Cytek Biosciences, Inc.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
CTKB$5.83+8.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001628280-25-023927
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001628280-25-038422
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 127 previous paragraphs and 130 current paragraphs.
89 unchanged; 31 reworded; 10 added; 7 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
June 30, 2024 of $46.6 million and $91.5 million, respectively. Total revenue for the three months ended June 30, 2025 decreased compared to total revenue for the three months ended June 30, 2024, due to lower product revenue resulting from lower product sales in the United States to academic and government customers and in EMEA to biotechnology and pharmaceutical customers. The decrease in total revenue for the six months ended June 30, 2025, compared to total revenue for the six months ended June 30, 2024 was due to the same factors.
Current report
*Subsequent to the issuance of the June 30, 2024 interim financial statements, management identified a misclassification error in the Company's historical interim financial statements for the second quarter of fiscal year 2024 relating to a $14.2 million misclassification in the disaggregation of revenue by customer mix for the six months ended June 30, 2024. This misclassification impacts only the previously issued historical interim financial statements for the second quarter of fiscal year 2024. There is no net impact on the total revenue for the three and six months ended June 30, 2024. The Company corrected the previously presented amounts for the six months ended June 30, 2024, and concluded the error was not material to the previously issued interim financial statements.
Current report
Our business, results of operation and financial condition are dependent on both domestic and global macroeconomic conditions.
Current report
For a further discussion of trends, events, uncertainties and other factors that could impact our operating results, see the section titled “Risk Factors” in Item 1A of Part II in this Quarterly Report on Form 10-Q.
Current report
Total revenue, net decreased by $1.0 million to $45.6 million, or 2%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Total revenue, net decreased by $4.4 million to $87.1 million, or 5%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Current report
Total cost of sales increased by $0.6 million to $21.7 million, or 3%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Total cost of sales was flat at $43.0 million for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase in cost of sales for the three months ended June 30, 2025 was driven primarily by the increase in service cost of sales associated with higher parts and labor costs required to support higher service revenue. The higher service cost of sales was offset partially by lower product cost of sale primarily related to lower product revenue in the three months ended June 30, 2025.
Current report
Research and development expenses were $8.8 million and $18.6 million for the three and six months ended June 30, 2025, respectively, as compared to $10.0 million and $19.8 million for the three and six months ended June 30, 2024, respectively. The decrease in research and development expenses for both the three and six months ended June 30, 2025 compared to research and development expenses for the three and six months ended June 30, 2024 was primarily due to lower headcount and engineering expenses.
Current report
Sales and marketing expenses were $12.1 million and $24.6 million for the three and six months ended June 30, 2025, respectively, as compared to $12.3 million and $24.8 million for the three and six months ended June 30, 2024, respectively.
Current report
General and administrative expenses were $13.5 million and $26.4 million for the three and six months ended June 30, 2025, respectively, as compared to $11.7 million and $23.1 million for the three and six months ended June 30, 2024, respectively. The increase of $1.8 million and $3.3 million in general and administrative expenses for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024 was primarilydue to ongoing patent litigation expenses incurred in 2025.
Current report
Benefit from income taxes was $1.2 million and $1.1 millionfor thethree and six months ended June 30, 2025, respectively, as compared to an income taxes expense of $3.2 million and$0.4 million for thethree and six months ended June 30, 2024, respectively. The net decrease of $4.4 million for the three months ended June 30, 2025 was primarily due to higher tax expense in the quarter ended June 30, 2024, which was driven by reversal of a tax benefit from the first quarter of 2024, which did not reoccur in the current quarter, and a higher effective tax rate due to the geographic mix of worldwide profit and losses. Benefit from income tax expense was $1.1 million for the six months ended June 30, 2025, as compared to an income taxes expense of $0.4 million for the six months ended June 30, 2024. The net decrease of $1.5 million for the six months ended June 30, 2025 was primarily due to a higher effective tax rate due to the geographic mix of worldwide profit and losses.
Removed paragraphs (7)
Previous report
The strengthening of the U.S. dollar in early 2025 against the currencies of other countries where we do business had a negative impact on revenue in the first quarter of 2025 and may have a continuing negative impact in the near future.
Previous report
Total revenue, net decreased by $3.4 million to $41.5 million, or 8%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.
Previous report
Total cost of sales decreased by $0.5 million, or 3%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The decrease in cost of sales was driven primarily by decreases in product revenue, offset by higher cost for service parts used in the field and higher overhead costs in three months ended March 31, 2025.
Previous report
Research and development expenses were $9.7 million for the three months ended March 31, 2025 as compared to $9.8 million for the three months ended March 31, 2024.
Previous report
Sales and marketing expenses were $12.5 million for the three months ended March 31, 2025 as compared to $12.5 million for the three months ended March 31, 2024.
Previous report
General and administrative expenses were $12.9 million for the three months ended March 31, 2025 as compared to $11.4 million for the three months ended March 31, 2024. The increase of $1.5 million in general and administrative expenses was primarilydue to an increase in outside service expenses and higher compensation related to increased headcount.
Previous report
Provision for income taxes was $0.1 millionfor the three months ended March 31, 2025 as compared to a benefit from income taxes of $2.8 million for the three months ended March 31, 2024. The net increase of $2.96 million for the three months ended March 31, 2025 was primarily due to a lower effective tax rate as a result of a projected net loss for 2025 which caused permanently nondeductible items to decrease the effective tax rate as opposed to increasing the effective tax rate for the same quarter in 2024.
Reworded paragraphs (31)
Previous wording
Our FSP cell analyzers, the Cytek Aurora and Northern Lights systems, deliver high-resolution, high-content and high-sensitivity cell analysis and addresses the inherent limitations of other technologies by providing a higher level of multiplexing with exquisite sensitivity, more flexibility and increased efficiency, all at a lower cost for performance. Additionally, our Cytek Aurora cell sorter (“Aurora CS system”) leverages our FSP technology to further broaden our potential applications across cell analysis. Each system is supported by our highly intuitive, proprietary embedded SpectroFlo software, our reagents, and our service offerings to provide a comprehensive, end-to-end platform of solutions for our customers. Since our first U.S. commercial launch in mid-2017 through December 31, 2024, we have sold and deployed our instruments to customers around the world, including pharmaceutical companies, biopharma companies, academic research centers, and clinical research organizations (“CROs”).
Current wording
Our FSP cell analyzers, the Cytek Aurora, Northern Lights and Cytek Aurora Evo systems, deliver high-resolution, high-content and high-sensitivity cell analysis and addresses the inherent limitations of other technologies by providing a higher level of multiplexing with exquisite sensitivity, more flexibility and increased efficiency, all at a lower cost for performance. Additionally, our Cytek Aurora cell sorter (“Aurora CS system”) leverages our FSP technology to further broaden our potential applications across cell analysis. Each system is supported by our highly intuitive, proprietary embedded SpectroFlo software, our reagents, and our service offerings to provide a comprehensive, end-to-end platform of solutions for our customers. Since our first U.S. commercial launch in mid-2017, we have sold and deployed our instruments to customers around the world, including pharmaceutical companies, biopharma companies, academic research centers, and clinical research organizations (“CROs”).
Previous wording
Total revenue for the three months ended March 31, 2025 was $41.5 million, an 8% decrease compared to revenue for the three months ended March 31, 2024 of $44.9 million.
Current wording
Total revenue for the three and six months ended June 30, 2025 was $45.6 million and $87.1 million, respectively, representing a 2% decrease and a 5% decrease, respectively, compared to revenue for the three and six months ended
Previous wording
To date, we have adopted a direct sales model in North America, Europe, China, and several other countries in the Asia-Pacific region, and sell our products through third-party distributors in certain countries in Europe, Latin America, the Middle East, Africa and the Asia-Pacific region. Revenue from direct sales represented 72% and 77% of total revenue for the three months ended March 31, 2025 and 2024, respectively, and revenue from distributors represented 28% and 23% of total revenue for the three months ended March 31, 2025 and 2024, respectively.
Current wording
To date, we have adopted a direct sales model in North America, Europe, China, and several other countries in the Asia-Pacific region, and sell our products through third-party distributors in certain countries in Europe, Latin America, the Middle East, Africa and the Asia-Pacific region. Revenue from direct sales represented 73% and 73% of total revenue for the three and six months ended June 30, 2025, respectively, and 74% and 75% for the three and six months ended June 30, 2024, respectively. Revenue from distributors represented 27% and 27% of total revenue for the three and six months ended June 30, 2025, respectively, and 26% and 25% for the three and six months ended June 30, 2024, respectively.
Previous wording
We focus a substantial portion of our resources on developing new products and solutions to meet our customers’ needs. Our research and development efforts focus on developing new and complementary instruments, reagents and reagent kits, and continued operating software development. We incurred research and development expenses of $9.7 million and $9.8 million for the three months ended March 31, 2025 and 2024, respectively. We intend to continue to make significant investments in research and development in the future.
Current wording
We focus a substantial portion of our resources on developing new products and solutions to meet our customers’ needs. Our research and development efforts focus on developing new and complementary instruments, reagents and reagent kits, and continued operating software development. We incurred research and development expenses of $8.8 million and $18.6 million for the three and six months ended June 30, 2025, respectively, and $10.0 million and $19.8 million for three and six months ended June 30, 2024, respectively. We intend to continue to make significant investments in research and development in the future.
Previous wording
We expect to continue to invest in our commercial infrastructure through hiring additional employees with strong scientific and technical backgrounds to support growth in our instrument sales as well as our planned expansion of reagents offerings and panel design capabilities. We also plan to continue to invest in sales, marketing and business development across the globe to drive commercialization of our products. We incurred sales and marketing expenses of $12.5 million and $12.5 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
We expect to continue to invest in our commercial infrastructure through hiring additional employees with strong scientific and technical backgrounds to support growth in our instrument sales as well as our planned expansion of reagents offerings and panel design capabilities. We also plan to continue to invest in sales, marketing and business development across the globe to drive commercialization of our products. We incurred sales and marketing expenses of $12.1 million and $24.6 million for the three and six months ended June 30, 2025, respectively, and $12.3 million and $24.8 million for three and six months ended June 30, 2024, respectively.
Previous wording
Our net loss was $11.4 million and $6.2 million for the three months ended March 31, 2025 and 2024, respectively. The change for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, resulted primarily from a decrease in revenues and gross profit and an increase in operating expenses.
Current wording
Our net loss was $5.6 million and $17.0 million for the three and six months ended June 30, 2025, respectively, and $10.4 million and $16.6 million for three and six months ended June 30, 2024, respectively. The change for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 resulted primarily from a decrease in revenues and gross profit and an increase in operating expenses.
Previous wording
Recent inflation trends may adversely affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of materials and supplies, labor and benefit costs and overhead costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience increases in the near future (especially if the rate of inflation increases) on our operating costs, including our labor costs and research and development costs, due to supply chain constraints, consequences associated with future public health crises, the ongoing conflict between Russia and Ukraine, conflict in the Middle East or liquidity concerns at, and failure of, banks and other financial institutions.
Current wording
Recent inflation trends may adversely affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of materials and supplies, labor and benefit costs and overhead costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience increases in the near future (especially if the rate of inflation increases) on our operating costs, including our labor costs and research and development costs, due to inflationary pressures as well as supply chain constraints, consequences associated with future public health crises, the ongoing conflict between Russia and Ukraine, conflict in the Middle East or liquidity concerns at, and failure of, banks and other financial institutions.
Previous wording
The Trump administration has signaled changes to existing U.S. trade policies, including imposing and announcing plans for reciprocal tariffs on all U.S. trading partners including China, and renegotiating or potentially terminating existing bilateral and multi-lateral trade agreements. In response, certain foreign governments have announced or implemented retaliatory tariffs against U.S. goods and other non-tariff protectionist measures, such as procurement preferences or informal disincentives to engage with, purchase from or invest in U.S. entities, which may limit our ability to compete internationally and attract non-U.S. investment, employees, customers and suppliers. Although we cannot predict the ultimate extent to which the United States or other countries will impose quotas, duties, reciprocal tariffs, taxes, or other similar restrictions upon the import or export of our products, nor can we predict future trade policy or the terms of any renegotiated trade agreements and their impact on our business, the Trump administration’s imposition of tariffs as well as threatened and actual retaliatory tariffs against U.S. goods may have a negative impact on our revenue and costs in the future.
Current wording
The Trump administration has made and continues to signal additional changes to existing U.S. trade policies, including imposing and announcing plans for tariffs on all U.S. trading partners including China, and renegotiating or potentially terminating existing bilateral and multi-lateral trade agreements. In response, certain foreign governments have announced or implemented retaliatory tariffs against U.S. goods and other non-tariff protectionist measures, such as procurement preferences or informal disincentives to engage with, purchase from or invest in U.S. entities, which may limit our ability to compete internationally and attract non-U.S. investment, employees, customers and suppliers. Although we cannot predict the ultimate extent to which the United States or other countries will impose quotas, duties, reciprocal tariffs, taxes, or other similar restrictions upon the import or export of our products, nor can we predict future trade policy or the terms of any renegotiated trade agreements and their impact on our business, the Trump administration’s imposition of tariffs as well as threatened and actual retaliatory tariffs against U.S. goods may have a negative impact on our revenue and costs in the future.
Previous wording
Finally, changes in the U.S. National Institutes of Health (“NIH”) policy with respect to grants for academic research, specifically, the reduction in indirect cost reimbursement, may impact our revenue from academic and government customers in the near term.
Current wording
Finally, changes in the U.S. National Institutes of Health (“NIH”) policy with respect to grants for academic research, specifically, the reduction in indirect cost reimbursement, has impacted and may continue to impact our revenue from academic and government customers in the near term.
Previous wording
Product. Our product revenue primarily consists of sales of our instruments, including the Cytek Aurora, Northern Lights, Aurora CS, Amnis and Guava systems, instrument accessories, such as loaders, and consumables, such as reagents. We offer multiple versions of our FSP systems with different price points based on the number of lasers integrated in the systems. We also derive revenue from sales of our conventional flow cytometry system, which is available for sale in China. We recognize product revenue when control of the instrument is transferred to the customer.
Current wording
Product. Our product revenue primarily consists of sales of our instruments, including the Cytek Aurora, Northern Lights, Cytek Aurora Evo, Aurora CS, Amnis and Guava systems, instrument accessories, such as loaders, and consumables, such as reagents. We offer multiple versions of our FSP systems with different price points based on the number of lasers integrated in the systems. We also derive revenue from sales of our conventional flow cytometry system, which is available for sale in China. We recognize product revenue when control of the instrument is transferred to the customer.
Previous wording
We expect our revenue to increase in absolute dollars as we expand our sales organization and sales territories, broaden our customer base, and expand awareness of our products with new and existing customers. Our revenue was $41.5 million and $44.9 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
We expect our revenue to increase in absolute dollars as we expand our sales organization and sales territories, broaden our customer base, and expand awareness of our products with new and existing customers. Our revenue was $45.6 million and $46.6 million for the three months ended June 30, 2025 and 2024, respectively, and $87.1 million and $91.5 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
General and administrative. Our general and administrative expenses primarily consist of salaries, benefits, and stock-based compensation costs for employees in our executive, accounting and finance, legal and human resource functions, as well as professional services fees, such as consulting, audit, tax, legal, general corporate costs and allocated overhead expenses. The Company is focused on controlling its general and administrative expenses; however, these may increase in absolute dollars in future periods.
Current wording
General and administrative. Our general and administrative expenses primarily consist of salaries, benefits, and stock-based compensation costs for employees in our executive, accounting and finance, legal and human resource functions, as well as professional services fees, such as consulting, audit, tax, legal, general corporate costs and allocated overhead expenses. We are focused on controlling our general and administrative expenses; however, these may increase in absolute dollars in future periods.
Previous wording
Our provision for (benefit from) income taxes consists primarily of provision for federal taxes and local taxes in the United States as well as foreign taxes. As we plan to expand the scale and scope of our international business activities, any changes in the United States and foreign taxation of such activities may increase our overall provision for income taxes in the future.
Current wording
Our (benefit from) provision for income taxes consists primarily of provision for federal taxes and local taxes in the United States as well as foreign taxes. As we plan to expand the scale and scope of our international business activities, any changes in the United States and foreign taxation of such activities may increase our overall provision for income taxes in the future.
Previous wording
Product revenue decreased by $6.0 million to $28.1 million, or 18%, for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024 due to lower revenue in EMEA and the United States offset partially by growth in the APAC market, particularly in China.
Current wording
Product revenue decreased by $3.2 million to $31.4 million, or 9%, for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The lower revenue for the three months ended June 30, 2025 was primarily due to lower revenue in EMEA and APAC. Product revenue decreased by $9.2 million to $59.5 million, or 13%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The lower revenue for the six months ended June 30, 2025 wasprimarily due to lower revenue in EMEA and the United States, offset partially by growth in the APAC market.
Previous wording
Service revenue increased $2.6 million to $13.3 million, or 24% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The increase was primarily due to continued growth of the installed base with the related increase in service contracts and maintenance activity.
Current wording
Service revenue increased $2.1 million to $14.2 million, or 18%, and $4.8 million to $27.5 million, or 21%, for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. The increase was primarily due to continued growth of the installed base with the related increase in service contracts and maintenance activity.
Previous wording
Total gross profit margin was 49% and 51% of total revenue for the three months ended March 31, 2025 and 2024, respectively. Gross profit margin declined due to higher cost of sales driven by the factors described above. Gross profit margin depends on many factors, including market conditions that might affect our pricing; services; product mix changes between instrument configurations; excess and obsolete inventories; our cost structure for manufacturing operations relative to volume, freight costs and product support.
Current wording
Total gross profit margin was 52% and 55% of total revenue for the three months ended June 30, 2025 and 2024, respectively, and 51% and 53% for the six months ended June 30, 2025 and 2024, respectively. Gross profit margin declined due to higher cost of sales driven by the factors described above. Gross profit margin depends on many factors, including market conditions that might affect our pricing; services; product mix changes between instrument configurations; excess and obsolete inventories; our cost structure for manufacturing operations relative to volume, freight costs and product support.
Previous wording
Product revenue for the three months ended March 31, 2025 decreased by 18% as compared to the three months ended March 31, 2024. Product cost of sales for the three months ended March 31, 2025 decreased by 7% as compared to the same period in 2024. Product gross profit for the three months ended March 31, 2025 decreased 28% as compared to the three months ended March 31, 2024. The lower product gross profit margins in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 were driven primarily by lower product revenue partially offset by lower material costs, and higher manufacturing material and overhead costs.
Current wording
Product revenue for the three and six months ended June 30, 2025 decreased by 9% and 13%, respectively, as compared to the three and six months ended June 30, 2024. Product cost of sales for the three and six months ended June 30, 2025 decreased by 6% and 6%, respectively, as compared to the same period in 2024. Product gross profit for the three and six months ended June 30, 2025 decreased 12% and 20%, respectively, as compared to the three and six months ended June 30, 2024. The lower product gross profit margins in the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were driven primarily by lower product revenue resulting in lower fixed cost absorption.
Previous wording
Service revenue for the three months ended March 31, 2025 increased 24% as compared to the three months ended March 31, 2024. Service cost of sales for the three months ended March 31, 2025 increased by 13% as compared to the same period in 2024. Service gross profit for the three months ended March 31, 2025 increased 34% as compared to the three months ended March 31, 2024. The higher service gross margins in the three months ended March 31, 2025 compared to the three months ended March 31, 2024 were mainly driven by operating efficiencies gained from leveraging operating costs over greater revenues.
Current wording
Service revenue for the three and six months ended June 30, 2025 increased 18% and 21%, respectively, as compared to the three and six months ended June 30, 2024. Service cost of sales for the three and six months ended June 30, 2025 increased by 27% and 20%, respectively, as compared to the same period in 2024. Service gross profit for the three and six months ended June 30, 2025 increased 11% and 21%, respectively, as compared to the three and six months ended June 30, 2024. In the three months ended June 30, 2025, service gross margins declined compared to the three months ended June 30, 2024 due to higher service materials costs.
Previous wording
Interest expense was $0.3 million for the three months ended March 31, 2025 as compared to $0.4 million for the three months ended March 31, 2024. The decrease was mainly due to the adjustment to the settlement liability related to the settlement agreement with Becton, Dickinson and Company (“BD”). See Note 11 to our unaudited interim consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details.
Current wording
Interest expense was $0.4 million and $0.7 million for the three and six months ended June 30, 2025, respectively, as compared to $0.1 million and $0.6 million for the three and six months ended June 30, 2024, respectively. The increase in interest expense was mainly due to the adjustment to the settlement liability related to the settlement agreement with Becton, Dickinson and Company (“BD”). See Note 11 to our unaudited interim consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details.
Previous wording
Interest income was $0.5 million for the three months ended March 31, 2025 as compared to $1.4 million for the three months ended March 31, 2024. The decrease in interest income was the result of lower average balance of cash and cash equivalents and short-term investments as compared to the three months ended March 31, 2024 due to the transfer of funds from cash accounts to marketable securities accounts, the income from which is classified as investment income, included in Other income, net, rather than interest income, and a lower interest rate environment.
Current wording
Interest income was $0.6 million and $1.1 million for the three and six months ended June 30, 2025, respectively, as compared to $1.4 million and $2.8 million for the three and six months ended June 30, 2024, respectively. The decrease in interest income was the result of lower average balance of cash and cash equivalents and short-term investments as compared to the three and six months ended June 30, 2024 due to the transfer of funds from cash accounts to marketable securities accounts, the income from which is classified as investment income, included in Other income, net, rather than interest income, and a lower interest rate environment.
Previous wording
Other income, net, was $3.5 million for the three months ended March 31, 2025, as compared to other income, net of $0.8 million for the three months ended March 31, 2024. The increase in other income was primarily driven by an increase in realized and unrealized foreign exchange gains of $1.3 million in the three months ended March 31, 2025, compared to foreign exchange losses of $1.1 million in the three months ended March 31, 2024, and an increase in investment income of $0.3 million in the current quarter.
Current wording
Other income, net, was $3.7 million and $7.2 million for the three and six months ended June 30, 2025, respectively, as compared to other income, net of $0.1 million and $0.9 million for the three and six months ended June 30, 2024, respectively. The increase in other income was primarily driven by an increase in realized and unrealized foreign exchange gains and movement of cash from interest bearing accounts to investment accounts.
Previous wording
To date, our primary sources of capital have been through sales of our securities and revenue from the sale of our products and services. As of March 31, 2025 and December 31, 2024, we had approximately $265.6 million and $277.9 million, respectively, in cash and cash equivalents and short term investments, which were primarily held in U.S. short-term bank deposit accounts, money market funds, U.S. Treasury notes, Federal agency security notes, and short term commercial paper.
Current wording
To date, our primary sources of capital have been through sales of our securities and revenue from the sale of our products and services. As of June 30, 2025 and December 31, 2024, we had approximately $262.0 million and $277.9 million, respectively, in cash and cash equivalents and short term investments, which were primarily held in U.S. short-term bank deposit accounts, money market funds, U.S. Treasury notes, Federal agency security notes, and short term commercial paper.
Previous wording
In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2029. Under the terms of the leases, we are responsible for certain expenses related to operations, maintenance, repairs and management fees. Future minimum lease payments under non-cancelable operating leases totaled $11.6 million as of March 31, 2025.
Current wording
In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2029. Under the terms of the leases, we are responsible for certain expenses related to operations, maintenance, repairs and management fees. Future minimum lease payments under non-cancelable operating leases totaled $22.1 million as of June 30, 2025.
Previous wording
On August 26, 2022, we entered into a sales agreement (the “Sales Agreement”) with Piper Sandler & Co. (“Piper”) as sales agent to sell from time to time up to $150 million of our common stock through an “at the market” offering program. To date, we have not made any sales of common stock pursuant to the Sales Agreement. The securities in this transaction were offered pursuant to an automatic shelf registration statement on Form S-3ASR (File No. 333-267118) that was filed with the SEC on August 26, 2022.
Current wording
On August 26, 2022, we entered into a sales agreement (the “Sales Agreement”) with Piper Sandler & Co. (“Piper”) as sales agent to sell from time to time up to $150.0 million of our common stock through an “at the market” offering program. To date, we have not made any sales of common stock pursuant to the Sales Agreement. The securities in this transaction were offered pursuant to an automatic shelf registration statement on Form S-3ASR (File No. 333-267118) that was filed with the SEC on August 26, 2022.
Previous wording
Net cash used inoperating activities for the three months ended March 31, 2025 was $0.1 million, which included a net loss of $11.4 million, a decrease in accrued expenses and other liabilities of $2.1 million, and loss on investments, accretion and amortization, net of $1.5 million. Additionally, there was an increase of $1.5 million in inventories and a decrease of operating lease liabilities of $1.0 million. Cash used in operating activities during the period was partially offset bythe non-cash provision for stock-based compensation expense, depreciation and amortization, amortization of right-of-use assets, and excess and obsolete inventory of $6.6 million, $1.9 million, $1.0 million, and $0.3 million, respectively. Additionally, trade accounts receivable decreased by $6.4 million due to seasonality, with our first quarter typically being lower than our fourth quarter.
Current wording
Net cash used inoperating activities for thesix months ended June 30, 2025, was $0.02 million, which included a net loss of $17.0 million, an increase in deferred income taxes of $2.4 million, and an increase in loss on investments accretion and amortization, net of $3.1 million. Additionally, there was an increase of $5.1 million in inventories and a decrease of operating lease liabilities of $2.2 million, a decrease in legal settlement liability of $0.6 million, and an increase in prepaid expenses and other assets of $0.4 million. Cash used in operating activities during the period was partially offset bythe non-cash provision for stock-based compensation expense, depreciation and amortization, amortization of right-of-use assets, and excess and obsolete inventory of $13.4 million, $3.8 million, $2.1 million, and $0.3 million, respectively. Additionally, trade accounts receivable decreased by $7.1 million due to seasonality, with our first quarter typically being lower than our fourth quarter, an increase in deferred revenue of $1.6 million, and an increase in trade accounts payable of $1.2 million.
Previous wording
Net cash provided byoperating activities for the three months ended March 31, 2024 was $4.0 million due to the non-cash provision for stock-based compensation expense, depreciation and amortization, excess and obsolete inventory and amortization of right-of-use assets of $5.6 million, $1.7 million, $0.9 million, and $0.8 million, respectively; partially offset by a gain on investments, accretion and amortization, net of $1.2 million. Additionally, there was a decrease of inventories of $4.8 million and a decrease of trade accounts receivable of $4.2 million due to seasonality with our first quarter typically being lower than our fourth quarter. These were partially offset by cash used in operating activities during the period, which included a net loss of $6.2 million and an increase in accrued expenses and other liabilities of $4.6 million.
Current wording
Net cash provided byoperating activities for thesix months ended June 30, 2024 was $10.2 million due to the non-cash provision for stock-based compensation expense, depreciation and amortization, excess and obsolete inventory and amortization of right-of-use assets of $12.8 million, $3.5 million, $1.0 million, and $1.4 million, respectively; partially offset by a gain on investments, accretion and amortization, net of $2.4 million. Additionally, there was a decrease of inventories of $9.2 million and a decrease of trade accounts receivable of $10.2 million due to seasonality with our first quarter typically being lower than our fourth quarter due to marketing campaign closing activity. These were partially offset by usage of cash which included a net loss of $16.6 million and an increase in accrued expenses and other liabilities of $9.4 million, and an increase in prepaid expenses and other assets of $0.5 million.
Previous wording
Net cash provided by investing activities during the three months ended March 31, 2025 was $9.5 million driven by proceeds from maturities of marketable securities of $70.4 million, partially offset by purchases of marketable securities of $60.2 million and purchases of fixed assets and intangibles of approximately $0.9 million.
Current wording
Net cash used in investing activities during the six months ended June 30, 2025 was $7.0 million driven by purchase of marketable securities of $141.4 million, and purchase of property and equipment of approximately $2.5 million, partially offset by proceeds from maturities of marketable securities of $136.9 million.
Previous wording
Net cash used in investing activities during the three months ended March 31, 2024 was $5.8 million driven by purchases of marketable securities of $77.1 million, partially offset by the proceeds from maturities of marketable securities of $72.0 million and purchase of fixed assets and intangibles of approximately $0.6 million.
Current wording
Net cash used in investing activities during the six months ended June 30, 2024 was $3.7 million driven by purchases of marketable securities of $114.0 million, and the purchase of fixed assets and intangibles of approximately $1.6 million. This was partially offset by the proceeds from maturities of marketable securities of $112.0 million.
Previous wording
Net cash used in financing activities during the three months ended March 31, 2025 was $11.5 million driven by the payments for repurchase of shares of $10.6 million and repayment of loan of $1.5 million, partially offset by the proceeds from a line of credit of $0.7 million.
Current wording
Net cash used in financing activities during the six months ended June 30, 2025 was $14.1 million, driven by the payments for repurchase of shares of $15.1 million and repayment of loan of $1.7 million, partially offset by the proceeds from a line of credit of $2.1 million.
Previous wording
Net cash provided by financing activities during the three months ended March 31, 2024 was $1.6 million driven by the proceeds from a line of credit of $1.4 million.
Current wording
Net cash used in financing activities during the six months ended June 30, 2024 was $0.1 million, driven by the payments for the repurchase of share of $2.7 million. This was partially offset by the proceeds from a line of credit of $1.4 million and the proceeds from the issuance of common stock under employee stock plans of $0.7 million.
Previous wording
During the three months ended March 31, 2025, there were no material changes to our contractual obligations and commitments from those described under “Management’s Discussion and Analysis of Financial Condition” which is contained in our Form 10-K and filed with the SEC on February 28, 2025.
Current wording
During the six months ended June 30, 2025, there were no material changes to our contractual obligations and commitments from those described under “Management’s Discussion and Analysis of Financial Condition” which is contained in our Form 10-K and filed with the SEC on February 28, 2025.