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RM

RAPID MICRO BIOSYSTEMS, INC. (RPID)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $7.84M, up 3% YoY, above consensus ($7.60M) and above the midpoint of guidance; EPS was ($0.26), modestly below consensus ([$7.84M actual vs $7.60M est; ($0.26) actual vs ($0.245) est]). The company posted 9% gross margin, its fifth straight quarter of positive GM .
  • Management announced a record multi‑system order from a Top 20 global biopharma customer spanning North America, Europe, and APAC, and raised FY25 revenue guidance to at least $33.0M with at least 27 GrowthRx placements .
  • Recurring revenue grew 32% YoY (consumables +40% to a quarterly record), while service margin reached 40%; product margin remained slightly negative but is guided to turn positive in Q4 on cost and manufacturing efficiency gains .
  • Near‑term puts and takes: Q4 service revenue expected to ~ $2M, consumables to step down sequentially to Q2 levels; Q4 gross margin guided to mid‑single digits, with positive product margin for the first time .

What Went Well and What Went Wrong

  • What Went Well

    • Record consumable revenue with recurring revenue up >30% YoY; “We delivered record consumable revenue and double‑digit service growth… Recurring revenue increased more than 30%” .
    • Secured largest multi‑system order in company history from a Top 20 biopharma to automate a global network; “you can think of it as a double‑digit order” .
    • Gross margin improved 70 bps YoY to 9%; service margin reached 40% on higher revenue and productivity; company reaffirmed multi‑year margin expansion trajectory (product margin expected positive in Q4) .

  • What Went Wrong

    • Fewer system placements (5 vs 7 prior year), and product margin slightly negative (−7%); net loss remained ($11.5M), EPS flat YoY at ($0.26) .
    • Q4 guide implies step down in service revenue (~$2M) and mid‑single‑digit GM, reflecting timing of validations and a tough YoY comp for service .
    • Macro/tariff dynamics and capex scrutiny continue to elongate deal timing; management continues to see diligence but high‑ROI projects are getting approved .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$7.21 $7.26 $7.84
GAAP Diluted EPS ($)($0.26) ($0.27) ($0.26)
Gross Margin %6% 4% 9%
Product Revenue ($USD Millions)$4.10 $4.80 $5.21
Service Revenue ($USD Millions)$3.10 $2.46 $2.62
Recurring Revenue ($USD Millions)$4.0 $4.4 $4.8

Segment/KPIs

KPIQ1 2025Q2 2025Q3 2025
System Placements (units)3 4 5
Validations Completed (units)9 2 4
Service Margin %—32% 40%
Product Margin %—(11%) (7%)
Cash & Investments ($USD Millions)$41.7 $31.3 $41.5

YoY context for Q3 (selected)

MetricQ3 2024Q3 2025YoY
Revenue ($USD Millions)$7.60 $7.84 +3%
Product Revenue ($USD Millions)$5.26 $5.21 Flat
Service Revenue ($USD Millions)$2.35 $2.62 +12%
Recurring Revenue ($USD Millions)$3.70 $4.80 +32%
Gross Margin %8% 9% +70 bps

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY 2025≥ $32.0 ≥ $33.0 Raised
System Placements (units)FY 202521–25 (expect low end) ≥ 27 Raised
Gross Margin %FY 2025High single digits to low teens Mid to high single digits Lowered range midpoint
Gross Margin %Q4 2025“Meaningful improvement” vs Q3 Mid‑single digits; positive product margin Reset lower; mix shift
Service Revenue ($USD Millions)Q4 2025~Q2‑like run‑rate ~ $2.0 due to validation timing Lowered
Consumables RevenueQ4 2025Step‑ups Q3 and Q4 Step down to Q2 levels Lowered
Operating Expenses ($USD Millions)FY 2025$46–$48 ~ $48 Maintained high end
D&A / Stock Comp / CapEx ($USD Millions)FY 2025$3 / $4 / $2 $3 / $4 / $2 Maintained
Interest Income/Expense ($USD Millions)Q4 2025N/A~$0.5 in, ~$0.6 out (offset) New detail
Year‑End Cash & Investments ($USD Millions)FY 2025~ $40 ~ $40 Maintained
Validations (units)FY 2025≥ 18 ≥ 18 (≥3 in Q4) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
MilliporeSigma partnership (distribution + supply)Agreement announced; early joint training; goal: placements, margin, innovation Active funnel building; margin supply initiatives; 2026 commitments MilliporeSigma began ordering systems; nearing initial product supply agreement; benefits expected 2H26 Building momentum; margin tailwinds 2026
Automation/Industry tailwindsPositioning Growth Direct for modernization in QC Strong interest; onshoring in U.S. supports demand PDA Micro Conference validated acceleration of automation trend; GrowthRx positioned well Strengthening
Tariffs/macro/capex scrutiny—Tariff‑driven cost increases moderated by internal actions; capex diligence Deal timing still impacted; high‑ROI projects get approved Persistent headwind; mitigated
Product cost/manufacturing efficiencyInitiatives underway; GM inflection Multi‑pronged cost reduction; automation in consumables line Positive product margin expected in Q4; accelerating GM in 2026 Improving
Multi‑system/global rollouts—Pipeline includes multi‑system opportunities Record double‑digit multi‑system order; more orders in funnel Accelerating
Financing/LiquidityNo debt; $42M cash/investments $45M term loan; $20M drawn; interest‑only 36 months End‑year cash ~ $40M; interest income/expense offset Q4 Liquidity strengthened

Management Commentary

  • “We delivered record consumable revenue and double‑digit service growth… Recurring revenue increased more than 30% compared to the third quarter last year.” — Robert Spignesi, CEO .
  • “In October, we secured a record multi‑system order… across multiple sites in North America, Europe, and Asia‑Pacific… fully leverage all of our applications, including environmental monitoring, water, and bioburden.” — CEO .
  • “Third quarter gross margin was 9%… a sequential improvement of over 500 basis points compared to Q2… Service margins were 40%… We expect positive product margins for the first time in Q4.” — Sean Wirtjes, CFO .
  • “We are raising our full‑year total revenue guidance to at least $33 million, which includes at least 27 GrowthRx system placements.” — CEO .

Q&A Highlights

  • Guidance raise mechanics: The multi‑system order was additive to guide; Q4 service timing a headwind; net effect is the ~$1M revenue guide increase .
  • Geographic demand: Broad‑based across NA/EU/APAC; current win not due to U.S. onshoring, which is a potential benefit starting 2026+ .
  • Order size/timing: Double‑digit system order; meaningful Q4 placements, with installations/validations in 1H26 and consumable ramp in 2H26 .
  • MilliporeSigma supply benefits: Material validation underway; expected margin tailwinds begin in 2H26 .
  • Adjacent markets strategy: Focus via MilliporeSigma for personal care/med device; Rapid Micro’s direct focus remains global pharma/biopharma .

Estimates Context

MetricQ3 2025 ConsensusQ3 2025 ActualSurprise
Revenue ($USD Millions)$7.60*$7.84 Beat (by ~$0.24M)*
Primary EPS ($)($0.245)*($0.26) Miss (by ~$0.015)*
EBITDA ($USD Millions)($11.20)*($10.67) Beat (less negative by ~$0.53M)*
# of Revenue Estimates4*——
# of EPS Estimates4*——

Forward snapshot

MetricQ4 2025 Consensus
Revenue ($USD Millions)$11.20*
Primary EPS ($)($0.23)*

Values retrieved from S&P Global.*

Implications: Revenue outperformed consensus on strong consumables and service; EPS/EBITDA variances reflect mix and ongoing product margin improvement trajectory. Q4 consensus likely overshoots service given management’s ~$2M service revenue guide and consumables step‑down to Q2 levels .

Key Takeaways for Investors

  • Q3 print demonstrated durability in recurring revenue (+32% YoY) and service margin (40%), with continued gross margin improvement; revenue beat offsets a modest EPS miss *.
  • The record double‑digit multi‑system order is a structural win that should drive Q4 system placements and 2026 services/consumables ramp; pipeline includes similar multi‑site opportunities .
  • FY25 guide raised to ≥ $33M revenue and ≥ 27 placements, but near‑term Q4 mix (lower service/consumables) constrains GM to mid‑single digits; product margin inflection to positive in Q4 is a key proof point .
  • Margin expansion story intact for 2026, with internal cost/mfg efficiency initiatives and MilliporeSigma supply collaboration benefits in 2H26; watch for updates on the initial product supply agreement .
  • Liquidity strengthened via $45M term loan ($20M drawn, interest‑only 36 months); year‑end cash/investments ~ $40M, providing runway to execute .
  • Macro/tariff/capex diligence still elongates cycle times, but high‑ROI, enterprise‑wide automation projects are getting approved; narrative supportive of multi‑system standardization across networks .
  • Trading setup: Near‑term volatility possible given Q4 service/GM step‑down; medium‑term catalysts include additional multi‑system wins, positive product margin delivery, and tangible margin tailwinds from the supply partnership .