Cryoport, Inc.

Previous wording

Although we believe that our opinions and expectations reflected in the forward-looking statements are reasonable as of the date of this Quarterly Report, we cannot guarantee future results, levels of activity, performance or achievements, and our actual results may differ substantially from the views and expectations set forth in this Quarterly Report. You should be aware that these statements are projections or estimates as to future events and are subject to a number of factors that may tend to influence the accuracy of the statements, including, but not limited to, risks and uncertainties associated with the effects of changing economic and geopolitical conditions, such as those resulting from the war with Iran, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in the Company’s cash flow, market acceptance risks, the effects of tariffs and other trade restrictions, and technical development risks. Additional risks and uncertainties relating to the CRYOPDP divestiture include, but are not limited to, the risk that any disruption resulting from the CRYOPDP divestiture may adversely affect our businesses and business relationships, including with employees and suppliers. Other important factors that could cause our actual results to differ materially from those in our forward-looking statements include those we describe in the reports we file from time to time with the Securities and Exchange Commission (“SEC”), including those contained in this Quarterly Report, in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 5, 2026 (the “2025 Annual Report”), and those reports filed after the date of this Quarterly Report.

Current wording

Although we believe that our opinions and expectations reflected in the forward-looking statements are reasonable as of the date of this Quarterly Report, we cannot guarantee future results, levels of activity, performance or achievements, and our actual results may differ substantially from the views and expectations set forth in this Quarterly Report. You should be aware that these statements are projections or estimates as to future events and are subject to a number of factors that may tend to influence the accuracy of the statements, including, but not limited to, risks and uncertainties associated with the effects of changing economic and geopolitical conditions, such as those resulting from the war with Iran, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in the Company’s cash flow, market acceptance risks, the effects of tariffs and other trade restrictions, and technical development risks. Additional risks and uncertainties relating to the CRYOPDP divestiture include, but are not limited to, the risk that any disruption resulting from the CRYOPDP divestiture may adversely affect our businesses and business relationships, including with employees and suppliers. Other important factors that could cause our actual results to differ materially from those in our forward-looking statements include those we describe in the reports we file from time to

Previous wording

The following management’s discussion and analysis of the Company’s financial condition and results of operations (“MD&A”) should be read in conjunction with the condensed consolidated balance sheet as of March 31, 2026 (unaudited) and the consolidated balance sheet as of December 31, 2025 (audited) and the related unaudited condensed consolidated statements of operations, comprehensive loss, and stockholders’ equity for the three months ended March 31, 2026 and 2025, and cash flows for the three months ended March 31, 2026 and 2025 and the related notes thereto (see Part I, Item 1. Financial Statements), as well as the audited consolidated financial statements of the Company for the years ended December 31, 2025, 2024 and 2023, included in the Company’s 2025 Annual Report.

Current wording

The following management’s discussion and analysis of the Company’s financial condition and results of operations (“MD&A”) should be read in conjunction with the condensed consolidated balance sheet as of June 30, 2026 (unaudited) and the consolidated balance sheet as of December 31, 2025 (audited) and the related unaudited condensed consolidated statements of operations, comprehensive income (loss), and stockholders’ equity for the three and six months ended June 30, 2026 and 2025, and cash flows for the six months ended June 30, 2026 and 2025 and the related notes thereto (see Part I, Item 1. Financial Statements), as well as the audited consolidated financial statements of the Company for the years ended December 31, 2025, 2024 and 2023, included in the Company’s 2025 Annual Report.

Previous wording

Over the past several years, we have established ourselves as a leading provider of temperature-controlled supply chain solutions supporting the clinical development and commercial launch of cell and gene therapies globally. As of March 31, 2026, we supported 766 clinical trials, of which 91 were in Phase 3, and 21 commercial therapies. We believe regenerative medicine advanced therapies that successfully advance through the clinical trial process and obtain regulatory approval represent a significant long-term revenue opportunity for the Company, as the majority of these therapies require comprehensive, temperature-controlled supply chain solutions and related services at commercial scale. We also expect to retain many of these programs as commercial customers, given our involvement during the clinical trial phase and our track record of innovation and responsiveness to customer needs. Revenue generated from our support of commercial therapies (“Commercial Cell and Gene Therapy revenue”) currently consists of BioLogistics Solutions revenue, BioServices revenue, and Life Sciences Products revenue.

Current wording

Over the past several years, we have established ourselves as a leading provider of temperature-controlled supply chain solutions supporting the clinical development and commercial launch of cell and gene therapies globally. As of June 30, 2026, we supported 779 clinical trials, of which 94 were in Phase 3, and 22 commercial therapies. We believe regenerative medicine advanced therapies that successfully advance through the clinical trial process and obtain regulatory approval represent a significant long-term revenue opportunity for the Company, as the majority of these therapies require comprehensive, temperature-controlled supply chain solutions and related services at commercial scale. We also expect to retain many of these programs as commercial customers, given our involvement during the clinical trial phase and our track record of innovation and responsiveness to customer needs. Revenue generated from our support of commercial therapies (“Commercial Cell and Gene Therapy revenue”) currently consists of BioLogistics Solutions revenue, BioServices revenue, and Life Sciences Products revenue.

Previous wording

On June 11, 2025, the Company completed the previously disclosed divestiture of its specialty courier CRYOPDP business to designated affiliates of DHL Supply Chain International Holding B.V. (“DHL”) for $133.0 million. Pursuant to the terms of the sale and purchase agreement, DHL acquired 100% of the capital stock and voting rights of certain entities conducting business under the trade name “CryoPDP”, including each of PDP Courier Services (USA), Inc., Courier Polar Expres S.L., Advanced Therapy Logistics and Solutions, SAS and Cryo Express GmbH (collectively, the “Transaction”). The Transaction also included the repayment of approximately $77.2 million of outstanding intercompany loans owed by CRYOPDP to the Company. The Company and DHL also entered into certain related transaction agreements at the closing date of the Transaction, including a master partnership agreement, a transition services agreement and other customary agreements. The divestiture and strategic partnership with DHL are expected to enhance the Company’s ability to develop its business, particularly in the EMEA and APAC regions, and to provide differentiated and high-value services aligned with the Company’s long-term growth strategy.

Current wording

On June 11, 2025, the Company completed the previously disclosed divestiture of its specialty courier CRYOPDP business to designated affiliates of DHL Supply Chain International Holding B.V. (“DHL”) for $133.0 million. Pursuant to the terms of the sale and purchase agreement, DHL acquired 100% of the capital stock and voting rights of certain entities conducting business under the trade name “CryoPDP”, including each of PDP Courier Services (USA), Inc., Courier Polar Expres S.L., Advanced Therapy Logistics and Solutions, SAS and Cryo Express GmbH (collectively, the “Transaction”). The Transaction also included the repayment of

Previous wording

We have two reportable segments: Life Sciences Services and Life Sciences Products. The Company’s Life Sciences Services reportable segment, which aggregates two operating segments (BioLogistics and BioStorage/BioServices), provides temperature-controlled logistics, biostorage, bioservices and cryopreservation services within the life science industry through direct sales. Revenue from this reportable segment is primarily comprised of Life Sciences Services revenue and includes certain immaterial revenue from the sale of accessories that constitute Life Sciences Products revenue. The Company’s Life Sciences Products reportable segment manufactures and sells cryogenic systems, such as freezers and cryogenic dewars and related ancillary accessories used in the storage and transport of life science commodities through direct sales or a distribution network. Revenue from this reportable segment is exclusively Life Sciences Products revenue. See Note 16 –Segment Reporting in our accompanying consolidated financial statements for additional information about our segments.

Current wording

We have two reportable segments: Life Sciences Services and Life Sciences Products. The Company’s Life Sciences Services reportable segment, which aggregates two operating segments (BioLogistics and BioStorage/BioServices), provides temperature-controlled logistics, biostorage, bioservices and cryopreservation services within the life science industry through direct sales. Revenue from this reportable segment is primarily comprised of Life Sciences Services revenue and includes certain immaterial revenue from the sale of accessories that constitute Life Sciences Products revenue. The Company’s Life Sciences Products reportable segment manufactures and sells cryogenic systems, such as freezers and cryogenic dewars and related ancillary accessories used in the storage and transport of life science commodities through direct sales or a distribution network. Revenue from this reportable segment is exclusively Life Sciences Products revenue. See Note 16 –Segment Reporting in our accompanying condensed consolidated financial statements for additional information about our segments.

Previous wording

Life Sciences Products revenue increased by $2.7 million, or 15.0%, from $18.2 million to $20.9 million for the three months ended March 31, 2026, as compared to the same period in 2025. Life Sciences Products revenue was primarily driven by demand from customers in the EMEA and APAC regions and strong demand from animal health customers in the Americas. Commercial Cell and Gene Therapy revenue included in Life Sciences Products revenue was $0.4 million and $0 for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Life Sciences Products revenue decreased by $0.1 million, or 0.4%, from $21.1 million to $21.0 million for the three months ended June 30, 2026, as compared to the same period in 2025. Life Sciences Products revenue was primarily driven by demand from customers in the Americas region. Commercial Cell and Gene Therapy revenue included in Life Sciences Products revenue was $0 and $1.2 million for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

Gross margin and cost of revenue. Gross margin for the three months ended March 31, 2026 was 45.8% of total revenue, as compared to 45.4% of total revenue for the three months ended March 31, 2025. Cost of total revenue increased $3.5 million to $25.9 million for the three months ended March 31, 2026, as compared to $22.4 million in the same period in 2025.

Current wording

Gross margin and cost of revenue. Gross margin for the three months ended June 30, 2026 was 46.6% of total revenue, as compared to 47.0% of total revenue for the three months ended June 30, 2025. Cost of total revenue increased $2.1 million, or 8.6%, to $26.1 million for the three months ended June 30, 2026, as compared to $24.1 million in the same period in 2025.

Previous wording

Gross margin for our Life Sciences Services revenue was 48.9%, as compared to 47.9% for the three months ended March 31, 2025. Our cost of revenue is primarily comprised of freight charges, payroll and associated expenses related to our global logistics and supply chain centers, depreciation expenses of our Cryoport Express® Shippers and supplies and consumables used for our solutions.

Current wording

Gross margin for our Life Sciences Services revenue was 49.9%, as compared to 48.9% for the three months ended June 30, 2025. Our cost of services revenue was primarily comprised of freight charges, payroll and associated expenses related to our global logistics and supply chain centers, depreciation expenses of our Cryoport Express® Shippers and supplies and consumables used for our solutions.

Previous wording

Gross margin for our Life Sciences Products revenue was 41.9%, as compared to 42.3% for the three months ended March 31, 2025. Life Sciences Products revenue, related cost of revenue and resulting gross margins were primarily driven by our MVE Biological Solutions (“MVE”) business. Our cost of products revenue was primarily comprised of materials, direct and indirect labor, inbound freight charges, purchasing and receiving, inspection, and distribution and warehousing of inventory. In addition, shop supplies, facility maintenance costs and depreciation expense for assets used in the manufacturing process were included in cost of products revenue.

Current wording

Gross margin for our Life Sciences Products revenue was 42.2%, as compared to 44.9% for the three months ended June 30, 2025. Life Sciences Products revenue, related cost of revenue and resulting gross margins were primarily driven by our MVE Biological Solutions (“MVE”) business. Our cost of products revenue was primarily comprised of materials, direct and indirect labor, inbound freight charges, purchasing and receiving, inspection, and distribution and warehousing of inventory. In addition, shop supplies, facility maintenance costs and depreciation expense for assets used in the manufacturing process were included in cost of products revenue.

Previous wording

Engineering and development expenses**.** Engineering and development expenses remained flat for the three months ended March 31, 2026, as compared to the same period in 2025. We continue to invest in enhancing and expanding the capabilities of our Cryoport Express®, Cryoport ELITE™ Solutions, and broader portfolio of temperature-controlled services, as well as in advancing our digital and information strategy, including the deployment of generative artificial intelligence (AI). These initiatives are focused on enabling the safe, reliable, and efficient transport and storage of life sciences commodities through innovative, technology-driven solutions.

Current wording

Engineering and development expenses**.** Engineering and development expenses increased by $0.7 million, or 17.8%, for the three months ended June 30, 2026, as compared to the same period in 2025. We continue to invest in enhancing and expanding the capabilities of our Cryoport Express®, Cryoport ELITE™ Solutions and broader portfolio of temperature-controlled services, as well as in advancing our digital and information strategy, including the deployment of generative artificial intelligence (AI). These initiatives are focused on enabling the safe, reliable, and efficient transport and storage of life sciences commodities through innovative, technology-driven solutions.

Previous wording

Investment Income. Investment income increased by $1.5 million for the three months ended March 31, 2026, as compared to the prior year.

Current wording

Investment income. Investment income increased by $1.7 million for the three months ended June 30, 2026, as compared to the prior year.

Previous wording

Interest expense**.** Interest expense decreased by $0.2 million for the three months ended March 31, 2026, as compared to the prior year.

Current wording

Interest expense**.** Interest expense decreased by $0.1 million for the three months ended June 30, 2026, as compared to the prior year.

Previous wording

Other expense, net. Other expense, net increased by $2.1 million for the three months ended March 31, 2026, as compared to the prior year. This was primarily due to an increase of $1.9 million in short-term investment net unrealized losses and an increase of $0.2 million in foreign currency loss.

Current wording

Other expense, net. Other expense, net decreased by $2.6 million for the three months ended June 30, 2026, as compared to the prior year. This was primarily due to an increase of $1.3 million in short-term investment net unrealized gains and a decrease of $1.3 million related to foreign currency losses.

Previous wording

Provision for income taxes. The provision for income taxes decreased by $0.1 million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, resulting in effective tax rates of negative 1.2% and negative 3.6%, respectively. The decrease in tax expense and increase in the effective tax rate for the three months ended March 31, 2026, as compared to the prior year is due to lower taxable foreign earnings. The negative effective tax rate of 1.2% for the three months ended March 31, 2026, differed from the U.S. federal statutory rate of 21% primarily due to changes in the valuation allowance that we maintain against our deferred tax assets, income earned by certain foreign subsidiaries being taxed at different rates than the U.S. federal statuary rate, and excess tax benefits associated with share-based compensation.

Current wording

Provision for income taxes. The provision for income taxes increased by $0.2 million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, resulting in effective tax rates of negative 6.5% and negative 2.3%, respectively. The increase in tax expense and the decrease in the effective tax rate for the three months ended June 30, 2026, as compared to the prior year is primarily due to lower taxable foreign earnings. The effective tax rate of negative 6.5% for the three months ended June 30, 2026, differed from the U.S. federal statutory rate of 21% primarily due to changes in the valuation allowance that we maintain against our deferred tax assets, income earned by certain foreign subsidiaries being taxed at different rates than the U.S. federal statuary rate, and excess tax benefits associated with share-based compensation.

Previous wording

Discontinued operations. Loss from discontinued operations, net of income tax decreased $4.1 million for the three months ended March 31, 2026, as compared to the same period in 2025. This was due to the CRYOPDP divestiture being completed in the second quarter of 2025.

Current wording

Discontinued operations. Income (loss) from discontinued operations, net of income tax decreased $120.9 million for the three months ended June 30, 2026, as compared to the same period in 2025, due to the gain on sale of the CRYOPDP business recorded in discontinued operations in the second quarter of 2025.

Previous wording

Life Sciences Services revenue increased by $4.0 million, or 17.6%, from $22.9 million to $26.9 million for the three months ended March 31, 2026, as compared to the same period in 2025. This increase was driven by year-over-year growth in BioLogistics Solutions revenue and BioStorage/BioServices revenue of 16.9% and 20.7%, respectively, demonstrating strong demand for our services offerings. Commercial Cell and Gene Therapy revenue included in BioLogistics Solutions revenue was $8.6 million for the three months ended March 31, 2026, representing a 19.8% year-over-year increase from $7.2 million in the prior year period. We also continued to gain clinical trial market share with Cryoport supporting a total of 766 clinical trials globally at March 31, 2026, of which 91 of these clinical trials were in phase 3, representing an overall increase of 55 clinical trials from 711 clinical trials at March 31, 2025. Our company continues to lead the way in providing advanced temperature-controlled supply chain solutions designed to support the development of cell and gene therapies and our future growth.

Current wording

Life Sciences Services revenue increased by $7.6 million, or 16.2%, from $47.2 million to $54.9 million for the six months ended June 30, 2026, as compared to the same period in 2025. This increase was driven by year-over-year growth in BioLogistics Solutions revenue and BioStorage/BioServices revenue of 14.6% and 22.8%, respectively, demonstrating strong demand for our services offerings. Commercial Cell and Gene Therapy revenue included in Life Sciences Services revenue increased by $3.4 million, or 23.2%, from $14.6 million to $18.0 million for the six months ended June 30, 2026, as compared to the prior period, and included BioLogistics and BioStorage/BioServices revenue of $16.9 million and $1.1 million, respectively, compared to $14.6 million and $0, respectively, in the prior period. We also continued to gain clinical trial market share with Cryoport supporting a total of 779 clinical trials globally at June 30, 2026, of which 94 of these clinical trials were in phase 3, representing an overall increase of 51 clinical trials from 728 clinical trials at June 30, 2025. Revenue from the support of CGT clinical trials was $26.3 million for the six months ended June 30, 2026, representing a 14.8% year-over-year increase from $22.9 million in the prior period. Our Company continues to lead the way in providing advanced temperature-controlled supply chain solutions designed to support the development of Cell and Gene therapies and our future growth.

Previous wording

SG&A expenses increased by $5.7 million, or 26.1% as compared to the same period in 2025. This increase was primarily driven by the release of contingent consideration of $5.2 million in the first quarter of 2025, that did not recur in 2026, and an increase of $1.1 million in wages and associated employee costs. These increases were offset by a decrease of $0.6 million in stock compensation.

Current wording

SG&A expenses increased by $6.8 million, or 14.0%, as compared to the same period in 2025. This increase was primarily driven by the release of contingent consideration of $5.2 million in the first quarter of 2025 that did not recur in 2026, and increases of $1.4 million in wages and associated employee costs and $0.2 million in marketing costs.

Previous wording

As of March 31, 2026, the Company had cash and cash equivalents of $272.9 million, short-term investments of $130.7 million and working capital of $245.7 million. We expect to continue to incur significant expenses for the foreseeable future and to incur operating losses in the near term while we make investments in new supply chain initiatives, geographic expansion and technology to support our anticipated growth, and repay our 2026 Convertible Senior Notes. Historically, we have financed our operations primarily through sales of equity securities and debt instruments. Following the divestiture of the CRYOPDP business, we also expect to use the net proceeds from the divestiture for general corporate purposes.

Current wording

As of June 30, 2026, the Company had cash and cash equivalents of $269.3 million, short-term investments of $127.4 million and had working capital of $239.2 million. We expect to continue to incur significant expenses for the foreseeable future and to incur operating losses in the near term while we make investments in new supply chain initiatives, geographic expansion and technology to support our anticipated growth, and repay our 2026 Convertible Senior Notes. Historically, we have financed our operations primarily through sales of equity securities and debt instruments. Following the divestiture of the CRYOPDP business, we also expect to use the net proceeds from the divestiture for general corporate purposes.

Previous wording

For the three months ended March 31, 2026, our cash provided by operating activities of $3.7 million reflects the net loss of $10.5 million offset by non-cash expenses of $12.6 million, primarily comprised of $6.4 million of depreciation and amortization, $2.4 million of stock-based compensation, $1.2 million of non-cash operating lease expense, unrealized loss on investments in equity securities of $1.1 million, and loss on available-for-sale investments of $1.0 million. Also contributing to the cash impact of our net operating loss, excluding non-cash items was an increase in accounts receivable of $5.7 million, a decrease in operating lease liabilities of $1.2 million, and a decrease in accounts payable and other accrued expenses of $0.6 million, which were partially offset by an increase in accrued compensation and related expenses of $4.1 million, a decrease in prepaid expenses and other current assets of $2.2 million, an increase in deferred revenue of $1.4 million, and a decrease in inventories of $1.3 million.

Current wording

For the six months ended June 30, 2026, our cash provided by operating activities of $4.9 million reflects the net loss of $18.8 million offset by non-cash expenses of $22.8 million primarily comprised of $13.0 million of depreciation and amortization, $4.8 million of stock-based compensation, $2.4 million of non-cash operating lease expense, and a loss on available-for-sale investments of $1.4 million. Also contributing to the cash impact of our net operating loss, excluding non-cash items was an increase in accounts receivable of $3.1 million, a decrease in operating lease liabilities of $2.3 million, and a decrease in accrued compensation and related expenses of $0.8 million, which were partially offset by a decrease in prepaid expenses and other current assets of $2.8 million, a decrease in inventories of $1.7 million, and an increase in accounts payable and other accrued expenses of $1.2 million.

Previous wording

Net cash provided by investing activities of $18.7 million during the three months ended March 31, 2026 was primarily due to the maturity of short-term investments of $29.0 million, which was partially offset by facility expansions (including leasehold improvements, furniture and equipment) and additional purchases of Cryoport Express® Shippers, Smart Pak IITM Condition Monitoring Systems, freezers and computer equipment for $10.0 million.

Current wording

Net cash provided by investing activities of $12.9 million during the six months ended June 30, 2026 was primarily due to the proceeds from the maturity of short-term investments of $33.0 million, which were partially offset by facility expansions (including leasehold improvements, furniture and equipment) and additional purchases of Cryoport Express® Shippers, Smart Pak IITM Condition Monitoring Systems, freezers and computer equipment for $19.1 million.

Previous wording

Net cash provided by financing activities totaled $0.1 million during the three months ended March 31, 2026.

Current wording

Net cash provided by financing activities totaled $0.7 million during the six months ended June 30, 2026, primarily comprised of proceeds of $1.0 million from the exercise of stock options, which were partially offset by the repayment of lease liabilities of $0.2 million.

Previous wording

As of March 31, 2026, the Company has approximately $63.9 million of repurchase authorization available under the 2024 Repurchase Program.

Current wording

As of June 30, 2026, the Company has approximately $186.2 million in aggregate principal amount of the 2026 Convertible Senior Notes outstanding and has approximately $63.9 million of repurchase authorization available under the 2024 Repurchase Program.