Evogene (EVGN) Q2 2025 earnings summary

Executive summary

• Strategic shift to focus on ChemPass AI platform for small molecule discovery in pharma and agriculture, with divestment of non-core assets and subsidiaries completed in Q3 2025.

• Revenue for the six months ended June 30, 2025, was $3.2M, up from $2.3M year-over-year, with a gross profit of $1.6M.

• Major cost reduction initiatives and organizational restructuring implemented, including workforce reductions of 30% at Evogene and over 40% at AgPlenus.

• Sale of Lavie Bio's main activities and MicroBoost AI for Ag to ICL for $18.75 million, strengthening cash position and providing an 18-month operational runway.

• Casterra remains the primary revenue-generating subsidiary, with expansion into new markets and promising field trial results in Brazil and Kenya.

Financial highlights

• First half 2025 revenues were $3.2 million, up from $2.3 million in the first half of 2024, mainly due to strong seed sales from Casterra.

• Operating loss for H1 2025 was $6.1 million, down from $9.4 million in H1 2024, reflecting lower operating expenses.

• Net loss for H1 2025 was $7.7 million, an improvement from $9.8 million in H1 2024.

• Gross margin for the six months was 48.8%, compared to 71.9% in the prior year period.

• Cash and short-term deposits at June 30, 2025, were $11.7 million, not including proceeds from asset sales completed in Q3.

Outlook and guidance

• Full benefit of cost reductions expected in H2 2025, with further expense declines anticipated across R&D, business development, marketing, and G&A.

• ChemPass AI to remain the core focus, with continued investment and new collaborations in both pharma and agriculture expected.

• Casterra to pursue new market opportunities and build sustainable revenue streams, with updates on field trial results forthcoming.

• Lavie Bio and Biomica to maintain limited activities, with Lavie Bio distributing funds to shareholders and Biomica focusing on clinical trial completion and partnership development.