Standard BioTools(LAB) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenue for Q3 2025 was $19.552 million, a decrease of 11% from $22.086 million in Q3 2024[16] - Product revenue decreased to $13.800 million in Q3 2025, down 12.5% from $15.779 million in Q3 2024[16] - Gross profit for Q3 2025 was $9.484 million, compared to $12.126 million in Q3 2024, reflecting a decline of 21.5%[16] - The net loss for Q3 2025 was $34.687 million, compared to a net loss of $26.938 million in Q3 2024, representing a 28.5% increase in losses[16] - For the nine months ended September 30, 2025, the net loss was $94,179, compared to a net loss of $104,813 for the same period in 2024, representing a 9% improvement[24] - The Company reported a net loss from continuing operations of $31,684,000 for the three months ended September 30, 2025, compared to a net loss of $21,919,000 for the same period in 2024[103] Operating Expenses - Total operating expenses increased to $42.422 million in Q3 2025, up 9.5% from $38.825 million in Q3 2024[16] - Research and development expenses were $6.356 million in Q3 2025, a decrease of 8.4% from $6.939 million in Q3 2024[16] - Selling, general and administrative expenses rose to $26.595 million in Q3 2025, an increase of 8.7% from $24.466 million in Q3 2024[16] - Stock-based compensation expense for the quarter ending June 30, 2025, amounted to $8.474 million, reflecting an increase from $6.387 million in the previous quarter[20] - Stock-based compensation expense for the three months ended September 30, 2025, totaled $7,536,000, an increase from $4,649,000 in the same period in 2024[97] - The company recognized restructuring charges of approximately $10.8 million for workforce reductions and incurred an additional $2.2 million in facility-related restructuring expenses during the nine months ended September 30, 2025[116] Cash and Assets - Cash and cash equivalents decreased to $129.418 million as of September 30, 2025, down from $166.728 million at the end of 2024[14] - Total current assets increased to $472.439 million as of September 30, 2025, compared to $375.883 million at the end of 2024[14] - The total assets held for sale as of September 30, 2025, amounted to $230.7 million, with total liabilities of $22.2 million[65] - Cash and cash equivalents at the end of the period totaled $132,006, down from $211,938 at the end of the same period in 2024[24] - The fair value of total assets measured at fair value as of September 30, 2025, was $186,544,000, with cash equivalents and short-term investments comprising a significant portion[91] Liabilities and Equity - Total liabilities decreased slightly to $139.977 million as of September 30, 2025, from $140.623 million at the end of 2024[14] - As of September 30, 2025, total stockholders' equity was $399.659 million, with an accumulated deficit of $1,279.83 million[20] - The balance of restructuring liabilities at September 30, 2025, was $6.311 million, reflecting ongoing adjustments from previous restructuring plans[117] Business Operations and Strategy - The company expects the acquisition of SomaLogic and Sengenics to close in the first half of 2026, which will enhance its capabilities in the proteomics sector[32] - The Company completed the merger with SomaLogic on January 5, 2024, with a fair value of consideration transferred amounting to $444.2 million and recognized a gain on bargain purchase of $25.2 million[52] - The Company acquired 100% of Sengenics on November 21, 2024, further expanding its business operations[54] - The divestiture of the SomaScan Business to Illumina is expected to close in the first half of 2026, with an aggregate cash consideration of up to $425 million, including an upfront payment of $350 million[58][60] - The company has classified the results of the SomaScan Business as discontinued operations, impacting its financial reporting[34] Future Outlook - The Company updated its forecast for future sales under the Collaboration Agreement, reducing the transaction price from $158.4 million to $155.5 million due to decreased forecasted royalties[57] - The company expects to recognize $3,964,000 in revenue from unfulfilled performance obligations in the remainder of 2025[70] - The company plans to consolidate its R&D capabilities from South San Francisco to Singapore, with the process expected to be completed by December 31, 2025[113] Market and Economic Conditions - The company does not believe inflation has materially affected its business in the last two years, but anticipates increases in labor and operating costs if global inflation trends continue[184] - The company has not hedged its foreign currency exposure, which could materially affect its financial condition and results of operations[183]