Evogene's Q2 Earnings Show Revenue Growth Amidst Losses

Evogene Ltd. reported Q2 earnings with improved revenue of $3.227 million, up from $2.294 million in the same period last year. Despite this growth, the company experienced a net loss of $7.671 million, narrowing from a $9.830 million loss in the first half of 2024. Total assets decreased to $33.926 million, while total liabilities reduced to $21.551 million. The company's focus on leveraging its computational predictive biology platform for innovation and growth remains unchanged.

Evogene Ltd. (EVGN) reported its second-quarter 2025 earnings, highlighting a 43.5% increase in revenue to $3.2 million, up from $2.3 million in the same period last year. Despite the revenue growth, the company experienced a net loss of $7.7 million, narrowing from a $9.8 million loss in the first half of 2024. Total assets decreased to $33.93 million, while total liabilities reduced to $21.55 million [3].

The company's focus on leveraging its computational predictive biology platform for innovation and growth remains unchanged. Evogene's strategic asset sales, including the sale of most of Lavie Bio's activity and the MicroBoost AI platform to ICL, generated cash proceeds of $15.25 million and $3.5 million, respectively. These transactions reflect the company's commitment to maximizing the value of ChemPass AI and enhancing cash flow from subsidiaries [2].

Evogene's earnings call emphasized the importance of cost reductions, with a 30.6% decrease in total operating expenses for the first half of 2025, to approximately $7.7 million from $11.1 million in the previous year. This decrease is mainly attributed to reduced activity levels across subsidiaries, including reduced R&D activities at Biomica and the discontinuation of operations at Canonic [2].

The company's stock showed resilience, with a slight pre-market uptick of 0.75% to $1.35 per share following a previous close at $1.326, despite missing earnings expectations. Evogene's EPS of -$0.85 was below the forecasted -$0.61, indicating a 39.34% negative surprise. Revenue also fell short, at $880,000 against the $1.69 million forecast, marking a 47.93% miss [3].

Evogene projects an operational runway of approximately 18 months, focusing on further investments in its Campus AI platform. The company anticipates new partnerships in pharmaceuticals and agriculture, with Biomica expected to complete clinical trials by early 2026. Guidance revisions suggest continued strategic focus on AI innovations and cost management [3].

References:
[1] https://seekingalpha.com/news/4486643-evogene-q2-2025-earnings-preview
[2] https://www.ainvest.com/news/evogene-q2-2025-unraveling-contradictions-castor-seed-strategy-financial-outlook-2508/
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-evogenes-q2-2025-results-reveal-significant-cost-cuts-93CH-4200276