Ginkgo Bioworks Reports Second Quarter 2025 Financial Results
Ginkgo provides an update on its restructuring, including achievement of its expanded
Second Quarter 2025 Financial Results
- Second quarter 2025 Total revenue of
$50 million , down from$56 million in the comparable prior year period- Second quarter 2025 Cell Engineering revenue of
$39 million , up from$36 million in the comparable prior year period, an increase of 8%, primarily driven by growth with biopharma and government customers - Second quarter 2025 Biosecurity revenue of
$10 million , down from$20 million in the comparable prior year period
- Second quarter 2025 Cell Engineering revenue of
- Second quarter 2025 GAAP net loss of
$(60) million , compared to$(217) million in the comparable prior year period - Second quarter 2025 Adjusted EBITDA of
$(28) million , up from$(99) million in the comparable prior year period, driven by a decrease in operating expenses - Cash, cash equivalents and marketable securities balance as of
June 30, 2025 of$474 million
"Our platform is proving to be a critical engine for AI in biology, with growing demand for our automation and data generation capabilities," said
Recent Business Highlights & Strategic Positioning
- Ginkgo's Automation and Datapoints offerings continue to establish themselves as critical tools in AI-powered bioengineering
Pacific Northwest National Laboratory (PNNL) selected Ginkgo Automation to deliver a state-of-the-art automated anaerobic phenotyping platform, to assist with what is believed to be the largest automated anaerobic system for research in the world- Ginkgo launched a new in vitro ADME profiling Service, built on its proprietary RAC automation system. Designed for scale and efficiency, the Service delivers assay quality at cost-effective pricing and includes a price-matching guarantee. By automating traditionally labor-intensive assays and executing them onshore, Ginkgo enables customers to profile more compounds earlier, accelerate decision-making, train AI/ML models, and reduce costs while protecting valuable IP. This launch strengthens Ginkgo's position as a differentiated US-based partner in preclinical R&D analytical services for small molecule drug development.
- Ginkgo launched its first direct-to-scientist product: a cell-free protein synthesis system
- This E. coli-based system is optimized for high production from linear DNA, increased solubility of difficult-to-express proteins, and compatibility with automation
- Ginkgo continues to progress towards its objective to reach Adjusted EBITDA breakeven by the end of 2026
- Ginkgo has achieved its target to reach
$250 million in annualized cost reduction three months ahead of schedule, through reductions in force and other cost cutting measures. Site consolidation efforts were substantially completed by the year ended 2024, with excess space available for sublease.
- Ginkgo has achieved its target to reach
Full Year 2025 Outlook
- Ginkgo reaffirms Total revenue of
$167-$187 million in 2025- Ginkgo continues to expect Cell Engineering revenue of
$117-$137 million in 2025 - Ginkgo expects Biosecurity revenue of at least
$40 million in 2025
- Ginkgo continues to expect Cell Engineering revenue of
Conference Call Details
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To ask a question ahead of the presentation, please submit your questions to @Ginkgo on X (hashtag #GinkgoResults) or by sending an e-mail to investors@ginkgobioworks.com.
A webcast link is available on Ginkgo's Investor Relations website and a replay will be made available following the presentation.
Ginkgo Investor Website: https://investors.ginkgobioworks.com/events/
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About
Forward-Looking Statements of
This press release, the presentation, and the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, including with respect to technology adaptations to meet our customers' needs, strategies, including with respect to our current expectations, operations and anticipated results of operations, both business and financial, including the timing for attaining Adjusted EBITDA breakeven, impacts of our restructuring, potential customer success, including successful application of our offerings by our customers, and expectations with regard to revenue, including our ability to meet all milestones and achieve the maximum revenue available under certain of our customer arrangements, expenses, our full year 2025 outlook, and the market environment, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements generally are identified by the words "believe," "can," "project," "potential," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to: (i) our ability to realize near-term and long-term cost savings associated with our site consolidation plans, including the ability to terminate leases or find sub-lease tenants for unused facilities, (ii) volatility in the price of Ginkgo's securities due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, and changes in laws and regulations affecting Ginkgo's business, (iii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, including with respect to our solutions and tools offerings, (iv) the risk of downturns in demand for products using synthetic biology, (v) the uncertainty regarding the demand for passive monitoring programs and biosecurity services, (vi) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, (vii) the outcome of any pending or potential legal proceedings against Ginkgo, (viii) our ability to realize the expected benefits from and the success of our Foundry platform programs and Codebase assets, (ix) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, (x) the product development, production or manufacturing success of our customers, (xi) our exposure to the volatility and liquidity risks inherent in holding equity interests in other operating companies and other non-cash consideration we may receive for our services, (xii) the potential negative impact on our business of our restructuring or the failure to realize the anticipated savings associated therewith and (xiii) the uncertainty regarding government budgetary priorities and funding allocated to government agencies. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of Ginkgo's annual report on Form 10-K filed with the
Use of Non-GAAP Financial Measures
Certain of the financial measures included in this release, including Adjusted EBITDA, have not been prepared in accordance with generally accepted accounting principles ("GAAP"), and constitute "non-GAAP financial measures" as defined by the
Ginkgo Bioworks Contacts:
INVESTOR CONTACT:
investors@ginkgobioworks.com
MEDIA CONTACT:
press@ginkgobioworks.com
|
Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share data) |
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|||
|
|
As of |
|
As of |
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 203,566 |
|
$ 561,572 |
|
Marketable securities |
270,125 |
|
— |
|
Accounts receivable, net |
22,152 |
|
21,857 |
|
Accounts receivable - related parties |
974 |
|
586 |
|
Prepaid expenses and other current assets |
26,208 |
|
18,729 |
|
Total current assets |
523,025 |
|
602,744 |
|
Property, plant and equipment, net |
186,354 |
|
203,720 |
|
Operating lease right-of-use assets |
375,796 |
|
394,435 |
|
Investments |
32,662 |
|
48,704 |
|
Intangible assets, net |
66,152 |
|
72,510 |
|
Other non-current assets |
47,020 |
|
55,336 |
|
Total assets |
$ 1,231,009 |
|
$ 1,377,449 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 11,202 |
|
$ 14,169 |
|
Deferred revenue (includes |
28,287 |
|
27,710 |
|
Accrued expenses and other current liabilities |
57,231 |
|
65,387 |
|
Total current liabilities |
96,720 |
|
107,266 |
|
Non-current liabilities: |
|
|
|
|
Deferred revenue, net of current portion (includes |
74,566 |
|
98,783 |
|
Operating lease liabilities, non-current |
428,827 |
|
438,766 |
|
Other non-current liabilities |
17,944 |
|
16,576 |
|
Total liabilities |
618,057 |
|
661,391 |
|
Commitments and contingencies (Note 10) |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, |
— |
|
— |
|
Common stock, |
6 |
|
5 |
|
Additional paid-in capital |
6,600,107 |
|
6,555,416 |
|
Accumulated deficit |
(5,988,814) |
|
(5,837,557) |
|
Accumulated other comprehensive income (loss) |
1,653 |
|
(1,806) |
|
Total stockholders' equity |
612,952 |
|
716,058 |
|
Total liabilities and stockholders' equity |
$ 1,231,009 |
|
$ 1,377,449 |
|
|
|
The accompanying notes are an integral part of these condensed consolidated financial statements. |
|
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) (in thousands, except share data) |
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Three Months Ended |
|
Six Months Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Cell Engineering revenue (1) |
$ 39,134 |
|
$ 36,205 |
|
$ 77,364 |
|
$ 64,094 |
|
Biosecurity revenue |
10,470 |
|
20,001 |
|
20,558 |
|
30,056 |
|
Total revenue |
49,604 |
|
56,206 |
|
97,922 |
|
94,150 |
|
Costs and operating expenses: |
|
|
|
|
|
|
|
|
Cost of Biosecurity revenue |
9,442 |
|
11,807 |
|
17,399 |
|
21,009 |
|
Cost of other revenue |
5,380 |
|
1,914 |
|
9,470 |
|
1,914 |
|
Research and development |
53,370 |
|
134,221 |
|
124,293 |
|
270,678 |
|
General and administrative |
43,279 |
|
66,285 |
|
92,322 |
|
136,572 |
|
|
— |
|
47,858 |
|
— |
|
47,858 |
|
Restructuring charges |
3,674 |
|
17,066 |
|
8,947 |
|
17,066 |
|
Total operating expenses |
115,145 |
|
279,151 |
|
252,431 |
|
495,097 |
|
Loss from operations |
(65,541) |
|
(222,945) |
|
(154,509) |
|
(400,947) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income, net |
6,083 |
|
10,313 |
|
12,164 |
|
22,024 |
|
Loss on investments |
(229) |
|
(6,826) |
|
(3,922) |
|
(9,370) |
|
Change in fair value of warrant liabilities |
— |
|
3,233 |
|
— |
|
4,173 |
|
Other income (expense), net |
(896) |
|
(766) |
|
(5,185) |
|
1,249 |
|
Total other income |
4,958 |
|
5,954 |
|
3,057 |
|
18,076 |
|
Loss before income taxes |
(60,583) |
|
(216,991) |
|
(151,452) |
|
(382,871) |
|
Income tax (benefit) expense |
(283) |
|
190 |
|
(195) |
|
221 |
|
Net loss |
$ (60,300) |
|
$ (217,181) |
|
$ (151,257) |
|
$ (383,092) |
|
Net loss per share: |
|
|
|
|
|
|
|
|
Basic |
$ (1.10) |
|
$ (4.23) |
|
$ (2.77) |
|
$ (7.55) |
|
Diluted |
$ (1.10) |
|
$ (4.23) |
|
$ (2.77) |
|
$ (7.56) |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
54,858,982 |
|
51,370,029 |
|
54,552,006 |
|
50,740,744 |
|
Diluted |
54,858,982 |
|
51,375,599 |
|
54,552,006 |
|
50,746,314 |
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
Net loss |
$ (60,300) |
|
$ (217,181) |
|
$ (151,257) |
|
$ (383,092) |
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
2,586 |
|
(172) |
|
3,435 |
|
(3,207) |
|
Unrealized gains (loss) on available-for-sale securities |
(83) |
|
— |
|
24 |
|
— |
|
Total other comprehensive (loss) income |
2,503 |
|
(172) |
|
3,459 |
|
(3,207) |
|
Comprehensive loss |
$ (57,797) |
|
$ (217,353) |
|
$ (147,798) |
|
$ (386,299) |
|
|
|
|
(1) |
Includes related party revenue of |
|
Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) |
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|
|
|||
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|
Six Months Ended |
||
|
|
2025 |
|
2024 |
|
Cash flows from operating activities: |
|
|
|
|
Net loss |
$ (151,257) |
|
$ (383,092) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
31,159 |
|
30,199 |
|
Stock-based compensation |
42,678 |
|
77,928 |
|
|
— |
|
47,858 |
|
Restructuring related impairment charges |
— |
|
4,823 |
|
Loss on investments |
3,958 |
|
9,370 |
|
Change in fair value of notes receivable |
5,285 |
|
1 |
|
Change in fair value of warrant liabilities |
— |
|
(4,173) |
|
Change in fair value of contingent consideration |
(4,232) |
|
2,284 |
|
Non-cash lease expense |
14,866 |
|
13,070 |
|
Non-cash in-process research and development |
— |
|
19,795 |
|
Other non-cash activity |
46 |
|
2,096 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
(412) |
|
(1,102) |
|
Prepaid expenses and other current assets |
(2,272) |
|
1,770 |
|
Operating lease right-of-use assets |
3,814 |
|
14,373 |
|
Other non-current assets |
(125) |
|
(833) |
|
Accounts payable, accrued expenses and other current liabilities |
(5,125) |
|
10,864 |
|
Deferred revenue, current and non-current ( |
(23,676) |
|
(17,012) |
|
Operating lease liabilities, current and non-current |
(11,638) |
|
(3,866) |
|
Other non-current liabilities |
5,156 |
|
1,998 |
|
Net cash used in operating activities |
(91,775) |
|
(173,649) |
|
Cash flows from investing activities: |
|
|
|
|
Purchases of marketable debt securities |
(320,132) |
|
— |
|
Maturities of marketable debt securities |
64,958 |
|
— |
|
Purchases of property and equipment |
(7,660) |
|
(33,742) |
|
Business acquisition |
— |
|
(5,400) |
|
Other |
262 |
|
191 |
|
Net cash used in investing activities |
(262,572) |
|
(38,951) |
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from exercise of stock options |
— |
|
84 |
|
Principal payments on finance leases |
(305) |
|
(494) |
|
Contingent consideration payment |
— |
|
(661) |
|
Net cash used in financing activities |
(305) |
|
(1,071) |
|
Effect of foreign exchange rates on cash and cash equivalents |
260 |
|
(173) |
|
Net decrease in cash, cash equivalents and restricted cash |
(354,392) |
|
(213,844) |
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
561,572 |
|
944,073 |
|
Restricted cash, beginning of period |
44,171 |
|
45,511 |
|
Cash, cash equivalents and restricted cash, beginning of period |
605,743 |
|
989,584 |
|
|
|
|
|
|
Cash and cash equivalents, end of period |
203,566 |
|
730,367 |
|
Restricted cash, end of period |
47,785 |
|
45,373 |
|
Cash, cash equivalents and restricted cash, end of period |
$ 251,351 |
|
$ 775,740 |
|
Segment Information (in thousands, unaudited) |
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Three Months Ended |
|
Six Months Ended |
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|
2025 |
2024 |
|
2025 |
|
2024 |
|
Cell Engineering |
|
|
|
|
|
|
|
Revenue |
$ 39,134 |
$ 36,205 |
|
$ 77,364 |
|
$ 64,094 |
|
Costs and operating expenses: |
|
|
|
|
|
|
|
Cost of other revenue |
3,865 |
1,914 |
|
6,986 |
|
1,914 |
|
Research and development |
31,065 |
84,113 |
|
79,735 |
|
166,011 |
|
General and administrative |
14,141 |
33,202 |
|
32,168 |
|
71,446 |
|
Cell Engineering operating loss |
(9,937) |
(83,024) |
|
(41,525) |
|
(175,277) |
|
Biosecurity |
|
|
|
|
|
|
|
Revenue |
10,470 |
20,001 |
|
20,558 |
|
30,056 |
|
Costs and operating expenses: |
|
|
|
|
|
|
|
Cost of Biosecurity revenue |
8,583 |
11,807 |
|
15,806 |
|
21,009 |
|
Research and development |
— |
458 |
|
— |
|
578 |
|
General and administrative |
6,702 |
11,179 |
|
14,751 |
|
23,130 |
|
Biosecurity operating loss |
(4,815) |
(3,443) |
|
(9,999) |
|
(14,661) |
|
Total segment operating loss |
(14,752) |
(86,467) |
|
(51,524) |
|
(189,938) |
|
Reconciling items to reconcile total segment operating loss to loss before income taxes: |
|
|
|
|
|
|
|
Stock-based compensation (1) |
22,526 |
38,226 |
|
43,326 |
|
80,623 |
|
|
— |
47,858 |
|
— |
|
47,858 |
|
Depreciation and amortization |
15,793 |
17,330 |
|
31,159 |
|
30,199 |
|
Restructuring charges (2) |
3,674 |
17,066 |
|
8,947 |
|
17,066 |
|
Carrying cost of excess space (net of sublease income) (3) |
12,413 |
7,383 |
|
24,088 |
|
7,383 |
|
Merger and acquisition related expense (income) (4) |
(3,617) |
4,512 |
|
(4,535) |
|
6,906 |
|
Acquired in-process research and development |
— |
2,978 |
|
— |
|
19,849 |
|
Other (income) expense, net (5) |
(4,958) |
(4,829) |
|
(3,057) |
|
(16,951) |
|
Loss before income taxes |
$ (60,583) |
$ (216,991) |
|
$ (151,452) |
|
$ (382,871) |
|
|
|
|
(1) |
Includes |
|
|
|
|
(2) |
See Note 3, Restructuring, for composition of costs. |
|
|
|
|
(3) |
The carrying cost of excess space includes base rent, common area maintenance charges, and real estate taxes associated with facilities the Company is not occupying, net of any sublease income from these spaces. |
|
|
|
|
(4) |
Represents transaction and integration costs directly related to mergers and acquisitions, including: (i) legal, consulting, and accounting fees associated with acquisitions; (ii) post-acquisition employee retention bonuses; (iii) (gain)/loss from changes in the fair value of contingent consideration liabilities resulting from acquisitions; and (iv) costs associated with the Zymergen Bankruptcy, as well as securities litigation costs. |
|
|
|
|
(5) |
Includes interest income, interest expense, loss on investments, changes in fair value of certain assets and liabilities, and other gains and losses. |
|
Selected Non-GAAP Financial Measures (in thousands, unaudited) |
|||||||
|
|
|||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
(in thousands) |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net loss (1) |
$ (60,300) |
|
$ (217,181) |
|
$ (151,257) |
|
$ (383,092) |
|
Interest income, net |
(6,083) |
|
(10,313) |
|
(12,164) |
|
(22,024) |
|
Income tax (benefit) expense |
(283) |
|
190 |
|
(195) |
|
221 |
|
Depreciation and amortization |
15,793 |
|
17,330 |
|
31,159 |
|
30,199 |
|
EBITDA |
(50,873) |
|
(209,974) |
|
(132,457) |
|
(374,696) |
|
Stock-based compensation (2) |
22,526 |
|
38,226 |
|
43,326 |
|
80,623 |
|
|
— |
|
47,858 |
|
— |
|
47,858 |
|
Restructuring charges (3) |
3,674 |
|
17,066 |
|
8,947 |
|
17,066 |
|
Merger and acquisition related expense (income) (4) |
(3,617) |
|
4,512 |
|
(4,535) |
|
6,906 |
|
Loss on investments |
229 |
|
6,826 |
|
3,922 |
|
9,370 |
|
Change in fair value of warrant liabilities |
— |
|
(3,233) |
|
— |
|
(4,173) |
|
Change in fair value of convertible notes |
— |
|
(480) |
|
5,285 |
|
846 |
|
Adjusted EBITDA |
$ (28,061) |
|
$ (99,199) |
|
$ (75,512) |
|
$ (216,200) |
|
|
|
|
(1) |
All periods include non-cash revenue when earned, including |
|
|
|
|
(2) |
Includes |
|
|
|
|
(3) |
Restructuring charges primarily consist of employee termination costs from the reduction in force commenced in |
|
|
|
|
(4) |
Represents transaction and integration costs directly related to mergers and acquisitions, including: (i) legal, consulting, and accounting fees associated with acquisitions; (ii) post-acquisition employee retention bonuses; (iii) (gain)/loss from changes in the fair value of contingent consideration liabilities resulting from acquisitions; and (iv) costs associated with the Zymergen Bankruptcy, as well as securities litigation costs. Not included in this adjustment are acquired in-process research and development expenses, which totaled zero and |
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