Maravai LifeSciences(MRVI) - 2025 Q3 - Quarterly Report

Financial Performance - Revenue for Q3 2025 was $41.63 million, a decrease of 39.8% compared to $69.03 million in Q3 2024[19] - Gross profit for Q3 2025 was $5.66 million, down 82.4% from $32.23 million in Q3 2024[19] - The net loss for Q3 2025 was $45.06 million, compared to a net loss of $172.46 million in Q3 2024, indicating an improvement in financial performance[20] - The company reported a basic and diluted net loss per Class A common share of $0.18 for Q3 2025, compared to $0.68 for Q3 2024[19] - The company experienced a comprehensive loss attributable to Maravai LifeSciences Holdings, Inc. of $25.55 million for Q3 2025, compared to $97.07 million for Q3 2024[20] - For the three months ended September 30, 2025, the net loss was $45,057,000, compared to a net loss of $172,455,000 for the same period in 2024[23] - The company reported a net loss of $45.1 million for the three months ended September 30, 2025, compared to a net loss of $172.5 million in the same period of 2024[161] - Basic and diluted net loss per Class A common share for the three months ended September 30, 2025, was $(0.18), an improvement from $(0.68) in the same period of 2024[128] Revenue Breakdown - For the nine months ended September 30, 2025, total revenue was $135.88 million, down from $202.63 million in the same period of 2024, indicating a decrease of about 32.9%[42][43] - Nucleic Acid Production segment revenue for the three months ended September 30, 2025, was $25.35 million, compared to $53.84 million in the same period of 2024, reflecting a decline of approximately 53.0%[42][43] - Biologics Safety Testing segment revenue for the three months ended September 30, 2025, was $16.28 million, down from $15.18 million in the same period of 2024, showing an increase of about 7.3%[42][43] - Total revenue for the three months ended September 30, 2025, was $25.4 million in Nucleic Acid Production and $16.3 million in Biologics Safety Testing, compared to $53.8 million and $15.2 million for the same period in 2024[162] - For the nine months ended September 30, 2025, total revenue was $85.2 million in Nucleic Acid Production and $50.7 million in Biologics Safety Testing, down from $154.4 million and $48.2 million in 2024[163] Expenses and Costs - Total operating expenses in Q3 2025 were $46.69 million, significantly lower than $197.85 million in Q3 2024, primarily due to a reduction in goodwill impairment[19] - Selling, general and administrative expenses were $35.4 million and $113.5 million for the three and nine months ended September 30, 2025, respectively, compared to $39.1 million and $120.5 million in 2024[164] - Research and development expenses for the nine months ended September 30, 2025, were $13.61 million, slightly down from $14.66 million in the same period of 2024[19] - Research and development expenses for the three and nine months ended September 30, 2025, were $3.8 million and $13.6 million, respectively, compared to $4.7 million and $14.7 million for the same periods in 2024[165] - Total costs of revenue for the three months ended September 30, 2025, were $25.0 million, compared to $25.2 million in the same period of 2024, indicating a slight decrease[161] Cash and Assets - Cash and cash equivalents decreased to $243.57 million as of September 30, 2025, from $322.40 million as of December 31, 2024[17] - Total assets decreased to $849.19 million as of September 30, 2025, down from $1,008.24 million as of December 31, 2024[17] - Total stockholders' equity attributable to Maravai LifeSciences Holdings, Inc. was $245.44 million as of September 30, 2025, a decrease from $325.29 million as of December 31, 2024[17] - Total stockholders' equity as of September 30, 2025, was $431,859,000, a decrease from $612,699,000 as of September 30, 2024[24] - Cash and cash equivalents at the end of the period were $243,574,000, down from $578,157,000 at the end of September 2024[27] Goodwill and Impairment - The Company incurred a goodwill impairment of $42,884,000 for the nine months ended September 30, 2025[27] - The Company's goodwill balance as of September 30, 2025, was $129.429 million, down from $159.878 million as of December 31, 2024, primarily due to a $42.884 million impairment in the Nucleic Acid Production segment[82] - Goodwill impairment of $12.4 million was recorded for the TriLink reporting unit in Q1 2025, and $30.4 million for the Alphazyme reporting unit in Q2 2025 due to lower projected revenues[177][178] Corporate Actions and Plans - The Company implemented a corporate realignment plan in August 2025, terminating approximately 25% of its workforce to reduce operating costs and focus on sustainable long-term growth[79] - Restructuring charges for the three months ended September 30, 2025, totaled $7.386 million, with severance and other compensation expenses accounting for $6.448 million[80] - The company expects the 2025 Corporate Realignment Plan to lower annualized expenses by more than $50.0 million through headcount and non-headcount-related reductions[174] - The company is implementing a phased approach to the 2025 Corporate Realignment Plan, with completion anticipated by the end of Q3 2026[172] Acquisitions - The Company completed the acquisition of Molecular Assemblies for a total purchase consideration of $11.2 million, with $9.2 million paid in cash[63] - The acquisition of Officinae Bio was completed for a total purchase consideration of $15.1 million, with $9.9 million paid in cash[72] - The estimated fair value of identifiable assets acquired from Molecular included $4.57 million in property and equipment and $3.2 million in intangible assets[66] - The estimated fair value of identifiable intangible assets acquired from Officinae included $8.1 million for developed technology and $80,000 for customer relationships[76] Tax and Liabilities - The effective tax rate for the three months ended September 30, 2025, was 0.2%, compared to (0.2)% for the same period in 2024[131] - The Company had unrecognized tax benefits of $0.4 million as of September 30, 2025, down from $3.6 million as of December 31, 2024[133] - The Company had no outstanding liabilities under the Tax Receivable Agreement (TRA) as of September 30, 2025[143] Inventory and Current Liabilities - Total inventory decreased from $50.1 million as of December 31, 2024, to $45.3 million as of September 30, 2025[102] - Accrued expenses and other current liabilities increased from $39.6 million as of December 31, 2024, to $48.1 million as of September 30, 2025[103]