Summary of Rapid Micro Biosystems Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $8.1 million, an 11% increase year-over-year, exceeding previous guidance.

Product Revenue: Increased 10% to $5.3 million, driven by over 20% growth in consumables.

Service Revenue: Rose 13% to $2.8 million, supported by higher validation activity.

Recurring Revenue: Increased 14% to $5 million, reflecting a growing installed base and system utilization.

Gross Margin: Achieved a record 15%, with expectations for mid-to-high 20% in Q4.

Net Loss: $12.9 million, slightly higher than the $11.9 million loss in Q2 2025.

Adjusted EBITDA Loss: $10.3 million, compared to a loss of $10.1 million in the prior year.

2Strategic Updates and Business Highlights

System Placements: 4 Growth Direct Systems placed in Q2, with a total of 200 systems installed globally.

Validation Activity: 9 systems validated in the quarter, with an increased guidance for at least 27 validations for the year.

Customer Engagement: Successful North America Growth Direct Day hosted by Amgen, enhancing customer interaction and adoption.

Collaboration with MilliporeSigma: Positive progress noted, with expectations for increased contributions in the second half of 2026.

Market Trends: Strong interest in automation and integration among customers, particularly in biopharma and CDMO sectors.

3Forward Guidance and Outlook

Full Year 2026 Revenue Guidance: Reaffirmed at $37 million to $41 million, with expectations for 30 to 38 system placements.

Q3 Revenue Expectation: At least $9.5 million, including at least 7 system placements.

Gross Margin Expectations: Anticipated to be at least 20% in Q3, with further improvement in Q4.

Long-Term Goals: Targeting gross margins of 50% or more by the end of 2028, supported by ongoing cost reduction and operational efficiencies.

4Bad News, Challenges, or Points of Concern

Net Loss: Increased net loss compared to the previous year, indicating ongoing financial challenges.

Operational Expenses: Total operating expenses rose to $13.5 million, primarily due to nonrecurring corporate expenses.

Dependency on MilliporeSigma: While contributions are expected to increase, they may not meet full obligations in 2026, which could impact revenue.

Market Risks: Potential headwinds from macroeconomic conditions and the timing of customer orders and shipments.

5Notable Q&A Insights

Customer Mix: Majority of system placements are from existing customers, but there is a growing number of new customers, particularly in the CDMO sector.

Consumables Growth: Expected to be relatively flat from Q2 to Q3, with a potential increase in Q4.

Gross Margin Trajectory: While margins are expected to improve, achieving the targeted 50% by 2028 will require consistent quarterly progress.

U.S. Reshoring Dynamics: Conversations indicate a potential benefit from reshoring starting in 2027, but timing remains uncertain.

CAR-T Market: Strong demand noted for the Growth Direct System among CAR-T manufacturers, contributing to consumable revenue growth. Overall, Rapid Micro Biosystems demonstrated solid revenue growth and strategic progress in Q2 2026, although challenges remain in terms of net losses and operational expenses. The company is optimistic about future growth driven by customer engagement and industry trends.