Rapid Micro Biosystems(RPID) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results Overview The company reported a 10% increase in total revenue to $7.3 million, driven by service and product growth, with gross margin improving to 4% and a new $45 million term loan facility secured CEO Commentary and Business Highlights CEO Robert Spignesi highlighted 10% total revenue growth, driven by service and product segments, and announced a new $45 million term loan facility - Total revenue increased 10%, driven by an 18% increase in Service revenue. Product revenue increased by 6%, led by mid-teens growth in consumables[3] - Announced a new five-year, $45 million term loan facility, with $20 million funded upfront with highly favorable terms, significantly strengthening the financial position[3] - Strategic priorities remain unchanged: delivering significant long-term revenue growth, gross margin expansion, and shareholder value[3] Q2 2025 Key Financial Highlights Total revenue grew 10% to $7.3 million, recurring revenue increased 15%, gross margin improved to 4%, and full-year guidance was reaffirmed Q2 2025 Key Financial Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :----- | :------ | :------ | :--------- | | Total Revenue | $7.3 | $6.6 | +10% | | Recurring Revenue | $4.4 | $3.8 | +15% | | Gross Margin | 4% | -3% | +7 ppts | - Enters into five-year, $45 million term loan facility with $20 million funded at close[9] - Reaffirms full-year 2025 total revenue guidance of at least $32.0 million[9] Detailed Second Quarter 2025 Financial Performance Q2 2025 saw total revenue increase 10% to $7.3 million, gross margin improve to 4%, operating expenses decrease 6%, and net loss narrow to $11.9 million Revenue Breakdown Total revenue increased 10% to $7.3 million, driven by 18% service revenue growth and 6% product revenue growth, with recurring revenue up 15% Q2 2025 Revenue Breakdown | Revenue Type | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :----------- | :----------------- | :----------------- | :------------- | | Total Revenue | $7.3 | $6.6 | +10% | | Product Revenue | $4.8 | $4.5 | +6% | | Service Revenue | $2.5 | $2.1 | +18% | | Recurring Revenue | $4.4 | $3.8 | +15% | - The company placed four new Growth Direct® systems and completed two customer system validations, a decrease from the prior year[4] Cost of Revenue and Gross Margin Total cost of revenue increased 3% to $7.0 million, while gross margin significantly improved by 7 percentage points to positive 4% Q2 2025 Cost of Revenue and Gross Margin | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :----- | :----------------- | :----------------- | :------------- | | Total Cost of Revenue | $7.0 | $6.8 | +3% | | Gross Margin | 4% ($0.3) | -3% (-$0.2) | +7 ppts | Operating Expenses Total operating expenses decreased 6% to $12.4 million, driven by reductions in R&D and sales and marketing, despite a rise in G&A Q2 2025 Operating Expenses Changes | Expense Type | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change (%) | | :----------- | :----------------- | :----------------- | :------------- | | Total Operating Expenses | $12.4 | $13.2 | -6% | | General and Administrative | $6.079 | $5.818 | +4% | | Research and Development | $3.230 | $3.744 | -14% | | Sales and Marketing | $3.114 | $3.627 | -14% | Net Loss and Cash Position Net loss improved to $11.9 million, with loss per share at $0.27, and cash position stood at approximately $32 million Q2 2025 Net Loss Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | | :----- | :------ | :------ | | Net Loss | -$11.9 | -$12.6 | | Net Loss per Share | -$0.27 | -$0.29 | - Cash, cash equivalents, short-term investments, and restricted cash totaled approximately $32 million as of June 30, 2025[7] 2025 Financial Outlook The company reaffirmed its full-year 2025 total revenue guidance of at least $32.0 million Full-Year Guidance Rapid Micro Biosystems reaffirmed its full-year 2025 total revenue guidance of at least $32.0 million - The company is reaffirming its full-year 2025 total revenue guidance of at least $32.0 million[8] Strategic Financial Initiatives The company secured a new five-year, $45 million term loan facility, with $20 million funded upfront and additional tranches contingent on milestones New Term Loan Facility A new five-year, $45 million term loan facility was secured, with $20 million funded at close and additional tranches tied to milestones - Entered into a five-year, $45 million term loan facility with Trinity Capital Inc[10] - Received $20 million at close through the first tranche, with access to two additional tranches totaling $20 million contingent on commercial and operational milestones[10] - A fourth tranche of $5 million is available at the lender's discretion[10] Company Profile Rapid Micro Biosystems is an innovative life sciences technology company providing automated microbial quality control solutions for healthcare product manufacturing About Rapid Micro Biosystems Rapid Micro Biosystems is an innovative life sciences technology company offering automated microbial quality control solutions for healthcare product manufacturing - Innovative life sciences technology company providing mission-critical automation solutions for efficient manufacturing and safe release of healthcare products[13] - The flagship Growth Direct system automates and modernizes manual microbial quality control (MQC) testing workflows[13] - Headquartered in Lexington, Massachusetts, with U.S. manufacturing in Lowell, Massachusetts, and global locations in Switzerland, Germany, and the Netherlands[13] Unaudited Condensed Consolidated Financial Statements The unaudited financial statements detail Q2 2025 operations, balance sheet, and cash position, showing improved net loss and changes in assets and liabilities Unaudited Condensed Consolidated Statements of Operations The statements show an improved net loss of $11.9 million for Q2 2025, with total revenue increasing to $7.3 million due to revenue growth Unaudited Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Product revenue | $4,802 | $4,537 | $8,903 | $8,250 | | Service revenue | $2,460 | $2,081 | $5,564 | $3,979 | | Total revenue | $7,262 | $6,618 | $14,467 | $12,229 | | Total costs and operating expenses | $19,410 | $19,996 | $38,276 | $39,880 | | Net loss | $(11,858) | $(12,578) | $(23,121) | $(25,900) | | Net loss per share | $(0.27) | $(0.29) | $(0.52) | $(0.60) | Unaudited Condensed Consolidated Balance Sheets Total assets decreased to $75.6 million, total liabilities to $21.0 million, and stockholders' equity to $54.5 million as of June 30, 2025 Unaudited Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :-------------------- | :------------ | :---------------- | | Total current assets | $60,146 | $80,917 | | Total assets | $75,586 | $98,169 | | Total current liabilities | $16,403 | $17,565 | | Total liabilities | $21,041 | $22,817 | | Total stockholders' equity | $54,545 | $75,352 | Unaudited Cash, Cash Equivalents and Investments Cash, cash equivalents, and investments decreased to $31.3 million as of June 30, 2025, primarily due to reduced short-term investments Unaudited Cash, Cash Equivalents and Investments (in thousands) | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $18,333 | $16,911 | | Short-term investments | $12,922 | $33,821 | | Cash, cash equivalents and investments | $31,255 | $50,732 | Other Information This section provides details on the Q2 2025 webcast, investor relations disclosure, forward-looking statements, and company contacts Webcast Details A conference call was held on August 12, 2025, to discuss Q2 2025 financial results, with webcast access and replay available - The company hosted a conference call on August 12, 2025, at 8:30 a.m. ET to discuss its second quarter 2025 financial results[12] - The live call is accessible on the company's investor relations website and will be archived for one year[12] Investor Relations Disclosure The company uses its Investor Relations page for disclosing material nonpublic information and fulfilling Regulation FD obligations - Rapid Micro Biosystems intends to use its Investor Relations page for disclosing material nonpublic information and complying with Regulation FD obligations[14] Forward-Looking Statements This section outlines forward-looking statements regarding future performance, including revenue guidance and cash flow, and details associated risks and uncertainties - Includes forward-looking statements on full-year 2025 total revenue guidance, Growth Direct placements, cash flow breakeven, debt facility impact, cost reduction, and product innovation[15] - Forward-looking statements involve inherent risks and uncertainties, including achieving positive cash flow, meeting business objectives, managing significant losses, debt obligations, market competition, technological changes, supply chain disruptions, and macroeconomic factors[16][17] Contacts Contact information is provided for investor relations and media inquiries - Investor Contact: Michael Beaulieu, CFA, Vice President, Investor Relations and Corporate Communications, investors@rapidmicrobio.com[18] - Media Contact: media@rapidmicrobio.com[18]