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

Key Points

• Rapid Micro Biosystems missed EPS estimates, reporting a quarterly loss of $0.27 per share versus the expected $0.24 loss, though revenue of $8.05 million exceeded forecasts.
• Operational performance improved, with revenue up 11% year over year, recurring revenue up 14%, record consumable revenue, and gross margin rising to 15% from 4% a year earlier. Management reaffirmed 2026 revenue guidance of $37 million to $41 million and raised validation guidance.
• The company remains financially challenged, posting a $12.9 million net loss and ending the quarter with about $20 million in cash and short-term investments. Shares fell to $1.73, while analysts’ consensus rating remained “Hold” with a $6.00 target price.

Rapid Micro Biosystems (NASDAQ:RPID - Get Free Report) released its quarterly earnings results on Friday. The company reported ($0.27) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.03), FiscalAI reports. Rapid Micro Biosystems had a negative return on equity of 131.52% and a negative net margin of 145.81%.The firm 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 Performance

Shares of RPID 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. The stock has a market cap of $79.87 million, a price-to-earnings ratio of -1.54 and a beta of 1.44. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.57 and a quick ratio of 1.66. The company's 50 day simple moving average is $1.90 and its 200 day simple moving average is $2.67. Rapid Micro Biosystems has a 52-week low of $1.66 and a 52-week high of $4.94.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Rapid Micro Biosystems

Large investors have recently bought and sold shares of the company. American Century Companies Inc. raised its holdings in Rapid Micro Biosystems by 46.1% during the second quarter. American Century Companies Inc. now owns 16,922 shares of the company's stock worth $58,000 after purchasing an additional 5,341 shares in the last quarter. OMERS ADMINISTRATION Corp acquired a new stake in shares of Rapid Micro Biosystems in the 4th quarter valued at approximately $71,000. Barclays PLC acquired a new stake in shares of Rapid Micro Biosystems in the 4th quarter valued at approximately $72,000. XTX Topco Ltd purchased a new stake in shares of Rapid Micro Biosystems in the second quarter valued at approximately $144,000. Finally, Goldman Sachs Group Inc. acquired a new position in Rapid Micro Biosystems during the fourth quarter worth $160,000. Hedge funds and other institutional investors own 52.60% of the company's stock.

About Rapid Micro Biosystems

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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