Enzo Biochem Reports Decline in Revenue and Increased Operating Loss for Third Quarter

Enzo Biochem, Inc. reported a decline in financial performance for the third quarter and nine months ended April 30, 2025, as detailed in its latest 10-Q filing. The company generated revenues of $6.4 million for the three months, down 20% from $8.0 million in the same period last year. For the nine-month period, revenues decreased by 18% to $19.9 million from $24.4 million. The decrease in revenue was attributed to ongoing challenges in the life sciences tools sector, including reduced government grants and R&D budgets, as well as uncertainties related to tariffs and the timing of large orders.

Operating costs and expenses for the third quarter were $9.8 million, a slight decrease from $10.1 million in the prior year, while the nine-month total was $28.6 million, down from $34.1 million. The company reported an operating loss of $3.4 million for the third quarter, compared to a loss of $2.0 million in the same quarter of the previous year. The net loss for the third quarter was $2.8 million, or $0.05 per share, compared to a loss of $3.0 million, or $0.06 per share, in the prior year. The nine-month net loss improved to $7.7 million from $12.7 million year-over-year.

In terms of strategic developments, Enzo Biochem completed the sale of its clinical services business to Labcorp in July 2023 for $113.25 million, which has since been classified as discontinued operations. The company has also initiated a strategic review process to explore various options for maximizing shareholder value, including potential transactions or a full sale of the company. This review is being conducted by a special committee of independent directors, with the assistance of BroadOak Capital Partners.

Operationally, Enzo Biochem's cash and cash equivalents decreased to $36.7 million as of April 30, 2025, down from $52.4 million at the end of the previous fiscal year. The company reported a working capital of $31.3 million, down from $45.2 million. The decrease in cash was primarily due to net losses, payments on accrued liabilities, and a dividend payment of $5.3 million. The company’s accounts receivable increased to $4.3 million from $4.0 million, indicating a slight improvement in collections.

Looking ahead, Enzo Biochem's management believes it has sufficient funds to meet its operating requirements for at least the next twelve months. However, the company remains cautious about the ongoing challenges in the life sciences sector and the potential impacts of its strategic review process. The company has not provided specific guidance on future revenues or profitability, emphasizing the uncertainties in the current market environment.