Ginkgo Bioworks Holdings, Inc.

Previous wording

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. As Ginkgo has matured, we have shifted our downstream value towards milestone payments and commercial royalties rather than equity. In addition, commencing in the second quarter of 2024, we announced changes in prospective commercial terms, including the removal of downstream value share from certain program types.

Current wording

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 minimal incremental costs. We have structured a variety of value sharing mechanisms, including royalties, lump-sum milestones, and equity payments. As Ginkgo has matured, we have shifted our downstream value towards milestone payments and commercial royalties rather than equity. In addition, commencing in the second quarter of 2024, we announced changes in prospective commercial terms, including the removal of downstream value share from certain program types.

Previous wording

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).

Current wording

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).

Previous wording

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

Current wording

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.

Previous wording

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. 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. However, our R&D expenses could increase in 2026 due to continued investment in our tools offerings. The nature, timing, and estimated costs required to support our growth will be dependent on advances in technology, our ability to attract new customers, and the rate of market penetration within our existing customer industries.

Current wording

We expense R&D costs as incurred. 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. However, our R&D expenses could increase in 2026 due to continued investment in our tools offerings. The nature, timing, and estimated costs required to support our growth will be dependent on advances in technology, our ability to attract new customers, and the rate of market penetration within our existing customer industries.

Previous wording

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. 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, and other inorganic growth initiatives.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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

Current wording

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

Previous wording

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. 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.

Current wording

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. 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.

Previous wording

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.

Current wording

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.

Previous wording

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

Current wording

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.

Previous wording

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.

Current wording

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 $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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

Restructuring charges were zero and $4.5 million for the three months ended March 31, 2026 and 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. See Note 3 of our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further details.

Current wording

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

Previous wording

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.

Current wording

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.

Previous wording

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. 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.

Current wording

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.

Previous wording

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. 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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

(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.

Current wording

(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.

Previous wording

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

Current wording

(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.

Previous wording

(4)Represents transaction and integration costs directly related to mergers and acquisitions, including: (i) legal, consulting, and accounting fees associated with acquisitions; (ii) post-acquisition employee retention bonuses; (iii) (gain)/loss from changes in the fair value of contingent consideration liabilities resulting from acquisitions; 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.

Current wording

(4)Represents transaction and integration costs directly related to mergers, acquisitions, and divestitures, including: (i) legal, consulting, and accounting fees associated with acquisitions; (ii) post-acquisition employee retention bonuses; (iii) (gain)/loss from changes in the fair value of contingent consideration liabilities resulting from acquisitions; 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 and six months ended June 30, 2026 and June 30, 2025, respectively.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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 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.

Previous wording

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.

Current wording

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.

Previous wording

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. Non-cash adjustments primarily consisted of $17.4 million of stock-based compensation expense, $14.8 million of depreciation and amortization, $7.4 million non-cash lease expense, a $4.0 million change in fair values of various assets and liabilities, and a $3.7 million loss on investments.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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. The net change in operating assets and liabilities was primarily due to (i) a $4.0 million increase in accounts receivable due to timing of customer billings, (ii) a $2.5 million decrease in accounts payable, accrued expenses and other current liabilities, partially offset by (iii) a $1.0 million decrease in prepaid expenses and other current assets, and (iv) a $0.7 million increase in deferred revenue. Non-cash adjustments primarily consisted of $3.0 million of stock-based compensation expense and $0.5 million of depreciation and amortization.

Current wording

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. Non-cash adjustments primarily consisted of $6.5 million of stock-based compensation expense and $1.1 million of depreciation and amortization.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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

Current wording

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