Rapid Micro Biosystems, Inc. Class A ((RPID)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Rapid Micro Biosystems, Inc. Class A revealed a mixed sentiment. While the company celebrated a significant multi-system order and robust growth in consumables revenue, challenges such as negative product margins and a net loss were also acknowledged. The collaboration with MilliporeSigma is expected to enhance cost efficiencies and drive future growth, reflecting a cautiously optimistic outlook.
Record Multi-System Order
Rapid Micro Biosystems secured a record multi-system order from a top 20 global biopharma customer. This order is set to begin contributing to revenue in the fourth quarter of 2025, with expectations of continued impact into 2026 and beyond. This achievement underscores the company’s ability to attract significant business from major industry players.
Revenue and Growth Metrics
The company reported a revenue of $7.8 million for Q3 2025, marking a 3% increase from Q3 2024. This quarter represents the 12th consecutive period where the company met or exceeded its revenue guidance, highlighting consistent performance.
Consumables Revenue Growth
Consumables revenue, a crucial indicator of demand, surged by 40%, setting a new quarterly record. This contributed to a 32% increase in recurring revenue year-over-year, showcasing strong market demand and customer reliance on Rapid Micro Biosystems’ offerings.
MilliporeSigma Collaboration Advancements
Progress continues with the MilliporeSigma collaboration, including developing a global sales funnel and initial product supply agreements. These efforts are aimed at reducing costs and improving margins, which are critical for the company’s financial health.
Negative Product Margins
The company reported slightly negative product margins in Q3 2025. However, improvements are anticipated in Q4 and beyond, driven by cost reduction initiatives. This indicates a strategic focus on enhancing profitability.
Net Loss in Q3
Rapid Micro Biosystems reported a net loss of $11.5 million in Q3 2025, slightly higher than the $11.3 million loss in Q3 2024. The net loss per share stood at $0.26, reflecting ongoing financial challenges.
Service Revenue Projection
The company expects Q4 2025 service revenue to decrease to approximately $2 million, attributed to the timing of validation activities. This projection indicates a temporary dip in service-related income.
Forward-Looking Guidance
Looking ahead, Rapid Micro Biosystems raised its full-year revenue guidance to at least $33 million, driven by strong year-to-date performance. The company plans to place at least 27 Growth Direct Systems and anticipates continued gross margin improvement, supported by product cost reduction initiatives and the MilliporeSigma collaboration.
In summary, the earnings call for Rapid Micro Biosystems, Inc. Class A reflected a cautiously optimistic sentiment. While the company faces challenges such as negative product margins and a net loss, significant achievements like the multi-system order and consumables revenue growth highlight its potential. The collaboration with MilliporeSigma and strategic cost reduction initiatives are expected to drive future growth and profitability.