Ginkgo Bioworks (DNA) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Highlights Second Quarter 2025 Financial Performance Ginkgo Bioworks reported a decrease in total revenue for Q2 2025 compared to the prior year, primarily due to a significant drop in Biosecurity revenue, while Cell Engineering revenue increased by 8%, and the company significantly reduced its GAAP net loss and improved Adjusted EBITDA | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :----------------------- | :-------------------- | :-------------------- | :----------- | | Total Revenue | $50 | $56 | -10.7% | | Cell Engineering Revenue | $39 | $36 | +8.3% | | Biosecurity Revenue | $10 | $20 | -50.0% | | GAAP Net Loss | $(60) | $(217) | Improved | | Adjusted EBITDA | $(28) | $(99) | Improved | - Cash, cash equivalents, and marketable securities stood at $474 million as of June 30, 2025[6] Recent Business Highlights & Strategic Positioning Ginkgo's platform is increasingly recognized as a critical engine for AI in biology, driving commercial traction through new government contracts and expanded biopharma service offerings, reinforcing its position in preclinical R&D and direct-to-scientist solutions - Ginkgo's Automation and Datapoints offerings are establishing themselves as critical tools in AI-powered bioengineering[6] - Pacific Northwest National Laboratory (PNNL) selected Ginkgo Automation to deliver a state-of-the-art automated anaerobic phenotyping platform[6] - Ginkgo launched a new in vitro ADME profiling Service, built on its proprietary RAC automation system, designed for scale, efficiency, and cost-effective assay quality[6] - Ginkgo launched its first direct-to-scientist product: an E. coli-based cell-free protein synthesis system optimized for high production and automation compatibility[6] Full Year 2025 Outlook Ginkgo achieved its annualized cost reduction target ahead of schedule and reaffirms its full-year 2025 revenue guidance, while continuing to work towards Adjusted EBITDA breakeven by the end of 2026 - Ginkgo achieved its target to reach $250 million in annualized cost reduction three months ahead of schedule through reductions in force and other cost-cutting measures[6] - Ginkgo reaffirms Total revenue guidance of $167-$187 million for 2025[6] - The company expects Cell Engineering revenue of $117-$137 million and Biosecurity revenue of at least $40 million in 2025[6] - Ginkgo continues to progress towards its objective to reach Adjusted EBITDA breakeven by the end of 2026[6] Company Information & Disclosures Conference Call Details Ginkgo Bioworks scheduled a videoconference for August 7, 2025, to discuss its second-quarter results, business updates, and outlook, including a Q&A session - Ginkgo will host a videoconference on Thursday, August 7, 2025, at 5:30 p.m. ET, with a webcast link available on its Investor Relations website[7][8] About Ginkgo Bioworks Ginkgo Bioworks is a platform company focused on making biology easier to engineer, offering R&D solutions, laboratory automation, data generation for AI models, and biosecurity infrastructure - Ginkgo Bioworks provides R&D Solutions (protein engineering, nucleic acid design, cell-free systems), Ginkgo Automation (modular lab automation), Ginkgo Datapoints (large lab data sets for AI), and Ginkgo Biosecurity (infrastructure for biological threats)[10] Forward-Looking Statements The report contains forward-looking statements regarding future plans, operations, and financial results, which are subject to various risks and uncertainties that could cause actual outcomes to differ materially - Forward-looking statements in the press release, presentation, and conference call are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[11][13] - Key risks include the ability to realize cost savings from site consolidation, volatility in securities prices, demand for synthetic biology products and biosecurity services, and outcomes of legal proceedings[13] Use of Non-GAAP Financial Measures Ginkgo includes non-GAAP financial measures, such as Adjusted EBITDA, to offer investors additional tools for evaluating financial performance, emphasizing that these should be considered supplemental to, not isolated from, GAAP measures - Non-GAAP financial measures, including Adjusted EBITDA, are provided as an additional tool for investors but should not be considered in isolation or as an alternative to GAAP measures[14] Investor & Media Contacts Contact information is provided for investor relations and media inquiries - Investor inquiries can be directed to investors@ginkgobioworks.com, and media inquiries to press@ginkgobioworks.com[15] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets The balance sheet shows a decrease in total assets and stockholders' equity from December 31, 2024, to June 30, 2025, primarily driven by a reduction in cash and cash equivalents, partially offset by an increase in marketable securities | Metric (in thousands) | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------- | :------------------ | :---------------------- | | Total Assets | $1,231,009 | $1,377,449 | | Total Liabilities | $618,057 | $661,391 | | Total Stockholders' Equity | $612,952 | $716,058 | | Cash and cash equivalents | $203,566 | $561,572 | | Marketable securities | $270,125 | — | Condensed Consolidated Statements of Operations and Comprehensive Loss For the three and six months ended June 30, 2025, Ginkgo reported a significant reduction in net loss and loss from operations compared to the prior year periods, despite a slight decrease in total revenue for the quarter, largely due to reduced operating expenses, particularly in research and development and general and administrative costs | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $49,604 | $56,206 | $97,922 | $94,150 | | Loss from operations | $(65,541) | $(222,945) | $(154,509) | $(400,947) | | Net loss | $(60,300) | $(217,181) | $(151,257) | $(383,092) | | Basic Net loss per share | $(1.10) | $(4.23) | $(2.77) | $(7.55) | | Diluted Net loss per share | $(1.10) | $(4.23) | $(2.77) | $(7.56) | - Research and development expenses decreased significantly from $134.221 million in Q2 2024 to $53.370 million in Q2 2025[19] - General and administrative expenses also saw a notable reduction from $66.285 million in Q2 2024 to $43.279 million in Q2 2025[19] Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities decreased, but net cash used in investing activities increased substantially due to significant purchases of marketable debt securities, resulting in a larger overall net decrease in cash and cash equivalents compared to the prior year | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 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) | | Cash, cash equivalents and restricted cash, end of period | $251,351 | $775,740 | - Purchases of marketable debt securities totaled $320.132 million for the six months ended June 30, 2025, compared to none in the prior year period[22] Segment Information Ginkgo's segment reporting shows that Cell Engineering revenue increased while Biosecurity revenue decreased for both the three and six months ended June 30, 2025, with both segments continuing to report operating losses, though Cell Engineering significantly reduced its loss year-over-year | Segment (in thousands) | Q2 2025 Revenue | Q2 2024 Revenue | 6M 2025 Revenue | 6M 2024 Revenue | | :--------------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Cell Engineering | $39,134 | $36,205 | $77,364 | $64,094 | | Biosecurity | $10,470 | $20,001 | $20,558 | $30,056 | | Operating Loss | | | | | | Cell Engineering | $(9,937) | $(83,024) | $(41,525) | $(175,277) | | Biosecurity | $(4,815) | $(3,443) | $(9,999) | $(14,661) | - Cell Engineering operating loss significantly improved from $(83.024) million in Q2 2024 to $(9.937) million in Q2 2025[25] - Restructuring charges for Q2 2025 were $3.674 million, a substantial decrease from $17.066 million in Q2 2024, primarily consisting of employee termination costs[25][31] Selected Non-GAAP Financial Measures Reconciliation The reconciliation of GAAP net loss to Adjusted EBITDA demonstrates a significant improvement in Adjusted EBITDA for both the three and six months ended June 30, 2025, compared to the prior year periods, reflecting the impact of cost reduction efforts and other adjustments | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(60,300) | $(217,181) | $(151,257) | $(383,092) | | Adjusted EBITDA | $(28,061) | $(99,199) | $(75,512) | $(216,200) | - Adjusted EBITDA improved by $71.138 million for the three months ended June 30, 2025, and by $140.688 million for the six months ended June 30, 2025, compared to the respective prior year periods[30] - Adjustments to Net Loss for Adjusted EBITDA include significant reductions in stock-based compensation and the absence of goodwill impairment charges in 2025, which were present in 2024[30]