What is the prevalence of hybrid rice in Latin America, and how many acres are modeled for 2028 entry?

Peter Beetham stated that the Latin American market has primarily been inbred/conventional varieties but is moving towards hybrid seed production. He noted that major crops globally are shifting to hybrids, and rice is following this trend. Cibus models gross acreage in the 5 to 7 million range for hybrids penetrating this marketplace, with partners like Federos also working on inbred varieties. “So, you know, right now, if you look at major crops around the world, they're all heading in the direction of hybrids. So corn has led the way. Wheat is coming right now. Canola has always been there. And now we're seeing rice globally have the same impact.”

Given the two-year EU implementation period, does Cibus have people on the ground to influence the process and ensure preparedness?

Peter Beetham confirmed that Cibus has been closely following EU legislation for years and has people on the ground in Europe, including business development personnel with decades of experience in the European seed industry. Carlo Bruce added that these individuals are super close to European seed partners. Craig Wichner highlighted the partnership with John Innes Centre as an example of their existing footprint and relationships, positioning them well for the regulatory changes. “I can assure you that we actually have people on the ground there in Europe. I'm going to let Carlo talk to that. but I think that it's important to understand that we do have clear implications from our own team in Europe and experience.”

Are there other non-biofragrance specialty sustainable ingredients being targeted, or is the program limited to biofragrances for now?

Craig Wichner explained that the sustainable ingredients platform is broad, scaling from microbes to plant applications, specifically around making unique compounds within crops. While biofragrances are the initial commercialized application and are expanding rapidly, Cibus is also working with partners on other uses, particularly Palm Kernel Oil as a platform for sustainable ingredients. He indicated more details would be rolled out in coming quarters. “The initial commercialized applications are biofragrance now. It's validated commercially and we're generating revenues and moving forward with that. That will expand rapidly. we are working with partners on other uses, particularly on the palm palm, Kernel Oil as a great platform for sustainable ingredients.”

CBUS

Cibus (CBUS) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 13, 2026

Source: earnings call transcript

Executive summary

Cibus Q2 FY26 — Strategic Focus and Regulatory Tailwinds Amidst Rice Launch Delay

Cibus is sharpening its strategic focus under new CEO Craig Wichner, emphasizing capital discipline and near-term revenue generation from its scalable gene-editing platform. The company is leveraging favorable regulatory environments in Europe and Latin America to advance its pipeline, particularly in sustainable ingredients and rice, despite a revised timeline for its rice commercial launch. Management is prioritizing resource allocation to drive growth while continuing to reduce non-core costs.

Highlights

Sustainable Ingredients program revenue increased 35% year-to-date, reaching $6 million.
Quarterly cash usage declined approximately 19% sequentially and 31% year-over-year.
Combined R&D and SG&A operating expenses decreased by nearly $5 million year-over-year.
EU finalized new rules treating most gene-edited crops as conventionally bred, entering a two-year implementation period.
Expanded framework with Interoc from two rice traits to five, deepening partnership.

Concerns

Initial commercial launch timing for rice in Latin America updated from late 2027 to 2028, with US launch targeted for 2029.
Net cash usage run rate exiting 2026 is now targeted at approximately $35 million, up from previous expectations of less than $30 million.

Guidance & targets

Category	Target	Timeline	Confidence
Biofragrance annual revenue opportunity	$20M-$40M annually medium materiality	Annual	High
Rice royalty annual addressable opportunity	over $200M annually high materiality	Annual	High
Rice commercial launch timing (Latin America)	2028 high materiality	CY2028 · FY28	Medium
Rice commercial launch timing (United States)	2029 high materiality	CY2029 · FY29	Medium
Cash and cash equivalents sufficiency	into early in the first quarter of the next year. quarter of 2027 high materiality	Q1 · FY27	Medium
Net cash usage run rate	approximately $35 million high materiality	Annualized exiting 2026 · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Sustainable Ingredients Program Revenue for the quarter was $1 million, compared to $0.9 million in the year-ago period. Year-to-date revenue was $6 million, up from $2 million in the prior year, representing a 35% increase earned under collaboration agreements. This program is in a commercial ramp-up phase, with the first customer payment received in Q4 2025. Additional scale-up orders for initial biofragrances are expected in H2 2026. YTD Revenue: $6MYTD Revenue (prior year): $2MYTD Revenue Growth: 35%	$1M	—	—	—

Deals & partnerships

Interoc Expanded framework for rice traits

Expanded framework with Interoc from two rice traits to five, moving towards being a trait pipeline powering their varieties rather than licensing one trait.

John Innes Centre Collaboration on Nutrient Use Efficiency program

Partnership focused on how plant roots take up nutrients, targeting the whole fertilizer package. Cibus expects to send edited canola material in Q3 FY26.

DEFRA (British Agricultural Department) Funding for Light Leaf Spot Resistance program

UK government research program funding work on Light Leaf Spot Resistance in canola, a fungal disease that erodes yields in Europe.

Consumer Packaged Goods Partner Funding for Loric Oils program in soybean

Second partner-funded program inside Sustainable Ingredients, running on the same soybean platform being built for other traits.

Risks & headwinds

Delayed rice commercial launch in Latin America Next 1-2 years

From late 2027 to 2028

Mitigation:Deepening relationships with partners like Interoc (expanded to five traits), continued development of herbicide tolerance traits, and strategic focus on hybrid varieties.

Increased net cash usage run rate Exiting FY26

Targeted at approximately $35 million annualized exiting 2026 (up from less than $30 million)

Mitigation:Continued cost discipline, finishing consolidation of facilities, and strategic investments in technology and personnel geared towards growth initiatives and bolstering pipeline opportunities.

What to watch in Q3 FY26

Biofragrance scale-up orders

H2 FY26

Current Commercial ramp-up phase, first payment Q4 2025

Target Additional scale-up orders received

Why it matters

Confirmation of commercial traction and revenue growth in the Sustainable Ingredients program.

We continue to expect additional scale-up orders of our initial biofragrances in the second half of 2026.

Find out whether CBUS delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you elaborate on the 'trait machine' model for specific seed companies versus broad licensing, and its economics/moat?

Craig Wichner explained that the 'trait machine' model focuses on providing a competitive advantage to specific key partners by offering a pipeline of traits, rather than just single edits. This deepens relationships, accelerates deployment, and broadens market opportunities. He cited the Interoc partnership in rice as an example, where Cibus provides a broad platform of technology and multiple traits to give Interoc a strong competitive advantage.

“What we're adding here is the ability to really provide a competitive advantage for specific key partners in specific geographies by crop and partner.”

asked by Matthew Venezia · answered by Craig Wichner

2 min read 5 chapters

Detailed narrative

CEO Vision and Strategic Framework

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.

Platform Scalability and Market Opportunities

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.

Sustainable Ingredients Program Progress

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.

Favorable Regulatory Environment

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.

Cost Discipline and Financial Management

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.