Executive Summary / Key Takeaways

• MaxCyte's core investment thesis centers on its proprietary Flow Electroporation technology and Strategic Platform License (SPL) model, positioning it as a critical enabler for the rapidly evolving cell and gene therapy market, including the first FDA-approved non-viral therapy.
• Recent performance in Q1 2025 showed a 1% increase in core revenue year-over-year, driven by strong PA demand (+13%) and initial contributions from the SeQure Dx acquisition, offsetting cautious capital spending impacting instrument sales (-25%).
• The strategic acquisition of SeQure Dx expands MaxCyte's offerings into gene editing assessment services for both ex-vivo and in-vivo therapies, leveraging existing commercial channels and adding a high-margin revenue stream expected to contribute at least $2 million in 2025.
• MaxCyte continues to grow its high-value SPL portfolio, adding TG Therapeutics (TGTX) in Q1 2025 to reach 29 partners, with a robust pipeline and expectation to sign 3-5 new SPLs annually, providing future milestone and royalty potential (forecasted at ~$5 million in 2025).
• Despite a dynamic macro environment and customer caution on CapEx, MaxCyte reaffirmed its 2025 guidance for 8%-15% core revenue growth and expects to end the year with a strong cash position of approximately $160 million, supported by operational efficiencies and disciplined spending.

MaxCyte, Inc. stands at the intersection of advanced cell engineering and the burgeoning field of cell and gene therapies. At its core, the company is an enabler, providing the foundational technology that allows researchers and therapeutic developers to precisely and efficiently modify cells – a critical step in creating the next generation of potentially curative medicines. MaxCyte's journey began with the development of its proprietary Flow Electroporation technology, a method designed to introduce molecules like genetic material or proteins into cells by temporarily increasing cell membrane permeability using an electric field. This technology forms the basis of the company's ExPERT platform, a suite of instruments (ATx, STx, GTx, VLx) and consumables (Processing Assemblies or PAs) tailored for various scales of cell engineering, from discovery research to large-scale therapeutic manufacturing.

The company's strategic evolution has been marked by the development of its Strategic Platform License (SPL) business model. This model moves beyond transactional sales, establishing long-term partnerships with cell therapy developers. Under SPLs, MaxCyte provides access to its technology, scientific and regulatory support, and shares in the potential success of partner programs through pre-commercial milestones and commercial royalties. This approach has been validated by significant milestones, including enabling the first FDA-approved ex-vivo cell therapy, CASGEVY, and rapidly expanding its SPL portfolio to 29 partners.

In the competitive landscape of cell engineering and transfection technologies, MaxCyte faces a mix of large, diversified life science tools companies and more specialized players. Larger competitors like Thermo Fisher Scientific (TMO) and Lonza Group (LZAGY) offer broad portfolios that include electroporation systems and CDMO services. Thermo Fisher, with its vast scale and distribution, can offer competitive pricing and integrated solutions, holding a significant market share in general lab tools. Lonza provides end-to-end CDMO capabilities, which can be attractive to companies seeking integrated manufacturing solutions. Bio-Rad Laboratories (BIO) also competes with its electroporation systems, often focusing on research-grade, cost-effective tools.

MaxCyte differentiates itself through the specific performance characteristics of its Flow Electroporation technology. The company highlights its platform's ability to achieve high cell viability and transfection efficiency across a wide variety of cell types, which is crucial for the success of complex cell therapies. While specific, universally comparable quantitative metrics across all competitor platforms are challenging to ascertain from public data, MaxCyte emphasizes its technology's superior results in therapeutic applications, claiming advantages in efficiency and viability that can streamline process development and potentially reduce overall costs for its partners. This technological edge, combined with its dedicated scientific, regulatory, and commercial support teams, forms a competitive moat, particularly in the high-stakes clinical and commercial cell therapy space. The company's ability to convert partners using alternative platforms, as seen with two SPLs in 2024 switching from a different electroporation technology, underscores the perceived performance benefits of the ExPERT platform. Despite appearing to lack proprietary, quantifiable technology differentiators, the company's performance claims and partner conversions suggest a practical advantage in therapeutic applications.

Recent Financial Performance and Operational Dynamics

MaxCyte's financial performance in the first quarter of 2025 reflected a dynamic market environment. Total revenue for the quarter was $10.4 million, an 8% decrease compared to $11.3 million in Q1 2024. This decline was primarily attributed to lower SPL program-related revenue and instrument sales, partially offset by growth in PA revenue.

Core revenue, which management views as a key indicator of underlying business health, showed resilience, increasing by 1% year-over-year to $8.2 million in Q1 2025. This was driven by a healthy 13% increase in PA revenue to $3.9 million, reflecting continued demand and usage of the platform by customers in research and clinical stages. Assay service revenue also contributed, albeit modestly at $0.1 million, following the SeQure Dx acquisition. However, instrument revenue decreased by 25% to $1.4 million, impacted by the cautious capital spending environment among customers. License revenue remained relatively stable at $2.5 million.

Gross margin in Q1 2025 was 86%, down slightly from 88% in the prior year, primarily due to the mix shift with lower program-related revenue. On a non-GAAP adjusted basis, excluding inventory provisions and program-related revenue, gross margin remained stable at 83%, indicating consistent profitability on core product sales. The company's decision to bring manufacturing in-house, while potentially impacting margins in the short term due to capacity build-out, is viewed strategically as essential for controlling quality and scaling production to support future commercial demand from multiple partners.

Operating expenses decreased by 5% to $21.2 million in Q1 2025 compared to $22.2 million in Q1 2024. This reduction was a result of operational efficiency initiatives implemented in 2024, leading to lower R&D and sales & marketing expenses (driven by headcount adjustments and reduced professional fees/travel). However, general and administrative expenses increased, partly due to costs associated with the SeQure Dx acquisition. Despite the expense management efforts, MaxCyte reported a net loss of $10.3 million in Q1 2025, compared to $9.5 million in Q1 2024, reflecting the revenue decline and increased G&A. Interest income also decreased due to lower interest rates and cash balances.

As of March 31, 2025, MaxCyte maintained a strong liquidity position with $138.3 million in cash, cash equivalents, and short-term investments. The company has no debt. Management believes its current cash position, combined with expected internally generated cash flows, is sufficient to fund operations and capital expenditures for at least the next 12 months.

Strategic Expansion and Future Outlook

MaxCyte's strategic direction is focused on expanding its reach within the cell and gene therapy workflow and capitalizing on the long-term growth of the industry. A key move in this direction was the acquisition of SeQure Dx in January 2025. This acquisition adds gene editing assessment services to MaxCyte's portfolio, allowing the company to engage with customers earlier in the discovery and preclinical stages. SeQure Dx's services are applicable to various gene editing modalities, including those used in both ex-vivo and in-vivo therapies, broadening MaxCyte's potential customer base beyond its traditional ex-vivo electroporation focus to include companies using viral (AAV) and lipid nanoparticle (LNP) delivery methods. Management views gene editing assessment as an increasingly critical component of therapy development, particularly as regulators and developers emphasize safety. The integration of SeQure Dx is leveraging MaxCyte's existing commercial and field application scientist teams, and the business is expected to contribute at least $2 million in revenue in 2025, weighted towards the latter half of the year.

The SPL model remains central to MaxCyte's growth strategy. The addition of TG Therapeutics in Q1 2025 brought the total number of active SPL partners to 29. These partnerships provide a pipeline of potential future revenue streams tied to the clinical and commercial success of partner programs. MaxCyte expects to continue adding 3-5 new SPLs per year, reflecting the robust pipeline of prospective partners and the continued adoption of its platform. The company estimates the total pre-commercial milestone potential from its 18 active clinical programs under existing SPLs to be greater than $220 million (including ~$10 million already received), highlighting the significant embedded value in these agreements.

Looking ahead, MaxCyte reiterated its full-year 2025 guidance, projecting core revenue growth of 8% to 15% compared to 2024, inclusive of the SeQure Dx contribution. This outlook is based on the assumption that the current cautious operating environment for customers does not materially change. Management anticipates sequential increases in core revenue throughout the year, driven by specific sales opportunities and internal execution rather than a broad market recovery. Instrument sales, which were soft in Q1, are expected to improve from this level.

SPL program-related revenue is forecast to be approximately $5 million in 2025. This is a risk-adjusted estimate that includes both expected milestones and commercial royalties (like from CASGEVY). While inherently variable, the growing number of programs in the pipeline increases the potential for future revenue from this category. MaxCyte supports a growing number of programs with potential regulatory approval as early as 2027, addressing indications across oncology, genetic diseases, and increasingly, autoimmune diseases.

Operationally, MaxCyte continues to focus on efficiency and targeted investments. Efforts initiated in 2024 to streamline the organization and reduce cash burn are ongoing. Resources are being reallocated to high-growth areas, including organic R&D for new products and complementary workflows aimed at expanding the total addressable market and providing more complete solutions for customers. Product launches are expected this year as a result of these R&D efforts. Investment in the VLX platform is being moderated, focusing on specific use cases like bioprocessing where its scale is valuable.

MaxCyte expects to end 2025 with approximately $160 million in cash, cash equivalents, and investments, reflecting its disciplined spending and the cash impact of the SeQure Dx acquisition. The company is also pursuing a potential delisting from the AIM market to consolidate its listing on Nasdaq, which is expected to result in cost savings.

Risks and Challenges

Despite the strategic progress and differentiated technology, MaxCyte faces several risks. The macroeconomic environment remains dynamic, and customer caution regarding capital expenditures could persist or worsen, impacting instrument sales. While MaxCyte has mitigated immediate tariff impacts, potential retaliation could affect international revenue. The timing and achievement of SPL milestones and commercial royalties are inherently uncertain, leading to potential variability in SPL program-related revenue. Competition in the non-viral delivery space is significant, and the emergence of new GMP-grade platforms with comparable performance could pressure pricing and market share. Product development initiatives, both organic and inorganic (like integrating SeQure Dx), carry execution risk. Furthermore, the success of MaxCyte's business is tied to the overall success and funding environment of the cell and gene therapy industry, which can be volatile.

Conclusion

MaxCyte is strategically positioning itself as a comprehensive enabler of the cell and gene therapy revolution. Its proprietary Flow Electroporation technology, validated by the first FDA-approved non-viral cell therapy, provides a differentiated foundation built on performance metrics like high efficiency and cell viability. The SPL business model creates valuable long-term partnerships and provides a pipeline of future revenue potential tied to the success of partner programs. The recent acquisition of SeQure Dx expands MaxCyte's reach into critical gene editing assessment services, broadening its market to include in-vivo therapies and leveraging existing commercial infrastructure.

While navigating a challenging macro environment characterized by cautious customer spending, MaxCyte has demonstrated operational discipline, managing expenses and maintaining a strong balance sheet. The company's 2025 guidance reflects confidence in its core business growth drivers, including increasing PA demand and the contribution from SeQure Dx, even without assuming a significant market recovery. The robust SPL pipeline and the growing number of clinical programs utilizing the platform underscore the long-term growth potential. For investors, MaxCyte represents an opportunity to participate in the growth of the cell and gene therapy market through a technology platform company with a unique business model, expanding service offerings, and a focus on operational efficiency, though the inherent variability of milestone revenue and the competitive landscape warrant careful consideration.