Codexis (CDXS) Q4 2025 earnings summary

Executive summary

• Achieved pivotal milestones in 2025, advancing the ECO Synthesis platform from concept to viable business, supporting preclinical development and customer IND submissions.

• Fourth quarter 2025 revenue reached $38.9 million, with full-year revenue at $70.4 million, up 19% year-over-year, driven by the Merck agreement and higher R&D revenue.

• Completed a $37.8 million Technology Transfer Agreement with Merck, significantly boosting Q4 revenue and validating commercial interest.

• Ended 2025 with $78.2 million in cash and equivalents, providing runway through 2027.

• Secured multiple contracts with leading pharma, biotech, and CDMOs, expanding commercial reach and supporting profit margins.

Financial highlights

• FY 2025 revenue reached $70.4M, up from $59.3M in 2024; Q4 2025 revenue was $38.9M, up from $21.5M in Q4 2024.

• Product gross margin improved to 64% for FY25 (from 56% in FY24) and 65% in Q4 2025 (from 63% in Q4 2024).

• FY25 net loss narrowed to $44.0 million, improved from $65.3 million loss in 2024; Q4 2025 net income was $9.6 million versus a $10.4 million loss in Q4 2024.

• R&D expenses: $11.7M in Q4 2025 ($52.3M FY), up from $12.1M Q4 2024 ($46.3M FY 2024); SG&A expenses: $11.2M in Q4 2025 ($47.1M FY), down from $13M Q4 2024 ($55.1M FY 2024).

• One-time restructuring charge of $3.4M in Q4 and FY25.

Outlook and guidance

• 2026 revenue guidance is $72M–$76M, with revenue expected to be weighted toward the second half of the year.

• Gross margins expected to remain stable at 2025 levels; operating expenses and CapEx to be similar to 2025.

• Cash position expected to fund operations through end of 2027.

• Focus on signing new licensing deals, scaling up ECO Synthesis, and progressing customer contracts to multi-year agreements.

• GMP facility retrofit to begin in H2 2026, with full production by end of 2027.