Standard BioTools(LAB) - 2025 Q2 - Quarterly Results

Overview and Strategic Highlights Recent Highlights and CEO Commentary The company announced the strategic sale of SomaLogic to Illumina, strengthening its balance sheet to pursue inorganic growth and a 2026 profitability target - Announced the strategic sale of SomaLogic to Illumina for up to $425 million in total cash consideration, plus potential future royalties[5] - The company expects to have at least $550 million in cash and cash equivalents upon closing the Illumina transaction, which will be used to fuel its inorganic growth strategy[3][5] - Management is driving toward a profitability target, aiming for adjusted EBITDA break-even in 2026[3][5] - CEO Michael Egholm stated the company is positioned to "continue playing offense" by strategically deploying capital into high-quality, underappreciated assets to drive scale and growth[3] Financial Performance Financial Highlights (Continuing Operations) Q2 2025 continuing operations revenue was $21.8 million, with improved non-GAAP gross margin and a narrower operating loss Q2 & H1 2025 Financial Summary (Continuing Operations) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $21.8M | $22.5M | $42.0M | $44.1M | | Gross Margin | 48.8% | 46.1% | 51.6% | 48.5% | | Non-GAAP Gross Margin | 54.1% | 48.6% | 55.6% | 54.1% | | Operating Loss | $(25.7)M | $(30.3)M | $(52.7)M | $(74.7)M | | Net Loss from Continuing Operations | $(17.7)M | $(25.4)M | $(41.0)M | $(41.8)M | | Adjusted EBITDA | $(16.1)M | $(17.4)M | $(30.2)M | $(34.3)M | | Cash, Cash Equivalents, & Short-term Investments | $239.7M | $397.2M | $239.7M | $397.2M | Detailed Financial Results (Continuing Operations) Q2 2025 revenue from continuing operations decreased 3% to $21.8 million, driven by lower instrument sales, though margins and net loss improved Q2 2025 Revenue Breakdown (Continuing Operations) | Revenue Stream | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Consumables | $10.5M | +18% | | Instruments | $5.2M | -26% | | Services | $6.1M | -8% | | Total Revenue | $21.8M | -3% | - Gross margins improved to 48.8% (54.1% non-GAAP) in Q2 2025 from 46.1% (48.6% non-GAAP) in Q2 2024, driven by favorable product mix and improvements from the Standard BioTools Business System (SBS)[9] - Operating expenses decreased by 11% YoY to $36.3 million, attributed to the realization of merger cost synergies and continued productivity gains[9] - Net loss from continuing operations improved by 31% to $17.7 million in Q2 2025, compared to a net loss of $25.4 million in Q2 2024[9] Full Year 2025 Revenue Outlook The company forecasts full-year 2025 combined revenue of $165-$175 million and continuing operations revenue of $78-$83 million Fiscal Year 2025 Revenue Guidance | Revenue Category | FY 2025 Outlook | | :--- | :--- | | Combined Revenue | $165M - $175M | | Revenue from Continuing Operations | $78M - $83M | - The outlook assumes a high single-digit millions decline in Americas academic revenue due to anticipated NIH funding pressures, with a more pronounced impact on continuing operations[7] Discontinued Operations Performance (SomaLogic) The discontinued SomaLogic business generated $20.2 million in revenue for Q2 2025, with its operating loss narrowing to $15.8 million Discontinued Operations Financial Summary | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $20.2M | $14.7M | $40.8M | $38.6M | | Loss from Discontinued Operations | $(15.8)M | $(20.3)M | $(18.4)M | $(36.0)M | Combined Company Performance On a combined basis, total Q2 2025 revenue grew to $42.0 million, and the total net loss improved to $33.5 million Combined Company Financial Summary | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $42.0M | $37.2M | $82.8M | $82.7M | | Net Loss | $(33.5)M | $(45.7)M | $(59.5)M | $(77.9)M | Financial Statements Consolidated Statements of Operations (Continuing Operations) Continuing operations generated $21.8 million in Q2 2025 revenue, resulting in a net loss of $17.7 million, or ($0.05) per share Q2 2025 Statement of Operations Highlights (Continuing) | Line Item | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Total revenue | $21,762 | $22,492 | | Gross profit | $10,628 | $10,374 | | Total operating expenses | $36,325 | $40,635 | | Loss from continuing operations | $(25,697) | $(30,261) | | Net loss from continuing operations | $(17,673) | $(25,444) | | Net loss per share from continuing operations | $(0.05) | $(0.07) | Consolidated Balance Sheets As of June 30, 2025, the company held total assets of $557.0 million, including $158.6 million in cash and cash equivalents Balance Sheet Highlights (as of June 30, 2025) | Account | Amount (in thousands) | | :--- | :--- | | Assets | | | Cash and cash equivalents | $158,617 | | Short-term investments | $78,468 | | Current assets held for sale | $223,089 | | Total Assets | $556,965 | | Liabilities & Equity | | | Total current liabilities | $98,024 | | Total Liabilities | $132,430 | | Total Stockholders' Equity | $424,535 | Consolidated Statements of Cash Flows For the first half of 2025, net cash used in operating activities was $51.0 million, resulting in a period-end cash balance of $161.2 million Cash Flow Summary (Six Months Ended June 30, 2025) | Activity | Amount (in thousands) | | :--- | :--- | | Net cash used in operating activities | $(50,951) | | Net cash provided by investing activities | $42,130 | | Net cash provided by financing activities | $62 | | Net decrease in cash | $(7,614) | | Cash at end of period | $161,204 | Non-GAAP Reconciliations Continuing Operations Reconciliations For Q2 2025, adjusted EBITDA for continuing operations was a loss of $16.1 million, an improvement from a $17.4 million loss in the prior year Q2 2025 Non-GAAP Reconciliation Highlights (Continuing) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Gross Profit | $10.6M | $11.8M | | Gross Margin | 48.8% | 54.1% | | Operating Expenses | $36.3M | $27.9M | | Adjusted EBITDA | N/A | $(16.1)M | Discontinued Operations Reconciliations The discontinued SomaLogic operations showed an adjusted EBITDA loss of $2.4 million in Q2 2025, a substantial improvement from a $13.7 million loss in Q2 2024 Q2 2025 Non-GAAP Reconciliation Highlights (Discontinued) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Gross Profit | $8.6M | $10.4M | | Gross Margin | 42.8% | 51.3% | | Operating Expenses | $24.8M | $12.8M | | Adjusted EBITDA | N/A | $(2.4)M | Combined Company Reconciliations The combined adjusted EBITDA loss for Q2 2025 was $18.6 million, a marked improvement from a $31.0 million loss in the prior-year quarter Q2 2025 Non-GAAP Reconciliation Highlights (Combined) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Gross Profit | $19.3M | $22.1M | | Gross Margin | 45.9% | 52.8% | | Operating Expenses | $61.1M | $40.7M | | Adjusted EBITDA | N/A | $(18.6)M | Company Information and Disclosures Use of Non-GAAP Measures and Forward-Looking Statements The company utilizes non-GAAP measures to show core performance and cautions that forward-looking statements are subject to risks and uncertainties - Management uses non-GAAP financial measures to supplement GAAP results, believing they provide useful information by excluding items not indicative of core operating performance[12] - Forward-looking statements involve risks related to divestitures, acquisitions, integration, cost savings, market conditions, NIH funding pressures, and competition[13][14] About Standard BioTools Inc. Standard BioTools provides essential technologies like SomaScan and mass cytometry to biomedical researchers, focusing on oncology and immunology - The company's core technologies include SomaScan, mass cytometry, and microfluidics[15] - Standard BioTools serves a global client base in academic, government, and private research sectors, with a focus on oncology and immunology[15]