Ginkgo Bioworks 2025 Q1 Earnings Improved Earnings as Net Loss Narrows 45%

Ginkgo Bioworks(DNA) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Ginkgo Bioworks reported a 27% increase in revenue for Q1 2025, surpassing expectations. The company adjusted its guidance, raising revenue projections for 2025 to between $167 million and $187 million. This reflects the impact of a $7 million non-cash deferred revenue release. With strong performance in Cell Engineering and Biosecurity segments, Ginkgo remains committed to achieving its cost reduction targets and reaching adjusted EBITDA breakeven by the end of 2026.

Revenue
Ginkgo Bioworks witnessed notable revenue growth across its segments for 2025 Q1. The Cell Engineering division played a significant role, contributing $38.23 million to the total revenues. Meanwhile, Biosecurity activities maintained their contribution at $10.09 million. Adding to the growth, services also brought in $10.09 million. Altogether, these segments propelled the total revenue to $48.32 million, marking a 27.3% increase from the previous year.

Earnings/Net Income
Ginkgo Bioworks narrowed losses to $1.68 per share in 2025 Q1 from a loss of $3.31 per share in 2024 Q1 (49.2% improvement). Meanwhile, the company successfully narrowed its net loss to $-90.96 million in 2025 Q1, reducing losses by 45.2% compared to the $-165.91 million net loss reported in 2024 Q1. The company has sustained losses for 5 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. Despite narrowing losses, the EPS indicates persistent financial challenges.

Price Action
The stock price of Ginkgo Bioworks has dropped 4.44% during the latest trading day, has tumbled 12.60% during the most recent full trading week, and has jumped 13.16% month-to-date.

Post-Earnings Price Action Review
The strategy of investing in Ginkgo Bioworks shares post-revenue raise quarter-over-quarter and holding for 30 days has consistently resulted in significant losses over the past five years. The annualized return on tangible equity during this period was -69.57%, reflecting a range between a high of -27.75% and a low of -190.77%. This persistent underperformance starkly contrasts with the US market's return of 9.3% over the last year, indicating a need for reevaluating the investment strategy. The data suggests that despite revenue increases, the strategy has not been profitable, urging investors to reconsider their approach to Ginkgo Bioworks investments.

CEO Commentary
Jason Kelly, Co-Founder and Chief Executive Officer, emphasized Ginkgo Bioworks' strong performance, noting a $205 million reduction in annual run rate costs while maintaining $517 million in cash. He highlighted growth drivers such as expanding customer engagements and cost-cutting measures that allow the company to remain competitive in a challenging biotech market. Strategic priorities include reaching adjusted EBITDA breakeven by the end of 2026 and expanding into the tools market to attract a broader customer base. Kelly expressed optimism about Ginkgo's positioning in the biotech sector, asserting that companies that endure current market challenges will emerge stronger.

Guidance
Ginkgo Bioworks updated its revenue guidance for 2025, now expecting total revenue between $167 million and $187 million, with Cell Engineering revenues projected at $117 million to $137 million and Biosecurity revenue remaining at a minimum of $50 million. The company anticipates significant cash burn reduction, projecting a path toward adjusted EBITDA breakeven by the end of 2026, while continuing to invest in its expanding tools business.

Additional News
Ginkgo Bioworks has been actively pursuing strategic partnerships and restructuring efforts. On May 6, 2025, the company announced a restructuring update that includes progress towards a $250 million cost savings target. Additionally, Ginkgo and its partners secured a $29 million contract from ARPA-H to develop distributed manufacturing of essential medicines using innovative systems. These efforts underscore Ginkgo's commitment to enhancing its operational efficiency and expanding its market reach. Furthermore, the company's focus on tools business and biosecurity services aligns with current industry demands, positioning Ginkgo for long-term growth amidst evolving biotech trends.