Ginkgo Bioworks (DNA) Plunge 23.54% as Q3 Revenue Tumbles 56% on Major Client Loss

The share price fell to its lowest level since June 2025 today, with an intraday decline of 23.54%.

Ginkgo Bioworks (DNA) reported a 56% year-over-year revenue drop in Q3 2025, driven by the termination of a major customer deal that had previously contributed $45 million in non-cash revenue. Total revenue fell to $38.8 million, with Cell Engineering revenue collapsing 61% to $29 million. The company posted a net loss of $1.45 per share, up 34% from the prior year, and adjusted EBITDA declined to -$56 million. Despite reaffirming full-year revenue guidance of $167–$187 million, the range remains below analyst expectations of $177.1 million, underscoring structural challenges in scaling growth. Analysts remain skeptical, with a median price target 29% below the current share price and only one buy recommendation among three sell ratings.

The biotech sector’s broader struggles with balancing innovation and profitability highlight Ginkgo’s challenges. While the company has secured partnerships like a $22.2 million BARDA contract and expanded collaborations with Bayer, these deals remain early-stage and uncertain. With $462 million in cash reserves but a $244.5 million operational loss in 2025, Ginkgo’s high burn rate and reliance on speculative projects have eroded investor confidence. The market’s focus on near-term profitability over long-term vision suggests the stock will remain under pressure until the firm demonstrates consistent progress in reducing losses and diversifying revenue streams.

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