Rapid Micro Biosystems (NASDAQ:RPID) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Rapid Micro Biosystems (NASDAQ:RPID) announced its quarterly earnings results on Friday. The company reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($0.03), FiscalAI reports. Rapid Micro Biosystems had a negative net margin of 145.81% and a negative return on equity of 131.52%. The company had revenue of $8.05 million for the quarter, compared to analysts’ expectations of $7.88 million.

Here are the key takeaways from Rapid Micro Biosystems’ conference call:

• Second-quarter revenue rose 11% year over year to $8.1 million, exceeding guidance, with four Growth Direct Systems placed and nine validations completed. The company reached its 200th system placement milestone and reported record quarterly consumable revenue.
• Recurring revenue increased 14% to $5.0 million, supported by a larger installed base and higher system utilization, while consumable revenue grew more than 20%. Management expects further consumable and service growth in the second half.
• Gross margin improved to a record 15% from 4% a year earlier, driven by cost reductions, manufacturing efficiencies, service productivity, and operating leverage. The company expects at least 20% gross margin in Q3 and mid- to high-20% margins in Q4.
• Rapid Micro reaffirmed 2026 revenue guidance of $37 million to $41 million and system-placement guidance of 30 to 38 systems, while raising validation guidance to at least 27 systems. Management also expects a meaningfully stronger contribution from its MilliporeSigma collaboration in the second half.
• The company reported a $12.9 million quarterly net loss and ended the quarter with approximately $20 million in cash and short-term investments. Although cash usage is expected to decline, Rapid Micro remains dependent on cost reductions, improved operating performance, potential debt-facility tranches, and warrant proceeds to support its path to positive cash flow.

Rapid Micro Biosystems Stock Down 16.8%

Shares of Rapid Micro Biosystems stock traded down $0.35 during midday trading on Friday, hitting $1.73. The company had a trading volume of 1,443,479 shares, compared to its average volume of 204,342. Rapid Micro Biosystems has a 52-week low of $1.66 and a 52-week high of $4.94. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.66 and a current ratio of 2.57. The stock has a market capitalization of $79.87 million, a P/E ratio of -1.54 and a beta of 1.44. The company has a 50 day moving average of $1.90 and a 200 day moving average of $2.67.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Wall Street Zen upgraded Rapid Micro Biosystems from a “strong sell” rating to a “sell” rating in a report on Sunday, May 31st. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rapid Micro Biosystems in a report on Friday, July 17th. Lake Street Capital lowered their price objective on Rapid Micro Biosystems from $8.00 to $7.00 and set a “buy” rating for the company in a research report on Friday, May 22nd. Finally, KeyCorp dropped their target price on shares of Rapid Micro Biosystems from $8.00 to $5.00 and set an “overweight” rating on the stock in a report on Friday, May 29th. Two equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $6.00.

Institutional Investors Weigh In On Rapid Micro Biosystems

Institutional investors have recently modified their holdings of the stock. American Century Companies Inc. lifted its stake in shares of Rapid Micro Biosystems by 46.1% in the second quarter. American Century Companies Inc. now owns 16,922 shares of the company’s stock worth $58,000 after buying an additional 5,341 shares in the last quarter. OMERS ADMINISTRATION Corp purchased a new stake in Rapid Micro Biosystems during the 4th quarter valued at $71,000. Barclays PLC purchased a new stake in Rapid Micro Biosystems during the 4th quarter valued at $72,000. XTX Topco Ltd bought a new stake in shares of Rapid Micro Biosystems in the 2nd quarter worth $144,000. Finally, Goldman Sachs Group Inc. bought a new stake in shares of Rapid Micro Biosystems in the 4th quarter worth $160,000. 52.60% of the stock is owned by hedge funds and other institutional investors.

Rapid Micro Biosystems Company Profile

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.