Codexis 2025 Q1 Earnings Misses Targets as Net Loss Widens 79.8%

Codexis (CDXS) reported its fiscal 2025 Q1 earnings on May 14th, 2025. The company missed expectations, with a net loss of $0.25 per share, falling short of the Zacks Consensus Estimate by 28.99%. Despite maintaining revenue guidance, Codexis's losses deepened significantly. The company anticipates revenue more heavily weighted towards the latter half of the year, aiming for cash flow positivity by the end of 2026 while retaining a strong cash position.

Revenue
Codexis experienced a sharp decline in total revenue for the first quarter of 2025, registering a 55.8% decrease to $7.54 million compared to the same period last year. This downturn was mainly due to product revenues amounting to $6.06 million and research and development revenues contributing $1.48 million. The significant drop from $17.07 million in 2024 Q1 underscores challenges in maintaining consistent revenue streams.

Earnings/Net Income
Codexis's earnings per share reflected a deepening loss, increasing from $0.16 per share in 2024 Q1 to $0.25 per share in 2025 Q1, a 56.3% wider loss. The net loss for the quarter reached $20.69 million, marking a 79.8% increase from the previous year's $11.51 million loss. The substantial increase in net loss indicates ongoing financial challenges.

Price Action
The stock price of Codexis dropped 4.26% during the latest trading day. Despite this daily decline, the stock has climbed 5.11% month-to-date and saw an 8.33% increase over the most recent full trading week.

Post Earnings Price Action Review
Codexis's strategy of buying its stock when revenue beats and holding for 30 days faltered, as demonstrated by the significant decline in its share price. Since the beginning of the year, CDXS's stock has dropped approximately 46.3%, starkly contrasting the S&P 500's modest gain of 0.1%. The earnings report revealed a loss of $0.25 per share and revenue of $7.54 million, falling short of the Zacks Consensus Estimate by 28.99%. This performance emphasizes the need to consider additional factors, such as market conditions and company fundamentals, when devising investment strategies.

CEO Commentary
Stephen Dilly, President and CEO, noted that Codexis's first-quarter performance aligned with expectations, maintaining a strong financial position with a runway to cash flow positivity by 2026. He emphasized the evolving product mix in Pharma Biocatalysis, which is expected to drive margin improvement. Dilly expressed confidence in a substantial revenue ramp in the second half of the year, focusing on new customer acquisition in the mid-tier pharma segment and the positive impact of external factors on their ecosynthesis platform.

Guidance
Codexis reiterated its 2025 revenue guidance, projecting between $64 million and $68 million, with expectations for revenue to be more heavily weighted towards the latter half of the year. The company anticipates achieving cash flow positivity by the end of 2026, supported by a strong cash position of $59.8 million at the end of Q1 2025.

Additional News
Codexis has made significant strides in expanding its leadership team, appointing Christos Richards and Cynthia Collins to its Board of Directors. Richards brings over 30 years of global executive advisory experience in the biopharmaceutical and healthcare sectors, while Collins offers extensive knowledge of the CDMO landscape, currently serving as Chairman and CEO of Nutcracker Therapeutics. Additionally, Arthur Levin, PhD, has been appointed to the Strategic Advisory Board, bringing three decades of experience in developing oligonucleotides. These appointments align with Codexis’s strategic direction in enzymatic RNA synthesis.