CYRX — Q2 2026 Financial Report Analysis

Cryoport ships and stores living medical material (cell and gene therapies, clinical-trial samples) at ultra-cold temperatures, and through its MVE unit makes the cryogenic freezers and dewars used to do it. In the second quarter of 2026 (April to June) revenue rose 7.7% to $49.0 million, led by the services side, and the company hit its first quarter of positive adjusted EBITDA since selling its CRYOPDP courier business to DHL in June 2025. Underneath, the operating loss was slightly larger than a year ago in dollars; the narrower bottom-line loss came mostly from interest earned on its cash pile and smaller currency losses.

At a glance

• Services revenue +14.8% to $28.0 million. The storage and logistics business is growing about twice as fast as the company overall, and it carries the higher margin (49.9%).
• Operating loss of $10.0 million, vs $9.6 million a year ago. Revenue growth was absorbed by higher spending, so the core business is not yet closing its loss in dollar terms.
• $396.7 million of cash and short-term investments, with $186.2 million of convertible notes due December 2026. Repaying them is already in management's plan and would leave roughly $210 million.

The numbers

Results below are for continuing operations unless stated; CRYOPDP is reported as a discontinued operation for both years.

Gross margin is the share of revenue left after the direct cost of delivering the service or building the product; operating margin is what is left after all running costs as well, before interest and tax. Both are taken from the company's statement of operations. First-half revenue was $96.8 million, up 11.9% from $86.5 million.

Where the growth came from

Services. BioLogistics (shipping temperature-sensitive therapies and samples) grew 12.5% and BioStorage/BioServices (holding and handling that material in Cryoport's own facilities) grew 24.8%. The filing ties the clearest growth to approved therapies already on the market: services revenue from supporting commercial cell and gene therapies rose 26.5% to $9.4 million, which management links to more patients being treated in community and outpatient settings. Support for clinical trials brought in $13.4 million, up 12.6%, and the trial count rose to 779, of which 94 are in Phase 3, the last stage before a drug can be submitted for approval. Those Phase 3 trials matter most for the future, because a trial that turns into an approved therapy becomes recurring commercial shipping. Customers filed four approval applications in the quarter, and the company expects 11 more and five possible new approvals over the rest of 2026.

Products. MVE's freezer and dewar sales were flat at $21.0 million, and product gross margin fell 2.7 points to 42.2%. The filing says sales of products to commercial cell and gene therapy customers fell from $1.2 million to zero, and it describes the segment as mainly driven by demand in the Americas. It does not give a specific reason for the margin decline.

Costs. Gross profit rose 6.8% ($1.4 million), but operating expenses rose 5.9% ($1.8 million): SG&A (selling, general and administrative costs) was up $1.1 million, driven by stock-based pay, facility overhead and wages, and engineering and development was up 17.8%, including product work at MVE and the rollout of generative AI tools. More of each new dollar of revenue is still being spent than kept.

What the headline numbers hide

• Most of the improvement is below the operating line. The loss from continuing operations narrowed by $3.8 million. Of that, $1.7 million came from higher investment income on the cash raised by selling CRYOPDP, and $2.6 million from lower "other expense", which the filing attributes to $1.3 million more in unrealized gains on investments and $1.3 million less in foreign-currency losses. The operating loss itself was $0.4 million worse. Investment income will shrink once about $186 million of cash goes to repay the notes in December.
• The positive adjusted EBITDA depends on a new add-back. Adjusted EBITDA is the company's own measure: the loss before interest, tax, depreciation and amortization, and before stock-based pay ($2.4 million), investment income, currency and investment-value swings and certain other items. This quarter's $0.4 million includes a new $1.1 million line labelled "Other adjustments" that did not exist a year earlier and is not explained in the reconciliation. Without it, adjusted EBITDA would have been about -$0.8 million. The milestone is real by the company's definition, but it is narrow.
• Cash conversion: the business generated cash from operations but not after investment. First-half operating cash flow was +$4.9 million (vs -$11.7 million a year earlier), but capital spending on facilities, shippers and freezers was $19.1 million, plus $0.4 million of software. That leaves free cash flow, the cash left after investment, at about -$14.6 million for the half. Cash and short-term investments fell from $411.2 million at December 31 to $396.7 million.
• EPS carries a preferred dividend. The -$0.20 per share includes a $2.0 million "paid-in-kind" dividend on the Series C preferred stock held by Blackstone, paid in extra shares rather than cash, worth about $0.04 per share. The loss from continuing operations alone works out to about -$0.16 per share. There were no buybacks this half, so the share count did not flatter the figure.
• Currency helped a little. International revenue (19% of the total) got $1.1 million in first-half revenue from exchange-rate moves, roughly a tenth of the $10.3 million first-half increase.
• Working capital is clean. Receivables grew 9.3% since December, in line with 11.9% first-half revenue growth, and inventory fell 7.3%.

Takeaway: The services business is growing at double digits and with expanding margin, but Cryoport's dollar operating loss did not shrink this quarter; the narrower loss and the first positive adjusted EBITDA rely on interest income, smaller currency losses and a new, unexplained $1.1 million add-back. The test is whether the operating line improves once the December note repayment removes much of the interest income.

Outlook

In its first-quarter release management raised full-year 2026 revenue guidance to $192–196 million, from $190–194 million set in March. The second-quarter release doesn't repeat the range or say it changed. With $96.8 million booked in the first half, that range requires $95.2–99.2 million in the second half, 6% to 11% above the $89.7 million of second-half 2025 (full-year 2025 revenue was $176.2 million). That is in line with first-half growth, not a stretch.

Two timing points to watch. The BioServices launch at the Paris Global Supply Chain Center, described as planned for the third quarter in the Q1 release, is now expected in the fourth quarter; the new Santa Ana, California center is still due in Q4. Both add cost before they add revenue. Separately, the 10-Q says management expects to keep making operating losses in the near term and plans to repay the $186.2 million of 2026 convertible notes at maturity in December 2026 from cash on hand.

Our read: services growth in the mid-teens and a rising Phase 3 trial count support the revenue guidance. Profitability is the open question. The product segment is flat with a falling margin, opex is growing about as fast as gross profit, and two new facilities open in Q4. That points to adjusted EBITDA staying close to break-even through the rest of 2026, not a clear move into profit. In the third-quarter report, watch three things: whether the loss from operations, not just adjusted EBITDA, starts to narrow; whether product revenue returns to growth; and what the "other adjustments" line covers.

Source: Cryoport Form 10-Q for the quarter ended June 30, 2026, filed August 6, 2026, together with the company's Q2 2026 earnings release (Exhibit 99.1 to its August 6, 2026 Form 8-K). Guidance history is from the Q1 2026 and Q4 2025 earnings releases.