Codexis, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the third quarter of 2026 were $19.3 million, compared to $8.6 million in the third quarter of 2025.
• Product revenue was $15.74 million, up from $6.81 million in the prior year period, driven by the approval and launch of new products with higher margins.
• Research and development revenue was $3.52 million, compared to $1.79 million in the third quarter of 2025.
• Product gross margin was 74.5% for the third quarter of 2026, an increase from 64% in the third quarter of 2025, due to a shift in sales toward more profitable products.
• Research and Development expenses were $12.6 million for the third quarter of 2026, down from $13.9 million in the third quarter of 2025.
• Selling, General & Administrative expenses were $10.1 million for the third quarter of 2026, down from $11.2 million in the third quarter of 2025.
• Net loss for the third quarter of 2026 was $8.1 million ($0.08 per share), compared to a net loss of $19.6 million ($0.22 per share) in the third quarter of 2025.
• As of September 30, 2026, the company held $72.7 million in cash, cash equivalents, and short-term investments.
• Deferred revenue decreased to $0.74 million (current) and $0 (non-current) as of September 30, 2026, from $7.01 million (current) and $0.36 million (non-current) as of December 31, 2025.
• Long-term debt decreased to $29.49 million as of September 30, 2026, from $40.11 million as of December 31, 2025.

Guidance and Future Outlook:

• Codexis reiterated full-year 2026 total revenue guidance of $72 million to $76 million.
• The company updated its 2026 gross margin estimate to the low 70% range.
• Existing cash, cash equivalents, and short-term investments are expected to fund planned operations through the end of 2028, including expenses for the GMP production facility build-out.
• The company expects to begin retrofit construction for its ECO GMP Manufacturing Center in the new year, with the facility targeted to be operational by the end of 2027.
• The ECO GMP Manufacturing Center is intended to provide siRNA material for preclinical investigations and Phase 1 and 2 clinical trials.
• The company aims to advance partnerships with drug innovators toward clinical stage manufacturing agreements.
• Codexis plans to expand relationships with existing and future CDMO partners with a goal of commencing a strategic partner agreement.

Business Segments and Product Lines:

• The ECO Synthesis® Manufacturing Platform demonstrated successful scale-up to 100-gram scale with high product quality and improved process performance with reduced cycle time at the TIDES Europe annual meeting.
• Presentations at TIDES Europe showed greater potency of stereo-defined siRNA compared to chemically synthesized material.
• In October, Codexis announced a feasibility study with a pioneer siRNA company to synthesize stereo-defined fragments using its ECO Synthesis technology to increase purity above standard solid phase chemistry levels.
• The BioCatalysis business supplies high-performance enzymes used in the manufacture of multiple commercially available small molecule therapeutics.

Market and Competitive Landscape:

• Technical achievements and data presentations have garnered attention from leading innovators in the siRNA field.
• Industry-wide interest in the ECO Synthesis Manufacturing Platform continues to expand.
• The company is addressing the rapidly growing demand for RNAi therapeutics.

Risks and Challenges:

• Risks include dependence on licensees and collaborators, potential termination of development programs, and reliance on a limited number of products and customers.
• Risks exist regarding the ability to successfully develop and commercialize new technology, including the ECO Synthesis® Manufacturing Platform.
• Potential competition from companies with greater resources could render Codexis' technologies obsolete.
• Risks involve the timing, cost, and successful completion of the retrofit construction of the GMP facility and potential regulatory acceptance of enzymatically synthesized oligonucleotides.
• Risks include the need for additional capital, potential inability to comply with debt covenants, and intellectual property infringement claims.

Management Commentary and Tone:

• CEO Alison Moore, PhD, expressed pleasure with outstanding progress in 2026 through innovation and technical achievements.
• Management highlighted significant progress in industrializing technology while increasing revenue, managing expenses, and improving financial stability.
• The tone reflects confidence in the balance sheet strengthening and the commercial potential of the ECO Synthesis platform.

Other Key Points:

• In November, Codexis entered into a $60 million senior secured loan agreement with Trinity Capital; the initial $42.5 million tranche was used to refinance existing debt, with the remainder available for future drawdown.
• In July, the company completed an equity financing raising approximately $25 million in net proceeds.
• The company hosted key presentations at the 2026 TIDES Europe annual meeting demonstrating production of 100 grams of high-quality oligonucleotide.
• The conference call and webcast were scheduled for November 12, 2026, at 4:30 pm ET.