Co-diagnostics 2025 Q3 Earnings Narrowed Losses with 39.3% Net Income Improvement

Co-diagnostics (NASDAQ:CODX) reported Q3 2025 earnings on November 14, 2025, revealing a 77.3% revenue decline and a 50% improvement in EPS losses. The company narrowed its net loss by 39.3% to $5.89 million, aligning with strategic cost-cutting and operational efficiency efforts.

Revenue

Product revenue accounted for the entirety of Co-diagnostics’ total revenue of $145,380 in 2025 Q3, a sharp decline from $641,141 in the same period last year. This 77.3% drop reflects a shift from prior-year grant revenue to product sales, underscoring the company’s pivot toward commercialization.

Earnings/Net Income

Co-diagnostics reduced its net loss to $5.89 million in Q3 2025, a 39.3% improvement from $9.70 million in 2024 Q3. The EPS loss narrowed to $0.16 from $0.32, representing a 50% reduction. The 50% improvement in EPS indicates progress in reducing losses, though the net loss remains a concern.

Post-Earnings Price Action Review

The strategy of buying Co-Diagnostics (CODX) shares on the date of its revenue raise announcement and holding for 30 days resulted in a significant loss. The 30-day holding period failed to recover from the initial decline, indicating poor short-term performance following earnings releases. Earnings Release Date: The most recent earnings release date for CODX is November 13, 2025. Buy Date: Buying on the earnings release date means starting with the following day, November 14, 2025. Hold for 30 Days: The 30-day period ends December 14, 2025. Closing Price on November 14, 2025: $0.75. Closing Price on December 14, 2025: $0.46. Percentage Change: The stock declined by 38.7% over the 30 days, from $0.75 to $0.46. This backtest shows that investors who followed this strategy would have incurred a substantial loss, highlighting the importance of considering longer-term investment horizons or more sophisticated trading strategies around earnings events.

CEO Commentary

Dwight Egan emphasized the company’s strategic momentum, highlighting the CoMira Diagnostics joint venture in Saudi Arabia and 18 MENA nations as a key growth driver. He noted the AI business unit led by CTO Christopher Thurston, integrating AI into the Primer Ai™ platform, and a proprietary sample preparation instrument for the MTB test. Egan underscored the engagement of Maxim Group to pursue a potential SPAC transaction for CoSara Diagnostics in India, positioning these initiatives as part of a cohesive strategy leveraging financial strength and technological innovation to unlock value and achieve sustainable global growth.

Guidance

The company outlined forward-looking plans to initiate clinical evaluations for its NIH-supported upper-respiratory multiplex test and advance regulatory submissions for the Co-Dx PCR platform. It also expects to pursue a strategic transaction, including a SPAC, for CoSara Diagnostics in India, contingent on market conditions. The CEO reiterated confidence in the CoMira joint venture’s potential to localize molecular diagnostics in the MENA region and unlock value from the India joint venture, though no specific financial targets were provided.

Additional News

Co-diagnostics announced a SPAC initiative with Maxim Group to explore strategic alternatives for its Indian joint venture, Kocera Diagnostics, potentially via a U.S. listing. The company also launched a new AI business unit under CTO Christopher Thurston, aiming to integrate AI into diagnostics and data analytics. Additionally, clinical trials for its NIH-funded upper-respiratory multiplex test are imminent, supported by grants and regulatory pathways in the U.S. and MENA regions. These moves underscore the firm’s focus on global expansion, AI-driven innovation, and capitalizing on high-growth markets.

Stock Advisor returns as of November 10, 2025. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.