Ginkgo Bioworks (NYSE:DNA) Releases Earnings Results

Ginkgo Bioworks (NYSE:DNA) issued its quarterly earnings data on Thursday. The company reported ($0.64) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.68) by $0.04, FiscalAI reports. The company had revenue of $27.71 million during the quarter, compared to the consensus estimate of $21.50 million. Ginkgo Bioworks had a negative net margin of 249.20% and a negative return on equity of 54.95%.

Here are the key takeaways from Ginkgo Bioworks’ conference call:

• Ginkgo announced its first autonomous-lab hardware sale to a pharma company, Novo Nordisk, and wins involving universities, ARPA-H and the NSF. Management said systems typically take six to 12 months to install, so customer wins may take time to translate into revenue.
• Cloud Lab services added 20 new customer logos in the quarter, and Ginkgo highlighted demand for specialized data services, including its antibody developability consortium and work with frontier AI labs. These opportunities are management’s view of potential growth areas; the call did not quantify their revenue contribution.
• Q3 revenue was $28 million, down 6% year over year; revenue for the first nine months fell 37% (about 32% excluding a prior-year non-cash item). Q3 revenue rose sequentially partly because of a catch-up on a modified long-term contract.
• Cost reductions improved Q3 results: R&D expense fell 48%, G&A fell 32%, net loss from continuing operations narrowed 44% to $41 million, and adjusted EBITDA improved 58% to negative $22 million. Management reaffirmed full-year 2026 cash-burn guidance of $125 million to $150 million.
• Ginkgo ended the quarter with $285 million in cash and marketable securities, no bank debt, and $86 million in restricted cash. Q3 cash burn was $27 million, while adjusted EBITDA included about $14 million of quarterly costs for unused leased space.

Ginkgo Bioworks Stock Performance

Shares of Ginkgo Bioworks stock traded up $1.30 on Friday, hitting $11.26. 3,035,139 shares of the company’s stock traded hands, compared to its average volume of 2,566,626. The firm’s 50-day moving average is $9.90 and its 200 day moving average is $8.62. Ginkgo Bioworks has a 52-week low of $5.37 and a 52-week high of $18.22.

Insider Buying and Selling at Ginkgo Bioworks

In related news, insider Jason Kelly sold 45,682 shares of Ginkgo Bioworks stock in a transaction on Monday, October 19th. The shares were sold at an average price of $10.14, for a total value of $463,215.48. Following the completion of the sale, the insider owned 129,065 shares in the company, valued at approximately $1,308,719.10. The trade was a 26.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Reshma Shetty sold 18,803 shares of the company’s stock in a transaction on Monday, October 19th. The shares were sold at an average price of $10.14, for a total transaction of $190,662.42. Following the completion of the sale, the insider directly owned 356,329 shares in the company, valued at $3,613,176.06. This represents a 5.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 136,525 shares of company stock valued at $1,379,699. Corporate insiders own 12.69% of the company’s stock.

Analyst Ratings Changes

DNA has been the topic of several analyst reports. TD Cowen lifted their price target on shares of Ginkgo Bioworks from $9.00 to $11.00 and gave the stock a “hold” rating in a research note on Tuesday, October 13th. BTIG Research reissued a “sell” rating and issued a $5.00 price objective on shares of Ginkgo Bioworks in a research report on Friday, September 4th. Oppenheimer set a $5.00 target price on Ginkgo Bioworks in a research note on Wednesday, September 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Ginkgo Bioworks in a research report on Thursday, October 15th. Finally, Zacks Research raised Ginkgo Bioworks to a “hold” rating in a research report on Monday, August 17th. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $7.00.

About Ginkgo Bioworks

Ginkgo Bioworks is a biotechnology company that develops and deploys biological systems for commercial and industrial applications. Its platform is designed to help customers program cells to produce a wide range of products, including pharmaceuticals, food ingredients, agricultural inputs, specialty chemicals and materials. The company combines biological engineering, automation, software and data science to design, build and test engineered organisms.

Ginkgo provides services through its cell-programming platform and biological engineering foundry, supporting activities such as genetic design, strain construction, laboratory testing and process development.