Codexis (NASDAQ:CDXS) Issues Quarterly Earnings Results

Key Points

• Codexis beat quarterly expectations, reporting a loss of $0.10 per share versus the $0.11 estimate and revenue of $15.25 million, above analyst forecasts. The company also said revenue was sharply higher year over year.
• ECO Synthesis is advancing, with management highlighting new siRNA data, stereochemical control at both ends, and a target of roughly 0.5 kg scale by year-end. The platform is being positioned as a scalable alternative to chemical synthesis.
• Financial and execution outlook improved but risks remain, as gross margin rose to 71% and the net loss narrowed, while Codexis reiterated 2026 revenue guidance of $72 million to $76 million. However, cash declined and the company still faces scaling and facility buildout risks.

Codexis (NASDAQ:CDXS - Get Free Report) released its earnings results on Thursday. The biotechnology company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.01, FiscalAI reports. Codexis had a negative net margin of 40.97% and a negative return on equity of 66.32%. The firm had revenue of $15.25 million during the quarter, compared to analyst estimates of $14.53 million.

Here are the key takeaways from Codexis' conference call:

• ECO Synthesis progress — management will present novel data at TIDES showing stereochemical control at both 3' and 5' ends of siRNA and is targeting roughly 0.5 kg scale by year-end, positioning the platform as a potential scalable alternative to chemical synthesis.
• Strong commercial interest — the sales funnel includes >50 opportunities across ~40 companies, active engagements with multiple CDMO partners, and ongoing talks that could produce a major pharma licensing deal in H2 2026.
• Financial momentum — Q1 revenue rose to $15.2M (vs. $7.5M Y/Y) driven by recognition of the Merck agreement, product gross margin improved to 71%, net loss narrowed to $8.7M, and management reiterated 2026 revenue guidance of $72M–$76M.
• Execution and funding risks — cash and short-term investments fell to $65.1M (from $78.2M), the new Hayward GMP plant build begins construction in H2 2026 with operations expected end of 2027, and scaling from gram to kilogram scale still involves process-control and timeline risks that could affect commercialization timing.

Codexis Stock Performance

Shares of CDXS traded up $0.27 during midday trading on Friday, hitting $2.85. 1,825,589 shares of the stock traded hands, compared to its average volume of 1,326,488. Codexis has a 1-year low of $0.96 and a 1-year high of $3.87. The firm has a market capitalization of $259.07 million, a PE ratio of -7.70 and a beta of 2.52. The company has a debt-to-equity ratio of 0.79, a quick ratio of 3.75 and a current ratio of 3.82. The business's 50 day moving average price is $1.90 and its two-hundred day moving average price is $1.77.

Hedge Funds Weigh In On Codexis

Hedge funds and other institutional investors have recently modified their holdings of the company. State of Wyoming acquired a new position in shares of Codexis during the second quarter valued at $25,000. Victory Capital Management Inc. acquired a new position in shares of Codexis during the third quarter worth approximately $25,000. CIBC Bancorp USA Inc. acquired a new position in shares of Codexis during the third quarter worth approximately $26,000. BNP Paribas Financial Markets boosted its position in shares of Codexis by 93.8% during the third quarter. BNP Paribas Financial Markets now owns 16,608 shares of the biotechnology company's stock worth $41,000 after buying an additional 8,038 shares during the period. Finally, Persistent Asset Partners Ltd acquired a new position in shares of Codexis during the fourth quarter worth approximately $45,000. Institutional investors and hedge funds own 78.54% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Wall Street Zen lowered shares of Codexis from a "buy" rating to a "hold" rating in a research note on Sunday, May 3rd. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Codexis in a report on Thursday, March 12th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Codexis in a report on Wednesday, January 21st. Finally, Stifel Nicolaus set a $5.00 target price on Codexis in a report on Thursday, March 12th. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $5.00.

About Codexis

Codexis, Inc, headquartered in Redwood City, California, is a leading protein engineering company focused on the development of innovative enzyme solutions for pharmaceutical, food and beverage, and specialty chemical applications. The company’s proprietary directed evolution platform, CodeEvolver®, enables the rapid identification and optimization of enzymes with enhanced activity, selectivity and stability. By leveraging this technology, Codexis provides custom biocatalysts designed to improve manufacturing efficiency and reduce environmental impact.

Since its founding in 2002, Codexis has expanded its capabilities from early-stage research to commercial-scale production.

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