Q2 2025 Ginkgo Bioworks Holdings Inc Earnings Call

August 7, 2025

Daniel Marshall: I'm Daniel Marshall, Senior Manager of Communications and Ownership. I'm joined by Jason Kelly, our Co-Founder and CEO, and our new CFO, Steve Cohen. Thanks, as always, for joining us. We're looking forward to updating you on our progress. As a reminder, during the presentation today, we'll be making forward-looking statements which involve risks and uncertainties. Please refer to our filings with the SEC to learn more about these risks and uncertainties, including our most recent 10-K. Today, in addition to updating you on the quarter results, we're going to provide updates on our path towards adjusted EBITDA break-even and dive deeper into the new deals and launches in Ginkgo's tools businesses, which continue to establish themselves as critical tools in AI-powered bioengineering. As usual, we'll end with a Q&A session, and I'll take questions from analysts, investors, and the public.

Indications and ownership.

I'm joined by Jason Kelley, our co founder and CEO and our new CFO, Steve Cohen.

Thanks as always for joining us we're looking forward to updating you on our progress.

As a reminder, during the presentation today, we'll be making forward looking statements, which involve risks and uncertainties. Please refer to our filings with the SEC to learn more about these risks and uncertainties, including our most recent 10-K.

Daniel Marshall: Please refer to our filings with the SEC to learn more about these risks and uncertainties, including our most recent 10-K. Today, in addition to updating you on the quarter results, we're going to provide updates on our path towards adjusted EBITDA break-even and dive deeper into the new deals and launches in Ginkgo's tools businesses,

Today. In addition to updating you on our quarter results, we're going to provide updates on our path towards adjusted EBITDA breakeven and dive deeper into the new deals and launches and kinko's tools businesses, which continue to establish themselves as critical tools and AI powered bioengineering.

Daniel Marshall: Which continue to establish themselves as critical tools in AI-powered bioengineering. As usual, we'll end with a Q&A session, and I'll take questions from analysts, investors, and the public.You can submit those questions to us in advance via X, hashtag GinkgoResults, or email investors@ginkgobioworks.com. All right, over to you, Jason.

As usual, we'll end with a Q&A session and I will take questions from analysts investors and the public you can submit those questions to us in advance.

I'm, Daniel Marshall Senior manager of Communications and ownership I'm joined by Jason Kelley, Our co founder and CEO and our new CFO, Steve Cohen.

Daniel Marshall: You can submit those questions to us in advance via X, hashtag GinkgoResults, or email investors@ginkgobioworks.com. All right, over to you, Jason.

<unk> hashtag ginkgo results or email investors I can't go buy works Dot com.

Over to you Jason Alright, Thanks, Daniel.

As always for joining us we're looking forward to updating you on our progress.

We always start with our mission here again go it has to make biology easier to engineer our objectives are very similar to what you've heard from me over the last.

Jason Kelly: All right, thanks, Daniel. We always start with our mission here at Ginkgo, which is to make biology easier to engineer. Our objectives are very similar to what you've heard from me over the last few earnings calls. We're trying to reach Adjusted EBITDA by the end, breakeven by the end of 2026, while maintaining a cash margin of safety, and I'm gonna update on that in just a sec. We're cutting costs while serving our current customers, and then very importantly, we're expanding from an R&D solutions business into the life science tool space. And in the strategic section, you're gonna hear a lot about that from me today. Before I get to that, I do wanna touch on that maintaining a cash margin of safety and the cost cutting. So you can see our numbers here. For the quarter, really happy about this.

As a reminder, during the presentation today, we will be making forward looking statements, which involve risks and uncertainties. Please refer to our filings with the SEC to learn more about these risks and uncertainties, including our most recent 10-K.

<unk> earnings calls that we're trying to reach adjusted EBITDA by the end breakeven by the end of 2026.

While maintaining a cash margin of safety and I'm going to update on that and just to suck.

Today. In addition to updating you on our quarter results, we're going to provide updates on our path towards adjusted EBITDA breakeven and dive deeper into the new deals and launches and kinko's tools businesses, which continued to establish themselves as critical tools and AI powered bioengineering.

We're cutting costs, while serving our current customers and then very importantly, we're expanding from an R&D solutions business into the life science tool space in the strategic section Youre going to hear a lot about that for me today before I get to that I do want to touch on that maintaining a cash margin of safety in the cost cutting.

Jason Kelly: We're cutting costs while serving our current customers, and then very importantly, we're expanding from an R&D solutions business into the life science tool space. And in the strategic section, you're gonna hear a lot about that from me today. Before I get to that, I do wanna touch on that maintaining a cash margin of safety and the cost cutting. So you can see our numbers here. For the quarter, really happy about this.

As usual, we'll end with a Q&A session and I will take questions from analysts investors and the public you can submit those questions to us in advance via X hashtag ginkgo results or email investors I can't go buy works dotcom.

Our numbers here.

We're really happy about this.

Aiming and I told you this about a year ago to get to $250 million annual run rate cost savings by Q3 of this year a point 25, I'm happy to say, we hit that target a quarter. Early this was a tremendous amount of very painful work by the team at <unk>.

Jason Kelly: We've been aiming, and I told you this about a year ago, to get to a $250 million annual run rate cost savings, by Q3 of this year of 2025. I'm happy to say we hit that target a quarter early. This was a tremendous amount of very painful work, by the team at Ginkgo, and, and so I wanna say thank you to folks, and sort of congratulate them on that progress and getting there early. That that is very strategically important for us. So because the earlier we do it, as you can see, you know, we have $474 million, in cash and cash equivalents with no bank debt. And that's where that margin of safety comes from.

Alright, overdue, Jason Alright, Thanks, Daniel.

We always start with our mission here again go it has to make biology easier to engineer our objectives are very similar to what you heard from me over the last.

A few earnings calls that we're trying to reach adjusted EBITDA by the end breakeven by the end of 2026.

I say, thank you to folks on sort of congratulate them on that progress and getting there early.

That is very strategically important for us because the earlier, we do it as you can see we have $474 million in cash and cash equivalents with no bank debt.

While maintaining a cash margin of safety and I'm going to update on that and just to suck up.

Jason Kelly: That that is very strategically important for us. So because the earlier we do it, as you can see, you know, we have $474 million, in cash and cash equivalents with no bank debt. And that's where that margin of safety comes from.

That's where that margin of safety comes from having that large cash position. While also getting burn under control means that we don't get pushed into needing to raise any situation, we don't want to or from someone we don't want to we can be strategic about engaging with capital markets, which is really important and it also means we can start to take our focus.

Jason Kelly: Having that large cash position while also getting burn under control means that we don't get pushed into needing to, you know, raise in a situation we don't want to or from someone we don't want to. We can be strategic about engaging with capital markets, which is really important. Then it also means we can start to take our focus from just purely cost cutting to, which we are still going to be cutting costs, but from purely cost cutting to also just really how we wanna grow the business into 2026. And so you're gonna hear a bunch from me today on that in the strategic section. Before that, I do wanna hand it to Steve to go through the numbers. And I wanna say congratulations to Steve, our new CFO.

Before I get to that I do want to touch on that maintaining a cash margin of safety in the cost cutting so you see our numbers here for the quarter really happy about this we've been aiming and I told you. This about a year ago to get to $250 million annual run rate cost savings by Q3 of this year or a 0.5 I'm happy to say we hit that.

Jason Kelly: Then it also means we can start to take our focus from just purely cost cutting to, which we are still going to be cutting costs, but from purely cost cutting to also just really how we wanna grow the business into 2026. And so you're gonna hear a bunch from me today on that in the strategic section. Before that, I do wanna hand it to Steve to go through the numbers. And I wanna say congratulations to Steve, our new CFO.

From just purely cost cutting to which we are.

Still going to be better cost that from purely cost cutting to also just really how we want to grow the business into 2026, and so youre going here, but for me today on that in the strategic section before that I do want to hand, it to Steve to go through the numbers and I want to say congratulations to <unk>.

A quarter early this was a tremendous amount of very painful work by the team at Gingko, and so I Wanna say, thank you to folks I congratulate them on that progress and getting there early.

Steve.

<unk> CFO.

That is very strategically important for us because the earlier, we do it as you can see we have $474 million in cash and cash equivalents with no bank debt and that's where that margin of safety comes from having that large cash position. While also getting burn under control means that we don't get pushed into needing to raise.

We mentioned this when we announced it but he has been with the company over the last two years. He worked very closely with mark throughout that time, particularly over the last several months to really shadow and be a part of everything that Mark was doing and so we've made that transition super smooth and so really delighted we're very lucky to have Steve and the CFO.

Jason Kelly: We mentioned this when we announced it, but, you know, Steve's been with the company over the last two years. He worked very closely with Mark throughout that time, particularly over the last several months, to really shadow and be a part of everything that Mark was doing. And so it made that transition super smooth. And so really delighted. We're very lucky to have Steve in the CFO seat, and I'll pass it to him to go through the numbers.

In a situation, we don't want to or from someone we don't want to we can be strategic about engaging with capital markets, which is really important and it also means we can start to take our focus from just purely cost cutting.

And I'll pass it to him to go through the numbers, thanks, Jason I'll start up or so engineering business.

Steve Coen: Thanks, Jason. I'll start with the cell engineering business. Cell engineering revenue was $39 million in Q2 2025, up 8% compared to Q2 2024. In Q2 2025, we supported a total of 120 revenue-generating programs. This represents a 10% increase year-over-year. Turning to biosecurity, our biosecurity business generated $10 million of revenue in Q2 2025 at a segment gross margin of 18%. As a reminder, segment gross margin excludes stock-based compensation. Turning to the next slide, it is important to note that our net loss includes a number of non-cash, and other non-recurring items as detailed more fully in our financial statements. Because of these non-cash, and other non-recurring items, we believe Adjusted EBITDA is more indicative of our profitability.

So engineering revenue was $39 million in the second quarter of 2025.

<unk>, 8% compared to the second quarter of 2024 and.

We are still going to be better cost, but from purely cost cutting to also just really how we want to grow the business into 2026, and Sue Youre going here, but for me today on that in the strategic section before that I would want to hand, it to Steve to go through the numbers and I want to say congratulations to Steve our CFO we.

In the second quarter of 2025, we support a total of 120 revenue generating programs. This represents a 10% increase year over year.

Turning to Biosecurity.

Our security business generated $10 million of revenue in the second quarter of 2025 now the segment gross margin of 18% as a reminder segment gross margin excludes stock based compensation.

Steve Coen: As a reminder, segment gross margin excludes stock-based compensation. Turning to the next slide, it is important to note that our net loss includes a number of non-cash, and other non-recurring items as detailed more fully in our financial statements. Because of these non-cash, and other non-recurring items, we believe Adjusted EBITDA is more indicative of our profitability.

Turning to the next slide.

It is important to note that our net loss includes a number of noncash and other nonrecurring items as detailed more fully in a financial sense.

Because of these noncash and other nonrecurring items, we believe adjusted EBITDA is more indicative of our profitability.

And I'll pass it to him to go through the numbers, thanks, Jason I'll start up or so engineering business.

So engineering revenue was $39 million in the second quarter of 2025 eight.

Before.

Between segment operating loss adjusted EBITDA and GAAP loss on a GAAP net loss can be found in the appendix.

Steve Coen: A full reconciliation between segment operating loss, Adjusted EBITDA, and GAAP loss or GAAP net loss can be found in the appendix. Now that we've completed a year of restructuring, you can see the very substantial cost reductions and improvements in profitability compared to Q1 2024. In Q2 2025, Cell Engineering R&D expenses decreased 63% from $84 million in Q2 2024 to $31 million in Q2 2025. Cell Engineering G&A expense decreased 57% from $33 million in Q2 2024 to $14 million in Q2 2025. These decreases were all driven by our restructuring efforts. The significant improvement in Cell Engineering segment operating loss in Q2 2025 compared to the same prior year period was due to the previously discussed drivers of improved revenue and reduced operating expenses.

<unk>, 8% compared to the second quarter of 2024 and.

In the second quarter of 'twenty 'twenty five we support a total of 120 revenue generating programs. This represents a 10% increase year over year.

Now that we've completed a year of restructuring you can see the very substantial cost reductions and improvements in profitability compared to the first quarter of 2024.

Turning to Biosecurity.

Our security business generated $10 million of revenue in the second quarter of 2025 now the segment gross margin of 18% as a reminder segment gross margin excludes stock based compensation.

The second quarter of 2025 cell engineering, R&D expenses decreased 63% from $84 million.

Steve Coen: In Q2 2025, Cell Engineering R&D expenses decreased 63% from $84 million in Q2 2024 to $31 million in Q2 2025. Cell Engineering G&A expense decreased 57% from $33 million in Q2 2024 to $14 million in Q2 2025. These decreases were all driven by our restructuring efforts. The significant improvement in Cell Engineering segment operating loss in Q2 2025 compared to the same prior year period was due to the previously discussed drivers of improved revenue and reduced operating expenses.

Second quarter of 2000 $24 million to $31 million in the second quarter of 2025.

Turning to the next slide.

So engineering G&A expense decreased 57%.

It is important to note that our net loss includes a number of noncash and other nonrecurring items as detailed more fully in a financial sense.

From $33 million in the second quarter of 2000 $24 million to $14 million in the second quarter of 2005. These decreases were all driven by our restructuring efforts.

Because of these noncash and other nonrecurring items, we believe adjusted EBITDA is more indicative of our profitability.

The significant improvement in so engineering segment operating loss in the second quarter of 2020 compared to the same prior year period was due to the previously discussed drivers of improved revenue and reduced operating expenses.

If all reconciliation between segment operating loss adjusted EBITDA, and GAAP loss or GAAP net loss can be found in the appendix.

Now that we've completed a year of restructuring you can see the very substantial cost reductions and improvements in profitability compared to the first quarter of 2024.

Our security segment operating loss was impacted by the timing of programs in the second quarter.

Steve Coen: Biosecurity segment operating loss was impacted by the timing of programs in Q2. Moving further down the page, you'll note that total Adjusted EBITDA in Q2 2025 was -$28 million, which was improved from -$99 million in Q2 2024, a 72% improvement. We show Adjusted EBITDA at the segment level to show the relative profitability of each. The principal difference between segment operating loss and total Adjusted EBITDA in Q2 relates to the carrying cost of excess lease space, which you can see was $12 million in Q2 of this year. This cost represents the base rent and other charges relating to lease space, which we are not occupying, net of subleasing. This is a cash operating cost that is not related to driving revenue right now and can be potentially mitigated through subleasing.

Moving further down the page you'll note the total adjusted EBITDA in the second quarter of 2025 was negative $28 million, which was improved from negative $99 million in the second quarter of 2024, 72% improvement.

In the second quarter of 2025 cell engineering, R&D expenses decreased 63% from $84 million in the second quarter of 2000 $24 million to $31 million in the second quarter of 2010.

Font cell engineering G&A expense decreased 57% from.

Show adjusted EBITDA at the segment level to show the relative profitability of each.

<unk> from $33 million in the second quarter of 2000 $24 million to $14 million in the second quarter of 2025. These decreases were all driven by our restructuring efforts.

The principal difference between segment operating loss in total adjusted EBITDA in the second quarter relates to the carrying cost of excess lease space, which you can see was $12 million in the second quarter of this year. This cost represents the base rent and other charges relating to lease space, which we are not occupied.

Steve Coen: The principal difference between segment operating loss and total Adjusted EBITDA in Q2 relates to the carrying cost of excess lease space, which you can see was $12 million in Q2 of this year. This cost represents the base rent and other charges relating to lease space, which we are not occupying, net of subleasing. This is a cash operating cost that is not related to driving revenue right now and can be potentially mitigated through subleasing.

The significant improvement in so engineering segment operating loss in the second quarter of 2025 compared to the same prior year period was due to the previously discussed drivers of improved revenue and reduced operating expenses.

Net of Sublease, Inc.

This is a cash operating cost that is not related to driving revenue right now it can be potentially mitigated through sub leasing and.

Our security segment operating loss was impacted by the timing of programs in the second quarter.

And finally cash burn in the second quarter of 2025 was $38 million down.

Steve Coen: Finally, cash burn in Q2 2025 was $38 million, down from $110 million in Q2 2024. This significant decrease in cash burn was a direct result of the restructuring. Now turning to guidance. In terms of the outlook for the full year, we are reaffirming our total revenue guidance for 2025 totaling $167 to 187 million, with cell engineering revenue to be $117 to 137 million and biosecurity revenue expected to be at least $40 million. In conclusion, we're pleased with the substantial improvements in cash burn and cost reductions when looking back over the past year, where we achieved our targeted $250 million run rate cost takeout three months earlier than planned. In Q3, we will continue to execute against our core objectives while navigating continued uncertainty in the macro environment.

Down from $110 million in the second quarter of 2020 for this significant decrease in cash burn was a direct result of the restructuring.

Now turning to guidance and the terms of the outlook for the full year.

We show adjusted EBITDA at the segment level to show the relative profitability of each.

We are reaffirming our total revenue guidance for 2025 totaling $167 million to $187 million.

With cell engineering revenue to be $117 million to $137 million in bio security revenue expected to be at least $40 million.

In conclusion, we're pleased with the substantial improvements in cash burn and cost reductions, but looking back over the past year.

Steve Coen: In conclusion, we're pleased with the substantial improvements in cash burn and cost reductions when looking back over the past year, where we achieved our targeted $250 million run rate cost takeout three months earlier than planned. In Q3, we will continue to execute against our core objectives while navigating continued uncertainty in the macro environment. And with that, I'll hand it back to you, Jason.

Net of Sublease, Inc.

This is a cash operating cost that is not related to driving revenue right now it can be potentially mitigated through sub leasing and.

Where we achieved our targeted $250 million run rate cost takeout three months earlier than planned.

And finally cash burn in the second quarter of 2025 was $38 million down.

In the third quarter, we will continue to execute against our core objectives, while navigating continued uncertainty in the macro environment.

Down from $110 million in the second quarter of 2020 for this significant decrease in tariff Brown was a direct result of the restructuring.

With that I'll hand, it back to you Joseph.

Steve Coen: And with that, I'll hand it back to you, Jason.

Thanks, Steve the three topics, we're going to cover today and in the deep dive is one our continued restructuring and the cost takeout and then sections two and three I want to go through automation and data points at our newly launched reagent product, which are really our three big.

Now turning to guidance and the terms of the outlook for the full year.

Jason Kelly: Thanks, Steve. The three topics we're gonna cover today in the deep dive is one, our continued restructuring and the cost takeout. And then in sections two and three, I wanna go through automation, data points, and our newly launched reagent product, which are really our three big motions into the life science tool space. So really excited about this today. So okay, so let's dive in. So first, you know, I mentioned this already. I'm really excited to see these numbers. That $250 million cost reduction, getting that done ahead of schedule, is very strategically important for the company.

We are reaffirming our total revenue guidance for 2025 totaling $167 million to $187 million with cell engineering revenue to be $117 million to $137 million in bio security revenue expected to be at least $40 million.

Big motions into the life science tool space, So really excited about this today.

Jason Kelly: So really excited about this today. So okay, so let's dive in. So first, you know, I mentioned this already. I'm really excited to see these numbers. That $250 million cost reduction, getting that done ahead of schedule, is very strategically important for the company.

So let's dive in.

So first I mentioned this already I am really excited to see these numbers that $250 million cost reduction getting that done ahead of schedule is very strategically important for the company. So the whole reason we've been focusing on this and the team has been an absolutely enormous amount of work in pain around this as we wanted to be able to to do this notion of moving it.

In conclusion, we're pleased with the substantial improvements in cash burn and cost reductions when looking back over the past year.

Where we achieved our targeted $250 million run rate cost takeout three months earlier than planned.

Jason Kelly: So the whole reason we've been focusing on this and the team has put in an absolutely enormous amount of work and pain around this is we wanted to be able to do this motion of moving into the life science tool space with a margin of safety. In other words, with enough cash in the bank and no bank debt to allow us to not be forced to take money from people we don't want to or raise in circumstances where we weren't happy. And so having that large cash balance relative to our cash burn is really a critical piece of putting us in a good position when and if we engage with capital markets. And so, really happy that we're there on that.

In the third quarter, we will continue to execute against our core objectives, while navigating continued uncertainty in the macro environment and with that I'll hand, it back to you Joseph.

The life science tool space.

With a margin of safety in other words with enough cash in the bank and no bank debt to allow us to not be forced to take money for people, who don't want to or raise in circumstances, where we weren't happy and so having that large cash balance relative to our cash burn is really a critical piece.

Thanks, Steve the three topics, we're going to cover today and the deep dive is one our continued restructuring and the cost takeout.

Sections, two and three I want to go through automation and data points at our newly launched reagent product, which are really our three big.

Jason Kelly: And so having that large cash balance relative to our cash burn is really a critical piece of putting us in a good position when and if we engage with capital markets. And so, really happy that we're there on that.

US in a good position.

Why don't we engage with capital markets and so I'm really happy that we're there on that you can see here our burn rate.

Big motions into the life science tools space, So really excited about this today.

So let's dive in.

Jason Kelly: You know, you can see here our burn rates getting down to $28 million, if you go to the next slide, of Adjusted EBITDA for this quarter. So really, again, a testament to the team, and strategically important to Ginkgo. Okay. All right. So now I wanna talk a little bit about our Automation and Data Points offerings, and then we'll we'll talk at the end about reagents. So to give you some macro context, and I spoke about this before, but, you know, Ginkgo's business over the last decade has really been what we call solutions. So in other words, selling to the head of R&D of a large company or the CEO of a small or a midsize company and basically being an outsourced research team, Ginkgo scientists using Ginkgo tools to deliver them a research product. All right? That was the solutions business.

So first I mentioned this already I'm really excited to see these numbers that $250 million cost reduction getting that done ahead of schedule is very strategically important for the company and so the whole reason we've been focusing on this and the team has been an absolutely enormous amount of work in pain around this as we wanted to be able to to do this notion of moving it.

Getting down to $28 million. If you go to the next slide of adjusted EBITDA.

For this quarter, so really again, a testament to the team and strategically important to kimco.

Okay, Alright, so now I want to talk a little bit about our automation and data points offerings and then we'll talk at the end of about reagents.

To give you some macro context and I spoke about this before but.

The life science tool space.

<unk> business over the last decade has really been what we call solutions. So in other words selling to the head of R&D of a large company or the CEO of a smaller or mid sized company and basically being in outsourced research team ginkgo scientists using ginkgo tools to deliver them a research product alright.

Jason Kelly: So in other words, selling to the head of R&D of a large company or the CEO of a small or a midsize company and basically being an outsourced research team, Ginkgo scientists using Ginkgo tools to deliver them a research product. All right? That was the solutions business.

US in a good position.

When and if we engage with capital markets and so I'm really happy that we're there on that you can see here our burn rate.

The solutions business.

Last year about a year ago, alongside a restructuring a company we started to offer <unk> tools and services that we had previously had in house just for our scientist directly to the scientists at our customers and that has been going really really well and so again I want to give a little more context on that so if you go to the next slide you can see on the Y axis here.

Jason Kelly: Last year, about a year ago, alongside a restructuring in the company, we started to offer Ginkgo's tools and services that we had previously had in-house just for our scientists directly to the scientists at our customers. That has been going really, really well. And so, again, I wanna give a little more context on that. So if you go to the next slide, you can see, you know, on the Y-axis here, we have what I'll say is, like, our customization and technical risk we're taking for the customer. So when that is high, like it is in research solutions, in other words, we'll have a big milestone that we'll only get paid if we're technically successful. The customer is willing to give us downstream value share.

Getting down to $28 million. If you go to the next slide of adjusted EBITDA.

For this quarter, so really again, a testament to the team and strategically important to go.

Jason Kelly: That has been going really, really well. And so, again, I wanna give a little more context on that. So if you go to the next slide, you can see, you know, on the Y-axis here, we have what I'll say is, like, our customization and technical risk we're taking for the customer. So when that is high, like it is in research solutions, in other words, we'll have a big milestone that we'll only get paid if we're technically successful. The customer is willing to give us downstream value share.

Okay, Alright, so now I want to talk a little bit about our automation and data points offerings and then we'll talk at the end of about reagents.

We have what I'll say is like our customization.

To give you some macro context that I spoke about this before but.

And technical risks, we're taking for the customers. So when that is high like it is in our research solutions in other words, we don't have a big milestone that will only get paid if we're technically successful the customers.

Ginkgo business over the last decade has really been what we call solutions. So in other words selling to the head of R&D of a large company or the CEO of a smaller or mid sized company and basically being in outsourced research team ginkgo scientists using ginkgo tools to deliver them a research product alright.

Customers willing to give us downstream value share in other words, a share of the future value of their products either a royalty are success based milestones like that technical milestone I mentioned and so on that's really in exchange for the level of customization and reservoir, taking so as we go down that Y axis. We go to the right hand side of this chart.

Jason Kelly: In other words, a share of the future value of their products, either a royalty or success-based milestones like that technical milestone that I mentioned, and so on. That's really in exchange for the level of customization and risk we're taking. So as we go down that Y-axis, we go to the right-hand side of this chart where we're not able to get royalties and downstream value share. So that's a downside, okay? But the upside is we're selling something much more off the rack. In other words, a more standard, scalable product to the customer. And if you go to the next slide, you know, what we're seeing here is the solutions business has that big upside. It takes a while to get to it.

It was the solutions business.

Last year about a year ago [noise] alongside a restructuring in the company. We started to offer <unk> tools and services that we had previously had in house just for our scientist directly to the scientists at our customers and that has been going really really well and so again I want to give a little more context on that so if you go to the next slide you can see on the Y axis here.

Jason Kelly: So as we go down that Y-axis, we go to the right-hand side of this chart where we're not able to get royalties and downstream value share. So that's a downside, okay? But the upside is we're selling something much more off the rack. In other words, a more standard, scalable product to the customer. And if you go to the next slide, you know, what we're seeing here is the solutions business has that big upside. It takes a while to get to it.

Where we're not able to get royalties and downstream value share. So that's a downside okay, but the upside is we're selling something much more off the rack in other words, a more standard scalable product to the customer.

And if you go the next slide what we're seeing here is the solutions business has a big upside it takes a while to get to it. So I think there's a really nice complement here, where our tools offerings are able to give us near term revenue.

Are we.

We have what I'll say is like our customization.

Technical risk, we're taking for the customer so when that is high like it is in our research solutions in other words, we don't have a big milestone that will only get paid if we're technically successful.

Jason Kelly: So I think there's a really nice complement here where our tools offerings are able to give us near-term revenue, smaller batches, wider customer set, new, opening new markets. We're gonna talk about the reagents. This first kit is a $2,000 kit. Scientists can order it with a credit card, you know, so so that is really allowing us to have a faster cycle time, going to market. It's a good complement for the solutions business, and it's the right time to do it. All right. So I'm gonna jump in, and talk a little bit about our automation offering, and then we'll get to our data points, which is more of a traditional CRO, and then finally reagents. All right.

All are batches wider customer sat newmont opening new markets, we're going to talk about the reagents first Canada $2000 kit scientists can order it with a credit card.

Jason Kelly: This first kit is a $2,000 kit. Scientists can order it with a credit card, you know, so so that is really allowing us to have a faster cycle time, going to market. It's a good complement for the solutions business, and it's the right time to do it. All right. So I'm gonna jump in, and talk a little bit about our automation offering, and then we'll get to our data points, which is more of a traditional CRO, and then finally reagents. All right.

So that is really allowing us to have a faster cycle time going to market. It is a good complement for the solutions business and its the right time to do it.

Alright, so I'm going to jump in and talk a little bit about our automation offering and then we'll get to our data points, which is more of a traditional CRO and then finally reagents alright, so when I talk to customers about automation I like to show. This slide which is that ginkgo. In addition to selling automation has been a user and builder of automation over the last.

Jason Kelly: So when I talk to customers about automation, I like to show this slide, which is that, you know, Ginkgo, in addition to selling automation, has been a user and builder of automation over the last decade as we've been doing these solutions partnerships. And this is where that solutions business really complements life science tools. We're almost unique among life science tools vendors in really being primarily doing high-end science using our tools over the last decade, which means we have an enormous amount of familiarity with what's out there in the market, what works, and what doesn't. And we built a lot of our in-house tools to fill gaps in what we couldn't get from vendors on the market today, which is what makes our tools business so exciting.

Decade, as we've been doing these solutions partnerships and this is where that solutions business really complements life science tools, where almost unique among life science tools vendors in really being primarily.

Jason Kelly: We're almost unique among life science tools vendors in really being primarily doing high-end science using our tools over the last decade, which means we have an enormous amount of familiarity with what's out there in the market, what works, and what doesn't. And we built a lot of our in-house tools to fill gaps in what we couldn't get from vendors on the market today, which is what makes our tools business so exciting.

Doing high end science, using our tools over the last decade, which means we have an enormous amount of familiarity with what's out there in the market what works and what doesn't and we built a lot of our in house tools to fill gaps and what we couldn't get from vendors on the market today, which is what makes our tools business. So exciting because when we launch these things they're immediately step.

All are batches wider customer set new opening new markets, we're going to talk about the reagents first Canada $2000 kit scientists can order it with a credit card.

So that is really allowing us to have a faster cycle time going to market. It is a good complement for the solutions business and its the right time to do it.

Alright, so I'm going to jump in and talk a little bit about our automation offering and then we'll get to our data points, which is more traditional CRO and then finally reagents alright, so when I talk to customers about automation I like to show. This slide which is that ginkgo. In addition to selling automation has been a user and builder of automation over the last.

Jason Kelly: 'Cause when we launch these things, they're immediately stepping into a gap in the market because if it hadn't been a gap, we would have been buying it already from the life science tools companies. And so if you go to the next slide, you know, this is what, I think, is the core challenge if you look across the industry today. So when we talk to life science leaders, heads of R&D, and so on, the number one thing you're hearing is there's a demand for more output from the same R&D resources. And this is a combination of factors, sort of economic pressure in the industry, you know, over the last three or four years with interest rates up.

Going into a gap in the market because if it hadn't been a gap we would've been buying it already from the life science tools companies.

And so if you go to the next slide.

This is what I think is the core challenge if you look across the industry today. So when we talk to life science leaders heads of R&D and so on the number one thing you're hearing is there is a demand for.

Jason Kelly: So when we talk to life science leaders, heads of R&D, and so on, the number one thing you're hearing is there's a demand for more output from the same R&D resources. And this is a combination of factors, sort of economic pressure in the industry, you know, over the last three or four years with interest rates up.

For more output from the same R&D resources and this is a combination of factors sort of economic pressure in the industry.

Over the last three or four years with interest rates up but it's also competition from biotech companies in China, where youre seeing lower cost labor lower cost infrastructure and so on creating pressure on the research infrastructure here in the United States and in Europe and others.

Jason Kelly: But it's also competition from biotech companies in China where you're seeing lower-cost labor, sort of lower-cost infrastructure, and so on, creating pressure on the research infrastructure here in the United States and in Europe and others. And so how do you solve that problem? Well, part of the issue from my standpoint is the majority, the overwhelming majority, 95%+, of the research work done in the sciences and in commercial biotech and agriculture is done at the lab bench. And that picture on the left is basically what every lab bench looks like if you go into any one of these companies, right? So there's pipettes at the bench. You know, I did my PhD in bioengineering.

So how do you solve that problem well.

The issue from my standpoint is the majority of the overwhelming majority, 95% plus of the research work done in the sciences and in commercial biotech and agriculture is done at the lab bench and that picture on the left is basically what every lab bench looks like if you go into any one of these companies right. So theres pipettes at the bench I did my Phd in <unk>.

Jason Kelly: Well, part of the issue from my standpoint is the majority, the overwhelming majority, 95%+, of the research work done in the sciences and in commercial biotech and agriculture is done at the lab bench. And that picture on the left is basically what every lab bench looks like if you go into any one of these companies, right? So there's pipettes at the bench. You know, I did my PhD in bioengineering.

Okay.

If it hadn't been a gap, we would've been buying it already from the life science tools companies.

So if you go to the next slide.

What I think is the core challenge if you look across the industry today. So when we talk to life Science leader.

Okay.

The number one thing you're hearing it demands.

Nearing thats five years of picking up one of those bypass and moving liquids around working by hand at the bench buying things from the Thermo Fisher catalog reagents very it's very variable like you can do almost anything you want but you do it at low throughput.

Jason Kelly: That's five years of picking up one of those pipettes and moving liquids around, working by hand at the bench, buying things from the Thermo Fisher catalog, reagents. Very, it's very variable. Like, you can do almost anything you want, but you do it at low throughput. And as you do more of it, it does not get cheaper, right? It's not like making cars or making semiconductor chips, whereas you do more, the cost falls per unit. As you do more research, it's just as expensive as the last unit as you do more because it's being done by hand. So sort of the obvious thing, like, if you're a tech person, is like, "Well, let's just automate it," right? Like, if we automate it like semiconductors and automobiles, you'll get a much lower cost per unit operation in the lab.

Output from the same R&D resources and this is like.

Okay.

Sort of economic pressure in the industry.

Over the last three or four years with interest rates up but it's also competition from biotech companies in China, where youre seeing lower cost labor sort of lower cost infrastructure and so on creating pressure on the research infrastructure here in the United States and Europe and others.

And as you do more of it it does not get cheaper right. It's not like making cars are making semiconductor chips, whereas you do more of the cost falls per unit as you do more research. It is just as expensive as the last unit as you do more because it's being done by hand, so sort of the obvious thing like if you're a tech person is like well, it's just automated right like if we.

Jason Kelly: It's not like making cars or making semiconductor chips, whereas you do more, the cost falls per unit. As you do more research, it's just as expensive as the last unit as you do more because it's being done by hand. So sort of the obvious thing, like, if you're a tech person, is like, "Well, let's just automate it," right? Like, if we automate it like semiconductors and automobiles, you'll get a much lower cost per unit operation in the lab.

So how do you solve.

Okay.

Good morning.

95% plus of the research work done in the Sciences added commercial biotech and agriculture is done at the lab bench and that picture on the left is basically what every lab bench looks like if you go into any one of these right. So there's ipads at the bench I did my Phd in bioengineering Thats five years of picking up one of those bypass and moving.

<unk> like semiconductors in automobiles Youll get a much lower cost per unit operation in the lab.

And this is even more acute because youre seeing demand around AI for these large datasets.

Jason Kelly: This is even more acute because you're seeing demand around AI for these large data sets. And I'll point out, we are not the only ones thinking this way. Like, let's automate it, right? So, you know, President Trump put this out just last week, Winning the Race, America's AI Action Plan. And I would really recommend you read this document. It's great. It's very focused on the actual things to do in order to for the United States to make strategic choices in AI. And one of the categories is invest in AI-enabled science. And you should read the doc, but I'll just call out one specific part, where it says, you know, through NSF and DOE and so on, and other federal partners, there should be an investment in automated cloud-enabled labs. Okay?

And I'll point out we are not the only ones thinking this way like let's automate right. So.

President Trump put this out.

Woods around working by hand at the bench buying things from the Thermo Fisher catalog reagents very it's very variable like you can do almost anything you want but you do it at low throughput.

Last week, winning the race American AI action plan and I would really recommend you read this document it's great. It's very focused on the actual things to do.

Jason Kelly: It's great. It's very focused on the actual things to do in order to for the United States to make strategic choices in AI. And one of the categories is invest in AI-enabled science. And you should read the doc, but I'll just call out one specific part, where it says, you know, through NSF and DOE and so on, and other federal partners, there should be an investment in automated cloud-enabled labs. Okay?

And as you do more of it it does not get cheaper right. It's not like making cars are making semiconductor chips, whereas you do more of the cost falls per unit as you do more research.

In order to buy for the United States to make strategic choices in AI and one of the categories is invest in AI enabled science and you should read the Doc, but I'll just call out one specific part where it says through as often do and so on and other federal partners there should be an investment in automated cloud enabled labs.

As the last unit as you do more because it's being done by hand, so sort of the obvious thing like if you're a tech person is like well. It's just automated right like if we automated like semiconductors in automobiles youll get a much lower cost per unit operation in the lab.

Okay, and what Theyre, saying Theyre with cloud enabled is think like a data center right. When we say cloud computing, we think of a big data center that can do lots of different stuff in it and it is accessible and it gets cheaper with scale and improves the technology can we make the lab bench more like the datacenter cloud.

Jason Kelly: And what they're saying there with cloud-enabled is think like a data center, right? When we say cloud computing, we think of a big data center that can do lots of different stuff, and it's accessible and gets cheaper with scale and improves with technology. Can we make the lab bench more like the data center cloud? That's the provocation from this sort of AI Action Plan, and I think we can. And if you go to the next slide, I'll show you why it's been hard historically in the industry. So, on the Y-axis here, and this is gonna be my, like, automation nerd-out slide, so bear with me, so on the Y-axis here, is a term of art in automation called mix. Okay? So a low-mix environment is like an automobile plant, all right? You're making the same car over and over again.

And this is even more acute because youre seeing demand around AI for these large datasets.

And I'll point out we are not the only ones thinking this way like let's automate right. So.

President Trump put this out.

That's the provocation from this sort of action plan and I think we can.

Last week, winning the race American AI action plan and I would really recommend you read this document it's great. It's very focused on the actual things to do.

If you go to the next slide I'll show you why it's been part historically in the industry. So on the Y axis here and this is going to be might like.

Jason Kelly: And if you go to the next slide, I'll show you why it's been hard historically in the industry. So, on the Y-axis here, and this is gonna be my, like, automation nerd-out slide, so bear with me, so on the Y-axis here, is a term of art in automation called mix. Okay? So a low-mix environment is like an automobile plant, all right? You're making the same car over and over again.

In order to buy for the United States to make strategic choices in AI and one of the categories is the best in AI enabled science and you should read a dock, but I'll just call out one specific part where it says through as often do and so on and other federal partners there should be an investment in automated cloud enabled labs.

Automation nerd out slides, so bear with me so on the Y axis here is a term of art in automation called mix. Okay. So a low mix environment is like an automobile plant alright, you are making the same car over and over again, it's a low mix of output.

Jason Kelly: It's a low mix of output. A high mix of output is like a fine chef at a restaurant, all right? Lots of different orders coming in from the menu, variations. People are requesting all kinds of stuff. You have a common set of tools, but you use it in very different ways to produce different high mix of outputs. Okay. That chef is very analogous to the scientists at the lab bench today. Very analogous, all right? There's a common set of tools, common set of equipment on those benches. They're using their hands, and they're doing a very high mix of work. And they are very well served by Thermo Fisher, Danaher, and a long tail of equipment and reagent vendors over the last 50 years that are selling them all kinds of stuff to work at that bench, all right? It actually works pretty good.

High mix of output is like fine chefs at a restaurant alright lots of different orders coming in from the menu variations people are requesting all kinds of stop you have a common set of tools that you use it in very different ways to produce different high mix of outlets. Okay.

Okay, and what they are saying that with cloud enabled is things like a data center right. When we say cloud computing, we think of a big data center that can do lots of different stuff in it and it is accessible and gets cheaper with scale and improves the technology can we make the lab bench more like the datacenter cloud.

Chef is very analogous to the scientists at the lab is today very analogous alright. They have a common set of tools common set of equipment on those benches theyre using their hands and they're doing a very high mix of work and they are very well served by thermo Fisher Danaher and a long tail of equipment and reagent vendors over the last 50.

That's the provocation from this sort of action plan.

Jason Kelly: There's a common set of tools, common set of equipment on those benches. They're using their hands, and they're doing a very high mix of work. And they are very well served by Thermo Fisher, Danaher, and a long tail of equipment and reagent vendors over the last 50 years that are selling them all kinds of stuff to work at that bench, all right? It actually works pretty good.

We can.

If you go to the next slide I'll show you why it's been part historically in the industry. So on the Y axis here I'm, just going to be might like.

Automation nerd out slides, so bear with me so on the Y axis here is a term of art in automation called mix. Okay. So a low mix environment is like an automobile plant alright, youre, making the same car over and over again, it's a low mix of output.

Years that are selling them all kinds of stuff to work at that bench, alright actually works pretty good it just doesn't scale.

Jason Kelly: It just doesn't scale. Okay? It really does not get cheaper with scale. And that's what we're seeing with the increasing price for new drug discovered and everything else. All right. On the other hand, on the low-mix side, more like an auto plant and a high throughput on the X-axis, okay, we have what we call automation work cells. And I'll show you a picture of one in a second. But these are where automation has been used in life sciences today, things like high-throughput streaming and compound management, places where, you know, diagnostics where you're doing the same protocol over and over and over again. And there, automation does work great in the lab. And there's companies like Thermo Fisher and HighRes Biosolutions that'll sell you these customized work cells. The trouble is they just do those one or two protocols.

Okay. It really does not get cheaper with scale and that's what we're seeing with the increasing price per new drug discover and everything else alright on the other hand on the loan side more like an auto plants at a high throughput on the X axis. Okay. We have what we call automation work cells and I'll show you a picture of one in a second but these are where automation has been used and lifestyle.

High mix of output is like a fine chefs and our restaurant alright lots of different orders coming in from the menu variations people are requesting all kinds of stuff you have a common set of tools to use it in very different ways to produce different high mix of outlets. Okay.

Jason Kelly: And I'll show you a picture of one in a second. But these are where automation has been used in life sciences today, things like high-throughput streaming and compound management, places where, you know, diagnostics where you're doing the same protocol over and over and over again. And there, automation does work great in the lab. And there's companies like Thermo Fisher and HighRes Biosolutions that'll sell you these customized work cells. The trouble is they just do those one or two protocols.

The answers today things like high throughput screening and compound management places, where diagnostics, where youre doing the same protocol over and over and over again and.

And their automation does work great in the lab and there's companies like Thermo Fisher and high rise bio solutions that will sell you. These customized works out.

The trouble is they just do those one or two protocols. They don't have anywhere near the flexibility of the bench and so the question is can we get to high mix high throughput or at least like media mix medium throughput something thats closer to the bench, let's see the scale economics, alright, and Thats what were trying to achieve with ginkgo automation that we believe is possible.

The years that are selling them all kinds of stuff to work at that bench, alright actually were pretty good it's just nothing.

Jason Kelly: They don't have anywhere near the flexibility of the bench. And so the question is, can we get to high mix, high throughput, or at least, like, medium mix, medium throughput, something that's closer to the bench but sees a scale economic, all right? And that's what we're trying to achieve with Ginkgo Automation, and we believe is possible with our reconfigurable automation carts, our racks, and our software on top of them. And so I'm gonna talk a little bit more about that. So to give you some context, on this slide here, you can see a picture of, if you go to the next slide, a work cell. And so this is that traditional low-mix, high-throughput automation work cell. And this is actually one that we got built for Ginkgo, okay, right? And those two white towers in the middle are robotic arms.

Okay.

Okay. It really does not get cheaper with scale and that's what we're seeing with the increasing price for new drug discover and everything else alright on the other hand on the loan side more like an auto plants at a high throughput on the X axis. Okay. We have what we call automation work cells and I'll show you a picture of one in a second but these are where automation has been used in life Sciences.

With our Reconfigurable automation carts of racks in our software on top of them. So I'm going to talk a little bit more about that so to give you some context.

Jason Kelly: And so I'm gonna talk a little bit more about that. So to give you some context, on this slide here, you can see a picture of, if you go to the next slide, a work cell. And so this is that traditional low-mix, high-throughput automation work cell. And this is actually one that we got built for Ginkgo, okay, right? And those two white towers in the middle are robotic arms.

On the slide here, you can see a picture of the.

The next slide our work sell and so.

Things like high throughput screening and compound management places, where diagnostics, where youre doing the same protocol over and over and over again.

This is that traditional low mix high throughput automation works on this is actually one that we are built for Gail Okay, right and those two white towers in the middle or robotic arms. They can pick up a plate and move it to all of the various lab bench top lab equipment. That's jammed into that thing you can see everything kind of stuck in there and on top of each.

And their automation does work in the lab and there's companies like Thermo Fisher and high rise bio solutions that will sell you. These customized works out the trouble is they just do those one or two protocols. They don't have anywhere near the flexibility of the bench and so the question is can we get to high mix high throughput or at least like medium mix medium throughput.

Jason Kelly: They can pick up a plate and move it to all the various benchtop lab equipment that's jammed into that thing. You can see everything kind of stuck in there, on top of each other, and everything else. If it's not obvious, that is a very custom object, okay? It is not standardized. It is built just for you, all right? And it has a relatively low return on investment because the entire value of that work cell has to be justified by the one or two lab protocols that it's able to conduct, all right? And that means that, back to my comment earlier, 95% of the lab work is happening at the bench, and less than 5% is happening on work cells like this because it's only the most repeatable work that can justify that return on investment.

Other than everything else, if it's not obvious that it's a very custom object. Okay. It is not standardized and has built just for Ya alright, and it has a relatively low return on investment because the entire value of that work cell has to be justified by the one or two lab protocols that it's able to conduct.

Something that's closer to the bench, let's see the scale economics, alright, and Thats, what were trying to achieve with ginkgo automation and we believe as possible with our Reconfigurable automation carts are racks.

Jason Kelly: And it has a relatively low return on investment because the entire value of that work cell has to be justified by the one or two lab protocols that it's able to conduct, all right? And that means that, back to my comment earlier, 95% of the lab work is happening at the bench, and less than 5% is happening on work cells like this because it's only the most repeatable work that can justify that return on investment.

Alright, and that means that back to my comment earlier, 95% of the lab work is happening at the bench and less than 5% is happening on work cells like this because it's only the most repeatable work that can justify that return on investment.

Our software on top of them, so I'm going to talk a little bit more about that so to give you. Some context on the slide here you can see a picture of the <unk>.

Slide a work sell and so this is that traditional low mix high throughput automation works on this is actually one that we are built for gaming, okay, right and those two white towers in the middle a robotic arms. They can pick up a plate and move it to all the various lab bench top lab equipment, that's jammed into that thing you can see everything.

So if you go to the next slide this is our solution to that their reconfigurable automation carts. Alright. This is technology embedded at I didn't go we've been building this up over the last 10 years. There is a in this box basically is a piece of lab equipment, you can see in Orange centrifuge, there inside the box in the cart.

Jason Kelly: So if you go to the next slide, this is our solution to that, the reconfigurable automation cart, all right? This is technology invented at Ginkgo. We've been building this up over the last 10 years. There is, in this box, basically, a piece of lab equipment. You can see an orange centrifuge there inside the box in the cart. There's a robotic arm, and there's a piece of MagnaMotion track. And what this track does, it allows you to deliver a plate, a 96- or 384-well plate, to that robotic arm.

Stuck in there and on top of each other and everything else.

Obviously that is a very custom objects. Okay. It is not standardized and has built just for you alright, and it has a relatively low return on investment because the entire value of that work cell has to be justified by the one or two lab protocols that it's able to conduct.

Theres, a robotic arm and there is a piece of Magnum motion track and what this track does it allows you to deliver a plate a 96 or 384, well placed to that robotic arm the robotic arm picks up the plate.

Jason Kelly: The robotic arm picks up the plate, puts it onto the piece of lab equipment, and we have—I'll show you in a minute—now, 50+ lab equipment integrated, puts it on the equipment, and the software tells the equipment, "Run your experiment." When it's done, the arm picks up the plate and puts it onto the track. What's great about this is once that custom piece of equipment is inside this box and we integrate directly with the equipment to our software, it's now basically like a standard unit, all right? If you go to the next slide, you can see we can stitch these together. We put unit, unit, unit, and we've now connected three pieces of lab equipment all into one setup. We can move the plates among those equipment on that magnetic track.

Flips it onto their piece of lab equipment, and we have Australia minute now 50, plus lab equipment integrated puts it on the equipment and the software tells the equipment run your experiment and when it's done the arm picks up the plate and puts it onto the trial.

And what's great about this is once that custom piece of equipment is inside this box and we integrate directly with the equipment to our software. It's now basically like a standard units alright, and if you go to the next slide you can see we can stitch. These together, we put unit unit units and we've now connected three pieces of lab lab equipment.

Jason Kelly: What's great about this is once that custom piece of equipment is inside this box and we integrate directly with the equipment to our software, it's now basically like a standard unit, all right? If you go to the next slide, you can see we can stitch these together. We put unit, unit, unit, and we've now connected three pieces of lab equipment all into one setup. We can move the plates among those equipment on that magnetic track.

So maybe go to the next slide this is our solution to that the Reconfigurable automation carts alright. This is technology embedded at I didn't go we've been building this up over the last 10 years. There is a in this box basically is a piece of lab equipment, you can see in Orange centrifuge, there inside the box in the cart.

All into one set up and we can move the place among those equipment on that magnetic track and with the arms, we can deliver the samples to the equipment and it all just works if it's on that integrated setup and we have now like I said 50, plus pieces of equipment, they're not all shown here integrated into these setups and we're adding more every day, if a customer wants a new.

Theres, a robotic arm and there's a piece of Magnum Ocean track and what this track does it allows you to deliver a plate a 96 or 384, well placed to that robotic arm the robotic arm picks up the plate.

Jason Kelly: And with the arms, we can deliver the samples to the equipment. And it all just works if it's on that integrated setup. And we have now, you know, like I said, 50-plus pieces of equipment. They're not all shown here, integrated into these setups. And we're adding more every day. If a customer wants a new piece of bench equipment inside our setup, we do that at our cost, and then have it integrated in the future for future customers, okay? And you can put together many of these. This is a picture of our lab, if you go to the next slide, here in Boston. And again, unique among automation vendors, we use our own automation in a BSL-2 lab. So this is a 20-plus rack setup. And inside it, you have all these different pieces of equipment.

Flips it onto their piece of lab equipment, and we have I'll show in a minute now 50, plus lab equipment integrated puts it on the equipment and the software tells the equipment run your experiment and when it's done the arm picks up the plate and put it onto the trial.

<unk> piece of bench equipment inside our setup, we do that at our cost and then have an integrated in the future for future customers. Okay and you can put together. Many of these is a picture of our lab for you on the next slide here in Boston and again unique among automation vendors, we use our own automation and a BSL to lapses of 20 plus.

Jason Kelly: And you can put together many of these. This is a picture of our lab, if you go to the next slide, here in Boston. And again, unique among automation vendors, we use our own automation in a BSL-2 lab. So this is a 20-plus rack setup. And inside it, you have all these different pieces of equipment.

And what's great about this is once that custom piece of equipment is inside this box and we integrate directly with the equipment to our software. It's now basically like a standard units alright, and if you go to the next slide you can see we can stitch. These together, we put unit unit unit and we've now connected three pieces of lab lab equipment all.

Rack setup.

Inside a do you have all these separate pieces of equipment and you can again, Ron protocols that connect any piece of equipment to any other piece of equipment in that setup.

Jason Kelly: And you can, again, run protocols that connect any piece of equipment to any other piece of equipment in that setup. You go to the next slide. This modularity is really exciting. Customers are loving it. This is just us at a few vendor trade shows. I really like the picture up in the top right. Recursion had an event at J.P. Morgan. They invited us to come. And we actually set our rack system up. It was like a 5-part system in an afternoon and had it running for the cocktail party, all right? So the ability to quickly build the system and then, very importantly, expand the system is unique to our hardware. If you're building that, you know, kind of Rube Goldberg machine with the arms in the middle and everything else, that is a custom job that takes a long time to do.

Into one set up and we can move the place among those equipment on that magnetic track and with the arms, we can deliver the samples to the equipment and it all just works if it's on that integrated setup and we have now like I said 50, plus piece of equipment. They are not all shown here integrated into these setups and we're adding more every day, if a customer wants a new.

You go to the next slide.

Modularity is really exciting customers are loving it.

Also had a few vendor trade shows I really like the pick up in the top right.

<unk> had an event.

JP Morgan they invited us to come and we actually set our rack system up with like a five part system in an afternoon and had it running for the cocktail party alright, so the ability to quickly.

Jason Kelly: They invited us to come. And we actually set our rack system up. It was like a 5-part system in an afternoon and had it running for the cocktail party, all right? So the ability to quickly build the system and then, very importantly, expand the system is unique to our hardware. If you're building that, you know, kind of Rube Goldberg machine with the arms in the middle and everything else, that is a custom job that takes a long time to do.

Pizza bench equipment inside our setup, we do that at our cost and then have an integrated in the future for future customers and you can put together. Many of these is a picture of our lab for you on the next slide here in Boston and again unique among automation vendors, we use our own automation and a BSL to lapses as a 20 plus.

Build the system and then very importantly, expand the system is unique to our hardware if youre building that kind of route Goldberg machine with the arms in the middle and everything else that is a custom job.

It's a long time to do and it's again built one off for the customer with this we can really print these cards and allows customers to quickly scale their infrastructure.

Rack setup and inside a do you have all these separate pieces of equipment and you can again, Ron protocols that connect any piece of equipments to any other piece of equipment in that setup.

Jason Kelly: It's again built one-off for the customer. With this, we can really print these carts and allow customers to quickly scale their infrastructure. If you go to the next slide, we have a great existence proof of this, which is our setup that we've been using at Ginkgo to do research work for customers over the last several years. So you can see here, highlighted in blue, a number of pieces of equipment that were originally put on our setup for next-gen sequencing prep of samples, okay? And so having all those on that setup allows a sample to get prepared and go on to our sequencers. That was the original investment. That was the ROI. We were gonna do tons of next-gen sequencing, so that justified it. But then, very importantly, our scientists came along.

The next slide we have a great existence proof of this which is our setup that we've been using at gingko to do research works for customers over the last several years. So you can see here.

You go to the next slide this modularity is really exciting customers are loving it.

Also had a few vendor trade shows I really like the pick up in the top right.

Jason Kelly: So you can see here, highlighted in blue, a number of pieces of equipment that were originally put on our setup for next-gen sequencing prep of samples, okay? And so having all those on that setup allows a sample to get prepared and go on to our sequencers. That was the original investment. That was the ROI. We were gonna do tons of next-gen sequencing, so that justified it. But then, very importantly, our scientists came along.

Highlighted in Blue a number of pieces of equipment that were originally put on are set up for next gen sequencing prep of samples, okay, and so having all of those on that setup allows the sample to get prepared and go onto our Sequencers that was the original investments that was the ROI, we're going to do tons of next gen sequencing. So.

<unk> had an event.

JP Morgan they invited us to come and we actually set our rack system up with like a five part system.

An afternoon and had it running for the cocktail party alright, so the ability to quickly.

That justify that but then very importantly, our scientists came along and ask on the next slide they requested a protein quantification aspects of hybrid assay from a maybe I can make ultra Omega and they wanted to run this at high throughput instead of at the bench and so we developed a protocol that would be 7600 samples in six hours like a very high throughput.

Jason Kelly: If you go to the next slide, they requested a protein quantification assay. It's a hybrid assay made by a company called Promega. They wanted to run this at high throughput instead of at the bench. So we developed a protocol that would be, you know, 7,600 samples in six hours, like a very, you know, high throughput protocol. If you look, we wanted to now add this to the racks on the next slide; we were able to reuse the blue on here, our machines from the NGS protocol that are relevant to the hybrid protocol. So we don't need to buy those again. They're already on the setup. In fact, in order to add this hybrid protocol, we only had to add the PHERAstar.

It's a long time to do and it's again built one off for the customer with this we can really print these carts and allows customers to quickly scale their infrastructure.

The next slide we have a great existence proof of this which is our setup that we've been using at gingko to do research works for customers over the last several years. So you can see here.

And if you look and we wanted to now add this to the rack on the next slide we were able to re use now the blue on here are our machines from the Ngls protocol that are relevant to the hybrid protocol. So.

Jason Kelly: If you look, we wanted to now add this to the racks on the next slide; we were able to reuse the blue on here, our machines from the NGS protocol that are relevant to the hybrid protocol. So we don't need to buy those again. They're already on the setup. In fact, in order to add this hybrid protocol, we only had to add the PHERAstar.

Highlighted in Blue a number of pieces of equipment that were originally put on our setup for next gen sequencing prep of samples, okay, and so having all of those on that setup allows a sample to get prepared and go onto our sequencers that was the original investments that was the ROI, we're going to do tons of next gen sequencing. So.

So we don't need to buy those again, they're already on the setup in fact in order to add the hydro protocol, we only had to add the fairest are that one pink highlighted piece of equipment at the top was added in order to enable a whole new protocol. So that that's the ROI right like we had to just add one piece of equipment and all this existing investment in these things.

Jason Kelly: That one pink highlighted piece of equipment at the top was added in order to enable a whole new protocol. So that's the ROI, right? Like, we had to just add one piece of equipment. All this existing investment and these things, these work cells and things can cost $1 million plus when you make the one-off and you can't expand it. By adding just one cart to this, we're able to have it do a whole nother protocol. And then, importantly, as you add enough carts, it costs no more to do more protocols. It's just software changes because you have enough equipment in one big setup in order to make that possible. And this is, if you go to the next slide, what I'm really excited. I think this is the direction that the US government is headed with these cloud-enabled labs.

That justify that but then very importantly, our scientist came along and ask on the next slide they requested a protein quantification aspects of hybrid assay from a maybe I can make ultra Omega and they wanted to run this at high throughput instead of at the bench and so we developed a protocol that would be 7600 samples in six hours like a very high throughput Proto.

It works out and things can cost $1 million plus when you make the one off and you can't expand it by adding just one cart to this we're able to have it to a whole another protocol and then importantly, as you add enough carts.

Jason Kelly: And then, importantly, as you add enough carts, it costs no more to do more protocols. It's just software changes because you have enough equipment in one big setup in order to make that possible. And this is, if you go to the next slide, what I'm really excited. I think this is the direction that the US government is headed with these cloud-enabled labs.

No more to do more protocols. It's just software changes because you have enough equipment in one big setup in order to make that possible and this is if you go to next slide what I'm really excited I think this is the direction.

And if you look and we wanted to now add this to their acts on the next slide we were able to re use now the blue on here are our machines from the NGF protocol that are relevant to the hybrid protocol. So.

The U S government is headed with these cloud enabled labs. This is the direction that I think heads of R&D absolutely have to have on their radar, they're looking to reduce research cost which is to have many many many pieces of equipment. All in one big setup that can basically do whatever protocol you want in the future and this is a setup, we just announced a week ago that we had.

Jason Kelly: This is the direction that I think heads of R&D absolutely have to have on their radar if they're looking to reduce research costs, which is to have many, many, many pieces of equipment all in one big setup that can basically do whatever protocol you want in the future. This is a setup we just announced a week ago that we had nearly complete for Pacific Northwest National Labs. It's an 18-piece of equipment setup. And what's really amazing about this, if you go to the next slide, it is all of our, our sort of like, arms and tracks are inside of anaerobic chambers for this system. So this is an environment that humans can't go in, you know, it's air-free, and so it's really difficult. You see those, like, arm things.

So we don't need to buy those again, they're already on the setup in fact in order to add this hydro protocol, we only have to add the fera star that one pink highlighted piece of equipment at the top was added in order to enable a whole new protocol. So that that's the ROI right like we had to just add one piece of equipment and all of this existing investment in these things.

Nearly complete for Pacific Northwest National Labs, It's an 18 piece of equipment set up and what's really amazing about this if you go to the next slide it is all of our.

Jason Kelly: And what's really amazing about this, if you go to the next slide, it is all of our, our sort of like, arms and tracks are inside of anaerobic chambers for this system. So this is an environment that humans can't go in, you know, it's air-free, and so it's really difficult. You see those, like, arm things.

Sort of like <unk>.

Arms and tracks our inside of <unk>.

Anaerobic chambers for this system. So is there an environment that humans can't go in.

Costs no more to do more protocols. It's just software changes because you have enough equipment in one big set up in order to make that possible and this is if you go to the next slide what I'm really excited I think this is the direction that the U S. Government is headed with these cloud enabled labs. This is the direction that I think heads of R&D absolutely have to have on their radar theyre looking to.

Are free so it's really difficult youll see those like arm things normally people are doing experiments with their hands in glove box. It doesn't all this crazy stuff. Instead here those arms are really just to service the equipment that you see on this setup and all the samples that are going to move them on the equipment are going to run through our automation.

Jason Kelly: Normally, people are doing experiments with their hands in glove boxes and all this crazy stuff. Instead, here, those arms are really just to service the equipment that you see on this setup. And all the samples that are gonna move among the equipment are gonna run through our automation. And if you go to the next slide, we believe this is the largest automated anaerobic system in the world now. Really excited about the Department of Energy investing in this. I think this is exactly what the president's looking for, in the next slide, in these sort of Cloud-Enabled Labs initiatives. And so I think you will see more of this. I'm really excited about this. I think Ginkgo's technology is perfect for this.

The next slide we believe this is the largest automated anaerobic system in the world now are really excited about department of energy investing and this I think is exactly.

Reduced research cost, which is to have many many many pieces of equipment. All in one big setup that can basically do whatever protocol you want in the future and this is a setup, we just announced a week ago that we had.

Jason Kelly: And if you go to the next slide, we believe this is the largest automated anaerobic system in the world now. Really excited about the Department of Energy investing in this. I think this is exactly what the president's looking for, in the next slide, in these sort of Cloud-Enabled Labs initiatives. And so I think you will see more of this. I'm really excited about this. I think Ginkgo's technology is perfect for this.

What the President's looking for and they are in the next slide in there.

<unk> enabled labs initiatives and so I think you will see more of that really excited about this I think <unk> technology is perfect for this and by the way I think 18 instruments in one set up is going to be looked at as small in the future really we should have 100 200 instruments. All in one day setup that allows you to ultimately submit protocols to do.

Nearly complete for Pacific Northwest National Labs, It's an 18 piece of equipment set up and what's really amazing about this if you go to the next slide it is all of our.

Jason Kelly: And by the way, I think 18 instruments in one setup is gonna be looked at as small in the future. Really, we should have 100, 200 instruments all in one big setup, that allows you to ultimately submit protocols to do anything you could do at the bench. And that ultimately you know, we're not there yet. There's a lot of technology between here and there. But that's really the dream here, is to be able to have that same level of flexibility or something near it, but with the scale economics of automation. And that is absolutely essential, if we're going to have AI-enabled science, without question. It's just not gonna happen at the lab bench. All right. One more thing on this.

Sort of like.

Harms and tracks our inside of.

Anaerobic chambers for this system. So it is an environment that humans can't go in.

Anything you could do at the bench.

Are free so it's really difficult youll see those like arm things normally people are doing experiments with their hands in glove box. It doesn't all this crazy stuff. Instead here those arms are really just to service the equipment that you see on this setup and all the samples that are going to move among the equipment are going to run through our automation.

And that ultimately we're not there yet there is that theres a lot of technology between here and there, but that's really the dream here is to be able to have that same level of flexibility or something near it but with the scale economic of automation and that is absolutely essential.

Jason Kelly: There's a lot of technology between here and there. But that's really the dream here, is to be able to have that same level of flexibility or something near it, but with the scale economics of automation. And that is absolutely essential, if we're going to have AI-enabled science, without question. It's just not gonna happen at the lab bench. All right. One more thing on this.

We're going to have AI enabled science without question, it's just not going to happen on the lab bench.

The next slide we believe this is the largest automated anaerobic system in the World now are really excited about department of energy investing and this I think it's exactly.

Right.

More thing on the software side I'm, not gonna be able to dig in today, but I'm excited to tell you more about it in the future I will just say for customers that are tuning in ink has been doing lab in the loop AI enabled science, having reasoning models interacting with this robotics really really cool stuff, we'd love to share with you and we have a whole bulk.

Jason Kelly: The software side, I'm not gonna be able to dig in today, but I'm excited to tell you more about it in the future. I will just say, for customers that are tuning in, Ginkgo's been doing Lab-in-the-Loop AI-enabled science, having reasoning models, interacting with this robotics, really, really cool stuff. We'd love to share it with you. And we have the whole both the obviously, the hardware I spoke a lot about today, but importantly, the software stack, the modern APIs, cloud-based software, everything, that makes that all really feasible, you know, MCP servers accessing all these equipment. So if you're really, you know, ahead of AI, looking to bring, that into your biotech company, you should give us a call both for the hardware, and the software layer. Okay? So that's as much as I want to say about automation.

With the present is looking for and they are in the next slide in there is it sort of cloud enabled labs initiatives and so I think you will see more of that is really excited about this I think ginkgo technology is perfect for this and by the way.

I think 18 instrument sets it up is going to be looked at as small in the future really we should have a 100 200 instruments. All in one day setup that allows you to ultimately submit protocols to do anything you could do at the bench.

Jason Kelly: And we have the whole both the obviously, the hardware I spoke a lot about today, but importantly, the software stack, the modern APIs, cloud-based software, everything, that makes that all really feasible, you know, MCP servers accessing all these equipment. So if you're really, you know, ahead of AI, looking to bring, that into your biotech company, you should give us a call both for the hardware, and the software layer. Okay? So that's as much as I want to say about automation.

Obviously, the hardware I spoke a lot about today, but importantly, the software stack. The modern API is a cloud based software everything that makes that all really feasible.

MCP servers accessing all of these equipment. So if you're really head of AI looking to bring that into your biotech company you should give us a call both for the hardware and the software layer.

Okay. So as much as I want to say about automation, but I really see that as being extremely strategic for ginkgo going into 2026 and as we've gotten our costs were under control you're going to hear me go more in this direction right, it's going be more about what can we invest in for growth in the future.

Jason Kelly: But I really see that as being extremely strategic for Ginkgo, going into 2026. As we've gotten our costs more under control, you're gonna hear me go more in this direction, right? It's gonna be more about, what can we invest in for growth in the future? And one of those big areas is going to be automation and AI. All right. Beyond that, I wanna talk about our push into the CRO services market. We call this Ginkgo Data Points. We have a number of different services now: perturbation response profiling, specialized high throughput screening, antibody developability, which I've talked about before. But we're just launched our small molecule developability, or our ADME service. And, you know, you can do, you know, lots of different things with these services. They are available. Just to be clear, there's no royalty. There's no milestone.

Going to have AI enabled science without question, it's just not going to happen on the lab bench.

Right.

Sure thing on this the software side I'm, not going to able to dig in today, but I am excited to tell you more about it in the future I will just say for customers that are tuning in Google has been doing lab in the loop AI enabled science, having reasoning models interacting with this robotics really really cool stuff, we'd love to share with you and we have a whole bulk obviously the hardware I spoke a lot about today, but it.

And one of those big areas is going to be automation and AI.

Alright beyond that I want to talk about our push into the CRO services market, we call those ginkgo data points, we have a number of different services now perturbation response profiling specialized high throughput screening antibody develop ability, which I've talked about before but we just launched our small molecule develop ability of our AD based service.

Jason Kelly: All right. Beyond that, I wanna talk about our push into the CRO services market. We call this Ginkgo Data Points. We have a number of different services now: perturbation response profiling, specialized high throughput screening, antibody developability, which I've talked about before. But we're just launched our small molecule developability, or our ADME service. And, you know, you can do, you know, lots of different things with these services. They are available. Just to be clear, there's no royalty. There's no milestone.

The software stack the modern API is a cloud based software everything that makes that all really feasible.

MCT servers accessing all of these equipments, so if you're really head of AI looking to bring that into your biotech company you should give us a call both for the hardware and the software layer.

And you can do lots of different things with the services. They are available just to be clear. There is no royalty theres no milestone, it's just like engaging with us CRO like Wuxi.

Jason Kelly: It's just like engaging with a CRO, like a WuXi, or whoever, fee-for-service basis. You own all the IP, and data as the customer. But we're able to do this at very large scale because of our automation expertise. And so one of the things I'm really excited about, we announced this in the press release of the ADME service, is if you have a quote, from another vendor in the CRO space, like, for example, you know, a Chinese vendor, and you wanna onshore that back here to the United States, just send us the quote. We're happy to meet it. And that goes for ADME. But generally, you should send us the quote anyway. We're happy to see it across any of our services, and meet vendors. And so, please do keep that in mind if you're looking at Data Points.

Or whoever fee for service basis, you own all of the IP and data as a customer, but we're able to do this at very large scale because of our automation expertise and so one of the things I'm really excited about we announced this in the press release of the Omni service is if you have a quote from another vendor in the aerospace like for example, Chinese vendor and.

Okay. So as much as I want to say about automation, but I really see that as being extremely strategic for ginkgo going into 2026 and as we've gotten our costs were under control you're going to hear me go more in this direction right, it's going to be more about what can we invest in for growth in the future.

Jason Kelly: And so one of the things I'm really excited about, we announced this in the press release of the ADME service, is if you have a quote, from another vendor in the CRO space, like, for example, you know, a Chinese vendor, and you wanna onshore that back here to the United States, just send us the quote. We're happy to meet it. And that goes for ADME. But generally, you should send us the quote anyway. We're happy to see it across any of our services, and meet vendors. And so, please do keep that in mind if you're looking at Data Points.

And one of those big areas is going to be automation and AI.

Alright beyond that I want to talk about our push into the CRO services market, we called him stinker of data points, we have a number of different services now perturbation response profiling specialized high throughput screening antibody develop ability, which I've talked about before but we just launched our small molecule develop ability of our AD based service.

You want to onshore that back here to the United States, just said as well we're happy to meet it.

It goes for Ami, but generally as you said, it's the quote anyway, we're happy to see it across any of our services.

Vendors. So please keep that in mind, if you're looking at data points.

This is why I am excited about data points in the long run I think it is exciting to go after the traditional CRM market I think there is good business there.

And you can do lots of different things with these services. They are available just to be clear. There is no royalty theres no milestone, it's just like engaging with us euro like a wuxi or whoever fee for service basis, you own the IP and data as a customer, but we're able to do this at very large scale because of our automation expertise and so.

Jason Kelly: This is why I'm excited about Data Points in the long run. I think it is exciting to go after the traditional CRO market. I think there's good business there. It's also not that high throughput. You know, a lot of what places like Wuxi have done is basically gotten cheaper hands at the bench and then offer that as a service. So, like, that buys us, you know, whatever 40% cost reduction on the big problem of reducing R&D and getting scalability. But then it kinda runs out because it's just not getting cheaper. I think across the board, if we wanna get cheaper, the answer is automation. And so, Ginkgo's been doing this work, really in an automated fashion. And that allows some unique offerings to customers. So, I'll just highlight this funnel here where this is traditional drug discovery. You're gonna identify a target.

It's also not that high throughput.

Lot of led places like Wuxi have done is basically gotten cheaper hands at the bench and then offer that as a service so like that buys us.

Jason Kelly: So, like, that buys us, you know, whatever 40% cost reduction on the big problem of reducing R&D and getting scalability. But then it kinda runs out because it's just not getting cheaper. I think across the board, if we wanna get cheaper, the answer is automation. And so, Ginkgo's been doing this work, really in an automated fashion. And that allows some unique offerings to customers. So, I'll just highlight this funnel here where this is traditional drug discovery. You're gonna identify a target.

40% cost reduction on the big problem of reducing R&D in getting scalability, but then it kind of runs out because it's just not getting cheaper.

One of the things I'm really excited about we announced this in the press release of the <unk> service is if you have a quote from another vendor in the CRM space like for example, Chinese vendor and you want to onshore that back here in the United States just send us the quote we're happy to meet it.

Think across the board if we want to get cheaper the answer is automation and so <unk> been doing this work really in an automated fashion and that allows some unique offerings to customers. So I'll just highlight this funnel here, where this is traditional drug discovery youre going to identify its targets then youre going to run some high throughput screen, maybe on a robotic setup.

That goes for Ami, but generally as you thought is to go out anyway, we're happy to see it across any of our services.

Vendors. So please keep that in mind, if you're looking at data points.

Jason Kelly: Then you're gonna run some high throughput screen, maybe on a robotic setup, maybe in some sort of pooled assay in the lab. Either way, you're gonna screen a bunch of lab work to pick a few hits. Then you're gonna take those hits into a much more expensive series of experiments, in order to validate if they're good drugs, all right? It's those set of more expensive experiments that we've been focusing on, trying to make high throughput on our automation at Ginkgo and offer as a service through Data Points. What's exciting about that, for example, say, antibody developability, you find these binders, which you can do at high throughput really cheap. But then you get to developability, and it's expensive. Is it soluble? Is it immunogenic? These are things that you have to do these more expensive experiments.

Maybe in some sort of pooled assay in the lab, either way youre going to screen a bunch of lab work to pick a few hits and then youre going to take those hits into a much more expensive series of experiments in order to validate if theyre good drugs, alright, and it's those set of more expensive experiments that we've been focusing on.

This is why I am excited about data points around I think it is exciting to go after the traditional CRM market I think there is good business there.

It's also not that high throughput.

Lot of led places like Wuxi I've done is basically gotten cheaper hands at the bench and then offer that as a service so like that buys us.

Jason Kelly: It's those set of more expensive experiments that we've been focusing on, trying to make high throughput on our automation at Ginkgo and offer as a service through Data Points. What's exciting about that, for example, say, antibody developability, you find these binders, which you can do at high throughput really cheap. But then you get to developability, and it's expensive. Is it soluble? Is it immunogenic? These are things that you have to do these more expensive experiments.

On trying to make high throughput on our automation I dingo, an offer as a service through data points and what's exciting about that for example, say antibody develop ability you find these binders, which you can do at high throughput really cheap, but then you got to develop ability and its expensive is it soluble immunogenic. These are things that you have to do these more expensive experiments and so you're only.

40% cost reduction on the big problem of reducing R&D in getting scalability, but then it kind of runs out because it's just not getting cheaper.

Think across the board if we want to get cheaper the answer is automation and so <unk> been doing this work really in an automated fashion and that allows some unique offerings to customers. So I'll just highlight this funnel here, where this is traditional drug discovery youre going to identify targets, then youre going to run some high throughput screen, maybe on a robotic setup.

Try them on your top hits and you kind of cross your fingers.

Jason Kelly: And so you only try them on your top hits, and you kinda cross your fingers. What we are able to do with our throughput is let you apply those developability assays back much earlier in your hit finding so that you look at a much wider range of potential candidates against not just whether they bind, but also, are they developable? And if you generate enough of this data, maybe we can even have computational models and AI that can predict developability. And so that's where we're seeing a lot of excitement. That's kind of our niche, to get off the ground in the CRO space. And this is, you know, the DPMTA, the design, predict, make, test, analyze cycle in pharmaceuticals. We're really focusing on scaling up that test step for these high-complexity assays. And I think that's something we're very, very good at at Ginkgo.

What we are able to do with our throughput is let you apply those develop ability assays back much earlier in your hip finding so that you look at a much wider range of potential candidates against not just whether they bind but also are they develop.

Maybe in some sort of a pooled assay in the lab either way youre going to screen a bunch of lab work to pick a few hits and then youre going to take those hits into a much more expensive series of experiments.

And if you generate enough of this data maybe we can even have computational models and AI that can predict develop ability and so that's where we're seeing a lot of excitement that's kind of our niche to get off the ground in the aerospace and this is the <unk> the design predict make test analyze cycle in pharmaceuticals, we're really focusing on scaling.

Jason Kelly: And if you generate enough of this data, maybe we can even have computational models and AI that can predict developability. And so that's where we're seeing a lot of excitement. That's kind of our niche, to get off the ground in the CRO space. And this is, you know, the DPMTA, the design, predict, make, test, analyze cycle in pharmaceuticals. We're really focusing on scaling up that test step for these high-complexity assays. And I think that's something we're very, very good at at Ginkgo.

In order to validate if theyre good drugs alright.

Those set of more expensive experiments that we've been focusing on trying to make high throughput on our automation I dingo, an offer as a service through data points and what's exciting about that for example, say antibody develop ability you find these binders, which you can do at high throughput really cheap, but then you've got <unk>.

That test step for these high complexity assays and I think thats something were very very good at it and then go to you should expect us to launch more products and this is just that Abbvie service kind of start to finish projects scoping chemical library and so on I will highlight we're using echo MFS echo mass spec to do that sort of high quality, but also high <unk>.

Develop ability and its expensive is it soluble immunogenic. These are things that you have to do these more expensive experiments and so you're only try them on your top hits and you kind of cross your fingers.

Jason Kelly: So you should expect us to launch more products. This is just that ADME service, kinda start to finish, project scoping, chemical library, so on. I will highlight we're using Echo MS, Echo Mass Spec, to do that sort of high-quality but also high-throughput assay. That's what allows us to get costs that can really compete with doing it with low-cost labor overseas. All right. Last but not least, I wanna talk about reagents. I'm super excited about this. I'm always excited when I see Ginkgo move into a new market area because if we do pick up traction there, there's sort of like a lot of clear vistas in front of you to get into. So this is our first reagent product. And just so you understand kinda the theory here, again, over the last decade, Ginkgo has been a big, big consumer of life science tools.

While we are able to do with our throughput is let you apply those develop ability assay back much earlier in Europe hit finding so that you look at a much wider range of potential candidates against not just whether they bind but also are they develop.

But.

That's what allows us to get cost out.

Jason Kelly: That's what allows us to get costs that can really compete with doing it with low-cost labor overseas. All right. Last but not least, I wanna talk about reagents. I'm super excited about this. I'm always excited when I see Ginkgo move into a new market area because if we do pick up traction there, there's sort of like a lot of clear vistas in front of you to get into. So this is our first reagent product. And just so you understand kinda the theory here, again, over the last decade, Ginkgo has been a big, big consumer of life science tools.

Can really compete with doing it with low cost labor overseas alright.

Last but not least I want to talk about reagents I'm Super excited about this I'm always excited when I see you can go move into a new market area that we do pick up traction. There there is sort of like a lot of FLIR vistas in front of you to get into us as our first reagent products and just to understand kind of the theory here.

And if you generate enough of this data maybe we can even have computational models in AI and predictive capability and so that's where we're seeing a lot of excitement that's kind of our niche to get off the ground in the aerospace and this is the <unk> the design predict make test analyze cycle in pharmaceuticals, we're really focusing on scaling up.

Over the last decade, Ginkgo has been a big big consumer of life Science tools. We have bought various services. We have bought a ton of equipment like those custom work styles I mentioned and we bought a lot of regions and where we can get something great on the market will use it.

That test step for these high complexity assays and I think that's something we're very very good at it and then go to you should expect us to launch more products and this is just that Abbvie service kind of start to finish projects scoping chemical library and so on I will highlight we're using echo MFS echo mass spec to do that sort of high quality, but also high throughput.

Jason Kelly: We have bought various services. We have bought a ton of equipment, like those custom work cells I mentioned. We bought a lot of reagents. Where we can get something great on the market, we'll use it. But what we've found is there are certain gaps in areas that were important, maybe, you know, very important to us for our cell engineering that weren't widely available or the products weren't really up to our level that we needed on the market. So in those areas, over the last decade, we developed our own stuff. We just never sold it to anyone because it was part of our solutions offering. We kinda wanted to keep it proprietary. So what's really fun here in Rage is we're getting to launch a bunch of these what had previously been in-house assets at Ginkgo.

But what we found is there are certain gaps in areas that were important maybe very important to us for ourself engineering that werent widely available or the products weren't really up to our level that we need on the market and so in those areas over the last decade, we developed our own stock. We just never sold it to anyone because it was part of our solutions offering.

Jason Kelly: But what we've found is there are certain gaps in areas that were important, maybe, you know, very important to us for our cell engineering that weren't widely available or the products weren't really up to our level that we needed on the market.

Actually that's what allows us to get costs that.

Can really competes with doing it with low cost labor overseas alright.

Jason Kelly: So in those areas, over the last decade, we developed our own stuff. We just never sold it to anyone because it was part of our solutions offering. We kinda wanted to keep it proprietary. So what's really fun here in Rage is we're getting to launch a bunch of these what had previously been in-house assets at Ginkgo.

Last but not least I want to talk about reagents are super excited about this I'm always excited when I see you can move into a new market area that we do pick up traction. There there is sort of like a lot of clear vistas in front of you to get into us as our first reagent products and just to understand kind of the theory here again over the last decade Ginkgo has been a big big consumer of lifestyle.

And we kind of wanted to keep it proprietary so what's really fun hearing radios, we're going to launch a bunch of these what had previously been in house asset that ginkgo. In fact, we had ginkgo employees, who left went to other companies and we're like Hey, where you just like give me that.

Jason Kelly: In fact, we've had Ginkgo employees who left, went to other companies, and were like, "Hey, will you just, like, give me that, you know, reagent or thing we used to have at Ginkgo because I want it?" and so we heard that enough times that we decided we might as well try to sell it. And so, this is our first product, the cell-free protein synthesis. So cell-free protein synthesis is basically, instead of, if you wanna produce a lot of protein, taking your gene of interest and moving it into a live cell, like an E. coli or a yeast, and then growing that live cell, producing the protein, and extracting it, instead, you start with the live cells, like the E. coli. You grow a bunch up. You pop them open. You lyse them. You take the contents out. You make that into your reagent.

Reagent or thing we used to have.

Because I want it and so we heard that enough times that we decided we would make we will try to sell it.

These tools, we have bought various services, we have bought a ton of equipment like those of custom work cells I mentioned, and we bought a lot of regions and where we can get something great on the market we will use it.

This is our first product with cell free protein synthesis, so cell free protein synthesis is basically.

Jason Kelly: And so, this is our first product, the cell-free protein synthesis. So cell-free protein synthesis is basically, instead of, if you wanna produce a lot of protein, taking your gene of interest and moving it into a live cell, like an E. coli or a yeast, and then growing that live cell, producing the protein, and extracting it, instead, you start with the live cells, like the E. coli. You grow a bunch up. You pop them open. You lyse them. You take the contents out. You make that into your reagent.

Instead of if you want to produce a lot of protein taking your gene of interest and moving it into a live cell like an E coli or east and then growing that lifestyle, producing the protein and extracting it instead you start with the lifestyles like E. Coli you grow a bunch up your pop on the open you like them you take the contents out you bake that into your reagent.

But what we've found is there are certain gaps in areas that were important maybe very important to us for ourself engineering that werent widely available or the products weren't really up to our level that we need on the market and so in those areas over the last decade, we developed our own stock. We just never sold it to anyone because it was part of our solutions offering.

When you add the DNA straight to that reagent mix and it's got all the components of the cell. It's just not a lot and so it'll make protein now there is some downside that the cell keeps everything in a little.

And we kind of wanted to keep it proprietary so what's really fun hearing radios, we're going to launch a bunch of these what had previously been in house assets at Kimco and in fact, we had ginkgo employees, who left went to other companies and we're like Hey, where you just like give me that.

Jason Kelly: Then you add the DNA straight to that reagent mix. And it's got all the components of the cell. It's just not alive. And so it'll make protein. Now, there's some downsides. Like, the cell keeps everything in a little, you know, small container. So it has, like, a high density, which is helpful for production. But you don't have this extra step of growing the cells and everything else. So for a number of applications, cell-free really does stand out. And we had a lot of those applications at Ginkgo. So, we have, you know, our our product here has twice the yields for half the cost compared to market leaders for certain protein constructs. And you can get, you know, $2,000. You can get a 10 ml kit, which is a a great offer on the market today. And in fact, we launched this just last week.

Small container so it had like a high density which is helpful for production, but you don't have this extra step of growing the cells and everything else. So for a number of applications cell free really does stand out and we had a lot of those applications that can go. So we have our product here has twice the yields for half the cost compared to market leaders for certain protein.

Reagent or thing we used to have.

Jason Kelly: But you don't have this extra step of growing the cells and everything else. So for a number of applications, cell-free really does stand out. And we had a lot of those applications at Ginkgo. So, we have, you know, our our product here has twice the yields for half the cost compared to market leaders for certain protein constructs. And you can get, you know, $2,000. You can get a 10 ml kit, which is a a great offer on the market today. And in fact, we launched this just last week.

Because I want it and so we heard that enough times that we decided we wouldn't be able to try to sell it.

This is our first product with cell free protein synthesis, so cell free protein synthesis is basically.

Instead of do you want to produce a lot of protein taking your gene of interest and moving it into a live cell like an E coli or east and then growing that lifestyle, producing the protein and extracting it instead you start with the lifestyles like E. Coli you grow a bunch up your pop them open you like them you take the contents out you bake that into your reagent.

Construct.

And you can get $2000 you can get a 10000 kit, which is a great offer on the market today and in fact, we launched this just last week, we've already got some early sales, which makes me very excited but importantly, we also had.

Jason Kelly: We've already got some early fails, which makes me very excited. But importantly, we also had, like, a free sample. So we have, you know, over 100 people have requested samples. And what I think is just I wanted to highlight was a large fraction of that was actually in the academic research market. This is a market that Ginkgo has basically never sold anything to until selling a kit recently, because we haven't had anything to offer. They're obviously not gonna outsource research to us. That's really, like, all they do for a living. So our solutions business never made sense. And then, we had, you know, a certain scale of CRO services with Data Points that were really pointed at the commercial market. I'm so excited to see this.

Free samples. So we have over 100 people have requested samples and when I think it is just I wanted to highlight was a large fraction of that was actually in the academic research market.

When you add the DNA straight to that reagent mix and it's got all the components of the cell. It's just not a lot and so it will make protein now there is some downside that the cell keeps everything in a little.

This is a market that ginkgo has basically never sold anything to until selling and kept reasonably because we haven't had anything to offer there are obviously not going to outsource research to us that's really like all they do for a living so.

Jason Kelly: This is a market that Ginkgo has basically never sold anything to until selling a kit recently, because we haven't had anything to offer. They're obviously not gonna outsource research to us. That's really, like, all they do for a living. So our solutions business never made sense. And then, we had, you know, a certain scale of CRO services with Data Points that were really pointed at the commercial market. I'm so excited to see this.

Small container. So it has like a high density which is helpful for production, but you don't have this extra step of growing the cells and everything else. So for a number of applications cell free really does stand out and we had a lot of those applications that can go. So we have our product here has twice the yields for half the cost compared to market leaders for certain protein.

Solutions business never made sense and then we had.

A certain scale of <unk> services with data points that we're really pointed at the commercial market.

Okay.

I think the academic research market has been a huge market for life science tools companies like the sequencing companies and companies like Thermo Fisher, So us being able to get into that market here with reagents is very exciting.

Construct.

Jason Kelly: I think the academic research market has been a huge market for life science tools companies, like the sequencing companies and companies like Thermo Fisher. So us being able to get into that market here with reagents is very exciting. Okay. So that was kinda what I wanted to walk through. Again, big takeaways. You know, we're coming in a quarter early on that cost takeout target. That's very strategically important. We've done that with, you know, a good amount of cash and margin of safety still in the bank. That's $474 million in cash equivalents and no bank debt. That sets us up very well to look to the future, and we are doing that. So you will see and hear more from us on the life science tool space. I shared some of that today.

And you can get $2000 you can get a 10 milk, yet which is a great offer on the market today and in fact, we launched this just last week, we've already got some early sales, which makes me very excited but importantly, we also had.

Okay. So that was kind of I wanted to walk through again big takeaways, we're coming into a quarter early on that cost takeout targets, that's very strategically important and we've done that with <unk>.

Jason Kelly: Again, big takeaways. You know, we're coming in a quarter early on that cost takeout target. That's very strategically important. We've done that with, you know, a good amount of cash and margin of safety still in the bank. That's $474 million in cash equivalents and no bank debt.

Free samples. So we have over 100 people have requested samples and what I think is just I wanted to highlight was a large fraction of that was actually in the academic research market.

A good amount of cash and margin of safety is still in the bank that far and $74 million.

Cash equivalents and no bank debt.

This is a market that ginkgo has basically never sold anything to until selling at cap recently, because we haven't had anything to offer there obviously not going to outsource research to us that's really all they do for living.

That's up very well to look to the future.

Jason Kelly: That sets us up very well to look to the future, and we are doing that. So you will see and hear more from us on the life science tool space. I shared some of that today. But expect Ginkgo to really be focused on growing into 2026, from here on out. So, super excited to hear your questions. And thanks very much for your time.

We are doing that you'll see and hear more from us on the life science tools space I shared some of that today, but expect to go to really be focused on growing into 2026.

Jason Kelly: But expect Ginkgo to really be focused on growing into 2026, from here on out. So, super excited to hear your questions. And thanks very much for your time. Great. Thanks, Jason. As usual, I'll start with a question from the public and remind the analysts on the line that if they'd like to ask a question, to please raise their hands on Zoom, and I'll call on you and open up your line. Thanks, everyone. All right. Getting started. We'll start with a question from X.com. I confess, I'm not sure how to pronounce it. So I'll read the whole username out for you. Y-E-P-I-N-Y-4-7-1. And so this question's about automation. "Could you please share whether Ginkgo Automation is expected to become a primary driver of the company's revenue? May I ask if Ginkgo is considering acquiring additional companies in the near future?

Our solutions business never made sense and then we had.

From here on out so super excited to hear your questions and thanks very much for your time.

A certain scale of CRM services with data points that we're really pointed at the commercial market. So I'm pretty excited to see.

Great. Thanks, Jason as usual I'll start with a question from the public and reminding analysts on the line that if you'd like to ask a question to please raise their hands on zoom and I'll call on you and open up your lines. Thanks, everyone.

Daniel Marshall: Great. Thanks, Jason. As usual, I'll start with a question from the public and remind the analysts on the line that if they'd like to ask a question, to please raise their hands on Zoom, and I'll call on you and open up your line. Thanks, everyone.

Daniel Marshall: All right. Getting started. We'll start with a question from X.com. I confess, I'm not sure how to pronounce it. So I'll read the whole username out for you. Y-E-P-I-N-Y-4-7-1. And so this question's about automation.

Okay. So that was kind of what I wanted to walk through again big takeaways, we're coming into a quarter early on that cost takeout targets, that's very strategically important and we've done that with.

Alright.

Getting started.

I'll start with a question from X Dot Com I confess I'm not sure how to pronounce it saw or read the whole user name out for U Y E. P. I N Y 47, one and so this question is about automation could you. Please share with our ginkgo automation is expected to become a primary driver of the company's revenue and I ask if ginkgo is considering acquiring.

A good amount of cash and margin of safety is still in the bank that arent and $74 million.

Cash equivalents and no bank debt.

That's up very well to look to the future and we are doing that so you will see and hear more from us on the life science tools space I shared some of that today, but expect it go to really be focused on growing into 2026.

Daniel Marshall: "Could you please share whether Ginkgo Automation is expected to become a primary driver of the company's revenue? May I ask if Ginkgo is considering acquiring additional companies in the near future?Could you elaborate on the strategic significance of Ginkgo RNA Solutions for the company?"

Additional companies in the near future could you elaborate on the strategic significance of Ginkgo RNA solutions for the company.

From here on out so super excited to hear your questions and thanks very much for your time.

Jason Kelly: Could you elaborate on the strategic significance of Ginkgo RNA Solutions for the company?" Sure. I can take that one. So yeah, it's good to hear you talk about automation. The, obviously, I spent a lot of time about this on the earnings call. I do think automation's gonna be a huge part of our future business. And I I tried to convey this idea that, what we're really trying to solve for with our technology is general-purpose automation, right? And the market for general-purpose automation, we think, ultimately, is something like the market for the lab bench, right? The lab bench has been the general-purpose kind of, like, platform for doing laboratory work. And there's obviously lots of ways to sell things into the lab bench, as reagents, consumable, benchtop equipment, services, so on.

Sure I can take that one.

Great. Thanks, Jason as usual I'll start with a question from the public and remind the analysts on the line that if you'd like to ask a question to please raise their hands on zoom and I'll call on you and open up your line. Thanks, everyone.

Jason Kelly: Sure. I can take that one. So yeah, it's good to hear you talk about automation. The, obviously, I spent a lot of time about this on the earnings call. I do think automation's gonna be a huge part of our future business. And I I tried to convey this idea that, what we're really trying to solve for with our technology is general-purpose automation, right?

Yes, I was going to ask a quick one automation. The obviously spent a lot time about this on the earnings call I didn't get automation are going to be a huge part of our future business and I tried to convey this idea that what we're really trying to solve for with our technology is general purpose automation.

And the market for general purpose automation, we think ultimately is something like the market for the lab bench right at the lab bench has been the general purpose kind of like platform for doing laboratory work and there is obviously lots of ways to sell things into lab asset reagents.

Alright good.

Jason Kelly: And the market for general-purpose automation, we think, ultimately, is something like the market for the lab bench, right? The lab bench has been the general-purpose kind of, like, platform for doing laboratory work. And there's obviously lots of ways to sell things into the lab bench, as reagents, consumable, benchtop equipment, services, so on.

<unk> started we'll start with a question from X Dot Com I confess I'm not sure how to pronounce it saw or read the whole user name out for U Y E. P. I N Y 47, one.

So this question is about automation could you please share where theyre ginkgo automation is expected to become a primary driver of the company's revenue and I ask if ginkgo is considering acquiring additional companies in the near future could you elaborate on the strategic significance of Ginkgo RNA solutions for the company.

Super Bowl, that's off equipment services, so on and so the real question is are we able technologically to make automation as general at the lab after even somewhere along that art. If so then yes. It will be the majority of our business in the future. If we can pull that off because the lab bench has been such a huge market in the life science tools.

Jason Kelly: And so the real question is, are we able technologically to make automation as general as the lab bench or even, you know, somewhere along that arc? If so, then yeah, it'll be the majority of our business in the future if we can pull that off because the lab bench has been such a huge market in the life science tool space. So that's what we're gonna see. I'm certainly optimistic that we could pull that off. But yeah, so absolutely, like, automation writ large, when it is that generic, absolutely would be, I think, ultimately, like, the majority of the revenue of the company would flow through something like that automated bench. Yes, about acquisitions also. We don't have anything immediately planned. It, you know, it's a tough market for life science right now, life science tools in particular as well.

Sure I can take that one.

Yes, I was going to ask what about automation. The obviously spent a lot time about this on the earnings call I didn't get automation are going to be a huge part of our future business.

So that's what we're going to see I'm, certainly optimistic that we could pull that off but yes, absolutely like automation writ large.

Jason Kelly: But yeah, so absolutely, like, automation writ large, when it is that generic, absolutely would be, I think, ultimately, like, the majority of the revenue of the company would flow through something like that automated bench. Yes, about acquisitions also. We don't have anything immediately planned. It, you know, it's a tough market for life science right now, life science tools in particular as well.

Tried to convey this idea that what we're really trying to solve for with our technology is general purpose automation.

Does that generic absolutely would be I think ultimately that's the majority of the revenue of the company would flow through something like that automated bench.

And the markets for general purpose automation, we think ultimately it's something like the market for the lab bench right at the lab bench has been the general purpose kind of like platform for doing laboratory work and there is obviously lots of ways to sell things into lab asset reagents consumables bench top equipment services. So on.

You asked about acquisitions also we don't have anything immediately planned.

Is that a top market for life Science right now life science tools in particular as well. So there are things kind of popping up on the market. All the time, its something thats, a really great fit and a good opportunity you might see us do it but nothing nothing immediately plant.

Jason Kelly: So, there are things kinda popping up on the market all the time. If something was a really great fit and a good opportunity, you might see us do it. But nothing immediately planned. Then what was the last thing was RNA Solutions. Is that right, Daniel? Yeah. RNA Solutions. Yeah. So we announced. I didn't talk about this on the earnings call. We announced a product called RNA Solutions. Best way to think about this is taking some of our expertise in the solutions space. So, like, a solutions project, again, is a customer outsources a whole, usually, like, a 6-month, a 3-year R&D partnership. Our scientists are doing the work using all the tools available at Ginkgo to deliver, ultimately, a scientific result to the customer. Maybe it's a better drug candidate or a new agricultural product, whatever.

And so the real question is are we able technologically to make automation as general at the lab bench or even somewhere along that art. If so then yes. It will be the majority of our business in the future. If we can pull that off because the lab bench has been such a huge market and a life science tool space. So that's what we're going to see I'm certainly optimistic that we could pull that off.

And then lapping RNA solutions is that right or in our solutions.

So we announced I didn't talk about this on the earnings call, we announced a product called <unk> solutions.

Daniel Marshall: Yeah. RNA Solutions.

Jason Kelly: Yeah. So we announced. I didn't talk about this on the earnings call. We announced a product called RNA Solutions. Best way to think about this is taking some of our expertise in the solutions space. So, like, a solutions project, again, is a customer outsources a whole, usually, like, a 6-month, a 3-year R&D partnership.

That's why we think about this is taking some of our expertise in the solution space. So like our solutions project again as a customer outsources a whole usually like six months a three year R&D partnership our scientists are doing the work using all the tools available at kimco to deliver ultimately a scientific results of the customer maybe it's up.

But yes, absolutely like automation writ large.

That generic absolutely would be I think ultimately that's the majority of the revenue of the company would flow through something like that automated bench.

Jason Kelly: Our scientists are doing the work using all the tools available at Ginkgo to deliver, ultimately, a scientific result to the customer. Maybe it's a better drug candidate or a new agricultural product, whatever.

That our drug candidate or a new agricultural product whatever.

You asked about acquisitions also we don't have anything immediately planned.

As part of that we have a whole bunch of.

Jason Kelly: As part of that, we have a whole bunch of kinda capabilities in there. And some of them, like I was mentioning, we can turn into a reagent. Some of them are turning into hardware products. And some of them, we can turn into services. So with Data Points, we're doing that in a few specific areas. But RNA solutions is an example of us offering a service like that, radiating out of our work doing RNA discovery. You might remember had partnerships with places like Pfizer, and others doing that. So that's just us turning that into a kinda off-the-shelf service. So I'm excited to see that. I, you know, I think there's more things like that in the solutions business at Ginkgo. So, you know, expect to see more things like that. Cool. Thanks, Jason.

It's a tough market for life Science right now life science tools in particular as well. So there are things kind of popping up on the market. All the time, if something was a really great fit and a good opportunity you might see us do it but nothing nothing immediately plant.

Kind of capabilities in there and some of them like I was mentioning we can turn into a reagents. Some of them are turning into hardware products and some of them, we can turn into services.

So with data point for doing that.

A few specific areas.

And then well.

But RNA solutions as an example of us offering a service like that.

Jason Kelly: But RNA solutions is an example of us offering a service like that, radiating out of our work doing RNA discovery. You might remember had partnerships with places like Pfizer, and others doing that. So that's just us turning that into a kinda off-the-shelf service. So I'm excited to see that. I, you know, I think there's more things like that in the solutions business at Ginkgo. So, you know, expect to see more things like that.

Things arent solutions is that right or in our solutions.

Yes, So we announced I didn't talk about this on the earnings call, we announced a product called RNA solutions.

Radiating out of our work doing RNA discovery micro Brad partnerships with places like Pfizer and.

Others doing that so that's just us turning that into a kind of off the shelf server. So I'm excited to see that I think there is more things like that in the solutions business that didn't go so.

That's why I think about this is taking some of our expertise in the solution space. So like our solutions project again as a customer outsources whole usually like a six month, a three year R&D partnership our scientists are doing the work using all the tools available at kimco to deliver ultimately a scientific results of the customer maybe it's up.

Expect to see more things like that.

Cool, Thanks, Jason and for our callers you can just raise your hand and I'll open your lines.

Daniel Marshall: Cool. Thanks, Jason. For our callers, you can just raise your hand, and I'll open your line. I have another email question, which I can get to in the meantime while we're waiting. So this is from Brendan with TD Cowen. There are two questions.

Jason Kelly: For our callers, you can just raise your hand, and I'll open your line. I have another email question, which I can get to in the meantime while we're waiting. So this is from Brendan with TD Cowen. There are two questions. Yeah. I know, folks. There's, like, a whole bunch of earnings calls today. So we had some folks tell us that they were not gonna be able to make it. So we apologize for scheduling it on top of everyone else. We'll try to do better next quarter. But yeah, go ahead. Great to hear from Brendan. Sure. Sure. Yeah. Okay. So the first question is, could you provide some more color into your ADME data generation software? And are you planning to develop any of your own models on the generated ADME data as a separate build-out for customers?

That our drug candidate or a new agricultural product whatever.

As part of that we have a whole bunch of.

I have a another email question, which I can get to in the meantime or waiting.

Kind of capabilities in there and some of them like I was mentioning we can turn into reagents. Some of them are turning into hardware products and some of them, we can turn into services.

So this is from Brendan with TD Cowen there's two questions there.

Whole bunch, our earning call today. So we had some folks tell us that they were not going to able to make it. So we apologize for rescheduling it on top of everyone else.

So with data point for doing that.

Jason Kelly: Yeah. I know, folks. There's, like, a whole bunch of earnings calls today. So we had some folks tell us that they were not gonna be able to make it. So we apologize for scheduling it on top of everyone else. We'll try to do better next quarter. But yeah, go ahead. Great to hear from Brendan.

A few specific areas.

But RNA solutions as an example of us offering a service like that.

I'm trying to get better next quarter.

Go ahead and figure out there, but rather sure sure yeah.

Radiating out of our work doing RNA discovery, you might remember had partnerships with places like Pfizer and others doing that so that's just us turning that into a kind of off the shelf service. So I'm trying to see that I think there is more things like that in the solutions business that didn't go so expect to see more things like that.

Okay. So the first question is could you provide some more color into your Ami data generation software.

Daniel Marshall: Sure. Sure. Yeah. Okay. So the first question is, could you provide some more color into your ADME data generation software? And are you planning to develop any of your own models on the generated ADME data as a separate build-out for customers? And how does the meter-beat pricing work in terms of licensing over the course of a contract's lifetime? And are you pushing the service to any partners that house their own rack systems?

Are you planning to develop any of your own models on the generated Ami data as a separate build out for customers and.

And how does the meter beef pricing work in terms of licensing over the course of our contracts lifetime.

Jason Kelly: And how does the meter-beat pricing work in terms of licensing over the course of a contract's lifetime? And are you pushing the service to any partners that house their own rack systems? Okay. So maybe I'll go in reverse order. Then maybe you'll give me that first one again. That would help me out. So on the, on the rack systems, yeah, I mean, one of the things I'm excited about is having us demonstrating capabilities through our service offerings on the rack hardware at Ginkgo in Boston. And then if a customer wanted to have that infrastructure in-house, and there can be a lot of reasons for that. Maybe they wanna apply, you know, the technology against a cell line that's very proprietary that they don't like to have leave the building or whatever. There's lots of reasons you could imagine it.

Cool Thanks, Jason.

And for our callers you can just raise your hand.

And are you pushing the service to any partners of how has their own rack systems.

Bring your line.

Okay. So I'll go in reverse order and then maybe Youll give me. The first one again that will help me out and so on.

Jason Kelly: Okay. So maybe I'll go in reverse order. Then maybe you'll give me that first one again. That would help me out. So on the, on the rack systems, yeah, I mean, one of the things I'm excited about is having us demonstrating capabilities through our service offerings on the rack hardware at Ginkgo in Boston.

I have a another email question, which I can get to in the meantime or waiting.

On the rack systems, Yeah, I mean, one of the things I'm excited about is having.

US demonstrating capabilities through our service offerings on the rack hardware at Ginkgo in Boston and then if a customer wanted to have that infrastructure in house and there can be a lot of reasons for that maybe they wanted.

So this is from Brendan with TD Cowen there's two questions there.

A bunch of our earning call today. So we had some folks tell us that they were not going to able to make it. So we apologize for rescheduling it on top of everyone else.

Jason Kelly: And then if a customer wanted to have that infrastructure in-house, and there can be a lot of reasons for that. Maybe they wanna apply, you know, the technology against a cell line that's very proprietary that they don't like to have leave the building or whatever. There's lots of reasons you could imagine it.

Trying to get better next quarter.

I want to apply.

I had bigger out there for sure sure yeah.

The technology against a cell line that is very proprietary and that they don't like that leave the building or whatever there's lots of reasons you can imagine that we.

Okay. So the first question is could you provide some more color into your Ami data generation software.

Are you planning to develop any of your own models on the generated Ami data as a separate buildout for customers and.

We would have kind of proven that technology out on the on the rack modular automation hardware and the great thing about that hardware I can then just install.

Jason Kelly: We would have kinda proven that technology out on the rack modular, automation hardware. And the great thing about that hardware is I can then just install those systems at your site. And the protocols should run the same as they run for me, right? And this is the advantage of Ginkgo having a biolab where we run our own automation. And we do these high-throughput services. It does mean that we can actually kinda lift and shift those services right onto your premises if you want them. So I think there's an opportunity for us to do work as a service, show people it's valuable, install racks that do that work so that we have, you know, that business in the future with a customer.

And how does the meet or beat pricing work.

Install those systems at your site.

Over the course of our contracts lifetime.

And are you pushing the service to any partners of how has their own rack systems.

The protocols should run the same as they run for me right and this is the advantage of having a bio lab, where we run our own automation and we do these hybrid but services. It does mean that we can actually kind of lift and shift those services right onto your premises that you want them. So I think there is an opportunity for us to do work on the survey show people. It valuable install racks that do that work so that we have.

Okay. So I'll go in reverse order and then maybe Youll give me. The first one again that will help me out and so on.

Jason Kelly: And we do these high-throughput services. It does mean that we can actually kinda lift and shift those services right onto your premises if you want them. So I think there's an opportunity for us to do work as a service, show people it's valuable, install racks that do that work so that we have, you know, that business in the future with a customer.

<unk>.

On the rack systems, Yeah, I mean, one of the things I'm excited about is having.

That business in the future, where the customer as far as we're concerned whatever makes the most sense for our Biopharma bio add industrial biotech customers. If they want to do it in house or through services is fine with us. So I think you will see that crossover between automation and data points in the future.

Jason Kelly: As far as we're concerned, whatever makes the most sense for our biopharma, bioag, industrial biotech customers, if they wanna do it in-house or through services is fine with us. So I think you will see that crossover between automation and Data Points in the future. The meter-beat, yeah. So I think the key, I mean, the idea here is very simple. Like, there's a lot of, you know, vibes, I would say, around, "Hey, we need to have these CRO services in China because they're so cheap. And if you take them away, we won't have these cheap services," and we just wanna try to take that off the table, and offer CRO services that cost the same thing. So now there's not really an excuse to not have it onshore in the United States.

Want to apply.

The technology against a cell line, that's very proprietary that they don't like that leave the building or whatever there is lots of reasons you can imagine that.

The meet or beat.

The key I mean, the idea is very simple like Theres a lot of.

We would have kind of proven that technology out on the on the rack modular automation hardware and the great thing about that hardware I can then just to install those systems at your site and the and the protocols should run the same but they run for me right and this is the advantage of having a bio lab, where we run our own automation and we do these high throughput services.

<unk> I would say around hey, we need to have these crs services in China, because they're so cheap and if you take them away. We won't have these cheap services and we just want to try to take that off the table and offer a zero services that costs the same thing.

Jason Kelly: And if you take them away, we won't have these cheap services," and we just wanna try to take that off the table, and offer CRO services that cost the same thing. So now there's not really an excuse to not have it onshore in the United States.

So now there is not really an excuse to not have it onshore in the United States and so that's the whole point with the with the meter, but it's really to send that signal to the industry that there will be providers here in United States that can match prices with Wuxi and other last.

Doesn't mean that we can actually kind of lift and shift those services right onto your premises that you want them. So I think there is an opportunity for us to do work on the survey show people. It valuable install racks that do that work. So that we have that business in the future where the customer as far as we're concerned whatever makes the most sense for our biopharma.

Jason Kelly: And so that's the whole point with the meet-or-beat. It's really to send that signal to the industry that there will be providers here in the United States that can, you know, match prices with WuXi and other CROs overseas. And the first question, sorry, the ADME one, Daniel. Yeah. The first question was whether we were planning to develop any of our own models on the generated ADME data as a separate build-out for customers. Yeah. So there you are seeing folks working on this problem. There's a few startups right now. They're, like, a LiverTox one and some others. Like, the basic idea is, if you're gonna generate all this data, like, the ADME data, a lot of it is around, you know, like, kinda the developability of a small molecule.

Lastly, arrows overseas.

The first question sorry to add anyone Daniel the first question was whether we're planning to develop any of our own models on the generator.

Daniel Marshall: Yeah. The first question was whether we were planning to develop any of our own models on the generated ADME data as a separate build-out for customers.

Industrial biotech customers.

Want to do it in house or through services is fine with us. So I think you will see that crossover between automation and data points in the future.

It was a separate pulled out for.

Nursing folks working on this problem, obviously startups right now, they're like <unk> and some others like that the basic idea is if youre going to generate all this data like the abbvie data a lot of it is around.

Jason Kelly: Yeah. So there you are seeing folks working on this problem. There's a few startups right now. They're, like, a LiverTox one and some others. Like, the basic idea is, if you're gonna generate all this data, like, the ADME data, a lot of it is around, you know, like, kinda the developability of a small molecule.

The meter beats, yeah. So I think the key I mean, the idea is very simple like theres a lot of.

I got to develop ability of a small molecule could you then turn that dataset into an AI model that as Dan just available as a model to customers. So that they can include that in their design of drugs in the first place.

<unk> I would say around hey, we need to have these crs services in China, because they're so cheap and if you take them away. We won't have these chief services, and we really want to try to take that off the table and offer a zero services that kind of the same thing.

Jason Kelly: Could you then turn that dataset into an AI model that is then just available as a model to customers so that they can include that in their design of drugs in the first place? I mean, I think it's a great idea. I think it's a tough, like, the business model for that has not really been worked out well in the biopharma space, that sort of history of software. You know, there's been places here and there. Sorry. I'm just basing on the name. But you know, there's a well-known, sort of like, drug modeling company that has made an okay business out of this. But it's generally been tough to be like a pure-play software type service. So I think it is like an add-on we could add.

I think it's a great idea I think its a tough like the business model for that has not really been worked out well in the biopharma space.

So now there is not really an excuse to not.

It's a habit onshore in the United States and so that's the whole point with the with the meet or beat its really to send that signal to the industry that there will be providers here in United States that can match prices with Wuxi and other.

A history of.

Software.

Ben.

Jason Kelly: You know, there's been places here and there. Sorry. I'm just basing on the name. But you know, there's a well-known, sort of like, drug modeling company that has made an okay business out of this. But it's generally been tough to be like a pure-play software type service. So I think it is like an add-on we could add.

Places here and there.

Cro's overseas.

I'm sorry, it was basically on the name, but there is a well known sort of like drug modeling company that has made an okay business out of this but it's generally been tasked to be.

The first question sorry, Dan Yes. The first question was whether we were planning to develop any of our own models on the generated advocate.

Like a pure play software type service. So I think it is like an add on we could add that the primary activity of the thing we think customers do have a willingness to pay for is generating data.

There's a separate buildout for <unk>, yeah, so what you're seeing folks working on this problem, obviously startups right now they're like a liver tox, one and some others like that the basic idea is if youre going to generate all this data like the Abi data a lot of it is around.

Jason Kelly: But the primary activity, the thing we think customers do have a willingness to pay for, is generating data. So, you know, if it's data for their proprietary molecules, for their libraries and whatnot, like, that's, you know, that's data they need. And if we can generate that data for them more efficiently or at a scale they can't do it in-house, that it's data they'll pay for. So we like that just as a business model. But I do think there's an opportunity, as those big datasets kinda get produced, whether we do them with partners, whether we do them in-house, that you could develop models. The one thing I will say is we do release datasets. We do these data drops, where we'll post. We actually put them up on Hugging Face now.

So if its data for their proprietary molecules and their libraries and whatnot like that.

I kind of develop ability of a small molecule could you then turn that dataset into an AI model that as Dan just available as a model to customers. So that they can include that in their design of drugs in the first place.

That data they need and if we can generate that data for them more efficiently or at a scale. They can't do it in house data they will pay for so so.

That just has a business model, but I do think theres an opportunity as big data sets kind of got produced whether he doesn't with partners, whether we do them in house that you could develop models. The one thing I will say is we do release datasets. We knew these data drops where we.

Jason Kelly: So we like that just as a business model. But I do think there's an opportunity, as those big datasets kinda get produced, whether we do them with partners, whether we do them in-house, that you could develop models. The one thing I will say is we do release datasets. We do these data drops, where we'll post. We actually put them up on Hugging Face now.

I think it's a great idea I think its a tough like the business model for that has not really been worked out well in the biopharma space.

A history of.

Software.

Post actually put them up on hunting face now so you've got 100 base and Google for Vegas datasets, we have antibody develop ability we have functional genomics terabyte size datasets, so who are tuning in from a customer again on the AI side, our high throughput biology, you go download those datasets it'll let you see that kind of data that we make from the data points server.

Ben.

Places here and there.

Jason Kelly: So you can go to Hugging Face and, you know, Google for Ginkgo's datasets. We have antibody developability. We have functional genomics, terabyte-sized datasets. So if you're tuning in from a customer, again, on the AI side or high-throughput biology, you should go download those datasets. It'll let you see the kinda data that we make from the Data Points service in a nice, clean format, and you can play around with it. And if you like it, then you can just order more, for your specific areas of interest. So I think you'll see us do data drops, and then maybe, depending on the market over time, we could do models. But we're also happy to enable other people that wanna do models, right?

I'm sorry, it was basically on the name, but there is a well known sort of like drug modeling company that has made an okay business out of this but it has generally been tough to do.

Like a pure play software type service. So I think it is like an add on we could add that the primary activity that we think customers do have a willingness to pay for is generating data.

And a nice clean formats and you can play around with them. If you like it and you can just order more for your specific areas of interest. So I think youll see us do data drops.

So data for their proprietary molecules and their libraries and whatnot like that.

Jason Kelly: And if you like it, then you can just order more, for your specific areas of interest. So I think you'll see us do data drops, and then maybe, depending on the market over time, we could do models. But we're also happy to enable other people that wanna do models, right?If they wanna generate a huge dataset and make an awesome AI model and then sell that model, like, we are here for it. So, you know, I think there'll be an ecosystem in the market.

That data they need and if we can generate that data for them more efficiently or at a scale. They can't do it in house, it's data they'll pay for so so we like that just as a business model, but I do think theres an opportunity as big data sets kind of got produce whether we do that with partners, whether we do them in house that you could develop models I. The only thing I will say as we do release datasets, we do these data drops.

And then maybe depending on the market over time, we could we could do models, but we're also happy to enable other people don't want to do models right. If they want to generate a huge dataset and make an awesome AI model in and sell that model like we are here for it so.

Jason Kelly: If they wanna generate a huge dataset and make an awesome AI model and then sell that model, like, we are here for it. So, you know, I think there'll be an ecosystem in the market. Cool. There was one more question, from TD Cowen. And that was about Biosecurity. So on the lowered Biosecurity guide, are you seeing any areas that are particularly exposed to geopolitical pullback or tensions? Are there any end markets that are seeing particular exposure as well? Yeah. Sorry. I meant to mention this in my talk. Yeah, Steve had mentioned and shown in the numbers, we've gone from a $50 million-plus to a $40 million-plus on Biosecurity, brought that down. This is basically because, in Biosecurity, we've always tried to guide to, like, what we had in the bank as much as possible.

I think there will be an ecosystem in the market.

Okay.

Daniel Marshall: Cool. There was one more question, from TD Cowen. And that was about Biosecurity. So on the lowered Biosecurity guide, are you seeing any areas that are particularly exposed to geopolitical pullback or tensions? Are there any end markets that are seeing particular exposure as well?

There was one more question from TD Cowen and that was about bio security and.

We will post actually put them up on hunting base now so you've got 100 base and Google for Vegas datasets, we have antibody develop ability we have functional genomics terabyte sized datasets.

So on the lowered Biosecurity guide are you seeing any areas that are particularly exposed to geopolitical pullback or tensions are there any end markets that are seeing particular exposure as well.

We are tuning in from a customer again on the AI side, our high throughput biology, you go download those datasets that will let you see the kind of data that we make from the data point service and a nice clean formats and you can play around with it and if you like it and you can just order more for your specific areas of interest. So I think youll see us do data drops.

Yeah, sorry, I mentioned men's I mentioned this in my talk as Stephen mentioned and shown in the numbers, we've gone from 50 million plus to a $40 million plus on bio security brought that down.

Jason Kelly: Yeah. Sorry. I meant to mention this in my talk. Yeah, Steve had mentioned and shown in the numbers, we've gone from a $50 million-plus to a $40 million-plus on Biosecurity, brought that down. This is basically because, in Biosecurity, we've always tried to guide to, like, what we had in the bank as much as possible.

And this is basically because in vascular we've always tried to guide to like what we had in the bank as much as possible we've tried to be conservative about it.

Jason Kelly: We tried to be conservative about it. We're still, like, it's basically on the international side is the short answer to this question. So we're seeing certain contracts that we were hoping to have in place by now not be in place. I don't think we're there; they're not, like, totally off the table. But at this point, I always wanted to be more conservative 'cause that had been kinda the attitude we'd taken with the markets on biosecurity. Whether that's, like, a macro trend or an anecdote, not totally clear. I think we are certainly seeing a lot more focus in the US on, like, defense technology. And I think biodefense you know, and this is, like, the companies, like, the Andurils and the Palantirs of the world. I think there's, like, little question that there should be sort of, like, a biodefense prime, right?

We are still like it based on the international side is the short answer to the question. So we're seeing.

And then maybe depending on the market over time, we could we could do models, but we're also happy to enable other people that want to do models right. If they want to generate a huge dataset and make an awesome AI model and then sell that model like we are here for it so.

Certain contract that we were hoping to have in place by now and not be in place I don't think were theyre not like totally off the table, but at this point I always wanted to be more conservative because that had been kind of the attitude. We're taking one of the markets on bio security.

I think there'll be an ecosystem in the market.

Jason Kelly: But at this point, I always wanted to be more conservative 'cause that had been kinda the attitude we'd taken with the markets on biosecurity. Whether that's, like, a macro trend or an anecdote, not totally clear. I think we are certainly seeing a lot more focus in the US on, like, defense technology.

Okay.

Cool there was one more question from TD Cowen and that was about by our security.

Whether that's like a macro trend or an anecdote.

Not totally clear I think.

So on the lowered bio security guide are you seeing any areas that are particularly exposed to geopolitical pullback retentions are there any end markets that are seeing particular exposure as well.

I think we are certainly seeing.

A lot more focus in the U S on <unk>.

Defense technology.

And I think Biodefense and this is like the companies like the animals and the <unk> of the World I think there's like little question that there should be sort of like a biodefense prime right like that that's a thing that should exist in the market.

Alright, I mentioned men's I mentioned this in my talk as Stephen mentioned and shown in the numbers, we've gone from a $50 million plus to a $40 million plus on bio security brought that down. This is this is basically because in vascular we've always tried to guide to like what we had in the bank as much as possible we've tried to be conservative about it.

Jason Kelly: And I think biodefense you know, and this is, like, the companies, like, the Andurils and the Palantirs of the world. I think there's, like, little question that there should be sort of, like, a biodefense prime, right?

Jason Kelly: Like, that's a thing that should exist in the market. How that gets built and what are the first types of contracts and so on, I think are still, like, open questions. But I think Ginkgo's Biosecurity business is well-positioned to lean into that. But we have to kinda just see the market as it develops. Cool. Thanks, Jason. All right. Any questions? I have another one from online, if you'd like for me to go that direction. Yeah. Sure. Go ahead. We'll do one more. Then if no one else is there, it's busy earnings day. So go ahead. Yeah. So, this question is from treep90501 on x.com. Regarding your target of Adjusted EBITDA profitability next year, could you walk us through the key levers you're focused on to bridge the gap from today?

How that gets built in what are the first types of contracts and so on I think there are still like open questions, but I think I can just buy a security business is well positioned to lean into that but we have to kind of see the market as it develops.

We are still like it's based on the international side is the short answer to this question. So we are seeing.

Cool Thanks, Jason.

Daniel Marshall: Cool. Thanks, Jason. All right. Any questions? I have another one from online, if you'd like for me to go that direction.

Any questions.

I have another one from online.

Whether that's like a macro trend or an anecdote.

If you'd like for me to go that direction, Yes, sure go into a more and if no one else is there.

Not totally clear I think.

Jason Kelly: Yeah. Sure. Go ahead. We'll do one more. Then if no one else is there, it's busy earnings day. So go ahead.

I think we are certainly seeing.

As the earnings go ahead.

Yeah. So this question is from <unk>.

A lot more focus in the U S on <unk>.

Daniel Marshall: Yeah. So, this question is from treep90501 on x.com. Regarding your target of Adjusted EBITDA profitability next year, could you walk us through the key levers you're focused on to bridge the gap from today?

<unk> nine O 501.

Defense technology.

On X dot com regarding your target adjusted EBITDA profitability next year could you walk us through the key levers you're focused on to bridge the gap from today, specifically, where do you see the most significant impact coming from is it increased foundry automation, AI driven efficiencies or disciplined SG&A management.

And I think Biodefense and this is like the companies like the <unk> and the pound here is in the World I think there's like little question that there should be sort of like a biodefense prime right like that that's the thing that should exist in the market.

Jason Kelly: Specifically, where do you see the most significant impact coming from? Is it increased foundry automation, AI-driven efficiencies, or disciplined SG&A management? Steve, do you wanna touch on that? Yeah. I can start it. Maybe you speak to some trends, Jason. If you just level set on what we just accomplished in 4 quarters, we've succeeded in taking $250 million out of our, you know, cost run rate. We have effectively 6 quarters to go before we get to our target goal. Just looking at what we've done the last 4 quarters, that's gonna roll forward positively for the next 6. In addition to that, we still have some cost levers to take out. We need to be strategic about those, not as company-wide and holistic as we just accomplished. But there's absolutely more opportunities in the cost side.

Daniel Marshall: Specifically, where do you see the most significant impact coming from? Is it increased foundry automation, AI-driven efficiencies, or disciplined SG&A management?

How that gets built in what are the first types of contracts and so on I think are still like open questions, but I think I can cause by a security business as well and to lean into that.

Steve you and I don't know.

Jason Kelly: Steve, do you wanna touch on that?

<unk> started maybe maybe you can speak to maybe some trends Jason.

Steve Coen: Yeah. I can start it. Maybe you speak to some trends, Jason. If you just level set on what we just accomplished in 4 quarters, we've succeeded in taking $250 million out of our, you know, cost run rate. We have effectively 6 quarters to go before we get to our target goal. Just looking at what we've done the last 4 quarters, that's gonna roll forward positively for the next 6.

If you just level set of what we've just accomplished in four quarters.

To see the market as it develops.

Cool Thanks, Jason.

<unk> succeeded in taking $250 million out of our cost run rate.

Any questions.

Okay.

I have another one from online.

And we have.

Effectively six quarters to go before we get to our target goal.

If you'd like for me to go that direction, Yes, sure go into one more and if no one else is there.

Just looking at what we've done the last four quarters, that's going to move forward positively for the next six.

Busy earnings day. So go ahead.

So this question is from.

In addition that we still have some cost levers to take out we need to be strategic about us not us.

<unk> nine O 501 on X dot com regarding your target adjusted EBITDA profitability next year could you walk us through the key levers you're focused on to bridge the gap from today, specifically, where do you see the most significant impact coming from is it increased foundry automation, AI driven efficiencies or disciplined SG&A man.

Steve Coen: In addition to that, we still have some cost levers to take out. We need to be strategic about those, not as company-wide and holistic as we just accomplished. But there's absolutely more opportunities in the cost side.

Companywide and holistic and we just accomplished but there's absolutely more opportunities on the cost side.

And then we know how to drive revenue and a lot of the drivers of revenue and what we've been talking about.

Jason Kelly: And then we have to drive revenue. And a lot of the drivers of revenue of what we've been talking about, all along, we need to see, you know, solutions, contributions from tools. And we really see, you know, a lot of what Jason talked about is going to roll in, in some successful way in revenue. That said, you know, our biggest risk and opportunity still remains the sublease situation that we have. We have a significant amount of underutilized leased space. And so you've seen that we've taken out of the segment Adjusted EBITDA the unused space because we're not using it to contribute revenue right now. So, you know, the most important element of that is we've succeeded in doing what we said we were going to do.

Steve Coen: And then we have to drive revenue. And a lot of the drivers of revenue of what we've been talking about, all along, we need to see, you know, solutions, contributions from tools. And we really see, you know, a lot of what Jason talked about is going to roll in, in some successful way in revenue.

All along we need see solutions contributions from tools and we really see a lot of what Jason talked about is going to roll in.

<unk>.

Steve you want to touch on that.

I can start and maybe maybe you can speak to maybe some trends Jason.

If you just level set of what we just accomplished in four quarters.

Some in some since our successful win revenue that said.

We've succeeded in taking $250 million out of our cost run rate.

Steve Coen: That said, you know, our biggest risk and opportunity still remains the sublease situation that we have. We have a significant amount of underutilized leased space. And so you've seen that we've taken out of the segment Adjusted EBITDA the unused space because we're not using it to contribute revenue right now. So, you know, the most important element of that is we've succeeded in doing what we said we were going to do.

Risks and opportunities still remains the sublease situation that we have we have a significant.

And we have.

Secondly, six quarters to go before we get to our target goal.

Significant amount of.

Unutilized underutilized rent space to lease space and so you've seen that we've taken out of the segment.

So just looking at what we've done the last four quarters, that's going to move forward positively for the next six months.

In addition that we still have some cost leverage too.

Adjusted EBITDA, the unused space, because we're not using it to contribute revenue right now so the most important element of that is we've succeeded in doing what we said, we're going to we're going to shrink our footprint as far as our work level revenue production level, we've done that successfully.

Take out we need to be strategic about us not us.

Companywide and holistic and we just accomplished.

Absolutely more opportunities on the cost side and.

Jason Kelly: We were going to shrink our footprint as far as our, you know, work level, revenue production level. We've done that successfully. We're out marketing. The tough side and the risk side is the fact that the Boston market and the other markets around are just soft at this moment. But we're continuing to focus on that. Jason, I don't know if you have any views on, you know, revenue drivers. No. I mean, I think the big one is just a continued shift into tools. So, you know, I think we'll watch how fast we can get to pick up on the automation in particular and Data Points. It could be very swingy. I mean, we're seeing a lot of interest because of the AI work in beginning to automate labs.

Steve Coen: We were going to shrink our footprint as far as our, you know, work level, revenue production level. We've done that successfully. We're out marketing. The tough side and the risk side is the fact that the Boston market and the other markets around are just soft at this moment. But we're continuing to focus on that. Jason, I don't know if you have any views on, you know, revenue drivers.

And then we know how to drive revenue and a lot of the drivers of revenue of what we've been talking about.

And the real marketing.

All along we need see solutions contributions from tools and we really see a lot of what Jason talked about is going to roll in.

The tough side and the risk side is the fact that the Boston market in the other markets around.

Just sort of at this moment, but we're continuing to focus on that Jason.

Jason I don't know if you have any views on revenue drivers.

Some some successful winning revenue that said our biggest risk and opportunity is still remains the sublease situation that we have we have a.

The Big one is just the continued shift in the duals. So I think we'll watch.

Jason Kelly: No. I mean, I think the big one is just a continued shift into tools. So, you know, I think we'll watch how fast we can get to pick up on the automation in particular and Data Points. It could be very swingy. I mean, we're seeing a lot of interest because of the AI work in beginning to automate labs.

How fast we can get pick up on me automation in particular and data points.

Significant amount of.

Unutilized unutilized rent space to lease space and so you've seen that we've taken out of the segment.

It could be very Swingy I mean, we're seeing a lot of interest because of the AI work in.

Beginning to automate labs, and I do think we have the sort of.

Jason Kelly: And I do think we have the sort of best technology in the market for that, if you're really talking about general-purpose lab automation and connecting it to AI reasoning models and this Lab-in-the-Loop concept and all these types of things. I I really think we're well ahead on that. And so we'll see. That that would be the one that's the most swingy where we could really get, you know, get ahead on things. But it it is a new area for us. And so, you know, I don't wanna overstate it. But I'd say that's the place where I see the most, like, upside potential on revenue in 2026. Cool. Thanks, Jason. All right. Not seeing any other questions right now. I know folks are on other calls as well.

The best technology in the market for that if you're really talking about general purpose lab automation and connecting it AI reasoning models in this lab and Hulu concept and all of these types of things I really think we're well ahead on that and so.

Let's say that that would be the one that's in those swing, even where we can really get get ahead on things.

We're out marketing.

Jason Kelly: That that would be the one that's the most swingy where we could really get, you know, get ahead on things. But it it is a new area for us. And so, you know, I don't wanna overstate it. But I'd say that's the place where I see the most, like, upside potential on revenue in 2026.

The tough side and the risk side is the fact that the Boston market in the other markets around.

But it is a new area for us and so again I don't want to overstate it but I'd say, that's the place where I see the most like upside potential on revenue and 26.

Just sort of at this moment, but we're continuing to focus on that Jason.

Jason I don't know if you have any views on revenue drivers.

Cool, Thanks, Jason Alright, not seen any other questions right now I know folks are on other calls as well. So just a reminder, that you can always reach us at investors <unk> Dot com and we will get back to you as soon as we can.

Daniel Marshall: Cool. Thanks, Jason. All right. Not seeing any other questions right now. I know folks are on other calls as well. Just a reminder that you can always reach us at investors@ginkgobioworks.com, and we'll get back to you as soon as we can. I wanna thank everyone for tuning in today.

No I mean, I think the big one is just a continued shifting of the tools. So I think we'll watch.

How fast we can get to pick up on me automation in particular and data points.

Jason Kelly: Just a reminder that you can always reach us at investors@ginkgobioworks.com, and we'll get back to you as soon as we can. I wanna thank everyone for tuning in today. Yeah. Appreciate it, Ray. Thanks for the questions. There you go.

It could be very Swingy I mean, we're seeing a lot of interest because of the AI work in.

Thank everyone for tuning in today.

I appreciate it thanks for the questions.

Jason Kelly: Yeah. Appreciate it, Ray. Thanks for the questions.

Beginning to automate labs, and I do think we have the sort of.

Yes.

Daniel Marshall: There you go.

Best technology in the market for that if you're really talking about general purpose lab automation and connecting it AI reasoning models in this lab and <unk> concept and all of these types of things I really think we're well ahead on that and so.

We will see that that would be the one that's the most swinging where we could really get get ahead on things.

But it is a new area for us and so I don't want to overstate it but I'd say, that's the place where I see the most like upside potential on revenue and 26.

Cool, Thanks, Jason Alright, not seen any other questions right now I know folks are on other calls as well. So just a reminder, that you can always reach us at investors at <unk> Dot Com and we will get back to you as soon as we can.

Want to thank everyone for tuning in today.

I appreciate it Ryan thanks for the questions.

Yes.

So those are the lucentis as tanker and Lenovo skills cornea TUSK alone.

Okay Yadkin to Kronos. This is Chad hip at the samples released Us Lama Iot other loss, but it's one of my daughters, the quite into Santa prohibit day, almost you've put a Google Opiatic begot. It actually went up but it wont divest sika is fajita the lengthy I've seen them with someone else, but someone else inteligentes ulsan layer mechanical means I'm will celebrate though the year living Jojo the yes, but it brings.

<unk> is my yard is accordingly, so looking somebody neutrals idea, but amin called out it was really that this and when I say minor Cynthia does seem probably in those same minus than the rest with today here in Ms.

As per kilowatt basis, Dantis, toggle up and down yet, but I don't need to.

[noise].

Yes.

Okay.

Ever ever ever before it's going to be.

[noise] as you embark on this great adventure, let me share some of the biggest lessons I've learned from a lifetime spent building dreams and beating the odds I paid a lot of Ah.

Lot of a lot of people say that I don't know.

But it worked out okay, where all we O T. A president is how does that happen.

Now you're going to be in the same position, but some of it would you like to hear some of the ideas are searches skip over that part of.

That's going to be more interesting than all the other stuff, which was slightly political rates.

I'm going to give it to you, though just as I see it and as I've learned it the hard way in the easy way first if you are here today and think that you're too young to do something great. Let me tell you that you are wrong youre not too young you can have great success at a very young age you're all very young.

In America with drive and ambition young people can do anything.

I was 28 when I took my first big Gamble to develop the hotel in Midtown Manhattan, The Grand Hyatt.

And it worked out incredibly well, but I was very young at the time I was like a very young person as sort of an old person business. Steve jobs was 21, when he founded Apple Walt Disney was 21, when he founded Dizzy James Madison, James von ROE Alexander Hamilton, Thomas Jefferson They were.

No older than 25, when they began the journeys that etch their names into the history books for all time.

So to everyone here today don't waste your US go out and fight right from the beginning from the day you leave this incredible University go out and fight fight tough fight fair, but go out and fight you're going to be very successful because now is the time to work harder than you have ever worked before push yourself further than you have ever.

Pushed yourself before find your limits and then smash through everything go and smashed through you've watched that football team smashed youre going to do the same thing.

[noise] here at the age when you have the time and vitality to do really incredible things. If you give us just give it your all.

You look back in a decade from now you'll be astounded by what you've achieved you will remember this day you remember when a guy named Trump was giving the commencement address and he said I could do it and guess what I did I think you got to remember that very fondly I hope so.

[noise] second of all and very importantly, you have to love what you do.

Okay you have to.

I rarely see somebody it is successful that doesn't love what he or she does.

Wei.

Really like work isn't work is fun.

I find it fun I work, all the time and I find it fun of I didn't find it fun I wouldnt be successful, whether it was real estate or or in shop is I had a lot of different careers, but I loved real estate so much.

It was very successful real estate, because I loved it I learned a lot from my father, because I watched him work you work seven he was a workaholic eat what you love to work. So good man. It was a tough guy tougher zelle actually now that I think back I don't know if you could even get away with that nowadays he was stuff, but he was a good man I'll tell you and they worked seven day.

As a way work Saturdays Sundays, it didn't matter and I learned by watching him. He loves his life. He loves what he was doing at a great long term marriage along long many many many years she beat me on that one.

No I've monetary success with Kevin's last it quite as long as flushed is close to 70 years that was a long time set up you beat me on that one but you know what I learned from him that he just loved life and all it did was work I see people that don't work hard in their miserable so go out and find.

But he loves what he was doing and you have to find something that you love and you have to follow your own instincts listen to your parents are very wise, but you have to follow your instincts and your heart yourself and you want to be the very very best you can be treated every day like a home game against Sherburn fight like Hell.

And enjoy doing it than your coach can tell.

Tell you all about that third thing is to think big you know you're going to do something I might as well think big because its just as tough you could think small I know a lot of people. They start small they're very smart I know others that weren't nearly as smart, but to add a better picture of the big picture because it's just as hard to solve a small problem.

It's a big problem and as just as much energy and everything else, except the result is going to be a smaller one so love what you do but think big if it's possible now if it's not possible. That's okay too you do something you have to do something that you love you will have all the same headaches and challenges all the same delays and setbacks.

So you might as well do something that is just Amazing America does the names small Alabama does the names small and neither do you. So think big when possible think big fourth is work hard.

Work hard.

Never ever stop an example is a great athlete actually Gary player golfer great great golfer.

He wasn't as big as other men it was actually on the small side don't tell him that.

Friend of mine don't tell him that because he doesn't understand that but he worked very very hard he made up for it he never stopped tier one 168 golf tournaments stick to that 100 as you Gary you're winning like every weekend do you have a choke or anything I don't know what joke range anyway.

And he made a statement years ago that I read and I thought it was sort of an incredible safe when he said, it's funny to harder I work. The luckier I get I think is at the heart or I work. The luckier I get so you really have to work hard and you're going to be successful because you have the talent to.

To get into the school is not easy to get through it is even more difficult you have a lot of talent.

Fifth is don't lose your momentum just are you Jim.

Just want to keep it going and you have to know if you are losing that you have to know when you're losing it so maybe yourself and maybe it's time to stop and listen to the feedback think through your planned very carefully and keep moving fast. The word momentum is very important I mean, I'll just tell you a little story about a great real estate developer named William Love It.

He built levittown some of you might live in 11 town, who is the biggest developer in the whole country in the 19 forties and so and he built these jobs. He started with one house than two houses in 20 houses in thousands and thousands of houses.

And a company Gulf and Western came along and they.

We're going to make you an offer to buy your company and they offered him a lot of money a lot of money more money than he ever thought he could make and he retired.

Verses momentum he retired and he led a beautiful life. He had a wife I must tell you. It was the second do I. If it was a trophy wife, what can I say.

I don't like telling you everything, but we're all friends right can we talk.

We're all France, yet itself it was and he lived a different lives they move to the south of France, but he lives.

It was a life of tremendous luxury at so many millions of dollars. It was given a fortunate for the company in 10 years went by and then 15 years went by and they got a call from this big conglomerate Gulf and Western and they said we're.

We're not doing well with the purchase because he used to pick up every now every piece of saw dust every piece of wood every chip everything in each cell. It is make a couple of bucks to everything was perfect. They can't do that you know these big companies. They don't do that you see it a lot when an entrepreneur sells a big company and then they ended up buying the company back for Peanuts.

Later on happens a lot.

But he was the best at what he did.

But 15 years went by and he was so excited and they sold them back his company.

And he started and he was going to tear apart the world because he got bored with a life of luxury.

And he started building and building and building.

And the markets turned on him and he went bad and lost everything and he went bankrupt.

Absolutely bankrupt and it was a sad story to read it was such an amazing soon because he was so rich, but he paid them and he bought it for the right price, but is low but he went wild but he lost his momentum he wasn't good at it anymore.

And he was at a party on fifth Avenue I'll never forget.

And it was a party of a very very powerful men was having a party in a magnificent apartment overlooking a park.

And then my daughter, Rhode Island, Brendan on the whole system, because it's also even they don't know with cookie dough.

Godaddy Cipla when you think of that in there or most of it that are all part of this blue close given us nephew does come into <unk>.

Simply if you got a presence in donetsk on showing baidu that godaddy.

Hi, guys.

But I think they're looking at getting either they see DSO applicant themed air Canada, <unk> opinion elliptical line Alicia in Atlanta, No doesn't that as things like Pelican. He said he did nonetheless 50 students in their name.

Let me know and again I think we're unique eco medical and Telecom Italia and we have again had been adding maybe etamine niches. He doesn't do that mechanic would even hinted at a deeper level of clerical intelligentsia PTC interacting with pellets mortality with Gadaffi don't get around ADC that besides but that's going to get out there the little intelligentsia UPC I can't do that in context. It was gonna, let Duncan intelligentsia PPP SBA told me.

I think a lot of Democrat I can look up that let the Indian local political it's almost going to enter the moment.

If you could let the company that's affiliated with any company does online E D.

And I walked in and they were 50 or so people are recognized most of all the biggest business people in the world actually.

Very glamourous I was doing well I was young and I was doing well and I was invited to parties like that and then looked in the corner and there was.

Mr. William Levitt sitting all by himself on a chair looking very glum.

Nobody was talking to him because you'll find that when you're not successful you lose a lot of friends, it's not a good situation.

There was nobody talking no, but I wanted to talk to them because I was in the real estate business and he was in most of these people were in different businesses and I went over and talk to him. When he says how are you Mr. <unk>.

Donald he knew I was not well not well.

So can you come back.

He said no Sun I lost my momentum I shouldn't have done it I lost my momentum they never forgot that expression losses momentum. If he would have kept going instead of selling and relaxing and going into a different life. He probably would have been three times bigger than it was but he lost.

This momentum and you have to know when it's your time I mean there'll be a time when you do as you see it was fighters you'll see it with a lot of people they have a great record and they retire.

Four years later, and say I'm going back I can beat that guy and they get knocked the hell.

And it's not good it's not good so he losses momentum you have to know when your momentum time is up I call it momentum time.

But.

Following your momentum very important word you don't hear from too many but I've seen it I've seen it a lot.

Six if you wanted to change the world you have to have the courage to being outside or in other words, you have to take certain risks she'll do things a little bit differently, otherwise if that weren't the case everybody would be successful does it work that way progress never comes from those satisfied with the failures of a broken system. It comes from those who one of <unk>.

Fixed a broken system and you'll make the bigger money, you'll make them more success by acting that way the other way maybe more secure but if you want to go to the top you just never going to do it unless you break the system change is never easy and the closer you get to success the more ferociously those.

With a vested interest in the past, we'll raise issues they want to resist.

So I just say.

Trust me on that because I know you really do you have to break the system a little bit.

Following your own and sings but if your vision is right nothing will hold you down nothing you have to have the right vision.

Thank you everybody, it's great to see you and Hello class of 'twenty 'twenty four this is so exciting.

[noise], it's an incredible feeling to be here with you and I am so excited to join you today really you have no idea how.

How excited I am keep in mind. This is literally only the second time of ever set foot on a college campus.

Second time ever.

But for some reason, you're giving me a doctor degree.

I just came here to give a speech, but I get to go home as Doctor Roger.

That's a pretty nice bonus so.

Dr. Roger This has to be my most unexpected victory ever. Thank you.

Resident bylaw.

The board of Trustees faculty members. Thank you for this honor.

President Biologics I'm incredibly grateful.

Try my best.

Not to choke.

I'm a little bit outside of my comfort zone. Today. This is not my usual seen and these are not my usual close.

Do you dress like this everyday of DARPA.

The Rove is hard to move in keep in mind of worn shorts almost every day for the last 35 years.

Another person who gives a lot of speeches are like this may be the worst but an important speech was when I started on the Swiss national team I was only 17 years old and I was so nervous I couldnt, even say more.

Happy.

20.

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