0 million in Q2 2025, while total operating expenses decreased by 6% to $12.4 million [4][5]. - General and administrative expenses rose by 4%, while research and development and sales and marketing expenses both decreased by 14% [5]. Net Loss and Cash Position - The net loss for Q2 2025 was $11.9 million, an improvement from the $12.6 million loss in Q2 2024, with net loss per share decreasing from $0.29 to $0.27 [6][9]. - As of June 30, 2025, the company had approximately $32 million in cash, cash equivalents, short-term investments, and restricted cash [6][21]. Loan Facility - The company announced a new five-year, $45 million term loan facility, with $20 million funded upfront, which is expected to strengthen its financial position [2][10].

Core Viewpoint - Rapid Micro Biosystems has secured a five-year, $45 million term loan facility with Trinity Capital to enhance its financial position and support long-term growth initiatives [1][3]. Financial Details - The loan facility consists of four tranches: $20 million drawn at closing, $20 million available upon achieving specific milestones, and a $5 million tranche at the lender's discretion [3][7]. - The interest rate on the loan is initially set at 11.5% per annum, with a 36-month interest-only period [3]. Use of Proceeds - Proceeds from the loan will be allocated for general corporate purposes, including global expansion of the Growth Direct system and investments in manufacturing efficiencies and cost reduction [2][3]. Company Overview - Rapid Micro Biosystems specializes in automation solutions for the healthcare sector, focusing on the efficient manufacturing and release of products like biologics and vaccines [5]. - The flagship Growth Direct system automates microbial quality control testing, improving speed, accuracy, and compliance in pharmaceutical manufacturing [4][5].

Core Viewpoint - Rapid Micro Biosystems, Inc. is set to release its second quarter 2025 financial results on August 12, 2025, prior to market opening, indicating a focus on transparency and communication with investors [1]. Company Overview - Rapid Micro Biosystems is a life sciences technology company that provides automation solutions aimed at improving the manufacturing and release processes of healthcare products, including biologics, vaccines, cell and gene therapies, and sterile injectables [3]. - The company's flagship product, the Growth Direct system, modernizes microbial quality control (MQC) testing workflows, enhancing operational efficiency and compliance with data integrity regulations [3]. - The company is headquartered in Lexington, Massachusetts, with manufacturing facilities in Lowell, Massachusetts, and additional global locations in Switzerland, Germany, and the Netherlands [3]. Upcoming Events - The management team will host a webcast conference call on August 12, 2025, at 8:30 a.m. ET, providing an opportunity for stakeholders to engage with the company's leadership [2]. - The live audio webcast will be available on the company's website and will be archived for later access [2].