Ginkgo Bioworks Holdings, Inc. (DNA) reported fourth‑quarter and full‑year 2025 financial results that fell short of revenue expectations but beat earnings expectations. Fourth‑quarter revenue totaled $33.318 million, a $4.3 million shortfall from the consensus estimate of $37.617 million. The company posted a loss per share of $1.42, which surpassed the consensus estimate of $1.80, giving the company an EPS beat of $0.38.
Revenue was driven by the Cell Engineering segment, which generated $26 million in the quarter, down 26% year‑over‑year, while the Biosecurity segment contributed $7 million. Full‑year revenue was $170 million, a 25% decline from $226 million in 2024, reflecting a broader slowdown in the company’s core services business.
Management did not provide a 2026 revenue forecast, instead focusing on cash burn metrics. The company projected cash burn for 2026 to be between $125 million and $150 million, a reduction from prior periods, and emphasized the need to preserve liquidity as it pursues its autonomous laboratory strategy.
CEO Jason Kelly highlighted the company’s strategic shift, noting that spinning off the biosecurity business into a private entity with new investors would allow that unit to grow faster while enabling Ginkgo to concentrate its cash investment on autonomous labs. Kelly added, “We are making 2026 a year of investment in our autonomous lab. This year, we will focus Ginkgo’s efforts on autonomous labs as the common platform for biotechnology research and invest to extend our current lead in technology.” He also said, “We are commercializing our autonomous lab through two distinct pathways: through our cloud lab services and by building autonomous labs for customers.”
Investors reacted negatively to the results, citing revenue softness, the absence of a 2026 revenue forecast, and the divestiture of the biosecurity business as key concerns. Analysts noted that while the EPS beat was encouraging, the revenue miss and lack of forward guidance raised doubts about the company’s near‑term top‑line trajectory.
The earnings miss underscores the challenges Ginkgo faces in transitioning from a milestone‑based model to a recurring‑revenue platform. The company’s focus on autonomous labs and AI, coupled with a disciplined cash burn plan, signals a long‑term strategic pivot, but the current revenue decline and limited guidance suggest that investors will closely monitor the company’s execution of this transformation.
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