MaxCyte(MXCT) - 2025 Q2 - Quarterly Results

Executive Summary Second Quarter and Recent Highlights MaxCyte reported solid growth in the first half of 2025 but updated its full-year guidance downwards due to customer inventory management and pipeline reprioritization. Despite short-term headwinds, the company remains focused on execution, customer support, and strategic investments, including two new Strategic Platform Licenses (SPLs) with Adicet Bio and Anocca AB, bringing the total to 31 CEO Commentary and Strategic Focus - MaxCyte lowered its 2025 guidance due to customer inventory management and reprioritization/consolidation of customer pipelines, despite solid growth in H1 2025[3] - The company remains focused on executing, supporting customers, investing in product enhancements and SeQure Dx, and is confident in achieving profitability with existing capital through operational efficiencies and maturing customer clinical programs[3] - MaxCyte added two new SPL clients, Adicet Bio and Anocca AB, in July, bringing the total number of SPL agreements to 31[3][4] Key Financial and Operational Metrics | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------------------- | :------ | :------ | :------- | | Core business revenue | $8.2M | $7.6M | 8% | | Strategic Platform License (SPL) Program-related revenue | $0.3M | $2.9M | (89)% | | Total revenue | $8.5M | $10.4M | (18)% | | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Installed base of instruments | 814 | 723 | | Core Revenue Generated by SPL Clients as a % of Core Revenue | 42% | 51% | - Total cash, cash equivalents, and investments were $165.2 million as of June 30, 2025, with a decrease since the beginning of the year including approximately $7.0 million for the acquisition of SeQure Dx[4] Second Quarter 2025 Financial Results Revenue Performance MaxCyte's total revenue for Q2 2025 decreased by 18% year-over-year to $8.5 million, primarily driven by an 89% decline in SPL Program-related revenue. Core business revenue, however, increased by 8% to $8.2 million, with growth in Instruments (22%) and PAs and consumables (5%) | Revenue Source | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :--------------- | :--------------------- | :--------------------- | :------- | | Instruments | $2,141 | $1,762 | 22% | | PAs and consumables | $3,128 | $2,974 | 5% | | Licenses | $2,619 | $2,610 | 0% | | Assay services | $51 | — | — | | Other | $259 | $229 | 13% | | Total Core Revenue | $8,198 | $7,575 | 8% | | Program-Related | $309 | $2,854 | (89)% | | Total Revenue | $8,507 | $10,429 | (18)%| Gross Profit and Operating Expenses Gross profit for Q2 2025 was $7.0 million, down from $8.9 million in Q2 2024, resulting in a GAAP gross margin of 82% (down from 86%). Non-GAAP adjusted gross margin, excluding SPL Program-related revenue and inventory reserves, was 83%. Operating expenses remained relatively stable at $21.2 million compared to $20.9 million in the prior year | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :---------------- | :--------------------- | :--------------------- | :------- | | Gross profit | $6,988 | $8,941 | (22)% | | Gross margin | 82% | 86% | (4) pp | | Non-GAAP adjusted gross margin | 83% | 82% | 1 pp | | Operating expenses | $21,215 | $20,909 | 1% | Net Loss and EBITDA MaxCyte reported an increased net loss of $12.4 million in Q2 2025, compared to a $9.4 million net loss in Q2 2024. The non-GAAP EBITDA loss also widened to $13.1 million from $10.9 million in the same period | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :------- | :--------------------- | :--------------------- | | Net loss | $(12,357) | $(9,375) | | EBITDA | $(13,127) | $(10,887) | 2025 Financial Guidance 2025 Guidance Update MaxCyte has updated its 2025 financial guidance, now expecting core business revenue to be flat to a 10% decline compared to 2024, including revenue from SeQure Dx. SPL Program-related revenue is projected to be approximately $5 million for the year. The company anticipates ending 2025 with at least $155 million in total cash, cash equivalents, and investments - MaxCyte updated its 2025 revenue guidance for core business revenue and SPL Program-related revenue[11] - Core revenue is expected to be flat to a 10% decline compared to 2024, inclusive of revenue from SeQure Dx[17] - SPL Program-related revenue is expected to be approximately $5 million for the year, including pre-commercial milestone payments and commercial royalties/sales-based payments[17] - MaxCyte expects to end 2025 with at least $155 million in total cash, cash equivalents, and investments[11] Company Overview About MaxCyte MaxCyte is a leading cell-engineering company focused on advancing next-generation cell therapies. It provides Flow Electroporation® technology and SeQure DX™ gene editing risk assessment services, enabling precise, efficient, and scalable cell engineering for researchers globally. With over 25 years of experience, MaxCyte aims to accelerate the development of safe and effective treatments - MaxCyte is a leading cell-engineering company driving the discovery, development, and commercialization of next-generation cell therapies[13] - The company's core technologies include Flow Electroporation® and SeQure DX™ gene editing risk assessment services, which enable precise, efficient, and scalable cell engineering[13] Non-GAAP Financial Measures Explanation MaxCyte uses non-GAAP financial measures, specifically EBITDA and Non-GAAP Gross Margin, to provide additional insights into its operational performance. EBITDA helps management and investors compare performance across periods and with other companies, while Non-GAAP Gross Margin offers consistency by excluding non-core revenues and variable inventory reserves. These measures are presented alongside GAAP results and are not intended as substitutes - MaxCyte uses EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) as a non-GAAP measure to provide useful information for management and investors, aiding in trend analyses, budgeting, and comparisons[14] - Non-GAAP Gross Margin is defined as Gross Margin excluding SPL program-related revenue and reserves for excess and obsolete inventory, providing consistency and comparability by removing non-core and variable items[15] - These non-GAAP measures are supplementary to GAAP results and should not be considered in isolation or as alternatives to GAAP financial statements[16][18] Unaudited Consolidated Financial Statements Balance Sheets As of June 30, 2025, MaxCyte's total assets decreased to $219.8 million from $239.5 million at December 31, 2024. This was primarily driven by a reduction in cash and cash equivalents and short-term investments. Total liabilities also decreased, while total stockholders' equity saw a decline | Asset/Liability/Equity | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------- | :--------------------------- | :------------------------------- | | Cash and cash equivalents | $15,225 | $27,884 | | Short-term investments | $111,337 | $126,598 | | Total current assets | $143,219 | $171,684 | | Total assets | $219,750 | $239,470 | | Total current liabilities | $11,555 | $15,775 | | Total liabilities | $29,027 | $33,219 | | Total stockholders' equity | $190,723 | $206,251 | Statements of Operations For the three months ended June 30, 2025, MaxCyte reported a total revenue of $8.5 million, an 18% decrease year-over-year, leading to a gross profit of $7.0 million. Operating expenses were $21.2 million, resulting in an operating loss of $14.2 million and a net loss of $12.4 million. For the six months, total revenue was $18.9 million, with a net loss of $22.6 million | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Revenue | $8,507 | $10,429 | $18,897 | $21,770 | | Cost of goods sold | $1,519 | $1,488 | $3,016 | $2,891 | | Gross profit | $6,988 | $8,941 | $15,881 | $18,879 | | Total operating expenses | $21,215 | $20,909 | $42,403 | $43,122 | | Operating loss | $(14,227) | $(11,968) | $(26,522) | $(24,243) | | Net loss | $(12,357) | $(9,375) | $(22,618) | $(18,901) | | Basic and diluted net loss per share | $(0.12) | $(0.09) | $(0.21) | $(0.18) | Statements of Cash Flows For the six months ended June 30, 2025, MaxCyte reported net cash used in operating activities of $24.3 million, an increase from $15.4 million in the prior year. Investing activities provided $11.1 million, primarily from maturities of investments offsetting purchases. Financing activities provided $0.5 million. Overall, there was a net decrease in cash and cash equivalents of $12.7 million, ending the period with $15.2 million | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash used in operating activities | $(24,263) | $(15,398) | | Net cash provided by investing activities | $11,067 | $4,989 | | Net cash provided by financing activities | $537 | $1,416 | | Net decrease in cash and cash equivalents | $(12,659) | $(8,993) | | Cash and cash equivalents, end of period | $15,225 | $37,513 | Non-GAAP Reconciliations Net Loss to EBITDA Reconciliation The reconciliation of net loss to EBITDA shows an EBITDA loss of $13.1 million for the three months ended June 30, 2025, compared to a $10.9 million loss in the prior year. For the six-month period, the EBITDA loss was $24.3 million, up from $22.1 million | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------- | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net loss | $(12,357) | $(9,375) | $(22,618) | $(18,901) | | EBITDA | $(13,127) | $(10,887) | $(24,326) | $(22,051) | Gross Margin to Non-GAAP Adjusted Gross Margin Reconciliation For the three months ended June 30, 2025, GAAP gross margin was 82%, while the non-GAAP adjusted gross margin, after excluding SPL program-related revenue and inventory reserves, was 83%. This represents an increase from the 82% non-GAAP adjusted gross margin in the prior year period | Metric | Q2 2025 GAAP | Q2 2025 Non-GAAP | Q2 2024 GAAP | Q2 2024 Non-GAAP | | :------- | :----------- | :--------------- | :----------- | :--------------- | | Revenue | $8,507 | $8,198 | $10,429 | $7,575 | | Cost of Goods Sold | $1,519 | $1,419 | $1,488 | $1,351 | | Gross Margin | $6,988 | $6,779 | $8,941 | $6,224 | | Gross Margin % | 82% | 83% | 86% | 82% | | Metric | H1 2025 GAAP | H1 2025 Non-GAAP | H1 2024 GAAP | H1 2024 Non-GAAP | | :------- | :----------- | :--------------- | :----------- | :--------------- | | Revenue | $18,897 | $16,441 | $21,770 | $15,762 | | Cost of Goods Sold | $3,016 | $2,851 | $2,891 | $2,754 | | Gross Margin | $15,881 | $13,590 | $18,879 | $13,008 | | Gross Margin % | 84% | 83% | 87% | 83% | Additional Information Webcast and Conference Call Details MaxCyte hosted a conference call on August 6, 2025, at 4:30 p.m. Eastern Time to discuss its financial results. A live and archived webcast of the event is available on the investor relations section of the company's website - MaxCyte hosted a conference call on August 6, 2025, at 4:30 p.m. Eastern Time[12] - A live and archived webcast is available on the 'Events' section of the MaxCyte website at https://investors.maxcyte.com/[12](index=12&type=chunk) Forward-Looking Statements This section contains forward-looking statements subject to substantial known and unknown risks, uncertainties, and assumptions, as outlined in the Private Securities Litigation Reform Act of 1995 and the company's Form 10-K. Investors are cautioned not to unduly rely on these statements, which include expectations regarding future growth, market share, customer base expansion, financial performance, intellectual property, and general economic conditions. MaxCyte undertakes no obligation to update these statements except as required by law - The press release contains forward-looking statements subject to risks, uncertainties, and assumptions, as defined by the Private Securities Litigation Reform Act of 1995[18] - These statements cover future results, business strategy, market potential, customer expansion, financial performance, intellectual property, and economic conditions[18] - Investors are cautioned not to unduly rely on these statements, and MaxCyte undertakes no obligation to update them except as required by law[18][20] MaxCyte Contacts Contact information for MaxCyte's Investor Relations, handled by Gilmartin Group, and Media Contact, handled by Oak Street Communications, is provided for inquiries - Investor Relations contact: David Deuchler, CFA at Gilmartin Group (ir@maxcyte.com, +1 415-937-5400)[21] - Media Contact: Kristen White at Oak Street Communications (kristen@oakstreetcommunications.com, 415.608.6060)[21]