Ginkgo Bioworks Q2 2025 Earnings Call Transcript: Progress Towards Adjusted EBITDA Breakeven and Life Science Tools Expansion

Ginkgo Bioworks Holdings reported Q2 2025 earnings, with CEO Jason Kelly updating on the company's mission to make biology easier to engineer. The objectives include reaching adjusted EBITDA breakeven by the end of 2026 while maintaining a cash margin of safety and expanding into the life science tools space. The company is cutting costs while serving current customers and establishing itself as a critical tool in AI-powered bioengineering.

Ginkgo Bioworks Holdings (NYSE: DNA) reported its Q2 2025 financial results, showcasing a mixed performance with notable cost-cutting achievements and strategic expansions. Total revenue dropped to $50 million from $56 million year-over-year, driven by a 50% decline in Biosecurity revenue to $10 million. However, Cell Engineering revenue grew by 8% to $39 million, fueled by biopharma and government clients [1].

The company reported a GAAP net loss of $60 million, significantly improved from a $217 million loss in the prior year. Adjusted EBITDA improved to $(28) million from $(99) million, reflecting aggressive cost-cutting initiatives that included layoffs and site consolidations. Ginkgo achieved its $250 million annualized cost reduction target three months ahead of schedule [1].

Ginkgo's cash position stands at $474 million, providing a safety margin as they pursue their goal of reaching Adjusted EBITDA breakeven by the end of 2026. The company reaffirmed its full-year 2025 revenue guidance of $167-$187 million, including $117-$137 million from Cell Engineering and at least $40 million from Biosecurity [1].

Strategically, Ginkgo is expanding its services by launching new automated ADME profiling and cell-free protein synthesis systems. These initiatives aim to establish recurring revenue streams while leveraging their automation expertise in high-value markets. Additionally, the company secured new contracts with Pacific Northwest National Laboratory [1].

Ginkgo's Q2 results highlight the ongoing challenges in the biotech sector post-pandemic, with biosecurity contracts fading and revenue swings becoming more turbulent. Despite these challenges, Ginkgo is trimming costs and growing its core business, aiming for consistent profitability in the coming quarters [2].

References:
[1] https://www.stocktitan.net/news/DNA/ginkgo-bioworks-reports-second-quarter-2025-financial-5kzndtpoh0zg.html
[2] https://finimize.com/content/ginkgo-bioworks-struggles-as-biosecurity-revenue-slips