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DATE

Wednesday, Aug. 12, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer-Maher Masoud
• Chief Financial Officer-Parmeet Ahuja
• Senior Director of Business Development-Sean Menarguez
• Investor Relations-Erik Abdo

TAKEAWAYS

• Total Revenue -- $7.3 million, representing a 15% decrease year over year, driven by lower core revenue and program discontinuations.
• Core Revenue -- $6.5 million, reflecting a 21% decrease due to discontinued partner programs and the timing of instrument placements.
• SPL Program-related Revenue -- $0.8 million, consisting almost entirely of royalty revenue compared to $0.3 million in the prior year quarter.
• Instrument Revenue -- $1.8 million, compared to $2.1 million in the second quarter of 2025, reflecting typical timing variability in customer purchases.
• License Revenue -- $1.8 million, a decrease from $2.6 million in the prior year quarter due to previously disclosed partner program discontinuations.
• Processing Assembly Revenue -- $2.3 million, compared to $3.1 million in the prior year, which was elevated by tariff-related demand.
• GAAP Gross Margin -- 77%, a decrease from 82% in the second quarter of 2025, driven by a higher proportion of lower-margin instrument revenue.
• Non-GAAP Adjusted Gross Margin -- 77%, excluding inventory provisions and SPL revenue, compared to 83% in the second quarter of 2025.
• Operating Expenses -- $15.8 million, a 25% reduction year over year, reflecting the full benefit of cost efficiency actions taken in 2025.
• Net Loss -- $8.9 million, representing a reduction from the $12.4 million net loss reported in the comparable prior year quarter.
• Cash and Investments -- $141.9 million as of June 30, 2026, with the company reporting zero debt on the balance sheet.
• Share Repurchase Program -- $5.5 million deployed out of a $10 million board-authorized program as of the call date.
• Total Partner Pipeline -- 30 total license partnerships, comprising 29 Strategic Platform License (SPL) partners and one enterprise partnership.
• Clinical Programs -- 12 programs currently in the clinic, with five partner programs holding the potential for commercial launch within the next two years.
• Full Year 2026 Revenue Guidance -- $30 million to $32 million, consisting of $25 million to $27 million in core revenue and $5 million in SPL revenue.
• SPL Guidance Detail -- $3 million in anticipated milestone revenue and $2 million in anticipated royalty revenue for the full year.
• Year-End Cash Guidance -- at least $130.5 million, excluding any additional capital deployed toward share repurchases.
• CASGEVY Performance -- $76 million in second-quarter revenue reported by partner Vertex, representing 75% sequential growth.
• SeQure Revenue -- $500,000 in the second quarter, including both license and service revenue for gene editing risk assessment.
• EBITDA -- a loss of $9.3 million, compared to a loss of $13.1 million in the second quarter of 2025.

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RISKS

• Masoud noted that the company entered the year facing headwinds "including inventory drawdown by our largest customer, and headwinds resulting from the discontinuation of a few partner clinical programs last year."
• Ahuja reported that gross margins were negatively impacted by product mix, "driven by a higher proportion of instrument revenue, which carries lower gross margins than our licenses."
• Masoud stated that while the company has a broad pipeline, "any individual programs carries clinical or commercial risk" that could impact future regulatory milestones or royalties.

SUMMARY

MaxCyte (MXCT +9.45%) management reported second-quarter financial results that exceeded internal expectations despite year-over-year revenue declines attributed to customer inventory adjustments and discontinued clinical programs. The company stated that first-half results reflect a stabilization of the business, with management reiterating full-year guidance and projecting a return to growth in the second half of the year. A central development reported was the establishment of a multiplatform enterprise partnership with Genentech, transitioning the company from a single-program licensing model toward a framework that supports multiple cell therapy programs across the entire development life cycle. The company also indicated that disciplined cost management has significantly reduced operating expenses and net losses as it continues to invest in analytical services and new instrument platforms.

• Masoud stated, "We believe this structure reflects how large pharmaceutical organizations increasingly want to deploy enabling technologies as enterprise wide platforms that support multiple programs."
• Management reported that the processing assembly inventory drawdown from its largest customer has largely run its course and is not expected to be a factor in the second half of 2026.
• The company noted that its ExPERT DTx platform provides customers with a seamless path to scale from early discovery to cGMP manufacturing without requiring further engineering adjustments.
• The company is expanding its infrastructure in Asia Pacific, specifically in China and Japan, to support clinical programs that may eventually transition to the U.S. and European markets.
• Management confirmed that five partner programs are moving toward late-stage development, with at least one program potentially launching as early as next year.

INDUSTRY GLOSSARY

• SPL (Strategic Platform License): A partnership agreement providing therapeutic developers access to MaxCyte's technology in exchange for milestones and royalties.
• Processing Assembly (PA): Single-use consumables used with MaxCyte instruments for cell engineering.
• Electroporation: A method of using electrical pulses to create temporary pores in cell membranes to introduce genetic material or other molecules.
• SeQure: MaxCyte's proprietary gene editing risk assessment assays and services.
• cGMP (current Good Manufacturing Practice): Regulations enforced by the FDA to ensure the quality and safety of pharmaceutical products.
• ex vivo: Procedures or treatments performed on cells outside of a living organism.
• in vivo: Procedures or treatments performed within a living organism.

Full Conference Call Transcript

Operator: Good day. Thank you for standing by. Welcome to the MaxCyte Second Quarter Earnings Conference Call. At this time, all-- After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press star-11 on your telephone. You will then hear automated messages by saying it is raised. [Inaudible] To withdraw your question, please press star-11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Erik Abdo of Investor Relations. Please go ahead.

Erik Abdo: Good afternoon, everyone. Thank you for participating in today's conference call. Joining me on the call from MaxCyte, I have Maher Masoud, President and Chief Executive Officer; Parmeet Ahuja, chief financial officer, and Sean Menarguez, senior director of business development. Earlier today, MaxCyte released financial results for the second quarter ended June 30, 2026. A copy of the press release is available on the company's website. Before we begin, I need to read the following statement. Statement or comments made during this call may be forward looking statements within the meaning of federal securities laws.

Any statements contained in this call other than statements of historical fact including those that relate to expectations or predictions of future events results, or performance, are forward looking statements. Actual results may differ materially from those expressed or implied in any forward looking statements due to a variety of factors, which are discussed in detail in our SEC filings. Except as required by applicable law the company has no obligation to publicly update any forward looking statements whether because of new information, future events, or otherwise. And with that, I will turn the call over to Maher.

Maher Masoud: Thank you, Eric. Good afternoon, everyone, and thank you for joining MaxCyte's second quarter 26 earnings call. MaxCyte reported $7.3 million of total revenue in the second quarter, including $6.5 million of core revenue and $0.8 million of SPL program related revenue, which consists of milestones and royalties. Results were ahead of our expectations and consistent with the framework we laid out coming into the year. As expected, we entered 2026 facing several headwinds. Including inventory drawdown by our largest customer, and headwinds resulting from the discontinuation of a few partner clinical programs last year. Despite those challenges, our objective was clear. Stabilize revenue in the first half and to return to growth in the second half.

Our first half results reflect the stabilization where both our Q1 and Q2 revenues were ahead of our expectations. And we remain confident in our ability to achieve our goal of returning to growth in the back half of the year. We achieved sequential revenue growth in Q2 compared to Q1, primarily driven by instrument placements across our portfolio including our recently launched DTx platform. We also continue to see GTx placement across biotech and academic customers, reflecting ongoing program advancement. Processing assembly revenue remained stable sequentially supported by our SPL portfolio. The second quarter reflected disciplined execution against our operating plan, resulting in improved first half financial results.

We delivered a meaningful reduction in net loss year over year despite the revenue headwinds we face heading into 2026. And we expect to build on that progress as we execute against our plan and return to revenue growth. Furthermore, we have continued to invest in R&D priorities, that expand our platform and strengthen our long term growth opportunities. Investments in ExPERT DTx, SeQure, and newer strategic collaborations are designed to broaden how we engage with customers from early discovery through clinical development and commercial manufacturing while further diversifying MaxCyte's revenue streams over time. Additionally, I want to highlight a significant milestone for the company. We recently announced our multiplatform technology license partnership with Genentech.

Which we believe reflects the growing recognition of MaxCyte's technology across the ecosystem from early research all the way through commercial manufacturing. Under the agreement, MaxCyte provides Genentech with access to our ExPERT GTx platform and additional platform technologies. Including our electroporation and analytical assessment capabilities. Across research, clinical development, and manufacturing workflows. The partnership is structured to support multiple programs and to enable Genentech's ex vivo cell engineering activities from early discovery through cGMP manufacturing. I want to be clear about why I believe this agreement is so important for MaxCyte. It is an evolution in how we partner with the largest players in our industry.

Rather than licensing our technology on a single program basis, we have established an enterprise level relationship with Genentech that supports multiple cell therapy programs under a single framework. We believe this structure reflects how large pharmaceutical organizations increasingly want to deploy enabling technologies as enterprise wide platforms that support multiple programs. We expect this trend will allow MaxCyte to participate more broadly across the development life cycle of a customer's portfolio, not just 1 product at a time. The result is multiple platforms being used across a portfolio of programs rather than just for 1 program. We structured the partnership with Genentech with the goal of creating long term value for MaxCyte.

While shifting a greater proportion of that value earlier in the customer life cycle. We expect that will mean greater revenue capture during research and clinical development, across many of our platforms. Durable recurring license, and platform access revenue, complemented by milestone based opportunities. And continued demand for our instruments. Processing assemblies, and analytical technologies. The agreement also provides participation in commercial manufacturing through annual licensing, and platform realization. While the structure differs from a traditional SPL, we believe the risk adjusted economics are more favorable on a partnership level given the enterprise portfolio based relationship across the entire development life cycle.

This enterprise based model monetizes multiple revenue streams, across the customer relationship while reducing our dependence on the outcome of any single clinical program. This agreement structure complements our SPL model. It does not replace it. We believe SPLs remain the right commercial solution for many of our biotech customers who are developing individual therapeutic programs and we expect to continue selling SPLs going forward. Over the past several years, we have consistently maintained strong royalty base economics across our SPL partnerships. And our current pipeline gives us confidence in our ability to continue doing so. Reflecting the value of our offering to cell and gene therapy developers.

Our existing SPL agreements continue under the contractual terms, including acquired entity provisions where applicable. Our pipeline continues to support attractive royalty based SPL opportunities, and we expect both commercial models to coexist each serving different customer needs. Beyond our relationship with Genentech, we believe this partnership establishes a commercial framework that can be applied with other large pharmaceutical organizations over time. It helps validate the breadth and strength of MaxCyte's technology portfolio, expand our addressable market within large pharma, and demonstrate our ability to engage a leading global biopharmaceutical company at an enterprise level. Overall, I am very excited about what this partnership represents for MaxCyte. And about the opportunities it creates for the future.

On the instrument side, ExPERT DTx adoption continues to build with encouraging early traction across discovery and early optimization workflows. In both ex vivo and in vivo cell and gene therapy. As I have discussed on prior calls, the DTx is fully compatible with the rest of our ExPERT platform. Which gives customers who adopt the instrument and discovery a seamless path to scale on our STx and GTx instruments for cGMP manufacturing and ultimately into a partnership agreement. We expect DTx adoption to build through the balance of 2026 and into next year. We also continue to see steady progress with SeQure in the quarter.

The regulatory environment continues to evolve in our favor, and we continue to expect year over year growth for SeQure assay services and licenses in 2026. We firmly believe that SeQure assays will become part of the industry standard for off target risk assessment and gene editing. Turning to SPL program related revenue. We recognized $0.8 million in the second quarter. Which was comprised of nearly all royalties. Vertex reported approximately $76 million of CASGEVY revenue for the second quarter of 26. Reflecting approximately 75% sequential growth versus Q1 26, and 150% year over year growth. On its earnings call, Vertex noted that more cash heavy infusions were completed in the first half of 26 than in all of 2025.

Additionally, Vertex also indicated that more than 100 patients their treatment journey for CASGEVY during the second quarter. Which marked the third consecutive quarter with more than 100 patient initiations. They also noted that regulatory submissions for CASGEVY are now complete in Saudi Arabia and The UK, in the 5 to 11 age group. And they are seeing continued strong uptake. In The UK Italy, and Middle East. Overall, we remain very encouraged by CASGEVY's continued commercial trajectory and we truly believe in its long term transformative potential for patients. Turning to our customers. We have 30 total license partnerships, which includes 29 SPL partners, and our recently announced multiplatform enterprise partnership with Genentech.

We continue to see encouraging progression across our partner pipeline, with multiple clinical stage programs moving toward late stage development. Importantly, we have 5 partner programs with the potential to begin commercial launches in the next couple of years, including as early as next year. While any individual programs carries clinical or commercial risk, we believe the breadth and diversification of our multiple shots on goal give us a high probability of generating meaningful core revenue regulatory milestones, and commercial royalties over time. Our SPL portfolio remains a key driver of long term value as is evident by the growing commercial royalty revenue and the advancement of a significant number of the SPL programs through the clinic.

Looking to the second half of the year, we remain confident in our return to revenue growth. We expect growth to be driven primarily by instrument placements, supported by stable license revenue, and processing assembly demand from our SPL partners. Including our recently announced partnership. The continued rollout of ExPERT DTx, and a healthy commercial funnel across both new and existing customers. On the processing assembly side, a significant portion of the inventory drawdown from our largest customer is now behind us. We expect stable processing assembly demand as the SPL related program headwinds we experienced in the first half also have largely subsided. Taken together, these factors give us strong confidence in our outlook for 2026.

To close, I am pleased with the execution of our team in the second quarter. The Genentech partnership agreement represents a meaningful step forward in how we engage with our customers. And reinforces the growing role our platform plays across the cell and gene therapy ecosystem. We are proud of our accomplishments and our positioning for long term growth. And plan to continue to invest in the business with financial and commercial discipline as we execute in the second half of 26 and beyond. I will now turn the call over to Parmeet. Parmeet?

Parmeet Ahuja: Thank you, Maher. Total revenue in the second quarter of 26 was $7.3 million compared to $8.5 million in the second quarter of 25. Representing a 15% decrease. We reported core revenue of $6.5 million compared to $8.2 million in the comparable prior year quarter, representing a 21% decrease. Within core revenue, instrument revenue was $1.8 million compared to $2.1 million in the second quarter of 25. License revenue was $1.8 million compared to $2.6 million in the second quarter of 25, and processing assembly or PA revenue was $2.3 million compared to $3.1 million.

Core revenue in the second quarter was primarily impacted by lower license revenue due to discontinued partner programs, the timing of instrument placements, and a difficult year over year comparison driven by PA purchases in the second quarter of 25 that were accelerated by tariff related dynamics. Excluding these onetime tariff driven purchases, PA revenue was relatively flat year over year reflecting a stabilization in activity across our customer base. SeQure saw continued positive year over year momentum in the quarter. With total revenue of $500 thousand which includes both license and services revenue. SPL program related revenue in the second quarter was 800 thousand consisting almost entirely of royalty revenue.

Compared to $300 thousand of SPL program related revenue in the second quarter of 25. The year over year increase reflects continued growth in royalty revenue as CASGEVY adoption and commercial sales continue to build. Moving down the P&L. Gross margin was 77% in the second quarter of 26, compared to 82% in the second quarter of 25. Excluding inventory provisions and SPL program related non GAAP adjusted gross margin was 77% in the second quarter of 26, compared to non GAAP adjusted gross margin of 83% in the second quarter of 25. Gross margin for the quarter was primarily impacted by product mix. Driven by a higher proportion of instrument revenue, which carries lower gross margins than our licenses.

Looking forward, and as discussed on last quarter's call, we expect these trends to continue in the back half of the year. With gross margins in the mid-70s. Total operating expenses for the second quarter of 26 were $15.8 million compared to $21.2 million in the second quarter of 25. A decrease of approximately $5 million or 25%. We continue to remain disciplined in managing our cost structure. The reduction in operating expenses reflects the full run rate benefit of the restructuring, and cost efficiency actions we took in 2025. Which are now being realized across the P&L. Looking forward, we do not expect operating expenses to grow meaningfully from these current levels.

Even though we continue to make investments in product development, which we believe will contribute to our continued return to growth. As revenue growth returns in the second half of the year, we expect the combination of disciplined cost management and revenue growth to further reduce cash burn. We ended the second quarter with combined total cash equivalents and investments of $141.9 million and no debt. Last quarter, we announced the Board's authorization of a $10 million share repurchase program. As previously indicated, we intend to use the majority of the program before year end. Since the authorization, we have repurchased approximately $5.5 million of MaxCyte stock as of today. Our balance sheet is well positioned moving forward.

Enabling us to continue to invest strategically in our business. Continuing to our 2026 guidance. We are reiterating our 2026 outlook. And expect total revenue to be in the range of $30 million to $32 million consisting of $25 million to $27 million of core revenue and $5 million of SPL milestones and royalties. For the back half of 26, we expect low single digit year over year revenue growth. On the quarterly cadence, we expect usual seasonality with Q4 being slightly higher than Q3. Driven by typical year end budget flush dynamics. For SPL milestones and royalties guidance, we expect $3 million of revenue from milestones and $2 million of royalty revenues.

With $3 million of milestone revenue already received in Q1. Lastly, we anticipate ending 2026 with at least $130.5 million in cash equivalents and investments. Excluding any further capital deployed, toward our repurchase program. Now I will turn the call back over to Maher.

Maher Masoud: Thank you, Parmeet. And thank you to everyone at MaxCyte for their hard work and dedication each and every day to move our company and mission forward. I look forward to updating you on our next quarterly call. With that, I will turn the call back over to the operator for the Q&A. Operator.

Operator: Thank you. At this time, we will conduct a question and answer session. As a reminder to ask a question, you will need to press star-11 on your telephone and wait for your name to be announced. To withdraw your question, And our first question comes from the line of Julie Simmonds of Your line is now open.

Julie Simmonds: Thank you very much. Thanks for taking the question. So a couple of questions. Firstly, on the step up in instrument revenue, which is slightly higher than I was looking for. I was just wondering whether you could give any sort of indication as to where that is coming from, particularly in terms of your instrument portfolio. And then secondly, just on the guidance on the non core business revenue. That looks a little bit low to me given what you have already received in Mark milestones and also the run rate that Vertex is demonstrating currently. Any reasons why you have not changed that yet?

Maher Masoud: Sure. Let me take the first 1, Julie, and then, Parmeet, if you want to take the second part of the question. On the instrument side, Julie was across the board. We saw it in research, process development, and clinical as well. So there is not any 1 particular a product mix. You know, we saw some early traction with DTx. Continued traction in the clinical, the GTx and STx process development. So, really, it is a mix. We feel good, you know, where we are in the year and where we guided for the year in terms of instrument revenue as well. So it is within our expectations, a little bit higher than our expectations actually.

And we feel good exactly. it is it is going into the year that it would be around here. Parmeet, did you want to take the second part?

Parmeet Ahuja: Yeah. Julie, you pointed to the noncore revenue guidance. So after $2 million royalty, we recognized $1.2 million through first half. $400 thousand in Q1, and $0.8 million in Q2. You know, as you pointed out, CASGEVY beat market expectations this quarter, and we are starting to see real traction which supports the remaining royalty. And as we have discussed before, they can be quarter to quarter variability. As CASGEVY ramps consistent with what Vertex has communicated in their on their earnings call. You know, fundamentally, we are excited about the continued progress with CASGEVY with significant growth sequentially and year over year.

And, you know, as commercial sales continue to build, we will start to see the royalty revenue truly materialize in our P&L.

Maher Masoud: Can I add something there as well, Parmeet? So, Julie, obviously, Vertex commented on their call. They have now had 3 consecutive quarters of 100 patient initiations. More patients infused so far in the first half than all of last year. We just do not wanna comment on our-- you know, on our partner's in Vertex program. that is for them, but we are very excited about what we are seeing So I will leave it there.

Julie Simmonds: Okay. Thank you. Okay. I commit to. Thank you.

Operator: 1 moment for our next question. Our next question comes from the line of Hannah Hefley of Stephens Inc. Your line is now open.

Hannah Hefley: Hey, good afternoon. Thanks for taking the questions. it is good to see instrument demand kind of stabilize, and it sounds like that was pretty much across the board. Are you still seeing any pockets of hesitancy around CapEx? Or do you feel like that headwind is kind of behind you?

Maher Masoud: Parmeet, let me take that. Yeah. So we see stabilization. Both on the instrument side and on the processing assembly side as well, PAs. We feel the headwinds that we had last year are behind us, and we do not see any more pockets of, you know, of headwind demands in any way. So we feel good. This is a return back to stability and get back to growth in the second half, and it is exactly where we are. I mean, this is a good quarter for us. Have a good year ahead of us. it is exactly what we expect. We are we are seeing the funding exactly what we expect to go into the year.

Stability there. it is come back. We are we are growing from there. I mean, we have done and we are seeing across the board. If you look at our you know, our, you know, our revenue, you know, beat, it was both on the SPL and non SPL side as well. So a very good quarter for us. We do not see any pockets of headwinds ahead.

Parmeet Ahuja: Yeah. And maybe to build on that a little bit, Maher, you know, as we look ahead, Hannah, in a funnel, we are continuing to expect instrument revenue to be a primary driver. And much like this quarter, across both academic and industry. With a healthy distribution across our instrument portfolio. You know, we certainly have had a recently announced partnership with Genentech that will play a role in the second half. As well as the continued rollout of the DTx.

Hannah Hefley: Awesome. Thank you. And then as it relates to that Genentech partnership, can we expect to see more of those coming up? How does this kind of change your strategy going forward? Could you just talk about what we can expect there?

Maher Masoud: Absolutely. Great question, Hannah. So it is the strategy is twofold. The SPLs are still, you know, a big driver of the future growth of this company. We now have 2 ways of working with industry. 1 with biotechs through the SPLs and enterprise level multipartition agreements with Genentech and other large pharma and large biotech. Right? So it allows us to really now get into large pharma, which we have never done before, We are able to monetize on a risk adjusted basis, you know, programs here on a multi program basis, not just 1 program. So we feel good where we are. Right? We have a good funnel for the SPLs.

For the rest of the year going to next year as well. We now have an ability to and a model that works very well with large pharma, which we will look to continue to negotiate with other large pharmas. So this is a complementary basis. it is not 1 or the other. And this shows it really shows the power of our platform. Yeah. This is a case where with Genentech specifically we are supporting them with 2 of their clinical allo programs now as well as their preclinical research program. So it is a multi platform agreement. It shows the power and strength of our platform.

I-- but, you know, I keep reiterating that we are best in class. The investments we have made as well with the DTx where we now are the only company that has something that can take you from research all the way to commercial. Without needing any further scale up. No 1 can do that. that is us. So we feel very good where we are. The SPLs are our future. These multi partnership agreements are our future as well. it is you know, we believe in the space. The cell therapy space has stabilized.

We feel the future of the cell therapy space, and diversifying our revenues now throughout cell therapy. it is not just you know, small or smaller biotechs. it is biotechs, large biotechs, large pharma, multiple ways through analytical capabilities as well. With the SeQure Dx acquisition, which was part of the Genentech partnership as well. So we feel very good about this, Hannah.

Hannah Hefley: Alright. Thanks for the color. I will leave it there.

Maher Masoud: Absolutely. Thank you, Hannah.

Operator: Thank you. 1 moment for our next question. Our next question comes from the line of Matthew Hewitt of Craig Hallum Capital Group. Your line is now open.

Matt Hewitt: Good afternoon and congratulations on the progress made during the quarter. I am curious regarding the Genentech agreement, how have the discussions with some of your other larger customers changed, if at all? And as you go into that, you know, next round of discussions with those that maybe were in the pipeline, how do you decide who the better fit is, as far as for an SPL versus, the multi, platform agreement. Is there is it purely based on size? Is it the number of targets that the customer is looking at? Any color there would be helpful.

Maher Masoud: Yeah. Very good question. So let me take the first part. Has not changed the tenure of conversation with any of the current SPL you know, future partners in the funnel. You know, all of those, for the most part, are those biotech companies. The Genentech deal is a multi platform deal. Right? it is across the entire spectrum of the electric pressure side as well as the analytical SeQure. that is the color where with Genentech that we would pursue with other larger biotechs or with, you know, with large pharma as well.

It also allows us-- you know, with the Genentech deal, we are able to monetize the value much further up in the in the relationship. that is something that, you know, obviously, you know, with the baby biotechs, that is that is that is not a flavor for them. Right? that is more of the Genentech and those type of companies. So in essence, I say it again, Matthew. We have a model now for both our SPL biotech companies as well as the Genentech and other large pharma. And we are pursuing those. I mean, you know, we are speaking with other large pharma as well. We will continue to do so. They take time to transpire.

These are even with the SPLs, these are negotiations sometimes and discussions and working them early. Can take 18 months to develop plus And that is that is part of our model, but we now have a way to work with what we always said, the large pharma model. So not concerned in any way that is gonna change any of our current discussions. There are any changes, it is it is always in a good way.

Matt Hewitt: Got it. And then maybe shifting gears, you noted an uptick or at least some improvement in academic a couple times in your prepared remarks. Just curious what you are seeing there. Obviously, the funding environment from an academic perspective, my sense, remains pretty challenging. So the fact that you are seeing some improvement there, I think, bodes well. And I am just curious your expectations over the remainder of the year for that market segment. Thanks.

Maher Masoud: Yeah. Absolutely. So we are seeing in the academic side, we are seeing traction there. A lot of it is also related to this. These are academics that are taking clinical trials; these are-- they are pursuing clinical trials. So these are GMP based academic partners that we are working with and we are seeing that traction. We have always said that. You know? that is what is gonna see the future biotech the future SPLs. So we have made a conscious decision to go when we talked about going earlier in research, going earlier with the researchers, that is part of what we meant, and that is what we are seeing. And it is not a surprise to us.

It was actually part of our execution plan going into this year Let's go after let's diversify our revenue model. And that is 1 of the ways. So that is what you are seeing there, Matthew. it is really a way for us to capture the future SPLs I will say it. You know, we always said it before. The only platform anybody should be using for cell therapy is the MaxCyte platform. So we get in there early in the academic for these clinical trials that eventually will become future industry sponsored companies and trials. They should be working with us, and that is what we are doing.

Matt Hewitt: Great. Thank you.

Maher Masoud: Absolutely. Thank you, Matthew.

Operator: Thank you. 1 moment for our next question. Our next question comes from the line of Mark Massaro of BTIG. Your line is now open.

Megan: This is Megan on for Mark. Thank you guys for taking our questions. Mm-hmm. You touched on it a bit earlier, but with the $141.9 million in cash and investments on the balance sheet, What are you seeing in your inorganic deal pipe?

Maher Masoud: In our inorganic deal pipe. So ask that question 1 more time, Hannah. I wanna make sure we are clear what you are asking. I mean, Megan,

Megan: Yeah. Of course. So just to-- with all the cash and investments on the balance sheet, what you are looking or, like, what you are seeing in the deal pipeline. Oh, you mean in the M&A deal pipeline?

Maher Masoud: So let me tell you how we look at our cash balance sheet. So we have 3 ways of looking at this. We always invest in the organic growth of this company. That was the DTx. that is the continued investments right now in SeQure as well, building out their assays. that is first and foremost. We obviously always look for selective programs out there. You know, potential transactions out there. But, again, very, very selective. And then we are always looking to return back value to our shareholders. So that is that is why that you are seeing there, that is what we did. That was evident by the buyback that was approved by the board earlier this year.

Whereas Parmeet mentioned earlier, we have already purchased $5.5 million worth in the buyback. But it is an investment in MaxCyte first and foremost. Being very selective and returning, you know, capital and really shareholder value back to our investors.

Megan: Awesome. Thank you for the color there.

Megan: And then also just curious if you have seen any changes in the competitive environment over the past?

Maher Masoud: Okay. Good question. We have not seen changes in the competitive environment. In fact, with the recent transaction that we announced right now, we displaced a competitor in the clinic. We are we are still the best in class platform. We develop-- we are continuing to invest in the products themselves, in our ExPERT platform. Not just the ExPERT DTx that you are seeing. We continue to create application workflows that are proprietary to MaxCyte. These application workflows themselves are new product launches. Are things that we have that other companies do not have. We have a field based scientific team. We have a scientific team internally. We know cell therapy better than any other company out there.

So it is our platform. it is our scientists. We are not seeing any new competition, and we are displacing the competition. In both in academia and in industry now. So we feel very good where we are.

Megan: Great. Thanks again for the questions.

Maher Masoud: Thank you.

Operator: Thank you. 1 moment for our next question. Our next question comes from the line of Daniel Arias of Stifel. Your line is now open.

Daniel Arias: Yes. Hi, guys. Thanks for the questions. Maher, you kind of alluded to with the instrument commentary, but can you just maybe expand a little bit on the overall environment? I mean, some of the comments that have been made across the space have just been suggested of some improvement in biotech spending. Would you say that you are seeing that yourselves? And what is the overall feel on just the state of affairs when it comes to spending and pipeline management overall?

Maher Masoud: Yeah. Good question, Daniel. The information you see out there and what we are seeing out there in terms of return back to biotech funding, it is a bit different than the industry ran. So it is more outside of cell therapy. We are seeing more of a stabilization in cell therapy. it is not a return back to your 20, 21 years. that is not the case. But that is exactly what we expect to go into the year, and that is what we are operating within. that is why we are not expecting to come back to those 20, 21 years. We are actually diversifying our revenue model We are launching new products.

We are finding ways now to work with large pharma we have never done before. We are actually leaning into the cell therapy space. We do not need it to come back to those 20, 21 to get back to the growth that we are getting back to. So it is not quite the same as what you are seeing out there in terms funding for the bioprocessing or bioproduction market. it is it is not as robust as that, but we do not need it to be. We are we know exactly where it is. We are not seeing a headwind anymore. it is stabilized.

It has not gone back to some of the numbers you are seeing for the other spaces, but that is-- we knew that going into the year, and we feel good about this year and even going into next year.

Daniel Arias: Okay. Maybe just as a follow-up, the inventory work-down at the large account that you talked about, I think your largest customer, you said, has that run its course? Or is that a factor for the back half too?

Maher Masoud: No. It has. it is largely run its course. that is why we feel good. We said going into this year, there was a headwind that we would have in the first half. it is behind us now. And it will not have an effect going into the second half. I mean, Parmeet, anything to elaborate there?

Parmeet Ahuja: No. I think I think you answered that well.

Daniel Arias: Okay. Super. Thank you. Yep.

Operator: Thank you. 1 moment for our next question. Our next question comes from the line of Brendan Smith of TD Cowen. Your line is now open.

Brendan Smith: Great. Thanks for taking the questions, guys, and congrats on the quarter. Maybe just a quick follow-up to 1 of the previous questions on kind of broader momentum within cell therapy. I mean, we have heard from a few other tools sites this quarter that cell and gene therapy is maybe still lagging a bit behind other modalities. So to your point, I think things seem to have stabilized and maybe moving back in the right direction. So I guess, do you expect a material acceleration in some of these programs in the second half of the year and maybe demand with it? Or is that something we should maybe expect to be a little bit more 2027 weighted?

Just kind of curious how you are seeing that funnel at this point.

Maher Masoud: Very good question, Brendan. that is more in the 2027. We have the 5 programs. it is the beauty of our of our business model is that we sign these SPLs and these programs progress into the clinic. So these 14 clinical programs we have now we still expect 5 that are moving into pivotal. 1 has already moved into pivotal. it is actually part of what we reported in Q1 as well. that is more into 2027 where we expect them to potentially even have an approved product 2027 resulting from these 5 late stage programs.

So it is more I would not say, back half weighted. it is more going into 2027 where we see the impact of that.

Brendan Smith: Okay. Got it. that is helpful. And then I guess, maybe more broadly, I just wanted to ask, in terms of SPLs, potential new deal signings, we have seen some pretty convincing signs that some ex US markets are leaning even more aggressively into cell therapy, I think, especially in APAC. I guess, is that something MaxCyte could potentially capitalize on? Are there any kind of caveats or considerations to an SPL with those kinds of partners? Just any incremental color on how you guys are thinking about that too. Thanks.

Maher Masoud: Yeah. Great question, Brendan. that is something we began to look into a few years ago, and we knew where the space was going. We saw the investments in Asia Pacific, specifically in China. We have created a presence there. And we are seeing some growth there, granted from a smaller, you know, base, but we are seeing healthy growth there. And we continue to invest in Asia Pacific, specifically China, Japan, Korea, even India, and Australia. We are we are investing there, and that is exactly right. We are seeing a lot of programs being initiated there with the hopes of them making it to The US or to Europe. And working with those companies.

We are beginning to build that infrastructure there. We have a, you know, sales team and FAS team in Asia Pac. We have a general manager that is overseeing Asia Pacific for us as well. We are very cognizant of that, and we have a model for that. Same way we have a model with large pharma same way we have a model now with academia. Have a model where we are working with them in the clinic over there. That will then transpire into future SPLs and partnerships when they when they broaden their horizons The US and to Europe.

Brendan Smith: Got it. Sounds good. Appreciate the color, guys. Thanks. Absolutely. Thank you, Brendan.

Operator: Thank you. 1 moment for our next question. Our next question comes from the line of Julie Simmonds of Panmure Liberum. Your line is now open.

Julie Simmonds: Thank you very much. Just another quick question following up on the instruments. I was just wondering, now you have got sort of multiple different types in the market. Is there a big variation in the processing assembly revenue that comes from each of those? Or is there an expectation that DTx because it will be doing more? You are selling sort of more at lower price consumer I am just sort of trying to see if there is a mix effect that we might see there.

Maher Masoud: Let me take that, and then, Parmeet, if you wanna add to that. it is so the DTx has a higher pull through of processing assembly revenue. that is an early research both used cell therapy and in vivo. As well. We expect a higher pull through on the DTx PAs Obviously, the processing assemblies for your clinical, your GTx, that has-- begins to ramp as these programs go further into the clinic, especially when they go commercial. So it is it is a mix. So you have from early research to DTx, high pull-through. You have the ATX and STx that has their pull through not quite as high as what the DTx would be.

Obviously, they are at a higher price point as well. When you are doing process optimization going into the clinic. And then your cGMP, PAs, obviously, we can see right now from our largest customer have a significant and meaningful revenue for us. As we begin to see more of these SPLs go through late stages we are seeing right now, that our model is proving itself. As we see more programs get approved, we believe will have at least 1 next year, and potentially 1 next year, you are going to see more revenue growth from those PAs on the clinical side as well. So it is a mix.

High pull through early, and then you have much higher cost PAs that have a high ramp as programs go to pivotal and then to commercial.

Parmeet Ahuja: Yeah. it is just to maybe build on that, it is different price structure, obviously. Right? The idea with the GTx is to get in early, on the research side of things. We will have higher PA pull through. But, obviously, as Maher indicated, there are price differences there. As programs then scale up further to clinical and further. Mm-hmm.

Julie Simmonds: Okay. Thank you. And just on the SPLs, I mean, I gather there is sort of still a pipeline of ones that you are discussing. You have historically talked about sort of 3 to 5 a year. I mean, does that still seem reasonable sort of talking Genentech slightly because it is a slightly different offering.

Maher Masoud: It is. In terms of licenses, we still-- 3 to 5 is I think I mentioned on the last quarterly call, We sometimes will sign more than 5 as we have done a few years ago. Sometimes we will sell we will sign less than 3. But overall, 3 to 5, looking at the funnel, is a healthy number. We still feel confident we can sign 1 to 2 even in the back half of the year. That includes Genentech. So we feel good where we are in terms of all the licenses that we are signing. it is more the timing of where we are in the negotiations with the biotechs or even large pharma.

Some years, we might have more than 5. Some years, more than 3. But on average, you are gonna have that 3 to 5, you know, over the years.

Julie Simmonds: Okay. Thank you.

Maher Masoud: Thank you, Julie.

Operator: Thank you. I am showing no further questions at this time. I would like to turn it back to Maher Masoud, CEO, for closing remarks.

Maher Masoud: Thank you, operator, and thank you, everyone, for joining us again. Look forward to speaking to you on the next quarterly call.

Operator: Thank you for your participation in today's conference. This is concludes the program. You may now disconnect.