Codexis Q1 revenue more than doubles on Merck agreement

Codexis

07/05/2026 21:55

Overview

U.S. enzymatic solutions provider's Q1 revenue more than doubled yr/yr, driven by Merck agreement

Q1 net loss narrowed from prior year as gross margin rose and expenses declined

Company reiterated full-year 2026 revenue guidance and expects cash to fund operations through 2027

Outlook

Codexis sees 2026 total revenues between $72 mln and $76 mln

Company expects existing cash to fund operations through end of 2027

Codexis plans full production capability at ECO GMP Manufacturing Center by end of 2027

Result Drivers

MERCK AGREEMENT - Co said Q1 revenue increase was primarily due to recognition of additional revenue from Merck Technology Transfer agreement

PRODUCT MIX SHIFT - Co attributed higher gross margin to shift in sales toward more profitable products and declines in less profitable, legacy products

LOWER OPERATING EXPENSES - Co said declines in R&D and SG&A expenses were due to lower allocable costs, employee-related costs, stock-based compensation, and consultant fees

Company press release: ID:nGNX13dx1Q

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Product Revenue
$7.19 mln
Q1 Net Income
-$8.70 mln
Q1 Basic EPS
-$0.10
Q1 Operating Income
-$8.04 mln
Q1 Pretax Profit
-$8.67 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the biotechnology & medical research peer group is "buy"

Wall Street's median 12-month price target for Codexis Inc is $7.00, about 163.2% above its May 6 closing price of $2.66

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)