Executive Summary

Q2 2022 net product revenue was $8.973M, up 312% year-over-year; gross margin expanded to 47% (from 8%), and gross profit rose to $4.187M. Net loss was $(12.513)M; Adjusted EBITDA was $(24.169)M .
Bold guidance reset: FY2022 product revenue cut to $27–$30M (from $58M), gross profit to $11–$13M (from $25–$30M), and Adjusted EBITDA loss widened to $(75)–$(80)M (from $(55)–$(60)M). This constitutes a significant negative surprise and likely stock overhang tied to financing constraints and reduced H2 marketing .
Liquidity actions: $15M pre-order from Ro in June (bringing cumulative pre-paid Ro orders to $55M), $25M promissory notes in July, and a committed equity facility with B. Riley for up to $50M in common stock; cash ended Q2 at $25.341M .
KPIs showed momentum: 43,800 new members (+208% YoY), 129,890 units sold, ASP $69.08, and improving marketing efficiency per CFO commentary; however, SG&A remained elevated and cash burn was material YTD .

What Went Well and What Went Wrong

What Went Well

Material revenue/margin expansion: “Plenity Q2 product revenue increased 312% year-over-year to $9.0 million,” with gross margin improving to 47% from 8% driven by volume and lower COGS .
Demand and engagement: “We are seeing both consumers and clinicians embracing Plenity… consumers are ordering quarterly kits at the start of their treatment journey as well as by our refill rates,” CEO Yishai Zohar noted .
Financing and channel support: “The previously disclosed $15.0 million pre-order for Plenity that Ro placed in June provided a boost to our liquidity… additional $25.0 million of proceeds… and the committed equity financing… up to $50.0 million,” CFO Elliot Maltz said .

What Went Wrong

Guidance cut: FY2022 revenue and gross profit lowered roughly ~50% and ~56% respectively, with Adjusted EBITDA loss widened by ~$20M, citing reduced H2 selling/marketing investment and liquidity considerations .
Expense intensity: Q2 SG&A of $32.450M and total operating expenses of $43.325M pressured profitability despite gross margin gains .
Cash burn: Net cash used in operating activities was $(39.772)M for the six months ended June 30, 2022; period-end cash declined to $25.341M, underscoring reliance on external financing .

Financial Results

Metric (USD Thousands unless noted)	Q2 2021	Q1 2022	Q2 2022
Net Product Revenue	$2,178	$7,514	$8,973
Gross Profit	$173	$2,601	$4,187
Gross Margin (%)	8%	34.6%	47%
Total Operating Expenses	$22,135	$50,596	$43,325
Loss from Operations	$(19,957)	$(43,082)	$(34,352)
Net Loss	$(24,739)	$(5,703)	$(12,513)
Net Loss per Share (basic & diluted)	$(19.18)	$(0.70)	$(0.17)
Adjusted EBITDA	$(16,640)	$(26,932)	$(24,169)

KPIs

KPI	FY 2021	Q1 2022	Q2 2022
New Members Acquired	79,100	40,400	43,800
Units Sold	170,969	114,570	129,890
ASP per Unit, net ($)	$65.42	$65.58	$69.08
Gross Margin (%)	10.7%	34.6%	47%

Cash & Liquidity

Metric	FY 2021	Q1 2022	Q2 2022
Cash & Cash Equivalents (USD Thousands)	$28,397	$33,985	$25,341
Net Cash Used in Operating Activities (YTD)	—	$(35,183)	$(39,772)
Ro Prepaid Orders (Cumulative)	$40,000 (2021)	—	$55,000

Note: No separate segment reporting disclosed; results are primarily driven by Plenity product revenue .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Product Revenue, net	FY 2022	~$58.0M	$27.0M–$30.0M	Lowered
Gross Profit	FY 2022	$25.0M–$30.0M	$11.0M–$13.0M	Lowered
Adjusted EBITDA	FY 2022	$(55.0)M–$(60.0)M	$(75.0)M–$(80.0)M	Lowered

Drivers: reduced H2 selling/marketing investment, liquidity considerations; outlook contingent on timing/amount of additional financing .

Earnings Call Themes & Trends

Transcript unavailable; management scheduled an 8:30 am ET call with webcast and dial-in but no transcript was found in our document set . Themes below are derived from press releases.

Topic	Previous Mentions (Q4’21 and Q1’22)	Current Period (Q2’22)	Trend
Consumer marketing & awareness	Debut media campaign planned; reaffirmed ~$58M revenue and margin expansion expectations . Launch on Jan 31 drove >80% of Q1 revenue; strong conversion and HCP engagement .	Continued growth in both distribution channels; marketing efficiency improving; but H2 marketing spend to be reduced due to liquidity .	Mixed: demand improving, spend curtailed.
Telehealth partner (Ro)	$40M pre-paid orders in 2021; strong platform positioning .	Additional $15M pre-order in June (cumulative $55M); supports liquidity .	Strengthening partner support.
Manufacturing scale-up	Phase 1 commercial scale completed end-2021; margin improvement expected .	Margin expansion realized (47%); benefits from lower COGS .	Improving.
R&D/clinical data	Pipeline and clinical indications highlighted; GS200 studies referenced .	New preclinical ADA data on microbiota, weight, and glucose tolerance/insulin sensitivity .	Steady advancement.
Financing/liquidity	SPAC proceeds $105M in Jan-2022; guidance contingent on financing availability .	$25M notes in July; $50M equity facility; guidance updated lower given liquidity and reduced marketing .	Liquidity actions; outlook constrained.
Macro/telehealth volatility/inflation	Telehealth volatility and inflation risks noted in risk factors .	Risk factors reiterated; forward-looking statement caveats .	Persistent risk backdrop.

Management Commentary

CEO: “We are seeing both consumers and clinicians embracing Plenity… There has been incredible momentum in obesity care… Plenity offers a unique solution… at an affordable price, making our business well positioned in this rising tide of obesity care.” — Yishai Zohar .
CFO: “We’re encouraged by the continued growth in Plenity sales and improving profit margin… The previously disclosed $15.0 million pre-order… provided a boost to our liquidity… $25.0 million… notes in July, as well as… option to issue up to $50.0 million of common stock, further strengthens our financial position.” — Elliot Maltz .

Q&A Highlights

Q2 earnings call transcript was not available in our document set. Management signaled a live call and webcast but we could not retrieve Q&A content. Key clarifications from press materials include guidance reductions tied to H2 marketing pullback and liquidity, and financing actions to bolster flexibility .

Estimates Context

Wall Street consensus via S&P Global was unavailable: attempts to retrieve Q2 2022 and Q1 2022 consensus for GLSHQ returned a missing mapping error (no CIQ company ID). As a result, comparisons vs consensus could not be provided. If estimates become available, we would anchor revenue and EPS comparisons to S&P Global consensus and highlight beats/misses accordingly.

Key Takeaways for Investors

Significant guidance reset is the quarter’s dominant narrative; absent consensus, the directional change is materially negative and likely to pressure the stock until financing and growth visibility improve .
Operating momentum is intact (revenue +312% YoY; gross margin 47%) and KPIs continue to scale, suggesting product-market fit; however SG&A intensity and cash burn require sustained external capital or reduced spend .
Liquidity bolstered by $15M Ro pre-order, $25M notes, and a $50M equity facility; equity issuance is optional but could be dilutive; watch execution pace and market windows .
Near-term trading: expect sensitivity to any financing updates, marketing spend cadence, and unit growth metrics; margin expansion is a partial offset but not yet sufficient to drive profitability .
Medium-term thesis: if marketing efficiency continues improving and telehealth/HCP channels scale, ASP and refill dynamics may support higher gross profit; the reset reduces FY expectations, but execution on cash discipline and growth could re-rate sentiment .
Monitor regulatory/macro telehealth risks and inflation impacts on COGS/SG&A, as highlighted in risk disclosures .
Pipeline/R&D remains a potential long-term optionality (microbiota and glycemic benefits); near-term valuation likely dominated by commercial trajectory and balance sheet strength .

GELESIS HOLDINGS, INC. (GLSHQ)·Q2 2022 Earnings Summary