Q4 2025 MaxCyte Inc Earnings Call

March 24, 2026

Speaker #3: Earlier today, MaxCyte released financial results for the fourth quarter and full year ended December 31, 2025. A copy of the press release is available on the company's website.

Speaker #3: Before we begin, I need to read the following statement. Statements or comments made during this call may be forward-looking statements within the meaning of federal securities laws.

Speaker #3: Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. Actual results may differ materially from those expressed or implied in any forward-looking statements due to a variety of factors, which are discussed in detail in our SEC filings.

Speaker #3: Except as required by applicable law, the company has no obligation to publicly update any forward-looking statements, whether because of new information, future events, or otherwise.

Speaker #3: And with that, I will turn the call over to Maher.

Speaker #4: Thank you, Erik. Good afternoon, everyone, and thank you for joining MaxCyte's fourth quarter and full-year 2025 earnings call. 2025 presented a challenging operating environment, but it was also a year of meaningful progress for MaxCyte.

Speaker #4: We continue to sign new Strategic Platform Licenses—SPLs, as we call them—and support customers in advancing drugs to the clinic. We acquired SecureDX and successfully integrated the business into MaxCyte.

Speaker #4: We made meaningful changes to right-size spending and strategically improved our operations. And most recently, we launched a new product into Expert DTX that will allow us to work with developers earlier in research and development discovery.

Speaker #4: Let me start by reviewing our financial results. Consistent with the preliminary financials we announced in January, MaxCyte reported $33 million of total revenue for the full year, which included $29.6 million of core revenue and $3.4 million of strategic platform license, program-related revenue.

Erik Abdo: Good afternoon, everyone. Thank you for participating in today's conference call. Joining me on the call from MaxCyte, we have Maher Masoud, President and Chief Executive Officer, Doug Swirsky, Chief Financial Officer, and Sean Menarguez, Senior Director of Business Development. Earlier today, MaxCyte released financial results for the Q4 and full year ended December 31, 2025. A copy of the press release is available on the company's website. Before we begin, I need to read the following statement. Statements or comments made during this call may be forward-looking statements within the meaning of federal securities laws. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. Actual results may differ materially from those expressed or implied in any forward-looking statements due to a variety of factors, which are discussed in detail in our SEC filings.

Speaker #4: We grew our instrument install base to 857, up from 760 at the end of 2024. Doug will discuss fourth quarter and full-year performance in greater detail.

Speaker #4: The MAXCYTE results were within the range of expectations that we had updated you with in August. As previously discussed, the business was impacted by program consolidation and rationalization across some of our SPL customers.

Speaker #4: This included a 15% decline in purchases and leases from our largest customer, reorganizing manufacturing, and managing inventory. Now, let me give you a little more detail on the launch of our new Expert DTX, which I mentioned earlier, and I'm very excited to discuss.

Speaker #4: Even as we face headwinds in 2025, our focus remained on innovation and leading the market with groundbreaking platforms. In February, we announced the launch of the expert DTX, a modular 96-well well electroporation platform designed for research and drug discovery applications.

Erik Abdo: Except as required by applicable law, the company has no obligation to publicly update any forward-looking statements, whether because of new information, future events, or otherwise. With that, I'll turn the call over to Maher.

Speaker #4: We are very excited about what this product represents for MaxCyte. The DTX enables labs to transfect primary cells and cell lines across up to 96 samples in a single three-minute run.

Maher Masoud: Thank you, Eric. Good afternoon, everyone, and thank you for joining MaxCyte's Q4 and Full Year 2025 Earnings Call. 2025 presented a challenging operating environment, but was also a year of meaningful progress for MaxCyte. We continued to sign new strategic platform licenses, SPLs as we call them, and support customers in advancing drugs through the clinic. We acquired SeQure Dx and successfully integrated the business into MaxCyte. We made meaningful changes to right-size spending and strategically improve our operations. Most recently, we launched a new product into ExPERT DTx that will allow us to work with developers earlier in research and development discovery. Let me start by reviewing our financial results.

Speaker #4: With consistent well-to-well performance that effectively eliminates transfection as an experimental variable. It is one of the most cost-effective 96-well electroporation solutions on the market.

Speaker #4: With detachable eight-well strips that can be processed with unique parameters, giving researchers the flexibility to test different cell and cargo combinations in parallel while reducing waste.

Speaker #4: This software is also differentiated. DTX designer allows users to design experiments remotely and upload workflows when the system is available, maximizing instrument pipeline. That is a real practical advantage for labs running multiple back-to-back experiments.

Speaker #4: What makes the DTX strategically important is its full compatibility with the rest of the expert platform. A researcher can optimize a process on the DTX and discovery and transfer it directly to MAXCYTE's larger scale electroporation instruments, the STX or GTX, for scale-up into CGMP-compliant manufacturing without reoptimization.

Maher Masoud: Consistent with the preliminary financials we announced in January, MaxCyte reported $33 million of total revenue for the full year, which included $29.6 million of core revenue and $3.4 million of strategic platform license program-related revenue. We grew our instrument install base to 857, up from 760 at the end of 2024. Doug will discuss Q4 and full year performance in greater detail, but MaxCyte's results were within the range of expectations that we had updated you with in August. As previously discussed, the business was impacted by program consolidation and rationalization across some of our SPL customers, which included a 15% decline in purchases and leases from our largest customer reorganizing manufacturing and managing inventory.

Speaker #4: That is a powerful value proposition which allows us to engage with customers at the very earliest stage of their workflow and provide a seamless path from discovery through to the clinic and commercialization.

Speaker #4: All on a single platform, which is an epitome of a therapeutic platform. We built this product around our customers' needs, and we believe it will be added to both instrument and processing assembly, PAs, revenue in 2026 and beyond, as well as allow us to grow our SPL customers.

Speaker #4: We have built years of electroporation know-how and expertise into the DTX, and I am confident we launch a product that will allow researchers to seamlessly progress from discovery to the clinic onto our GMP expert platform.

Maher Masoud: Now, I want to give you a little more detail on the launch of our new ExPERT DTx, which I mentioned earlier, and I'm very excited to discuss. Even as we face headwinds in 2025, our focus remained on innovation and leading the market with groundbreaking platforms. In February, we announced the launch of the ExPERT DTx, a modular 96-well electroporation platform designed for research and drug discovery applications. We are very excited about what this product represents for MaxCyte. The DTx enables labs to transfect primary cells and cell lines across up to 96 samples in a single 3-minute run, with consistent well-to-well performance that effectively eliminates transfection as an experimental variable.

Speaker #4: Turning to our guidance, as we enter 2026, the challenges that impacted growth in 2025 will have an impact on the first half of 2026.

Speaker #4: For our 2026 guidance, we expect total revenue to be in the range of $30 to $32 million, consisting of $25 to $27 million of core revenue, and $5 million of SPL program-related revenue.

Speaker #4: Given the timing of purchases and leases, we expect Q1 to be our lightest quarter for core revenue, with a back-half weighted year. Included in our guidance is the impact of a recent customer terminating their license for reasons unrelated to our platform's performance.

Maher Masoud: It is one of the most cost-effective 96-well electroporation solutions on the market, with detachable 8-well strips that can be processed with unique parameters, giving researchers the flexibility to test different cell and cargo combinations in parallel while reducing waste. This software is also differentiated. DTx Designer allows users to design experiments remotely and upload workflows when the system is available, maximizing instrument pipeline. That is a real practical advantage for labs running multiple back-to-back experiments. What makes the DTx strategically important is its full compatibility with the rest of the ExPERT platform. A researcher can optimize a process on the DTx in discovery and transfer it directly to MaxCyte's larger scale electroporation instruments, the STx or GTx, for scale into cGMP compliant manufacturing without re-optimization.

Speaker #4: Along with the approximately $4 million in core revenue headwind from select SPL customers, which began to impact our revenue in the second half of 2025, which Al will provide further detail on.

Speaker #4: We continue to believe that the headwinds facing our business are a result of the conservation of capital by BioNTech and the cell therapy space, rationalization of customer programs and ex-vivo cell therapy, and inventory management at our largest customer, which we expect to stabilize in the second half of 2026 and grow from that new base.

Speaker #4: There has been no fundamental change in the demand for our technology and the differentiation of our technology competitively. While these short-term headwinds influenced our revenues last year and the first half of this year, we are more excited than ever about our SPL programs and the business model, which is seeing multiple programs progressing deep into the clinic and much closer to potential commercialization.

Maher Masoud: That is a powerful value proposition, which allows us to engage with customers at the very earliest stage of their workflow and provide a seamless path from discovery through to the clinic and commercialization, all on a single platform, which is an epitome of a therapeutic platform. We built this product around our customers' needs, and we believe it will be added to both instrument and processing assembly, PAs, revenue in 2026 and beyond, as well as allow us to grow our SPL customers. We have built years of electroporation know-how and expertise into the DTx, and I am confident we launched a product that will allow researchers to seamlessly progress from discovery to the clinic onto our GMP ExPERT GTx platform. Turning to our guidance.

Speaker #4: As I mentioned, embedded within the core revenue guidance, we expect revenue from SPL customers, including our largest customer, to be a $4 million headwind relative to 2025.

Speaker #4: This is about half from processing assemblies, and half from leases, and a result of two factors. First, our largest customer reorganized our supply chain in 2025, impacting inventory management of PAs.

Speaker #4: Additionally, in 2025, due to manufacturing site reorganization, there was a reduction in leases mid-year, so the full-year lease revenue for this customer has a difficult comparison to last year.

Maher Masoud: As we enter 2026, the challenges that impacted growth in 2025 will have an impact on the H1 of 2026. For our 2026 guidance, we expect total revenue to be in the range of $30 to 32 million, consisting of $25 to 27 million of core revenue and $5 million of SPL program-related revenue. Given the timing of purchases and leases, we expect Q1 to be our lightest quarter for core revenue with a back half weighted year.

Speaker #4: Following in-depth conversations with this customer, we expect both PAs and leases will stabilize during the first half of 2026. Second, other SPL customers rationalize programs in 2025.

Speaker #4: On a net basis, we lost six SPL clinical programs during the year. The annualized revenue from the discontinued programs, including leases and PAs, will not recur in 2026, reflecting the headwind mentioned earlier.

Maher Masoud: Included in our guidance is the impact of a recent notice received from an SPL customer terminating their license for reasons unrelated to our platform's performance, along with approximately $4 million in core revenue headwind from select SPL customers, which began to impact our revenue in H2 2025, which I will provide further detail on. We continue to believe that the headwinds facing our business are a result of the conservation of capital by biotechs in the cell therapy space, rationalization of customer programs in ex vivo cell therapy, and inventory management at our largest customer, which we expect to stabilize in H2 2026 and grow from that new base. There has been no fundamental change in the demand for our technology and the differentiation of our technology competitively.

Speaker #4: The 12 clinical programs we currently support are across 11 SPL partners, highlighting continued investment in the lead asset. This rationalization is part of our business model, as we expect a certain number of BioNTech programs to discontinue.

Speaker #4: But we are consistently signing new SPLs and supporting later-stage clinical programs which will eventually be commercialized utilizing our platform. In the last 24 months, we signed 10 new SPLs and are now supporting more later-stage programs than ever.

Speaker #4: Also, embedded within our core revenue guidance, we expect revenue growth from non-SPL customers, which is inclusive of growth from security apps. With regards to SPL program-related revenue, as I shared, we are guiding to $5 million in 2026.

Maher Masoud: While these short-term headwinds influenced our revenues last year and H1 of this year, we are more excited than ever about our SPL programs and the business model, which is seeing multiple programs progressing deep into the clinic and much closer potential commercialization. As I mentioned, embedded within the core revenue guidance, we expect revenue from SPL customers, including our largest customer, to be a $4 million headwind relative to 2025. This is about half from processing assemblies and half from leases and a result of two factors. First, our largest customer reorganized their supply chain in 2025, impacting the inventory management of PAs. Additionally, in 2025, due to manufacturing site reorganization, there was a reduction in leases mid-year. The full year lease revenue for this customer has a difficult comparison to last year.

Speaker #4: Note, we received a seven-figure milestone payment from a clinical customer that began dosing patients in a pivotal study in the first quarter. The balance of the SPL program-related revenue guidance includes approximately $2 million of expected royalty revenue from our commercial-stage customer as the therapy ramps throughout the year.

Speaker #4: Despite these near-term headwinds, we are very encouraged by the medium-term opportunity for five clinical programs to enter pivotal studies over the next 18 months and potentially receive commercial approval in 2027 or 2028.

Speaker #4: As I mentioned, one of these five programs began dosing patients in its pivotal study in the first quarter of 2026, triggering the milestone payment I referenced earlier.

Speaker #4: These programs include ZuGaCell from CRISPR Therapeutics, for B-cell malignancies; WuCAR R T007 from WuGen, for hematologic malignancies; AngelCell from Imugene, for hematologic malignancies; and two programs from undisclosed SPL partners.

Maher Masoud: Following in-depth conversations with this customer, we expect both PAs and leases will stabilize during H1 2026. Second, other SPL customers rationalized programs in 2025. On a net basis, we lost 6 SPL clinical programs during the year. The annualized revenue from the discontinued programs, including leases and PAs, will not recur in 2026, reflecting the headwind mentioned earlier. The 12 clinical programs we currently support are across 11 SPL partners, highlighting continued investment on the lead asset. This rationalization is part of our business model as we expect a certain number of biotech programs to discontinue. We are consistently signing new SPLs and supporting later stage clinical programs which will eventually be commercialized utilizing our platform. In the last 24 months, we've signed 10 new SPLs and are now supporting more later stage programs than ever.

Speaker #4: I believe up to four of these programs will be pivotal by the end of the year. Outside the Wave 2 programs I just covered, there are another seven active clinical programs in earlier stages of development that continue to pursue FDA approval beyond 2028 and can represent meaningful core revenue and SPL program-related revenue for MaxCyte over time.

Speaker #4: Across these programs, the total milestone opportunity exceeds $110 million. To date, we have received over $30 million in total milestone payments from our SPL customers.

Speaker #4: Highlighting the strength of our portfolio-based, program-driven business model. We have 31 SPL agreements, including four new SPLs in 2025. Eleven SPL customers we work with have current clinical or commercial programs, while another eight are active in preclinical development, most of which we believe will become clinical SPL customers.

Maher Masoud: Also embedded within our core revenue guidance, we expect revenue growth from non-SPL customers, which is inclusive of growth from SeQure Dx. With regards to SPL program layer revenue, as I shared, we are guided to $5 million in 2026. Note, we received a seven-figure milestone payment from a clinical customer that began dosing patients in a pivotal study in the first quarter. The balance of the SPL program layer revenue guidance includes approximately $2 million of expected royalty revenue from a commercial stage customer as the therapy ramps throughout the year. Despite these near-term headwinds, we are very encouraged by the medium-term opportunity for five clinical programs to enter pivotal studies over the next 18 months and potentially receive commercial approval in 2027 or 2028.

Speaker #4: However, 12 of the SPL agreements are with BioNTech's that are no longer active, having exited ex vivo or ceased operations. The 12th are no longer active as part of our business model, as we don't expect every SPL we sign to result in a commercial program.

Speaker #4: There is meaningful revenue opportunity from newer SPL customers advancing toward and entering the clinic. As I mentioned earlier, despite significant consolidation in 2025, SPL customers continue to advance assets on our platform, including up to six programs in late-stage preclinical development expected to enter the clinic within the next 6 to 18 months.

Speaker #4: This reflects continued expansion of our SPL portfolio beyond our current later-stage programs. Today, we support one commercial therapy, Casgevy, and we remain very encouraged by the opportunity for the drug to continue to scale.

Maher Masoud: As I mentioned, one of these five programs began dosing patients in its pivotal study in Q1 2026, triggering the milestone payment I referenced earlier. These programs include CTX130 from CRISPR Therapeutics for B-cell malignancies, WU-CART-007 from WuXi for hematologic malignancies, azer-cel from Imugene for hematologic malignancies, and two programs from undisclosed SPL partners. I believe up to four of these programs will be pivotal by the end of the year. Outside the wave two programs I just covered, there are another seven active clinical programs in earlier stages of development that continue to pursue FDA approval beyond 2028 and can represent meaningful core revenue and SPL program-related revenue for MaxCyte over time. Across these programs, the total milestone opportunity exceeds $110 million.

Speaker #4: With both Vertex and CRISPR recently reiterating Casgevy's multi-billion dollar potential, during Vertex's most recent earnings call, they reported $116 million in Casgevy revenue for 2025, including $54 million in the fourth quarter.

Speaker #4: Vertex noted that 147 patients with sickle cell disease or transfusion-dependent beta thalassemia globally had their first cell collections in 2025, and 64 patients received Casgevy infusions, with 30 of those occurring in the fourth quarter.

Speaker #4: The momentum in patient collections is notable. And Vertex has indicated that they expect a meaningful Casgevy ramp into 2026 versus 2025. Despite the possibility of short-term quarter-to-quarter variability as the drug scales, we are optimistic about where this therapy is headed and truly believe in its transformative potential for patients around the world.

Maher Masoud: To date, we have received over $30 million in total milestone payments from our SPL customers, highlighting the strength of our portfolio-based, program-driven business model. We have 31 SPL agreements, including 4 new SPLs in 2025. 11 SPL customers we work with have current clinical or commercial programs, while another 8 are active on preclinical development, most of which we believe will become clinical SPL customers. However, 12 of the SPL agreements are with biotechs that are no longer active, having exited ex vivo or ceased operations. The 12 that are no longer active is part of our business model, as we don't expect every SPL we sign to result in a commercial program. There is meaningful revenue opportunity from newer SPL customers advancing toward and entering the clinic.

Speaker #4: To wrap up on the SPL portfolio, while any individual program carries risk, the multiple shots on goal we have across the same indications and across many different indications gives us a high probability of generating meaningful core revenue, regulatory milestones, and commercial revenues over time.

Speaker #4: We are now seeing the growth in commercial royalty starting to materialize in our revenue line. This reflects the strength of our innovative business model, and we expect this trend to continue in the coming years as additional therapies are commercialized by our SPL customers.

Speaker #4: That conviction is what drives the decisions we make about how to operate this business. Moving to security apps, I believe 2026 is the year where the secure opportunity starts to become more visible.

Maher Masoud: As I mentioned earlier, despite significant consolidation in 2025, SPL customers continued to advance assets on our platform, including up to six programs in late-stage preclinical development expected to enter the clinic within the next six to 18 months. This reflects continued expansion of our SPL portfolio beyond our current later-stage programs. Today, we support one commercial therapy, CASGEVY, and we remain very encouraged by the opportunity for the drug to continue to scale, with both Vertex and CRISPR recently reiterating CASGEVY's multi-billion dollar potential. During Vertex's most recent earnings call, they reported $116 million in CASGEVY revenue for 2025, including $54 million in Q4.

Speaker #4: We spent 2025 integrating the business, building the commercial pipeline, and working with early customers. The regulatory environment continues to evolve in our favor. Off-target risk assessment is becoming increasingly important to the FDA and other global regulatory agencies when reviewing gene-edited therapies.

Speaker #4: Our three assays—screening, nomination, and confirmation—serve both ex vivo and in vivo developers. Which means Secure's addressable market extends well beyond our legacy electroporation customer base.

Speaker #4: We acquired a relatively new startup with an emerging and leading technology. Despite 2025 coming in lower than expectations, we expect year-over-year growth for secure assay services and licenses in 2026.

Maher Masoud: Vertex noted that 147 patients with sickle cell disease or transfusion-dependent beta thalassemia globally had their first cell collections in 2025, and 64 patients received CASGEVY infusions, with 30 of those occurring in Q4. The momentum in patient collections is notable, and Vertex has indicated they expect a meaningful CASGEVY ramp into 2026 versus 2025. Despite the possibility of short-term quarter-to-quarter variability as the drug scales, we are optimistic about where this therapy is headed and truly believe in its transformative potential for patients around the world. To wrap up on the SPL portfolio, while any individual program carries risk, the multiple shots on goal we have across the same indications and across many different indications gives us a high probability of generating meaningful core revenue with regulatory milestones and commercial revenues over time.

Speaker #4: I remain very optimistic about Secure's commercial potential and expect to see it become a growing contributor to revenue in the years ahead. I want to underscore that we are entering 2026 with a fundamentally different cost structure than in prior years.

Speaker #4: While we are still investing at a rate that allows us to launch new products like Expert DTX, we have reduced annual cash burn by over $16 million, and have put MaxCyte on a dramatically different spending trajectory than was planned in the prior operating model.

Speaker #4: This is the direct result of the restructuring and cost efficiencies actions we took in 2025. We do not expect a meaningful growth to meaningfully grow our operating expenses from here, and we see a clear path reducing cash burn further as revenue grows growth returns.

Speaker #4: We have a strong and healthy balance sheet, which allows us flexibility in capital allocation and investment decisions. Finally, as previously announced, Maher Masoud will be joining MaxCyte as chief financial officer, succeeding Doug Swirsky effective March 30.

Maher Masoud: We are now seeing the growth in commercial royalties starting to materialize in our revenue line. This reflects the strength of our innovative business model, and we expect this trend to continue in the coming years as additional therapies are commercialized by our SPL customers. That conviction is what drives the decisions we make about how to operate this business. Moving to SeQure Dx, I believe 2026 is the year where the SeQure opportunity starts to become more visible. We spent 2025 integrating the business, building the commercial pipeline, and working with early customers. The regulatory environment continues to evolve in our favor. Off-target risk assessment is becoming increasingly important to the FDA and other global regulatory agencies when reviewing gene-edited therapies.

Speaker #4: Part of me brings more than two decades of finance leadership experience at Agilent Technologies, a global life sciences tools company. Over his career there, he held a number of senior roles spanning financial planning and analysis, operational finance, internal audit, and enterprise financial services.

Speaker #4: In particular, he led FP&A for Agilent's global operations and supply chain organization, and earlier headed internal audit and SOX, working directly with the board's audit committee on risk and controls.

Speaker #4: Parmeet also most recently led Agilent's investor relations function, giving him direct experience communicating with the investment community. We are excited about the breadth of his operational, finance, and governance experience as we continue to scale the company and strengthen our financial infrastructure.

Maher Masoud: Our three assays, screening, nomination, and confirmation, serve both ex vivo and in vivo developers, which means SeQure's addressable market extends well beyond our legacy electroporation customer base. We acquired a relatively new startup with an emerging and leading technology. Despite 2025 coming in lower than expectations, we expect year-over-year growth for SeQure assay services and licenses in 2026. I remain very optimistic about SeQure's commercial potential and expect it to be a growing contributor to revenue in the years ahead. I want to underscore that we are entering 2026 with a fundamentally different cost structure than in prior years.

Speaker #4: I want to thank Doug for his contributions to MaxCyte, and I will now turn the call to Doug to discuss our financial results. Doug?

Speaker #2: Thank you, Maher. Total revenue for the full year was $33 million, compared to $38.6 million in 2024, representing a 15% decline. Total revenue in the fourth quarter of 2025 was $7.3 million, compared to $8.7 million in the fourth quarter of 2024, representing a 16% decline.

Maher Masoud: While we are still investing at a rate that allows us to launch new products like ExPERT DTx, we have reduced annual cash burn by over $16 million and have put MaxCyte on a dramatically different spending trajectory than was planned in the prior operating model. This is the direct result of the restructuring and cost efficiencies actions we took in 2025. We do not expect to meaningfully grow our operating expenses from here, and we see a clear path to reducing cash burn further as revenue growth returns. We have a strong and healthy balance sheet, which allows us flexibility in capital allocation and investment decisions. Finally, as previously announced, Parmeet Ahuja will be joining MaxCyte as Chief Financial Officer, succeeding Doug Swirsky, effective 30 March 2025.

Speaker #2: The decline in total revenue was driven by decreases in both core revenue and SPL program-related revenue. In the fourth quarter of 2025, we reported core revenue of $6.8 million, compared to $8.6 million in the comparable prior-year quarter, representing a decrease of 22%.

Speaker #2: Within core revenue, instrument revenue was $1.8 million, compared to $1.6 million in the fourth quarter of 2024. License revenue was $2.0 million, compared to $2.6 million in the fourth quarter of 2024, and PA revenue was $2.3 million, compared to $4.2 million in the fourth quarter of 2024.

Speaker #2: For the full year of 2025, we reported core revenue of $29.6 million, compared to $32.5 million in 2024, representing a decrease of 9%. Within core revenue, instrument revenue was $6.8 million, compared to $7.1 million in 2024.

Maher Masoud: Parmeet brings more than two decades of finance leadership experience at Agilent Technologies, a global life sciences tools company. Over his career there, he held a number of senior roles spanning financial planning and analysis, operational finance, internal audit, and enterprise financial services. In particular, he led FP&A for Agilent's global operations and supply chain organization, and earlier, headed internal audit and SOX, working directly with the board's audit committee on risk and controls. Parmeet also most recently led Agilent's investor relations function, giving him direct experience communicating with the investment community. We are excited about the breadth of his operational finance and governance experience as we continue to scale the company and strengthen our financial infrastructure. I want to thank Doug for his contributions to MaxCyte, and I will now turn the call over to Doug to discuss our financial results. Doug?

Speaker #2: License revenue was $8.9 million, compared to $10.3 million in 2024, and PA revenue was $11.9 million, compared to $14.0 million in 2024. These declines were partially offset by $0.8 million of assay service revenue from the acquisition of Secure DX and a modest increase in other service revenue.

Speaker #2: Total revenue for Secure was $1.1 million in 2025, including assay services and licenses. Of note, 47% of our core business revenue was derived from SPL customers in 2025, which compares to 55% in 2024.

Douglas Swirsky: Thank you, Maher. Total revenue for the full year was $33 million compared to $38.6 million in 2024, representing a 15% decline. Total revenue in the Q4 of 2025 was $7.3 million compared to $8.7 million in the Q4 of 2024, representing a 16% decline. The decline in total revenue was driven by decreases in both core revenue and SPL program-related revenue. In the Q4 of 2025, we reported core revenue of $6.8 million compared to $8.6 million in the comparable prior year quarter, representing a decrease of 22%. Within core revenue, instrument revenue was $1.8 million, compared to $1.6 million in the Q4 of 2024.

Speaker #2: The year-over-year decrease reflects the impact of program exits and reduced purchasing activity from our large commercial-stage partner. SPL program-related revenue was $0.5 million in the fourth quarter of 2025, compared to $0.1 million in the fourth quarter of 2024.

Speaker #2: For the full year, SPL program-related revenue was $3.4 million as compared to $6.1 million in 2024. As it relates to SPL program-related revenue for 2025, $2.3 million was from milestone payments and $1.2 million was from royalties.

Speaker #2: Moving down the P&L, gross margin was 78% in the fourth quarter of 2025, compared to 74% in the fourth quarter of 2024. Excluding inventory provisions and SPL program-related revenue, non-GAAP adjusted gross margin was 78% in the fourth quarter of 2025, compared to non-GAAP adjusted gross margin of 84% in the fourth quarter of 2024.

Douglas Swirsky: License revenue was $2 million compared to $2.6 million in Q4 2024, and PA revenue was $2.3 million compared to $4.2 million in Q4 2024. For the full year 2025, we reported core revenue of $29.6 million compared to $32.5 million in 2024, representing a decrease of 9%. Within core revenue, instrument revenue was $6.8 million compared to $7.1 million in 2024. License revenue was $8.9 million compared to $10.3 million in 2024, and PA revenue was $11.9 million compared to $14 million in 2024.

Speaker #2: Total operating expenses for the fourth quarter of 2025 were $16.9 million, compared to $19.3 million in the fourth quarter of 2024. Part of these savings is attributable to the cost initiatives we took in 2025, which began to materialize in Q4 of 2025.

Speaker #2: Excluding a non-cash goodwill impairment of $3.6 million in the fourth quarter, operating expenses decreased more substantially from the prior-year quarter. The overall decrease in operating expenses was primarily driven by the restructuring and cost efficiency actions we took in 2025.

Douglas Swirsky: These declines were partially offset by $0.8 million of assay service revenue from the acquisition of SeQure Dx and a modest increase in other service revenue. Total revenue for SeQure Dx was $1.1 million in 2025, including assay services and licenses. Of note, 47% of our core business revenue was derived from SPL customers in 2025, which compares to 55% in 2024. The year-over-year decrease reflects the impact of program exits and reduced purchasing activity from our large commercial stage partner. SPL program-related revenue was $0.5 million in the Q4 of 2025, compared to $0.1 million in the Q4 of 2024. For the full year, SPL program-related revenue was $3.4 million as compared to $6.1 million in 2024.

Speaker #2: We ended 2025 with a combined total of cash, cash equivalents, and investments of $155.6 million, and no debt. Our very strong balance sheet positions us well moving forward, providing us with flexibility to continue to invest strategically for our business, customers, and shareholders.

Speaker #2: Finally, we anticipate at least $136 million in cash equivalents and investments at the end of 2026. This represents a significant reduction in cash burn from prior years, as a result of the restructuring and cost efficiency actions we took in 2025.

Speaker #2: Let me close my remarks by saying it has been a privilege to serve as MaxCyte CFO, and I know that the company is in good hands with Maher and the rest of the team, including Parmeet.

Douglas Swirsky: As it relates to SPL program-related revenue for 2025, $2.3 million was from milestone payments and $1.2 million was from royalties. Moving down the P&L, gross margin was 78% in Q4 2025 compared to 74% in Q4 2024. Excluding inventory provisions into SPL program-related revenue, non-GAAP adjusted gross margin was 78% in Q4 2025 compared to non-GAAP adjusted gross margin of 84% in Q4 2024. Total operating expenses for Q4 2025 were $16.9 million, compared to $19.3 million in Q4 2024.

Speaker #2: Now I'll turn the call back over to Maher.

Speaker #3: Thank you, Doug. It's been a privilege to have you as our CFO as well. I want to thank everyone at MaxCyte for their hard work and dedication in 2025.

Speaker #3: I look forward to executing on our plan in 2026. With that, I will turn the call back over to the operator for the Q&A.

Speaker #3: Operator?

Speaker #4: Thank you so much. And as a reminder, to ask a question, simply press *11 to get in the queue and wait for your name to be announced.

Speaker #4: To withdraw yourself, press star one one again. One moment for our first question. It comes from the line of Dan Arias with Stifel. Please proceed.

Speaker #5: Hi, guys. Thanks for the questions. Maher, I got to say, I really don't understand the trajectory of the business right now. Pretty much all the commentary coming out of the life sciences companies points to biopharma getting better this year, and not worse.

Douglas Swirsky: Part of these savings is attributable to the cost initiatives we took in 2025, which began to materialize in Q4 of 2025. Excluding a non-cash goodwill impairment of $3.6 million in Q4, operating expenses decreased more substantially from the prior year quarter. The overall decrease in operating expenses was primarily driven by the restructuring and cost efficiency actions we took in 2025. We ended 2025 with combined total cash and cash equivalents and investments of $155.6 million and no debt. Our very strong balance sheet positions us well moving forward, providing us with flexibility to continue to invest strategically for our business, customers, and shareholders. Finally, we anticipate at least $136 million in cash equivalents, and investments at the end of 2026.

Speaker #5: Our data points, and others, seem to suggest the same. When you look at the industry data that’s out there on the emerging modality space, cell therapy trial activity seems to be increasing pretty significantly.

Speaker #5: Trial totals are way up. And so I appreciate the idea that there's some hangover from a tough '25, but why is the core business expected to decline more this year than it did last year?

Speaker #5: Are you losing share somewhere? Because if not, then it really kind of suggests that there's something else going on that we don't really fully understand.

Speaker #5: And then ultimately, the question becomes: How do you grow this business again?

Speaker #3: Yeah, I mean, thanks for that, Dan. Look, I appreciate the question and kind of the head-scratch. You really were facing a $4 million, and it comes down to—it's not a deterioration of our business in any way.

Douglas Swirsky: This represents a significant reduction in cash burn from prior years as a result of the restructuring and cost efficiency actions we took in 2025. Let me close my remarks by saying it's been a privilege to serve as MaxCyte CFO, and I know that the company is in good hands with Maher and the rest of the team, including Parmeet. Now I'll turn the call back over to Maher.

Speaker #3: It's not a change in the fundamentals of our business in any way. We have about $4 million headwind that we face from the customers that we lost last year.

Speaker #3: That's affecting our revenues this year, and most of it is in the first half of the year. So that comes, as I mentioned, it comes pretty much half-half.

Speaker #3: Half from the leases that we lost from those SPL customers—that will not recur this year. And the other half really is from processing assemblies, a lot of it being from our largest customer that went through a management and inventory management of their current PAs that they have on stock, where they're drawing down from those PAs.

Maher Masoud: Thank you, Doug. It's been a privilege to have you as our CFO as well. I want to thank everyone at MaxCyte for their hard work and dedication in 2025. I look forward to executing on our plan in 2026. With that, I will turn the call back over to the operator for the Q&A. Operator?

Operator: Thank you so much. As a reminder to ask a question, simply press star one one to get in the queue and wait for your name to be announced. To withdraw yourself, press star one one again. One moment for our first question. Comes from the line of Dan Arias with Stifel. Please proceed.

Speaker #3: And the other half is just from mid-year; we lost some licenses for that largest customer where they re-optimized their manufacturing footprint to go from a few manufacturing sites to a little bit less than that.

Speaker #3: And that's affected our revenues for 2026. This is not a case of capital spending in the market that's affecting us. I think we saw that more so in early '25.

Dan Arias: Hi, guys. Thanks for the questions. Maher, I gotta say, I really don't understand the trajectory of the business right now. Pretty much all the commentary coming out of the life sciences companies points to biopharma getting better this year, not worse. Our data points and others seem to suggest the same. When you look at the industry data that's out there on the emerging modality space, cell therapy trial activity seems to be increasing pretty significantly. Trial totals are way up. You know, I appreciate the idea that there's some hangover from a tough 25, but why is the core business expected to decline more this year than it did last year? Are you losing share somewhere? Because if not, then it really kind of suggests that there's something else going on that we don't really fully understand.

Speaker #3: That's not the case here. I really believe that this is just short-term headwinds, and in terms of where we see the rest of the year and going into '27, '28—Dan, look, if you take a step back, we believe, I believe, we're going to be supporting roughly four pivotal stage programs this year.

Speaker #3: And then five in the next 12 months. We have another seven behind it as well coming in right now that potentially can become pivotal as a second wave there.

Speaker #3: That bodes extremely well for '27, 2027, and 2028. We also have the launch of the Expert DTX. As I mentioned, we're seeing a lot of good traction.

Speaker #3: We launched it less than a month ago. We're seeing a lot of good traction with customers and potential customers we believe will be a growth driver for us in the second half and in future years.

Speaker #3: In addition to that, we're seeing the ramp of cash-heavy. I mean, as I mentioned, we expect to ramp throughout the year. That's the only commercial product we're supporting now, but we expect to support many others, especially because right now, as I mentioned, we are supporting more later-stage programs than ever before, Dan.

Dan Arias: Ultimately the question becomes: how do you grow this business again?

Maher Masoud: Yeah, I mean, thanks for that, Dan. Look, I appreciate the question and kind of the head scratcher. Really, the headwinds we're facing is $4 million, and it comes down to it's not a deterioration of our business in any way. It's not a change in the fundamentals of our business in any way. We have about $4 million headwind that we face from the customers that we lost last year that's affecting our revenues this year, and most of it is in the H1. That comes, as I mentioned, pretty much half. Half from the leases that we lost from those SPL customers that will not recur this year.

Speaker #3: So this bodes very well for us going into the end of the year and in '27 and '28. We're continuing to sign new SPLs.

Speaker #3: We feel confident we continue to sign new SPLs. I feel very good about this, Dan.

Speaker #5: Does the outlook for core revenues assume that the industry demand dynamic improves over the course of the year? Or would that be upside to what you have baked in today?

Maher Masoud: The other half really is from processing assemblies. A lot of it being from our largest customer that went through, you know, an inventory management of their current PAs that they have on stock, where they're drawn down from those PAs. That's just from, you know, mid-year, we lost some licenses for that largest customer where they reoptimized their manufacturing footprint to go from, you know, a few manufacturing sites to a little bit less than that. That's affected our revenues for 2026. This is not a case of capital spending in the market that's affecting us. I think we saw that more so in early 2025. That's not the case here. I really believe that this is just, you know, short-term headwinds.

Speaker #5: In other words, is your forecue outlook at the industry level similar to what you have today? Exiting out the individual customer dynamics that you referenced there.

Speaker #3: No, I think the so that would be upside to what we have right now. So this is not a case where we're waiting for industry dynamics to come back for us to meet our core revenue guidance.

Speaker #3: That will all be upside from here, Dan. I mean, I feel very good where we are to meet the current guidance with the current situation we're in right now.

Speaker #3: If there's further industry demand, that's upside from where we're guiding to this year.

Speaker #5: Okay. Thank you.

Speaker #3: Yeah. Thank you, Dan.

Speaker #4: Thank you. Our next question comes from the line of Matt Hewitt with Craig-Hallum Capital Group. Please proceed.

Maher Masoud: In terms of where we see the rest of the year and going to 2027, 2028, Dan. Look, if you take a step back, we believe, I believe we're going to be supporting roughly 4, you know, pivotal stage programs this year and then 5 in the next 12 months. We have another 7 behind it as well coming in right now that potentially come to become pivotal as a second wave there. That bodes extremely well for 2027 and 2028. We also have the launch of the ExPERT DTx, as I mentioned. We're seeing a lot of good traction. We launched it less than a month ago. We're seeing a lot of good traction with customers and potential customers.

Speaker #6: Good afternoon. And Doug, it's been a pleasure working with you, and best of luck in your future endeavors. Maybe first up, could you talk—I realize you just launched it last month.

Speaker #6: But given that this was built, the DTX that is was built, with the customer in mind, I assume that you had been working with them or at least they had maybe trialed it or kicked the tires a little bit.

Speaker #6: What does that pipeline look like? And how quickly do you think you could see that start to trickle into the revenues?

Speaker #3: Yeah, I mean, so we see it trickling into revenues in the second half. Anytime we launch a new product, you need about a quarter to two quarters to really build up the pipeline for that product.

Maher Masoud: We believe it'll be a growth driver for us in H2 into future years. In addition to that, we're seeing the ramp of CASGEVY. I mean, as I mentioned, we expect to ramp throughout the year. That's the only commercial program we're supporting now, but we expect to support many others, especially because right now, as I mentioned, we are supporting more later stage programs than ever before, Dan. This bodes very well for us going into the end of the year and in 2027 and 2028. We're continuing to sign new SPLs. We feel confident to continue to sign new SPLs. I feel very good about this, Dan.

Speaker #3: That's any product you launch. But it's already in the hands of multiple beta users. It has been in the hands of multiple beta users.

Speaker #3: When we launched this product, we did it the right way. We actually listened to our customers' needs. We went through the typical MPDI process, where we understand the user criteria, the customer criteria, the application criteria, and we built it with that in mind.

Speaker #3: So we see this trickling starting in the second half. But we all started seeing, right now, some DTXs being sold right now in the first quarter before it's even over.

Dan Arias: Does the outlook for core revenues assume that the industry demand dynamic improves over the course of the year? Or would that be upside to what you have baked in today? In other words, is your Q4 outlook at the industry level similar to what you have today, exing out the individual customer dynamics that you referenced there?

Speaker #3: So it's obviously starting to make traction there as well, Matt. But we see significant traction happening in the second half, and then in future years as well.

Speaker #3: I feel very good where it is. I mean, it really is a platform that allows us to go from, no one has this. You can actually go from discovery all the way to CGMP with the same protocols. That is a true therapeutic platform that none of our competition has.

Maher Masoud: No, I think, you know, that would be upside to what we have right now. This is not a case where we're waiting for industry dynamics to come back for us to meet our core revenue guidance. That will all be upside from here, Dan. I mean, I feel very good where we are to meet the current guidance with the current situation we're in right now. If there's further industry demand, that's upside from what we're guiding to this year.

Speaker #5: Got it. And then, maybe just a reminder—given that you’ve got four partners that could be going into pivotal studies this year, how do you account for or how do you factor that into your guidance?

Speaker #5: What kind of a haircut do you take on those the potential for those milestones? Thank you.

Dan Arias: Okay, thank you.

Maher Masoud: Yeah. Thank you, Dan.

Speaker #3: Yeah, yeah. Thanks, Matt. So, I mean, obviously, we already received one milestone—a seven-figure milestone—in Q1 this year. You can haircut it by saying there might be at least one more, but we anticipate four more.

Operator: Thank you. Our next question comes from the line of Matt Hewitt with Craig-Hallum Capital Group. Please proceed.

Matt Hewitt: Good afternoon, and Doug, it's been a pleasure working with you and best of luck in your future endeavors. Maybe first up, I realize it's you just launched it last month, but given that this was built, the DTx that is, was built with the customer in mind, I assume that you had been working with them or at least they had maybe trialed it or, you know, kicked the tires a little bit. What does that pipeline look like, and how quickly do you think you could see that start to trickle into the revenues?

Speaker #3: One other customer is currently in pivotal, about to dose patients that were resultant, and other milestones as well. So at the very least, looking at two of those four.

Speaker #3: It's more of a timing issue, right? If the remaining two don't come in this year, that's just because those milestones happen in the first quarter or very early part of next year.

Speaker #3: But that's how you would haircut it. At the very least, it'll be two of those four, but potential for four this year. In terms of.

Speaker #5: Got it. Understood. Thank you.

Maher Masoud: Yeah, I mean, we see it trickling into revenues in H2. Anytime you launch a new product, you need about a quarter or two quarters to really build out the pipeline for that product. That's any product you launch. It's already in the hands of multiple beta users. When we launched this product, we did it the right way. We actually listened to our customer needs. We, you know, we went through the typical NPD process where we understand the user criteria, the customer criteria, the allocation criteria, and we built it with that in mind.

Speaker #3: Absolutely. Thank you, Matt.

Speaker #4: Thank you. One moment for our next question. That comes from Matt Leroux with William Blair. Please proceed.

Speaker #7: Hi, this is Jacob on for Matt. Thanks for taking the questions here. I just wanted to touch on the SPL cadence. I don't know if you mentioned it on the call, or I didn't hear if you did, but typically, you guide to three to five per year, and you typically have signed or at least announced one by the end of the first quarter.

Maher Masoud: We see this trickling starting in H2, but we all start seeing right now, you know, some DTx is being sold right now in Q1 before it's even over. It's obviously starting to make traction there as well, Matt. We see significant traction happening in H2 and then in future years as well. I feel very good where it is. I mean, it really is a platform that allows us to go from discovery all the way to cGMP with the same protocols. No one has this. You can actually go from discovery all the way to cGMP with the same protocols. That is a true therapeutic platform that none of our competition has.

Speaker #7: I think the last signing was in October of 2025, and biotech funding trends and kind of the whole market environment have really been improving since then—been pretty good.

Speaker #7: So just curious on your visibility, confidence into the cadence of SPL signings throughout 2026, and maybe what you're expecting for this year and in perpetuity.

Speaker #3: Yeah. We've guided three to five in the past. I mean, that's a number where, on average, that's how many we sign on any given year.

Matt Hewitt: Got it. Maybe just a reminder, given that you've got four partners that could be, you know, going into pivotal studies this year, how do you account for, or how do you factor that into your guidance? What kind of a haircut do you take on those, the potential for those milestones? Thank you.

Speaker #3: We feel good about signing at least that three this year as well, and that three-to-five range. But some years we're going to have more than that.

Speaker #3: Some years we’re going to have less than that. We foresee that we’ll sign the first one. I have Sean Bernard here with me. I’m going to put pressure on him.

Speaker #3: Probably in the very early second half of the year, possibly even before that. But I feel very good where we are. I mean, we're still the only company that can sign these licenses, and there's a good reason for it.

Maher Masoud: Thanks, Matt. I mean, obviously, we already received 1 milestone, a seven-figure milestone in Q1 this year. You can haircut it by saying there might be at least 1 more. We anticipate 4 more. 1 other customer is currently in pivotal, about to, you know, dose patients that will result in another milestone as well. At the very least, looking at 2 of those 4, it's more of a timing issue, right? If the remaining 2 don't come in this year, that's just because those milestones happen in Q1 or, you know, very early part of next year. That's how you would haircut it. At the very least, it'll be 2 of those 4, but the potential for 4 this year. In terms of-

Speaker #3: What we provide is a differentiation. What we provide is really a platform that allows companies to go into clinical and commercial, and scale, and have a therapeutic that has the best chance of going through clinical development.

Speaker #3: We've done it with Casgevy. We've signed 31 of these agreements. We signed four last year. I feel very good this year. We'll continue to sign more.

Speaker #3: And do the same with the foreseeable future. The DTX also adds for that. As I mentioned on the call, as I mentioned earlier, the DTX begins to seize that aspect of future SPL partners and customers for us.

Matt Hewitt: Got it. Understood. Thank you.

Maher Masoud: Absolutely. Thank you, Matt.

Speaker #3: So I feel very good where we are. I mean, the timing of the Q1—we haven't signed one. That's just a matter of timing of when we're working with our customers and the research process, not in any way indicative of the reason why we haven't signed one, if that makes sense.

Operator: Thank you. One moment for our next question. That comes from Matt Larew with William Blair. Please proceed.

[Analyst] (William Blair): Hi, this is Jacob on for Matt. Thanks for taking the questions here. I just wanted to touch on the SPL cadence. I don't know if you mentioned on the call or I didn't hear if you did, but typically you guide the 3 to 5 per year, and you typically have signed or at least announced one by the end of Q1. I think the last signing was in October 2025. Biotech funding trends and kind of like the whole market environment has really been improving since then. Been pretty good. Just curious on your visibility, confidence into the cadence of SPL signings throughout 2026 and maybe what you're expecting for this year and perpetuity.

Speaker #3: I mean, I'm going to turn it over to Sean. Sean, is there anything that you have to add in terms of that, where you see the signing?

Speaker #3: I'm putting pressure on you here, but you feel

Speaker #1: We're going to solve this year as well . No , thanks . And thanks for the question , Jacob . And do believe it becomes a timing aspect as well .

Speaker #1: So just for a frame of reference , these aspect turns into our research customers turn into our SPL customers from there . And these can take 1218 months depending on their development stage .

Speaker #1: So it really becomes a timing aspect as well. But we do have lots. Over the past 24 months, we have signed ten SPL partners, almost all of them are in the clinic, or at least even approaching clinic from there.

Speaker #1: So we're looking to continue to add at least three this year.

Maher Masoud: Yeah, you know, we've valued 3 to 5 in the past. I mean, that's a number where, you know, on average, that's how many we sign on any given year. You know, we feel good about, you know, signing at least that 3 this year as well in that 3 to 5 range. You know, 3, some years we're gonna have more than that, some years we're gonna have less than that. You know, we foresee that we'll sign the first one. I have Sean Menarguez here with me. I'm gonna put pressure on him, you know, probably, you know, in the very early first, second half of the year, possibly even before that. I feel very good where we are.

Speaker #2: Got it . Thanks . And I did just want to quickly go back to the launch of the DBT platform . You've covered it in pretty good detail so far .

Speaker #2: It sounds like , you know , feedback traction , early contributions all been really well . But is there any way you could quantify what you're expecting in the back half , or is it more just , you know , kind of a slow trickle and really expect material contributions in 2027 ?

Speaker #1: Yeah . I mean .

Speaker #3: You know , I'll update throughout the year . You know , I don't think it's it's too early in the process . It's been a month since we launched it It'll probably be more than a trickle in the second half .

Maher Masoud: I mean, we're still the only company that can sign these licenses, and there's a good reason for it. What we provide is a differentiator. What we provide is really a platform that allows companies to go into clinical, commercial, and scale and have a therapeutic that has the best chance of going through, you know, clinical development. We've done it with CASGEVY. We've signed 31 of these agreements. We signed 4 last year. I feel very good this year, we'll continue to sign more and do the same in the foreseeable future. The DTx also adds to that. As I mentioned earlier, the DTx begins to see that aspect of future SPL partners and customers for us. I feel very good where we are.

Speaker #3: That's where you begin to see meaningful revenues in the second half. And a lot more so than 2027. You know, but I'll update throughout the year.

Speaker #3: Again , we're seeing very good traction at the beta sites . We're seeing good traction even outside the US You know , we've seen you know , we've seen sales in Asia-pac as well from this .

Speaker #3: It really it's something that we truly believe differentiates us from any other platform . There are similar 96 well , discovery platforms out there , but none that can optimize to a cGMP system like this one can and none that can do it on a well to well basis with the same consistency .

Maher Masoud: I mean, the timing of the Q1, we had to sign one. That's just a matter of timing of when we're working with our customers in the research process, not in any way indicative of, you know, of the reason why we haven't signed one, if that makes sense. I mean, I'm gonna turn it over to Sean. Sean, anything that you have to add in terms of that, where you see the signing? I'm putting pressure on you here, but you feel comfortable we're gonna sign this year as well.

Speaker #3: And really none that can do it where it's where we've built into this , our 20 plus years of operation , know how into this platform to make it streamlined for , for customers .

Speaker #3: So I feel very, very good about this, Jacob. Very good.

Speaker #2: Great to hear . Thanks , guys .

Speaker #3: Absolutely .

Sean Menarguez: Yeah. Thanks, Maher. Thanks for the question, Jacob. I do strongly believe it becomes a timing aspect as well. Just for frame of reference, you know, these aspects turn into our research customers, turn into our SPL customers from there. These can take 12 to 18 months depending on their development stage. Really becomes a timing aspect as well. We do have last 24 months have signed 10 SPL partners. Almost all of them are in the clinic or at least even approaching clinic from there. We look to continue to add that with at least 3 this year.

Speaker #4: Thank you . Our next question comes from Mark Massaro with Btig . Please proceed

Speaker #5: Yes, this is Vivian on for Mark. Thanks for taking the questions. I just had two cleanups on the '26 guide.

Speaker #5: Just what's baked in as far as secure contribution. And then I also think you called out royalty contribution for the first time in the guide.

Speaker #5: So just, could you speak to your level of visibility and confidence in that? Just given it's from a partner therapy? Thanks.

[Analyst] (William Blair): Got it. Thanks. I did just wanna quickly go back to the launch of the DTx platform. You've covered it in pretty good detail so far. It sounds like, you know, feedback, traction, early contributions all been really well. But is there any way you could quantify what you're expecting in the H2, or is it more just, you know, kinda a slow trickle and really expect material contributions in 2027?

Speaker #3: Yeah . So on secure , obviously we don't break it up in terms of , you know , in the guide itself , other than the fact we see , we see material growth year over year for secure in 2026 , for 2025 , significant growth there from what we had last year .

Speaker #3: Obviously, last year's, you know, revenue for Secure was a bit disappointing, but it was part of our integration of Secure.

Speaker #3: We bought our early startup . We're still integrating it , we're still ensuring that we're building out the processes there . And really building out the platform there .

Maher Masoud: Yeah, I mean, you know, I'll update throughout the year. You know, I don't think it's too early in the process. It's been a month since we launched it. It'll probably be more than a trickle in the H2. That's where you begin to see meaningful revenues in the H2 and a lot more so in 2027. You know, I'll update throughout the year. Again, we're seeing very good traction at the beta sites. We're seeing good traction even outside the US. You know, we've seen sales in Asia Pacific as well from this. It's something that we truly believe differentiates us from any other platform.

Speaker #3: So we see meaningful growth this year . That's part of our guide . You know , in terms of the we finally broke out the royalty revenue , there .

Speaker #3: You know , I mentioned earlier , we expect approximately $2 million of revenue from commercial royalty , and that will ramp up throughout the year as that product ramps itself .

Speaker #3: And we feel fairly good about that. I mean, that's based on forecasts we've seen with that product from public forecasts, as well as what we're seeing so far.

Speaker #3: Early this quarter . But you we expect that 2 million over the ramp of the year to happen . And we'll do that continuing from here on out .

Maher Masoud: There are similar 96-well discovery platforms out there, but none that can optimize their cGMP system like this one can, and none that can do it on a well-to-well basis with the same consistency, and really none that can do it where it's where we've built into this our 20+ years of electroporation know-how into this platform to make it streamlined for customers. I feel very, very good about this, Jacob. Very good.

Speaker #3: We'll continue to guide for milestones and royalty on a separate line as well.

Speaker #5: Okay . Perfect . Yeah . And then I just had one follow up kind of higher level . I think you've previously mentioned the dynamic that customers are opting for in vivo therapies or ex vivo .

[Analyst] (William Blair): Great to hear. Thanks, guys.

Speaker #5: So could you discuss how you're seeing opportunity for more complex edits longer term and maybe over what time frame would you expect that customer appetite to sort of transition to ex vivo edits ?

Maher Masoud: Absolutely.

Operator: Thank you. Our next question comes from Mark Massaro with BTIG. Please proceed.

[Analyst] (BTIG): Yes. This is Vivian for Mark. Thanks for taking the questions. I just had two cleanups on the 2026 guide. Just what's baked in as far as SeQure contribution? Then I also think you called out royalty contribution for the first time in the guide. Just could you speak to your level of visibility and confidence in that, just given it's from a partner therapy? Thanks.

Speaker #5: Thanks

Speaker #3: So explained it a bit more . I mean , obviously we're seeing we've been mentioned , we've seen this for years now . We're seeing the complexity of editing increase over the years , right ?

Speaker #3: This is longer . The single base , you know , Car-T therapy . We're now seeing edits of five , six therapies . But I guess what are you alluding to ?

Speaker #3: I just wanna make sure I answered the question correctly

Speaker #5: Yeah, I just mean that you've talked about it being a headwind in the past, that customers are opting for in vivo therapy.

Maher Masoud: Yeah. On SeQure Dx, obviously, you know, we don't break it up in terms of, you know, in the guide itself, other than the fact we see material growth year over year for SeQure Dx in 2026 versus 2025. Significant growth there from what we had last year. Obviously, last year's, you know, revenue for SeQure Dx was a bit disappointing, but it was part of our integration of SeQure Dx. We bought our early startup. We're still integrating it, and we're still ensuring that we're building out the processes there and really building out the platform there. We see meaningful growth this year, and that's part of our guide. In terms of the, you know, we finally broke out the royalty revenue there.

Speaker #5: So just how do you see the longer term opportunity for customer appetite in Erik Abdo ?

Speaker #3: Yeah , yeah , I see what you're getting . So absolutely . I mean , look , we're we're still a huge believer in the ex vivo cell therapy space .

Speaker #3: In fact , we're seeing that start to return as well . You know , in vivo , obviously has , you know , we've had some headwinds there , but we're seeing it .

Speaker #3: You know , if you look at our programs , we have allogeneic programs . We have programs all progressing to cells that we're signing right now .

Maher Masoud: You know, I mentioned, you know, earlier, we expect approximately $2 million of revenue from commercial royalty, and that'll ramp up throughout the year as that product ramps itself. We feel fairly good about that. I mean, that's based on forecasts we've seen with our products from public forecasts as well as what we're seeing so far early this quarter. You know, we expect that $2 million over the ramp of the year to happen. We'll do that continuing from here on out. We'll continue to guide for milestones and royalty on a separate line as well.

Speaker #3: Our cell therapy programs , some of which are even coming back . We're at one point , they were not in the clinic , and now they're coming back to the clinic .

Speaker #3: We're I am a huge believer in cell therapy space . I think as these therapies become far more complex , as we're seeing , it lends itself to cell therapy , especially cell therapy , electroporation .

Speaker #3: You can control the safety. You can control the dosing. The science is catching up, and on top of that, our platforms are built for that.

Speaker #3: That's exactly what it is . So we're seeing we're seeing that come back . That's what makes me feel very good about going into the second half of the year .

Speaker #3: Makes me feel even better about 27 and 20 , 28 . That complexity lends itself to our business and lends itself to what we've built over the last decade , and we're seeing that traction start to come back to cell therapy

[Analyst] (BTIG): Okay, perfect. Yeah. Then I just had one follow-up kinda higher level. I think you've previously mentioned the dynamic that customers are opting for in vivo therapies over ex vivo. Could you discuss how you're seeing opportunity for more complex edits longer term? Maybe over what timeframe would you expect that customer appetite to sort of transition to ex vivo edits? Thanks.

Speaker #5: Okay , perfect . Thanks for taking the questions

Speaker #3: .

Speaker #4: Thank you . Our next question is from Mark with Stephens . Please proceed

Speaker #6: Hey . Good afternoon . Thanks for taking my questions . Maybe to follow up on Dan and Jacob's questions . You know , we have seen us funding pick up for the space in general .

Maher Masoud: Explain it a bit more. I mean, obviously, we've seen this for years now. We're seeing the complexity of editing increase over the years, right? This is no longer a single-based, you know, CAR T therapy. We're now seeing edits on 5, 6 therapies. I guess, what are you alluding to, Vivian? I just wanna make sure I answer your question correctly.

Speaker #6: So I just want to get your sense of what you're hearing from customers in terms of the macro environment, what you're seeing in terms of demand, and how should we think about the recent funding backdrop flowing through potential demand throughout FY26?

Speaker #3: Yeah , yeah , yeah . Great question . That so , you know , obviously , as I mentioned , this is not so much anymore a demand issue or a customer funding issue .

[Analyst] (BTIG): Yeah. I just mean that you've talked about it being a headwind in the past that customers are opting for in vivo therapy. Just how do you see, like, the longer-term opportunity for customer appetite in?

Speaker #3: This is about just the headwinds we saw in that in that affect us in Q1 . This is more of a second half weighted guide that we're giving in that core revenue of 25 to 27 .

[Analyst] (BTIG): ex vivo edits.

Maher Masoud: Yeah. No, yeah, I see what you're getting. Absolutely. I mean, look, we're still a huge believer in the ex vivo cell therapy space. In fact, we're seeing that start to return as well. You know, it's in vivo obviously has you know, we've had some headwinds there, but we're seeing it. You know, if you look at our programs, we have allogeneic programs, we have autologous programs, all progressing. The SPLs that we're signing right now are cell therapy programs, some of which aren't even coming back, where at one point they were not in the clinic and now they're coming back to the clinic. I am a huge believer in cell therapy space. I think as these therapies become far more complex, as we're seeing, it lends itself to cell therapy, especially cell therapy electroporation.

Speaker #3: I mean , look , we're sitting here right now . We're about one week away from quarter end . You know , this is not an official guidance .

Speaker #3: But you know , we look where we are on the core . I feel comfortable that , you know , a 6 million on the core is appropriate for Q1 .

Speaker #3: We see that uptick into Q2, and then being more second-half weighted. And none of that is contingent upon an upside in capital spending or customer demand.

Speaker #3: That's just where we sit right now . So it's I feel extremely good where we are on the guide . I feel good where we are in Q1 .

Speaker #3: You know , this , this is a case of just building back a new base from what we decibel customers that we lost in 25 , we found a new base here , our largest customer , we optimizing , you the processing assemblies and they're drawing down from the inventory .

Maher Masoud: You can control the safety, you can control the dosing, the science is catching up. On top of it, our platforms were built for that. That's exactly what it is. We're seeing that come back. That's what makes me feel very good about going into H2 of the year. It makes me feel even better about 2027 and 2028. That complexity lends itself to our business and it lends itself to what we've built over the last decade. We're seeing that traction start to come back to cell therapy.

Speaker #3: They have. We found a new base there. I feel very good about the year, as it transpires.

Speaker #6: I appreciate it . I'll leave it there for now . Thank you .

Speaker #4: Thank you . And a reminder , if you have a question , please press star one one to get in the queue We have a question from Chad .

Speaker #4: Petrovski with C.D. Cowen. Please proceed.

[Analyst] (BTIG): Okay, perfect. Thanks for taking the questions.

Speaker #7: Hey guys . Congrats . Doug . Look forward to seeing what your plans are going forward . Just one on the DBT . You've mentioned sort of a few orders already flowing through here in the first quarter .

Maher Masoud: Excellent.

Operator: Thank you. Our next question is from Steven Etoch with Stephens. Please proceed.

Steven Etoch: Hey, good afternoon. Thanks for taking my questions. Maybe to follow up on Dan and Jacob's questions. It's, you know, we have seen funding pick up in the space in general. I just wanna get your sense of what you're hearing from customers in terms of macro environment, what you're seeing in terms of demand, how should we think about the recent funding backdrop flowing through potential demand throughout FY 2026?

Speaker #7: When you're thinking about those couple of orders . But also the bolus more in the second half , are those mostly existing customers enjoying the convenience of that , or is this something that enables more newer customers ?

Speaker #7: And how do you expect that mix to play out through the year?

Maher Masoud: Yeah. Great question, Matt. You know, obviously, as I mentioned, this is not so much anymore, you know, a demand issue or a customer funding issue. This is about, you know, just, you know, the headwinds we saw that affect us in Q1. This is more of a H2 weighted guide that we're giving in that core revenue of $25 to 27 million. I mean, look, we're sitting here right now, we're about 1 week away from quarter end. You know, this is not official guidance, but, you know, we look where we are on the core. I feel comfortable that, you know, $6 million on the core is appropriate for Q1. We see that upticking into Q2 and then being more H2 weighted, and none of that's contingent upon an upside in capital spending or customer demand.

Speaker #3: Great question. I mean, obviously the current customers are the ones that are going to be the easiest ones to convert over, because they're going to enjoy the aspect of it.

Speaker #3: And those are the ones we're approaching. So that's a great, that's a great question. But this is a mix of both.

Speaker #3: This is not just for new customers . It's also it's not just for current customers . It's also for new customers . Actually , even , even because this is a 96 .

Speaker #3: Well, a discovery platform that allows you to transfect primary cells. This can even be used for early discovery for the in vivo space as well.

Speaker #3: So this is in essence a platform that never had before We're targeting our current customers now , but you know , we're prospecting for future customers as well .

Speaker #3: And we're seeing that early placements actually , one of those early placements is a new customer . It's not a current customer . So it's a mix of both .

Maher Masoud: That's just where we sit right now. I feel extremely good where we are on the guide. I feel good where we are in Q1. You know, this is a case of just building back a new base from the SPL customers that we lost in 2025. We found a new base here. Our largest customer, we're optimizing, you know, the processing assemblies, and they're drawing down from the inventory they have. We found a new base there. I feel very good about the year as it transpires.

Speaker #3: But we're being very smart about it, and ensuring that we're working with our current customers, because that's also where you learn about some of the things you maybe have to make improvements on.

Speaker #3: Anytime you launch a product . So , you know , I've said it earlier , innovations are hard . We're going to continue to innovate this product .

Speaker #3: We're going to continue to launch new products in the in the coming years . So this is this is one of many to come

Steven Etoch: I appreciate it. I'll leave it there for now. Thank you.

Operator: Thank you. As a reminder, if you have a question, please press star one one to get in the queue. We have a question from Chad Wiatrowski with TD Cowen. Please proceed.

Speaker #4: Thank you. And this concludes our Q&A session. I will now pass it back to Maher Masoud for closing remarks.

Speaker #3: Yeah . Thank you . Operator and thank you , everyone , for joining us on today's call . I feel very good about 2026 , just as good , if not better , about the future years and what we're building here .

Chad Wiatrowski: Hey, guys. Congrats, Doug. Look forward to seeing what your plans are going forward. Just one on the DTx. You've mentioned sort of a few orders already flowing through here in Q1. When you're thinking about those couple of orders, but also the bolus more in H2, are those mostly existing customers enjoying the convenience of that? Or is this something that enables more newer customers? How do you expect that mix to play out through the year?

Speaker #3: And I look forward to talking to all of you in the next few months on our next earnings call

Maher Masoud: Great question. I mean, obviously the current customers are the ones that are gonna be the easiest ones to convert over 'cause they're gonna enjoy the aspect of it, and those are the ones we're approaching. That's a great question. But this is a mix of both. It's not just for current customers, it's also for new customers. Actually, even because this is a 96-well discovery platform that now allows you to transfect primary cells, this can even be used for early discovery for the in vivo space as well. So this is in essence a platform we've never had before, which we're targeting our current customers now, but you know, we're prospecting for future customers as well. We're seeing that in the early placements.

Maher Masoud: Actually one of those early placements is a new customer. It's not a current customer. It's a mix of both, but we're being very smart about it and ensuring that we're working with our current customers because that's also where you learn about some of the things you maybe have to make improvements on, as anytime you launch a product. You know, I've said it, you know, earlier, innovations are hard. We're gonna continue to innovate this product. We're gonna continue to launch new products in the coming years. This is one of many to come.

Operator: Thank you. This concludes our Q&A session, and I will pass it back to Maher Masoud for closing remarks.

Maher Masoud: Yeah. Thank you, operator, and thank you everyone for joining us on today's call. I feel very good about 2026, just as good if not better about the future years and what we're building here, and I look forward to talking to all of you in the next coming months on our next earnings call.

Operator: This concludes our conference. Thank you for participating. You may now disconnect.

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