Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $47.4 million, down from $69.4 million in Q2 2024. Excluding high volume Clean Cap, base revenue increased by 5% year-over-year [19][20] - GAAP net loss before non-controlling interests was $69.8 million for Q2 2025, compared to a loss of $18.4 million in Q2 2024 [20] - Adjusted EBITDA was negative $10.4 million for Q2 2025, down from a positive $13 million in Q2 2024 [21] - Basic and diluted EPS for Q2 2025 was a loss of $0.27 per share, compared to a loss of $0.07 per share in Q2 2024 [21] Business Line Data and Key Metrics Changes - Nucleic Acid Production (NAP) segment revenue was $31.1 million in Q2 2025, with base NAP business excluding high volume Clean Cap up 3% year-over-year [23] - Biologics Safety Testing (BST) segment revenue was $16.3 million in Q2 2025, reflecting a 10% year-over-year increase [24] - Adjusted EBITDA for BST was $10.9 million, resulting in an adjusted EBITDA margin of 67% [24] Market Data and Key Metrics Changes - Revenue by customer type in Q2 2025: 28% biopharma, 30% life sciences and diagnostics, 8% academia, 7% CRO, CMO, CDMO, and 27% to distributors [19] - Revenue by geography: 65% North America, 18% EMEA, 12% Asia Pacific (excluding China), and 5% in China [19] Company Strategy and Development Direction - The company is committed to improving operational excellence and execution through a restructuring plan aimed at reducing annualized expenses by over $15 million [6][7] - Focus on revenue diversification and growth across business segments, particularly in BST and NAP, with investments in new analytical products [10][11] - The company aims to return to sustainable positive adjusted EBITDA and free cash flow by 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for a stronger culture of accountability and operational discipline to drive results [5] - The CEO expressed optimism about the company's future, emphasizing the potential for growth and profitability despite current challenges [15] - The leadership team is focused on stabilizing the organization and exploring further growth opportunities post-restructuring [111] Other Important Information - The company has initiated a comprehensive business review and has withdrawn prior guidance for 2025, planning to reinstate guidance after completing the review [27] - Anticipated restructuring charges of approximately $8 million to $9 million in 2025, primarily for employee severance and related expenses [26] Q&A Session Summary Question: Guidance philosophy and visibility for 2026 targets - Management is focused on controlling costs and gaining confidence in the numbers shared, with no specific red flags indicating incorrect guidance [36][40] Question: Durability of BST improvement and pull forward dynamics - BST showed strong growth, with no significant pull forward dynamics from China or Asia impacting Q2 results [41][43] Question: Growth potential in China - Management expects China to become a growth driver as relations between the U.S. and China improve [47] Question: Impact of tariffs on CDMO business - Currently, there has been little movement regarding tariffs, but potential opportunities exist if tariffs lead to U.S. production shifts [51] Question: Positive surprises and challenges in the business review - Management was surprised by the extent of expenditures and the loyalty of customers in the preclinical to phase three segments [56][58] Question: E-commerce revenue potential - E-commerce currently represents a small percentage of revenue, but management sees significant potential for growth in this area [75][78] Question: Long-term margin potential - Management aims to restore profitability and free cash flow before addressing long-term margin targets [92][94]