Cryoport(US:CYRX)2025-05-08 21:18PART I. FINANCIAL INFORMATION This section covers the company's unaudited financial statements, management's discussion, market risk, and internal controls Financial Statements This section presents Cryoport's unaudited condensed consolidated financial statements, including CRYOPDP reclassification and reduced net loss Condensed Consolidated Balance Sheets The balance sheet shows total assets at $699.8 million, reflecting CRYOPDP reclassification, stable liabilities, and slight equity decrease Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited, in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $36,102 | $34,137 | | Total current assets | $411,276 | $341,572 | | Current assets held for sale | $108,090 | $36,251 | | Total assets | $699,844 | $703,493 | | Liabilities & Equity | | | | Total current liabilities | $74,030 | $64,563 | | Total liabilities | $301,033 | $301,595 | | Total stockholders' equity | $398,811 | $401,898 | | Total liabilities and stockholders' equity | $699,844 | $703,493 | Condensed Consolidated Statements of Operations Total revenue from continuing operations increased 10.1% to $41.0 million, with improved gross margin and reduced net loss Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Total revenue | $41,040 | $37,291 | | Gross margin | $18,641 | $15,065 | | Loss from operations | $(9,484) | $(17,508) | | Loss from continuing operations | $(9,028) | $(15,035) | | Net loss | $(11,981) | $(18,895) | | Net loss attributable to common stockholders | $(13,981) | $(20,895) | | Net loss per share - basic and diluted | $(0.28) | $(0.43) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities was $4.3 million, with investing activities providing $5.9 million, leading to a net cash increase Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,342) | $(3,265) | | Net cash provided by investing activities | $5,922 | $6,445 | | Net cash (used in) provided by financing activities | $(189) | $512 | | Net change in cash and cash equivalents | $2,072 | $3,317 | Notes to Condensed Consolidated Financial Statements These notes detail accounting policies, the $195 million CRYOPDP divestiture, revenue disaggregation, and segment performance - On March 31, 2025, Cryoport entered a definitive agreement to divest its CRYOPDP specialty courier business to DHL for a total enterprise value of $195 million. The transaction is expected to close in Q2 or Q3 20252348 - The CRYOPDP business has been classified as discontinued operations. Its assets and liabilities are now presented as 'held for sale' on the balance sheet, and its results are reported separately from continuing operations242649 Revenue from Continuing Operations by Geography (in thousands) | Region | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Americas | $32,195 | $26,690 | | EMEA | $5,580 | $7,400 | | APAC | $3,265 | $3,201 | | Total | $41,040 | $37,291 | Segment Adjusted EBITDA (in thousands) | Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Life Sciences Services | $(2,484) | $(4,940) | | Life Sciences Products | $3,510 | $2,123 | | Total Segment Adjusted EBITDA | $1,026 | $(2,817) | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial performance, highlighting revenue growth, improved gross margin, and the strategic CRYOPDP divestiture Overview Cryoport, a life sciences supply chain leader, supported 711 clinical trials and 19 commercial therapies, strategically divesting CRYOPDP - As of March 31, 2025, Cryoport supported 711 clinical trials globally, an increase from 675 at March 31, 2024. Of these, 79 were in Phase 3116122 - The company supports 19 commercial therapies, anticipating that approved therapies will become significant revenue drivers116 - The divestiture of CRYOPDP and strategic partnership with DHL is expected to enhance the company's ability to develop its business, particularly in the EMEA and APAC regions118 Results of Operations Total revenue from continuing operations grew 10.1% to $41.0 million, driven by Life Sciences Services growth and improved gross margin Revenue from Continuing Operations by Segment (in thousands) | Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Life Sciences Services | $22,865 | $19,485 | $3,380 | 17.3% | | Life Sciences Products | $18,175 | $17,806 | $369 | 2.1% | | Total revenue | $41,040 | $37,291 | $3,749 | 10.1% | - The increase in Life Sciences Services revenue was driven by year-over-year growth in BioStorage/BioServices (22.8%) and Commercial Cell & Gene therapy revenue (32.9%)122 - Overall gross margin improved to 45.4% in Q1 2025 from 40.4% in Q1 2024124 - SG&A expenses decreased by $3.6 million (13.0%), mainly due to a $5.2 million decrease in contingent consideration, offset by $2.4 million in costs related to the CRYOPDP divestiture128 Non-GAAP Financial Measures Adjusted EBITDA from continuing operations improved to a loss of $2.8 million, with a minor negative FX impact on revenue Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | GAAP loss from continuing operations | $(9,028) | $(15,035) | | Adjusted EBITDA from continuing operations | $(2,819) | $(6,657) | - For the three months ended March 31, 2025, revenue would have been $0.3 million higher on a constant currency basis, representing a -0.7% FX impact143146 Liquidity and Capital Resources The company maintains strong liquidity with $36.1 million in cash and $207.9 million in short-term investments, sufficient for future operations - As of March 31, 2025, the company had cash and cash equivalents of $36.1 million and short-term investments of $207.9 million148 - Net cash used in operating activities for Q1 2025 was $4.3 million150151 - As of March 31, 2025, approximately $73.9 million of repurchase authorization remains available under the company's repurchase programs89158 Quantitative and Qualitative Disclosures About Market Risk This section details the company's market risk exposure, primarily from interest rate and foreign currency fluctuations - The company's primary market risks are interest rate changes affecting its debt and investment portfolio, and foreign currency fluctuations from international operations160 - A hypothetical 10% adverse change in foreign exchange rates would result in a $2.3 million decline in the value of foreign-denominated cash and a $3.5 million loss related to long-term intercompany loans163164 Controls and Procedures Management concluded disclosure controls were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025166 - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025169 PART II. OTHER INFORMATION This section details legal proceedings, risk factors, equity security sales, and lists filed exhibits Legal Proceedings The company is not aware of any legal proceedings materially affecting its business or financial condition - The company is not aware of any legal proceedings that would have a material adverse effect on its business170 Risk Factors This section refers readers to detailed risk factors in the company's latest Annual Report on Form 10-K - For a detailed discussion of risk factors, the report refers to the company's 2024 Annual Report on Form 10-K171 Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales or issuer purchases of equity securities occurred during the quarter - No unregistered sales of equity securities occurred during the quarter ended March 31, 2025172 - No issuer purchases of equity securities were made during the quarter173 Exhibits This section lists all exhibits filed with the Form 10-Q, including the CRYOPDP divestiture agreement and certifications