Ginkgo Bioworks Holdings Inc

manager of communications and ownership at Ginkgo. I'm joined by Jason Kelly, our co-founder and CEO, and Steve Cohen, our CFO. 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 10-K. Today, in addition to updating you on the quarter results, we're going to be providing insight into how we believe AI models will impact biotechnology, how our tools are positioned to support those impacts, and how those tools are winning us new deals with customers. As usual, we'll end with a Q&A session, and I'll take questions from analysts, 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. Gingko's mission is to make biology easier to engineer. We always start with that. I want to highlight the three big objectives for us going into 2026. And I'm going to give you a little more detail on these today. The first is to deliver the robotics and software that bring autonomous labs on-prem, in other words, at our customer sites so that they can run them themselves through our tools business. And we really grew into that sort of tools business model last year. But this Robotics and automation and AI controlling it, I think is having a big moment right now. And I think we've got the right tool stack to bring that to customers. Second, we want to expand sort of our frontier autonomous lab here in Boston. We have the largest rack install in the world. I want to keep it that way. We'll be continuing to expand. That even as our customers build larger systems as well. And we want to use that to be able to show just the art of the possible to customers. What you can do when you have ultimately hundreds of pieces of equipment all connected in a single robotic setup that can be controlled by AI. And so I'll show a few photos and what we're doing there coming up. And then finally, our two big services are CRO services, solutions and data points. We want to offer best in class services, best on the market services to customers there by leveraging that in-house robotic infrastructure. And that helps us kind of, again, demonstrate what's possible with those robotics and also offer great services to customers. So you're going to get to hear about all three of those things later from me. What you're not going to hear as much about in 26, but I'm very proud of us pulling off in 25, is this chart. Dramatic reduction in our quarterly cash burn over the last year. Doing all that while still maintaining a strong margin of safety in our cash position. So after Q3, we have $462 million. in cash and cash equivalents and no bank debt. So I think this is really, again, particularly in what's been a tough biotech market over the last few years, puts us in a very, very strong spot as a growing tools company. And so again, very proud of the team for doing that. You're gonna hear less about cost takeouts in 26 and a lot more about our investments for growth and what we're doing for customers as we expand in AI and automation. All right, with that, I'm gonna pass it to Steve, but looking forward to giving you more detail in a moment.

Thanks, Jason. I'll start with the cell engineering business. Cell engineering revenue was $29 million in the third quarter of 2025, down 61% compared to the third quarter of 2024. As previously disclosed, cell engineering revenue in the third quarter of 2024 included $45 million of non-cash revenue from a release of deferred revenue relating to the mutual termination of a customer agreement with Motif Foodworks. of our platform ventures excluding this revenue in the third quarter of 2025 was down 11 from the prior year period in the third quarter of 2025 we supported a total of 102 revenue generating cell engineering programs this represents a decrease of five percent in revenue generating programs year over year This decrease can be primarily attributed to the ongoing program rationalization as part of our restructuring activities. Turning to biosecurity. Our biosecurity business generated $9 million of revenue in the third quarter of 2025 at a segment gross margin of 19%. 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 a more indicative measure of our profitability. A full reconciliation between segment operating loss, adjusted EBITDA, and gap net loss can be found in the appendix. In the third quarter of 2025, cell engineering R&D expense decreased 8% from $55 million in the third quarter of 2024 to $51 million in the third quarter of 2025. The 2025 period R&D expense included a $21 million shortfall obligation related to our multi-year strategic cloud and AI partnership with Google Cloud. In October 2025, we amended and reset the annual commitments in future years and settled the shortfall obligation for $14 million. Cell engineering G&A expense decreased 47% from $23 million in the third quarter of 2024 to $12 million in the third quarter of 2025. These decreases were all driven by our restructuring efforts. Cell engineering segment operating loss was $37 million in the third quarter of 2025 compared to a loss of $5 million in the comparable prior year period. The increased loss year over year was due to two factors. First, as previously mentioned, the third quarter 2025 expense included a $21 million shortfall related to our Google Cloud contract that was subsequently settled. Second, as previously mentioned, The third quarter of 2024 included $45 million of non-cash revenue from the motif contract termination. Biosecurity segment operating loss improved 21% in the third quarter of 2025 compared to the prior year comparable period. Moving further down the page, you'll note that total adjusted EBITDA in the third quarter of 2025 was negative $56 million, which was down from negative $20 million in the third quarter of 2024. Again, this year-over-year decline can be attributed to the previously mentioned Google Cloud shortfall expense recorded in the third quarter of 2025, as well as the motif-related non-cash revenue in the comparable prior year period. So turning to the next slide, we show adjusted EBITDA at the segment level to show the relative profitability of our segments. The principal differences between segment operating loss and total adjusted EBITDA related to the carrying cost of excess lease space, which you can see was $14 million in the third quarter of 2025. This column represents the base rent and other charges related 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 potentially be mitigated through subleasing. And finally, cash burn in the third quarter of 2025 was $28 million, down from $114 million in the third quarter of 2024, a 75% decrease. Cash burn does not include the proceeds from ATM sales during the quarter. The significant decrease in cash burn was a direct result of the restructure. Now, turning to guidance. In terms of outlook for the full year, we are reaffirming our overall revenue guidance for 2025, totaling $167 to $187 million, with cell 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 continued improvements in cash burn and cost reduction. In the fourth 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 over to you, Jason.