This article first appeared on GuruFocus .
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Total Revenue:$14.9 million for Q2 2026, compared to $15.3 million in Q2 2025.
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Product Gross Margin:73% for Q2 2026, an improvement over Q1 2026 and full-year 2025; full-year 2026 gross margins expected to improve into the high 60% range.
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R&D Expenses:$11.7 million in Q2 2026, down from $13.8 million in Q2 2025.
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SG&A Expenses:$10.9 million in Q2 2026, down from $12.3 million in the prior-year period.
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Net Loss:$12 million in Q2 2026, compared to a loss of $13.3 million in Q2 2025.
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Cash Position:$54.9 million in cash equivalents and short-term investments at end of Q2 2026, down from $78.2 million at end of 2025; pro forma cash balance of approximately $79.8 million after a $25 million equity financing.
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2026 Revenue Guidance:Expected in the range of $72 million to $76 million, weighted toward the second half of the year.
Release Date: August 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Codexis Inc ( NASDAQ:CDXS ) reported solid Q2 2026 revenue of $14.9 million, with a significant improvement in its biocatalytic enzyme business, signaling a return to growth.
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Product gross margin improved to 73% in Q2 2026, driven by higher sales of more profitable products, and the company now expects full-year gross margins to improve to the high 60s%.
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The ECO Synthesis platform demonstrated new capabilities at TIDES-US, including precise control of phosphorothioate stereochemistry and starterless synthesis, which have generated significant customer interest and advanced commercial discussions.
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The company successfully raised approximately $25 million in net proceeds from an equity financing, extending its cash runway through 2028 and providing greater financial stability.
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The pharma biocatalysis business remains stable and profitable, with 14 commercial products supported, including four new product approvals in 2026, and a robust pipeline of 15 programs in Phase 2/3 clinical development.
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Construction of the GMP manufacturing facility is on track, with equipment ordered and a building permit application imminent, positioning the company to support customer IND filings and clinical trials.
Negative Points
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Total revenues for Q2 2026 were $14.9 million, a slight decrease from $15.3 million in the same period last year, indicating a modest year-over-year decline.
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The company continues to incur net losses, reporting a net loss of $12 million in Q2 2026, though this is an improvement from the $13.3 million loss in Q2 2025.
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Cash and short-term investments decreased to $54.9 million at the end of Q2 2026 from $78.2 million at the end of 2025, reflecting significant cash burn.
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The revenue guidance for 2026 remains unchanged at $72 million to $76 million, with a heavy weighting toward the second half, implying a significant step-up in revenue that may be challenging to achieve.
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The biocatalysis business is subject to lumpy and unpredictable order patterns from customers, which can create volatility in quarterly revenue performance.
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The ECO Synthesis technology is still in the R&D stage for some capabilities, such as starterless synthesis, and the company faces technical hurdles in scaling up to kilogram-scale production, which may delay commercialization.
Q & A Highlights
Q: What has customer reaction been to the stereochemistry data and single nucleotide initiation capabilities shown at TIDES USA, and what updates can be expected at TIDES Europe? A: Britton Jimenez (SVP, Sales and Marketing) noted significant excitement from TIDES US, which has advanced conversations with several customers interested in stereochemistry control for therapeutic and quality benefits. The new starterless capability has also changed the position of past customers, prompting them to advance and test the technology. Stefan Lutz (Chief Scientific Officer) indicated that TIDES Europe will continue the story, potentially addressing data on the biological impact of stereo control.
Q: How might advances in stereochemistry allow partners to lower dosage, save money, and improve safety measures? A: Stefan Lutz (Chief Scientific Officer) explained that the cellular environment is chiral, so stereochemistry can play to that nature, similar to small molecule APIs where it impacts therapeutic efficacy. He highlighted manufacturing advantages, including reduced process complexity and simplified downstream processing, which today involves elaborate purification chromatography. Alison Moore (CEO) added that Codexis is conducting ongoing work evaluating activity improvement opportunities in biological assays.
Q: How much will the desire for precise stereochemistry control drive potential partnerships, and what key data suggests its added benefits? A: Alison Moore (CEO) stated that some current customers feel strongly about stereo control while others are less concerned, and Codexis can deploy ECO Synthesis technologies for both. One particular customer is very interested in eking out potency opportunities from stereochemical control. Codexis is making material with specific stereo configurations and advancing studies to understand activity opportunities, with other companies in negotiations for similar work.
Q: Regarding the $72 million to $76 million revenue guidance, how should we think about the cadence of the significant step-up in the second half, and how much is from contracts already in hand? A: Georgia Erbez (CFO and CBO) explained that revenue comes from a diverse variety of sources. The base business performance has been improving, as seen in Q2, with the same trends continuing. There are also strong leads in ECO Synthesis performance, and the company hopes to show more about the split in Q3.
Q: What do orders look like for the four product approvals received this year, and should we expect consistent or lumpy revenue? A: Georgia Erbez (CFO and CBO) noted that every customer is different in how they prepare for commercial launchsome stockpile drug, some don't, and some are steadier in manufacturing plans. While it can still be lumpy and unpredictable, overall positive trends are emerging from these approvals.
Q: With 15 programs in Phase 2 and 3 and seven readouts over the next few years, is there an opportunity for elevated growth in the biocatalyst business? A: Georgia Erbez (CFO and CBO) expressed excitement about the prospects for the base business with upcoming approvals, noting that after two years with hardly any approvals, the pipeline is maturing. The products span a wide range of markets, from niche to large. The company expects the business could grow in the high single-digits for the next five to seven years once approvals start.
Q: Have all three CDMO contracts completed small-scale tech transfers, and are all in advanced negotiations for long-term commercial contracts? A: Britton Jimenez (SVP, Sales and Marketing) confirmed that all three CDMOs have received the technology at small scale in their facilities, but they are on different timelines. One has completed its entire assessment and is in long-term commercial partnership negotiations, which the company hopes to wrap up fairly quickly. The other two are a step behind, still in the evaluation process.
Q: What would be a reasonable ballpark of how much siRNA Codexis could supply to the industry in 18-24 months relative to today? A: Alison Moore (CEO) stated that the company is currently producing at hundreds of gram scale, aiming for half kilo scale by year-end and kilo scale before operationalizing the GMP facility. The focus is on adoption, supplying preclinical and clinical material to customers. The company can step up 10x from one kilo, likely via partnerships, and the technology is approximately 70% more capital efficient than current methods.
Q: What were some technical risks or hurdles overcome in innovating the technology to hundreds of grams, and what are the main hurdles to scaling to kilogram? A: Stefan Lutz (Chief Scientific Officer) explained that enzymes need to be high-performance across a wide range of parameterstolerating different building blocks, operating over long durations, and recognizing stereochemistrywhich Codexis has mastered through two decades of enzyme engineering experience. Alison Moore (CEO) added that the process flow is simplenucleotides flow over immobilized enzymesbut scale parameters like flow rates, enzyme configuration, and temperature control are being optimized. The enzymes are uniquely engineered, and every synthetic nucleotide addition has its own character, requiring a robust design space for any customer sequence.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
