Codexis Q4 revenue rises 81% on Merck technology transfer agreement

Codexis

11/03/2026 20:25

Overview

US enzymatic solutions provider's Q4 revenue rose 81% yr/yr, driven by Merck technology transfer agreement in Q4

Company posted Q4 net income, reversing a loss from the prior-year period

Fiscal 2025 revenue grew 19% yr/yr; net loss narrowed from previous year

Outlook

Codexis expects 2026 total revenue between $72 mln and $76 mln

Company expects cash and investments to fund operations through end of 2027

Codexis plans GMP facility retrofit construction to begin in H2 2026, full production by end-2027

Result Drivers

MERCK AGREEMENT - Q4 revenue growth was primarily driven by the completion of a technology transfer agreement with Merck

SALES MIX SHIFT - Higher gross margin was largely due to a shift in sales toward more profitable products and declines in less profitable, legacy products

COST REDUCTIONS - Lower R&D and SG&A expenses in Q4 were driven by reduced employee-related and stock-based compensation costs

Company press release: ID:nGNXRMtMd

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Product Revenue
$5.78 mln
Q4 Net Income
$9.60 mln
Q4 Basic EPS
$0.11
Q4 Operating Income
$10.56 mln
Q4 Pretax Profit
$9.62 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 464.5% above its March 10 closing price of $1.24

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.)