Rapid Micro Biosystems (NASDAQ:RPID) reported second-quarter revenue of $8.1 million, up 11% from $7.3 million a year earlier and above the company’s prior guidance, as consumable sales, service activity and recurring revenue increased.
The company placed four Growth Direct Systems during the quarter and completed nine system validations, compared with two validations in the prior-year period. Rapid Micro also said it reached a milestone with the placement of its 200th Growth Direct System and expects to ship its 10 millionth consumable in the third quarter.
Revenue Mix and Margin Improvement
Product revenue, including systems and consumables, rose 10% to $5.3 million. The increase was driven by consumable growth of more than 20% as customers moved systems into routine use and increased utilization of existing systems, according to CFO Sean Wirtjes.
Service revenue increased 13% to $2.8 million, supported by higher validation activity. Recurring revenue, which includes consumables and service, increased 14% to $5 million, while non-recurring revenue was $3 million, compared with $2.8 million in the prior-year quarter.
Total gross margin rose to $1.2 million, or 15% of revenue, from $0.3 million, or 4%, a year earlier. Product margin improved to negative 3% from negative 11%, although it was slightly below expectations because of the timing of software revenue that the company now expects in the second half of the year.
Consumable margins improved by 17 percentage points year over year, while service margin reached a record 49%, up from 32% a year earlier. Wirtjes attributed the gains to cost-reduction initiatives, manufacturing efficiencies, service productivity improvements and higher volumes.
Operating expenses increased to $13.5 million from $12.4 million, primarily due to non-recurring corporate expenses. The company reported a net loss of $12.9 million, compared with a $11.9 million loss a year ago, while net loss per share remained $0.27 in both periods.
Rapid Micro began reporting adjusted EBITDA loss, a non-GAAP measure, beginning this quarter. Adjusted EBITDA loss was $10.3 million, compared with $10.1 million a year earlier.
Guidance Reaffirmed; Validation Target Raised
The company reaffirmed its full-year 2026 revenue outlook of $37 million to $41 million, based on expected system placements of 30 to 38. It raised its validation outlook and now expects to complete at least 27 system validations during the year.
- Third-quarter revenue is expected to be at least $9.5 million.
- Rapid Micro expects at least seven system placements in the third quarter.
- The company expects at least 10 validations in the third quarter.
- Third-quarter gross margin is projected to be at least 20%.
- Fourth-quarter gross margin is expected in the mid- to high-20% range.
- Full-year gross margin is expected to be about 20%, with service margin of 45% to 50%.
Wirtjes said the company expects revenue and system placements to peak in the fourth quarter, consistent with its typical seasonality. Consumable revenue is expected to remain relatively consistent from the second to the third quarter before rising sequentially in the fourth quarter, subject to customer order and shipment timing.
Management also said it expects 2027 gross margin to exceed its exit rate for 2026, although quarterly seasonality could create variability. The company continues to target gross margin of 50% or more exiting 2028.
MilliporeSigma Partnership and Commercial Pipeline
President and CEO Rob Spignesi said the company’s partnership with MilliporeSigma is expanding its commercial opportunity funnel globally. MilliporeSigma contributed to system placements during the first half of 2026, and Rapid Micro expects its contribution to increase meaningfully in the second half and continue into 2027.
However, Spignesi said MilliporeSigma is not currently expected to fulfill its full contractual commitment during calendar 2026, based on the timing of the agreement. He said the low end of Rapid Micro’s full-year guidance did not include the full allocation of MilliporeSigma’s commitment.
The companies are also discussing procurement, supply-chain and technical initiatives intended to support margin expansion. Wirtjes said those efforts are unlikely to be meaningful contributors in 2026 because materials must be validated before use in the company’s products, with benefits more likely to emerge in 2027.
Spignesi said customer interest is increasingly focused on integrating Growth Direct into broader automation, digital and data workflows. He added that the company is seeing particular interest from contract development and manufacturing organizations in more fully automated and integrated systems.
The company said most placements continue to come from existing customers under its “land and expand” strategy, though it is also seeing new customers, including potential multi-system opportunities. Rapid Micro said its commercial pipeline is especially robust in North America, while MilliporeSigma is helping expand access to new customers, geographies and adjacent markets.
Liquidity and Efficiency Program
Rapid Micro ended the second quarter with approximately $20 million in cash equivalents and short-term investments. The company expects cash usage to decline meaningfully in the second half as revenue rises, margins expand and working-capital trends improve.
Wirtjes said the company implemented an efficiency program during the week of the earnings call that is expected to reduce expenses and cash usage by about $1 million for the rest of 2026 and approximately $3 million annually beginning in 2027. The actions will not affect planned investments in sales, customer support, product development or product cost-reduction programs, he said.
The company said it believes it is on track to meet the milestones needed to access a further $10 million tranche under its Trinity Capital debt facility later this year. Another $10 million tranche could become available in mid-2027, subject to applicable milestones. Management reiterated its objective of achieving positive cash flow by the end of 2028.
About Rapid Micro Biosystems (NASDAQ:RPID)
Rapid Micro Biosystems (NASDAQ: RPID) develops and commercializes automated microbial detection and contamination control solutions for the life sciences industry. Its flagship offering, the Growth Direct® System, leverages digital imaging and proprietary growth indicator plates to identify and count microorganisms more rapidly than traditional culture-based methods. The company’s technology platform is designed to streamline quality control workflows in pharmaceutical, biotechnology and vaccine manufacturing settings, helping clients reduce release times and improve operational efficiency.
In addition to the Growth Direct® System, Rapid Micro Biosystems offers an integrated suite of software and consumables that support automated data capture, analysis and reporting.
