Codexis Inc (CDXS) Q3 2025 Earnings Call Highlights: Strategic Shifts and New Partnerships ...

This article first appeared on GuruFocus.

Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Codexis Inc (NASDAQ:CDXS) signed a supply assurance agreement with Merck, providing a vital infusion of non-dilutive cash. The company has 11 revenue-generating contracts with 40 more in the pipeline, indicating strong commercial momentum. Codexis Inc (NASDAQ:CDXS) is transitioning into a full-service manufacturing innovator, enhancing its capabilities in oligonucleotide manufacturing. The company is set to sign a lease for a new facility, enabling GMP-grade manufacturing using eco-synthesis technologies. The technical team has made significant progress in scaling the eco platform, with new data to be presented at Tides Europe.

Negative Points

Total revenues for the third quarter of 2025 decreased to $8.6 million from $12.8 million in the third quarter of 2024. There is a strategic shift away from the historical small molecule biocatalysis business due to changing market dynamics and pricing pressures. Research and development expenses increased to $13.9 million in Q3 2025 from $11.5 million in Q3 2024, driven by higher headcount and lab supply expenses. The company experienced a net loss of $19.6 million for Q3 2025, slightly lower than the $20.6 million loss in Q3 2024. Codexis Inc (NASDAQ:CDXS) is undergoing a restructuring that includes reducing headcount across various groups to align with its new strategic focus.

Q & A Highlights

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Q: Can you discuss the impact of the management transition on Codexis's partnership strategy and plans for GMP scale-up? A: Dr. Steven Dilly, CEO, stated that the transition does not alter their plans. They are encouraged by their progress, including a scaling partnership with Nitto and the increase in early-phase contracts. The company is focused on proving their technology and growing with their partners.

Q: How are early partner findings influencing future discussions, and how does Codexis handle confidentiality? A: Dr. Alison Moore, Chief Technical Officer, explained that their platform is proving itself with a growing number of customers. Each customer has unique needs, and Codexis is learning to adapt their platform accordingly. They are optimistic about progressing into larger co-development relationships in 2026.

Q: What unique capabilities does Nitto bring to the partnership, particularly in scalability and manufacturing expertise? A: Britton Jimenez, Senior Vice President, Sales and Marketing, highlighted that Nitto is a market leader in the CDMO space and will help Codexis scale their technology for larger batch sizes needed in later-stage production. This partnership is a key part of their strategy.

Story Continues

Q: Can you elaborate on the contribution of siRNA revenue to the product revenue segment and its impact on offsetting declines in legacy sales? A: Georgia Herbes, Chief Financial Officer, noted that current contracts are in the service area, not product area. Service revenue is expected to remain consistent, though the source is shifting. This shift has been anticipated for some time.

Q: What can we expect from Codexis's presentations at the upcoming Tides conference, and how might they impact commercial progress? A: Dr. Alison Moore shared that they will present data on their platform's scalability and in-process analytics capabilities. These presentations are expected to be first-in-class for siRNA therapeutic developers and could significantly impact their commercial progress.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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