Ginkgo Bioworks (DNA) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section details Ginkgo's unaudited financial statements and management's discussion and analysis Item 1. Financial Statements (Unaudited) This section presents Ginkgo's unaudited consolidated financial statements and detailed notes for H1 2025 and 2024 Condensed Consolidated Balance Sheets Total assets, liabilities, and stockholders' equity decreased from December 31, 2024, to June 30, 2025 | Metric | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :-------------------------- | :--------------------------------- | :----------------------------------- | | Total Assets | $1,231,009 | $1,377,449 | | Total Liabilities | $618,057 | $661,391 | | Total Stockholders' Equity | $612,952 | $716,058 | Condensed Consolidated Statements of Operations and Comprehensive Loss Net loss significantly reduced in H1 2025 due to lower operating expenses, despite a Q2 revenue decrease Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :--------- | :----------- | :----------- | | Total Revenue | $49,604 | $56,206 | $(6,602) | | Net Loss | $(60,300) | $(217,181) | $156,881 | | Basic Net Loss Per Share | $(1.10) | $(4.23) | $3.13 | Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------- | :--------- | :----------- | :----------- | | Total Revenue | $97,922 | $94,150 | $3,772 | | Net Loss | $(151,257) | $(383,092) | $231,835 | | Basic Net Loss Per Share | $(2.77) | $(7.55) | $4.78 | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity decreased to $613.0 million by June 30, 2025, primarily due to net loss Total Stockholders' Equity (in thousands) | Date | Amount | | :-------------------- | :------- | | June 30, 2025 | $612,952 | | December 31, 2024 | $716,058 | Stock-Based Compensation Expense (Six Months Ended June 30, in thousands) | Year | Amount | | :--- | :------- | | 2025 | $42,678 | | 2024 | $77,928 | Condensed Consolidated Statements of Cash Flows Net cash, cash equivalents, and restricted cash decreased by $354.4 million due to investing activities Cash Flows (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :------------------------------------------ | :--------- | :--------- | | Net cash used in operating activities | $(91,775) | $(173,649) | | Net cash used in investing activities | $(262,572) | $(38,951) | | Net cash used in financing activities | $(305) | $(1,071) | | Net decrease in cash, cash equivalents and restricted cash | $(354,392) | $(213,844) | - Purchases of marketable debt securities significantly increased cash used in investing activities in H1 2025 to $320.1 million, compared to none in H1 2024[23] Notes to Unaudited Condensed Consolidated Financial Statements These notes detail Ginkgo's business, accounting policies, acquisitions, restructuring, fair value, investments, revenue, and segment data Note 1. Basis of Presentation and Summary of Significant Accounting Policies Ginkgo aims to engineer biology, offering R&D services and biosecurity, effected a 1:40 reverse stock split, and began investing in marketable debt securities - Ginkgo's mission is to make biology easier to engineer, providing biological R&D services through its Foundry (equipment, automation, software, data) and Codebase (biological assets, data)[27] - The Biosecurity business offers biomonitoring and bioinformatics support services (Canopy and Horizon) to identify, monitor, prevent, and mitigate biological threats for government and commercial customers[28] - A one-for-forty (1:40) reverse stock split for common stock was effected on August 19, 2024[30] - In 2025, the company began investing excess cash in marketable debt securities, classified as available-for-sale[35] Note 2. Acquisitions In 2024, Ginkgo acquired platform assets from AgBiome and Zymergen's IP, plus three other asset acquisitions expensed as in-process R&D - On April 10, 2024, Ginkgo acquired platform assets from AgBiome, Inc. for $18.2 million, paid with 407,240 shares of Class A common stock, expanding its metagenomics database[40] - On January 18, 2024, Ginkgo completed the acquisition of substantially all of Zymergen's intellectual property assets for a total cash purchase price of $6.2 million[42] - Three other asset acquisitions during H1 2024 totaled $19.8 million, paid with 394,799 shares of Class A common stock, and were expensed as acquired in-process research and development[45] Note 3. Restructuring A Q2 2024 restructuring plan involves a workforce reduction of over 50% and facility consolidation, with estimated employee termination costs of $27.0-$29.0 million - A restructuring plan commenced in Q2 2024 includes a workforce reduction of more than 50% and consolidation/subleasing of facilities[46] - Estimated costs for workforce reduction range from $27.0 million to $29.0 million, primarily in the Cell Engineering segment[47] Restructuring Costs Incurred (in thousands) | Cost Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Employee termination costs and other | $3,674 | $12,243 | $8,947 | $12,243 | | Impairment of right-of-use asset | — | $4,823 | — | $4,823 | | Total restructuring | $3,674 | $17,066 | $8,947 | $17,066 | - The accrued liability balance related to restructuring activities was $2,568 thousand as of June 30, 2025[50] Note 4. Fair Value Measurements Total assets measured at fair value were $467.5 million as of June 30, 2025, with notes receivable and contingent consideration liabilities decreasing Fair Value Measurements (As of June 30, 2025, in thousands) | Category | Total | Level 1 | Level 2 | Level 3 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Assets: | | | | | | Cash and cash equivalents | $187,762 | $171,888 | $15,835 | $— | | Marketable securities | $270,125 | $154,188 | $115,937 | $— | | Investments | $2,135 | $1,919 | $216 | $— | | Other non-current assets (Notes receivable) | $7,540 | $— | $— | $7,540 | | Total Assets | $467,523 | **$327,9