MXCT

Business Context and Reporting Period

MaxCyte, Inc. (MXCT) is a global life sciences company focused on cell engineering technology for cell and gene therapies. This summary covers the quarterly period ended June 30, 2025 (Q2 2025). The company operates as a non-accelerated filer, smaller reporting company, and emerging growth company. A significant development during the period was the acquisition of SeQure Dx Inc. on January 29, 2025, to expand its gene-editing assessment services.

Key Financial Metrics

Note: Total Investments includes short-term and non-current investments at amortized cost. The company reported no debt obligations as of June 30, 2025.

Material Changes vs. Prior Period

• Revenue Decline: Total revenue decreased 18% in Q2 and 13% YTD compared to the prior year. This was primarily driven by a significant drop in "non-core" Strategic Platform License (SPL) program-related revenue, which fell 89% in Q2 and 59% YTD due to variability in customer milestone achievements.
• Core Revenue Growth: Despite the total revenue decline, "core" revenue (instruments, processing assemblies, licenses, and services) increased 8% in Q2 and 4% YTD, driven by higher instrument and processing assembly sales.
• Expense Fluctuations:
  • R&D: Increased 12% in Q2 due to higher headcount from the SeQure acquisition, offset by lower stock-based compensation.
  • Sales & Marketing: Decreased 13% in Q2 and 18% YTD, primarily due to reduced headcount and lower stock-based compensation.
  • G&A: Increased 6% in Q2 and 13% YTD, driven by higher stock-based compensation, public company expenses, and professional fees.
• Acquisition Impact: The acquisition of SeQure contributed $0.3 million in revenue and $1.9 million in net loss for Q2 2025. Transaction costs of approximately $0.9 million were recorded in G&A.

Outlook, Risks, and Management Commentary

• Liquidity: As of June 30, 2025, the company held $15.2 million in cash and $150.0 million in investments. Management believes these resources are sufficient to fund operations for at least the next 12 months.
• Revenue Variability: Management expects program-related revenue to remain variable as it depends on partners achieving clinical and regulatory milestones. However, they anticipate variability may moderate as the volume of SPL partnerships matures.
• Strategic Growth: The company signed three new SPL agreements in 2025 (TG Therapeutics, Anocca AB, and Adicet Bio). The integration of SeQure is expected to expand service offerings and allow earlier engagement with developers.
• Risks: Key risks include the uncertainty of milestone revenue timing, dependence on partners' capital availability, competition in the non-viral delivery market, and the need for potential future financing if the business plan requires spending in excess of current resources.

Investor Verification Checklist

• Revenue Mix: Verify the sustainability of core revenue growth versus the volatility of milestone-based SPL revenue.
• SeQure Integration: Assess the progress of integrating SeQure's services and the realization of anticipated synergies.
• Cash Burn Rate: Monitor the net cash used in operating activities ($24.3 million YTD) against the current cash and investment balance to validate the 12-month runway.
• Customer Concentration: Note that one customer represented 25% of Q2 revenue and 27% of YTD revenue; verify the stability of these key relationships.
• Contingent Consideration: Review the terms of the $2.5 million potential contingent payment to SeQure former holders based on future revenue targets.