Ginkgo Bioworks Q2 Earnings Call Highlights

Revenue fell sharply: Second-quarter 2026 revenue declined 48% year over year to $20 million, while net loss widened to $57 million and cash burn increased to $45 million. Ginkgo reaffirmed full-year cash-burn guidance of $125 million to $150 million. Autonomous labs remain the strategic focus: Ginkgo expanded its Boston Nebula facility to 105 racks and is pursuing projects with Pacific Northwest National Laboratory, MIT, Caltech, the University of Maryland and Northwestern University. New service offerings target lower-cost drug research: The company launched ADME-One through its Datapoints platform, offering five drug-discovery assays for $199 per panel, and plans to expand its automated chemistry capabilities. Ginkgo Bioworks NYSE: DNA reported second-quarter 2026 revenue of $20 million, down 48% from the year-earlier period, as the company continued to shift its focus toward autonomous laboratory systems, contract research services and related software. Chief Executive Officer Jason Kelly said the company’s priorities for 2026 remain investing in autonomous labs, expanding its Nebula autonomous laboratory in Boston, and pursuing new sales to biopharma companies, national laboratories and research universities. The company also reaffirmed its full-year cash-burn guidance of $125 million to $150 million. Ginkgo ended the quarter with $302 million in cash and cash equivalents, along with $87 million of restricted cash designated for certain customers and operating activities, Kelly said. Financial Results and Cash Burn Chief Financial Officer Steve Coen said Ginkgo’s former Biosecurity business, which was divested in a transaction completed April 3, is classified as discontinued operations. Financial commentary for the quarter relates exclusively to continuing operations, which the company now reports as one segment. Revenue totaled $40 million for the first six months of 2026, a 49% decline from the prior-year period. Coen noted that the first half of 2025 included $7.5 million of non-cash revenue related to the mutual termination of the BiomEdit agreement. Excluding that amount, first-half revenue declined about 42% year over year. Research and development expense was $30 million, down 4% from $31 million a year earlier. General and administrative expense was $12 million, down 26% from $16 million in the prior-year quarter. Net loss from continuing operations was $57 million, compared with a $53 million loss a year earlier. Adjusted EBITDA was negative $36 million, compared with negative $25 million in the second quarter of 2025. Second-quarter cash burn was $45 million, compared with $38 million a year earlier. For the first half of 2026, cash burn was $93 million, down 3% from $96 million in the prior-year period. Coen said first-quarter cash burn included a $14 million payment to Google Cloud related to an amended 2025 commitment. The revised arrangement reduced future minimum commitments by more than $100 million and extended the commitment term to six years from three years, he said. Adjusted EBITDA included $14 million in costs associated with excess leased space during the second quarter, up from $12 million a year earlier. Coen said those expenses consist of rent and related charges on unoccupied space, net of sublease income, and could potentially be reduced through additional subleasing. Ginkgo raised $17 million through its at-the-market equity program during the quarter. The company excludes those proceeds from its cash-burn calculation. Autonomous Lab Expansion Kelly said Ginkgo expanded Nebula, its Boston autonomous lab, to 105 racks after adding roughly 50 racks during the quarter. He said the expansion is part of its strategy to invest in autonomous labs.