Codexis Reports 56% Revenue Decline in Q1 2025, Increases Loss from Operations

Codexis, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues falling to $7.5 million, a decrease of 56% compared to $17.1 million in the same period of 2024. The drop was primarily driven by a 37% reduction in product revenue, which amounted to $6.1 million, and an 80% decrease in research and development revenue, which totaled $1.5 million. The company attributed the decline in research revenue to lower earnings from a licensing agreement with Roche Sequencing Solutions and reduced revenue from legacy collaborations.

Despite the decrease in revenue, Codexis managed to reduce its cost of product revenue by 44% to $2.7 million, contributing to a product gross margin increase to 55% from 49% year-over-year. However, total operating expenses remained relatively stable at $28.0 million, leading to a loss from operations of $20.5 million, which is a 72% increase from the $11.9 million loss reported in the prior year. The net loss for the quarter was $20.7 million, or $0.25 per share, compared to a net loss of $11.5 million, or $0.16 per share, in the first quarter of 2024.

In terms of strategic developments, Codexis has focused on its core business areas, particularly in pharma biocatalysis and the ECO Synthesis manufacturing platform for RNA interference therapeutics. The company has discontinued investment in certain development programs and divested non-core assets to streamline operations. Additionally, Codexis announced the appointment of two new members to its Board of Directors, enhancing its governance structure.

Operationally, the company reported a decrease in cash and cash equivalents to $18.3 million as of March 31, 2025, down from $19.3 million at the end of 2024. The company also has $41.5 million in short-term investments. Codexis continues to rely on a limited number of key customers, with significant revenue contributions from a few clients, which poses risks to revenue stability. The company is actively managing its cash usage and exploring additional capital sources to support ongoing operations and future growth.

Looking ahead, Codexis anticipates challenges in achieving profitability due to the ongoing volatility in customer orders and the competitive landscape in the biopharmaceutical industry. The company is focused on enhancing its product offerings and expanding its market presence, particularly in the RNA therapeutics space, while navigating the complexities of regulatory requirements and market conditions.