Press Release: Ginkgo Bioworks Reports Fourth Quarter and Full Year 2025 Financial Results, Announces Focus on Autonomous Labs Offerings and Divestiture of its Non-Core Biosecurity Business

Dow Jones02-27

Ginkgo provides an update on its fourth quarter financial results

BOSTON, Feb. 26, 2026 /PRNewswire/ -- Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, "Ginkgo") today announced its results for the fourth quarter and full year ended December 31, 2025. The update, including a webcast slide presentation with additional details on the third quarter, as well as supplemental financial information will be available at investors.ginkgobioworks.com.

Fourth Quarter 2025 Financial Results

   -- Fourth quarter 2025 Total revenue of $33 million compared to $44 million 
      in the comparable prior year period, Total revenue in the fourth quarter 
      of 2025 decreased 24% from the comparable prior year period. 
 
          -- Fourth quarter 2025 Cell Engineering revenue of $26 million 
             compared to $35 million in the comparable prior year period, a 
             decrease of 26% 
 
          -- Fourth quarter 2025 Biosecurity revenue of $7 million compared to 
             $9 million in the comparable prior year period 
 
   -- Fourth quarter 2025 GAAP net loss of $(81) million, compared to $(108) 
      million in the comparable prior year period 
 
   -- Fourth quarter 2025 Adjusted EBITDA of $(36) million, up from $(57) 
      million in the comparable prior year period, primarily attributable to 
      the decrease in operating expenses in the prior year period 
 
   -- Cash, cash equivalents and marketable securities balance as of December 
      31, 2025 of $423 million 

"This year, we are going to focus on investing to win in the category of autonomous labs," said Jason Kelly, co-founder and CEO of Ginkgo Bioworks. "There is an emerging wave of interest in robotics and AI, and our work with the Department of Energy and OpenAI this year shows that Ginkgo is in the best position to bring robotics to an extraordinarily high value area: laboratory research."

Full Year 2025 Financial Results

   -- Full year 2025 Total revenue of $170 million, down from $227 million in 
      the prior year, a decrease of 25% driven by the shift from early stage 
      customers to large/enterprise customers along with commercial changes 
      related to the restructuring. Full year 2025 and 2024 also benefited from 
      $8 million and $45 million of non-cash revenue from previously announced 
      releases of deferred revenue relating to the mutual terminations of 
      customer agreements. 
 
          -- Full year 2025 Cell Engineering revenue of $133 million, down from 
             $174 million in the prior year, a decrease of 24%. Excluding the 
             non-cash deferred revenue releases discussed above, full year 2025 
             and 2024 Cell Engineering revenue of $125 million and $129 million, 
             respectively, with 2025 Cell Engineering revenue decreasing 3%, 
             primarily attributed to ongoing program rationalization as part of 
             our restructuring activities. Full year 2025 Biosecurity revenue 
             of $37 million, down from $53 million in the prior year, a 
             decrease of 30%, with full year 2025 Biosecurity gross profit 
             margin of 23% 
 
   -- Full year 2025 GAAP net loss of $(313) million, compared to $(547) 
      million in the prior year 
 
   -- Full year 2025 Adjusted EBITDA of $(167) million, improved from $(293) 
      million in the prior year 

Biosecurity Business Divestiture

Ginkgo today announced it has reached an agreement to sell the Company's biosecurity business to a consortium of investors ("Investors") in exchange for a minority equity position in the business alongside the Investors. Upon completion, the biosecurity business will operate as a standalone private entity focused on building a scaled, biosecurity infrastructure platform for the United States and its global partners. The transaction provides the biosecurity business with greater flexibility and additional resources to pursue near- and long-term growth opportunities.

Per Ginkgo CEO Jason Kelly, "There is rising interest in defense tech in private capital markets and spinning off our biosecurity business into a private entity with new investors allows it to grow faster with more investment than it would inside Ginkgo. This serves Ginkgo in two ways: we are able to participate in the upside of the new entity as a shareholder but importantly we also focus Ginkgo's cash investment on our autonomous labs business."

Ginkgo expects to complete the transaction in the first half of 2026, subject to the satisfaction of customary closing conditions.

Recent Business Highlights & Strategic Positioning

   -- We are making 2026 a year of investment in our autonomous lab 
 
          -- This year, we will focus Ginkgo's efforts on autonomous labs as 
             the common platform for biotechnology research and invest to 
             extend our current lead in technology. We are currently expanding 
             our frontier autonomous lab in Boston to include over 50 RACs, 
             with 50 more expected by the end of the year 
 
          -- We will demonstrate the capabilities of autonomous labs by 
             decommissioning the majority of Ginkgo's lab benches, walk-up 
             automation, and workcells and moving our three R&D services 
             businesses onto a single, large autonomous lab 
 
   -- We are commercializing our autonomous lab through two distinct pathways: 
      through our cloud lab services and by building autonomous labs for 
      customers 
 
          -- We just released the results of a collaboration with OpenAI where 
             they used GPT-5 to design experiments using Ginkgo's cloud lab. 
             This resulted in achieving a 40% improvement over the 
             state-of-the-art in Cell-Free Protein Synthesis 
 
          -- After a pilot, we build and install customized autonomous systems 
             directly at customer sites, allowing them to run workflows in a 
             matter of weeks. We did this for the Pacific Northwest National 
             Laboratory, where we recently dedicated an 18-instrument 
             autonomous anaerobic system and won a $47M contract for a 
             97-instrument autonomous lab 
 
   -- Ginkgo continues to hold a strong cash position while winning new deals 
      across Agriculture, Pharma, and the U.S. Government, providing a strong 
      revenue base to position for future growth 
 
          -- We ended 2025 with $423 million in cash, cash equivalents and 
             marketable securities 
 
          -- Datapoints defined the category of Bio-AI Data Provider, worked 
             with 10 top pharma customers in its first full year. 
 
          -- In the fourth quarter of 2025, Solutions announced partnerships 
             with ARPA-H, University of Illinois Urbana-Champaign, Carnegie 
             Mellon, Agricen, Deep Origin and more 

Full Year 2026 Outlook

   -- Ginkgo expects total cash burn of $(150)-$(125) million in 2026. 

Conference Call Details

Ginkgo will host a videoconference today, Thursday, February 26, beginning at 4:30 p.m. ET. The presentation will include an overview of the fourth quarter and full year 2025, recent business updates, a discussion on Ginkgo's outlook, as well as a moderated question and answer session.

To ask a question ahead of the presentation, please submit your questions to @Ginkgo on X (hashtag #GinkgoResults) or by sending an e-mail to investors@ginkgobioworks.com.

A webcast link is available on Ginkgo's Investor Relations website and a replay will be made available following the presentation.

Ginkgo Investor Website: https://investors.ginkgobioworks.com/events/

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If you experience technical difficulties with any of these dial-ins or if you need international dial-in numbers, please visit our website at https://investors.ginkgobioworks.com/events/ for updated dial-in information.

About Ginkgo Bioworks

Ginkgo Bioworks builds the tools that make biology easier to engineer for everyone. The company offers autonomous laboratories that replace manual laboratory work with robotics in the lab, greatly improving the productivity of scientists. Ginkgo's in-house autonomous lab is also available as a "cloud lab" through our Datapoints and Solutions contract research services. For more information, visit ginkgobioworks.com, read our blog, or follow us on social media channels such as X (@Ginkgo), Instagram (@GinkgoBioworks), Threads (@GinkgoBioworks), or LinkedIn.

Forward-Looking Statements of Ginkgo Bioworks

This press release, the presentation, and the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, including with respect to technology adaptations to meet our customers' needs, strategies, including with respect to our current expectations, operations and anticipated results of operations, both business and financial, including the timing for attaining Adjusted EBITDA breakeven, potential customer success, including successful application of our offerings by our customers, expected benefits from our strategic partnerships, and expectations with regard to revenue, including our ability to meet all milestones and achieve the maximum revenue available under certain of our customer arrangements, expenses, our full year 2026 outlook, and the market environment, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from

those expressed or implied by such forward-looking statements. These forward-looking statements generally are identified by the words "believe," "can," "project," "potential," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to: (i) our ability to realize near-term and long-term cost savings associated with our site consolidation plans, including the ability to terminate leases or find sub-lease tenants for unused facilities, (ii) volatility in the price of Ginkgo's securities due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, and changes in laws and regulations affecting Ginkgo's business, (iii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, including with respect to our solutions and tools offerings, (iv) the risk of downturns in demand for products using synthetic biology, (v) the uncertainty regarding the demand for passive monitoring programs and biosecurity services, (vi) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, (vii) the outcome of any pending or potential legal proceedings against Ginkgo, (viii) our ability to realize the expected benefits from and the success of our platform programs and assets, (ix) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, (x) the product development, production or manufacturing success of our customers, (xi) our exposure to the volatility and liquidity risks inherent in holding equity interests in other operating companies and other non-cash consideration we may receive for our services, (xii) the potential negative impact on our business of our restructuring or the failure to realize the anticipated savings associated therewith and (xiii) the uncertainty regarding government budgetary priorities and funding allocated to government agencies, including potential adverse effects from the U.S. government shutdown. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of Ginkgo's annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on February 26, 2026 and other documents filed by Ginkgo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ginkgo assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Ginkgo does not give any assurance that it will achieve its expectations.

Use of Non-GAAP Financial Measures

Certain of the financial measures included in this release, including Adjusted EBITDA, cash flow and cash burn, have not been prepared in accordance with generally accepted accounting principles ("GAAP"), and constitute "non-GAAP financial measures" as defined by the SEC. Ginkgo has included these non-GAAP financial measures because it believes they provide an additional tool for investors to use in evaluating Ginkgo's financial performance and prospects. Due to the nature and/or size of the items being excluded, such items do not reflect future gains, losses, expenses or benefits and are not indicative of our future operating performance. These non-GAAP financial measures are supplemental to, and should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. In addition, these non-GAAP financial measures may differ from non-GAAP financial measures with comparable names used by other companies. See the reconciliation below for additional information regarding certain of the non-GAAP financial measures included in this release, including a description of these non-GAAP financial measures and a reconciliation of the historic measures to Ginkgo's most comparable GAAP financial measures.

Ginkgo Bioworks Contacts:

INVESTOR CONTACT:

investors@ginkgobioworks.com

MEDIA CONTACT:

press@ginkgobioworks.com

 
                       Ginkgo Bioworks Holdings, Inc. 
                         Consolidated Balance Sheets 
                      (in thousands, except share data) 
                                                    As of December 31, 
                                              ------------------------------ 
                                                   2025            2024 
                                              --------------  -------------- 
Assets 
Current assets: 
Cash and cash equivalents                      $     167,202   $     561,572 
Marketable securities                                255,418              -- 
Accounts receivable, net                              24,026          21,857 
Accounts receivable - related parties                    229             586 
Prepaid expenses and other current assets             24,963          18,729 
                                              --------------  -------------- 
Total current assets                                 471,838         602,744 
Property, plant and equipment, net                   167,783         203,720 
Operating lease right-of-use assets                  360,918         394,435 
Investments                                           15,066          48,704 
Intangible assets, net                                56,924          72,510 
Other non-current assets                              47,167          55,336 
                                              --------------  -------------- 
Total assets                                    $  1,119,696    $  1,377,449 
                                              ==============  ============== 
Liabilities and Stockholders' Equity 
Current liabilities: 
Accounts payable                              $       10,566  $       14,169 
Deferred revenue (includes $98 and $795 from 
 related parties)                                     18,946          27,710 
Accrued expenses and other current 
 liabilities                                          66,458          65,387 
                                              --------------  -------------- 
Total current liabilities                             95,970         107,266 
Non-current liabilities: 
Deferred revenue, net of current portion 
 (includes $64,787 and $72,260 from related 
 parties)                                             75,182          98,783 
Operating lease liabilities, non-current             417,078         438,766 
Other non-current liabilities                         22,876          16,576 
                                              --------------  -------------- 
Total liabilities                                    611,106         661,391 
                                              --------------  -------------- 
Commitments and contingencies (Note 12) 
Stockholders' equity: 
Preferred stock, $0.0001 par value; 
200,000,000 shares authorized; none issued                --              -- 
Common stock, $0.0001 par value (Note 13)                  6               5 
Additional paid-in capital                         6,657,053       6,555,416 
Accumulated deficit                              (6,150,320)     (5,837,557) 
Accumulated other comprehensive income 
 (loss)                                                1,851         (1,806) 
                                              --------------  -------------- 
Total stockholders' equity                           508,590         716,058 
                                              --------------  -------------- 
Total liabilities and stockholders' equity      $  1,119,696    $  1,377,449 
                                              ==============  ============== 
 

The accompanying notes are an integral part of these consolidated financial statements.

 
                       Ginkgo Bioworks Holdings, Inc. 
         Consolidated Statements of Operations and Comprehensive Loss 
                      (in thousands, except share data) 
                                     Year Ended December 31, 
                     -------------------------------------------------------- 
                            2025               2024               2023 
                     ------------------  -----------------  ----------------- 
Cell Engineering 
 revenue (1)            $       132,746    $       173,972    $       143,531 
Biosecurity 
revenue: 
 Service                         37,409             53,071             78,975 
 Product                             --                 --             28,949 
                     ------------------  -----------------  ----------------- 
Total revenue                   170,155            227,043            251,455 
                     ------------------  -----------------  ----------------- 
Costs and operating 
expenses: 
 Cost of 
  Biosecurity 
  service revenue                31,521             38,549             46,524 
 Cost of 
  Biosecurity 
  product revenue                    --                 --              7,481 
 Cost of other 
  revenue                        15,451              5,999                 -- 
 Research and 
  development                   243,773            424,061            580,621 
 General and 
  administrative                183,290            246,161            385,025 
 Impairment of 
  lease assets                       --                 --             96,210 
 Goodwill 
 impairment                          --             47,858                 -- 
 Restructuring 
  charges                        11,398             24,172                 -- 
                     ------------------  -----------------  ----------------- 
Total operating 
 expenses                       485,433            786,800          1,115,861 
                     ------------------  -----------------  ----------------- 
Loss from 
 operations                   (315,278)          (559,757)          (864,406) 
Other income 
(expense): 
 Interest income                 22,616             38,612             57,217 
 Interest expense                    --               (94)               (93) 
 Loss on equity 
  method 
  investments                        --                 --            (2,635) 
 Loss on 
  investments                  (16,411)           (28,827)           (54,827) 
 Loss on 
  deconsolidation 
  of subsidiaries                    --            (7,013)           (42,502) 
 Change in fair 
  value of warrant 
  liabilities                        --              5,701              5,168 
 Other (expense) 
  income, net                   (4,527)              3,870              9,138 
                     ------------------  -----------------  ----------------- 
Total other income 
 (expense)                        1,678             12,249           (28,534) 
                     ------------------  -----------------  ----------------- 
Loss before income 
 taxes                        (313,600)          (547,508)          (892,940) 
Income tax benefit                (837)              (479)               (71) 
                     ------------------  -----------------  ----------------- 
Net loss                $     (312,763)    $     (547,029)    $     (892,869) 
                     ==================  =================  ================= 
Net loss per share   $           (5.64)  $         (10.54)  $         (18.37) 
Weighted average 
 common shares 
 outstanding:                55,457,676         51,894,639         48,610,507 
Comprehensive loss: 
Net loss                $     (312,763)    $     (547,029)    $     (892,869) 
Other comprehensive 
income (loss): 
Foreign currency 
 translation 
 adjustment                       3,531            (4,782)              4,116 
Reclassification of 
foreign currency 
translation 
adjustment realized 
upon sale of 
foreign subsidiary                   --              1,492                 -- 
Unrealized gain on 
available-for-sale 
securities                          126                 --                 -- 
                     ------------------  -----------------  ----------------- 
Total other 
 comprehensive 
 income (loss)                    3,657            (3,290)              4,116 
                     ------------------  -----------------  ----------------- 
Comprehensive loss      $     (309,106)    $     (550,319)    $     (888,753) 
                     ==================  =================  ================= 
 
 
 
(1)  Includes related party revenue of $8,784, $53,041, and $22,222 for the 
     years ended December 31, 2025, 2024, and 2023, respectively. 
 

The accompanying notes are an integral part of these consolidated financial statements.

 
                      Ginkgo Bioworks Holdings, Inc. 
                   Consolidated Statements of Cash Flows 
                              (in thousands) 
                                      Year Ended December 31, 
                         ------------------------------------------------- 
                              2025             2024             2023 
                         ---------------  ---------------  --------------- 
Cash flows from 
operating activities: 
Net loss                 $     (312,763)  $     (547,029)  $     (892,869) 
Adjustments to 
reconcile net loss to 
net cash used in 
operating activities: 
 Depreciation and 
  amortization                    58,990           63,020           70,507 
 Stock-based 
  compensation                    81,546          112,344          229,884 
 Goodwill impairment                  --           47,858               -- 
 Restructuring related 
 impairment charges                   --            4,823               -- 
 Non-cash customer 
  consideration                       --          (1,117)          (1,373) 
 Loss on equity method 
  investments                         --               --            2,635 
 Loss on investments              16,411           28,827           54,827 
 Change in fair value 
  of notes receivable              5,685            2,014            2,416 
 Change in fair value 
  of warrant 
  liabilities                         --          (5,701)          (5,168) 
 Change in fair value 
  of contingent 
  consideration 
  liability                      (4,232)            3,214            9,168 
 Loss on 
  deconsolidation of 
  subsidiaries                        --            7,013           42,502 
 Impairment of 
  long-lived assets                   --            5,796          121,404 
 Deferred income tax 
  benefit                        (1,364)            (936)            (801) 
 Loss on disposal of 
  equipment                           --              844              842 
 Non-cash lease expense           30,082           28,095           28,313 
 Non-cash in-process 
  research and 
  development                         --           19,796            9,182 
 Accretion of discount 
 on marketable 
 securities                      (3,390)               --               -- 
 Other non-cash 
  activity                         2,064            1,224            3,194 
Changes in operating 
assets and 
liabilities: 
 Accounts receivable 
  ($357, $156 and $816 
  from related 
  parties)                       (1,473)          (4,725)           50,068 
 Prepaid expenses and 
  other current assets           (5,247)           10,085           10,473 
 Operating lease 
  right-of-use assets              3,814           23,463            9,275 
 Other non-current 
  assets                             296          (1,394)            2,570 
 Accounts payable                (2,992)            4,771          (1,183) 
 Accrued expenses and 
  other current 
  liabilities                     10,376         (40,438)           16,899 
 Deferred revenue, 
  current and 
  non-current 
  ($(8,147), $(51,422) 
  and $(17,018) from 
  related parties)              (32,393)         (68,645)         (35,917) 
 Operating lease 
  liabilities, current 
  and non-current               (27,932)         (14,881)         (22,800) 
 Other non-current 
  liabilities                     11,463            2,094              452 
                         ---------------  ---------------  --------------- 
Net cash used in 
 operating activities          (171,059)        (319,585)        (295,500) 
                         ---------------  ---------------  --------------- 
Cash flows from 
investing activities: 
Purchases of marketable 
debt securities                (418,630)               --               -- 
Maturities of 
marketable debt 
securities                       159,483               --               -- 
Proceeds from sale of 
marketable debt 
securities                        25,899               --               -- 
Purchases of property 
 and equipment                   (7,665)         (62,541)         (40,801) 
Deconsolidation of 
 subsidiaries - cash                  --               --         (42,980) 
Business acquisitions, 
net of cash acquired                  --          (5,400)               -- 
Purchases of notes 
 receivable                           --               --            (350) 
Proceeds from sales of 
marketable equity 
securities                            --            4,519               -- 
Proceeds from sale of 
 equipment                           574              648            4,428 
Other                                 50              538            (990) 
                         ---------------  ---------------  --------------- 
Net cash used in 
 investing activities          (240,289)         (62,236)         (80,693) 
Cash flows from 
financing activities: 
Proceeds from ATM 
offering                          19,469               --               -- 
Payment of issuance 
costs related to ATM 
offering                         (1,340)               --               -- 
Proceeds from exercise 
 of stock options                     --               84               93 
Taxes paid related to 
 net share settlement 
 of equity awards                     --               --             (23) 
Principal payments on 
 finance leases                    (354)            (897)          (1,295) 
Contingent 
 consideration payment                --            (922)          (1,411) 
Payment of equity 
 issuance costs and 
 other                                --              (4)            (580) 
                         ---------------  ---------------  --------------- 
Net cash provided by 
 (used in) financing 
 activities                       17,775          (1,739)          (3,216) 
                         ---------------  ---------------  --------------- 
Effect of foreign 
 exchange rates on cash 
 and cash equivalents                201            (281)            (588) 
                         ---------------  ---------------  --------------- 
Net decrease in cash, 
 cash equivalents and 
 restricted cash               (393,372)        (383,841)        (379,997) 
 
Cash and cash 
 equivalents, beginning 
 of year                         561,572          944,073        1,315,792 
Restricted cash, 
 beginning of year                44,171           45,511           53,789 
                         ---------------  ---------------  --------------- 
Cash, cash equivalents 
 and restricted cash, 
 beginning of year               605,743          989,584        1,369,581 
 
Cash and cash 
 equivalents, end of 
 year                            167,202          561,572          944,073 
Restricted cash, end of 
 year                             45,169           44,171           45,511 
                         ---------------  ---------------  --------------- 
Cash, cash equivalents 
 and restricted cash, 
 end of year             $       212,371  $       605,743  $       989,584 
                         ===============  ===============  =============== 
 

The accompanying notes are an integral part of these consolidated financial statements.

16. Segment Information

The Company operates in two operating and reportable segments: Cell Engineering and Biosecurity. This structure reflects the Company's internal management framework and the approach its CODM uses to evaluate operating results and allocate resources. The Company's reportable segments are described as follows:

   -- Cell Engineering consists of end-to-end cell engineering solutions and 
      cell engineering tools offerings for biological R&D. The Company's cell 
      engineering platform includes R&D services (solutions) where Ginkgo 
      performs technical activities.  Our Autonomous Lab is a flexible wet lab 
      built from our Reconfigurable Automation Cart ("RAC") systems capable of 
      large scale data generation; it powers generative AI and machine learning 
      ("ML") tools that enable more successful biological R&D. We now offer 
      services providing such data generation, AI and automation tools directly 
      to Ginkgo customers. Cell Engineering revenue is generated primarily 
      through R&D service fees for our solutions and Datapoints services; and 
      design, build, installation and ongoing support fees for our automation 
      solutions $(RAC)$ systems. Historically our solutions deals also included 
      downstream value share in the form of milestone payments, royalties or 
      equity interests. 
 
   -- Biosecurity consists of the Company's biomonitoring and bioinformatics 
      support services, offered to both government and non-government customers 
      through the Company's two core offerings: Canopy and Horizon. Biosecurity 
      revenue is generated from fees for data, analytics, and services. Prior 
      to 2024, Biosecurity revenue also included sales of COVID-19 diagnostic 
      and sample collection test kits. 

The Company's reportable segments are those for which discrete financial information is available and whose results are regularly provided to the Company's CODM, consisting of the Chief Executive Officer and the Chief Operating Officer, for the purpose of allocating resources and assessing financial performance. The CODM evaluates the financial performance of the Company's segments based on segment operating income (loss). The CODM is primarily provided with the segment operating income (loss) on a quarterly basis, as well as during the annual budgeting and forecasting process, and uses this information to monitor the Company's performance, including budget-to-actual results, and to make decisions about the allocation of operating and capital resources to each segment. For management reporting purposes, the Company's measure of segment operating income (loss) excludes the impact of stock-based compensation expense, depreciation and amortization, asset impairment charges, restructuring charges, costs associated with excess space, transaction and integration costs associated with planned, completed or terminated mergers and acquisitions, and acquired in-process research and development expenses. The Company has determined its significant segment expenses are cost of revenue for Biosecurity, research and development expenses for Cell Engineering, and general and administrative expenses for both segments, which are regularly provided to the CODM.

The CODM is not provided with asset information by segment; therefore, such information is not presented. The accounting policies used to prepare the reportable segments financial information are the same as those used to prepare the Company's consolidated financial statements.

The following table presents summary results of the Company's reportable segments and a reconciliation of total segment operating loss to consolidated loss before income taxes (in thousands):

 
                                       Year Ended December 31, 
                            ---------------------------------------------- 
                                 2025            2024            2023 
                            --------------  --------------  -------------- 
Cell Engineering 
Revenue                      $     132,746   $     173,972   $     143,531 
Costs and operating 
expenses: 
  Cost of other revenue             13,203           5,999              -- 
  Research and development         158,541         271,512         335,943 
  General and 
   administrative                   56,532         115,028         171,210 
                            --------------  --------------  -------------- 
Cell Engineering operating 
 loss                             (95,530)       (218,567)       (363,622) 
                            --------------  --------------  -------------- 
Biosecurity 
Service revenue                     37,409          53,071          78,975 
Product revenue                         --              --          28,949 
Costs and operating 
expense: 
  Cost of Biosecurity 
   service revenue                  28,897          38,549          46,524 
  Cost of Biosecurity 
   product revenue                      --              --           7,481 
  Research and development              --             771           1,599 
  General and 
   administrative                   27,443          44,370          55,514 
                            --------------  --------------  -------------- 
Biosecurity operating 
 (loss) income                    (18,931)        (30,619)         (3,194) 
                            --------------  --------------  -------------- 
Total segment operating 
 loss                            (114,461)       (249,186)       (366,816) 
                            --------------  --------------  -------------- 
Reconciling items to reconcile total segment operating loss to loss before 
income taxes: 
Stock-based compensation 
 (1)                                82,704         115,299         234,908 
Impairment expense (2)                  --          53,654         121,404 
Depreciation and 
 amortization                       58,990          63,020          70,507 
Restructuring charges (3)           11,398          24,172              -- 
Carrying cost of excess 
 space (net of sublease 
 income) (4)                        53,723          25,986              -- 
Merger and acquisition 
 related expenses (5)              (5,998)           4,417          61,188 
Acquired in-process 
 research and development               --          19,849           9,582 
Other (income) expense, 
 net (6)                           (1,678)         (8,075)          28,535 
                            --------------  --------------  -------------- 
Loss before income taxes    $    (313,600)  $    (547,508)  $    (892,940) 
                            ==============  ==============  ============== 
 
 
 
(1)  Includes $1.2 million, $3.0 million, and $5.0 million in related employer 
     payroll taxes for the years ended December 31, 2025, 2024, and 2023, 
     respectively. 
(2)  For 2024, includes $47.9 million related to goodwill impairment and $5.8 
     million related to lab equipment. For 2023, includes a $25.2 million 
     impairment loss on lab equipment and a $96.2 million impairment loss on 
     lease assets associated with an exited Zymergen leased facility. 
(3)  See Note 3, Restructuring, for composition of costs. 
(4)  The carrying cost of excess space includes base rent, common area 
     maintenance charges, and real estate taxes associated with facilities the 
     Company is not occupying, net of any sublease income from these spaces. 
(5)  Represents transaction and integration costs directly related to mergers 
     and acquisitions, including: (i) due diligence, legal, consulting and 
     accounting fees associated with acquisitions, (ii) post-acquisition 
     employee retention bonuses and severance payments, (iii) the fair value 
     adjustments to contingent consideration liabilities resulting from 
     acquisitions, and (iv) costs associated with the Zymergen Bankruptcy, as 
     well as securities litigation costs, net of insurance recovery. 
(6)  Includes interest income, interest expense, loss on investments, 
     losses/gains on deconsolidation of subsidiaries, changes in fair value of 
     certain assets and liabilities, and other gains or losses. 
 

Non-GAAP Information

In addition to our results determined in accordance with GAAP, we use earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA internally to evaluate our performance and make financial and operational decisions. We believe these non-GAAP measures, when viewed with our GAAP results, may be helpful to investors in assessing our operating performance.

We define EBITDA as net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders before the impact of interest income, interest expense, provision for income taxes and depreciation and amortization.

We define Adjusted EBITDA as EBITDA adjusted for stock-based compensation expense, gain or loss on equity method investments, gain or loss on investments, change in fair value of warrant liabilities, gain or loss on deconsolidation of subsidiaries, transaction and integration costs associated with planned, completed or terminated mergers and acquisitions, including related litigation costs, restructuring and impairment charges (inclusive of impairments of goodwill and long-lived assets), costs associated with the bankruptcy filing of our former subsidiary, Zymergen (the "Zymergen Bankruptcy"), and certain other income and expenses. We believe that the use of EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing activities, investing activities, and certain non-cash charges and other items that are not related to our core operating performance or affect comparability period over period.

Our non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for GAAP performance measures. These measures exclude significant expenses and income required by GAAP, which impacts their alignment with consolidated financial statements. They also rely on management's judgment to determine which items are included or excluded, making them inherently subjective. Additionally, non-GAAP measures lack uniform definitions and may differ from those used by other companies, limiting comparability. A reconciliation of EBITDA and Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is presented below:

 
                                               Year Ended December 31, 
                                          ---------------------------------- 
(in thousands)                                  2025              2024 
                                          ----------------  ---------------- 
Net loss (1)                              $      (312,763)  $      (547,029) 
Interest income                                   (22,616)          (38,612) 
Interest expense                                        --                94 
Income tax benefit                                   (837)             (479) 
Depreciation and amortization                       58,990            63,020 
                                          ----------------  ---------------- 
EBITDA                                           (277,226)         (523,006) 
Stock-based compensation (2)                        82,704           115,299 
Impairment expense (3)                                  --            53,654 
Restructuring charges (4)                           11,398            24,172 
Merger and acquisition related expenses 
 (5)                                               (5,998)             4,417 
Loss on investments                                 16,411            28,827 
Loss on deconsolidation of subsidiaries                 --             7,013 
Change in fair value of warrant 
 liabilities                                            --           (5,701) 
Change in fair value of convertible 
 notes                                               5,685             2,014 
                                          ----------------  ---------------- 
Adjusted EBITDA                           $      (167,026)  $      (293,311) 
                                          ================  ================ 
 
 
 
(1)  All periods include non-cash revenue when earned. For the year ended 
     December 31, 2025 this included $7.5 million in non-cash revenue from the 
     release of a deferred revenue balance associated with the terminated 
     BiomEdit, Inc. ("BiomEdit") contract. For the year ended December 31, 
     2024 this included $45.4 million recognized pursuant to the termination 
     of revenue contracts with Motif and $4.5 million in non-cash revenue from 
     the release of a deferred revenue balance associated with the termination 
     of contract with a related party. 
(2)  For the years ended December 31, 2025 and 2024, includes $1.2 million and 
     $3.0 million, respectively, in related employer payroll taxes. 
(3)  For 2024, includes $47.9 million related to goodwill impairment and $5.8 
     million related to lab equipment. 
(4)  Restructuring charges consist of employee termination costs from the 
     reduction in force commenced in June 2024, as well as the impairment of a 
     right-of-use asset relating to facilities consolidation. 
(5)  Represents transaction and integration costs directly related to mergers 
     and acquisitions, including: (i) due diligence, legal, consulting and 
     accounting fees associated with acquisitions, (ii) post-acquisition 
     employee retention bonuses and severance payments, (iii) the fair value 
     adjustments to contingent consideration liabilities resulting from 
     acquisitions, and (iv) costs associated with the Zymergen Bankruptcy, as 
     well as securities litigation costs, net of insurance recovery. Not 
     included in this adjustment are acquired in-process research and 
     development expenses, which totaled zero and $19.8 million for the years 
     ended December 31, 2025 and 2024, respectively. 
 

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SOURCE Ginkgo Bioworks

 

(END) Dow Jones Newswires

February 26, 2026 16:26 ET (21:26 GMT)

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