Summary of Codexis (CDXS) Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $14.9 million for Q2 2026, a slight decrease from $15.3 million in Q2 2025.

Gross Margin: 73% for Q2 2026, an improvement from previous quarters, driven by higher sales of profitable products.

Net Loss: $12 million, reduced from a loss of $13.3 million in Q2 2025.

Expenses: R&D expenses decreased to $11.7 million from $13.8 million year-over-year; SG&A expenses also fell to $10.9 million from $12.3 million.

Cash Position: Ended Q2 with $54.9 million; post-financing, pro forma cash balance is approximately $79.8 million, sufficient to fund operations through 2028.

2Strategic Updates and Business Highlights

Codexis is advancing its ECOsynthesis manufacturing platform, which aims to improve the production of siRNA therapeutics.

Construction of a new GMP manufacturing facility is underway, with a budget of approximately $25 million, aimed at supporting IND filings and clinical trials.

The company presented new data at the TIDES U.S. Conference, showcasing advancements in stereochemistry control and a new starterless ECOsynthesis capability.

Codexis has engaged with three CDMOs for technology transfers, with one in advanced negotiations for a long-term commercial contract.

3Forward Guidance and Outlook

2026 Revenue Guidance: Expected to be between $70 million and $76 million, with a heavier weighting towards the second half of the year.

Anticipates continued improvement in gross margins, projected to be in the high 60s for the full year.

Plans to advance to half-kilo scale production of siRNA by year-end and aims for kilo scale before operationalizing the GMP facility.

4Bad News, Challenges, or Points of Concern

Revenue decline year-over-year raises concerns about growth sustainability.

The company faces a competitive landscape with significant demand for siRNA expected to increase 30-fold by 2035, creating potential production bottlenecks.

The biocatalysis business, while stable, could be impacted by the unpredictability of customer orders, which can be lumpy and inconsistent.

The reliance on successful execution of technology transfers and partnerships poses risks if negotiations do not yield expected contracts.

5Notable Q&A Insights

Customer feedback from TIDES U.S. has been positive regarding the new stereochemistry control and starterless technology, leading to advanced discussions with potential partners.

The company is optimistic about the potential for improved therapeutic efficacy and reduced costs through enhanced stereochemical control.

There is a recognition of the need for innovative manufacturing technologies in the RNA medicine space, which Codexis is positioned to address.

Management acknowledged the unpredictability of revenue from new product approvals and the variability in customer manufacturing plans, which could affect revenue modeling. Overall, Codexis is navigating a complex landscape with promising advancements in its technology and strategic partnerships, but faces challenges in maintaining revenue growth and managing competitive pressures in the rapidly evolving biopharmaceutical sector.