Cibus Q2 FY26 earnings call CBUS

New CEO Craig Wichner outlined his mission to generate revenue at scale, leveraging Cibus's 25 years of technology development. He emphasized the company's IP-protected platform for precise seed improvements, which offers speed and efficiency to partners. The strategy focuses on three tiers: generating revenue through platform programs (e.g., sustainable ingredients), earning royalties on planted acres (e.g., rice), and deepening partnerships to become an extension of partners' breeding programs. This framework provides flexibility to match market opportunities and ensures capital discipline.

Cibus's platform is iterative and scalable, allowing knowledge and tools to carry from one program to the next, reducing costs over time^⏳. This scalability enables nimbleness in assessing market needs and creates value across diverse applications. The same core capability used for herbicide tolerance in rice is also creating commercial value in the consumer products industry, demonstrating the platform's versatility across multiple markets. The company has demonstrated regeneration from single cells in eight crops, with more in development, creating broad partnership opportunities.

The Sustainable Ingredients program, including gene-engineered yeast for biofragrances, is generating R&D revenue and is in a commercial ramp-up phase. The first customer payment was received in Q4 2025, and additional scale-up orders for initial biofragrances are expected in H2 2026. Cibus is also developing additional fragrance ingredients using similar processes. The Loric Oils program in soybean, funded by a Consumer Packaged Goods Partner, is another key initiative within this segment, building on the same soybean platform.

The regulatory landscape is increasingly favorable for Cibus's gene-editing technology. The European Union finalized new rules in June 2026, generally treating most crops improved without adding foreign DNA as conventionally bred, rather than GMOs. These rules entered force in July and have a two-year implementation period. Ecuador and Peru have also confirmed Cibus's herbicide-tolerant rice traits are equivalent to conventionally bred ones. The US FDA completed its review of altered lignin alfalfa, and USDA APHIS determined Cibus's traits are not regulated articles, underpinning launch timelines across three continents.

Cibus demonstrated significant cost reductions, with quarterly cash usage declining 19% sequentially and 31% year-over-year. Combined R&D and SG&A operating expenses decreased by nearly $5 million year-over-year. The company is conducting a thorough review of its cost structure and capital allocation, aiming to drive non-core costs down while strategically investing in technology and personnel for growth initiatives. The focus is on strengthening the financial foundation and driving near-term revenues.