Cryoport(CYRX) - 2025 Q2 - Quarterly Results

Financial Performance Overview Cryoport reported strong Q2 2025 results with 14% revenue growth and reaffirmed full-year guidance Second Quarter 2025 Highlights Cryoport reported strong Q2 2025 results, with total revenue up 14% to $45.5 million and commercial cell & gene therapy revenue up 33% Key Financial Metrics | Metric | Q2 2025 Value | Year-over-Year Change | | :--- | :--- | :--- | | Total Revenue (Continuing Ops) | $45.5 million | +14% | | Commercial Cell & Gene Therapy Revenue | $8.7 million | +33% | | Life Sciences Services Revenue | - | +21% | | BioStorage/BioServices Revenue | - | +28% | - Launched a strategic partnership with DHL Group and completed the divestiture of the CRYOPDP business[6][7] - The company reaffirmed its full-year 2025 revenue guidance of $165 million to $172 million[7][27] CEO's Remarks CEO highlighted 21% YoY growth in Life Sciences Services, 33% in cell and gene therapy, and the strategic DHL partnership - Life Sciences Services revenue grew 21% year-over-year, accounting for 54% of total revenue from continuing operations[3] - Revenue from commercial cell and gene therapies increased by 33% YoY to $8.7 million, driven by increasing adoption[4] - The strategic partnership with DHL and the divestiture of CRYOPDP provided a strong infusion of capital and strengthened global biologistics capabilities, particularly in APAC and EMEA[6] - The company is reaffirming its full-year 2025 revenue guidance based on strong execution and a planned pathway to profitability[5] Detailed Financial Results Q2 2025 saw 14% revenue growth, improved gross margins, and a net income boost from the CRYOPDP divestiture Revenue Analysis Q2 2025 total revenue from continuing operations increased 14% YoY to $45.5 million, driven by Life Sciences Services Revenue from Continuing Operations (in thousands) | Revenue (in thousands) | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Life Sciences Services | $24,369 | $20,152 | 21% | $47,234 | $39,637 | 19% | | BioLogistics Solutions | $19,874 | $16,628 | 20% | $38,404 | $32,585 | 18% | | BioStorage/BioServices | $4,495 | $3,524 | 28% | $8,830 | $7,052 | 25% | | Life Sciences Products | $21,085 | $19,557 | 8% | $39,260 | $37,363 | 5% | | Total Revenue | $45,454 | $39,709 | 14% | $86,494 | $77,000 | 12% | Profitability Analysis Gross margin improved to 47.0% in Q2 2025, with net income boosted by the CRYOPDP sale and narrowed Adjusted EBITDA loss Gross Margin | Gross Margin | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Gross Margin | 47.0% | 44.5% | | Life Sciences Services | 48.9% | 46.7% | | Life Sciences Products | 44.9% | 42.2% | - Operating costs from continuing operations decreased to $31.2 million in Q2 2025 from $95.7 million in Q2 2024, mainly due to the prior year including a $63.8 million impairment charge for MVE Biological Solutions[21] - Q2 2025 net income was $105.2 million, or $2.05 per share, primarily due to a $117.4 million gain from the sale of the CRYOPDP business, compared to a net loss of $78.0 million in Q2 2024[22][28] - Adjusted EBITDA loss narrowed to $0.9 million in Q2 2025 from a loss of $5.6 million in Q2 2024[24] Balance Sheet and Capital Allocation Cryoport held $426.0 million in cash and investments, boosted by the CRYOPDP divestiture, and continued share repurchases - The company held $426.0 million in cash, cash equivalents, and short-term investments as of June 30, 2025[25] - In Q2 2025, the company repurchased 628,217 shares of common stock for $4.2 million, with approximately $66.9 million remaining available under the total repurchase authorization[26] Business & Operational Update Cryoport expanded commercial therapy support, advanced clinical trials, achieved key operational milestones, and completed the CRYOPDP divestiture Commercial & Clinical Trial Progress Commercial therapy support grew to 18, clinical trials increased to 728, with positive regulatory momentum and FDA REMS removal - As of June 30, 2025, Cryoport supported 18 commercial therapies[9] Clinical Trials by Phase | Clinical Trials by Phase | June 30, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Phase 1 | 286 | 304 | | Phase 2 | 322 | 342 | | Phase 3 | 76 | 82 | | Total | 684 | 728 | - For the remainder of 2025, the company anticipates up to 20 additional application filings, one new therapy approval, and three approvals for label/geographic expansions[11] - The FDA removed REMS requirements for certain approved CAR-T cell immunotherapies, including Cryoport-supported therapies like Carvykti and Yescarta, which is expected to increase patient access[12] Key Operational Milestones Cryoport advanced Global Supply Chain Centers, opened a new storage center, launched Cryoshuttle, and introduced new MVE Biological Solutions products - Life Sciences Services: - Continued development of Global Supply Chain Centers in Paris (launching late 2025) and Santa Ana (H2 2026)[14][18] - Opened the first southeast regional automated sample storage center with Texas Children's Hospital[14] - Launched Cryoshuttle service in Tokyo, Japan[14] - Life Sciences Products: - MVE Biological Solutions launched next-generation SC 4/2V and SC 4/3V vapor shippers[15] - Recorded multiple sales of the new MVE High-Efficiency 800C cryogenic storage system[15] - Deployed the highest number of MVE cryogenic dewars to the animal health industry since 2013[18] Strategic Developments Completed CRYOPDP divestiture to DHL, forming a strategic partnership to enhance global business development and long-term growth - On June 11, 2025, the company completed the divestiture of its CRYOPDP business to DHL and entered into a strategic partnership[16] - The partnership is expected to enhance business development in EMEA and APAC and support the company's long-term growth strategy[16] - The results of CRYOPDP are now presented as discontinued operations in the financial statements[16] Outlook Cryoport reaffirms full-year 2025 revenue guidance of $165.0 million to $172.0 million, projecting 5% to 10% growth Full Year 2025 Guidance Cryoport reaffirmed full-year 2025 revenue guidance of $165.0 million to $172.0 million for continuing operations Full Year 2025 Revenue Guidance | Guidance for Full Year 2025 | Range | YoY Growth | | :--- | :--- | :--- | | Total Revenue (Continuing Ops) | $165.0M - $172.0M | 5% - 10% | - The guidance is dependent on current business expectations and may be impacted by factors outside the company's control, such as macroeconomic conditions and supply chain constraints[27] Financial Statements Q2 2025 statements reflect $105.2 million net income, boosted by the CRYOPDP sale, and a strengthened balance sheet Condensed Consolidated Statements of Operations Q2 2025 income statement shows $45.5 million revenue, $21.4 million gross margin, and $105.2 million net income from CRYOPDP sale Condensed Consolidated Statements of Operations (in thousands) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $45,454 | $39,709 | | Gross Margin | $21,377 | $17,662 | | Loss from Continuing Operations | $(12,198) | $(76,909) | | Income (loss) from Discontinued Ops | $117,378 | $(1,081) | | Net Income (Loss) | $105,180 | $(77,990) | | Net Income (Loss) per Share (Basic) | $2.05 | $(1.62) | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $773.9 million, with cash and investments at $426.0 million, boosting equity Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and short-term investments | $425,975 | $250,597 | | Total Assets | $773,927 | $703,493 | | Total Liabilities | $258,536 | $301,595 | | Total Stockholders' Equity | $515,391 | $401,898 | Non-GAAP Financial Measures & Reconciliations The company provides reconciliations showing improved Adjusted EBITDA from continuing operations in Q2 2025 Reconciliation of GAAP to Non-GAAP Measures Q2 2025 GAAP loss of $12.2 million adjusted to an Adjusted EBITDA loss of $0.9 million, showing operational improvement Reconciliation of GAAP to Non-GAAP Measures (in thousands) | Reconciliation (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP loss from continuing operations | $(12,198) | $(76,909) | | Depreciation and amortization | $6,249 | $5,785 | | Stock-based compensation | $2,045 | $4,201 | | Impairment loss | $0 | $63,809 | | Other adjustments | $2,990 | $(1,539) | | Adjusted EBITDA from continuing ops | $(914) | $(5,561) |