MAXCYTE THIRD QUARTER EARNINGS CONFERENCE CALL - MAXCYTE INC

Explicit Guidance:

• FY2026 Total Revenue: Updated to at least $34.5 million (vs. prior $34 million), comprising ~$28 million core revenue and ≥$6.5 million SPL milestones/royalties.
• FY2026 Revenue Breakdown: Expect ~$4 million in milestones and ~$2.5 million in royalties; $4 million in milestone revenue already received year-to-date.
• FY2026 Core Revenue Growth: Expect ~15% year-over-year growth in the second half of 2026.
• FY2027 Outlook: Expect the combined company to have an annual cash burn of < $10 million in 2027, excluding further capital deployment and acquisition costs.
• FY2026 Cash Position: Expect to exit 2026 with at least $133 million in cash, cash equivalents, and investments on a pro forma basis (excluding acquisition costs).
• Akron Revenue Guidance: Akron expected to generate $28 million in revenue for 2026 (approx. $23 million in 2025); low-to-mid-teens annualized growth expected in 2027 with potential for acceleration as commercial programs scale.
• Akron Profitability: Expected to generate $7 million to $8 million in EBITDA in 2026; cash flow positive as of today.
• Cost Synergies: Anticipate $3 million to $4 million in additional cost efficiencies through integration (consolidation of corporate functions).

Business-Segment Outlook:

• Commercial Exposure: Combined company expected to support five commercially approved therapies and four additional late-stage registrational programs, tripling exposure to commercial assets compared to standalone MaxSight.
• Revenue Mix & Stability: Combined recurring revenue mix expected to increase from 57% (current) to 74%; commercial-stage customer revenue expected to represent approximately 30% of total combined revenue (up from 27% concentration in MaxSight standalone).
• Customer Concentration: Largest customer concentration expected to decrease from 27% (standalone) to approximately 14% (combined).
• Pipeline Scale: Combined company embedded in >95 clinical-stage programs (including >85 from Akron), with potential for up to three approved products from MaxSight and four from Akron in the next 24 months.
• Product Strategy: Accelerating DTX adoption to engage customers earlier in R&D; leveraging cross-selling to expand into all 770 ex-vivo cell and gene therapy programs (doubling addressable base by covering both non-viral and viral therapies).
• Geographic Expansion: Pursuing growth in Asia Pacific (China, Japan, India) and Europe alongside existing US footprint.

Market and Competitive Outlook:

• Demand Trends: Strong demand across core customer base excluding one major partner; double-digit year-over-year growth in instrument sales and processing/assembly (PA) revenue.
• Pricing & Margins: Akron maintains mid-60% gross margins; MaxSight targeting high-70% gross margins for the full year 2026; potential to integrate Akron's margins closer to MaxSight's over time.
• Competitive Positioning: Combined entity positioned as a broader self-help manufacturing partner with "sticky" revenue due to regulatory specs (DMFs) embedded in customer workflows; minimal customer overlap (10%) allowing for immediate cross-selling opportunities.
• Pricing Power: Akron's closed liquid formats and regulatory grade quality command mid-60% margins, indicating strong pricing power; MaxSight shifting mix toward higher-margin GMP instruments.

Macro / Industry Outlook:

• Cell Therapy Market: Confident in continued uptake of cell therapies (e.g., Vertex CashChevy saw ~30% QoQ growth); expecting commercialization of multiple programs over the next 24 months.
• Regulatory Environment: No specific regulatory headwinds mentioned; strong focus on "regulatory grade" products with DMFs referenced in IND/BLA submissions as a key differentiator.
• Economic Outlook: No specific macroeconomic concerns raised; focus remains on stabilizing revenue base and achieving profitability through scale.

Strategic Initiatives:

• Acquisition (Akron Bio): Definitive agreement to acquire Akron Bio for $151.8 million ($105M cash, $26.8M stock, $20M deferred). Closing expected soon.
• Financing: Entered credit facility of up to $75M ($55M term loan, $20M revolver); expect to draw $20M on term loan and $2M on revolver at closing.
• Commercial Integration: Embedding MaxSight commercial team (US, Europe, Asia-Pac) with Akron over 6–12 months to leverage existing sales reps and Field Application Scientists.
• Leadership: Appointed Siddharth Kapilashwar as new Chief Corporate Development Officer (ex-Danaher).
• M&A Discipline: Transaction selected as it meets criteria for scale, cash flow positivity, recurring revenue, and TAM expansion; no further M&A announced.

Risks and Headwinds to Outlook:

• Customer Funding Cycles: Reduced exposure to early-stage funding risk due to increased commercial mix (30% of revenue), but early-stage program risks remain in the pipeline.
• Inventory/Seasonality: Vertex noted seasonality in Q4 for CashChevy; historical program rationalization and inventory drawdowns previously impacted PA revenue (now stabilized).
• Integration Risks: Future cash burn guidance assumes successful integration and realization of $3M–$4M cost synergies.
• Cannibalization/Overlap: Minimal current customer overlap (10%); risk of execution challenges in cross-selling to the remaining 90% of the market.
• Acquisition Timing: FY2027 guidance excludes Akron contribution as the acquisition has not closed; financial metrics for 2026 exclude Akron revenues.

Management Tone on the Future:

• Confidence Level: High confidence in the "next chapter" and path to profitability; described as "one of the most exciting moments in our company's history."
• Strategic Shift: Explicit pivot toward a durable, recurring revenue model; moving from clinical-stage reliance to commercial-scale revenue dominance.
• Forward-Looking Sentiment: Management expects the company to exit 2026 with a "more stable revenue base" and "accelerated path to profitability," viewing the combined entity as a "broader self-help manufacturing partner."

Miscellaneous:

• Transaction Timeline: Akron revenue guidance ($28M) applies to FY2026 standalone; combined FY2027 outlook assumes integration.
• Debt: No debt on balance sheet pre-acquisition; new debt facility ($55M term + $20M revolver) used to fund transaction while maintaining flexibility.
• Share Count: $26.8 million in stock issued as part of acquisition consideration.