Rapid Micro 2025 Q2 Earnings Narrower Losses Amid Revenue Growth

Rapid Micro (RPID) reported mixed results for Q2 2025, with revenue growth outpacing a modest improvement in losses. The company maintained its full-year revenue guidance but adjusted system placements to the low end of its previous range.

Revenue
Rapid Micro’s total revenue increased by 9.7% to $7.26 million in Q2 2025, compared to $6.62 million in the same period of the prior year. This growth was driven by both product and service segments, with product revenue contributing $4.80 million and service revenue adding $2.46 million. The performance highlights the company’s ongoing diversification efforts and its ability to expand its offerings within the life sciences sector.

Earnings/Net Income
Despite the revenue growth, Rapid Micro continued to report losses, narrowing them to $0.27 per share in Q2 2025 from $0.29 per share in Q2 2024. On a net basis, the company reduced its net loss to $-11.86 million, a 5.7% improvement from $-12.58 million in the prior-year period. While this represents progress, the company has now reported losses for six consecutive years in this quarter, underscoring ongoing financial challenges.

Price Action
The stock of Rapid Micro has experienced significant downward pressure in the wake of the earnings report. Shares tumbled 12.13% during the latest trading day, with a more severe 21.64% decline over the past full trading week and a 20.24% drop month-to-date. The negative price action reflects investor skepticism about the company’s ability to turn its financial situation around in the near term.

Post-Earnings Price Action Review
A post-earnings trading strategy of buying shares following the Q2 revenue increase and holding for 30 days resulted in a -24.48% return. This underperformed the benchmark by -70.81% in excess return, with a CAGR of -9.24%. The strategy exhibited high volatility, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.11, signaling high risk and poor returns for investors.

CEO Commentary
CEO Robert G. Spignesi highlighted the 10% increase in Q2 revenue to $7.3 million and reiterated the company’s progress on gross margin expansion, now with four consecutive quarters of positive gross margins. He emphasized the strategic partnership with MilliporeSigma as a key driver for system placements, cost reductions, and innovation. Spignesi expressed cautious optimism regarding the pharmaceutical industry’s shift toward automation and modern QC workflows, while acknowledging short-term challenges from global trade dynamics and delayed customer decisions. He also underscored the company’s strong financial position, supported by the $45 million term loan facility, and its commitment to long-term execution and operational efficiency.

Guidance
Rapid Micro reaffirmed its full-year 2025 revenue guidance of at least $32 million, while adjusting expectations for system placements to the low end of the 21–25 range. For Q3 2025, the company expects revenue to be between $7.25 million and $8.0 million, with 4–6 system placements. Gross margins are projected to improve sequentially, with high single-digit to low teens for the year. Operating expenses are now guided to $46–48 million, and cash flow is expected to reach approximately $40 million by the end of 2025.

Additional News
Recent news highlights include a Chinese company’s efforts to expand its presence in the pharmaceutical industry, driven by strategic partnerships and cost optimization. Additionally, a U.S. biotech firm announced a new investment round that could significantly boost R&D capabilities. In the financial sector, a major bank introduced new loan programs aimed at supporting small businesses and innovation in the life sciences field.