Financial Data and Key Metrics Changes - Total revenue for 2025 was $33 million, a 15% decline from $38.6 million in 2024 [23] - Fourth quarter revenue for 2025 was $7.3 million, down 16% from $8.7 million in Q4 2024 [23] - Core revenue for 2025 was $29.6 million, a 9% decrease from $32.5 million in 2024 [24] - Gross margin in Q4 2025 was 78%, up from 74% in Q4 2024 [26] - Total operating expenses for Q4 2025 were $16.9 million, down from $19.3 million in Q4 2024 [27] Business Line Data and Key Metrics Changes - Instrument revenue for Q4 2025 was $1.8 million, compared to $1.6 million in Q4 2024 [24] - License revenue in Q4 2025 was $2 million, down from $2.6 million in Q4 2024 [24] - PA revenue in Q4 2025 was $2.3 million, compared to $4.2 million in Q4 2024 [24] - SPL program-related revenue for 2025 was $3.4 million, down from $6.1 million in 2024 [26] Market Data and Key Metrics Changes - 47% of core business revenue was derived from SPL customers in 2025, down from 55% in 2024 [25] - The company supports 12 clinical programs across 11 SPL partners, with 5 programs expected to enter pivotal studies over the next 18 months [14][16] Company Strategy and Development Direction - The company launched the ExPERT DTx platform, aimed at enhancing early-stage research and drug discovery [6][8] - The company expects to stabilize and grow its SPL customer base despite recent headwinds [10] - The company is focused on innovation and maintaining a competitive edge in the market [10][18] Management's Comments on Operating Environment and Future Outlook - Management indicated that the challenges faced in 2025 will impact the first half of 2026, with a revenue guidance of $30 million-$32 million for 2026 [9] - Management remains optimistic about the medium-term opportunities, with multiple clinical programs progressing towards commercialization [14][18] - The company has reduced annual cash burn by over $16 million and is on a different spending trajectory [21] Other Important Information - The company ended 2025 with a strong balance sheet, having $155.6 million in cash and no debt [28] - A new CFO, Parmeet Ahuja, will join the company effective March 30 [22] Q&A Session Summary Question: Concerns about business trajectory and core revenue decline - Management clarified that the expected decline in core revenue is due to a $4 million headwind from lost customers, not a deterioration in business fundamentals [31][32] Question: Outlook for core revenues and industry demand - Management indicated that any improvement in industry demand would be upside to the current guidance, which is not contingent on external factors [36] Question: Pipeline and revenue contribution from the DTx platform - Management expects revenue from the DTx platform to begin trickling in during the second half of 2026, with significant contributions anticipated in 2027 [41][42] Question: SPL signing cadence and visibility - Management expressed confidence in signing at least three new SPLs in 2026, with ongoing discussions with potential partners [50][51] Question: SeQure contribution and royalty revenue visibility - Management expects significant year-over-year growth from SeQure Dx in 2026, with approximately $2 million in expected royalty revenue [60]

Financial Data and Key Metrics Changes - Total revenue for 2025 was $33 million, a 15% decline from $38.6 million in 2024. Fourth quarter revenue was $7.3 million, down 16% from $8.7 million in Q4 2024 [23][24]. - Core revenue for 2025 was $29.6 million, a 9% decrease from $32.5 million in 2024. In Q4 2025, core revenue was $6.8 million, down 22% from $8.6 million in Q4 2024 [24][25]. - Gross margin was 78% in Q4 2025, up from 74% in Q4 2024, but non-GAAP adjusted gross margin decreased to 78% from 84% year-over-year [26]. Business Line Data and Key Metrics Changes - Instrument revenue for 2025 was $6.8 million, down from $7.1 million in 2024. License revenue decreased to $8.9 million from $10.3 million, and PA revenue fell to $11.9 million from $14 million [24][25]. - SPL program-related revenue was $3.4 million in 2025, down from $6.1 million in 2024, with $2.3 million from milestone payments and $1.2 million from royalties [25][26]. Market Data and Key Metrics Changes - 47% of core business revenue was derived from SPL customers in 2025, compared to 55% in 2024, reflecting the impact of program exits and reduced purchasing activity [25]. - The company supports 12 clinical programs across 11 SPL partners, with 5 programs expected to enter pivotal studies over the next 18 months [14][16]. Company Strategy and Development Direction - The company launched the ExPERT DTx platform, a modular 96-well electroporation platform aimed at enhancing research and drug discovery applications [6][8]. - The company aims to stabilize and grow its SPL customer base, despite short-term headwinds, and is optimistic about the medium-term opportunities from clinical programs [10][12]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the challenges faced in 2025 would impact the first half of 2026, with guidance for total revenue in 2026 expected to be between $30 million and $32 million [9][10]. - Management expressed confidence in the demand for their technology and the potential for growth, citing ongoing advancements in clinical programs and the launch of new products [10][18]. Other Important Information - The company ended 2025 with a strong balance sheet, reporting $155.6 million in cash and cash equivalents, with no debt [27][28]. - A new CFO, Parmeet Ahuja, will join the company effective March 30, bringing extensive finance leadership experience [22][23]. Q&A Session Questions and Answers Question: Concerns about the trajectory of the business - Management clarified that the expected decline in core business revenue is due to a $4 million headwind from lost customers, not a deterioration in business fundamentals [31][32]. Question: Outlook for core revenues and industry demand - Management indicated that the current guidance does not rely on improvements in industry demand, and any such improvements would be considered upside [36]. Question: Contribution of SeQure Dx to revenue - Management expects significant year-over-year growth for SeQure Dx in 2026, following integration efforts [60]. Question: Customer appetite for ex vivo edits - Management remains optimistic about the ex vivo cell therapy space and believes that increasing complexity in therapies will drive demand for their technology [65].

Financial Data and Key Metrics Changes - Total revenue for 2025 was $33 million, a 15% decline from $38.6 million in 2024. Fourth quarter revenue was $7.3 million, down 16% from $8.7 million in Q4 2024 [23][24] - Core revenue for 2025 was $29.6 million, a 9% decrease from $32.5 million in 2024. Q4 core revenue was $6.8 million, down 22% from $8.6 million in Q4 2024 [24][25] - Gross margin in Q4 2025 was 78%, up from 74% in Q4 2024, while non-GAAP adjusted gross margin was 78% compared to 84% in Q4 2024 [26] Business Line Data and Key Metrics Changes - Instrument revenue for 2025 was $6.8 million, down from $7.1 million in 2024. License revenue decreased to $8.9 million from $10.3 million, and PA revenue fell to $11.9 million from $14 million [24][25] - SPL program-related revenue was $3.4 million in 2025, down from $6.1 million in 2024, with $2.3 million from milestone payments and $1.2 million from royalties [25][26] Market Data and Key Metrics Changes - 47% of core business revenue came from SPL customers in 2025, down from 55% in 2024, reflecting program exits and reduced purchasing activity [25] - The company supports 12 clinical programs across 11 SPL partners, with 5 expected to enter pivotal studies over the next 18 months [12][14] Company Strategy and Development Direction - The company launched the ExPERT DTx platform, aimed at enhancing early-stage research and drug discovery, which is expected to contribute to revenue growth in 2026 and beyond [6][8] - The company is focused on signing new SPL agreements, with a target of 3-5 new agreements in 2026, leveraging its unique platform capabilities [50][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the challenges faced in 2025 would impact the first half of 2026, but expressed confidence in the long-term demand for their technology [10][11] - The company anticipates a stabilization of revenue from SPL customers in the second half of 2026, with optimism about the growth potential of clinical programs [10][12] Other Important Information - The company ended 2025 with $155.6 million in cash and cash equivalents, with no debt, positioning it well for future investments [27][28] - A new CFO, Parmeet Ahuja, will join the company, bringing extensive finance leadership experience [21][22] Q&A Session Summary Question: Concerns about business trajectory and core revenue decline - Management clarified that the expected decline in core revenue is due to a $4 million headwind from lost customers, not a deterioration in business fundamentals [31][32] Question: Outlook for core revenues and industry demand - Management indicated that the current guidance does not rely on an improvement in industry demand, and any such improvement would be considered upside [35] Question: Pipeline and revenue expectations for the DTx platform - Management expects revenue from the DTx platform to begin trickling in during the second half of 2026, with significant contributions anticipated in 2027 [40][41] Question: SPL signing cadence and visibility - Management expressed confidence in signing at least 3 new SPL agreements in 2026, with ongoing discussions with potential partners [50][51] Question: SeQure contribution and royalty revenue visibility - Management expects significant year-over-year growth for SeQure Dx in 2026, with approximately $2 million in expected royalty revenue [58][60]