Rapid Micro Biosystems NASDAQ: RPID reported first-quarter 2026 revenue growth and reaffirmed its full-year outlook, citing momentum in system placements, consumables and recurring revenue, while management said gross margin improvement remains a central priority for the year.
President and Chief Executive Officer Rob Spignesi said the company generated total revenue of $8 million in the quarter, up 11% from the prior-year period. The company placed six Growth Direct Systems during the quarter, compared with three in the first quarter of 2025. As of March 31, Rapid Micro had 196 systems placed globally, including 160 fully validated systems.
Spignesi said placement activity was led by a multi-system follow-on order from Samsung Biologics, which he said highlighted the company’s continued success with larger key customers. Product revenue rose 36% year over year, supported by higher system placements and a record quarter for consumables, which grew more than 30%.
“Customer demand remains strong, with purchasing decisions increasingly strategic in nature and, in many cases, focused on the Growth Direct as an enterprise priority,” Spignesi said.
Recurring Revenue Rises as Consumables Grow
Chief Financial Officer Sean Wirtjes said first-quarter product revenue, which includes systems and consumables, was $5.6 million, compared with $4.1 million in the year-ago quarter. Service revenue was $2.4 million, down from $3.1 million a year earlier, but within the guidance range the company provided in March.
Wirtjes said the timing of validation activities is typically the largest driver of quarter-to-quarter variability in service revenue. Rapid Micro completed five validations in the first quarter, compared with nine in the prior-year period.
Recurring revenue increased 28% to $5.1 million from $4 million a year earlier and represented 63% of total revenue in the quarter. Non-recurring revenue, primarily systems and validation revenue, was $2.9 million, compared with $3.2 million in the prior-year period.
In response to an analyst question from Stifel’s Dan Arias about whether consumables growth represented an acceleration trend or was more episodic, Spignesi said the performance reflected the growing Growth Direct footprint, better validation efficiency and increased customer use of the systems.
“It’s a really good leading indicator,” Spignesi said. “If you see that in our business, it means customers are happy in using the system and most importantly, getting an ROI, and that activates more and more discussions.”
Margins Improve, but Net Loss Widens
Total gross margin was $0.4 million, or 5% of revenue, roughly flat with the first quarter of 2025 and in line with company guidance. Product margin improved to negative 8% from negative 23% a year earlier, which Wirtjes attributed mainly to a 33 percentage point improvement in consumable margins. He cited direct material cost reduction efforts, higher manufacturing productivity and efficiency, and operating leverage from higher volumes.
Service margin was 34%, down from 43% in the prior-year period, due to lower service revenue, partially offset by productivity improvements made over the past year.
Operating expenses totaled $14.2 million, compared with $12.1 million in the first quarter of 2025. That included $3.4 million in research and development expenses, $3.4 million in sales and marketing expenses and $7.4 million in general and administrative expenses. G&A included $0.9 million of severance and other non-recurring corporate expenses.
Rapid Micro reported a first-quarter net loss of $14.3 million, compared with a net loss of $11.3 million a year earlier. Wirtjes said the larger loss was primarily due to the non-recurring G&A expenses, interest expense on debt issued in the third quarter of 2025, lower interest income and higher non-cash stock-based compensation expense. Net loss per share was $0.31, compared with $0.26 in the prior-year quarter.
Full-Year Guidance Reaffirmed
Rapid Micro reaffirmed its full-year 2026 revenue guidance of $37 million to $41 million, including 30 to 38 system placements. For the second quarter, the company expects revenue of at least $7.7 million, including at least four system placements. Management also continues to expect at least 25 validations in 2026.
The company expects second-quarter gross margin as a percentage of revenue to be in the mid- to high-teens. For the full year, it continues to expect total gross margins of approximately 20%, with a fourth-quarter exit rate in the mid-20% range or better. Wirtjes said the company expects product margin in the high single digits to low teens and service margin above 40% for the year.
Spignesi said the company expects an inflection to positive product gross margins beginning in the second quarter, supported by more favorable pricing from key suppliers, improvements in consumables margins and actions to improve system manufacturing efficiency. He said longer term, Rapid Micro remains focused on a goal of gross margins above 50%.
The company ended the quarter with $23 million in cash after using $15 million during the period. Wirtjes said first-quarter cash usage is typically the company’s highest due to seasonal revenue and margin patterns and certain annual payments. He also pointed to lower-than-usual cash collections following strong collections in the fourth quarter of 2025.
Wirtjes said Rapid Micro has $25 million of remaining availability under its Trinity Capital credit facility. In response to a question from KeyBanc’s Paul Knight, Wirtjes said $10 million may become available later this year if certain financial metrics are met, another $10 million could be unlocked around the middle of 2027, and $5 million is available at the lender’s option.
MilliporeSigma Collaboration and Asia-Pacific Focus
Management highlighted Rapid Micro’s collaboration with MilliporeSigma as a contributor to future Growth Direct placements and margin initiatives. Spignesi said the collaboration expands opportunities in the company’s core pharmaceutical market as well as adjacent markets such as personal care and medical devices.
Rapid Micro also entered into a services agreement with MilliporeSigma making Rapid Micro the exclusive provider of validation, qualification and maintenance services for customers that purchase Growth Direct systems through MilliporeSigma. Spignesi told Knight that service revenue from those activities would be recorded by Rapid Micro.
Wirtjes said the company does not currently source consumable components from MilliporeSigma, but noted that MilliporeSigma makes some of the largest components of Rapid Micro’s products. He described sourcing from MilliporeSigma over time as a “very large opportunity” for margin improvement.
Spignesi also pointed to Asia-Pacific as an important growth driver. He said the company hosted a Japan Growth Direct Day event in Tokyo in April and later met with customers in South Korea to discuss quality-control automation roadmaps. Rapid Micro also placed its first Growth Direct System in China during the quarter and is expanding its installed base in markets including Singapore and Australia.
Looking ahead, Spignesi said Amgen will sponsor the company’s first North American Growth Direct Day in June, which is expected to bring together existing and prospective customers.
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.
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.
Before you consider Rapid Micro Biosystems, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Rapid Micro Biosystems wasn't on the list.
While Rapid Micro Biosystems currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Wondering what the next stocks will be that hit it big, with solid fundamentals? Click the link to see which stocks MarketBeat analysts could become the next blockbuster growth stocks.
Get This Free Report
