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    CDXS
    Earnings call· Jun 2026(Q2 FY26)

    CODEXIS Q2 FY26 earnings call CDXS

    Aug 11, 2026 Source

    Executive summary

    Codexis Q2 FY26 — EcoSynthesis Platform Advances & Biocatalysis Business Returns to Growth

    Codexis reported solid Q2 FY26 results, driven by a return to growth in its small molecule biocatalysis business and significant advancements in its EcoSynthesis platform. The company successfully raised $25 million in new capital, extending its cash runway through 2028, and is progressing with its GMP manufacturing facility construction. Management is focused on industrializing the EcoSynthesis technology to address the anticipated siRNA manufacturing bottleneck and secure higher-value contracts, while also managing expenses to achieve profitability.

    Highlights

    5

    • Q2 FY26 revenue of $14.9 million, demonstrating solid financial results.

    • Successful equity financing raised $25 million net proceeds, extending cash runway through 2028.

    • Product gross margin improved to 73% in Q2 FY26, driven by higher sales of more profitable products.

    • Small molecule biocatalysis business returned to growth with 4 new product approvals and 1 label expansion in 2026.

    • EcoSynthesis platform advanced with new stereochemistry control and starterless synthesis data, generating significant customer interest.

    Concerns

    4

    • Total revenues decreased slightly to $14.9 million in Q2 FY26 compared to $15.3 million in Q2 FY25.

    • Net loss for Q2 FY26 was $12 million, though an improvement from $13.3 million in Q2 FY25.

    • Current siRNA production technologies are recognized as unable to keep up with future demand, with a manufacturing bottleneck anticipated within three years.

    • Biocatalyst product orders can be lumpy and unpredictable, impacting revenue cadence.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 revenue
    $72 million to $76 million
    high materiality
    High
    Cash runway
    through 2028
    high materiality
    High
    Product gross margin
    high 60s
    medium materiality
    High
    GMP production facility construction start
    begin construction following approval of the permit
    high materiality
    High
    EcoSynthesis pilot scale production
    500 gram
    medium materiality
    High
    EcoSynthesis production scale
    kilo scale
    medium materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Small Molecule Biocatalysis Business
    This business remains stable and profitable, benefiting from recent new product approvals and a label expansion, which have resulted in a renewed growth trend. The product pipeline is robust with significant clinical development activity.
    Commercial products: 14Regulatory approvals in 2026: 4Label expansions in 2026: 1Programs in Phase 2 or 3 clinical development: 15Clinical trial readouts expected in next 2 years: 7
    		—renewed growth trend—stable and profitable

    Operational metrics

    18
    Total revenues
    $14.9 millioncompared to $15.3 million in Q2 FY25
    Q2 FY26

    Solid financial results reported.

    Product gross margin
    73%improvement over Q1 FY26 and FY25
    Q2 FY26

    Primarily driven by higher sales of more profitable products.

    Research and development expenses
    $11.7 millioncompared to $13.8 million in Q2 FY25
    Q2 FY26

    Decline largely driven by lower employee-related costs and reduced spending on outside services and lab supplies.

    Selling general and administrative expenses
    $10.9 millioncompared to $12.3 million in Q2 FY25
    Q2 FY26

    Decline primarily due to lower employee-related costs associated with reduced headcount, lower stock-based compensation expenses, and lower aliquot costs.

    Net loss
    $12 millioncompared to a loss of $13.3 million for Q2 FY25
    Q2 FY26

    Improvement in net loss year-over-year.

    Cash, cash equivalents, and short-term investments
    $54.9 millioncompared to $78.2 million at the end of 2025
    Q2 FY26 end

    Balance at the end of the second quarter.

    Pro forma cash balance
    $79.8 million
    post Q2 FY26

    Resulting from successful equity financing subsequent to quarter end.

    Capital raise net proceeds
    $25 million
    post Q2 FY26

    From successful equity financing closed two weeks prior to the call.

    GMP facility construction cost
    $25 million
    projected

    Investment underscores long-term commitment to supporting product development.

    siRNA demand increase
    30-fold
    by 2035

    Demand for siRNA is expected to increase significantly.

    siRNA manufacturing bottleneck
    anticipated
    within the next three years

    Particularly as large Phase III cardiovascular trials reach conclusions.

    RNA medicines in development growth
    at least 10%
    per year

    Estimated rate of expansion for RNA medicines in development.

    RNA medicines in clinical trials
    over 100
    current

    Number of product candidates in clinical trials.

    RNA medicines in preclinical development
    more than 400
    current

    Number of product candidates in preclinical development.

    EcoSynthesis current production scale
    hundreds of grams
    current

    Current production scale when ligating fragments.

    EcoSynthesis year-end production scale target
    half kilo
    by year-end

    Target for EcoSynthesis production scale by the end of the year.

    EcoSynthesis pre-GMP production scale target
    kilo scale
    before GMP operationalization

    Target production scale before the GMP facility becomes operational.

    EcoSynthesis capital efficiency
    70%more capital efficient
    long-term

    EcoSynthesis platform is approximately 70% more capital efficient than current methods.

    Industry KPIs

    2
    MetricValueDetails
    Revenue EPS guidance$72 million to $76 millionUSD
    Pricing price realizationhigher margins

    Product announcements

    2
    ProductTypeDetails
    EcoSynthesis Technology (Stereochemistry Control)update
    Starterless EcoSynthesislaunch

    Deals & partnerships

    1
    Three CDMOsSmall-scale technology transfers for EcoSynthesis assessment

    Codexis has completed small-scale technology transfers of the EcoSynthesis process into the facilities of three CDMO partners for in-house assessment. The most advanced assessment has been completed, leading to negotiations for a long-term commercial contract.

    Risks & headwinds

    3
    siRNA manufacturing bottleneckWithin the next three years

    Current production technologies will not be able to keep up with future demand, anticipated within 3 years, especially as large Phase III cardiovascular trials conclude.

    Mitigation: EcoSynthesis platform offers a scalable, capital-efficient alternative, 70% more capital efficient than current solid-phase organic synthesis.

    Capital costs of building new facilities for solid-phase synthesisLong-term

    Approximately $1 billion of stainless steel to generate one metric ton additional annually.

    Mitigation: EcoSynthesis platform is 70% more capital efficient, offering a less capital-intensive route for scaling.

    Lumpiness and unpredictability of biocatalyst product ordersOngoing

    Not quantified, but noted as a historical trend.

    Mitigation: Diversified revenue base and focus on new product approvals to drive overall positive trends.

    What to watch in Q3 FY26

    5

    CDMO long-term commercial contract

    Next quarter
    CurrentOne CDMO has completed assessment and is in negotiations.
    TargetContract signed.

    Why it matters

    Securing this contract would validate the EcoSynthesis platform and open a significant channel for adoption and scaling.

    One has pretty much completed their entire assessment, and that is by far the most advanced CDMO that we have, which we're in long-term commercial participation. NEGOTIATIONS CURRENTLY NOW. ... we're very excited about it, and we do think that lead contract We are hoping to get that wrapped up here fairly quickly.

    Q&A highlights

    8

    How have customers reacted to the new stereochemistry and starterless synthesis data, has it led to new engagements, and what updates are expected at TIDES Europe?

    Customer reaction has been very positive, leading to advanced conversations and new engagements, particularly from past interested customers. TIDES Europe will continue the story, potentially with data on the biological impact of stereo control.

    “TO BUILD ON STEPHON'S COMMENTS THERE, FROM A CUSTOMER INTERACTION, ACTUALLY QUITE A BIT OF EXCITEMENT CAME FROM TIDE.GUS AROUND BOTH THE STEREOCHEMISTRY CONTROL AND THE STARTERLESS INITIATOR. with several customers that believe both in the value of stereochemistry control from a better therapeutic perspective, but also from a quality, that better product quality perspective.”

    asked by Allison Bratzel · answered by Britton Jimenez

    2 min read7 chapters

    Detailed Narrative

    01

    EcoSynthesis Platform Innovation

    Codexis highlighted its EcoSynthesis Manufacturing Platform, an aqueous process for oligonucleotide production. Recent data presented at TIDES-US demonstrated full-length siRNA synthesis with precise stereochemistry control and a novel starterless synthesis capability, which simplifies initiation and lowers costs. These innovations are expected to revolutionize large-scale siRNA manufacturing, addressing an anticipated 30-fold demand increase by 2035 and a manufacturing bottleneck within three years.

    02

    GMP Facility Development

    Construction of a GMP manufacturing facility is proceeding as planned, with the building permit application submitted and equipment ordered. This $25 million investment is crucial for enabling EcoSynthesis adoption, delivering GMP material for IND filings and clinical trials, and deepening Codexis' production scale expertise. The facility is a core component of the strategy to industrialize the platform.

    03

    Small Molecule Biocatalysis Business

    The company's small molecule biocatalysis business remains stable and profitable, experiencing a renewed growth trend. This is attributed to recent new product approvals, with four products receiving regulatory approval in 2026 and one receiving a label expansion. The pipeline includes 15 programs in Phase 2 or 3 clinical development, with data readouts expected from seven clinical trials in the next two years.

    04

    CDMO Partnerships and Commercial Strategy

    Codexis is actively engaging with CDMOs and biopharmaceutical companies to promote the adoption of its EcoSynthesis technology. Small-scale technology transfers have been completed with three CDMOs, with one partner having completed its assessment and currently in negotiations for a long-term commercial contract. The goal is to integrate the technology into therapeutic asset pipelines and production environments, creating revenue-generating relationships and additional channels for adoption.

    05

    Financial Performance and Outlook

    Q2 FY26 revenue was $14.9 million, a slight decrease from $15.3 million in Q2 FY25. Product gross margin improved to 73% in Q2 FY26, driven by more profitable products, and is expected to be in the high 60s for the full year. R&D and SG&A expenses declined due to lower employee-related costs and reduced spending. The company reaffirmed its FY26 revenue guidance of $72 million to $76 million, with a heavier weighting towards the second half.

    06

    Cash Position and Runway Extension

    Codexis ended Q2 FY26 with $54.9 million in cash, cash equivalents, and short-term investments. A subsequent equity financing raised $25 million net proceeds, resulting in a pro forma cash balance of approximately $79.8 million. This extends the company's cash runway guidance through 2028, including expenses for the GMP facility build-out.

    07

    Addressing Market Needs for siRNA

    Management emphasized that current solid-phase organic synthesis technology for siRNA is not sufficiently scalable, requires enormous quantities of solvent, and faces significant capital costs for new facilities. The EcoSynthesis platform offers a more capital-efficient and environmentally friendly alternative, positioned to address the growing demand for siRNA medicines and enable broader patient access.

    AI-generated summary of the company’s earnings call. Not investment advice.