Q2 2025 MaxCyte Inc Earnings Call
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Good afternoon, everyone. Thank you for participating in today's conference call. Joining me on the call for Mac site, we have <unk>, President and Chief Executive Officer, and Doug Swirsky, Chief Financial Officer earlier today <unk> released financial results for the second quarter ended June 32025.
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A copy of the press release is available on the company's website.
Before we begin I mean truly the following statement statements or comments made during this call maybe forward looking statements within the meaning of federal Securities laws.
Speaker #1: To withdraw your question, please press star one once again. Today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Erik Abdo, investor with ENC.
Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward looking statements.
Speaker #1: Please go head.
Speaker #2: Good afternoon, everyone. Thank you participating in today's conference call. Joining me on the call for MAXCYTE, we have Maher Masoud, president and chief executive officer, and Doug Swirsky, chief financial officer.
Actual results may differ materially from those expressed or implied in any forward looking statements due to a variety of factors, which are discussed in detail in our SEC filings.
As required by applicable law. The company has no obligation to publicly update any forward looking statements, whether because of new information future events or otherwise and with that I will turn the call over to him or her.
Speaker #2: Earlier today, MAXCYTE released financial results for the second quarter ended June 30th, 2025. A copy the press release is available on the company's website.
Speaker #2: Before we begin, I need to read the following statement. Statements or comments made during this call may be forward-looking statements within the meaning of federal securities laws.
Thank you Eric Good afternoon, everyone and thank you for joining <unk> second quarter 2025 earnings call.
Speaker #2: Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward-looking statements. Actual results may differ materially from those expressed or implied in any forward-looking statements due to a variety of factors which are discussed in detail in our SEC filings.
<unk> reported financial results that were in line with our expectations in the second quarter.
To cover the highlights we sustained growth in a difficult end market.
We also recently signed two new strategic platform licenses with Anoka, Hebe and Ara survival, bringing the total number of new house builds this year to three.
We continue to focus on investing in the business with discipline, while positioning the company to achieve profitability with our existing capital.
Speaker #2: Except as required by applicable law, the company has no obligation to publicly update any forward-looking statements, whether because new information, future events, or otherwise.
And lastly, we progressed well on the integration of secured Dx, which is substantial long term opportunity for Mac site.
Speaker #2: And with that, I will turn the call over to Maher.
Despite what was a strong first half of the year short term external headwinds have begun to impact our expectations for growth in the second half.
Speaker #3: Thank you, Erik. Good afternoon, everyone, and thank you for joining MAXCYTE's second quarter 2025 earnings call. MAXCYTE reported financial results that were in line with our expectations in the second quarter.
First in recent months, we face a decrease in spending a large SPL partner customer related to inventory management and reorganization of manufacturing operations impacting leases.
Speaker #3: To cover the highlights, we sustained growth in a difficult end market. We also recently signed two new strategic platform licenses with an OKAB and Addis Ababo.
Second we have seen some customers rationalized programs and wind down operations entirely which has resulted in lower expectations for <unk> and licenses revenue.
Speaker #3: Bringing a total number of new SPLs this year to three. We continue to focus on investing in the business with discipline. While positioning the company to achieve profitability with our existing capital.
We have seen continued capital equipment purchasing hesitancy from customers related to the uncertain funding and regulatory environment in cell therapy.
Speaker #3: And lastly, we progressed well into the integration of secure DX. Which is a substantial long-term opportunity for MAXCYTE. Despite what was a ong first half of the year, short-term external headwinds have begun to impact our expectations for growth in the second half.
Taking these factors into account we are lowering our core revenue guidance range for 2025.
To walk you through our updated guidance, we now expect core business revenue, which does not include SPL program related revenue to be flat to down 10% in 2025, representing approximately $29 five to $32 5 million in 2025 revenue compared to $32 $5 million in 2024.
Speaker #3: First, in recent months, we faced a decrease in spending and a large SPL partner customer, related PA inventory management and reorganization of manufacturing operations impacting leases.
Speaker #3: Second, we have seen some customers rationalize programs and wind down operations entirely. Which has resulted in lower expectations for PA and licenses revenue. Last, we have seen continued capital equipment purchasing hesitancy from customers related to the uncertain funding and regulatory environment in cell therapy.
This compares to our previous guidance range of 8% to 15% growth or approximately 35% to $37 million.
Both ranges include approximately $2 million in revenue from secured Dx, which we continue to expect.
The change in the guidance midpoint is $5 million relative to our previous plan.
Speaker #3: Taking these factors into account, we are lowering our core revenue guidance range for 2025. To walk you through our updated guidance, we now expect core business revenue, which does not include SPL program-related revenue, to be flat to down 10% in 2025.
The first factor in the guidance reduction is about $1 5 million Npa's.
Give to our power plant.
Half of this is the result of inventory management and the previously mentioned customer and the other half is related to softness across other preclinical and clinical customers due to program consolidation.
Speaker #3: Representing approximately $29.5 to $32.5 million in 2025 revenue, compared to $32.5 million in 2024. This compares to our previous guidance range of 8 to 15 percent growth, or approximately 35 to 37 million.
Additionally, about $2 million of guidance reduction as it relates to licenses relative to our Powerpoint.
About a quarter of licenses impact was from our largest customer reorganizing manufacturing operations and about three fourths is related to other clinical customers consolidating programs are shutting down operations.
Speaker #3: Both ranges include approximately $2 million in revenue from secure DX, which we continue expect. The change of the guidance midpoint is $5 million, relative to our previous plan.
The remaining $1 5 million of the guidance cut is related to softness in instruments as customers remain hesitant with capital equipment purchases as.
Speaker #3: The first factor in guidance reduction is about $1.5 million in PAs, relative to our prior plan. Half of this is a result of inventory management at the previously mentioned customer, and the other half is related to softness across other preclinical and clinical customers due to program consolidation.
As we look forward, we have had detailed discussions with this customer and can confirm that this is not a movement away from our platform or changes in the outlook for their therapeutic we are working with the customer to determine the timing of future purchases as they continue to optimize our manufacturing network.
Speaker #3: Additionally, about $2 million of the guidance reduction is related to licenses, relative to our or plan. About a quarter of licenses' impact was from our largest customer reorganizing manufacturing operations, and about three-fourths is related to other clinical customers consolidating programs or shutting down operations.
While we are disappointed in the change in expectations for this year, we remain confident in the value proposition that <unk> offices, celgene therapy industry and.
And based on the current opportunities in the pipeline, we expect to return back to growth in 2026.
With such growth, including continued growth in Asia Pacific and increasing number of clinical programs utilizing our platform and the launch of a new platform. Later this year that we believe will add to our topline growth.
Speaker #3: The remaining $1.5 million of the guidance cut is related softness in instruments as customers remain hesitant with capital equipment purchases. As we look forward, we have had detailed discussions with this customer, and can confirm that this is not a movement away from our platform or changes in the outlook their therapeutic.
To cover our second quarter financial results and developments in more detail, we reported $8 5 million in total revenue, which includes our core revenue of $8 2 million and SPL program related revenue of <unk> 3 million, which was in line with our expectations.
Speaker #3: We are working with the customer to determine the timing of future purchases as they continue to optimize their manufacturing network. While we are disappointed in the change in expectations for this year, we remain confident in the value proposition that MAXCYTE ers to the cell and gene therapy ustry.
Within the core business instrument installed base grew to 814 as of June 30.
With instrument revenue of $2 1 million in the second quarter, which grew 22% year over year.
Speaker #3: And based on the current opportunities in the pipeline, we expect to return back to growth in 2026. With such growth including continued growth in Asia Pacific and increasing number of clinical programs utilizing our platform, and the launch of a new platform later this year that we believe will add to our top-line growth.
While the capital equipment spending environment has not fully recovered we are optimistic about the improved growth instrument sales license revenue was $2 $6 million, which was flat year over year.
Ta or processing assembly revenue increased 5% year over year stepping down slightly from recent quarters lie.
Speaker #3: To cover our second quarter financial results and developments in more detail, we reported $8.5 million in total revenue, which included core venue of $8.2 million and SPL program-related revenue of $0.3 million, which was in line with our expectations.
Licensing revenue were impacted by some customers consolidated programs.
Turning to desktop program related line revenue was $3 million in the quarter, representing revenue primarily from cash Chevy commercial royalties as we did not recognize any milestones during the quarter.
Speaker #3: Within the core business, instrument install-based grew to $814 as of June 30th. With instrument revenue of $2.1 million in the second quarter, which grew 22 percent year over year.
<unk> second quarter earnings call. They highlighted the positive momentum they have seen with cash Chevy worldwide with an acceleration in patient initiations sell collections and number of patients completing their treatment journey.
Speaker #3: While the capital equipment spending environment has not fully recovered, we are optimistic about the improved growth in instrument sales. License revenue was $2.6 million, which was flat year over year.
Vertex point to the progress they are making in 2025 as well as the growth cash heavy positions them for in 2026, and they have met the goal of authorized treatment centers, where atc's with more than say, 5% atc's activate globally.
Speaker #3: PA or processing assembly revenue increased 5 percent year over year, stepping down slightly from recent quarters. License and PA revenue were impacted by some customers consolidating programs.
We are encouraged by their continued investment in their ATC network to be able to support the launch of this critical product.
Speaker #3: Turning to the SPL program-related line, revenue was $0.3 million in the arter, representing revenue primarily from cash-heavy commercial royalties as we had not recognized any milestones during the quarter.
There are now 115 patients who have completed site collection.
With 29 patients now having completed their patient journey, which includes 16 in the second quarter equating to $30 million of revenue for the second quarter for vertex.
Speaker #3: During Vertex's second quarter earnings call, they highlighted the positive momentum they have seen with cash-heavy worldwide, with an acceleration in patient initiations, cell collections, and number of patients completing their treatment journey.
Additionally, 250 patients have now been referred by physicians to activate data centers to initiate treatment.
Speaker #3: Vertex pointed to the progress they are making in 2025, as well as the growth cash-heavy positions them for in 2026. They have met their goal of authorized treatment centers, or ATCs, with more than 75 ATCs activated globally.
Patient initiations and self collections continues to ramp vertex expects commensurate increases in infusions, but noted that because of the time you get infusions is predicated on patient scheduling choices. There may be revenue variability from quarter to quarter. We continue to believe that cash JV interest and demand remains very high around the globe and we are very excited by the truth.
Speaker #3: We are encouraged by their continued investment in their ATC network to be able to support the launch of this critical product. There are now 115 patients who have completed cell collection.
Transformative nature of the treatment.
Over the last week, we were excited to sign two new SPL agreements with <unk> bio and <unk>.
Speaker #3: With 29 patients now having completed their patient journey, which includes 16 in the second quarter, equating to $30 million in venue for the second quarter for Vertex.
Bringing our total number of <unk> 31.
As a buyer who is working to develop allogeneic gamma Delta T cell therapies for cancer and autoimmune diseases will utilize our extra platform to expand our manufacturing capabilities to include non viral gene adding delivery.
Speaker #3: Additionally, 250 patients have now been referred by physicians to activate treatment centers to initiate treatment. As patients' initiations and cell collections continue to ramp, Vertex expects commensurate increases in infusions.
We are also excited to be supporting a Nokia AAV.
Speaker #3: But noted that because of timing and infusions is predicated on patient scheduling choices, there may be revenue variability from quarter quarter. We continue to believe that cash-heavy interest and demand remains very high around the globe, and we are very excited by their truly transformative nature of the treatment.
T cell immunotherapy company developing a deep pipeline of T cell receptor engineered therapies or TCR.
<unk> platform will provide both companies with technical scientific and regulatory support as they advance their pipelines admissions forward we've.
We view these new SPL signings and our continued ability to grow instrument placements in a difficult environment is a testament to the resilience of our platform as a critical manufacturing tool for advanced therapies to.
Speaker #3: Over the last week, we were excited to sign two new SPL agreements with Addis Ababo and an OKAB. Bringing our total number of SPL agreements to 31.
Speaker #3: Addis Ababa, who is working to develop allogeneic gamma delta T cell therapies for cancer and autoimmune diseases, will utilize our expert platform to expand their manufacturing capabilities to include non-viral gene editing delivery.
Provide a better understanding of our hospital portfolio we have.
A new deck to our Investor Relations website, which we hope you will look through highlighting the Sps on our portfolio and their current clinical programs and progress.
Speaker #3: We are also excited to be supporting an OKAB. A T cell immunotherapy company developing a deep pipeline of T cell receptor engineered therapies or TCRs.
Our business model remains strong as we're continuing to sign new spl's that will provide value over the near mid and long term and our existing customer base continues to advance the respective research and clinical programs.
Speaker #3: MAXCYTE's form will provide both companies with technical, scientific, and regulatory support as they advance their pipelines and missions forward. We view these new SPL signings and our continued ability to grow instrument placements in a difficult environment as a testament to the resilience of our platform as a critical manufacturing tool for advanced therapies.
As it stands today 14 of our spell clients have active programs in the clinic.
While others are working on earlier programs.
We are supporting a totaled 18 active clinical programs, which is consistent with the beginning of the year given the dynamic environment. This year for clinical program shutdown, but for new programs into the clinic, which is a testament to our strong business model.
Speaker #3: To provide a better understanding of our SPL portfolio, we've added a new deck to our investor relations website, which we hope you will look through.
We expect that at times some of our hospital customers will rationalize programs, but our highly differentiated platform and unparalleled scientific support allows us to sign new spl's, thereby continually increasing number of clinical programs we support.
Speaker #3: Highlighting the SPLs in our portfolio and their current clinical programs and progress. Our business model remains strong as we're continuing to sign new SPLs that will provide value over the near, mid, and long term.
Speaker #3: And our existing customer base continues to advance their respective research and clinical programs. As it stands today, 14 of our L clients have active programs in the clinic.
So on the ATM program as a supportive also progressed further along in the clinic so far this year to.
To highlight the progress five of the current 18 clinical programs are set to enter pivotal studies in the next six to 18 months.
Speaker #3: While others are working on earlier programs. We are supporting a total of 18 active clinical programs which is consistent with the beginning of the year.
As I mentioned, while programs can fail or be slowed and de prioritize that is the nature of the industry and built into our business model. We continue to sign new Sps and have seen recent SPL signings result in new programs moving into clinical development.
Speaker #3: Given the dynamic environment this year, four clinical programs shut down, but four new programs entered the clinic which is a testament to our strong business model.
Speaker #3: We expect that at times some of our SPL customers will rationalize programs. However, our highly differentiated platform and unparalleled scientific support allow us to sign new SPLs, thereby continually increasing the number of clinical programs we support.
Since the IPO the number of <unk> agreements in active clinical programs supported has grown substantially and we've continued to see diversification of our clinical revenue compared to just a few years ago with trials across a vast number of RSP deals such as for blood cancer solid tumor genetic diseases neurodegenerative diseases and <unk>.
Speaker #3: Some of the 18 programs we support have also progressed further along in the clinic so far this year. To highlight the progress, five of the current 18 clinical programs are set to enter ysical studies in the next six to 18 months.
Immune diseases.
Our differentiated platform, leading support engineering, Knowhow and FDA Master file have positioned Mac site to continue to sign three to five <unk> a year for the foreseeable future.
Speaker #3: As I mentioned, while programs can fail or be slowed and deprioritized, that is the nature the industry and built into our business model. We continue to sign new SPLs and have seen recent SPL signings result in new programs moving into clinical development.
As we look beyond cash service the second wave of potential therapies coming to market <unk> supports five clinical programs are expected to enter pivotal studies in the next six to 18 months and it could be approved and launched in 2027 and 2028.
Speaker #3: Since the IPO, the number of MAXCYTE SPL agreements and active clinical programs supported has grown substantially. And we've continued to see diversification in our clinical revenue compared to just a few years ago.
Such approvals all provides participation in the economics in the form of royalties annual license fees and significant expansion of processing Assembly use.
Speaker #3: With trials across a vast number of our SPLs, such as for blood cancer, solid tumor, genetic diseases, neurodegenerative diseases, and autoimmune diseases. Our entiated platform, leading support, engineering know-how, and FDA master file have positioned MAXCYTE to continue to sign three to five SPLs a year for the foreseeable future.
Our ability to disclose and discuss these programs is limited by confidential agreements with our customers. However on slide eight of the new deck, we've detailed the five programs across Sps.
PFS CRISPR therapeutics, Roosian imaging caribou and one undisclosed spo that we believe could enter pivotal studies within this timeframe.
Speaker #3: As we look beyond cash-heavy to the second wave of potential therapies coming to market, MAXCYTE supports five clinical programs that are expected to enter pivotal studies in the next six to 18 months.
We also support 13 programs currently in phase, one, which we believe have potential approvals beyond 2008, and another 19 programs currently in preclinical development with launch potential in 2032 and beyond as you know not every program will make it to FDA approval. However, we capture value from our successful programs and programs that do not achieve their <unk>.
Speaker #3: And could be approved and launched in 2027 and 2028. Such approvals all provide us participation in the economics in the form of royalties, annual license fees, and significant expansion of processing assembly use.
Speaker #3: Our ability disclose and discuss these programs is limited by confidentiality agreements with our customers. However, on slide eight of the new deck, we've ailed the five programs across five SPLs.
Endpoints as we add Sps and our existing SPL as bring more programs to the clinic the opportunity set will continue to grow.
Turning to our cell and gene therapy services, formerly under subsidiary secured Dx, which we have now merged into Max site. We are pleased with the performance of the business. So far this year remaining on track to meet our annual revenue expectation and we are seeing good traction in booking projects.
Speaker #3: CRISPR Therapeutics, RUGEN, Immogene, Caribou, and one undisclosed SPL that we believe could enter pivotal studies within this timeframe. We also support 13 programs currently in phase one, which we believe have potential approvals beyond 2028.
Since the acquisition earlier this year, we have been successfully integrate new services in <unk>.
Speaker #3: And another 19 programs currently in preclinical development with launch potential in 2032 and beyond. As you know, not every program will make it to FDA approval.
The three assays available for security.
Screening nomination and confirmation are available to both ex vivo and in vivo therapy developers at different stages in development starting into discovery stage through preclinical development and IND, enabling studies.
Speaker #3: However, we capture value from both successful programs and programs that do not achieve their endpoints. As we add SPLs and our existing SPLs bring more programs to the clinic, the opportunity set will continue grow.
Secured Dx provides a robust and efficient on an off target assessment and decrease its time to clinic and approves likelihood of program success.
Speaker #3: Turning to our cell and gene erapy services, formerly under a subsidiary secure DX, which we have now merged into MAXCYTE, we are pleased with the performance of business so far this year.
And the evolving Celgene therapy industry safety has become increasingly important from a regulatory perspective.
Speaker #3: Remaining on track to meet our annual revenue expectation, and we are seeing good traction in booking projects. Since the acquisition earlier this year, we have been successfully integrating these services into MAXCYTE.
And Securities Gene heading risk assessment services aligned with regulatory guidance from the FDA and other agencies.
We have seen positive momentum in the adoption of secure technology and clinical studies for instance, one sika technology invented by secured Dx and guide seek a technology invented by mass General hospital and licensed exclusively to secure Dx. We're both using the gene editing risk assessments performed by Childrens Hospital, Philadelphia and 10 in the first of its kind personalized.
Speaker #3: The three assays available through secure DX, screening, nomination, and confirmation, are available to both ex vivo and in vivo therapy developers at different stages in development.
Speaker #3: Starting in the discovery stage through preclinical, development, and I&D enabling studies. Secure DX provides a bust and efficient on and off-target assessment and decreases time to clinic and improves likelihood of programs' success.
Gene editing therapy approved by regulators and administered to the infant KJ for a rare genetic disease, which has received national coverage. We believe that the opportunity for secured Dx is very large and not just in rare disease secured Dx offers both off target and off target analysis to support gene Knockouts and gene <unk> and advanced therapies.
Speaker #3: In the evolving cell and gene therapy industry, safety has become increasingly important from a regulatory perspective. And security's gene editing risk assessment services align with regulatory guidance from the FDA and other agencies.
Speaker #3: We've seen positive momentum in the adoption of Secure's technology and clinical studies. For instance, OneSeq, a technology invented by Secure DX and GuideSeq, a technology invented by Mass General Hospital and licensed exclusively to Secure DX, were both used in the gene editing risk assessments performed by Children's Hospital of adelphia and Penn in the first of its kind personalized gene editing therapy approved regulators and administered to the infant KJ for a rare genetic disease, which has received national coverage.
The assay support early development to IND filings for both <unk> and X fuel therapies, and we expect secures addressable market to be the entire field of modified Celgene therapies. We are very optimistic about the commercial uptake the secured Dx and believe that it has significant growth potential over the coming years. The sales pipeline. So far this year is more than twice as much.
As it was heading into 2025.
Despite what remains a challenging backdrop, the cell and gene therapy, we see vast potential for these therapies provide life changing treatments to patients challenged with disease, a belief that is shared across the industry landscape of regulators academics and drug developers.
Speaker #3: We believe that the opportunity Secure DX is very large and not just in rare disease. Secure DX offers both off-target and on-target analysis to support gene knockouts and gene insertions in advanced therapies.
We were encouraged by the cell and gene therapy Roundtable hosted by the FDA in June and subsequent commentary from leaders of Department of Health payment services in our view the message was clear it has become apparent the cell and gene therapy is a priority at the agency.
Speaker #3: The assay support early development to I&D filings for both in vivo and ex vivo therapies, and we expect Secure's addressable market to be the entire field of modified cell and gene therapies.
Speaker #3: We are very optimistic about the commercial opportunity for Secure DX and believe it has significant growth potential over the coming years. The sales pipeline so far this year is more than twice as much as it was heading into 2025.
They support increasing the focus on curative therapies, while moving away from managing costly chronic diseases.
They have committed to cell and gene therapy research and desire for payment reform and regulatory flexibility and they have emphasized the need to accelerate cell and gene therapy development timelines.
Speaker #3: Despite what remains a allenging backdrop in cell and gene therapy, we see vast potential for these therapies to provide life-changing treatments to patients, challenged disease.
Over the long term, we're sharing the belief that celgene therapies have the potential to cure disease and reduced associated costs and patient burden.
Speaker #3: A belief that is shared across the industry and landscape of regulators, academics, and drug developers. We were encouraged by the cell and ene therapy roundtable hosted by the FDA in June and subsequent commentary from leaders at the Department of Health and Human Services.
Mexico remains extremely well positioned to benefit for the growth of this industry over time.
Given the long term belief, we haven't in the industry, we continue to make disciplined investments to position the company for the future.
Speaker #3: In our view, the message was clear. It has become apparent that cell and gene therapy is a priority at the agency. They support increasing the focus on curative therapies, while moving away from managing costly chronic ases.
Our organic investments continued to be a new products and product enhancements, while our inorganic investment focus has been on solving critical pain points in the industry as seen with secured yes.
We are able to invest in our business given the strength of the balance sheet as well as our focus on driving growth with efficient and lean operations. Our management team is committed to carefully managing macs sites financial health and continually evaluating ways to run our business more efficiently without sacrificing growth investments with.
Speaker #3: They have committed to cell and gene therapy research and desire for payment reform and regulatory flexibility. And they have emphasized the need to development timelines.
Speaker #3: Over the long term, we share the belief that cell and gene erapies have the potential to cure disease and reduce associated costs and patient burden.
With our existing balance sheet, <unk> expects to achieve profitability without additional capital needs.
Speaker #3: MAXCYTE ins extremely well positioned to benefit from the growth of this industry over time. Given the long-term belief we have in the ustry, we continue to make disciplined investments to position the company for the future.
To wrap up our highlight though officially delisted from the markets on June 26, following our annual meeting of stockholders and are now solely listed on NASDAQ. We believe this was in the best interest of <unk> and our stakeholders. We are thankful to our UK shows for their continued support.
Speaker #3: Our organic investments continue to be a new products and product enhancements. While our inorganic investment focus has been on solving critical pain points in the ustry as seen with Secure DX.
Speaker #3: We are able to invest in our business given the strength of the balance sheet as well as our focus on driving growth with efficient and lean operations.
In summary, while I am disappointed with our operational headwinds that are customers that have resulted in a reduced finish outlook for 2025, we are working diligently to build a growing and profitable business and position <unk> for the future my focus of growing Mac side with multiple product offerings, while improving operational efficiencies to reduce our annual burn to put us on track towards.
Speaker #3: Our management team is committed to carefully managing MAXCYTE's cial health and continually evaluating ways to run our business more efficiently without sacrificing growth investments.
Speaker #3: With our existing balance sheet, MAXCYTE expects to achieve profitability without additional capital needs. To wrap up, I will highlight that we officially delisted from the aimed markets on June 26th, following our annual meeting stockholders and are now solely listed on NASDAQ.
Profitability remains solidly on track, we remain very optimistic and confident about Max size position in cell and gene therapy and over time, we believe maximize platforms and SPL business model will benefit from the growth of the industry with that I'll now turn the call over to Doug to discuss our financial results Doug.
Speaker #3: We believe this was in the best interest of MAXCYTE and our stakeholders. We are thankful to our UK shareholders for their continued support. In summary, while I am disappointed with the operational headwinds at our ustomers that have resulted in a uced financial outlook for 2025, we are working diligently to build a growing and profitable business and position MAXCYTE for the future.
Thank you Meyer total revenue in the second quarter of 2025 was $8 5 million compared to $10 4 million in the second quarter 2024, representing an 18% decline our milestone revenue remains lumpy from quarter to quarter, which can impact year over year comparisons in total reported revenue we reported core revenue of <unk>.
Speaker #3: My focus of growing MAXCYTE with multiple product offerings while improving operational efficiencies to reduce our annual burden to put us on track towards profitability remains solidly on track.
$8 2 million compared to $7 $6 million in the comparable prior year quarter, which represents growth of 8% year over year.
Speaker #3: We remain very optimistic and confident about MAXCYTE's in cell and gene therapy and over time we believe MAXCYTE's forms and SPL business model will benefit from the growth of the industry.
Within core revenue instrument revenue was $2 1 million compared to $1 8 million in the second quarter of 2020 for license revenue was $2 6 million compared to $2 6 million in the second quarter of 2024 and processing Assembly for PAA revenue was $3 1 million compared to $3 million in the second quarter of 2024.
Speaker #3: With that, I will now turn the call over to Doug to discuss our financial results. Doug?
Speaker #4: Thank you, Maher. Total revenue in the second quarter of 2025 was $8.5 million, compared to $10.4 million in the second quarter of 2024, representing an 18 percent decline.
<unk> revenue in the second quarter benefited from ordering patterns impacted by the uncertain tariff environment.
Speaker #4: Our milestone revenue remains lumpy from quarter to quarter, which can impact year over year comparisons and total reported revenue. We reported core revenue of $8.2 million compared to $7.6 million in the comparable prior year quarter, which represents growth of 8 percent year over year.
Service revenue, which includes secured Dx was 0.1 million in the second quarter.
Other revenue was <unk> 3 million compared to zero point $2 million in the second quarter of 2024.
Speaker #4: Within core revenue, instrument revenue was $2.1 million compared to $1.8 million in the second quarter of 2024. License revenue was $2.6 million compared to $2.6 million in second quarter of 2024.
Total secured Dx revenue was roughly 300000 as a portion of the revenue was in the licenses line during the quarter.
As discussed earlier, both license revenue Ampa revenue were negatively impacted in the second quarter of 2025 by customers consolidated programs. We were encouraged by the trend in instrument revenue, which returned to growth year over year.
Speaker #4: And processing assembly or PA revenue was $3.1 million compared to $3 million in the second quarter of 2024. PA revenue in the second quarter benefited from ordering patterns impacted by the uncertain tariff environment.
42% of our core revenue was derived from SPL customers in the second quarter of 2025, which compares to 51% in the comparable prior year quarter, we recognized zero point $3 million of SPL program related revenue in the second quarter of 2025 compared to $2 9 million in the second quarter of 2024 as mine.
Speaker #4: Assay service revenue, which includes Secure DX, was $0.1 million in the second quarter. Other revenue was $0.3 million compared to $0.2 million in the second quarter of 2024.
Speaker #4: Total Secure DX revenue was roughly $300,000 as a portion of the revenue was in the licenses line during the quarter. As discussed earlier, both license revenue and PA revenue were negatively impacted in the second quarter of 2025 by customers consolidating programs.
<unk> mentioned SPL program related revenue was almost entirely from cash JV commercial royalties as we did not recognize any milestones during the quarter.
Moving down the P&L gross margin was 82% in the second quarter of 2025 compared to 86% in the second quarter of the prior year, excluding inventory provisions and SPL program related revenue non-GAAP adjusted gross margin was 83% in the second quarter of 2025 compared to non-GAAP.
Speaker #4: We were encouraged by the trend in instrument revenue, which returned to growth year over year. 42 percent of our core revenue was derived from SPL customers in the second quarter 2025, which compares to 51 percent in the comparable prior year quarter.
Speaker #4: We recognized $0.3 million of SPL program-related revenue in the second quarter of 2025 compared to $2.9 million in the second quarter of 2024. As Maher mentioned, SPL program-related revenue was almost entirely from cash-heavy commercial royalties as we did not recognize any milestones during the quarter.
Adjusted gross margin of 82% in the second quarter of 2024.
Total operating expenses for the second quarter of 2025 were $21 2 million compared to $20 9 million in the second quarter of 2024.
Operating efficiency continues to be a focus for us and I want to highlight the operating expenses decreased for the first six months of 2025 compared to the first half of last year. Although this decrease was modest we were able to achieve this despite absorbing the cost structure of secured Dx as well as expenses related to the acquisition of the business expenses also.
Speaker #4: Moving down the P&L, gross margin was 82 percent in the second quarter of 2025 compared to 86 percent in the second quarter of the prior year.
Speaker #4: Including inventory provisions and SPL program-related revenue, non-GAAP adjusted gross margin was 83 percent in the second quarter of 2025 compared to non-GAAP adjusted gross margin of 82 percent in the second quarter of 2024.
So included investments in new product initiatives that we believe will begin paying dividends later this year and helped drive revenue growth in 2026.
Speaker #4: Total operating expenses for the second quarter of 2025 were $21.2 million compared to $20.9 million in the second quarter of 2024. Operating efficiency continues to be a focus for us, and I want to highlight that operating expenses decreased for the first six months of 2025 compared to the first half of last year.
We finished the second quarter with combined total cash equivalents and investments of $165 2 million and no debt a decrease from the beginning of the year includes approximately $7 million a purchase transaction and one time costs associated with the acquisition of secure Dx.
Speaker #4: Although this decrease was modest, we were able to achieve this despite absorbing the cost structure of Secure DX as well as expenses related to the acquisition of the business.
Continuing to our 2025 guidance.
As discussed in detail, we are updating our outlook and now expect core revenue of flat to a 10% decline compared to 2024 inclusive of revenue from secured Dx.
Speaker #4: Expenses also included investments in new product initiatives that we believe will begin paying dividends later this year and help drive revenue growth in 2026.
We continue to expect at least $2 million.
Full year revenue from secured Dx, we anticipate secured Dx revenue will be weighted towards the second half of 2025 and were comfortable with the revenue outlook for this business, which is supported by executed customer contracts.
Speaker #4: We finished the second quarter with a combined total of cash, equivalents, and investments of $165.2 million and no debt. The decrease from the beginning of the year includes approximately $7 million of purchase transaction and one-time costs associated with the acquisition of Secure DX.
Additionally, we are reiterating SPL program related revenue guidance, which is expected to be approximately $5 million in 2025, and which includes both expected revenue from pre commercial and commercial milestones and sales based royalties.
Speaker #4: Continuing to our 2025 guidance, as Maher discussed in detail, we are updating our outlook and now expect core revenue to be flat to...
We would like to note that our SPL program related revenue outlook is a risk adjusted forecast that is achievable under a variety of potential outcomes across our Sps and the planned clinical progress and commercial success of our customers.
Speaker #4: a 10 percent decline
Speaker #4: compared to
Speaker #4: Inclusive of revenue from Secure
Speaker #4: We continue to expect at least $2.
Speaker #4: million in full
Speaker #4: year revenue from Secure
Speaker #4: DX. We anticipate Secure DX revenue
Lastly, we now expect to end 2025, with approximately $155 million in cash equivalents and investments on our balance sheet. This updated guidance as a result of our lower revenue expectations.
Speaker #4: 2025 and we are comfortable
Speaker #4: customer
Speaker #4: contracts.
Speaker #4: Additionally, we are
<unk> continues to be in a healthy financial position and we remain committed to being disciplined in our spend and investments to drive long term growth for Mac site and its shareholders now I will turn the call back over to Mike here.
Speaker #4: is expected to be
Speaker #4: approximately $5 million
Speaker #4: And which includes both
Speaker #1: will be weighted towards the second.
Speaker #4: pre-commercial and commercial
Speaker #1: half of milestones and
Speaker #1: 2025, and we are comfortable
Speaker #1: with the revenue outlook for
Speaker #1: this business, which is that our SPL
Thank you, Doug, we firmly believe and maximizes value proposition within the cell and gene therapy industry.
Speaker #1: supported by executed program-related revenue outlook is a
Speaker #1: customer
Speaker #1: contracts.
Speaker #1: Additionally, we are ety of potential
Speaker #1: reiterating SPO outcomes across our
Look forward to continuing to support our customers as their programs progress with that I will turn the call back over to the operator for the Q&A operator.
Speaker #1: program-related revenue guidance, which SPLs and the planned
Speaker #1: is expected to be
Speaker #1: approximately 5 million commercial success of our in 2025. And
Speaker #1: which includes both
Speaker #1: expected revenue expect to end
Thank you at this time, we will conduct a question answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker #1: from pre-commercial and commercial
Speaker #1: milestones and approximately $155
Speaker #1: royalties. We would like to note that our SPO
Speaker #1: program-related revenue outlook is a
Speaker #1: risk-adjusted of our lower revenue forecast that is achievable under
Speaker #1: a variety of potential expectations.
Speaker #1: outcomes across our
Speaker #1: SPOs and the planned position and we remain
Please standby, while we compile the Q&A roster.
Speaker #1: clinical progress and commercial success of our
Speaker #1: customers. Lastly, we now
And our first question comes on line of Matt Larew of William Blair. Your line is now open.
Speaker #1: expect to end its
Speaker #1: 2025 with shareholders.
Speaker #1: approximately 155 Thank
Speaker #1: million in cash
Speaker #1: equivalents and investments on our
Speaker #1: balance sheet. This
Hi, good afternoon. Thanks for taking the question, maybe starting with <unk>.
Speaker #1: of our lower revenue
Speaker #1: expectations. MAXCYTE continues to be
<unk> manufacturing operations for your largest customer.
Speaker #1: in a healthy financial
Speaker #1: position, and we remain
Speaker #1: committed to being disciplined in our spend and
Sounds like that to give a little bit off guard and there would be helpful to know if this.
Speaker #1: investments to drive long-term
Speaker #1: growth for MAXCYTE and
Speaker #1: its
Speaker #1: shareholders. Now we'll turn the call back over session.
Exactly what your conversations with that customer have involved how long I guess do you expect this transition to occur and how much certainty versus.
Speaker #1: to Maher. To ask a question, you will need.
Speaker #2: Thank
Speaker #2: ou, Doug. We to press star one one
Speaker #2: firmly believe in MAXCYTE's value
Speaker #2: proposition within the Cell and Gene
Speaker #2: erapy industry. And announced.
Speaker #2: look forward to continuing to
Speaker #2: support our customers as their
Kind of capacity there is in terms of the bandwidth features there.
Speaker #2: With that, I will turn the call back over to the operator for the Q&A.
Okay, Matt. Thanks for the question, let me take that Doug feel free to add on so without giving too much detail to that customer as our largest customer we do have certainty as to where they are moving forward from here. This was just a short term consolidation of manufacturing it will have no impact to our future licensing revenue.
Speaker #2: Operator?
Speaker #3: Thank
Speaker #3: you. At this time, we'll conduct
Speaker #3: a question and answer session. As a reminder to ask the question, you will need
Speaker #3: press star 11 opened.
Speaker #3: on your telephone and wait for
Speaker #3: our name to be question.
Speaker #3: announced. To withdraw your
Speaker #3: question, please press star 11
Speaker #3: again. Please
Speaker #3: Q&A
Speaker #3: roster. And our
That customer.
This is a short term pocket that we saw with them that we have visibility we're always in constant dialogue with this customer. So we know what to expect going into the second half as well as into next year from this customer we will see and we have no reason to believe that there will be any more major changes that manufacturing operations at this point.
Speaker #3: first question comes online just exactly what your conversations
Speaker #3: of Matt Laru of William
Speaker #3: Blair, who has now
Speaker #3: opened.
Speaker #4: Hi, good afternoon.
Speaker #4: Thanks for taking the certainty versus,
Speaker #4: estion. Maybe starting with
Speaker #4: the reorg
Speaker #4: of manufacturing operations for your largest customer,
Speaker #4: little bit off
In fact.
Speaker #4: guard. I think it would be helpful to
Speaker #4: know you know So without giving, you know, too
Oh good.
Speaker #4: just exactly what your conversations details to that
Let me add we feel very confident there won't be any more major changes are manufactured from this customer.
Speaker #4: with that customer
Speaker #4: have involved, how
Speaker #4: long, I guess you expect
Speaker #4: this transition to are moving forward from
Speaker #4: occur, and how much here.
Okay logistics have been perhaps less instruments needed for less license revenue and less PAA ordering because they're going to work through inventory.
Speaker #4: you know kind of
Speaker #4: opacity there no impact to our
Speaker #4: is in terms of knowing what the future is
Speaker #4: there.
Speaker #2: Matt, thanks for the question. Let them. That we, and we have take that and Doug, visibility and we're always in feel free to add on.
Precisely on the short term thats exactly right, Matt Okay Alright.
Alright, great and then just.
Ending with the comments around Opex.
Speaker #2: We do have next year. From this certainty as to where they customer, we don't, we don't see and we, we have no reason to believe that there will be any more major changes to that manufacturing operations at this point.
Speaker #2: are moving forward from
Got it modestly quarter over quarter and flattish year over year.
Speaker #2: This was just a short-term consolidation of manufacturing; it will have no impact to our ure licensing revenue from that customer. This is a short-term pocket that we saw with them.
Can you just kind of think back the last several years here.
Our revenue is roughly flattish over the last several years, but obviously there's been a big.
Speaker #2: That we and we have visibility, and we're always in constant dialogue with this customer. So we know what to expect going into the second half, as well as into next year.
Take off and spend.
Just wondering relative to where the cash balances today and also again thinking about investing in future.
Speaker #2: From this customer, we don't see and we have no
Speaker #2: reason to believe that there
Speaker #2: will be any more major changes to
Yes, given the challenges you're facing there might be an opportunity to find additional efficiencies within the organization.
Speaker #2: that manufacturing operations because they're going to work through at this
Speaker #2: that. Okay.
Speaker #4: Maybe go
Speaker #4: ad.
Yes, Great question, Matt I mean, as I mentioned, obviously within our current capital.
Speaker #2: Let me add, we feel very
Speaker #2: confident there won't be any more ow, Doug's comments
Speaker #2: customer.
Stock, we're going to be part where our goal is to be possible within the foreseeable future and I still feel confident we're on track towards that there is always efficiencies with a look towards across organization and really how we how we go about with our growth projections.
Speaker #4: Okay. over quarter, and, and
Speaker #3: The gist of it being
Speaker #3: and less PA ordering because they're going to work through inventory?
Speaker #2: Precisely, on the here, short term. That's exactly right, Matt.
Speaker #4: And then just kind of ending
If you look at what Doug said, we're kind of proud of this we actually absorbed the expenses of secured Dx.
Speaker #4: with Doug's comments
Speaker #4: around just, just
Speaker #4: OPEX and modestly quarter
Still slightly modestly less on in terms of the Opex and where last year before we acquired security apps. So you can tell that the eyes of diligence that we have towards our operating company. We will continue to have the same diligence in ensuring that we're always looking at ways to get us to that path profitability and at the same time have outgrowth over the years.
Speaker #4: quarter and also again, thinking about investing for the
Speaker #4: flat-ish year over ure,
Speaker #4: year. You know, if you just kind of
Speaker #4: think back to the last several years
Speaker #4: here, portunity to find
Speaker #4: core additional
Speaker #4: revenue is roughly flat-ish over the
Speaker #4: last several years, organization.
Speaker #4: but obviously there's been a
Speaker #4: big you know mentioned, obviously
Speaker #4: pickup in spend
Speaker #4: and just capital, you, you know,
Speaker #4: wondering relative to where the cash
Doug Joanne I think it's about I think that's good.
Speaker #4: balance is today and the foreseeable future.
Speaker #4: also, again, thinking about investing for And I still feel confident we're on
Speaker #4: future, if given the
Thank you.
Speaker #4: challenges you're facing, there might be an
Thanks Pat.
Speaker #4: opportunity to find organization and really how
Speaker #4: additional we, how, how we go
Thank you one moment for our next question.
Speaker #4: efficiencies within the
Speaker #4: organization.
Speaker #2: Yeah, great Doug said, you know, we're kind of estion, Matt. I mean, as I ud of this. We actually absorbed the mentioned, obviously expenses of within our current Secure DX and capital you know we're still steadily stock, we're going to be modestly less in terms of our goal is to be profitable within the OPEX than we were last year before the foreseeable future.
And our next question comes from the line of Dan Arias of Stifel. Your lifestyle.
Yeah.
Hey, guys. This is drawn on for Dan Thanks for taking my questions.
Considering the updated guidance.
Statements made today on that.
Current business environment customer sentiment.
How should we contemplate quarterly cadence from <unk> to <unk> as we head into the back half of 2025.
Speaker #2: If you look at what and, and at the same Doug said, you know we're kind of time, have, have growth over the ud of this.
Speaker #2: We actually absorbed the expenses years. Doug, did you want to of SecureDX, and anything to that?
Speaker #2: we're still slightly No, I
Additional that you could call out.
Speaker #2: modestly less in terms of the OPEX than we were last year before
Thanks.
Speaker #2: we acquired
Speaker #2: SecureDX. So you can tell that the Yeah, thanks, Matt. eyes of diligence that we have
Sure in terms of the variability between Q3 and Q4, we do expect to be slightly weighted towards Q4, but not materially. So a slight wait to Q4 in terms of the midpoint of the revised range I think when we start looking at it up.
Speaker #2: towards how we're operating the Thank you.
Speaker #2: Company, we will continue to have that same eye of diligence and ensure that we're always looking at.
Speaker #2: ways to get us
Speaker #2: to that past from a line of Dan
Speaker #2: profitability and at the same time have growth over the
Speaker #2: years. Doug, did you want to Hey, guys.
Cases are down cases from that midpoint, I think it's going to be Q4 dependent.
Speaker #2: anything to that?
Speaker #5: I
Speaker #5: think that's good.
Speaker #5: Yeah.
Speaker #3: Thank
Speaker #3: ou. guidance and, your
Okay. Thank you.
Speaker #2: Yeah, thanks,
One more follow up on instrument that seems to be a bright spot in the business up 20% year over year can you set some light on like what you guys are hearing from Celgene therapy customers and how those conversations are going and also what youre expecting performance wise for the rest of the year from instrument sales. Thank.
Speaker #2: Matt. statements made today on
Speaker #3: Thank you. One moment for our
Speaker #3: xt environment, customer
Speaker #3: question. And our next question
Speaker #3: comes on the line of Dan 3Q to
Speaker #3: Arias of Q4, he lines 4Q as we head into the back half
Speaker #3: down.
Speaker #6: Hey, guys. This is Rohan on for Dan. Thanks for taking my question.
Speaker #6: questions. You know,
Speaker #6: considering the updated Q3 and Q4, we do
Sure. Let me just be sure, let me take that and Doug feel for that as well.
Speaker #6: guidance and your expect to be slightly
Speaker #6: statements made today on weighted towards
Speaker #6: the current business
Speaker #6: environment, customer materially.
As we mentioned in previous calls and obviously, we've seen some capex constraints and customers. However, we are seeing in the market more we're seeing more of our lower priced systems that we're able to sell into our customer base and as we speak with customers as well, we're starting to see those short term headwinds dissipate.
Speaker #6: sentiment, how should we
Speaker #6: contemplate quarterly
Speaker #6: cadence from ink when we start looking
Speaker #6: 3Q to at, at, at sort
Speaker #6: 4Q as we head into the back half
Speaker #6: of 2025? cases or down cases from that
Speaker #6: Anything additional that you could call
Speaker #6: out? Q4
Speaker #6: Thanks.
Speaker #2: In terms of the variability between Okay, thank you.
Speaker #2: Q3 and Q4, we do
Speaker #2: expect to be slightly
We had early in the year some concerns from customers on the NIH funding or I should say the funding.
Speaker #2: weighted towards right spot in the business up
Speaker #2: Q4, but not 22 percent year over year.
Speaker #2: materially. So a slight weight to You said some light on, like, what Q4 in terms of the
And we're starting to see that that kind of baseline from here.
Speaker #2: midpoint of the revised range, I you guys were hearing
Speaker #2: ink when we start looking
Speaker #2: at at at sort those conversations are
What we saw on the instrument side for first half obviously is a testament to our execution as well in this tough environment.
Speaker #2: of up up
Speaker #2: cases or down cases from that ecting
Speaker #2: midpoint, I think it's it's going to performance-wise for the rest of the
Speaker #2: Q4 year from,
As part of our it's part of our strategy of ensuring that we can get an earlier with customers as lots of sell a few more of our lower priced systems into our system and dug into Delta and we're really focused on making sure. We've got a global platform here revenue outside ex U S has been has been increasing part of things is there is definitely some variability in terms of where folks are in the cycle.
Speaker #6: Okay, thank you. And one more follow-up. You know, on instruments, that seems to
If you will.
So I think.
Ex U S, particularly Asia Pacific has been strong for us.
Alright, Thanks, guys I'll jump back in the queue.
Yes. Thank you.
Thank you one moment for our next question.
And our next question comes from the line of Brandon Smith of Cowen. Your line is now open.
Great. Thanks for taking the questions guys, maybe kind of just a follow up to a couple of things that have been discussed already here, but I guess just when.
Within your Sps in the partnerships there I guess, maybe more specifically the assets that are still advancing to the clinic.
Can you maybe give us a little bit of a sense like are some of those programs skewed towards some more traditional use cases for cell therapy that can be car T or I guess I guess I'm really just wondering like.
Where youre seeing some of your partners kind of drawing the line within their own pipeline does it thinking about prioritizing the respective programs.
Yeah, Great question actually if you look at the ones on the corporate deck that we updated there Brandon and I hope everyone looks at this if you look at we're seeing a lot more customers now go allogeneic as well so off the shelf is what we're seeing if you look at the ones that we can publicly disclose that as Christopher CTX, one as well and we hope to get data on later on in the second half of the year.
<unk> you have version with car T. Seven imaging in Asia cell Caribou CB <unk>. These are all generic <unk>.
B cell hematologic malignancies, we have one undisclosed program that we can't speak to whether it's I apologize for all generic but we are seeing more towards that shift of allogeneic therapies.
Which bodes very well for our system. If you look at the scale. We provide we are a highly differentiated from any system out there.
That's really the beauty of our models you can work with US early research and is easy to scale up into those larger larger platforms and what are you using a system that can transfer.
Up to 20 billion cells, you're using a Mac XI system with the support that we provide as well.
Okay got it thanks, that's very helpful.
Thank you for a moment for our next question.
Again as a reminder to ask a question you will need to press star one on your telephone.
And our next question comes from the line of Hannah Lee of Stephens. Your line is now open.
Hi, Thanks for taking the questions.
It sounds like <unk> revenue benefited from maybe a pull forward ahead of tariff during the quarter.
Could you frame up how large this benefit was and does that mean, you're expecting PAA revenue step down further next quarter.
So yes it was.
Single order from a distributor.
And we don't actually think that that's had a tremendous influence do you think of it as a pull through but we're seeing good order flow.
From those customers and I don't think that its something thats already built into the guide and we're not shipping any particular breakdown of the core revenue that's been guided to with respect to either up to what.
What the breakdown is between instruments and Pis, but I don't think thats going to have a material impact where it did impact. If you do if you look at the slide historical core business disclosures in the deck that we just posted the update of.
Core revenue generated by SPL clients adapt and really Thats two things one what is this reasonably reasonable order.
That was sort of tariff motivated to get ahead of those and then another was just a decline in expectations from a large customer I think if you take those out at 42% starts to creep back up into sort of the.
The low fifty's.
And consistent with where we expect to date in the business.
Great. Thanks, and then.
It seems like SPL customers were a little bit more insulated from some of these macro headwinds.
At least like what we talked about last quarter and <unk>.
Now that seems to have changed a little bit.
Is this more like focused on a few customers or are you seeing any impact to the STL pipeline given these headwinds.
Great question, no, we're not seeing an impact to the to the pipeline and in fact as you can tell obviously, we signed three so far this year I feel comparable ksi three to five each year for the foreseeable future. If anything some of those impacts were really short term we saw that one customer just go completely in vivo we saw.
One customer.
Shift focus from South Africa, and other modality, but overall, we have a very we have a very keen eye as to all of our scale customers on occasion, we're going to have one or two customers here and there ship focus but that's built into our model. That's why we said three to five per year. It builds it builds for US I mean, there's a reason why four programs went off but yes, we added four more so we saw that.
<unk> clinical programs using our system in the clinic.
Going into pivotal in the next six months to 18 months that all bode well for us in 2020 728 with potential approvals. So really I see this as these are the short term in nature, it's built into our business model. That's why we saw 3% to five we're going to have some drop off but we're going to have more come in and drop off and thats, what we built into the revised.
Guide contemplate some decrease in license revenue associated with a.
A couple of decisions, but the goal here and I think it's proved out is that we're going to have or SPL customers coming into the fold. While you will see a smaller number of customers that are rationalizing their programs or in some cases.
Trying to out license those programs and some of those have come back as a result, that's right and let me add a little bit more on this one so we've signed success sales last year. We saw three so far this year. Many of those will have programs going to the clinic a lot of these customers that we signed were preclinical we anticipate many of them going to the clinic in the near future.
Great. Thanks, I'll leave it there.
Yes, thanks, Kevin.
Thank you I'm showing no further questions at this time I'll now turn it back to <unk> for closing remarks.
Yes. Thank you operator, thank you everyone for joining us today and I look forward and we all look forward to speaking to you again, our next earning call in a few months.
Yeah.
Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Speaker #4: sales-based
Speaker #4: Royalties. We would like to note.
Speaker #4: risk-adjusted
Speaker #4: forecast that is achievable under a
Speaker #4: clinical progress and
Speaker #4: customers. Lastly, we now
Speaker #4: 2025 with
Speaker #4: million in cash equivalence and investments on our
Speaker #4: balance sheet. This updated guidance is a result
Speaker #4: MAXCYTE continues to be in a healthy financial
Speaker #4: committed to being disciplined in
Speaker #4: our spend and investments to drive long-term growth for MAXCYTE and
Speaker #4: Now we'll turn the call back over to Maher.
Speaker #3: you, Doug. We
Speaker #3: firmly believe in MAXCYTE's value
Speaker #3: proposition within the cell and gene
Speaker #3: erapy industry. updated guidance is a result I look forward to continuing to
Speaker #3: support our customers as their programs progress.
Speaker #3: With that, I will turn the call
Speaker #3: back over to the operator for the
Speaker #3: Q&A.
Speaker #3: Operator?
Speaker #5: Thank you. At this time, we'll conduct
Speaker #5: a question and answer
Speaker #5: As a reminder
Speaker #5: on your telephone and wait for
Speaker #5: our name to be
Speaker #5: To withdraw your question, please press star one one
Speaker #5: again. Please
Speaker #5: stand by while we compile the Q&A
Speaker #5: roster. And our first question comes online
Speaker #5: of Matt Leroux of William
Speaker #5: Blair, who has now
Speaker #6: Hi, good afternoon. Thanks for taking the
Speaker #6: Maybe starting with the reorg
Speaker #6: of manufacturing operations for
Speaker #6: your, your largest
Speaker #6: customer, sounds like that that took you
Speaker #6: a little bit off guard and it'll be helpful to know, you know,
Speaker #6: with that customer
Speaker #6: have involved, how
Speaker #6: long, I guess you expect this transition to occur, and, and how much
Speaker #6: you know, kind of,
Speaker #6: h, opacity there
Speaker #6: is, in terms of knowing what the future is
Speaker #6: there.
Speaker #2: Matt, thanks for the question. Let sounds like that took you take that, and Doug,
Speaker #2: el free to add on.
Speaker #2: customer, it is our largest
Speaker #2: customer. We do have
Speaker #2: certainty as to where they
Speaker #2: This was just a
Speaker #2: short-term consolidation of certainty versus manufacturing. It will have
Speaker #2: future licensing
Speaker #2: revenue from that customer. this is a short-term pocket that we saw with
Speaker #2: constant dialogue with this So without giving you know too customer. So we know what, much details to that what to expect going into the customer, it is our largest half as well as into customer.
Speaker #2: In fact, let me add to that.
Speaker #6: Maybe, oh, go ahead.
Speaker #2: Yeah. Let me add, we feel very confident there won't be any more major changes for manufacturing from this customer.
Speaker #6: Okay.
Speaker #5: The gist of it being
Speaker #5: perhaps less here.
Speaker #5: instruments needed to less
Speaker #5: license revenue
Speaker #5: and less PA ordering
Speaker #5: inventory?
Speaker #2: Precisely. On the short term. That's exactly right, point. In fact, let me add Matt.
Speaker #6: Okay, great. And then just,
Speaker #6: Okay,
Speaker #6: kind of ending with the, you
Speaker #6: OPEX, done modestly, quarter
Speaker #6: core Okay.
Speaker #6: revenue, Okay, is roughly flatish over the last several years,
Speaker #6: but obviously there's been a big, you know, pickup in, in great.
Speaker #6: spend and,
Speaker #6: Wondering relative to where the cash balance is today and...
Speaker #6: if given the
Speaker #6: challenges you're facing, there might be an
Speaker #6: efficiencies, within the
Speaker #2: Yeah, great question, Matt. I mean, as I
Speaker #2: within our current
Speaker #2: stock, we're, we're going to be pop, we're, our al is to be profitable within
Speaker #2: track towards that. There is always efficiencies we
Speaker #2: can look towards and, and across the
Speaker #2: About with, with our growth, you.
Speaker #2: ow, projections. if you look at what, what
Speaker #2: we acquired Secure And I still feel confident we're on DX. So you can tell that the track towards that. eyes of diligence that we have There is always efficiencies with towards how we're operating the a look towards and across the company, we will continue to have that organization and really how same eye of diligence and we how we go ensuring that we're always looking at about with our growth you ways to get us to ow that, that past profitability projections.
Speaker #4: ink that's good.
Speaker #6: Thank ou.
Speaker #5: One moment for our xt
Speaker #5: question. And our next question comes
Speaker #5: Arias of FIFO, you're lines
Speaker #5: now.
Speaker #7: This is Rohan on for Dan. Thanks for taking my
Speaker #7: estions.
Speaker #7: you know, considering the updated
Speaker #7: the, the current business
Speaker #7: sentiment, how should we contemplate quarterly cadence from,
Speaker #7: of 2025? Anything additional that you could call
Speaker #7: Thanks.
Speaker #2: Sure. In terms of the variability between.
Speaker #2: Q4. But not
Speaker #2: So a slight weight to Q4 in terms of the
Speaker #2: midpoint of the revised range, I
Speaker #2: of up, up
Speaker #2: midpoint, I think it's, it's going to
Speaker #2: dependent. Sure.
Speaker #7: And, one more follow-up. You know, on instruments, that seems...
Speaker #7: to be in our
Speaker #7: from, you know, your selling gene therapy customers and how
Speaker #7: going. And also what you're
Speaker #7: instrumentation
Speaker #7: sales. dependent. Thank you.