Ginkgo Bioworks Holdings Inc

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's results, we're going to show how Ginkgo is now two businesses built on one autonomous lab platform at a moment when the U.S. government is starting to treat autonomous labs as national infrastructure. We'll share how our autonomous labs business is growing, including our first autonomous lab sale to a pharma company, Novo, alongside new government wins with ARPA-H and the NSF. will also share how our cloud lab business is growing with new pharma logos, including 22 customers this quarter, and with AI data generation for Frontier Labs. 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. As I always say, our mission here at Ginkgo is to make biology easier to engineer. Over the last few years, we've been going through a transformation with this focus on autonomous labs, and that was really our goal in 2026. I will say I think that that succeeded very well, and this quarter is really good evidence of that. We've been focusing our efforts on moving more and more of our internal lab work onto autonomous labs. That continues and improving the product, but Real breakthrough in the last quarter in terms of external customers adopting our systems. And so we will be all happy to talk about some of the new customers we have for autonomous labs, both in universities and the biopharma sector. And we've been expanding the services that we're offering on top of our big system in Boston here in Nebula. So really happy about this. I think we made the right choice in betting on this technology. So you can hear more from me on that in the strategic section. Also, our financials have been going in the right direction. We made a big push to cut back on spending while still making major investments in research and development around autonomous labs, AI, and robotics in the laboratory, and that has also paid off. You can see our year-over-year change here, pretty substantial improvements in net loss from continuing operations as well as our total adjusted EBITDA. This is what we were aiming to achieve, and really congrats to the team on pulling this off. It's hard to do these two things at once, cost-cutting and being really the technology leader in an emerging tech area, especially one next to AI. All right. Last thing I'll mention, we have still quite a nice cash cushion. This is, again, thanks to those cost-cutting efforts, $285 million in cash and cash equivalents. with no bank debt, and another $86 million on top of that that we keep as restricted cash for some of our government projects and leases. So overall, I like our position from a cash position. I like where we are with cash spending. And as you can hear from me in the strategic section, I think we're doing a nice job externally selling and improving really a new category of product in Autonomous Labs. So back to me in a moment, but I'm going to hand it to Steve to a little more depth on the financials.

Thanks, Jason. Before I walk through our financials, I want to remind everyone that our buyer security results are classified as discontinued operations within our financial statements, where we have and will retrospectively recast all prior periods presented to conform to this presentation. All of the financial information I will cover today relates exclusively to continuing operations, where we operate as a single sale. With that, I will now discuss our Q3 results. As Jason mentioned, revenue was $28 million in the third quarter of 2026, down 6% compared to the third quarter of 2025. For the nine months of 2026, revenue was $67 million, down 37% compared to the same period last year. As previously disclosed, revenue in the first nine months of 2025 included $7.5 million of non-cash revenue relating to the mutual termination of the biomedic agreement. Excluding this, revenue for the first nine months of 2026 was down approximately 32% from the prior year period. As noted in our release, revenue in the third quarter was higher than last quarter, and this was primarily from a cumulative catch-up on one of our larger long-term contracts, which was modified to realign the work plan, resulting in us recognizing some revenue soon. 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 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 addition, in discussing our R&D and G&A expenses, we exclude stock-based compensation and other separately captioned items. In the third quarter of 2026, R&D expense decreased 48% from $51 million in the third quarter of 2025 to $27 million in the third quarter of 2026. G&A expense decreased 32%. from $14 million in the third quarter of 2025 to $9 million in the third quarter of 2026. These decreases were primarily driven by our restructuring efforts, which was substantially completed by the end of 2025. Moving further down the page, net loss from continuing operations was $41 million in the third quarter of 2026, compared to a loss of $73 million in the prior year period, a 44% improvement. You will note that adjusted EBITDA in the third quarter of 2026 was negative $22 million compared to negative $53 million in the third quarter of 2025, a 58% improvement. It is important to note that adjusted EBITDA includes the carrying cost of excess leased space, which you can see was approximately $14 million in both periods. This cash operating cost represents the base rent and other charges relating to unused leased space, net of sublease income. That is not driving revenue right now and can potentially be mitigated through sublease. And finally, cash burned in the third quarter of 2026 was $27 million compared to $28 million in the third quarter of 2025. For the nine months of 2026, cash burn was $120 million, down $124 million in the same period last year, a 4% decrease. As previously reported, we paid Google Cloud $14 million earlier this year as part of the favorable restructuring of that contract late last year. Excluding this payment, tax credit reflects a significant decrease in the first nine months of 2026 compared to the first nine months of 2025, which will directly result from the restructuring, possibly offset by the investments we are making. During the third quarter, we raised an additional net $7 million through our at-the-market equity program. Consistent with our methodology, these related proceeds are excluded from cash burn for all periods presented. As previously reported, cash burn excludes the restrictions we made last quarter to secure a surety bond on our PNNL contract. We ended the quarter with $285 million in cash, cash equivalents and marketable securities and no bank debt, plus $86 million of restricted cash, cash equivalents and marketable securities for customers and operating activities. Now, turning to guidance. As we discussed earlier this year, 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-up of our frontier autonomous lab in Boston. For these reasons, we believe cash burn best reflects our continuing services and tools and further investments in autonomous labs. In terms of the 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 the continued improvements in cash earned efficiency in our business pursuits for 2026. And with that, I'll hand it back over to you, Jason.