Ginkgo Bioworks Holdings Inc

Good evening. I'm Daniel Marshall, Senior 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 will 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 provide insight into how and why we see autonomous labs like Nebula, our autonomous lab, replacing the lab bench, which is where nearly all of biological science is done today. 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.

Thanks, Daniel. We always start with this. Gingko's mission is to make biology easier to engineer. And I mentioned this at the last earnings call, but in 2026, our focus will be on investing to win the category of autonomous labs. And I'm really excited, even since we just spoke a few months ago, this category has really been growing in attention. New companies in Silicon Valley pursuing this, a lot of interest from the AI frontier labs about the application of AI models in science via autonomous labs, government talking more about this. So I do think we're onto the right track with this focus for the company. The two big ways I'm going to be pursuing that goal in 2026, the first is to take our services in solutions, in data points, in cloud lab, and run them on top of our autonomous lab here in Boston that we call Nebula. That's a chance to prove out the capabilities of our system with real world activities. And then the second big area of activity will be getting early adopters of autonomous labs out in the world to buy our systems like we've done already with Pacific Northwest National Labs that I talked about last time. So excited to pursue both of those and you're going to hear more about it from me in the strategic section. We also, in the last quarter, were able to close on a deal I talked about extensively last time, which is the spinoff of our biosecurity unit into a new company called Perimeter. I want to say congratulations to the team at Biosecurity at Ginkgo in pulling that off. $60 million and a lot of great new investors coming into that focus really firmly in the area of defense tech and building sort of a biosecurity prime. Ginkgo is a shareholder in that company. We're super excited to see it succeed. And I think this is a really nice, as I talked about last time, opportunity both for Ginkgo to keep our focus on the autonomous labs and for the team at Perimeter to grow under their own brand with a new set of defense tech focused investors. Our focus over the last couple of years was very much on getting these numbers where they are today, bringing down our cash burn in the company. We guided towards this, and Steve will touch on that in his section. But again, happy to have a very strong cash position, $373 million with no bank debt as of Q1 2026. And so you'll hear a little bit more from Steve on this. But this sets us up very nicely. We're well capitalized to pursue this area of autonomous labs. We have these base service businesses to build on top of and the lead in developing the technology, and you put all that together, and I think we're by far the best bet in this sector. All right, I'm going to pass it on to Steve to dig into the financials.

Thanks, Jason. Before I walk through our financials, I want to take a moment to frame an important change in how we are presenting our results beginning in Q1 2026. As we announced in February, we entered into a definitive agreement to sell our biosecurity business, which was previously reported as a separate segment. Further, as Jason noted, we closed that transaction on April 3rd. The biosecurity transferred assets met the criteria under U.S. accounting to be classified as held for sale and the financial results reported as discontinued operations as of March 31st, 2026. This is the first quarter in which biosecurity is reflected as discontinued operations within our financial statements. And in close with the accounting rules, we have and will retrospectively recast all prior periods presented to conform to this presentation. That means the revenue operating expenses and cash flows previously attributed to the biosecurity business are removed from each line item of our continuing operations and cash flows as the prior period information is presented. including for Q1 of last year. The former biosecurity results are now reported as a single net line loss from discontinued operations below loss from continuing operations. To be clear, all of the financial commentary I will provide today relates exclusively to continuing operations. We will not be discussing the biosecurity business further in our prepared remarks. On April 7, 2026, for your information, we filed a current report on Form 8K that includes pro forma financial information for fiscal years 2023, 2024, and 2025 on a continuing operations basis. Following the biosecurity divestiture, we now operate as a single segment. So with that, I'll now discuss our Q1 results. Revenue was $19 million in the first quarter of 2026, down 49% compared to the first quarter of 2025. As previously disclosed, revenue in the first quarter of 2025 included $7.5 million in non-cash revenue relating to the mutual termination of the biomedic agreement. Excluding this, revenue in the first quarter of 2026 was down 37% from the prior year period. 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 adjusted EBITDA and GAAP net loss from continuing operations can be found in the appendix. In the first quarter of 2026 R&D expense decreased 38% from $49 million in the first quarter of 2025 to $30 million in the first quarter of 2026. G&A expense decreased 35% from $20 million in the first quarter of 2025 to $13 million in the first quarter of 2026. These decreases were all driven by our restructuring efforts. Net loss from continuing operations was $76 million in the first quarter of 2026, compared to a loss of $83 million in the prior year period. The reduction in loss year over year was due to our restructuring ends. Moving further down the page, you'll note that adjusted EBITDA in the first quarter of 2026 was negative $42 million, which was down from negative $44 million in the first quarter of 2025. Since we are now only operating in a single segment, we only present a single measure of adjusted EBITDA. And it is important to note that adjusted EBITDA includes the carrying cost of excess lease space, which you can see was $16 million in the first quarter of 2026. Previously, this cost would not have been included in the former presentation of segment adjusted EBITDA. 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 first quarter of 2026 was $48 million down from $58 million in the first quarter of 2025, a 17% decrease. As previously reported, in October 2025, we amended and reset the annual commitments with Google Cloud for $14 million. Resetting the commitment reduced our future minimum commitments by more than $100 million compared with the original terms and extended the commitment term from three to six years. We paid this $14 million in Q1 of 2026, which is reflected in our cash burn for the quarter. Excluding the payment to Google Cloud, cash burn reflects a significant decrease in the first quarter of 2026 compared to the first quarter of 2025, which was a direct result of the restructuring. Now, turning to guidance. As we discussed in February, 2026 is about continuing to be cost efficient while investing in our AI robotics and software to bring autonomous labs to our bioscience customers, including the build out of our Frontier autonomous lab in Boston. We have turned the page on our pure focus on restructuring actions to focus this year not only on cost efficiency, but on investing in what we see as our opportunities while continuing to provide our customers the advanced services that they've come to expect. For these reasons, we believe cash burn best reflects our continuing services and tools and further investments in autonomous labs. In terms of outlook for the full year, we are reaffirming our overall cash burn guidance for 2026, totaling $125 to $150 million. This range reflects a firm balance amongst cost efficiency, continuing services and tools, and further investments we are making. In conclusion, we are pleased with our continued improvements in cash burn efficiency and our business pursuits for 2026. And with that, I'll hand it back over to you, Jason.