Executive Summary

Q3 showed triple-digit top-line growth: total net revenues rose 145.5% year-over-year to $9.3M, driven by advanced biomaterial product sales; nine-month revenues reached $36.1M (+238.6% YoY) .
Management raised full-year 2024 expected net sales to $54–$60M (from $50–$56M), with $49–$54.5M from advanced biomaterials and $5.0–$5.5M from biobanking; October expected net sales were a record $8.3–$8.9M .
Profitability remains challenged: Q3 operating loss was $11.5M and net loss was $16.1M (EPS $(0.73)), though far improved vs the prior year quarter that included large impairments .
Risk balance: Liquidity/going-concern and related-party debt remain material headwinds, partly offset by sales momentum (including Rebound) and the resolution of Nasdaq filing compliance in November .

What Went Well and What Went Wrong

What Went Well

Rapid revenue growth and commercial traction: Q3 total net revenues rose 145.5% YoY to $9.3M; YTD revenue rose 238.6% to $36.1M, with product sales reaching $26.2M YTD (+621.1% YoY) .
Guidance raised on strong Q2/Q3 and October momentum: FY24 expected net sales increased to $54–$60M (previous $50–$56M), including $49–$54.5M advanced biomaterials and $5.0–$5.5M biobanking; October expected net sales $8.3–$8.9M, a monthly record .
Management confidence and portfolio expansion: CEO highlighted strong Rebound sales and multi-quarter revenue outlook; H1 2024 biomaterial sales exceeded full-year 2023, reinforcing growth trajectory .

What Went Wrong

Continued losses despite growth: Q3 operating loss $(11.5)M and net loss $(16.1)M; EPS $(0.73), underscoring profit pressure amid SG&A and other costs .
Liquidity and going concern: Management disclosed substantial doubt about the company’s ability to continue as a going concern absent additional capital, citing ~$46.1M of debt due within a year at issuance date and potential lender remedies .
Nasdaq compliance overhang (resolved): The company received deficiency and delisting notices related to delayed 10-Q filings in August/October; although ultimately cured in November, the episode highlights reporting-resource and liquidity constraints .

Financial Results

Income Statement Summary – Q3 Year-over-Year

Metric	Q3 2023	Q3 2024
Total Net Revenues ($M)	$3.79	$9.30
Loss from Operations ($M)	$(99.26)	$(11.53)
Net Loss ($M)	$(93.88)	$(16.10)
Diluted EPS ($)	$(4.98)	$(0.73)
YoY Revenue Growth (%)	—	145.5%

Notes:

Prior-year Q3 included large non-cash impairments (e.g., $82.7M goodwill), inflating YoY operating loss comps .

Revenue Components – Q3 Year-over-Year

Revenue Component	Q3 2023 ($M)	Q3 2024 ($M)
Product Sales, net	$1.68	$3.39
Services	$1.43	$1.29
License, Royalty & Other	$0.68	$4.61
Total Net Revenues	$3.79	$9.30

Profitability Ratios (reported/derived)

Metric	Q3 2023	Q3 2024
Operating Margin (%)	(Loss from operations / Revenue) = (−99.26/3.79) ≈ −2619%	(−11.53/9.30) ≈ −124%
Net Income Margin (%)	(Net loss / Revenue) = (−93.88/3.79) ≈ −2476%	(−16.10/9.30) ≈ −173%
Diluted EPS ($)	$(4.98)	$(0.73)

Year-to-Date Trend (Nine Months Ended Sep 30)

Metric	9M 2023	9M 2024
Total Net Revenues ($M)	$10.66	$36.09
Product Sales, net ($M)	$3.63	$26.20
Services ($M)	$4.06	$3.86
License, Royalty & Other ($M)	$2.96	$6.03
Net Loss ($M)	$(205.84)	$(44.60)

Operating KPIs and Run-Rate Indicators (Management Disclosures)

KPI	Value
October 2024 expected net sales (record month)	$8.3–$8.9M
10 months ended Oct 31, 2024 expected net sales	$44.4M (incl. ~$9M Rebound)
FY24 expected net sales growth in advanced biomaterials	+180% to +212% YoY

Estimate comparisons (S&P Global) for Q3 2024 were unavailable due to data access limits at the time of analysis. Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Net Sales	FY 2024	$50M–$56M	$54M–$60M	Raised
Advanced Biomaterial Net Sales	FY 2024	N/A	$49M–$54.5M	New detail
Biobanking Net Sales	FY 2024	N/A	$5.0M–$5.5M	New detail

Earnings Call Themes & Trends

No Q3 2024 earnings call transcript was available in filings or company archives at the time of review; themes below reflect management disclosures in press releases and SEC filings.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2024)	Trend
Commercial momentum in advanced biomaterials	H1 2024 biomaterial product sales >$24M (exceeding full-year 2023)	Q3 revenue +145.5% YoY; nine-month product sales $26.2M (+621% YoY)	Strong acceleration
New product contribution (Rebound)	Acquisition announced Oct 16; expected to contribute Q4 and support FY24 targets	~+$9M expected net sales included in 10-month tally	Positive, expanding mix
Reporting/Nasdaq compliance	Q1/Q2 10-Q delays and Nasdaq deficiency notices in Aug/Oct	Compliance cured; hearing cancelled Nov 18	Improving
Liquidity/going concern	Persistent capital needs and reliance on external financing	Substantial doubt remains; significant near-term debt obligations	Ongoing risk
Partnerships/Regional strategy	Evaluating Asia Pacific with Genting	Continued focus on APAC opportunities	Steady

Management Commentary

“We had very strong second and third quarter performances, and based on such performance we have increased the full year 2024 expected net sales guidance… Sales are strong for our new Rebound product, which we believe will strengthen our revenue outlook for the next several quarters.” — Dr. Robert J. Hariri, Founder, Chairman & CEO .
“Our reported revenue through September 30, 2024, confirms the confidence we have expressed throughout this year… In parallel with growing revenue, we continue to exercise discipline on the expense side and to evaluate opportunities to realign as the business evolves and grows, including in Asia Pacific with our strategic partner Genting Berhad…” — Dr. Robert J. Hariri .
On reporting processes: “We have implemented several key improvements… engaging additional technical accounting resources, upgrading internal review protocols, and collaborating closely with external auditors to ensure timely and accurate financial disclosures.” — Dr. Robert J. Hariri .

Q&A Highlights

No Q3 2024 earnings call transcript was available; therefore, no Q&A to summarize. Management’s guidance and clarifications are sourced from press releases and the 10-Q .

Estimates Context

Consensus (S&P Global) for Q3 2024 revenue and EPS was not accessible at the time of analysis due to data access constraints. Values retrieved from S&P Global.
Given the magnitude of the beat in reported revenue growth (+145.5% YoY) and the raised FY24 net sales range, estimate revisions are likely to skew upward on revenue, while continued operating losses and liquidity risk may temper EPS estimate trajectories .

Key Takeaways for Investors

Execution inflection in biomaterials: Revenue growth (Q3 +145.5% YoY; 9M +238.6%) and a record October support a higher FY24 net sales outlook; Rebound is an incremental near-term driver .
Losses narrowing vs prior year (heavy impairments in Q3’23), but absolute profitability remains distant; monitor expense discipline and mix shift toward higher-margin biomaterials .
Balance sheet risk is central: Going-concern uncertainties and sizeable near-term debt obligations (including related-party facilities) are the key overhangs despite improved sales momentum .
Reporting cadence is stabilizing: Nasdaq compliance was restored in November, reducing a mechanical overhang; sustained timely filings would aid credibility and investor access .
Tactical setup: Near-term trading likely sensitive to monthly/quarterly sales prints (notably Rebound), progress on capital solutions, and any updates on distribution/partnership buildout (e.g., APAC) .
Medium-term thesis hinges on scaling advanced biomaterials, expanding indications/channels, and de-risking liquidity to convert top-line momentum into sustainable margins and cash flow .

Appendix: Additional Disclosures and Context

Compliance and filings: Company received Nasdaq notices related to delayed Q1/Q2 10-Qs; filed Q1 on Oct 16 and Q2 on Nov 7; Nasdaq matter closed on Nov 18 .
Q3 2024 financial statements (selected): total net revenues $9.3M; operating loss $(11.5)M; net loss $(16.1)M; EPS $(0.73) .
Nine-month 2024: total net revenues $36.1M (+238.6% YoY); product sales $26.2M (+621.1% YoY) .
FY24 guidance: total net sales $54–$60M (advanced biomaterials $49–$54.5M; biobanking $5.0–$5.5M) .
October momentum and 10-month pace: expected net sales $8.3–$8.9M in October; $44.4M through Oct (incl. ~$9M Rebound) .

Celularity Inc (CELU)·Q3 2024 Earnings Summary