Good afternoon, everyone. Thank you for participating in today's conference call.

Joining me on the call for MaxCyte, we have Maher Masoud, President and Chief Executive Officer, Parmeet Ahuja, Chief Financial Officer, and Sean Menarguez, Senior Director of Business Development. Earlier today, MaxCyte released financial results for the first quarter ended March 31st, 2026.

Copy of the press release is available on the company's website. Before we begin, I need to read the following statement.

Statements or comments made during this call may be forward-looking statements within the meaning of federal securities laws. Any statement contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements.

Actual results may differ materially from those expressed or implied in any forward-looking statements due to a variety of factors which are discussed in detail in our SEC filings. Except as required by applicable law, the company has no obligation to publicly update any forward-looking statements, whether because of new information, future events, or otherwise.

With that, I will turn the call over to Maher.

Thank you, Eric. Good afternoon, everyone, and thank you for joining MaxCyte's first quarter 2026 earnings call.

I'd like to start by providing a brief overview of our financial performance in the first quarter. MaxCyte reported $9.7 million of total revenue, including $6.2 million of core revenue, and $3.4 million of SPL program-related revenue, which consists of milestones and royalties.

These revenue results met our expectations. As discussed on last quarter's call, the first half of 2026 is a difficult year-over-year comparison given two factors: discontinued SPL programs, which resulted in GTx clinical leases that did not renew, and inventory management by our largest customer.

Elevated SPL program turnover was generally a part of a broader rationalization in ex vivo cell and gene therapy, which has largely normalized as we exited 2025, with SPL partners increasingly focused on their lead programs. While the cell and gene therapy ecosystem remains challenged for earlier-stage clinical programs, the environment is not worsening from what was a challenging funding backdrop in 2025.

Within the ex vivo market, the number of companies financed remains stable, and we continue to see pockets of capital directed towards high-quality, later-stage programs, including by Lyell, Allogene, and Vittoria, building on activity from Beam, Adicet, Wugen, and Enocian last year. Against this backdrop, we are placing instruments across all stages of the development lifecycle, and increasing our pipeline of future SPL partners.

Given our qualified instrument funnel, easier comps, and contribution from our new DTx product, we expect core revenue growth in the second half of 2026. MaxCyte reported $3.4 million from SPL milestones and royalties in the first quarter of 2026.

This included $3 million of milestones driven by a clinical customer who began dosing patients in a registrational study in the first quarter. We are encouraged by the progress of this program, as well as the four additional programs that are expected to enter registrational trials in the next 18 months.

We also recognized $0.4 million in royalty revenue during the first quarter. Vertex reported approximately $43 million in CASGEVY revenue for the first quarter of 2026.

On their earnings call, Vertex noted that more than 500 patients have initiated the CASGEVY treatment journey, with hundreds globally having completed cell collection, highlighting strong patient flow across the US, Europe, and the Middle East. Patients continue to advance from referral, to cell collection, and ultimately infusion, reinforcing the therapy's multibillion-dollar commercial potential.

Vertex also highlighted recent regulatory progress, including the submission of a supplemental BLA for CASGEVY in patients aged 5 to 11 with sickle cell disease or beta thalassemia. This filing has been granted a Commissioner's National Priority Voucher by the FDA, underscoring the significance of expanding access to younger patient populations.

Overall, we remain encouraged by the continued growth in patient cell collections and infusions as Vertex scales CASGEVY commercially, with Vertex noting secured reimbursements, continued ATC network expansion, and a growing number of patients progressing through each stage of the treatment journey. We remain confident in CASGEVY's long-term trajectory and transformative potential for patients around the globe.

Following these first quarter results, we are reiterating our core revenue and SPL milestone and royalty revenue guidance for the full year 2026, which Parmeet will elaborate on. Turning to our SPL portfolio, we updated slide 3 in the SPL deck on the IR website, which now reflects 29 SPL partners.

We did not see any changes in the number of SPL partners or the number of clinical programs supported since our last update in March. However, we did remove Cabaletta Bio and Walking Fish Therapeutics from our list of SPL partners, as both companies previously ceased operations.

Among these 29 SPL partners, 30 programs are both in clinical and preclinical development, supporting diversified revenue streams across the medium and long term. Of these, there are five clinical programs with the potential for commercial launches in 2027 and 2028, including four that could begin registrational studies over the next 18 months, and one that dosed patients in a registrational study in the first quarter.

These five include zegocel from CRISPR Therapeutics for B-cell malignancies, WU-CART-007 from Wugen for hematologic malignancies, azer-cel from Imugene for hematologic malignancies, and two programs from undisclosed SPL partners. Across our 12 SPL programs currently in the clinic, the total future precommercial milestone opportunity is approximately $100 million.

While any individual program carries clinical commercial risk, the multiple shots on goal we have across the same indications and across many different indications gives us a high probability of generating meaningful core revenue, regulatory milestones, and commercial royalties over time. Speaking of MaxCyte's leadership in the gene editing field, the first CRISPR/Cas9-approved therapy was on the MaxCyte platform, and we believe the first base editing and prime editing approved therapies will be on the MaxCyte platform as well.

On the product side, the commercial launch of Expert DTx is progressing well. Early traction has been encouraging, with adoption in discovery and early optimization workflows across ex vivo and in vivo CGT, as well as protein screening for biologics development.

We are seeing initial pipeline build with leading academic centers, biotech, and large pharma. The DTx is fully compatible with the rest of our Expert platform, so as customers adopt the instrument in discovery, they will have a seamless path to scale up on our STx and GTx instruments, pre-cGMP manufacturing, and ultimately, into an SPL agreement.

We expect DTx adoption to build through the balance of 2026, with increased adoption in the second half of the year and into next year. Moving to Secur, we are seeing steady progress as we build out the commercial engine of the business.

We added new assay service agreements during the first quarter, with customer engagement across both ex vivo and in vivo developers, including several programs approaching IND-enabling stages where off-target characterization is most critical. We continue to believe that Secur assays will become part of the industry standard for off-target risk assessment in gene editing, and early 2026 customer feedback has reinforced that.

In mid-April, the FDA's Center for Biologics Evaluation and Research, or CBER, issued a draft guidance titled "Safety Assessment of Genome Editing in Human Gene Therapy Products Using Next-Generation Sequencing." The guidance focused specifically on the use of next-generation sequencing-based methods to evaluate off-target editing risks, and provides ex vivo and in vivo developers with recommendations on sequencing strategies, sample selection, analysis parameters, and reporting, all of which are intended to support non-clinical data packages submitted with IND and BLA applications.

We view this as a structural positive for Secur, as sponsors are now expected to quantify editing outcomes with high sensitivity and utilize multiple complementary approaches. The guidance makes it clear that understanding editing outcomes is foundational to development.

Overall, we believe the investments we are making across portfolio, such as the DTx and Secur, have substantial commercial potential over time and are diversifying MaxCyte's revenue streams. To close, we entered 2026 with a fundamentally different spending profile than in prior years.

The full benefit of the 2025 restructuring and cost efficiency actions is now flowing through our P&L, and the year-over-year reduction in operating expenses is clearly visible in our results. We do not expect meaningful growth in operating expenses from here, and we see a clear path reducing cash burn further as revenue growth returns.

Before wrapping up, today we announced the board's authorization of a $10 million share repurchase program. The decision to authorize a share repurchase underscores the board and management's confidence in MaxCyte's long-term value, strategic investments, and the business prospects, as well as the strength of our balance sheet.

I want to take a step back and highlight the reason for this repurchase program at this time. Over the last two years, we have taken steps to dramatically strengthen our financial position, acquired and built new products, and are now supporting multiple clinical programs that could be approved in the next 18 to 24 months.

We have never been better positioned to grow with our end market. While we continue to invest in the execution of our business and expand our product portfolio, such execution will always be done with financial and commercial discipline.

As such, we believe our shares represent a compelling investment opportunity, and we intend to execute the majority of our share repurchase program before the year end. I will now turn the call over to Parmeet, who joins us today for his first earnings call as MaxCyte's Chief Financial Officer.

Parmeet?

Thank you, Maher. I'm pleased to be joining you today for my first earnings call as MaxCyte's Chief Financial Officer.

Total revenue in the first quarter of 2026 was $9.7 million compared to $10.4 million in the first quarter of 2025, representing a 7% decrease. The decrease in total revenue was driven by a decline in core revenue, partially offset by growth in SPL program-related revenue.

We reported core revenue of $6.2 million compared to $8.2 million in the comparable prior-year quarter, representing a 25% decrease. Within core revenue, instrument revenue was $1.3 million compared to $1.4 million in the first quarter of 2025, license revenue was $2.1 million compared to $2.5 million, and processing assembly, or PA, revenue was $2.8 million compared to $4.3 million.

As we expected in our guidance, core revenue was adversely impacted by inventory management at our largest SPL customer, as well as discontinued SPL programs. For the first quarter, 44% of core revenue was generated from SPL partners compared to 57% in the first quarter of 2025, which is reflective of the headwinds we experienced in the quarter related to SPL core revenue.

As Maher discussed, we are positive on the momentum and continued growth we are seeing in Secur, with total revenue of $0.6 million in the first quarter, which includes both license and services revenue. SPL program-related revenue in the first quarter was $3.4 million, including a regulatory milestone tied to a clinical customer that began dosing patients in a registrational study during the quarter, which Maher referenced.

This compares to $2.1 million of SPL program-related revenue in the first quarter of 2025. Moving down the P&L, gross margin was 84% in the first quarter of 2026 compared to 86% in the first quarter of 2025.

Excluding inventory provisions and SPL program-related revenue, non-GAAP adjusted gross margin was 78% in the first quarter of 2026 compared to non-GAAP adjusted gross margin of 83% in the first quarter of 2025. Total operating expenses for the first quarter of 2026 were $14.3 million compared to $21.2 million in the first quarter of 2025, a decrease of approximately $7 million.

This reduction reflects the restructuring and cost efficiency actions we took in 2025, which are now being realized across the P&L. We are entering 2026 with a fundamentally different cost structure than in prior years, and we do not expect to meaningfully grow operating expenses from this level.

We ended the first quarter with combined total cash, cash equivalents, and investments of $147.7 million and no debt. Our strong balance sheet positions us well moving forward, providing flexibility to continue to invest strategically for our business, our customers, and our shareholders.

Today, we disclosed that MaxCyte's Board of Directors has authorized a share repurchase program of up to $10 million. Under the program, the company may repurchase shares through open market purchases, privately negotiated transactions, block trades, or other means, subject to applicable securities laws.

Continuing to our 2026 guidance, we are reiterating our 2026 outlook and expect total revenue to be in the range of $30 to $32 million, consisting of $25 to $27 million of core revenue, and $5 million of SPL milestones and royalties. As Maher highlighted on last quarter's call, we expect core revenue, which excludes milestones and royalties, to be weighted towards the second half of the year.

For the second quarter, we expect core revenue to be approximately in line with the first quarter, reflecting the mix and timing of the business. In our guidance related to SPL milestones and royalties, we indicated that we expect $3 million of revenue from milestones, and $2 million of royalty revenues.

Given $3 million milestone revenue in Q1, we are not forecasting any additional milestones in 2026, and the balance of the guidance is from commercial royalties. Lastly, we continue to anticipate to end 2026 with at least $136 million in cash, cash equivalents, and investments, excluding capital deployed towards our repurchase program.

Now, I'll turn the call back over to Maher.

Thank you, Parmeet. I'd like to thank everyone at MaxCyte for their dedication to our mission and execution in the first quarter, and I look forward to updating you all on our next quarter call.

With that, I will turn the call back over to the operator for the Q&A. Operator?

Hi, thank you very much, and congratulations on a much stronger quarter than expected. Couple of questions.

I suppose firstly on the SPL revenue guidance. Clearly, you're not looking for any more milestones, or you're not guiding to any more milestones for the remainder of the year.

Given the number of active programs that are ongoing plus where your sort of later-stage programs are, it feels unlikely that you're going to get no milestones at all in Q2 to 4. Are you just being particularly cautious with this at this time frame, and maybe changing your risking of how milestones come in?

Good questions, Julie. Good to hear from you, as always.

On that question, let me take this one, and then if Parmeet wants to add anything, or Sean as well, who is here with us as Head of Business Development. That's more an indication of the way that agreements are structured, the way milestones are contractually structured, is that it's based on dosing timing in pivotal trials, not necessarily on the initiation of a pivotal trial.

While it's possible we could get another milestone here, the way these agreements are structured, there's a good chance it's more in the first part of next year. It all depends on the dosing regimen for the trial itself, not necessarily initiation of a pivotal or registrational trial.

Does that make sense, Julie?

That does indeed. Thank you.

Yes. Then just on the license, the sort of cadence of that during the year, because again, I think obviously down on where it was last year, but probably, I'm trying to get a feel for whether you're expecting sort of license fees to remain fairly similar through the year, or because of where your SPLs are and the potential of signing new SPLs, whether a fairly flat sort of look for the year is, again, being quite conservative here with your expectations.

Because you're implying your pipeline is still quite strong for SPLs, what we should be thinking about in terms of cadence of license fees?

Absolutely. This is in terms of cadence of new licensees, right, new partners, Julie, just to

clarify?

Obviously, as I mentioned last time, we feel comfortable guiding three to five. Some years will have maybe more than five, some years it could be less than five.

If I take a step back, in the past few years, we've signed 15 SPL partners. We still feel very good we'll sign at least three this year, as well.

Obviously, they haven't happened just yet, but that's just the nature of the negotiations and the work with these customers who then become partners, right? Oftentimes, working with them 18 months, sometimes 24 months before they actually sign an agreement.

We currently are working with those in the funnel and the pipeline, as you would call it. We feel good that we're going to sign at least three this year.

It just the cadence of when the negotiations, when the work is happening, when the process dev work is happening with them. They still are not there yet where they haven't signed in the first half so far.

I feel good about at least three this year, Julie.

Lovely. Thank you.

Absolutely. Thank you, Julie.

Great. Thanks for taking the questions, guys.

I wanted to actually follow up a little bit more on any incremental color on SecurDx as it stands, I guess based on any initial feedback to date, how much contribution to that revenue growth over the next say kind of 12 to 24 months are you expecting to come from that? Then just as a follow-up, sorry if I missed it, but I know you mentioned that for the buybacks, most of it will kind of come through in calendar '26.

I guess anything to call out in the cadence between Q2 to Q4, fairly steady between those three quarters, or just any considerations there for our models? Thanks, guys.

On the cadence of the buyback, Parmeet, did you want to take that one?

Why don't I take that? Good to hear from you, Brendan.

Really pleased with the authorization from the board. We certainly believe and are aligned with the board there's a disconnect on value and believe buying our shares provides a very compelling investment opportunity.

As we said in the prepared remarks, we're looking to move fairly quickly on this, looking to execute a majority of the share repo program by year-end. Working with an external advisor to put us in the best position to succeed here.

It's going to include a mix of open market purchases and systematic. Pleased to get this authorization from the board.

Yeah. On the first question, I think you talked about contribution of Secur if I remember the question correctly, Brendan?

Yep.

Yeah. Let me give you a little clarity there.

Yes. Absolutely.

Obviously, Parmeet alluded to it earlier, revenues for Secur were $0.6 million in the first quarter, and we're very pleased with that. Look at where we expect it to grow.

It's substantial year-over-year growth compared to 20 2025. The 0.6 sequentially was up about 11% from Q4 of '25.

It's three times what it was in Q1 of last year as well. We've spent the late part of last year and throughout the year and the first part of this year building up the commercial pipeline, working with customers to grow the pipeline as well.

We're starting to see that now in the first quarter. We're hopeful that progresses throughout the year as well, and this continues throughout the year.

The draft FDA guidance that came out very recently that I alluded to earlier is exactly why we acquired Secur and why we believe it's that gold star for cell and gene therapy developers, whether you're doing ex vivo or in vivo development, you really need to characterize your off-target gene editing with these assays. Even you have to characterize the on-target effects of your gene editing as well.

We feel good where it is. It took us some time to integrate them throughout last year, and we're seeing some of the traction now in this first quarter, and we're hopeful it continues throughout the year.

Hi, guys. Thanks for the questions.

Maher, can you just maybe talk about the backdrop at the industry level, but then also pair that with your own sales funnel? I think your comment was that you don't expect things to get worse this year, which that's good.

Do you think new business and new activity can accelerate for you guys, just given what you're seeing out there? Thanks.

Sure. Absolutely, Dan.

Good to hear from you. I'll take that.

Obviously, we saw elevated SPL program turnover last year from rationalization. It hurt us hard last year, especially in the first half.

That turnover in 2025, 2025, we think has largely normalized. In fact, many SPL partners are increasingly prioritizing and concentrating on those lead clinical programs, and we're seeing that as well.

While financing for earlier-stage cell therapy is still challenging, that's seen across the industry, especially ex vivo as well, what we're seeing more, I would say, non-deterioration or stability in what we consider that late-stage or later-stage clinical programs. That we're seeing.

In fact, you look at right now, we have I think 11 SPL partners with 12 clinical programs. These are all the lead assets.

You see where it is from a financing perspective, you're seeing companies like Lyell, like Allogene, and Vittoria, and others, it's still garnering investor interest and investor demand and raising the funds they need for those later-stage assets. Long story short, early-stage companies, I think it's still a tough backdrop there, but for later-stage clinical programs, the financing is there, and we're working with many more of those companies.

In fact, we work with more later-stage companies now than ever before. It's a challenging backdrop, but at the same time, pockets of green shoots for later-stage programs.

Helpful. Then, Parmeet, I know you're still getting settled there, but it would be good to get your first blush perspective just on what you think exists as having the most room for increased forecasting clarity, and then whatever you see as the priorities going forward when it comes to just sort of quarterly cadence and visibility on the business.

Thanks a ton.

Dan, great to hear from you. Being here just about six weeks, and I have to say the team has been super supportive as I've transitioned into this role.

Clearly, MaxCyte has a market-leading product with great service leadership and field application scientists. Certainly, last few weeks, I've been reviewing the company's forecasting methodology, spending quite a bit of time with our commercial team, the leaders, looking at the funnel, and believe the company provided a prudent outlook for 2026.

To your point, of course, we will continue to evolve the financial analytics, forecasting of our business. For me particularly, for the team, the finance team, providing support for our commercial and product development initiatives is going to be a priority, while certainly maintaining the disciplined cost structure that I have to give credit to Maher and team that have established with the tough changes that were made last year.

Good afternoon, and thanks for taking the questions. Maybe just to go back to the Secur ramp.

Obviously, Maher, you noted some nice growth both sequentially and year-over-year. Should we anticipate that kind of growth continuing for the remainder of this year, or do you anticipate maybe a little bit of a pause as you kind of digest the customers that you're working with already, and then another step up maybe in the second half of this year into next year?

Great question, Matt. I would say the growth that we're expecting is year-over-year, significant growth year-over-year.

In terms of the cadence of that versus Q2 versus second half, I'd say I want to be a bit patient here, and see how that transpires throughout the year. Overall, in terms of it's a services business, it's not a CapEx business.

When we deliver these services a bit different timing-wise than it is for the MaxCyte electroporation business. I'd say as a whole, overall, we feel very good about significant growth year-over-year.

The cadence of it, I think we want to see how it transpires throughout the year before we get ahead of ourselves, Matt.

Understood. Then as far as the gross margins are concerned, a little bit of a step back.

Obviously, you've had some inventory adjustments happening. Do you expect that to kind of recover as the year progresses as well, especially given your anticipated ramp in revenues?

Thank you.

I think one of the challenges certainly with gross margins this quarter was the challenges with our SPL customer that we have talked about certainly played a part here, had an impact. As we look through the year, Matt, we expect gross margins to kind of trend in the mid-70s from here on.

Certainly, the first quarter was certainly benefited from that milestone payment, which flows right to the bottom line. Looking ahead, mid-70s is the way to think about it.

Good afternoon. I wanted to follow up, Maher, on your comment on DTx.

When you announced that launch last quarter, you'd had some good early traction, I think some sales in the first quarter. You had some nice comments on it today here as well.

Just curious sort of what reasonable expectations are over the next 12 to 18 months, and what the mix of the funnel looks like if it's getting you into new customers or there's a lot of existing customers. I think last call you referenced interest, sort of globally, both in the US and in APAC.

Just a little bit more color on how that launch is going would be great.

Great question, Matt. Let me take that one.

Let me give you a bit on the color of where maybe the interest that we're getting and what we're seeing. Obviously, it's meeting our expectations to what we thought we could do, right, in the cell therapy space.

We can get in there. We can work with customers in ex vivo and in vivo while they're doing their screening for cell therapy development, and we're seeing that, right?

The funnel itself is building very well. We still anticipate that the sales will begin to increase in the second half of the year.

That's the norm for any launch. You have to build up the campaign behind it.

You have to get into the customers, and you begin to see the traction there. The pipeline is becoming very healthy.

What we're also seeing is traction in areas, for example, in academic accounts that we never really had before that we can get into with the DTx system. We're also seeing it in protein screening for biologics, and we're seeing that for big pharma, as well.

We're having some of the funnel in the pipeline we're seeing that will gain traction with big pharma that we never had before. That's not necessarily a surprise for us.

We realized that what we were building, it can allow us to really get into the protein screening market as well for biologics. This pleasant surprise has been the early traction from heavy of customer interest from big pharma as well, which I think bodes well for the future of DTx.

Again, to temper, let's see how the rest of the year plays out in terms of DTx sales and revenues from it, but we expect significant growth going into second half and into '27 and beyond.

Okay. Then, I guess, just a bit of a higher-level one.

The SPL portfolio has evolved quite a bit in MaxCyte's time as a public company in terms of across disease categories. Solid tumors now a big part of the preclinical pipeline.

You referenced in your SPL deck a few partners leaving the ex vivo space, but also referenced confidence in hitting three more this year, there's the sort of natural ebb and flow. Maher, I guess we're just curious for sort of your state of the union both from what you're seeing from an SPL interest perspective, but also what your team is observing in terms of clinical development, and sort of how that translates to continued confidence in the platform and future growth for SPL partners.

No, great question, Matt. Part of the reason why we have confidence in the current partners and the programs they have, and then also the future SPLs that we're signing is while we had rationalization last year that hurt us, what we're seeing now is these later-stage clinical programs progressing through the clinic, and we're seeing that.

The one milestone we've received this year from one of our partners was for a clinical program that has good results. It's confidential, we can't disclose it, but so far we're seeing what they published with good results for their current clinical program, and we're seeing that with some of the other ones here.

If you look at our deck, you have Wugen with their WU-CART-007 progressing very nicely, you have CRISPR, you have Imugene, and you're seeing that these are companies that are going to pivotal and registrational studies, and it speaks to what I was speaking to earlier, which is interest in later-stage programs is still there even from a financing perspective because the science is there, and you've seen the progress there. These are some of which are autologous and allogeneic programs.

We're also seeing interest still in allogeneic programs because it reduces, I'd say, the patient journey in terms of patient administration, and we're still seeing that. Even across our SPL funnel and the pipeline that we're building for future SPLs, we're still seeing that research there for those lead assets still going about, still being funded.

Obviously, is it what it was in 2021, '22? No, I'd say it's even healthier in a sense where even though you might have less of a pipeline build of these SPLs, but the ones that are going and becoming SPLs, they're working on their lead assets, and that's who we want to work with, and that's what we're seeing now.

That's why we still feel confident we can sign at least three this year, for the foreseeable future as well, we can keep signing three to five. Nothing has really changed other than the fact we're seeing the science itself mature, to speak.

Hope that kind of answers your question, Matt.

Hey, guys. Thank you for taking the questions.

The first one is for Parmeet. It looks like the G&A expense came in $4 million down sequentially and over $2 million below our forecast, which looks like some pretty good cost discipline and management.

Is that $6 million or so a reasonable run rate for G&A going forward? Can you just speak to any changes in headcount?

Obviously, there was some impacts, cost containment matters that were done last year, but how are you thinking about spending this year and flowing throughout the rest of the year?

Good to hear from you, Mark. Certainly, I'd speak to sort of broadly OpEx.

The reduction in OpEx, G&A being part of that, is starting to materialize, right? You're seeing that in our P&L.

The tough decisions that were made last year are now being reflected fully in our P&L. Looking at where we ended up with OpEx in Q1, I think it's a fair run rate outside of, I would say, low single-digit sequential growth in the coming quarters that we expect for investments in things like commercial expansion in APAC that we're looking at, some additional DTx launch activities.

Kind of that's how I would look at it. Keeping this in mind, I would say for the year, we expect OpEx to be around $60 million.

Back to your point, just for context, this is still a significant reduction over where we were last year. Last year, OpEx was around $79, $80 million.

Speaks to the body of work, the tough work that the team has done.

That's really helpful. Thank you for all the clarity there.

Back to the DTx, Maher, you did make some positive comments about the beta launch. As we think about this rolling into the second half of the year, should we expect to see some revenue pull-through in the form of capital purchases or leases of the system, or what I'm really trying to get at is, are some of these just sort of placed just to see how things are going, and then there may or may not be revenue in the back?

I'm just trying to figure out how much we should expect in the back half this year.

It's tough question there in the sense of we're not guiding as to what it's going to be in the second half of the year for this one here. Just to make clear, Mark, we don't lease these.

This is a pure sales, pure CapEx sale here. We're seeing the help of the build out in the funnel so far.

We see meaningful contribution in the second half, even more meaningful going to 2027. As we keep learning from the launch itself, will give us even more of an initiative what Parmeet alluded to, us being able to even spend a little bit more on the marketing of the DTx and of the commercial launch of DTx.

Where I stand right now, I feel very good what happened in Q1 in terms of initial sales there, what's happening here in Q2. I think it can help us continue to seed the future SPLs as well, because we can get in earlier with customers, and then it can also get us into that bioprocessing, protein screening market.

That can really start to contribute to revenue in the '27, '28, and so forth time period, and gives a chance also learn that market more, and see what other products we can also launch into that other market in the bioprocessing market as well. That's kind of how I'm looking at DTx.

I feel very good where it is, but there's still a lot of learnings. There's still a lot of commercial execution we have to focus on to make that second half have meaningful contribution.

Hey, good afternoon. Thanks for taking the questions.

Just following up one more on DTx. You mentioned that there's still kind of a learning curve here.

How much visibility do you have into the 2H pickup, and is that included in guidance or anything there, would that be kind of upside?

Let me take that, and I can hand over to Parmeet as well. That's included in the guidance, right?

This was what I said earlier on our previous call. This is part of our guidance where we see that second half pickup helping us in terms of where we guided for the year in terms of the core revenue.

Again, I'm taking a careful look at this because when I say learnings, we launched this knowing exactly what we're going to launch into, but now it's about commercial execution. We get ahead of ourselves, let's just make sure that we can execute exactly what we launched, where we knew we're going to get into the cell therapy space earlier in the research process, earlier in discovery, and really begin to have those learnings even in the bioprocessing space as well.

It's part of the guidance that we gave for the year, and as we get further traction, we'll obviously update on future calls as well. Until that time, we're taking a wait-and-see approach.

):

Thanks. That's helpful.

Then after the recent portfolio pruning that you've seen, now that that's kind of played out, could you just talk about what the landscape looks like now? Do you think the customers you're serving are kind of more geared to certain modalities or cell types or indications?

Is there just anything you'd call out there?

I'm going to turn this one to Sean, Business Development. Sean, have we seen any trends that you believe in terms of where we're going in terms of clinical programs from the SPL funnel that we're looking at?

Thanks, Hannah. Good to hear from you.

From an autologous allogeneic standpoint, still remains around a 50/50 split across different variety of cell types. Obviously, the market is predominantly T cells, which is reflected in the portfolio.

We are seeing the advancement of allogeneic CAR T. Wugen now is in a potential registrational trial, which could be the first allogeneic CAR T approved.

We're also seeing different novel gene editing platforms continue to advance with the FDA support. That's the overall kind of state of the union for the SPL portfolio.

Thank you, everyone, for joining us today. I want to thank all of our employees as well, and our shareholders.

Look forward to speaking to everyone again on our next earnings call in a few months.