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MARAVAI LIFESCIENCES HOLDINGS, INC. (MRVI)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $47.4M, down 31.7% YoY; GAAP net loss was $(69.8)M (including a $30.4M goodwill impairment), and Adjusted EBITDA was $(10.4)M .
  • Base business revenue (excluding high‑volume CleanCap) grew 5% YoY; Biologics Safety Testing (BST/Cygnus) rose 9.9% YoY, while Nucleic Acid Production (NAP/TriLink) fell 43.1% YoY due to no high‑volume CleanCap orders .
  • Management withdrew 2025 revenue guidance and announced >$50M annualized cost reductions and a ~25% workforce reduction; restructuring charges of ~$8–$9M are expected in H2’25 .
  • Versus consensus, revenue was essentially in line and EPS modestly worse: Revenue $47.40M vs $47.37M*, EPS $(0.08) vs $(0.074); catalysts were guidance withdrawal, impairment, and the cost‑restructuring plan . Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Base business grew 5% YoY, driven by Cygnus BST kits, HCP qualification services, and MockV viral clearance kits; CEO: “our base revenue… grew 5% in the quarter” .
  • BST revenue +9.9% YoY; strong demand across product lines and services supported segment resilience .
  • Strategic partnerships and product launches: CleanCap license and supply agreement (Thermo Fisher) and an mRNA synthesis kit to streamline IVT workflow .

What Went Wrong

  • NAP revenue fell 43.1% YoY on no high‑volume CleanCap orders for commercial vaccine programs; excluding high‑volume CleanCap, NAP was only up 3% YoY .
  • GAAP loss widened materially due to a $30.4M goodwill impairment in the NAP segment and higher operating expenses; GAAP EPS was $(0.27) vs $(0.07) in Q2’24 .
  • Guidance uncertainty: company withdrew 2025 revenue guidance amid CEO/CFO transition and comprehensive business review, raising near‑term forecasting opacity .

Financial Results

MetricQ2 2024Q1 2025Q2 2025Consensus (Q2 2025)
Revenue ($USD Millions)$69.4 $46.85 $47.40 $47.37*
GAAP EPS ($USD)$(0.07) $(0.21) $(0.27) $(0.074)*
Adjusted Fully Diluted EPS (non-GAAP) ($USD)$(0.01) $(0.08) $(0.08) N/A
Adjusted EBITDA ($USD Millions)$13.0 $(10.5) $(10.4) N/A

Values retrieved from S&P Global.*

Segment revenue breakdown

SegmentQ2 2024 ($USD 000s)Q1 2025 ($USD 000s)Q2 2025 ($USD 000s)YoY Change (Q2)
Nucleic Acid Production (NAP)$54,586 $28,750 $31,085 (43.1%)
Biologics Safety Testing (BST)$14,837 $18,100 $16,312 +9.9%
Total Revenue$69,423 $46,850 $47,397 (31.7%)

Key KPIs

KPIQ1 2025Q2 2025
Revenue by Customer Type (%)Biopharma 29%; Life Sci/Diagnostics 28%; Academia 6%; CRO/CMO/CDMO 7%; Distributors 30% Biopharma 28%; Life Sci/Diagnostics 30%; Academia 8%; CRO/CMO/CDMO 7%; Distributors 27%
Revenue by Geography (%)North America 62%; EMEA 15%; APAC ex‑China 15%; China 8% North America 65%; EMEA 18%; APAC ex‑China 12%; China 5%
Cash ($M)$285 $270
Long‑term Debt ($M)$298 $297
Stock‑based Compensation ($M, Qtr)$10.4 $6.8

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$185M–$205M (May) Guidance withdrawn (Aug) Lowered/Withdrawn
Adjusted EBITDA & FCFH2 2026Not providedExpect positive Adjusted EBITDA and positive FCF by H2 2026 New long‑term target
Restructuring ChargesH2 2025Not provided~$8–$9M charges in H2’25 New
Cost SavingsRun‑rateNot provided>$50M annualized savings (labor, facilities, capex, productivity) New
CapExFY 2025$15M–$20M (affirmed in May) No explicit update in Q2; cost actions include capex reductions Maintain trajectory / reduce structurally
High‑volume CleanCapFY 2025Base plan excluded No orders in 2025; early indications/binding order for 2026 (customer not disclosed) Maintain exclusion (qualitative 2026 upside)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Guidance & ForecastingPostponed Q4/FY 2024 results; internal controls remediation; revenue near mid‑point prelim FY’24 FY’25 revenue guide $185–$205M; cadence detail; breakeven math 2025 guidance withdrawn; focus on cost actions and budgeting; target positive adj. EBITDA/FCF by H2’26 Near‑term visibility reduced; longer‑term profitability focus
Cost RestructuringN/AOngoing cost control; corporate shared service expense reductions >$50M annualized savings; ~25% workforce reduction; $8–$9M restructuring charges Accelerating structural cost reset
BST/Cygnus performanceN/AStrong Q1; China strength and seasonality noted +9.9% YoY in Q2; broad product strength; mid‑single‑digit growth outlook Consistent resilience; diversified demand
NAP/TriLink dynamicsN/ABase revenue growth; CleanCap licenses; discovery innovations (Poly(A+) tail; guides) No high‑volume CleanCap; base NAP +3% YoY; CDMO enablement; mRNA builder e‑commerce Transitioning to diversified GMP consumables & CDMO services
Supply chain/tariffsN/AUS‑based vertical supply chain; China BST $3.8M; mitigation plans Limited pull‑forward in China; watching tariff impacts; potential US reshoring opportunity Managed risk; optionality for US footprint
Leadership changesN/ACFO guidance affirmed (May) CEO (June 9) and CFO (June 25) appointments; execution focus New team; strategic review and operational discipline

Management Commentary

  • CEO: “our base revenue… grew 5% in the quarter, led by strong demand for our Cygnus products and services” .
  • CEO: “implementing actions expected to realize north of $50 million in annualized cost savings… to better align our cost structure… and put Maravai on a path to return to profitability” .
  • CFO: “Revenue for the quarter was $47,400,000… Adjusted EBITDA… was a negative $10,400,000… Basic and diluted EPS… $(0.27)” .
  • CFO: “we anticipate incurring restructuring charges of approximately $8,000,000 to $9,000,000 in 2025… not expected to impact customer programs or revenue” .
  • Management withdrew 2025 revenue guidance to complete a comprehensive business review; targets positive adjusted EBITDA and FCF by H2’26 .

Q&A Highlights

  • Guidance approach: Team withdrew FY’25 guide to restore confidence and visibility; not planning quarter‑to‑quarter guidance near‑term .
  • BST durability: Strong adoption in HCP kits/services and MockV; minor China pull‑forward; near‑term growth modeled mid‑single‑digit .
  • CleanCap outlook: No 2025 high‑volume orders; early indication and a binding order for 2026; plan to operate as if zero, upside if orders arrive .
  • Tariffs/reshoring: Optionality if pharma reshoring accelerates; US footprint could benefit; no material tariff impact yet .
  • Commercial strategy: Split focus—EVP Sales on large GMP/CDMO opportunities, CMO on e‑commerce for research; e‑commerce currently single‑digit % revenue .

Estimates Context

  • Revenue essentially in line: $47.40M actual vs $47.37M consensus*; EPS slightly below: $(0.08) actual vs $(0.074) consensus* (12 estimates each). Values retrieved from S&P Global.*
  • Estimate revisions likely to reflect: guidance withdrawal (greater uncertainty), BST resilience, and structural cost‑savings ramp into 2026 .

Key Takeaways for Investors

  • Near‑term reset: Withdrawal of FY’25 guide and the goodwill impairment underscore a transitional year; base demand is stabilizing while NAP remains CleanCap‑dependent .
  • Structural cost actions: >$50M annualized savings and ~25% workforce reduction should materially improve run‑rate profitability and cash burn exiting 2025 into 2026 .
  • Segment mix shift: BST provides defensive growth and high margins; NAP strategy pivots toward GMP consumables, CDMO services, and e‑commerce tools .
  • 2026 inflection potential: Management targets positive adjusted EBITDA and FCF by H2’26; early CleanCap 2026 indicators offer upside optionality .
  • Trading setup: Watch reinstatement of guidance and execution on savings cadence; BST growth durability and any CleanCap order news are key catalysts .
  • Risk checks: Internal control remediation history and revenue lumpiness warrant conservative modeling; tariff/geopolitical exposure appears manageable with US‑centric supply chain .
  • Strategic partnerships: Thermo Fisher and Quantoom CleanCap agreements support broader adoption and CDMO enablement, reinforcing long‑term positioning .

Values retrieved from S&P Global.*