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CI

Cryoport, Inc. (CYRX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue from continuing operations was $41.0M, up 10.1% year over year; total gross margin expanded to 45.4% and adjusted EBITDA improved to -$2.8M from -$6.7M YoY .
  • Revenue beat S&P Global consensus by ~2.3% ($41.0M vs. $40.1M), while EPS missed (Primary EPS actual -$0.384 vs. -$0.258 est.); management reiterated FY25 continuing-ops revenue guidance of $165–$172M; bold catalysts: service margin expansion and DHL strategic partnership execution *.
  • Life Sciences Services led with 17% YoY growth (56% of revenue); commercial Cell & Gene therapy revenue rose 33% YoY to $7.2M; total supported clinical trials reached 711, with 79 in Phase 3 .
  • Strategic partnership with DHL and planned CRYOPDP divestiture positions CYRX to strengthen APAC/EMEA reach and sharpen focus on regenerative medicine; transaction expected to close in Q2/Q3 2025 .

What Went Well and What Went Wrong

What Went Well

  • Services-led growth and margin expansion: Life Sciences Services revenue +17% YoY to $22.9M and Services gross margin rose to 47.9% (from 43.5%) .
  • Commercial CGT momentum: commercial revenue +33% YoY to $7.2M; 19 commercial therapies supported and 711 active trials as of March 31, 2025 .
  • Strategic DHL partnership: management emphasized global reach and capital infusion; “This arrangement will enhance our operational reach… and reshape our competitive profile” (CEO) .

What Went Wrong

  • EPS below Street: Primary EPS actual -$0.384 vs. -$0.258 est.; despite improved gross margin and lower opex, adjusted EBITDA remained negative due to ramp investments (e.g., IntegriCell) * *.
  • Continued GAAP net loss: Q1 net loss was $12.0M (incl. discontinued ops) and net loss per share was -$0.28; Services ramp and newer initiatives still weighed on profitability .
  • Tariff headwinds emerging: management flagged early impacts on aluminum; mitigation via supply chain diversification and surcharges, potentially adding near-term friction even if margin-protective .

Financial Results

Reported Results (GAAP and Non-GAAP)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$59.532 $41.040 $45.454
Gross Margin %45.8% 45.4% 47.0%
Life Sciences Services Revenue ($M)$39.556 $22.865 $24.369
Life Sciences Products Revenue ($M)$19.976 $18.175 $21.085
Operating Costs & Expenses ($M)$41.212 $28.125 $31.210
Net Income (Loss) ($M)$(18.677) $(11.981) $105.180
Net Income (Loss) per Share ($)$(0.42) $(0.28) $2.05
Adjusted EBITDA ($M)$(1.262) $(2.819) $(0.914)

Note: Q2 2025 GAAP net income reflects the gain on sale of CRYOPDP presented in discontinued operations .

Performance vs S&P Global Consensus

MetricQ4 2024Q1 2025Q2 2025
Revenue Consensus Mean ($M)58.561*40.115*41.732*
Revenue Actual ($M)59.532*41.040*45.454*
Result vs EstimateBeat*Beat*Beat*
Primary EPS Consensus Mean ($)-0.306*-0.258*-0.220*
Primary EPS Actual ($)-0.427*-0.384*-0.243*
Result vs EstimateMiss*Miss*Miss*

Values retrieved from S&P Global.*

Segment Breakdown (Q1 2025 vs Q1 2024)

SegmentQ1 2024 ($M)Q1 2025 ($M)YoY Change
Life Sciences Services$19.485 $22.865 +17%
BioLogistics Solutions$15.957 $18.531 +16%
BioStorage/BioServices$3.528 $4.334 +23%
Life Sciences Products$17.806 $18.175 +2%
Total Revenue (Cont. Ops)$37.291 $41.040 +10%

KPIs (Q1 2025)

KPIValue
Commercial Cell & Gene Therapy Revenue$7.2M
Commercial Therapies Supported19
Total Supported Clinical Trials711 (Phase 1: 304; Phase 2: 328; Phase 3: 79)
Trials by RegionAmericas 544; EMEA 118; APAC 49
Gross Margin (Cont. Ops)45.4%
Adjusted EBITDA-$2.8M
Cash, Cash Equivalents & ST Investments$244.0M
Share Repurchase Authorization$73.9M remaining
Weighted Avg Shares (basic/diluted)49,947,012

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue (Company)FY 2025$240–$250M (as of Q4 2024 PR) —Reframed due to CRYOPDP divestiture (see below)
Total Organic Revenue (Continuing Ops)FY 2025—$165–$172M; 5–10% YoY growth Maintained (reiterated on Q1 release)
Total Revenue (Continuing Ops)FY 2025—$165–$172M (reaffirmed Q2) Maintained

Management reframed FY25 guidance to continuing operations in connection with the DHL/CRYOPDP transaction; the $165–$172M range was reiterated (and later reaffirmed) under this framework .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, and Q2 2025)Current Period (Q1 2025)Trend
Tariffs/MacroQ4: U.S.-manufactured dewars/freezers mitigate tariff risk; margins protected; China not in guide . Q2: Continued margin protection, revenue growth; tariff commentary less central .Management sees minimal impact on CGT logistics; early aluminum tariff impact; mitigations via supply chain diversification and surcharges .Stable-to-improving mitigation; margin protection focus.
Services Margin ExpansionQ4: GM improved materially; longer-term 55% GM/30% adj. EBITDA targets .Services GM +~500 bps YoY; sustained leverage expected with some drag from ramping initiatives (IntegriCell) .Improving; near-term drag from growth initiatives.
Product Demand StabilizationQ4: Order patterns stabilizing; modest growth assumption for products .YOY product revenue +2%; HE 800C launch; North America resilience .Stabilizing to modest growth.
Strategic PartnershipsQ4: Pursuing collaborations; building supply chain centers . Q2: DHL partnership closed; enhances APAC/EMEA; strong capital position .DHL partnership announced; sale expected Q2/Q3; enhances reach and competitive profile .Positive, accelerating execution.
CGT CommercializationQ4: Commercial revenue growth strong; record approvals; 701 trials .Commercial revenue +33% YoY; 19 commercial therapies; 711 trials (79 Phase 3) .Strengthening pipeline and commercial ramps.
RegulatoryQ2: FDA removed REMS for certain CAR-Ts (potential access tailwind) .New CBER head; management expects data-driven approvals; minimal tariff/drug pricing impact on CGT logistics .Constructive regulatory backdrop for CGT.
IntegriCell (Cryopreservation)Q4: Facilities opened; modest 2025 revenue; larger contribution in 2026 .Multiple commercial contracts; smooth onboarding; revenue contribution staged over quarters .Early ramp; medium-term growth lever.

Management Commentary

  • “We delivered a strong start to the year with $41.0 million of revenue from continuing operations… and drove meaningful improvement in adjusted EBITDA.” (CEO Shelton) .
  • “We are optimistic in our outlook for the full year… anticipate minimal impact from tariffs as we believe related charges will be passed through” .
  • “Strategic partnership with DHL… expected to close in the second or third quarter… enhance our operational reach, especially in APAC and EMEA” .
  • “We remain confident these actions and our momentum will lead us to a return to positive adjusted EBITDA during 2025” .

Q&A Highlights

  • Services margins: ~500 bps YoY expansion in Services GM; management expects continued leverage with some near-term drag from ramp initiatives like IntegriCell .
  • Tariffs: early aluminum impact; surcharges to protect margins; limited impact on clinical/commercial CGT logistics; diversified sourcing .
  • IntegriCell: multiple commercial contracts; onboarding smooth; tech transfer/verification cycles imply revenue contribution builds over coming quarters .
  • Capital allocation after CRYOPDP sale: management will be prudent; buybacks are a consideration given perceived undervaluation .
  • Demand backdrop: balanced trial adds across biotech and large pharma; Americas resilient for products; China excluded from guidance .

Estimates Context

  • Q1 2025 revenue beat: $41.040M actual vs. $40.115M consensus (+2.3%); EPS miss: Primary EPS -$0.384 actual vs. -$0.258 est. (more negative by ~$0.13) — 7 revenue estimates and 3 EPS estimates contributed to consensus*.
  • Trajectory: Q4 2024 revenue slightly beat ($59.532M vs. $58.561M) and EPS missed (-$0.427 vs. -$0.306); Q2 2025 revenue beat ($45.454M vs. $41.732M) and EPS modest miss (-$0.243 vs. -$0.220)*.
  • Implications: Street likely to raise Services growth and margin assumptions but keep EPS trajectories conservative given ongoing investment ramp and adjusted EBITDA still negative in Q1/Q2*.

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Services-led growth and margin expansion underpin the bull case: Services revenue +17% YoY; Services GM 47.9% vs. 43.5% last year .
  • Narrative catalyst: DHL partnership enhances APAC/EMEA reach and sharpens focus on regenerative medicine; CRYOPDP divestiture improves capital position .
  • CGT momentum intact: commercial revenue +33% YoY, 19 commercial therapies, 711 trials (79 Phase 3); durable multi-year secular tailwind .
  • Profitability path visible but staged: adjusted EBITDA improved to -$2.8M; near-term drag from growth initiatives (IntegriCell) should moderate as revenue ramps .
  • Tariff risk manageable: surcharges and U.S. manufacturing footprint protect margins; limited impact expected on CGT logistics .
  • Guidance reframed to continuing ops with $165–$172M FY25 reiterated; execution on Services growth and margin expansion is key to hitting targets .
  • Trading setup: near-term sensitivity to service margin trajectory and partnership milestones; medium-term thesis hinges on CGT commercialization breadth and operating leverage realization .