DNA — Ginkgo Bioworks Holdings, Inc.

Summary of Ginkgo Bioworks Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Cell Engineering Revenue: $29 million, a 61% decline year-over-year, primarily due to a previous $45 million noncash revenue from a customer agreement termination in Q3 2024. Excluding this, revenue decreased by 11%.
• Biosecurity Revenue: $9 million with a segment gross margin of 19%.
• Adjusted EBITDA: Negative $56 million, worsening from negative $20 million in Q3 2024, influenced by a $21 million shortfall obligation related to a Google Cloud contract.
• Cash Position: $462 million in cash and cash equivalents, with no bank debt, reflecting a significant reduction in cash burn to $28 million, down 75% from $114 million in Q3 2024.

2. Strategic Updates and Business Highlights

• Automation and AI Integration: Ginkgo is focusing on delivering robotics and software for autonomous labs, expanding its tools business, and enhancing its frontier autonomous lab in Boston.
• Research Solutions: Continued emphasis on partnerships, with notable contracts including a $22 million award from BARDA for monoclonal antibody manufacturing and an extension of a partnership with Bayer for agricultural applications.
• AI Impact: Ginkgo is positioning itself to leverage AI in biotechnology, particularly through its reconfigurable automation carts (RACs) and data point services aimed at training AI models on biological data.

3. Forward Guidance and Outlook

• 2025 Revenue Guidance: Reaffirmed total revenue guidance of $167 million to $187 million, with Cell Engineering expected to contribute $117 million to $137 million and Biosecurity at least $40 million.
• Strategic Focus for 2026: Plans to shift focus from cost-cutting to growth investments, particularly in AI and automation technologies.

4. Bad News, Challenges, or Points of Concern

• Declining Revenue: Significant drop in Cell Engineering revenue and the overall decline in revenue-generating programs, attributed to ongoing restructuring efforts.
• Increased Operating Losses: The operating loss in the Cell Engineering segment rose to $37 million, exacerbated by the Google Cloud shortfall and the absence of prior noncash revenue.
• Market Competition: Concerns about the competitive landscape, particularly from China, where biotech capabilities are growing rapidly, necessitating a shift towards automation and robotics to maintain U.S. competitiveness.

5. Notable Q&A Insights

• Government Exposure: The shutdown has not significantly impacted Ginkgo, which has maintained a strong relationship with government contracts, including cloud security and BARDA awards.
• RAC System Rollout: Jason Kelly emphasized the importance of transitioning from application-specific automation to general-purpose autonomous labs, with plans to scale manufacturing and expand customer adoption.
• AI and Robotics in R&D: The integration of AI with robotics could revolutionize R&D by allowing researchers to pursue multiple hypotheses simultaneously, significantly reducing costs associated with human labor and laboratory space.

Overall, Ginkgo Bioworks is navigating a challenging financial landscape while strategically positioning itself for future growth through automation and AI integration in biotechnology.