Rapid Micro Biosystems (NASDAQ:RPID) reported fourth-quarter and full-year 2025 results highlighting record quarterly revenue, increased system placements, and expanding recurring revenue, while also outlining expectations for revenue growth and gross margin improvement in 2026.
Fourth-quarter results set revenue and placement records
Management said fourth-quarter revenue rose 37% year-over-year to a quarterly record of $11.3 million, up from $8.2 million in the prior-year period. Chief Executive Officer Rob Spignesi said the results exceeded the company’s increased guidance issued in November and marked the company’s 13th consecutive quarter of meeting or exceeding expectations.
Product revenue increased 78% year-over-year to $9.3 million, driven primarily by higher system placements. Consumable revenue rose 11% in the quarter. Service revenue was $2.0 million, down from $3.0 million a year earlier, which Wirtjes attributed primarily to validation timing; he also noted that validation revenue in Q4 2024 was a company record.
Commercial momentum driven by large customers and installed base utilization
Spignesi highlighted a record multi-system order from Amgen during the quarter, describing it as part of a global rollout across multiple sites in North America, Europe, and Asia. He said Amgen is leveraging multiple applications including environmental monitoring, bioburden, and water testing, and will sponsor the company’s first North American “Growth Direct Day” in the second quarter.
The company also issued a separate press release announcing that Samsung Biologics is expanding its deployment of the Growth Direct platform through a new multi-system order received in the first quarter of 2026. On the Q&A portion of the call, Spignesi characterized the order as a “second wave” that is larger than the initial order received a couple of years ago, and said it is focused primarily on Samsung’s operations in South Korea, while noting that the company’s broader global footprint is also “in scope.” He added that Rapid Micro expects to “grow with Samsung in the quarters and years ahead,” and said the companies are discussing additional collaboration opportunities.
Spignesi said consumable revenue increased 17% for the full year, which he described as an indicator of utilization and return on investment across the installed base. He also said recurring revenue increased 15% for the full year and accounted for 53% of total revenue.
At year-end, Rapid Micro reported 190 systems placed globally, with 155 fully validated.
Margins pressured in Q4 by inventory charges; management reiterated cost progress
Wirtjes said fourth-quarter product margin was negative 8%, including a $1.1 million write-off of unusable consumable inventory, which he said had a 12-percentage-point impact on margin. Excluding the write-off, product margin was positive 4%, consistent with guidance. He said the underlying issue has been addressed and the company does not expect further charges related to the matter in 2026.
Service margin was 22% in the quarter, compared with 47% in the year-ago quarter. Wirtjes attributed the decline primarily to lower service revenue, which more than offset service productivity improvements and cost reductions made during 2025.
Total fourth-quarter gross margin was negative $0.3 million, or negative 3%, compared with $1.0 million, or 12%, in the prior-year period. Excluding the inventory-related charges, total gross margin was 7%, in line with guidance.
Spignesi said the quarter’s gross margin was impacted by the inventory charges but emphasized the company’s progress in reducing product costs, improving manufacturing efficiencies, and increasing service productivity. He added that over the last three years, total gross margin improved by more than 50 percentage points.
Expense levels, cash position, and Q4 loss
Total operating expenses were $11.9 million in the fourth quarter, compared with $11.2 million a year earlier. Wirtjes broke down quarterly operating expenses as $3.2 million for R&D, $3.3 million for sales and marketing, and $5.3 million for general and administrative expenses. For the full year, he said operating expenses decreased 3% while revenue increased 20%.
Interest income was $0.5 million and interest expense was $0.8 million in the fourth quarter. Net loss was $12.5 million, compared with a $9.7 million net loss in Q4 2024. Wirtjes said the higher loss primarily reflected the inventory charge, lower service margin, and higher interest expense. Net loss per share was $0.28, compared with $0.22 in the prior-year quarter.
Rapid Micro ended 2025 with $39 million in cash and investments, which Wirtjes said was in line with guidance, along with $25 million of unused capacity under its Trinity Capital debt facility. Net cash burn was $3 million in Q4, and Wirtjes said the fourth quarter is typically the company’s lowest burn quarter, while the first quarter is typically the highest.
2026 outlook: revenue growth, placements, and gross margin expansion
Management issued full-year 2026 guidance calling for revenue of $37 million to $41 million, including 30 to 38 system placements. Wirtjes said the placement range reflects uncertainty around the timing and scale of customer purchase decisions—particularly larger multi-system opportunities—and noted that the low end of guidance assumes no new large multi-system orders beyond the Samsung order announced that morning. He also said the low end does not assume MilliporeSigma fulfills its full year-two system commitment, as some systems could be placed in Q1 2027.
For the first quarter of 2026, the company expects revenue of at least $7.5 million, including at least five system placements. Wirtjes said at least 30% of placements are expected in the first half of the year, with the remainder in the second half, and that Q4 is expected to be the seasonal peak.
On service activity, Wirtjes said Rapid Micro expects to complete at least 25 validations in 2026, including at least three in Q1. He projected Q1 service revenue of $2.3 million to $2.6 million, a slight step-down in Q2, and then meaningful increases in Q3 and Q4 based on expected installation and validation timing.
Gross margin expectations were a major focus. For Q1, Wirtjes said total gross margin is expected to be in the mid-single digits, with product margin in the negative single digits and service margin above 30%. For the full year, management expects total gross margin of approximately 20%, with a Q4 exit rate in the mid-20% range or better, product margin in the high single digits to low teens, and service margin above 40%.
Wirtjes attributed confidence in the margin outlook to several factors discussed on the call, including vendor cost reductions—particularly on consumables—that are expected to begin benefiting results in Q2 and accelerate in the second half, as well as improved leverage from higher anticipated service revenue later in the year. Spignesi added that some of the product cost reductions are supported by contractual agreements with suppliers.
Rapid Micro also reiterated product development plans, with Spignesi saying the company expects to release a next-generation cloud-native software platform in the second half of 2026. In Q&A, Spignesi described it as a complete rewrite of the Growth Direct application software, intended to improve user interface and IT integration, and designed to operate in a cloud environment. He said the platform is in a pre-launch phase with a major customer, and that the company views it as a step toward future AI-driven analytics and services built around data generated by customers’ Growth Direct fleets.
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.
