Ginkgo Bioworks Holdings Inc

Good evening. I'm Daniel Marshall, Senior Manager of Communications and Ownership. I'm joined by Jason Kelly, our co-founder and CEO, and our new CFO, Steve Cohen. Thanks as always for joining us. We're looking forward to updating you on our progress. As a reminder, during the presentation today, we'll be making forward-looking statements which involve risks and uncertainties. Please refer to our filings with the SEC to learn more about these risks and uncertainties, including our most recent 10K. Today, in addition to updating you on the quarter results, we're going to provide updates on our path towards adjusted EBITDA breakeven and dive deeper into the new deals and launches in Ginkgo's tools businesses, which continue to establish themselves as critical tools in AI-powered bioengineering. As usual, we'll end with a Q&A session and I'll take questions from journalists, investors, and the public. You can submit those questions to us in advance via X, hashtag, GinkgoResults, or email investors at ginkgobioworks.com. All right, over to you, Jason.

All right. Thanks, Daniel. We always start with our mission here at Ginkgo, which is to make biology easier to engineer. Our objectives are very similar to what you've heard from me over the last few earnings calls. We're trying to reach adjusted EBITDA by the end of 2026 while maintaining a cash margin of safety, and I'm going to update on that in just a sec. We're cutting costs while serving our current customers, and then very importantly, we're expanding from an R&D solutions business into the life science tool space. And in the strategic section, you're going to hear a lot about that from me today. Before I get to that, I do want to touch on that, maintaining a cash margin of safety and the cost cutting. So you can see our numbers here for the quarter. Really happy about this. We've been aiming, and I told you this about a year ago, to get to a $250 million annual run rate cost savings by Q3 of this year of 2025. I'm happy to say we hit that target a quarter early. This was a tremendous amount of very painful work by the team at Ginkgo, and so I want to say thank you to folks and sort of congratulate them on that progress and getting there early. That is very strategically important for us because the earlier we do it, as you can see, we have $474 million in cash and cash equivalents with no bank debt, and that's where that margin of safety comes from. Having that large cash position while also getting burned under control means that we don't get pushed into needing to raise in a situation we don't want to or from someone we don't want to. We can be strategic about engaging with capital markets, which is really important, and then it also means we can start to take our focus from just purely cost cutting to, which we are still going to be cutting costs, but from purely cost cutting to also just really how we want to grow the business into 2026. And so you're going to hear a bunch from me today on that in the strategic section. Before that, I do want to hand it to Steve to go through the numbers, and I want to say congratulations to Steve, our new CFO. We mentioned this when we announced it, but Steve's been with the company over the last two years. He worked very closely with Mark throughout that time, particularly over the last several months to really shadow and be a part of everything that Mark was doing, and so it made that transition super smooth. And so really delighted. We're very lucky to have Steve in the CFO seat, and I'll pass it to him to go through the numbers.

Thanks, Jason. I'll start with the cell engineering business. Cell engineering revenue was $39 million in the second quarter of 2025, up 8% compared to the second quarter of 2024. In the second quarter of 2025, we supported a total of 120 revenue generating programs. This represents a 10% increase year over year. Turning to biosecurity, our biosecurity business generated $10 million of revenue in the second quarter of 2025 at a segment gross margin of 18%. As a reminder, segment gross margin excludes stock-based compensation. Turning to the next slide, it is important to note that our net loss includes a number of non-cash and other non-recurring items as detailed more fully in our financial statements. Because of these non-cash and other non-recurring items, we believe adjusted EBITDA is more indicative of our profitability. A full reconciliation between segment operating loss, adjusted EBITDA, and gap net loss can be found in the appendix. Now that we've completed a year of restructuring, you can see the very substantial cost reductions and improvements in profitability compared to the first quarter of 2024. In the second quarter of 2025, cell engineering R&D expenses decreased 63% from $84 million in the second quarter of 2024 to $31 million in the second quarter of 2025. Cell engineering and G&A expenses decreased 57% from $33 million in the second quarter of 2024 to $14 million in the second quarter of 2025. These decreases were all driven by our restructuring efforts. The significant improvement in cell engineering segment operating loss in the second quarter of 2025 compared to the same prior year period was due to the previously discussed drivers of improved revenue and reduced operating expenses. Biosecurity segment operating loss was impacted by the timing of programs in the second quarter. Moving further down the page, you'll note the total adjusted EBITDA in the second quarter of 2025 was negative $28 million, which was improved from negative $99 million in the second quarter of 2024, a 72% improvement. We show adjusted EBITDA at the segment level to show the relative profitability of each. The principal difference between segment operating loss and total adjusted EBITDA in the second quarter relates to the carrying cost of excess lease space, which you can see was $12 million in the second quarter of this year. This cost represents the base rent and other charges relating to lease space, which we are not occupying, net of sublease income. This is a cash operating cost that is not related to driving revenue right now and can be potentially mitigated through subleasing. And finally, cash burn in the second quarter of 2025 was $38 million, down from $110 million in the second quarter of 2024. This significant decrease in cash burn was a direct result of the restructure. Now turning to guidance. In the terms of the revenue guidance for 2025, totaling $167 to $187 million would sell engineering revenue to be $117 to $137 million and biosecurity revenue expected to be at least $40 million. In conclusion, we're pleased with the substantial improvements in cash burn and cost reductions when looking back over the past year, where we achieved our targeted $250 million run rate cost takeout three months earlier than planned. In the third quarter, we will continue to execute against our core objectives while navigating continued uncertainty in the macro environment. And with that, I'll hand it back to you, Jason.