Evogene (EVGN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $2.4M, down from $4.2M in Q1 2024, mainly due to one-time license fees in 2024; current revenues driven by Casterra seed sales.

• Operating loss remained stable at $4.1M; net loss narrowed to $3.0M from $3.8M year-over-year, reflecting lower expenses and higher financing income.

• Expense reduction plans implemented across the group, with significant decreases in R&D and operating expenses; plan initiated in late 2024 and underway.

• Major asset sale: Lavie Bio's core activities and MicroBoost AI engine sold to ICL for up to $18.75M, expected to close in Q2 2025.

• Cash and short-term deposits at $9.8M as of March 31, 2025, not including pending receivables and proceeds from the Lavie Bio transaction.

Financial highlights

• Q1 2025 revenue: $2.4M (vs. $4.2M Q1 2024); decrease due to absence of prior year license fees.

• R&D expenses: $3.2M (down from $4.8M); sales & marketing: $645K (down from $992K); G&A: $1.3M (down from $1.7M).

• Operating loss stable at $4.1M; net loss improved to $3M (from $3.8M), aided by increased net financing income.

• Cash used by Evogene and non-Lavie Bio/Biomica subsidiaries: $3M in Q1 2025.

• Net financing income rose to $1.5M in Q1 2025 due to remeasurement of warrants from August 2024 fundraising.

Outlook and guidance

• Expense reduction plans to be completed by Q2/Q3 2025, further improving cost structure.

• Cash runway expected through end of 2026 under conservative assumptions, with flexibility to further reduce expenses if needed.

• Additional cash inflows anticipated from Lavie Bio asset sale and potential future revenues from ongoing collaborations.

• Focus on monetizing ChemPass-AI in pharma and generating cash flow from subsidiaries.

• Casterra's grain trials in Kenya and Brazil ongoing, with initial results expected in Q3 2025.