What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-07 · 98 added, 73 removed, 190 unchanged (47% of the section changed)

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Second, as the key enabling technology for our customers’ products, we have historically negotiated a value share with our customers (in the form of royalties, milestones, and/or equity interests) in order to align our economics with the success of the programs enabled by our platform.

Because we typically do not incur material downstream costs (e.g., manufacturing or product development, which our customers manage), these value share payments flow through with approximately 100% contribution margin.

We have structured a variety of value sharing mechanisms, including royalties, lump-sum milestones, and equity payments.

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Discontinued Operations

On February 26, 2026, the Company entered into a definitive agreement for the sale of its Biosecurity business, which was previously reported as a separate segment.

The Biosecurity Divestiture was completed on April 3, 2026 whereby the Purchaser issued to the Company shares of common equity of the Purchaser representing a minority interest in the Purchaser in exchange for substantially all of the Company’s operations comprising its Biosecurity business (see Note 2 of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details).

The Company is presenting the financial results for the former Biosecurity business within discontinued operations for all periods presented within its accompanying condensed consolidated statements of operations and cash flows and the accompanying condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 reflect the transferred Biosecurity assets as held for sale.

On April 3, 2026, the Company completed a divestiture of its Biosecurity business, which was previously reported as a separate segment, whereby the Purchaser issued to the Company shares of common equity of the Purchaser representing a minority interest in the Purchaser in exchange for substantially all of the Company’s operations comprising its Biosecurity business (see Note 2 of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details).

The Company is presenting the financial results for the former Biosecurity business within discontinued operations for all periods presented within its accompanying condensed consolidated statements of operations and cash flows and the accompanying condensed consolidated balance sheet as of December 31, 2025 reflect the transferred Biosecurity assets as held for sale.

Prior to the Biosecurity Divestiture, the Biosecurity business provided services to government customers working to identify, monitor, prevent and mitigate biological threats.

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Revenue has historically included transactions with Platform Ventures and Legacy Structured Partnerships where we received non-cash consideration in the form of equity interests and financial instruments that are convertible into equity upon a triggering event.

We view the upfront non-cash consideration as prepayments for licenses which will be granted in

the future as we complete mutually agreed upon technical development plans.

We view the upfront non-cash consideration as prepayments for licenses which will be granted in the future as we complete mutually agreed upon technical development plans.

In these instances, we also receive cash consideration for the R&D services performed by us on a fixed fee or cost-plus basis.

We are not compensated through additional milestone or royalty payments under these arrangements.

We are not compensated through

additional milestone or royalty payments under these arrangements.

As we perform R&D services under the mutually agreed upon development plans, we recognize a reduction in the prefunded obligation on a cost-plus basis.

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We expense R&D costs as incurred.

Our R&D expenses were lower in the first quarter of 2026 compared to the first quarter of 2025, primarily due to our restructuring plan announced and commenced in the second quarter of 2024 as we rationalized our current development programs and prioritize our investments in our tools offerings.

Our R&D expenses were lower in the first half of 2026 compared to the first half of 2025, primarily due to our restructuring plan announced and commenced in the second quarter of 2024 as we rationalized our current development programs and prioritize our investments in our tools offerings.

We expect that our R&D expenses will either remain consistent or decline in 2026 as compared to 2025, reflecting the stabilization of our operational overhead and the impact of our restructuring actions.

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G&A expenses also include professional legal services fees and costs incurred relating to litigation, corporate, intellectual property and patent matters, professional fees incurred for accounting, auditing, tax and administrative consulting services, insurance costs, and facility-related costs not otherwise included in R&D expenses.

Our G&A expenses were lower in the first quarter of 2026 compared to the first quarter of 2025, primarily due to our restructuring plan announced and commenced in the second quarter of 2024, as we reduced our operational overhead.

expect that our G&A expenses will either remain consistent or decline in 2026 as compared to 2025, reflecting the stabilization of our operational overhead and the impact of our restructuring actions.

However, our G&A expenses could increase in 2026 due to employee incentive programs offered.

Conversely, we intend to maintain a strategic and opportunistic approach regarding inorganic G&A expenses arising from mergers, acquisitions, and other inorganic growth initiatives.

Our G&A expenses were lower in the first half of 2026 compared to the first half of 2025, primarily due to our restructuring plan announced and commenced in the second quarter of 2024, as we reduced our operational overhead.

We expect that our G&A expenses will either remain consistent or decline in 2026 as compared to 2025, reflecting the stabilization of our operational overhead and the impact of our restructuring actions.

However, our G&A expenses could

increase in 2026 due to employee incentive programs offered.

Conversely, we intend to maintain a strategic and opportunistic approach regarding inorganic G&A expenses arising from mergers, acquisitions, divestitures, and other inorganic growth initiatives.

Restructuring Charges

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Interest income, net consists primarily of interest earned on our cash and cash equivalents and marketable debt securities.

Loss on Investments

Loss on investments includes the change in fair value of our marketable equity securities in publicly traded companies and impairment losses recognized on non-marketable equity securities in privately held companies.

Loss on Equity Method Investment

Loss on equity method investments includes our share of losses from our equity method investment in Perimeter Systems, Inc.

Gain (Loss) on Investments

Gain (Loss) on investments includes the change in fair value of our marketable equity securities in publicly traded companies and impairment losses recognized on non-marketable equity securities in privately held companies.

Other Income (Expense), Net

Other expense, net primarily consists of changes in the fair value of notes receivable that we elected to account for under the fair value option.

Other income (expense), net primarily consists of changes in the fair value of notes receivable that we elected to account for under the fair value option.

Provision for Income Taxes

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Results of Operations

Comparison of the Three Months Ended March 31, 2026 and 2025

Comparison of the Three and Six Months Ended June 30, 2026 and 2025

The following table presents our results of continuing operations for the periods indicated:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2026 2025 Change

2026 2025 Change

Revenue $ 20,156 $ 39,134 $ (18,978) $ 39,630 $ 77,364 $ (37,734)

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Interest income, net 3,232 6,083 (2,851) 6,828 12,164 (5,336)

Loss on investments (1,214) (3,693) 2,479

Other expense, net (7,147) (4,638) (2,509)

Total other expense (4,765) (2,250) (2,515)

Loss on equity method investment (4,673) — (4,673) (4,673) — (4,673)

Gain (loss) on investments 1,987 (229) 2,216 773 (3,922) 4,695

Other income (expense), net 809 (1,168) 1,977 (6,338) (5,806) (532)

Total other income (expense) 1,355 4,686 (3,331) (3,410) 2,436 (5,846)

Loss from continuing operations before income taxes (57,193) (53,477) (3,716) (133,332) (136,699) 3,367

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Net loss from continuing operations $ (57,321) $ (53,194) $ (4,127) $ (133,380) $ (136,504) $ 3,124

Revenue was $19.5 million for the three months ended March 31, 2026, compared to $38.2 million for the three months ended March 31, 2025, a decrease of $18.8 million.

Revenue was $20.2 million for the three months ended June 30, 2026, compared to $39.1 million for the three months ended June 30, 2025, a decrease of $19.0 million.

This decrease was primarily due to a decrease in the scope of services provided to a large enterprise customer in the agriculture industry and decrease in programs with large enterprise customers primarily in the pharmaceutical and biotechnology industries.

Revenue was $39.6 million for the six months ended June 30, 2026, compared to $77.4 million for the six months ended June 30, 2025, a decrease of $37.7 million.

This decrease was primarily due to the recognition of $7.5 million in non-cash revenue from the release of a deferred revenue balance associated with the terminated BiomEdit, Inc.

(“BiomEdit”) contract in the first quarter of 2025 (see Note 15 of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q) and a decrease in the scope of services provided to a large enterprise customer in the agriculture industry.

As discussed above in Components of Results of Operations, revenue comprises both cash and non-cash consideration.

Revenue recognized relating to non-cash consideration decreased from $8.7 million for the three months ended March 31, 2025 to $0.5 million for the three months ended March 31, 2026, primarily due to the recognition of $7.5 million in non-cash revenue from the release of the deferred revenue balance associated with the terminated BiomEdit contract in the first quarter of 2025.

contract in the first quarter of 2025, a decrease in the scope of services provided to a large enterprise customer in the agriculture industry, and decrease in programs with large enterprise customers primarily in the pharmaceutical and biotechnology industries.

As discussed above in Components of Results of Operations, Cell Engineering revenue comprises both cash and non-cash consideration.

Revenue recognized relating to non-cash consideration decreased from $1.2 million for the three months ended June 30, 2025 to $0.8 million for the three months ended June 30, 2026, and from $9.9 million for the six months ended June 30, 2025 to $1.3 million for the six months ended June 30, 2026, primarily due to lower non-cash revenue from other customers, and the recognition of $7.5 million in non-cash revenue from the release of the deferred revenue balance associated with the terminated BiomEdit contract in the first quarter of 2025.

Cost of Other Revenue

The cost of other revenue was $3.1 million for the three months ended March 31, 2026, compared to $4.1 million for the three months ended March 31, 2025, a decrease of $1.0 million.

The cost of other revenue was $1.7 million for the three months ended June 30, 2026, compared to $5.4 million for the three months ended June 30, 2025, a decrease of $3.7 million.

This decrease was primarily due to reductions in direct equipment expenses incurred for lab automation solutions customers.

The cost of other revenue was $4.8 million for the six months ended June 30, 2026, compared to $9.5 million for the six months ended June 30, 2025, a decrease of $4.7 million.

This decrease was primarily due to reductions in direct equipment expenses incurred for lab automation solutions customers.

Research and Development Expenses

Our research and development expenses principally relate to the development of new offerings and the operation, expansion and enhancement of our existing service offerings utilizing our proprietary platform to our cell engineering customers.

Research personnel costs, including stock-based compensation, is our largest expense, totaling $23.3 million and $30.7 million for the three months ended March 31, 2026 and 2025, respectively.

Our remaining research and

development costs are comprised primarily of rent and related facilities costs, information technology costs, depreciation pertaining to facilities and equipment, laboratory consumables, contract services, and routine costs and fees.

Research and development expenses were $49.9 million for the three months ended March 31, 2026, compared to $70.9 million for the three months ended March 31, 2025, a decrease of $21.0 million.

This decrease was primarily driven by reductions of $9.4 million in contract research expenses, $6.9 million in personnel-related compensation and benefits expenses, $2.6 million in rent and facilities expenses, $1.9 million in depreciation and amortization, $1.8 million in information technology expenses, and $1.5 million in stock-based compensation expense (inclusive of employer payroll taxes).

These decreases were partially offset by an increase of $1.9 million in allocated overhead expenses, $0.9 million in equipment expenses, and $0.3 million in other operating expenses.

Research personnel costs, including stock-based compensation, is our largest expense, totaling $17.9 million and $23.7 million for the three months ended June 30, 2026 and June 30, 2025, respectively and $41.5 million and $54.4 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

Our remaining research and development costs are comprised primarily of rent and related facilities costs, information technology costs, depreciation pertaining to facilities and equipment, laboratory consumables, contract services, and routine costs and fees.

Research and development expenses were $46.2 million for the three months ended June 30, 2026, compared to $53.4 million for the three months ended June 30, 2025, a decrease of $7.2 million.

This decrease was primarily driven by reductions of $4.8 million in stock-based compensation expense (inclusive of employer payroll taxes), $4.4 million in personnel-related compensation and benefits expenses, and $3.0 million in depreciation and amortization.

These decreases were partially offset by an increase of $4.3 million in allocated overhead expenses and $0.7 million in other operating expenses.

Research and development expenses were $96.1 million for the six months ended June 30, 2026, compared to $124.3 million for the six months ended June 30, 2025, a decrease of $28.2 million.

This decrease was primarily driven by reductions of $13.7 million in personnel-related compensation and benefits expenses, $9.8 million outside services, $5.9 million in stock-based compensation expense (inclusive of employer payroll taxes), $4.9 million in depreciation and amortization, and $0.2 million in other operating expenses.

These decreases were partially offset by an increase of $6.3 million in allocated overhead expenses.

General and Administrative Expenses

General and administrative expenses were $37.8 million for the three months ended March 31, 2026, compared to $39.7 million for the three months ended March 31, 2025, a decrease of $1.9 million.

This decrease was primarily driven by reductions of $4.4 million in personnel-related compensation and benefits expenses and $1.3 million in other operating expenses.

These decreases were partially offset by an increase of $3.8 million in rent and facilities expenses.

General and administrative expenses were $30.8 million for the three months ended June 30, 2026, compared to $35.0 million for the three months ended June 30, 2025, a decrease of $4.2 million.

This decrease was primarily driven by reductions of $6.2 million in stock-based compensation expense (inclusive of employer payroll taxes) and $3.1 million in personnel-related compensation and benefits expenses.

These decreases were partially offset by increases of $2.9 million in earnout remeasurement, $2.0 million in rent and facilities expenses, and $0.2 million in other operating expenses.

General and administrative expenses were $68.6 million for the six months ended June 30, 2026, compared to $74.7 million for the six months ended June 30, 2025, a decrease of $6.1 million.

This decrease was primarily driven by reductions of $8.9 million in personnel-related compensation and benefits expenses, $6.1 million in stock-based compensation expense (inclusive of employer payroll taxes), and $1.1 million in other operating expenses.

These decreases were partially offset by increases of $5.8 million in rent and facilities expenses and $4.2 million in earnout remeasurement.

Restructuring Charges

Restructuring charges were zero and $4.5 million for the three months ended March 31, 2026 and 2025, respectively.

Restructuring charges were zero and $3.6 million for the three months ended June 30, 2026 and June 30, 2025, respectively, and zero and $8.0 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

Restructuring charges relate to our restructuring plan, which was announced and commenced in the second quarter of 2024 and substantially concluded in the fourth quarter of 2025.

These charges primarily consisted of employee termination costs from the reduction in force.

These charges primarily consisted of employee termination costs

from the reduction in force.

See Note 3 of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details.

Interest Income, Net

Interest income, net was $3.6 million for the three months ended March 31, 2026, compared to $6.1 million for the three months ended March 31, 2025, a decrease of $2.5 million primarily due to lower average cash balances invested in money market funds and marketable debt securities.

Loss on Investments

Loss on investments was $1.2 million and $3.7 million for the three months ended March 31, 2026 and 2025, respectively.

The change was primarily driven by lower impairment losses on our non-marketable equity investments in privately held companies.

Interest income, net was $3.2 million for the three months ended June 30, 2026, compared to $6.1 million for the three months ended June 30, 2025, a decrease of $2.9 million primarily due to lower average cash balances invested in money market funds and marketable debt securities.

Interest income, net was $6.8 million for the six months ended June 30, 2026, compared to $12.2 million for the six months ended June 30, 2025, a decrease of $5.3 million primarily due to lower average cash balances invested in money market funds and marketable debt securities.

Loss on Equity Method Investment

Loss on equity method investment includes our share of losses from our equity method investment in Perimeter Systems, Inc.

Gain (Loss) on Investments

Gain on investments was $2.0 million and a loss of $0.2 million for the three months ended June 30, 2026 and June 30, 2025, respectively.

The change was primarily driven by gains on our marketable equity investments in the second quarter of 2026.

Gain on investments was $0.8 million and a loss of $3.9 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

The change was primarily driven by gains on our marketable equity investments in the second quarter of 2026 and higher impairment losses on our non-marketable equity investments in privately held companies in 2025.

We assess our non-marketable equity investments quarterly for potential impairment and remeasure them to fair value when events or changes in circumstances indicate that their carrying value may not be recoverable.

Other Expense, Net

We recorded a net other expense amount of $7.1 million for the three months ended March 31, 2026, compared to a net other expense amount of $4.6 million for the three months ended March 31, 2025, a decrease of $2.5 million.

Other Income (Expense), Net

We recorded net other income of $0.8 million for the three months ended June 30, 2026, compared to net other expense of $1.2 million for the three months ended June 30, 2025, a decrease of $2.0 million.

This increase was primarily due to increased sales of excess equipment.

We recorded net other expense of $6.3 million for the six months ended June 30, 2026, compared to net other expense of $5.8 million for the six months ended June 30, 2025, a decrease of $0.5 million.

This increase was primarily due to losses on the change in fair value of a note receivable accounted for under the fair value option recorded in 2026 and 2025.

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stockholders before the impact of interest income, interest expense, provision for income taxes and depreciation and amortization.

We define Adjusted EBITDA as EBITDA adjusted for stock-based compensation expense, gain or loss on equity method investments, gain or loss on investments, change in fair value of warrant liabilities, gain or loss on deconsolidation of subsidiaries, transaction and integration costs associated with planned, completed or terminated mergers and acquisitions, including related litigation costs, restructuring and impairment charges (inclusive of impairments of goodwill and long-lived assets), and certain other income and expenses.

We believe that the use of EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of

financing activities, investing activities, and certain non-cash charges and other items that are not related to our core operating performance or affect comparability period over period.

We define Adjusted EBITDA as EBITDA adjusted for stock-based compensation expense, gain or loss on equity method investments, gain or loss on investments, change in fair value of warrant liabilities, gain or loss on deconsolidation of subsidiaries, transaction and integration costs associated with planned, completed or terminated mergers, acquisitions, and divestitures, including related litigation costs, restructuring and impairment charges (inclusive of impairments of goodwill and long-lived assets), and certain other income and expenses.

We believe that the use of EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing activities, investing activities, and certain non-cash charges and other items that are not related to our core operating performance or affect comparability period over period.

Our non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for GAAP performance measures.

These measures exclude significant expenses and income required by GAAP, which impacts their alignment with consolidated financial statements.

They also rely on management’s judgment to determine which items are included or excluded, making them inherently subjective.

They also rely on management’s judgment to

determine which items are included or excluded, making them inherently subjective.

Additionally, non-GAAP measures lack uniform definitions and may differ from those used by other companies, limiting comparability.

A reconciliation of EBITDA and Adjusted EBITDA to net loss from continuing operations, the most directly comparable GAAP financial measure, is presented below:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in thousands) 2026 2025 2026 2025

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Restructuring charges (3)

Merger and acquisition related (income) expense (4)

— 3,566 — 8,032

Merger and acquisition related expense (income) (4)

1,106 (3,617) 1,106 (4,535)

Loss (gain) on investments (1,987) 229 (773) 3,922

Change in fair value of notes receivable 6,759 5,285

Loss on equity method investment 4,673 — 4,673 —

Change in fair value of convertible notes — — 6,759 5,285

Adjusted EBITDA $ (36,281) $ (25,363) $ (78,536) $ (69,605)

(1) All periods include non-cash revenue when earned, including $7.5 million recognized in the three months ended March 31, 2025, pursuant to the release of deferred revenue related to the mutual termination of a customer agreement.

(2) Includes $0.9 million and $0.4 million in employer payroll taxes for the three months ended March 31, 2026 and 2025, respectively.

(1) All periods include non-cash revenue when earned, including $7.5 million recognized in the six months ended March 31, 2025, pursuant to the release of deferred revenue related to the mutual termination of a customer agreement.

(2) Includes $0.4 million and $0.2 million in employer payroll taxes for the three months ended June 30, 2026 and 2025, respectively.

Includes $1.3 million and $0.5 million in employer payroll taxes for the six months ended June 30, 2026 and 2025, respectively.

(3) Restructuring charges primarily consist of employee termination costs from the reduction in force commenced in June 2024.

(4) Represents transaction and integration costs directly related to mergers and acquisitions, including:

(4) Represents transaction and integration costs directly related to mergers, acquisitions, and divestitures, including:

(i) legal, consulting, and accounting fees associated with acquisitions;

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and (iv) securities litigation costs.

Not included in this adjustment are acquired in-process research and development expenses, which totaled zero for both the three months ended March 31, 2026 and 2025, respectively.

Not included in this adjustment are acquired in-process research and development expenses, which totaled zero for both the three and six months ended June 30, 2026 and June 30, 2025, respectively.

Liquidity and Capital Resources

Sources of Liquidity

As of March 31, 2026, we had cash and cash equivalents and marketable securities of $373.5 million, which we believe will be sufficient to enable us to fund our projected operations through at least the next 12 months from the date of filing of this Quarterly Report on Form 10-Q.

As of June 30, 2026, we had cash and cash equivalents and marketable securities of $302.2 million, which we believe will be sufficient to enable us to fund our projected operations through at least the next 12 months from the date of filing of this Quarterly Report on Form 10-Q.

At-The-Market Program

On August 7, 2025, we filed a universal shelf registration statement on Form S-3, which was declared effective by the SEC on August 14, 2025, on which we registered for sale up to $500 million of any combination of our Class A common stock, preferred stock, warrants, and/or units from time to time and at prices and on terms that we may determine.

On September 4, 2025, the Company entered into the Sales Agreement with Allen, who is acting as the Agent, pursuant to which the Company may sell shares of its Class A common stock from time to time at prices and on terms determined by market conditions at the time of offering, up to an aggregate offering price of $100.0 million through or directly to the Agent in

one or more ATM offerings.

Since inception of the Sales Agreement through March 31, 2026, the Company has issued 1.9 million shares of Class A common stock under the Sales Agreement for net proceeds of $18.1 million.

We currently intend to use the net proceeds from this offering for general corporate purposes, which may include, but are not limited to, financing our operations, technology development, working capital and capital expenditures.

Since inception of the Sales Agreement through June 30, 2026, the Company has issued 3.7 million shares of Class A common stock under the Sales Agreement for net proceeds of $34.6 million.

We currently intend

to use the net proceeds from this offering for general corporate purposes, which may include, but are not limited to, financing our operations, technology development, working capital and capital expenditures.

Material Cash Requirements

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The following table provides information regarding our cash flows for each period presented:

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands) 2026 2025

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Operating Activities - Continuing Operations

Net cash used in operating activities for the three months ended March 31, 2026 consisted of a net loss from continuing operations of $76.1 million, adjusted for net change in operating assets and liabilities of $14.2 million and non-cash charges of $43.8 million.

The net change in operating assets and liabilities was primarily due to (i) a $11.6 million decrease in accounts payable, accrued expenses and other current liabilities primarily due to a payment associated with a minimum purchase obligation, (ii) a $5.0 million decrease in operating lease liabilities from rent payments, (iii) a $2.6 million decrease in deferred revenue primarily from the recognition of previously deferred revenue, partially offset by (iv) a $5.9 million decrease in prepaid expenses and other current assets.

Non-cash adjustments primarily consisted of $15.9 million of stock-based compensation expense, $12.8 million of depreciation and amortization, $7.1 million non-cash lease expense, a $6.8 million change in fair values of various assets and liabilities, and a $1.2 million loss on investments.

Net cash used in operating activities for the three months ended March 31, 2025 consisted of a net loss from continuing operations of $83.3 million, adjusted for net change in operating assets and liabilities of $6.9 million and non-cash charges of $47.4 million.

The net change in operating assets and liabilities was primarily due to (i) a $13.2 million decrease in deferred revenue primarily from a one-time release of a deferred revenue balance associated with a terminated customer contract, (ii) a $4.8 million decrease in operating lease liabilities from rent payments, partially offset by (iv) a $8.9 million increase in accounts payable, accrued expenses and other current liabilities primarily due to a loss accrual associated with a minimum purchase obligation under a supplier agreement, and (v) a $3.7 million decrease in operating lease right-of-use

assets from lease incentives received.

Net cash used in operating activities for the six months ended June 30, 2026 consisted of a net loss from continuing operations of $133.4 million, adjusted for net change in operating assets and liabilities of $27.3 million and non-cash charges of $72.1 million.

The net change in operating assets and liabilities was primarily due to (i) a $10.7 million decrease in operating lease liabilities from rent payments, (ii) a $7.7 million decrease in accounts payable, accrued expenses and other current liabilities primarily due to a payment associated with a minimum purchase obligation, (iii) a $6.1 million decrease in other non-current liabilities primarily due to a payment associated with a minimum purchase obligation, (iv) a $5.6 million decrease in deferred revenue primarily from the recognition of previously deferred revenue, partially offset by (v) a $3.5 million decrease in accounts receivable due to timing of customer billings.

Non-cash adjustments primarily consisted of $25.1 million of depreciation and amortization, $23.4 million of stock-based compensation expense, $13.3 million non-cash lease expense, a $6.8 million change in fair values of various assets and liabilities, a $4.7 million loss on our equity method investment in Perimeter, and a $0.8 million gain on investments.

Net cash used in operating activities for the six months ended June 30, 2025 consisted of a net loss from continuing operations of $136.5 million, adjusted for net change in operating assets and liabilities of $30.9 million and non-cash charges of $86.2 million.

The net change in operating assets and liabilities was primarily due to (i) a $24 million decrease in deferred revenue primarily from one-time releases of deferred revenue balances associated with terminated customer contracts and the recognition of previously deferred revenue, (ii) a $11.6 million decrease in operating lease liabilities from rent payments, partially offset by (iii) a $3.8 million decrease in operating lease right-of-use assets from lease incentives received, (iv) a $3.3 million increase in accounts payable, accrued expenses and other current liabilities primarily due to a loss accrual associated with a minimum purchase obligation under a supplier agreement, and (v) a $2.2 million decrease in

accounts receivable due to timing of customer billings.

Non-cash adjustments primarily consisted of $36.2 million of stock-based compensation expense, $30.1 million of depreciation and amortization, $14.9 million non-cash lease expense, a $1.1 million change in fair values of various assets and liabilities, and a $4.0 million loss on investments.

Operating Activities - Discontinued Operations

Net cash used in operating activities for the three months ended March 31, 2026 consisted of a net loss from discontinued operations of $6.5 million, adjusted for net change in operating assets and liabilities of $3.8 million and non-cash charges of $2.5 million.

The net change in operating assets and liabilities was primarily due to (i) a $4.2 million decrease in accounts receivable due to timing of customer billings, (ii) a $1.3 million increase in deferred revenue, partially offset by (iii) $1.9 million decrease in accounts payable, accrued expenses and other current liabilities.

Non-cash adjustments primarily consisted of $2.0 million of stock-based compensation expense and $0.6 million of depreciation and amortization.

Net cash used in operating activities for the three months ended March 31, 2025 consisted of a net loss from discontinued operations of $7.6 million, adjusted for net change in operating assets and liabilities of $4.7 million and non-cash charges of $3.6 million.

Net cash used in operating activities for the six months ended June 30, 2026 consisted of net income from discontinued operations of $4.1 million, adjusted for net change in operating assets and liabilities of $0.2 million and non-cash charges of $6.6 million.

The net change in operating assets and liabilities was primarily due to (i) a $7.8 million decrease in accounts receivable due to collections of customer billings, partially offset by (ii) $8.1 million decrease in accounts payable, accrued expenses and other current liabilities.

Non-cash adjustments primarily consisted of a $24.5 million gain on deconsolidation recorded upon the closing of the sale of the Biosecurity business (see Note 2 of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q), $17.3 million of stock-based compensation expense, and $0.6 million of depreciation and amortization.

Net cash used in operating activities for the six months ended June 30, 2025 consisted of a net loss from discontinued operations of $14.8 million, adjusted for net change in operating assets and liabilities of $3.3 million and non-cash charges of $7.6 million.

The net change in operating assets and liabilities was primarily due to (i) a $2.6 million increase in accounts receivable due to timing of customer billings, (ii) a $1.8 million decrease in accounts payable, accrued expenses and other current liabilities, partially offset by (iii) a $0.8 million decrease in prepaid expenses and other current assets, and (iv) a $0.3 million increase in deferred revenue.

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Investing Activities

Net cash used in investing activities for the three months ended March 31, 2026 primarily consisted of purchases of marketable debt securities of $83.2 million and maturities of marketable debt securities of $108.2 million.

Net cash used in investing activities for the three months ended March 31, 2025 primarily consisted of purchases of marketable debt securities of $191.2 million and purchases of property and equipment of $7.6 million related to the build-out of new office and laboratory space near our headquarters.

Net cash provided by investing activities for the six months ended June 30, 2026 primarily consisted of purchases of marketable debt securities of $127.4 million, maturities of marketable debt securities of $166.2 million, and purchases of property and equipment of $4.6 million primarily related to the build out of our Autonomous Lab.

Net cash used in investing activities for the six months ended June 30, 2025 primarily consisted of purchases of marketable debt securities of $320.1 million, maturities of marketable debt securities of $65.0 million, and purchases of property and equipment of $7.7 million related to the build-out of new office and laboratory space near our headquarters.

Financing Activities

Net cash used in financing activities for the three months ended March 31, 2026 consisted of principal payments on finance leases.

Net cash used in financing activities for the three months ended March 31, 2025 primarily consisted of principal payments on finance leases.

Net cash provided by financing activities for the six months ended June 30, 2026 primarily consisted of $16.5 million in net proceeds from the ATM offering.

Net cash used in financing activities for the six months ended June 30, 2025 primarily consisted of principal payments on finance leases.

Critical Accounting Estimates

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis