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Akoya Biosciences, Inc. (AKYA)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $16.6M, down 9.8% year over year; gross margin expanded to 59.3% from 45.7% and operating loss improved to $13.4M from $21.6M YoY .
  • Installed base grew 12% YoY to 1,359 instruments and publications citing Akoya’s technology rose 45% YoY to 1,891, underscoring demand for spatial proteomics content (IO60) despite macro and NIH funding uncertainty .
  • No earnings call or forward guidance due to the pending acquisition by Quanterix; balance sheet shows current portion of long-term debt at $76.5M as of Mar 31, 2025 .
  • Near-term stock narrative drivers: margin discipline, reagent/content traction (IO60, neurobiology roadmap), and merger execution/visibility given withdrawal of guidance .

What Went Well and What Went Wrong

What Went Well

  • Gross margin expanded to 59.3% vs. 45.7% YoY; OpEx fell 22% YoY to $23.3M; operating loss improved 38% YoY to $13.4M, reflecting manufacturing and cost actions .
  • Installed base rose to 1,359 (410 PhenoCyclers, 949 PhenoImagers) and publications reached 1,891, evidence of growing platform adoption and content-led pull-through .
  • CEO on strategic positioning: “As we look ahead to combining forces with Quanterix, we are confident in the value-creating opportunities this integration brings—uniting two leaders in proteomics to accelerate the future of precision medicine” .

What Went Wrong

  • Revenue declined 9.8% YoY to $16.6M; product revenue was roughly flat YoY but services declined materially (total service and other revenue $4.6M vs. $6.2M) .
  • Current portion of long-term debt reclassified to $76.5M with no long-term debt line, reducing flexibility ahead of merger; cash and marketable securities were $27.5M at quarter-end .
  • No forward guidance and no earnings call (pending Quanterix acquisition), limiting visibility; macro and NIH funding uncertainty persisted as headwinds .

Financial Results

MetricQ2 2024Q3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$23.164 $18.814 $21.344 $16.639
Gross Margin %57.8% 62.3% 67% 59.3%
Operating Expenses ($USD Millions)$24.470 $20.073 $20.101 $23.283
Operating Loss ($USD Millions)$(11.084) $(8.349) $(5.712) $(13.412)
Net Loss ($USD Millions)$(13.149) $(10.533) $(8.199) $(15.652)
EPS ($USD)$(0.27) $(0.21) $(0.17) $(0.32)

Segment breakdown:

MetricQ2 2024Q3 2024Q4 2024Q1 2025
Product Revenue ($USD Millions)$15.926 $12.298 $12.663 $12.032
Service & Other Revenue ($USD Millions)$7.238 $6.516 $8.681 $4.607

KPIs:

KPIQ2 2024Q3 2024Q4 2024Q1 2025
Installed Base (Units)1,264 1,299 1,330 1,359
Publications (Count)1,450 1,578 1,733 1,891
Cash + Marketable Securities ($USD Millions)$48.7 $39.3 $35.0 $27.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2024 (as of Q2 2024)$96–$104M $80–$85M (as of Q3 2024) Lowered
Operating Cash Flow BreakevenFY 2024 exit“Commitment to achieving operating cash flow breakeven by year end” (Q2 PR) “Likely won’t hit cash flow breakeven exiting 2024; aiming for low single-digit adjusted EBITDA and cash breakeven into 2025” (Q3 call) Pushed out
Guidance issuanceQ4 2024Provided guidance earlier in 2024 No guidance and no earnings call due to pending Quanterix acquisition Withdrawn
Guidance issuanceQ1 2025—No guidance and no earnings call due to pending Quanterix acquisition Withdrawn

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Instruments demand & funding environmentExtended sales cycles (+35%), volatile conversion; NA academic weakness; macro-driven constraints Revenue decline driven by instruments; macro challenges persist CEO cites macro and NIH funding uncertainty; no call Persistent headwinds
Reagent/content strategy (IO60)Launch of IO60, mouse panel, 100-plex barcodes; pivot to application-driven selling Roadmap and content menu expansion highlighted IO60 driving atlas collaboration; neurobiology panels roadmap Scaling content-led pull-through
Companion diagnostics (CDx)Acrivon (ACR-368 with HT OncoSignature); NeraCare Immunoprint partnership NeraCare exclusive global license; clinical momentum Argonaut selected as IVD manufacturing partner Advancing toward commercialization
Gross margin trajectory62.3% GM; CFO targets low-60s exit and further improvement 67% GM (mix, in-house reagents) 59.3% GM; still up YoY Volatile, mix-driven but structurally improved YoY
Strategic alternatives / M&AEvaluating strategic alternatives; nothing off the table Pending Quanterix acquisition announced Pending Quanterix; no guidance/call Converging to merger completion

Management Commentary

  • CEO (Q1 PR): “Our technology continues to gain momentum globally… As we look ahead to combining forces with Quanterix, we are confident in the value-creating opportunities this integration brings—uniting two leaders in proteomics” .
  • Enable Medicine collaboration: “The Enable Atlas is a catalytic resource for our customers… at a scale never before possible” (Akoya CBO) .
  • CFO (Q3 call) on margin and breakeven path: “We thought we would be in the low 60s exiting the year and then see a couple hundred bps improvement year-on-year… likely won’t hit cash flow breakeven as we exit this year… start to achieve that cash breakeven going into next year” .

Q&A Highlights

  • Cash burn trajectory and breakeven: CFO pegged Q3 cash from ops burn at ~$8–$9M, guided to “meaningfully less in Q4,” and shifted cash flow breakeven to 2025 while targeting low single-digit adjusted EBITDA exiting 2024 .
  • Debt profile: Interest-only period pushed to March 2026; ongoing engagement with lender on covenants .
  • Demand dynamics: Lengthened sales cycles (+35%) and volatile conversion rates, with NA academia most impacted; macro the overwhelming driver vs. competition .
  • Reagent pull-through and services: Temporary volatility in reagent pull-through due to stocking patterns; services recognized over instrument warranty periods, creating lumpiness and dependency on instrument sales .
  • Strategic alternatives: “Nothing is off the table”; intent to assure stakeholders of a path to remove concerns amid market environment .

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 2025 EPS and revenue was unavailable via the tool at this time; as a result, we cannot definitively label a beat/miss vs. estimates for the quarter [GetEstimates tool error].
  • Investors will likely benchmark performance vs. prior year and prior quarter given guidance withdrawal; margin sustainability and content-led reagent growth are the focal points for model updates .

Key Takeaways for Investors

  • The quarter showcased disciplined execution: gross margin up to 59.3% and OpEx down 22% YoY despite revenue down 9.8% YoY, highlighting structural improvements from in-house reagent manufacturing and cost actions .
  • Content-led strategy gaining traction: IO60 and neurobiology roadmaps, plus AI-ready Enable Atlas collaboration, should support reagent pull-through and utilization across growing installed base .
  • Balance sheet watch items: $27.5M in cash and marketable securities and $76.5M current portion of long-term debt as of Mar 31, 2025—merger completion and lender engagement are key to near-term flexibility .
  • Visibility is limited near term: Q4 and Q1 had no conference call or forward guidance due to the Quanterix transaction; investors should track merger milestones and integration plans .
  • Demand remains macro-sensitive: elongated sales cycles and NA academic funding pressure persisted in 2024 commentary; Q1 PR cites NIH uncertainty—expect continued instrument volatility with reagents/services offset .
  • Reagent/services mix supports margins: CFO reiterated margin trajectory and adjusted EBITDA exit target; focus on content and clinical services (CDx partnerships, IVD manufacturing partner) to diversify revenue streams .
  • Strategic path: With “nothing off the table” earlier and a pending Quanterix acquisition, the narrative centers on merger execution and the combined proteomics portfolio’s ability to accelerate precision medicine adoption .