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1. Company Snapshot

1.a. Company Description

Rapid Micro Biosystems, Inc., a life sciences technology company, provides products for the detection of microbial contamination in the manufacture of pharmaceutical, medical devices, and personal care products in North America, Europe, and Asia.The company offers Growth Direct platform, which includes Growth Direct system, proprietary consumables, lab information management system connection software, and comprehensive customer support and validation services.Its platform automates and modernizes the manual microbial quality control (MQC) testing workflows for therapeutic modalities, such as biologics, vaccines, cell and gene therapies, and sterile injectables.


The company also provides installation and verification, technical training, and support services.Its solutions are used in environmental monitoring, water testing, bioburden, and sterility release testing applications.The company was formerly known as Genomic Profiling Systems, Inc.


and changed its name to Rapid Micro Biosystems, Inc.in January 2007.Rapid Micro Biosystems, Inc.


was incorporated in 2006 and is headquartered in Lowell, Massachusetts.

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1.b. Last Insights on RPID

Rapid Micro Biosystems' recent performance was driven by strong revenue growth, with preliminary unaudited fourth quarter and full year 2024 revenue exceeding expectations. The company's mission-critical automation solutions for the efficient manufacturing and fast, safe release of healthcare products continue to gain traction, with a growing customer base and increasing demand for its products. Additionally, the company's participation in key industry conferences, such as the Stifel 2024 Healthcare Conference and the 43rd Annual J.P. Morgan Healthcare Conference, highlights its growing presence and influence in the life sciences technology sector.

1.c. Company Highlights

2. Rapid Micro Biosystems Beats Q3 Revenue Expectations

Rapid Micro Biosystems reported Q3 revenue of $7.8 million, exceeding the midpoint of their guidance range, and marking their 12th consecutive quarter of meeting or beating revenue guidance. The company's consumables revenue increased 40% to a quarterly record, driving a 30% year-over-year increase in recurring revenue. Gross margins were 9% in Q3, with a 70 basis point improvement from the prior year quarter. The actual EPS came out at '-0.26', in line with estimates. The company's financial performance has been robust, with a significant improvement in recurring revenue.

Publication Date: Nov -20

📋 Highlights
  • Revenue Outperforms Guidance:: Q3 revenue of $7.8M exceeded midpoint of guidance, marking 12th consecutive quarter of meeting/missing guidance.
  • Consumables Growth Drives Recurring Revenue:: Consumables revenue surged 40% to a record, boosting recurring revenue by 30% YoY.
  • Record Multi-System Order:: Secured a top-20 biopharma order for deployments in North America, Europe, and Asia-Pacific, contributing to Q4 and 2026 revenue.
  • 2025 Guidance Raised:: Full-year 2025 revenue guidance lifted to $33M+, including at least 27 Growth Direct System placements.
  • Gross Margin Improvement:: Q3 gross margin rose 70 bps YoY to 9%, with further gains expected in 2026 via cost reductions and Merck collaboration.

Order Intake and Pipeline

The company secured a record multi-system order from a top 20 global biopharma customer, with deployments across multiple sites in North America, Europe, and Asia Pacific. This order will contribute to system placements and revenue in Q4 and 2026. The company has had a large single order and anticipates more of these going forward, with multiple multi-system orders in its funnel. As the company mentioned, "The Merck Millipore relationship is expected to build upon this momentum and success, with two aspects: Merck selling units in its own channel and cost efficiencies."

Guidance and Outlook

The company raised its full-year 2025 revenue guidance to at least $33 million, including at least 27 Growth Direct System placements. For Q4, the company expects gross margin percentage to be in the mid-single digits, with positive product margins and lower service margins. Operating expenses are expected to step down from Q3 to Q4, and to be around $48 million for the full year. Analysts estimate next year's revenue growth at 18.4%.

Valuation

With a P/S Ratio of 6.33, the company's valuation appears to be factoring in significant growth prospects. The EV/EBITDA ratio stands at -4.48, indicating that the company's enterprise value is not yet supported by its EBITDA. The ROE and ROIC are both negative, at -73.91% and -65.71% respectively, reflecting the company's current loss-making position.

Growth Prospects

The company is focused on global pharmaceutical and biopharma, and its strategy to develop adjacent markets, such as personal care, is through collaboration with Merck MilliporeSigma, leveraging their larger sales force. The onshoring conversation is not expected to be a huge factor in '26 but could start to hit in '27. The company thinks that '27 could feature more onshoring and '28 and beyond, absolutely.

3. NewsRoom

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Rapid Micro Biosystems, Inc. (RPID) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Rapid Micro Biosystems, Inc. (RPID) Reports Q3 Loss, Misses Revenue Estimates

Nov -07

Source: zacks.com

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Rapid Micro Biosystems Reports Third Quarter 2025 Financial Results; Announces Record Multi-System Customer Order and Raises Full-Year Revenue and System Placement Guidance

Nov -07

Source: globenewswire.com

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Rapid Micro Biosystems (RPID) to Release Earnings on Friday

Oct -31

Source: defenseworld.net

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Rapid Micro Biosystems to Participate in the Stifel 2025 Healthcare Conference

Oct -30

Source: globenewswire.com

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Rapid Micro Biosystems to Announce Third Quarter 2025 Financial Results on November 7, 2025

Oct -28

Source: globenewswire.com

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Trinity Capital Inc. Provides $45 Million in Growth Capital to Rapid Micro Biosystems, Modernizing Healthcare Industry Practices

Sep -22

Source: prnewswire.com

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Rapid Micro Biosystems to Present at the H.C. Wainwright 27th Annual Global Investment Conference

Sep -02

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Growth Direct Systems, Proprietary Consumables, Laboratory Information Management System Connection Software and Services

Expected Growth: 10.2%

Growing demand for rapid microbial detection systems in pharmaceutical, biotechnology, and food safety industries drives market growth, fueled by increasing regulatory requirements, need for efficient quality control, and advancements in LIMS integration.

Service

Expected Growth: 10.2%

Growing demand for rapid microbial detection and identification in pharmaceutical and biotechnology industries, driven by increasing regulatory requirements, outsourcing of quality control, and adoption of single-use technologies.

7. Detailed Products

Growth Direct

A rapid microbial detection system that provides accurate and reliable results in just hours, allowing for faster product release and reduced inventory holding costs.

Compendial Test Kits

A range of test kits that provide a rapid and convenient way to detect microbial contamination in pharmaceutical and biotechnology products.

Rapid Microbial Detection Systems

Automated systems that use proprietary Growth Direct technology to detect microbial contamination in pharmaceutical and biotechnology products.

Environmental Monitoring Systems

Systems that provide real-time monitoring of environmental samples, enabling rapid detection of microbial contamination and reducing the risk of product contamination.

Data Analytics Software

Software that provides real-time data analytics and reporting, enabling users to track and trend microbial contamination data.

8. Rapid Micro Biosystems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for Rapid Micro Biosystems, Inc. because the company's products are highly specialized and there are no close substitutes available in the market.

Bargaining Power Of Customers

The bargaining power of customers is medium for Rapid Micro Biosystems, Inc. because although customers have some bargaining power, the company's products are highly differentiated and customers are dependent on the company's products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Rapid Micro Biosystems, Inc. because the company is not dependent on a few suppliers and has multiple options for sourcing raw materials.

Threat Of New Entrants

The threat of new entrants is high for Rapid Micro Biosystems, Inc. because the biotechnology industry is highly competitive and new entrants can easily enter the market with innovative products.

Intensity Of Rivalry

The intensity of rivalry is high for Rapid Micro Biosystems, Inc. because the biotechnology industry is highly competitive and companies are constantly competing with each other to develop new products and technologies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.86%
Debt Cost 3.95%
Equity Weight 94.14%
Equity Cost 9.82%
WACC 9.48%
Leverage 6.23%

11. Quality Control: Rapid Micro Biosystems, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rapid Micro Biosystems

A-Score: 4.3/10

Value: 7.2

Growth: 3.6

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
ClearPoint Neuro

A-Score: 4.2/10

Value: 6.0

Growth: 4.4

Quality: 4.1

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
NeuroOne Medical Technologies

A-Score: 3.7/10

Value: 6.8

Growth: 6.1

Quality: 4.2

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Accelerate Diagnostics

A-Score: 3.5/10

Value: 10.0

Growth: 5.6

Quality: 5.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Cytek Biosciences

A-Score: 3.4/10

Value: 6.3

Growth: 7.0

Quality: 3.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Pulmonx

A-Score: 3.1/10

Value: 9.0

Growth: 4.6

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.98$

Current Price

3.98$

Potential

-0.00%

Expected Cash-Flows