RPID — Rapid Micro Biosystems, Inc.

Summary of Rapid Micro Biosystems Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: $8 million, up 11% year-over-year from $7.2 million.
• Product Revenue: Increased 36% to $5.6 million, driven by a record quarter for consumables, which grew over 30%.
• Service Revenue: $2.4 million, down from $3.1 million in Q1 2025, attributed to lower validation activity (5 validations completed vs. 9 in the prior year).
• Recurring Revenue: Increased 28% to $5.1 million, representing 63% of total revenue.
• Gross Margin: 5%, an 8 percentage point improvement from Q4 2025; product margin improved from -23% to -8%.
• Net Loss: $14.3 million, compared to a net loss of $11.3 million in Q1 2025; net loss per share was $0.31.
• Cash Position: Ended Q1 with $23 million, having used $15 million in cash during the quarter.

2. Strategic Updates and Business Highlights

• System Placements: 6 Growth Direct systems placed in Q1, totaling 196 systems globally, with 160 fully validated.
• Key Customer Engagement: Continued success with larger customers, notably Samsung Biologics.
• Asia Pacific Expansion: Strong engagement in the region with system placements in Singapore, Australia, and the first system in China.
• Collaboration with MilliporeSigma: Expanded agreement for Rapid Micro to provide validation and maintenance services for Growth Direct systems sold by MilliporeSigma, enhancing market reach in pharmaceuticals and adjacent markets.
• Customer Demand: Strong interest in automation and enterprise-wide standardization of microbial quality control.

3. Forward Guidance and Outlook

• Full Year 2026 Revenue Guidance: Reaffirmed at $37 million to $41 million, with expectations of 30 to 38 system placements.
• Q2 Revenue Expectation: At least $7.7 million, anticipating at least 4 system placements.
• Gross Margin Outlook: Expected to improve to mid- to high teens in Q2, with a target of approximately 20% for the full year and a mid-20% range by Q4.
• Operating Expenses: Projected between $48 million and $52 million for the year.

4. Bad News, Challenges, or Points of Concern

• Increased Net Loss: The net loss widened compared to the previous year, primarily due to nonrecurring G&A costs and higher interest expenses.
• Service Revenue Variability: Service revenue is subject to variability based on validation activity, which can impact quarterly performance.
• Cash Usage: High cash usage in Q1 due to seasonal patterns and nonrecurring expenses, though expected to decline in subsequent quarters.
• Market Conditions: Ongoing monitoring of macroeconomic conditions and competitive pressures, particularly in the biopharma sector.

5. Notable Q&A Insights

• MilliporeSigma Collaboration: The partnership is expected to enhance service revenue as Rapid Micro will handle all services for Growth Direct systems sold through MilliporeSigma.
• Consumables Margin Improvement: Anticipated improvements in consumable margins due to vendor pricing reductions and increased manufacturing efficiency.
• Sales Funnel Insights: Strong growth in the sales funnel for MilliporeSigma, with a focus on pharmaceuticals and potential expansion into personal care and medical devices.
• Customer Sentiment: Positive customer feedback on the Growth Direct system indicates a trend towards strategic purchasing decisions and enterprise-wide automation discussions.

Overall, Rapid Micro Biosystems is experiencing growth in revenue and system placements, but faces challenges with net losses and service revenue variability. The collaboration with MilliporeSigma presents significant opportunities for future growth and margin improvement.