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].

Core Insights - Rapid Micro Biosystems, Inc. has appointed Dr. Dafni Bika to its Board of Directors, enhancing its leadership team with her extensive experience in pharmaceutical development and manufacturing [1][2][3] Company Overview - Rapid Micro Biosystems is a life sciences technology company focused on automation solutions for efficient manufacturing and safe release of healthcare products, including biologics, vaccines, and sterile injectables [4] - The company's flagship product, the Growth Direct system, modernizes microbial quality control testing workflows, improving speed, accuracy, operational efficiency, and compliance with data integrity regulations [4] Leadership and Expertise - Dr. Bika brings over 25 years of leadership experience in the pharmaceutical industry, having held senior roles at AstraZeneca, Bristol-Myers Squibb, and Merck [2][3] - Her academic credentials include a Ph.D. in Materials Science and Engineering from the University of Pennsylvania, a Master of Science from the University of Rochester, and a Diploma in Chemical Engineering from the National Technical University of Athens [3]

Part I [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2025 financial statements show a net loss of $11.3 million and total assets of $85.4 million [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $85.4 million, driven by reduced short-term investments, while liabilities and equity also declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $18,906 | $16,911 | | Short-term investments | $22,764 | $33,821 | | Total current assets | $69,182 | $80,917 | | Total assets | $85,434 | $98,169 | | **Liabilities & Equity** | | | | Total current liabilities | $14,996 | $17,565 | | Total liabilities | $19,943 | $22,817 | | Total stockholders' equity | $65,491 | $75,352 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue increased to $7.2 million, narrowing the loss from operations to $11.7 million and net loss to $11.3 million Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $7,205 | $5,611 | | Product Revenue | $4,101 | $3,713 | | Service Revenue | $3,104 | $1,898 | | Total Costs and Operating Expenses | $18,866 | $19,884 | | Loss from Operations | $(11,661) | $(14,273) | | Net Loss | $(11,263) | $(13,322) | | Net Loss Per Share | $(0.26) | $(0.31) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities decreased to $9.1 million, with overall cash increasing by $2.0 million to $19.3 million Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(9,065) | $(15,525) | | Net cash provided by investing activities | $10,681 | $13,515 | | Net cash provided by financing activities | $379 | $158 | | Net increase (decrease) in cash | $1,995 | $(1,852) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, significant customer concentrations, and the company's liquidity outlook for the next twelve months - The company expects its existing cash, cash equivalents, and investments will be sufficient to fund operating expenses and capital expenditure requirements for at least **twelve months** from the financial statement issuance date[39](index=39&type=chunk) - For Q1 2025, **three customers** represented a significant concentration of revenue: Customer A (**17.4%**), Customer B (**15.6%**), and Customer C (**12.3%**), totaling **45.3%** of total revenue[43](index=43&type=chunk) Disaggregated Revenue (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Recurring | $3,969 | $3,743 | | Non-recurring | $3,236 | $1,868 | | **Total Revenue** | **$7,205** | **$5,611** | - As of March 31, 2025, total unrecognized compensation expense was **$3.0 million** for stock options and **$4.5 million** for restricted stock units, expected to be recognized over a weighted average period of **1.1** and **1.3 years**, respectively[92](index=92&type=chunk) - The company has minimum purchase commitments with suppliers of **$1.1 million** for the remainder of 2025, **$1.8 million** for 2026, and **$1.6 million** for 2027[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting 28.4% revenue growth, positive gross margin, and reduced expenses [Overview and Recent Developments](index=27&type=section&id=Overview%20and%20Recent%20Developments) Automated MQC platform provider entered global distribution agreement with MilliporeSigma despite Q1 2025 net loss - In **February 2025**, the company entered into a Distribution and Collaboration Agreement with **MilliporeSigma**, granting it a **global, co-exclusive** right to sell Rapid Micro's products, with MilliporeSigma committed to purchasing a **minimum number** of Growth Direct systems over the **first two years**[120](index=120&type=chunk)[121](index=121&type=chunk) [Key Business Metrics](index=30&type=section&id=Key%20Business%20Metrics) Key business metrics show steady system placements, a significant increase in validated systems, and 6.0% growth in recurring revenue Key Business Metrics Comparison | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Systems placed in period | 3 | 3 | 0.0% | | Cumulative systems placed | 165 | 144 | 14.6% | | Systems validated in period | 9 | 3 | 200.0% | | Cumulative systems validated | 146 | 124 | 17.7% | | Recurring revenue (in thousands) | $3,969 | $3,743 | 6.0% | [Results of Operations Comparison (Q1 2025 vs. Q1 2024)](index=35&type=section&id=Results%20of%20Operations%20Comparison) Total revenue increased by 28.4% to $7.2 million, driven by service revenue growth, while operating expenses decreased by 5.1% - Service revenue increased by **$1.2 million** (**63.5%**) due to more validations, installations, and higher service contract revenue from a larger base of validated systems[169](index=169&type=chunk) - Cost of product revenue decreased by **2.8%** and cost of service revenue decreased by **9.6%**, driven by lower labor and headcount-related costs from cost reduction initiatives[170](index=170&type=chunk) - Sales and marketing expenses decreased by **$0.5 million** (**16.2%**), and R&D expenses decreased by **$0.2 million** (**5.7%**), primarily due to lower headcount-related costs from the **August 2024** cost reduction program[171](index=171&type=chunk)[172](index=172&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company held $42.0 million in cash and investments, deemed sufficient for the next 12 months, with improved operating cash flow Cash and Investment Balances (in thousands) | Asset Type | March 31, 2025 | | :--- | :--- | | Cash and cash equivalents | $18,906 | | Short-term investments | $22,764 | | Restricted cash | $365 | | **Total** | **$42,035** | - Net cash used in operating activities decreased by **$6.5 million** year-over-year, from **$15.5 million** in Q1 2024 to **$9.1 million** in Q1 2025, primarily due to lower personnel-related costs and improved working capital management[182](index=182&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure, primarily from interest rates and inflation, remains unchanged since its 2024 Form 10-K filing - The company's primary market risk exposures are related to fluctuations in **interest rates** and **inflationary pressure**[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The principal executive officer and principal financial officer concluded that as of March 31, 2025, the company's disclosure controls and procedures were **effective** at the **reasonable assurance level**[194](index=194&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter ended March 31, 2025, that have **materially affected**, or are reasonably likely to materially affect, internal controls[195](index=195&type=chunk) Part II [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material litigation or legal proceedings expected to adversely affect its business - The company is **not currently a party** to any **material litigation** or legal proceedings[197](index=197&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including historical losses, platform dependence, supply chain vulnerabilities, and IP challenges [Risks Related to Financial Position and Capital](index=40&type=section&id=Risks%20Related%20to%20Financial%20Position%20and%20Capital) The company has a history of significant losses and may not achieve profitability, facing risks from reliance on its platform and public guidance - The company has incurred **significant losses** since inception, with an accumulated deficit of **$486.5 million** as of March 31, 2025, and may **not achieve or maintain positive cash flow and profitability**[200](index=200&type=chunk) - The company has **failed in the past** and may **fail in the future** to meet **publicly announced guidance**, which could **adversely affect its stock price**[207](index=207&type=chunk)[210](index=210&type=chunk) [Risks Related to Business and Strategy](index=44&type=section&id=Risks%20Related%20to%20Business%20and%20Strategy) Business risks include market position, new product development, cybersecurity, data privacy, AI use, and the complexities of strategic partnerships - The company's business relies on establishing and maintaining its position as a **leader in automated MQC testing**, and it may **not be successful** in expanding with existing customers or driving adoption with new ones[216](index=216&type=chunk)[217](index=217&type=chunk) - The use of AI technologies introduces risks related to **unauthorized data disclosure**, **flawed outputs**, and a **complex, evolving regulatory landscape** that could increase compliance costs and legal liability[268](index=268&type=chunk) - The strategic collaboration with MilliporeSigma carries risks, including **dependence on the distributor's performance**, potential **channel conflicts**, **adverse impacts on margins**, and **challenges in expanding** to new fields and geographies[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) [Risks Related to Manufacturing and Supply](index=58&type=section&id=Risks%20Related%20to%20Manufacturing%20and%20Supply) Manufacturing risks include facility concentration, dependence on single-source suppliers for critical components, and inventory management challenges - The company relies on **single-source suppliers** for certain **critical components** of its Growth Direct system and consumables; for example, the manufacturer of the camera used in the system has **discontinued its production**, requiring the company to manage its existing supply while **qualifying a new supplier**[296](index=296&type=chunk) [Risks Related to Intellectual Property](index=61&type=section&id=Risks%20Related%20to%20Intellectual%20Property) IP risks include limited patent protection, potential government 'march-in rights,' litigation, and technology compromise from open-source software - Patents have a **limited lifespan**; while the company's patent portfolio extends through **2045**, certain earlier U.S. patents are scheduled to expire in **2032**, which could **open the company to competition**[308](index=308&type=chunk) - The **U.S. government** retains certain rights, including potential **'march-in rights,'** to inventions developed with **federal funding** from BARDA, which could **allow the government or third parties to use the technology**[310](index=310&type=chunk) [Risks Related to Common Stock](index=65&type=section&id=Risks%20Related%20to%20Common%20Stock) Common stock risks include price volatility, potential Nasdaq delisting, limited Class A stockholder influence, and reduced disclosure as an 'emerging growth company' - The company has previously received **non-compliance notifications** from Nasdaq for its stock price falling below the **$1.00 minimum bid requirement**; while compliance was regained, there is a **risk of future non-compliance and potential delisting**[329](index=329&type=chunk)[330](index=330&type=chunk) - The company has been and may continue to be subject to actions by **activist stockholders** or **unsolicited acquisition proposals**, which can be **costly, time-consuming, and divert management's attention**[348](index=348&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No unregistered sales or issuer purchases of equity securities occurred, and the IPO proceeds' intended use remains unchanged - There were **no unregistered sales** of equity securities or **purchases** of equity securities by the issuer during the quarter[363](index=363&type=chunk) [Item 5. Other Information](index=72&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading arrangements were adopted or terminated, though officers entered sell-to-cover arrangements for tax obligations - **No directors or officers** adopted or terminated a **Rule 10b5-1 trading plan** during the quarter ended March 31, 2025[367](index=367&type=chunk) - Company officers have entered into **sell-to-cover arrangements** to authorize pre-arranged sales of shares to satisfy **tax withholding obligations** arising from the vesting of restricted stock units[368](index=368&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications

Financial Data and Key Metrics Changes - Total first quarter revenue increased by 28% to $7.2 million, marking the tenth consecutive quarter of meeting or exceeding guidance [8][14] - Service revenue saw a significant increase of 64% year over year, reaching a quarterly record of $3.1 million [8][15] - First quarter gross margins improved to 6%, a 33 percentage point increase compared to the prior year quarter [9][18] - Net loss for the first quarter was $11.3 million, an improvement from a net loss of $13.3 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - Product revenue, which includes systems and consumables, increased by 10% to $4.1 million [14] - Service revenue growth was driven by higher validation activity and an increase in service contract revenue due to more validated GrowthDirect systems [15][17] - Recurring revenue, consisting of consumables and service contracts, increased by 6% to $4 million [16] Market Data and Key Metrics Changes - Global pharmaceutical and biotech companies are planning investments exceeding $150 billion to expand manufacturing capacities, which positions the company favorably to benefit from this trend [11] - The company is experiencing robust demand for the GrowthDirect system, with multiple customers recognizing its value proposition [10] Company Strategy and Development Direction - The collaboration with MilliporeSigma includes global co-exclusive rights to sell the GrowthDirect system and aims to improve gross margins and product costs [12] - The company is focused on expanding its sales funnel and improving manufacturing efficiencies to drive margin improvement [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while the business environment is incrementally more uncertain, key projects are being prioritized, which includes the GrowthDirect system [29] - The company does not expect a material impact from tariffs on its 2025 results, thanks to proactive supply chain strategies [20][32] Other Important Information - The company expects to burn approximately $30 million in cash for the full year 2025, which is a reduction compared to the previous year [25] - The company reaffirmed its full year 2025 total revenue guidance of at least $32 million [21] Q&A Session Summary Question: How is the business environment and customer interest in GrowthDirect? - Management indicated that key projects are being prioritized, and there is confidence in the demand for GrowthDirect despite a more uncertain environment [29] Question: What is the outlook for gross margins given tariff pressures? - Management expects the exit rate for gross margins to be higher than previously guided, with no significant impact from tariffs anticipated [38] Question: How many validations are expected this year compared to last year? - The company expects to complete at least 18 validations this year, slightly up from 16 validations last year [42] Question: What is the nature of the recent capital expenditures in the U.S.? - Management noted that the capital expenditures may signify a focused effort in the U.S., which the company plans to benefit from [46] Question: How is AI integrated into the company's long-term strategy? - The company is actively working on software advancements that include AI as part of its R&D roadmap [49]

Financial Data and Key Metrics Changes - Total first quarter revenue increased by 28% to $7.2 million, marking the tenth consecutive quarter of meeting or exceeding guidance [8][14] - Service revenue saw a significant increase of 64% year over year, reaching a quarterly record of $3.1 million [8][15] - First quarter gross margins improved to 6%, a 33 percentage point increase compared to the prior year quarter [9][18] - Net loss for the first quarter was $11.3 million, an improvement from a net loss of $13.3 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - Product revenue, which includes systems and consumables, increased by 10% to $4.1 million compared to $3.7 million in Q1 2024 [14][15] - Service revenue growth was driven by higher validation activity and increased service contract revenue due to more validated GrowthDirect systems [15][17] - Recurring revenue, consisting of consumables and service contracts, increased by 6% to $4 million [16] Market Data and Key Metrics Changes - Global pharmaceutical and biotech companies are planning investments exceeding $150 billion to expand manufacturing capacities, which is expected to benefit the company [11] - The company is well-positioned to take advantage of the trend towards new construction incorporating the latest technologies [11] Company Strategy and Development Direction - The collaboration with MilliporeSigma includes global co-exclusive rights to sell the GrowthDirect system and aims to improve gross margins and product costs [12][54] - The company is focused on accelerating GrowthDirect system placements and developing innovative products [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that while the business environment is incrementally more uncertain, key projects are being prioritized, which includes the GrowthDirect system [29] - The company expects to reaffirm its full-year 2025 total revenue guidance of at least $32 million, with system placements between 21 and 25 [21][24] Other Important Information - The company ended the first quarter with approximately $42 million in cash [19] - Operating expenses decreased by 5% to $12.1 million, largely due to operational efficiency programs [18] Q&A Session Summary Question: How is the business environment affecting prospects? - Management indicated that key projects are being prioritized, and the GrowthDirect system is part of that, providing confidence despite increased uncertainty [29] Question: What is the outlook for gross margins given tariff pressures? - Management expects the exit rate for gross margins to be higher than previously guided, with no significant impact from tariffs anticipated [38] Question: How many validations are expected this year compared to last year? - The company expects to complete at least 18 validations this year, slightly up from 16 last year, with potential for upside [42] Question: What is the significance of the recent CapEx in the U.S.? - Management noted that ongoing expansions by customers signify a focus on new projects, which typically adopt newer technology, benefiting the company [46] Question: How is AI integrated into the long-term strategy? - AI advancements are part of the R&D roadmap, with a focus on managing digital data generated by the GrowthDirect system [49] Question: How does the MilliporeSigma deal impact tariff exposure? - Management stated that while there is incremental uncertainty due to tariffs, there is no direct impact expected from the MilliporeSigma collaboration [51]

Financial Data and Key Metrics Changes - Total first quarter revenue increased by 28% to $7,200,000, marking the tenth consecutive quarter of meeting or exceeding guidance [6][12] - Service revenue saw a significant increase of 64% year over year, reaching a quarterly record of $3,100,000 [6][13] - First quarter gross margins improved to 6%, a 33 percentage point increase compared to the prior year quarter [7][15] - Net loss for the first quarter was $11,300,000, compared to a net loss of $13,300,000 in the same quarter last year [17] Business Line Data and Key Metrics Changes - Product revenue, which includes systems and consumables, increased by 10% to $4,100,000 [12] - Service revenue growth was driven by higher validation activity and an increase in service contract revenue [13] - Recurring revenue, consisting of consumables and service contracts, increased by 6% to $4,000,000 [13] Market Data and Key Metrics Changes - Global pharmaceutical and biotech companies are planning investments exceeding $150 billion to expand manufacturing capacities, which is expected to benefit the company [9] - The company is well positioned to take advantage of the trend of new construction incorporating the latest technologies [9] Company Strategy and Development Direction - The collaboration with MilliporeSigma includes global co-exclusive rights to sell the GrowthDirect system and aims to improve gross margins and product costs [10][11] - The company is focused on expanding its customer base and enhancing its product offerings through strategic partnerships [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the business environment is incrementally more uncertain, key projects are being prioritized by customers, which gives confidence in future orders [26] - The company expects to reaffirm its full year 2025 total revenue guidance of at least $32,000,000 [19] Other Important Information - The company ended the first quarter with approximately $42,000,000 in cash [17] - Operating expenses decreased by 5% to $12,100,000, largely due to operational efficiency programs [16] Q&A Session Summary Question: How is the business environment affecting prospects? - Management indicated that key projects are being prioritized, and there is confidence in the demand for GrowthDirect despite some uncertainty in the market [26] Question: What is the outlook for gross margins given tariff pressures? - Management expects the exit rate for margins to be higher than previously guided, with no significant impact from tariffs anticipated [34] Question: How many validations are expected this year compared to last year? - The company expects to complete at least 18 validations this year, slightly up from 16 last year, with potential for upside [38] Question: What is the significance of the recent CapEx in the U.S.? - Management noted that ongoing expansions by customers in the U.S. are seen as positive, as new projects typically adopt newer technology [40] Question: How is AI integrated into the company's long-term strategy? - The company is focusing on software advancements, including AI, as part of its R&D roadmap to enhance data management capabilities [43]

Company Performance - Rapid Micro Biosystems reported a quarterly loss of $0.26 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.27, and an improvement from a loss of $0.31 per share a year ago, representing an earnings surprise of 3.70% [1] - The company posted revenues of $7.21 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 9.17%, and showing a year-over-year increase from $5.61 million [2] - Over the last four quarters, Rapid Micro Biosystems has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Rapid Micro Biosystems shares have increased approximately 172.2% since the beginning of the year, contrasting with the S&P 500's decline of -3.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $7.85 million, and for the current fiscal year, it is -$0.99 on revenues of $33.1 million [7] Industry Outlook - The Medical - Instruments industry, to which Rapid Micro Biosystems belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Rapid Micro Biosystems reported strong financial performance for the first quarter of 2025, highlighted by a 28% increase in total revenue and a significant 33-percentage point improvement in gross margin compared to the prior-year period. The company also announced a key global distribution and collaboration agreement with MilliporeSigma and reaffirmed its full-year 2025 revenue guidance Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Change vs. Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $7.2 million | +28% | | Gross Margin | 6% | +33 percentage points | - Service revenue reached a record high, driven by strong validation activity for customer systems[3](index=3&type=chunk)[9](index=9&type=chunk) - Announced a global Distribution and Collaboration Agreement with MilliporeSigma to help accelerate Growth Direct system placements and improve gross margins[3](index=3&type=chunk)[9](index=9&type=chunk) - Full-year 2025 total revenue guidance of at least **$32.0 million** is reaffirmed[8](index=8&type=chunk)[9](index=9&type=chunk) [First Quarter Financial Results Analysis](index=1&type=section&id=First%20Quarter%20Financial%20Results%20Analysis) In Q1 2025, total revenue grew 28% to $7.2 million, primarily fueled by a 64% surge in service revenue. Gross margin turned positive at 6%, a substantial improvement from negative 27% in Q1 2024, due to lower cost of revenue. Operating expenses saw a 5% reduction, contributing to a smaller net loss of $11.3 million, or $0.26 per share. The company maintained a healthy liquidity position with approximately $42 million in cash and investments and no debt Q1 2025 vs. Q1 2024 Revenue Breakdown (in millions) | Revenue Type | Q1 2025 | Q1 2024 | Growth | | :--- | :--- | :--- | :--- | | Product Revenue | $4.1 | $3.7 | +10% | | Service Revenue | $3.1 | $1.9 | +64% | | **Total Revenue** | **$7.2** | **$5.6** | **+28%** | | Recurring Revenue | $4.0 | $3.7 | +6% | - The company placed three new Growth Direct® systems and completed nine customer system validations, compared to three placements and three validations in Q1 2024[4](index=4&type=chunk) Q1 2025 vs. Q1 2024 Profitability (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit (Margin) | $0.4 (6%) | -$1.5 (-27%) | | Total Operating Expenses | $12.1 | $12.8 | | Net Loss | $11.3 | $13.3 | | Net Loss Per Share | $0.26 | $0.31 | - As of March 31, 2025, the company had approximately **$42 million** in cash, cash equivalents, and short-term investments, with no debt outstanding[7](index=7&type=chunk) [2025 Outlook](index=1&type=section&id=2025%20Outlook) The company has reaffirmed its full-year 2025 financial guidance, signaling confidence in its operational strategy and market position for the remainder of the year Full Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Total Revenue | At least $32.0 million | | System Placements | Between 21 and 25 | [Financial Statements](index=5&type=section&id=Financial%20Statements) The financial statements provide a detailed overview of the company's financial position and performance for the period [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations for the three months ended March 31, 2025, shows a 28% increase in total revenue to $7.2 million and a reduced net loss of $11.3 million compared to a $13.3 million loss in the prior-year period, reflecting improved gross margins and controlled operating expenses Q1 2025 Statement of Operations (in thousands, except per share data) | | Three Months Ended March 31, | | :--- | :---: | :---: | | | **2025** | **2024** | | **Revenue:** | | | | Product revenue | $4,101 | $3,713 | | Service revenue | $3,104 | $1,898 | | **Total revenue** | **$7,205** | **$5,611** | | **Costs and operating expenses:** | | | | Cost of product revenue | $5,029 | $5,173 | | Cost of service revenue | $1,772 | $1,961 | | Research and development | $3,624 | $3,842 | | Sales and marketing | $2,751 | $3,281 | | General and administrative | $5,690 | $5,627 | | **Total costs and operating expenses** | **$18,866** | **$19,884** | | **Loss from operations** | **($11,661)** | **($14,273)** | | Interest income, net | $466 | $983 | | **Net loss** | **($11,263)** | **($13,322)** | | **Net loss per share — basic and diluted** | **($0.26)** | **($0.31)** | [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's balance sheet shows total assets of $85.4 million and total liabilities of $19.9 million. This compares to total assets of $98.2 million and total liabilities of $22.8 million at the end of 2024, with the decrease in assets primarily driven by a reduction in short-term investments Balance Sheet Highlights (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :---: | :---: | | **Assets** | | | | Cash and cash equivalents | $18,906 | $16,911 | | Short-term investments | $22,764 | $33,821 | | Total current assets | $69,182 | $80,917 | | **Total assets** | **$85,434** | **$98,169** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $14,996 | $17,565 | | **Total liabilities** | **$19,943** | **$22,817** | | **Total stockholders' equity** | **$65,491** | **$75,352** | [Unaudited Cash, Cash Equivalents and Investments](index=6&type=section&id=Unaudited%20Cash%2C%20Cash%20Equivalents%20and%20Investments) The company's total cash, cash equivalents, and investments stood at $41.7 million as of March 31, 2025, a decrease from $50.7 million at the end of 2024 Cash Position (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :---: | :---: | | Cash and cash equivalents | $18,906 | $16,911 | | Short-term investments | $22,764 | $33,821 | | **Cash, cash equivalents and investments** | **$41,670** | **$50,732** | [Other Information](index=3&type=section&id=Other%20Information) This section provides details on the investor conference call, a corporate overview of Rapid Micro Biosystems' business in automating microbial quality control (MQC), and the standard forward-looking statements disclaimer outlining potential risks and uncertainties - The company will host a conference call on May 9, 2025, at 8:30 a.m. ET to discuss the quarterly results[10](index=10&type=chunk) - Rapid Micro Biosystems provides automation solutions, including its flagship Growth Direct system, to modernize manual microbial quality control (MQC) testing for pharmaceutical manufacturing[11](index=11&type=chunk) - The press release contains forward-looking statements concerning financial guidance, the MilliporeSigma collaboration, and operational improvements, which are subject to risks and uncertainties detailed in SEC filings[13](index=13&type=chunk)[14](index=14&type=chunk)