RPID

• Core Operational Milestones • Achieved the placement of the 200th Growth Direct system globally, with 4 new system placements in Q2 2026. Ended the quarter with 169 fully validated systems globally, with a strong validation pipeline entering H2 2026. • Consumable revenue and units hit new quarterly records; the company expects to ship its 10 millionth consumable in Q3 2026, reflecting growing adoption and routine platform use. • Implemented real-time production performance tracking technology on the consumables manufacturing line, improving overall equipment effectiveness (throughput and quality) to drive cost efficiencies. • Executed a focused efficiency program in Q2 2026 to streamline functions, expected to reduce annual expenses and cash usage by $3 million starting in 2027, without cutting investment in core growth initiatives.

• Commercial and Customer Engagement • Hosted the second 2026 regional Growth Direct Day event, hosted by Amgen in North America, featuring peer-to-peer discussions on microbial QC automation benefits and global deployment strategies. The final 2026 event will be held in October 2026 in Darmstadt, Germany, hosted by Millipore Sigma. • Customer conversations consistently highlight the Growth Direct platform as a critical enabling technology for full workflow automation, digital transformation, and data integrity improvements in biomanufacturing, with increasing customer focus on broader, multi-site enterprise deployments. • The commercial pipeline is expanding across all regions, with particularly robust growth in North America for enterprise and multi-system opportunities. U.S. biomanufacturing reshoring and capacity expansion is expected to become a meaningful growth driver starting in 2027.

• Millipore Sigma Collaboration • The partnership remains in its early stages, but Millipore Sigma contributed to system placements in H1 2026, with leadership teams meeting in Europe in June 2026 to advance joint commercial, supply chain, and product innovation initiatives. • Millipore Sigma's global commercial reach and customer relationships are growing the shared opportunity funnel, and management expects their contribution to increase meaningfully in H2 2026 and 2027. Procurement and supply chain collaborations with Millipore Sigma are ongoing, but are not expected to deliver material margin improvements until 2027.

• Full year 2026 total revenue guidance is maintained at $37 to $41 million, with 30 to 38 total system placements for the year.
• Full year 2026 validation guidance is raised from prior levels to at least 27 completed validations, with at least 10 validations expected in Q3 2026.
• Q3 2026 revenue is expected to be at least $9.5 million, including at least 7 system placements. Consumables revenue is expected to be relatively consistent with Q2 2026 levels, before increasing sequentially in Q4 2026. Service revenue is expected to increase sequentially in both Q3 and Q4 2026.
• Q3 2026 gross margin is expected to be at least 20%, with Q4 2026 gross margin projected to reach the mid to high 20% range. Full year 2026 total gross margin is expected to be approximately 20%.
• Full year 2026 operating expenses are projected to be between $51 and $53 million, with cash usage expected to decline meaningfully in H2 2026 compared to H1.
• Long-term guidance reaffirms a target of average annual revenue growth above 20% through 2028, and a gross margin target of 50% or higher by the end of 2028. The company targets positive operating cash flow by the end of 2028, and expects 2027 full-year gross margin to be higher than the 2026 exit rate.

Total company revenue for Q2 2026 was $8.1 million, a 11% year-over-year (YoY) increase. Product revenue (which includes systems and consumables) grew 10% YoY to $5.3 million, accounting for ~65.4% of total revenue. This growth was driven by over 20% YoY growth in consumables revenue, which reached a new quarterly record. Product gross margin improved 8 percentage points YoY to negative 3%, while consumable margins themselves improved 17 percentage points YoY. Service revenue increased 13% YoY to $2.8 million, representing ~34.6% of total revenue, driven by higher validation activity (9 validations completed in Q2 2026 vs 2 in Q2 2025). Service gross margin improved 17 percentage points YoY to a record 49%. Recurring revenue grew 14% YoY to $5 million, accounting for ~61.7% of total revenue, while non-recurring revenue was $3 million (~38.3% of total revenue). Total gross margin for the quarter was 15%, up from 4% YoY, with an absolute gross profit of $1.2 million, up from $0.3 million YoY.

• Forward-looking statements, including all guidance and long-term targets, are subject to material risk of differing from actual results, including risks related to the company's ability to meet guidance milestones, comply with debt facility obligations, achieve required milestones to access future debt tranches, and access additional capital via warrant exercises.
• The company carries existing indebtedness that may impact its ability to operate and grow its business, and relies on external capital sources to fund operations until it achieves positive cash flow.
• Actual gross margin expansion depends on sustained volume growth, successful execution of material cost reduction and manufacturing efficiency initiatives, and consistent validation activity; lower-than-expected volume could negatively impact margins.
• Millipore Sigma is not expected to meet its full 2026 annual commitment for system placements, creating some uncertainty around partnership contribution in the current year.
• Macroeconomic conditions and customer capital spending trends can impact purchasing decisions for new systems, which could affect revenue and margin outcomes.

Q: Management reaffirmed full-year revenue guidance even though Millipore Sigma is expected to contribute more in H2 than previously assumed at the low end of guidance. Why not raise the lower bound of the guidance range, and how is Millipore's progress tracking?

A: The low end of guidance did not include Millipore Sigma's full projected annual contribution. While the partnership's progress across commercial, supply chain, and technology initiatives is very encouraging, and H2 contribution will increase meaningfully from H1 levels, Millipore is not expected to meet its full 2026 calendar year obligation under the contract. The stronger expected H2 contribution from Millipore underpins management's confidence in reaffirming the existing guidance range.

Q: What is the mix of new vs existing customer system placements so far in 2026, and what trends are you seeing in deal size?

A: The company's land-and-expand strategy means the majority of placements come from existing customers expanding across sites or applications, though there are also new customers each period. The Millipore Sigma collaboration is growing new customer volume, and increasingly, new customers are entering with multi-system deals right out of the gate. This signals the technology is becoming a more standard offering in the industry, marking a new phase of market development.

Q: How should we model consumables growth for the back half of 2026, and what is the outlook for sequential gross margin expansion into 2027?

A: Consumables revenue is expected to be relatively flat sequentially from Q2 to Q3, then step up in Q4, with strong year-over-year growth expected in the second half. To hit the 50% gross margin target by the end of 2028, gross margin must increase sequentially every year; 2027 full-year gross margin is expected to be higher than the 2026 exit rate (mid to high 20% in Q4 2026). Key initiatives driving expansion include material cost reduction for systems, ongoing throughput and efficiency improvements for consumables, and volume leverage for service margins.

Q: What is the timeline for Millipore Sigma procurement collaborations to contribute to gross margins, and what exposure does the company have to the fast-growing CAR-T cell therapy market?

A: Procurement and sourcing initiatives with Millipore Sigma are ongoing, but qualifying new materials takes time, so no material margin contribution is expected in H2 2026; benefits are projected to start in 2027. The Growth Direct platform's combination of automation, volume capacity, and accuracy is an extremely strong fit for cell and gene therapy, including CAR-T manufacturing. Strong consumable performance in Q2 2026 partially reflects healthy demand from this fast-growing segment.