Maravai LifeSciences(MRVI) - 2025 Q2 - Quarterly Results

Executive Summary & Recent Highlights This section provides an overview of Maravai LifeSciences' Q2 2025 performance, strategic initiatives, and recent leadership appointments Overview of Q2 2025 Performance Maravai LifeSciences reported a 5% year-over-year growth in base business revenue for Q2 2025, excluding high-volume CleanCap sales. However, total revenue decreased significantly, leading to a net loss and negative Adjusted EBITDA, partly due to a goodwill impairment - Quarterly base business revenue, excluding high-volume CleanCap for commercialized vaccine programs, grew 5% year-over-year[1][3] Q2 2025 Key Financial Highlights | Metric | Amount (Millions USD) | | :-------------------- | :-------------------- | | Quarterly Revenue | $47.4 | | Net Loss | $(69.8) | | Adjusted EBITDA | $(10.4) | | Goodwill Impairment | $30.4 | Strategic Initiatives and Leadership Changes The company announced an organizational restructuring and operating cost reduction initiatives targeting over $50 million in annualized cost savings. This comes alongside new executive leadership appointments and strategic expansions in CDMO enablement and mRNA synthesis - Organizational restructuring and operating cost reduction initiatives are targeting more than $50 million in annualized cost savings, comprising labor, facilities, capex, and productivity initiatives[1][4] - Bernd Brust was appointed as the new Chief Executive Officer (CEO) and Raj Asarpota as Chief Financial Officer (CFO) to accelerate innovation, execution, and financial performance[5] - Expanded CDMO enablement strategy with a new license and supply agreement for CleanCap with Thermo Fisher Scientific[5] - Launched an mRNA synthesis kit leveraging TriLink BioTechnologies' high-performing products to simplify the in vitro transcription (IVT) workflow[5] Financial Results This section details Maravai's consolidated revenue performance, net loss, Adjusted EBITDA, and the withdrawal of full-year 2025 guidance Consolidated Revenue Performance Maravai's total revenue for Q2 2025 and the six months ended June 30, 2025, saw significant year-over-year decreases, primarily driven by a lack of high-volume CleanCap orders in Nucleic Acid Production, partially offset by growth in Biologics Safety Testing Total Revenue Performance | Period | 2025 (000's USD) | 2024 (000's USD) | YoY % Change | | :----- | :--------------- | :--------------- | :----------- | | Q2 | $47,397 | $69,423 | (31.7)% | | 6 Months | $94,247 | $133,602 | (29.5)% | Second Quarter 2025 Revenue Second quarter revenue decreased by 31.7% year-over-year. Nucleic Acid Production revenue declined sharply due to reduced high-volume CleanCap orders, while Biologics Safety Testing revenue showed strong growth driven by HCP kits and MockV viral clearance kits Q2 2025 Revenue by Segment | Segment | 2025 (000's USD) | 2024 (000's USD) | YoY % Change | | :---------------------- | :--------------- | :--------------- | :----------- | | Nucleic Acid Production | $31,085 | $54,586 | (43.1)% | | Biologics Safety Testing| $16,312 | $14,837 | 9.9 % | - Nucleic Acid Production revenue decrease was primarily driven by a lack of high-volume CleanCap orders for commercial phase vaccine programs. Excluding high-volume CleanCap, revenue was up 3.0% YoY, driven by growth in GMP products[9] - Biologics Safety Testing revenue increase was primarily driven by strength in Host Cell Protein (HCP) kits and associated HCP qualification services and increased demand for MockV viral clearance kits[9] Six Months Ended June 30, 2025 Revenue Revenue for the first six months of 2025 decreased by 29.5% year-over-year. Nucleic Acid Production experienced a significant decline due to CleanCap and lower demand for research products, while Biologics Safety Testing continued to grow, supported by HCP qualification services and MockV kits Six Months Ended June 30, 2025 Revenue by Segment | Segment | 2025 (000's USD) | 2024 (000's USD) | YoY % Change | | :---------------------- | :--------------- | :--------------- | :----------- | | Nucleic Acid Production | $59,835 | $100,602 | (40.5)% | | Biologics Safety Testing| $34,412 | $33,000 | 4.3 % | - Nucleic Acid Production revenue decrease was primarily driven by a lack of high-volume CleanCap orders for commercial phase vaccine programs and lower demand for research and discovery products. Excluding high-volume CleanCap, revenue was down 11.0% YoY[10] - Biologics Safety Testing revenue growth was driven by strength in HCP qualification services and increased demand for MockV viral clearance kits[10] Net Loss and Adjusted EBITDA Both net loss and Adjusted EBITDA significantly worsened for both the second quarter and the six months ended June 30, 2025, compared to the prior year, reflecting the overall revenue decline and increased operating expenses including goodwill impairment Net Loss and Adjusted EBITDA Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | 6 Months 2025 (Millions USD) | 6 Months 2024 (Millions USD) | | :-------------- | :--------------------- | :--------------------- | :--------------------------- | :--------------------------- | | Net Loss | $(69.8) | $(18.4) | $(122.7) | $(41.1) | | Adjusted EBITDA | $(10.4) | $13.0 | $(21.0) | $20.8 | Second Quarter 2025 Net Loss and Adjusted EBITDA For the second quarter of 2025, the company reported a net loss of $(69.8) million and Adjusted EBITDA of $(10.4) million, a substantial decline from the prior year's net loss of $(18.4) million and positive Adjusted EBITDA of $13.0 million Q2 2025 Net Loss and Adjusted EBITDA | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | | :-------------- | :--------------------- | :--------------------- | | Net Loss | $(69.8) | $(18.4) | | Adjusted EBITDA | $(10.4) | $13.0 | Six Months Ended June 30, 2025 Net Loss and Adjusted EBITDA For the six months ended June 30, 2025, the net loss was $(122.7) million and Adjusted EBITDA was $(21.0) million, compared to a net loss of $(41.1) million and positive Adjusted EBITDA of $20.8 million in the prior year period Six Months Ended June 30, 2025 Net Loss and Adjusted EBITDA | Metric | 6 Months 2025 (Millions USD) | 6 Months 2024 (Millions USD) | | :-------------- | :--------------------------- | :--------------------------- | | Net Loss | $(122.7) | $(41.1) | | Adjusted EBITDA | $(21.0) | $20.8 | Full Year 2025 Guidance Maravai is withdrawing and suspending its revenue guidance for the full year 2025 due to the recent Chief Executive Officer and Chief Financial Officer transition and an ongoing comprehensive business review - Maravai is withdrawing and suspending revenue guidance for 2025 due to the CEO and CFO transition and an ongoing comprehensive business review and forecasting process[12] Corporate Realignment and Cost Reductions Maravai is implementing a corporate realignment and cost reduction plan, targeting over $50 million in annualized savings. The company expects to incur $8.0 million to $9.0 million in restructuring charges, primarily for employee severance and benefits, mostly in the second half of 2025 - The company estimates incurring restructuring charges of approximately $8.0 million to $9.0 million, primarily for employee severance, benefits, and related costs[13] - The majority of restructuring charges are expected to be incurred in the second half of 2025[13] - These initiatives are expected to realize north of $50 million in annualized cost savings[4] Consolidated Financial Statements (GAAP) This section presents Maravai's consolidated statements of operations, highlighting key revenue, expense, and profitability metrics under GAAP for the reported periods Consolidated Statements of Operations The consolidated statements of operations show a significant increase in net loss and loss from operations for both the three and six months ended June 30, 2025, compared to the prior year, largely due to decreased revenue and a substantial goodwill impairment charge Consolidated Statements of Operations (Selected Items, in thousands) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------- | :----------- | :----------- | :------------ | :------------ | | Revenue | $47,397 | $69,423 | $94,247 | $133,602 | | Cost of revenue | $39,629 | $38,582 | $78,754 | $76,917 | | Selling, general and administrative | $38,575 | $40,556 | $78,139 | $81,441 | | Research and development | $4,882 | $4,924 | $9,770 | $9,956 | | Goodwill impairment | $30,449 | — | $42,884 | — | | Total operating expenses | $113,675 | $82,863 | $209,687 | $165,903 | | Loss from operations | $(66,278) | $(13,440) | $(115,440) | $(32,301) | | Net loss | $(69,837) | $(18,420) | $(122,690) | $(41,100) | | Net loss per Class A common share, basic and diluted | $(0.27) | $(0.07) | $(0.48) | $(0.16) | Non-GAAP Financial Measures This section provides reconciliations from GAAP net loss to non-GAAP Adjusted EBITDA and Adjusted Net Loss, along with explanatory notes and definitions of these supplemental financial measures Reconciliation of Net Loss to Adjusted EBITDA The reconciliation from GAAP Net Loss to non-GAAP Adjusted EBITDA shows significant adjustments for non-cash items and other non-recurring costs, including goodwill impairment, leading to a negative Adjusted EBITDA for both periods in 2025 Net Loss to Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------- | :----------- | :----------- | :------------ | :------------ | | Net loss | $(69,837) | $(18,420) | $(122,690) | $(41,100) | | Add: Amortization | $7,200 | $6,869 | $14,230 | $13,738 | | Add: Depreciation | $5,957 | $5,556 | $11,650 | $10,342 | | Add: Interest expense | $6,815 | $11,939 | $13,593 | $22,803 | | Less: Interest income | $(3,030) | $(7,086) | $(6,255) | $(14,296) | | Less: Income tax benefit | $(4,288) | $(2,435) | $(4,126) | $(2,164) | | EBITDA | $(57,183) | $(3,577) | $(93,598) | $(10,677) | | Add: Goodwill impairment | $30,449 | — | $42,884 | — | | Add: Stock-based compensation | $6,789 | $13,763 | $17,192 | $25,820 | | Adjusted EBITDA (non-GAAP) | $(10,410) | $12,989 | $(20,959) | $20,784 | Reconciliation of Net Loss to Adjusted Net Loss and Adjusted Fully Diluted Loss Per Share The reconciliation for Adjusted Net Loss and Adjusted Fully Diluted Loss Per Share highlights the impact of various non-GAAP adjustments, including goodwill impairment and stock-based compensation, on the company's profitability metrics Adjusted Net Loss and Adjusted Fully Diluted Loss Per Share Reconciliation (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------------------------------ | :----------- | :----------- | :------------ | :------------ | | Net loss attributable to Maravai LifeSciences Holdings, Inc. | $(39,591) | $(9,789) | $(69,536) | $(21,867) | | Tax-effected net loss | $(62,633) | $(16,367) | $(110,030) | $(36,517) | | Goodwill impairment | $30,449 | — | $42,884 | — | | Stock-based compensation | $6,789 | $13,763 | $17,192 | $25,820 | | Adjusted net loss (non-GAAP) | $(20,837) | $(3,053) | $(41,273) | $(8,421) | | Adjusted fully diluted loss per share (non-GAAP) | $(0.08) | $(0.01) | $(0.16) | $(0.03) | Explanatory Notes and Non-GAAP Definitions This section provides detailed explanations for the adjustments made in the non-GAAP reconciliations, such as acquisition contingent consideration, integration costs, stock-based compensation, and impairment charges. It also defines Adjusted EBITDA, Adjusted Net Loss, and Adjusted fully diluted EPS, clarifying their purpose as supplemental measures and their limitations compared to GAAP - Adjustments include acquisition contingent consideration, acquisition integration costs (including retention payments for MyChem and Alphazyme), non-cash stock-based compensation, merger and acquisition related expenses, acquisition related tax adjustments, executive leadership transition costs, goodwill impairment, property and equipment impairment, restructuring costs, and other non-recurring costs[19][20] - Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization, certain non-cash items, and other adjustments not considered representative of ongoing operating performance[22] - Adjusted Net Loss is defined as tax-effected earnings before the specified adjustments and their tax effects. Adjusted fully diluted EPS is Adjusted Net Loss divided by diluted weighted average shares, assuming proforma exchange of Class B common stock[22] - These non-GAAP measures are supplemental, not GAAP alternatives, used by management to understand core operating performance and trends, but have limitations and should not be considered in isolation[23][24][25] Company Information This section provides an overview of Maravai LifeSciences, its forward-looking statements, key risk factors, and investor contact information About Maravai Maravai LifeSciences is a leading life sciences company that provides critical products and services for drug therapies, diagnostics, novel vaccines, and human disease research, specializing in nucleic acid synthesis and biologics safety testing - Maravai is a leading life sciences company providing critical products to enable the development of drug therapies, diagnostics, and novel vaccines and to support research on human diseases[26] - Maravai's companies are leaders in providing products and services in nucleic acid synthesis and biologics safety testing to biopharmaceutical, vaccine, diagnostics, and cell and gene therapy companies[26] Forward-Looking Statements & Risk Factors This section includes a cautionary statement regarding forward-looking statements, emphasizing that actual results may differ materially due to inherent uncertainties and risks. It outlines numerous factors that could impact Maravai's financial condition and operations, ranging from customer demand and operational efficiency to competition, regulatory changes, intellectual property, and financial obligations - Forward-looking statements are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of management's control[29] - Key risk factors include customer spending and demand, realization of operational benefits from organizational changes, revenue fluctuation, dependency on CleanCap sales, impact of trade policy, ability to attract and retain skilled workforce, risks related to product use in new therapies, competition, product performance and quality, market acceptance, acquisition management, geopolitical instability, product liability, customer/supplier reliance, regulatory scrutiny, intellectual property protection, cybersecurity, indebtedness, tax agreements, and corporate governance[29][30][31] Contact Information Contact details for investor relations are provided for inquiries regarding Maravai LifeSciences - Contact for investor relations: Deb Hart, +1 858-988-5917, ir@maravai.com[33]