Education
About Us
Working with TipRanks
Follow Us
Rapid Micro Biosystems (RPID)
NASDAQ:RPID
Top Page
Rapid Micro Biosystems
(NASDAQ:RPID)
Select Model
Select Model
Rating:46Neutral
Price Target:
$2.50
▲(6.38% Upside)
Action:ReiteratedDate:03/14/26
The score is held down primarily by continued large losses, persistent cash burn, and reduced balance-sheet cushion despite improving gross margin and revenue growth. Technicals also remain weak with the stock below key moving averages. Offsetting these are constructive 2026 growth and margin-improvement guidance and strong commercial momentum from recent multi-system orders.
Positive Factors
Recurring revenue / Installed base
A majority share of recurring revenue (53%) and rising consumable sales provide durable revenue visibility and customer lock‑in. Consumables scale with testing volume, supporting predictable cash flow and margin expansion as the installed base grows and utilization increases over time.
Enterprise commercial traction & partnerships
Large multisystem orders and strategic partnerships with major biopharma and supply‑chain players indicate enterprise validation. Multi‑system deployments accelerate consumable demand, shorten sales cycles, and increase cross‑regional adoption, strengthening go‑to‑market durability.
Gross margin improvement & cost actions
Sustained gross margin improvement over multiple years, plus locked‑in cost reductions, signal improving unit economics. As product margins turn positive and service margins remain high, operating leverage should materially improve cash generation as revenue scales.
Negative Factors
Persistent cash burn
Continued multi‑year negative operating and free cash flow creates dependency on external financing and limits strategic flexibility. Even with improvement versus prior years, sustained burn constrains investment in validation, commercialization and product development until profitable cash generation is achieved.
Large recurring net losses
Deep, recurring losses reflect a cost structure that outpaces current revenue scale. Persistent negative margins impede internal funding of growth, pressure equity, and prolong reliance on capital markets, raising execution and dilution risk until margins sustainably improve.
Eroded equity and moderate leverage
Sharp equity erosion reduces the balance sheet cushion and increases refinancing and covenant risk. With moderate leverage and declining reserves, the company has less flexibility to absorb operational shocks or fund the validation/install cadence critical to converting placements into recurring revenue.
Rapid Micro Biosystems (RPID) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$106.84M
Dividend YieldN/A
Average Volume (3M)253.56K
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth16.63%
EPS Growth10.43%
CountryUS
Employees163
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.28
Shares Outstanding40,963,463
10 Day Avg. Volume146,703
30 Day Avg. Volume253,557
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)3.90
Price to Sales (P/S)3.86
P/FCF Ratio-4.06
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue3.26
Enterprise Value/Gross Profit18.74
Enterprise Value/Ebitda-2.48
Forecast
1Y Price Target
$8.00Price Target Upside240.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.94
Revenue Forecast (FY)$39.27M
Rapid Micro Biosystems Business Overview & Revenue Model
Company DescriptionRapid 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.
How the Company Makes MoneyRapid Micro Biosystems makes money primarily by selling its automated microbial detection platform and generating recurring revenue from ongoing consumables and services tied to the installed base. Key revenue streams include: (1) Product revenue from sales of Growth Direct systems and related hardware/accessories installed at customer sites; (2) Recurring consumables revenue from proprietary or dedicated test-related items used to run assays on the system (e.g., application-specific consumables required for routine operation), which can scale with customer testing volume; and (3) Service revenue from installation, validation/qualification support, maintenance contracts, and ongoing customer support/training associated with regulated QC environments. The model is typically characterized by an upfront instrument sale followed by higher-visibility recurring revenue as customers run routine testing and maintain systems over multi-year lifecycles. Information on specific pricing, customer concentration, or material named partnerships is null.
Rapid Micro Biosystems Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call balanced meaningful commercial momentum and tangible improvement initiatives against near-term operational and margin headwinds. Highlights include record quarterly revenue (+37% YoY), a strong increase in product revenue (+78% Q4), expanding strategic partnerships (Samsung, Amgen, MilliporeSigma), an installed base of 190 systems (155 validated), locked-in consumable cost reductions, and a concrete 2026 guide ($37M–$41M, ~20% gross margin). Lowlights center on a $1.1M inventory write-off that drove Q4 product margin to negative 8% and total gross margin to negative 3%, softer service revenue and margin, a widening placed-to-validated gap (timing risk), and an increased Q4 net loss ($12.5M). Management provided a clear pathway to margin recovery (cost reductions and service leverage) and set prudent guidance that incorporates timing uncertainty.Q4-2025 Updates
Positive Updates
Record Quarterly Revenue
Total Q4 revenue of $11.3M, a 37% year-over-year increase (Q4 2024: $8.2M) and a quarterly record; company noted 13 consecutive quarters of meeting or exceeding guidance.
Strong Product Performance and System Placements
Product revenue (systems + consumables) increased 78% in Q4 to $9.3M vs $5.2M a year ago; 16 Growth Direct systems placed in Q4 (record vs 6 in Q4 2024), ending the year with 190 systems placed globally (155 fully validated).
Recurring Revenue Strength
Full-year recurring revenue (consumables + service contracts) increased 15% and represented 53% of total revenue; full-year consumable revenue grew 17%, indicating continued utilization of installed base.
Major Commercial Wins and Partner Momentum
Announced expanded multisystem order from Samsung Biologics and a record multisystem order from Amgen (global rollout across North America, Europe and Asia); MilliporeSigma partnership progressing with demo labs and specialist training in Europe and Asia to drive future placements.
Gross Margin Improvement Trajectory and Cost Reduction Actions
Management highlighted more than a 50 percentage-point improvement in total gross margin over the last three years; locked-in consumable/material cost reductions expected to meaningfully improve product margins starting in H1 and accelerating in H2 2026.
2026 Financial Guidance and Outlook
Initiated 2026 revenue guidance of $37M–$41M with 30–38 system placements; full-year gross margin target ~20% with Q4 2026 exit in the mid-20% range; product margin expected to turn positive across the year with full-year product margin in high single digits to low teens and service margin >40%.
Product and Technology Roadmap
Next-generation cloud-native software platform expected in H2 2026 to deliver modern UI, cloud deployment options and potential AI-driven analytics/services to monetize fleet data long-term.
Solid Balance Sheet and Liquidity
Ended the year with $39M in cash and investments and $25M of unused capacity under debt facility; net cash burn was $3M in Q4 (company notes Q4 typically lowest burn).
Negative Updates
Inventory-Related Charge and Product Margin Impact
Recorded a $1.1M write-off of unusable consumable inventory in Q4, which reduced product margin by ~12 percentage points; reported Q4 product margin was negative 8% (which would have been +4% excluding the charge).
Negative Overall Q4 Gross Margin and Service Margin Decline
Combined Q4 gross margin was negative 3% (negative $0.3M) versus 12% in Q4 2024; service margin fell to 22% in Q4 2025 from a record 47% a year ago due to lower service revenue.
Lower Service and Validation Timing Variability
Service revenue fell to $2.0M in Q4 from $3.0M in Q4 2024; timing and sequencing of installations/validations drove quarter-to-quarter variability and contributed to lower service leverage.
Widening Gap Between Placed and Validated Systems
The placed vs validated gap has widened since 2023 (190 systems placed, 155 validated); management attributes this mainly to timing and customer resourcing, creating a near-term backlog of validations.
Increase in Net Loss and EPS Impact
Q4 net loss was $12.5M versus $9.7M in Q4 2024; net loss per share widened to $0.28 from $0.22, driven by inventory charges, lower service margins and higher interest expense.
Short-Term Margin Pressure and Q1 FY2026 Expectations
Q1 2026 is expected to have product margin in negative single digits and overall gross margin only in the mid-single digits, reflecting near-term pressure before H2 cost benefits are realized.
Guidance Uncertainty and Timing Risk
2026 system placement guidance (30–38) reflects uncertainty about timing and scale of large multisystem orders; the low end assumes no new large multisystem orders beyond Samsung and does not assume full year-2 MilliporeSigma commitments (some may slip to Q1 2027).
Company Guidance
Management guided full-year 2026 revenue of $37–$41 million and 30–38 system placements, with roughly 20% total gross margin for the year (Q4 exit in the mid‑20% range), product margin in the high single-digits to low teens and service margin above 40%; Q1 guidance is at least $7.5 million of revenue and at least 5 system placements with Q1 gross margin in the mid‑single digits (product margin negative single digits, service margin >30%); they expect at least 25 validations in 2026 (≥3 in Q1), at least 30% of placements in H1 and seasonal peak placements in Q4; operating expenses are forecast at $47–$51 million, noncash expenses ~$10 million (≈$3M D&A, $7M stock compensation), CapEx ~$2M, interest income ~$1M and interest expense ~$2M; guidance builds on Q4 2025 results of $11.3M revenue (+37% YoY), 16 systems placed (190 systems placed year‑end, 155 validated), product revenue $9.3M (+78%), consumables +17% for the year, recurring revenue +15% to 53% of total, Q4 product margin -8% (including a $1.1M consumable write‑off; ex‑charge +4%), Q4 total gross margin -3% (ex‑charge +7%), $39M cash and investments, $25M unused debt capacity and $3M net cash burn in Q4.Rapid Micro Biosystems Financial Statement Overview
Summary
Revenue growth and improving gross margin (to ~23% in 2025) show better product economics, but profitability remains very weak (net margin around -140% in 2025) with continued negative operating/free cash flow (~-$31M in 2025) and materially eroded equity, keeping overall financial strength low.Income Statement
Revenue growth has been consistently strong (up ~31% in 2023 and ~10% in 2025), and gross margin has improved materially from negative levels in 2020–2024 to ~23% in 2025, signaling better product economics/scale. However, profitability remains deeply negative: net losses are roughly $47–61M per year (2020–2025) on a ~$34M 2025 revenue base, with net margin still around -140% in 2025. Overall, the top-line trajectory is encouraging, but the cost structure is still too heavy and keeps the income statement score low.24
Negative
Balance Sheet
The balance sheet shows moderate leverage overall, with debt-to-equity at ~0.72 in 2025 (higher than prior years) and total debt of ~$23.9M against ~$33.2M of equity. The key concern is the sharp erosion in equity over time (from ~$221.0M in 2021 to ~$33.2M in 2025), reflecting sustained losses and reducing financial flexibility. Returns on equity are meaningfully negative, consistent with ongoing unprofitability, but the company is not yet in an extreme debt position.56
Neutral
Cash Flow
Cash generation remains weak, with operating cash flow negative each year and still about -$31.1M in 2025, alongside negative free cash flow of about -$31.9M. There is improvement versus 2022–2024 burn levels, but free cash flow worsened year over year in 2025 (down ~17%). Cash burn remains the central risk, implying continued reliance on financing unless profitability and working capital dynamics improve.28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 33.59M | 28.05M | 22.52M | 17.13M | 23.23M |
| Gross Profit | 7.61M | -109.00K | -5.49M | -8.54M | -7.74M |
| EBITDA | -44.14M | -46.56M | -53.46M | -60.38M | -45.70M |
| Net Income | -47.12M | -46.89M | -52.47M | -60.81M | -73.52M |
Balance Sheet | |||||
| Total Assets | 74.85M | 98.17M | 143.45M | 190.65M | 241.17M |
| Cash, Cash Equivalents and Short-Term Investments | 38.30M | 50.73M | 92.05M | 108.65M | 193.50M |
| Total Debt | 23.87M | 6.17M | 7.35M | 7.97M | 0.00 |
| Total Liabilities | 41.65M | 22.82M | 25.46M | 26.48M | 20.19M |
| Stockholders Equity | 33.21M | 75.35M | 117.99M | 164.17M | 220.98M |
Cash Flow | |||||
| Free Cash Flow | -31.91M | -45.52M | -46.93M | -65.29M | -58.18M |
| Operating Cash Flow | -31.06M | -44.15M | -45.08M | -58.55M | -54.96M |
| Investing Cash Flow | 14.33M | 36.66M | 42.15M | -93.47M | -13.29M |
| Financing Cash Flow | 19.77M | 203.00K | 149.00K | 693.00K | 216.75M |
Rapid Micro Biosystems Technical Analysis
Negative
2.35
Price Trends
3.88
Negative
3.71
Negative
3.47
Negative
Market Momentum
-0.39
Positive
27.76
Positive
3.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPID, the sentiment is Negative. The current price of 2.35 is below the 20-day moving average (MA) of 3.75, below the 50-day MA of 3.88, and below the 200-day MA of 3.47, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 27.76 is Positive, neither overbought nor oversold. The STOCH value of 3.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RPID.
Rapid Micro Biosystems Risk Analysis
Rapid Micro Biosystems disclosed 70 risk factors in its most recent earnings report. Rapid Micro Biosystems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rapid Micro Biosystems Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $121.47M | -2.59 | -103.93% | ― | -20.10% | 7.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $163.87M | -2.63 | -632.26% | ― | 5.01% | 20.76% | |
46 Neutral | $106.84M | -2.75 | -68.83% | ― | 16.63% | 10.43% | |
46 Neutral | $57.44M | -1.67 | -82.79% | ― | 15.59% | 4.13% | |
45 Neutral | $70.59M | -10.02 | 532.96% | ― | 21.02% | -200.88% | |
43 Neutral | $187.40M | -10.76 | -55.72% | ― | -4.39% | 11.70% |
* Healthcare Sector Average
RPID
Rapid Micro Biosystems
2.35
-0.24
-9.27%
LUNG
Pulmonx
1.36
-6.41
-82.50%
LNSR
LENSAR
5.91
-8.91
-60.12%
HYPR
Hyperfine
1.24
0.42
51.22%
SGHT
Sight Sciences
3.47
0.58
20.07%
LUCD
Lucid Diagnostics
1.25
-0.27
-17.76%
Rapid Micro Biosystems Corporate Events
Business Operations and StrategyFinancial Disclosures
Rapid Micro Biosystems Posts Record 2025 Results, Guides Higher
Positive
Mar 12, 2026
On March 12, 2026, Rapid Micro Biosystems reported record results for the fourth quarter and full year 2025, with Q4 revenue rising 37% year over year to $11.3 million and full-year revenue up 20% to $33.6 million, driven by increased product and recurring revenue despite a wider quarterly net loss of $12.5 million. The company highlighted strong commercial momentum, including a record multi-system Growth Direct order from Amgen in late 2025 and a meaningful multi-system order from Samsung Biologics in early 2026, and guided 2026 revenue to $37–$41 million with improved gross margins and 30–38 system placements, underscoring growing global adoption of its platform even as it continues to operate at a loss.
For 2025, Rapid Micro Biosystems placed 28 Growth Direct systems and achieved modest positive gross margin for the year, aided by tighter operating expenses but offset by inventory write-offs that pressured margins in the fourth quarter. The company ended 2025 with approximately $39 million in cash and $25 million of undrawn debt capacity, providing liquidity to fund its strategy of expanding system placements, enhancing gross margins, and advancing new product innovation while large biopharmaceutical customers standardize on its automation technology.
The most recent analyst rating on (RPID) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Rapid Micro Biosystems stock, see the RPID Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.