**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]

[Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) The company reported a 10% increase in total revenue to $7.3 million, driven by service and product growth, with gross margin improving to 4% and a new $45 million term loan facility secured [CEO Commentary and Business Highlights](index=1&type=section&id=CEO%20Commentary) CEO Robert Spignesi highlighted 10% total revenue growth, driven by service and product segments, and announced a new $45 million term loan facility - **Total revenue increased 10%**, driven by an **18% increase in Service revenue**. Product revenue increased by **6%**, led by mid-teens growth in consumables[3](index=3&type=chunk) - Announced a new five-year, **$45 million term loan facility**, with **$20 million funded upfront** with highly favorable terms, significantly strengthening the financial position[3](index=3&type=chunk) - Strategic priorities remain unchanged: delivering significant **long-term revenue growth**, **gross margin expansion**, and **shareholder value**[3](index=3&type=chunk) [Q2 2025 Key Financial Highlights](index=1&type=section&id=Q2%202025%20Key%20Financial%20Highlights) Total revenue grew 10% to $7.3 million, recurring revenue increased 15%, gross margin improved to 4%, and full-year guidance was reaffirmed Q2 2025 Key Financial Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :----- | :------ | :------ | :--------- | | Total Revenue | $7.3 | $6.6 | +10% | | Recurring Revenue | $4.4 | $3.8 | +15% | | Gross Margin | 4% | -3% | +7 ppts | - Enters into five-year, **$45 million term loan facility** with **$20 million funded at close**[9](index=9&type=chunk) - Reaffirms full-year 2025 total revenue guidance of **at least $32.0 million**[9](index=9&type=chunk) [Detailed Second Quarter 2025 Financial Performance](index=1&type=section&id=Detailed%20Second%20Quarter%202025%20Financial%20Performance) Q2 2025 saw total revenue increase 10% to $7.3 million, gross margin improve to 4%, operating expenses decrease 6%, and net loss narrow to $11.9 million [Revenue Breakdown](index=1&type=section&id=Revenue%20Breakdown) Total revenue increased 10% to $7.3 million, driven by 18% service revenue growth and 6% product revenue growth, with recurring revenue up 15% Q2 2025 Revenue Breakdown | Revenue Type | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :----------- | :----------------- | :----------------- | :------------- | | Total Revenue | $7.3 | $6.6 | +10% | | Product Revenue | $4.8 | $4.5 | +6% | | Service Revenue | $2.5 | $2.1 | +18% | | Recurring Revenue | $4.4 | $3.8 | +15% | - The company placed **four new Growth Direct® systems** and completed **two customer system validations**, a decrease from the prior year[4](index=4&type=chunk) [Cost of Revenue and Gross Margin](index=1&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Margin) Total cost of revenue increased 3% to $7.0 million, while gross margin significantly improved by 7 percentage points to positive 4% Q2 2025 Cost of Revenue and Gross Margin | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :----- | :----------------- | :----------------- | :------------- | | Total Cost of Revenue | $7.0 | $6.8 | +3% | | Gross Margin | 4% ($0.3) | -3% (-$0.2) | +7 ppts | [Operating Expenses](index=1&type=section&id=Operating%20Expenses) Total operating expenses decreased 6% to $12.4 million, driven by reductions in R&D and sales and marketing, despite a rise in G&A Q2 2025 Operating Expenses Changes | Expense Type | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :----------- | :----------------- | :----------------- | :------------- | | Total Operating Expenses | $12.4 | $13.2 | -6% | | General and Administrative | $6.079 | $5.818 | +4% | | Research and Development | $3.230 | $3.744 | -14% | | Sales and Marketing | $3.114 | $3.627 | -14% | [Net Loss and Cash Position](index=1&type=section&id=Net%20Loss%20and%20Cash%20Position) Net loss improved to $11.9 million, with loss per share at $0.27, and cash position stood at approximately $32 million Q2 2025 Net Loss Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | | :----- | :------ | :------ | | Net Loss | -$11.9 | -$12.6 | | Net Loss per Share | -$0.27 | -$0.29 | - Cash, cash equivalents, short-term investments, and restricted cash totaled approximately **$32 million** as of June 30, 2025[7](index=7&type=chunk) [2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) The company reaffirmed its full-year 2025 total revenue guidance of at least $32.0 million [Full-Year Guidance](index=1&type=section&id=Full-Year%20Guidance) Rapid Micro Biosystems reaffirmed its full-year 2025 total revenue guidance of at least $32.0 million - The company is reaffirming its full-year 2025 total revenue guidance of **at least $32.0 million**[8](index=8&type=chunk) [Strategic Financial Initiatives](index=3&type=section&id=Strategic%20Financial%20Initiatives) The company secured a new five-year, $45 million term loan facility, with $20 million funded upfront and additional tranches contingent on milestones [New Term Loan Facility](index=3&type=section&id=New%20Term%20Loan%20Facility) A new five-year, $45 million term loan facility was secured, with $20 million funded at close and additional tranches tied to milestones - Entered into a five-year, **$45 million term loan facility** with Trinity Capital Inc[10](index=10&type=chunk) - Received **$20 million at close** through the first tranche, with access to **two additional tranches totaling $20 million** contingent on commercial and operational milestones[10](index=10&type=chunk) - A fourth tranche of **$5 million** is available at the lender's discretion[10](index=10&type=chunk) [Company Profile](index=3&type=section&id=Company%20Profile) Rapid Micro Biosystems is an innovative life sciences technology company providing automated microbial quality control solutions for healthcare product manufacturing [About Rapid Micro Biosystems](index=3&type=section&id=About%20Rapid%20Micro%20Biosystems) Rapid Micro Biosystems is an innovative life sciences technology company offering automated microbial quality control solutions for healthcare product manufacturing - Innovative life sciences technology company providing mission-critical automation solutions for efficient manufacturing and safe release of healthcare products[13](index=13&type=chunk) - The flagship **Growth Direct system** automates and modernizes manual microbial quality control (MQC) testing workflows[13](index=13&type=chunk) - Headquartered in Lexington, Massachusetts, with U.S. manufacturing in Lowell, Massachusetts, and global locations in Switzerland, Germany, and the Netherlands[13](index=13&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited financial statements detail Q2 2025 operations, balance sheet, and cash position, showing improved net loss and changes in assets and liabilities [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The statements show an improved net loss of $11.9 million for Q2 2025, with total revenue increasing to $7.3 million due to revenue growth Unaudited Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | 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 | | Net loss | $(11,858) | $(12,578) | $(23,121) | $(25,900) | | Net loss per share | $(0.27) | $(0.29) | $(0.52) | $(0.60) | [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $75.6 million, total liabilities to $21.0 million, and stockholders' equity to $54.5 million as of June 30, 2025 Unaudited Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :-------------------- | :------------ | :---------------- | | Total current assets | $60,146 | $80,917 | | Total assets | $75,586 | $98,169 | | Total current liabilities | $16,403 | $17,565 | | Total liabilities | $21,041 | $22,817 | | Total stockholders' equity | $54,545 | $75,352 | [Unaudited Cash, Cash Equivalents and Investments](index=6&type=section&id=Unaudited%20Cash%2C%20Cash%20Equivalents%20and%20Investments) Cash, cash equivalents, and investments decreased to $31.3 million as of June 30, 2025, primarily due to reduced short-term investments Unaudited Cash, Cash Equivalents and Investments (in thousands) | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $18,333 | $16,911 | | Short-term investments | $12,922 | $33,821 | | Cash, cash equivalents and investments | $31,255 | $50,732 | [Other Information](index=3&type=section&id=Other%20Information) This section provides details on the Q2 2025 webcast, investor relations disclosure, forward-looking statements, and company contacts [Webcast Details](index=3&type=section&id=Webcast%20Details) A conference call was held on August 12, 2025, to discuss Q2 2025 financial results, with webcast access and replay available - The company hosted a conference call on **August 12, 2025, at 8:30 a.m. ET** to discuss its second quarter 2025 financial results[12](index=12&type=chunk) - The live call is accessible on the company's investor relations website and will be archived for **one year**[12](index=12&type=chunk) [Investor Relations Disclosure](index=3&type=section&id=Investor%20Relations%20Disclosure) The company uses its Investor Relations page for disclosing material nonpublic information and fulfilling Regulation FD obligations - Rapid Micro Biosystems intends to use its Investor Relations page for disclosing material nonpublic information and complying with Regulation FD obligations[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements regarding future performance, including revenue guidance and cash flow, and details associated risks and uncertainties - Includes forward-looking statements on **full-year 2025 total revenue guidance**, Growth Direct placements, **cash flow breakeven**, debt facility impact, cost reduction, and product innovation[15](index=15&type=chunk) - Forward-looking statements involve inherent risks and uncertainties, including achieving **positive cash flow**, meeting business objectives, managing **significant losses**, debt obligations, market competition, technological changes, supply chain disruptions, and macroeconomic factors[16](index=16&type=chunk)[17](index=17&type=chunk) [Contacts](index=4&type=section&id=Contacts) Contact information is provided for investor relations and media inquiries - Investor Contact: **Michael Beaulieu, CFA**, Vice President, Investor Relations and Corporate Communications, investors@rapidmicrobio.com[18](index=18&type=chunk) - Media Contact: media@rapidmicrobio.com[18](index=18&type=chunk)

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]