Codexis (NASDAQ:CDXS) reported second-quarter 2026 revenue of $14.9 million, compared with $15.3 million in the prior-year period, as the company highlighted improved performance in its biocatalytic enzyme business and continued development of its ECO Synthesis platform for siRNA manufacturing.
Net loss narrowed to $12 million from $13.3 million a year earlier. Product gross margin was 73% during the quarter, which Chief Financial Officer and Chief Business Officer Georgia Erbez said reflected higher sales of more profitable products. The company now expects full-year gross margins in the high 60% range and reaffirmed its 2026 revenue outlook of $72 million to $76 million.
ECO Synthesis Progress and Manufacturing Plans
At the TIDES US conference in May, Codexis presented data showing full-length siRNA synthesis with control over phosphorothioate stereochemistry. Chief Scientific Officer Stefan Lutz said traditional chemical manufacturing produces complex mixtures that can require extensive downstream processing, while the company’s engineered enzymes can produce molecules with defined stereochemical configurations.
Lutz said stereochemical control could improve product quality, potentially enhance therapeutic potency and simplify manufacturing by reducing purification complexity. The company is continuing biological studies of different stereochemical configurations and said it plans to discuss data related to the biological impact of stereochemical control at TIDES Europe later this year.
Codexis also introduced “starterless” ECO Synthesis, an early-stage capability that initiates RNA synthesis from a single nucleotide rather than a chemically synthesized starter oligonucleotide. Lutz said the approach could lower costs and simplify manufacturing, particularly for fragment-based assembly methods used to produce full-length siRNA therapies.
According to Senior Vice President of Sales and Marketing Britton Jimenez, the stereochemistry and starterless capabilities have generated positive customer interest. He said several companies have advanced discussions regarding potential use of stereochemical control in their therapeutic pipelines, while some past customers have become more interested in evaluating the company’s technology following the introduction of starterless synthesis.
CDMO Engagements and Scale-Up Targets
Jimenez said Codexis has contracts with three contract development and manufacturing organizations, or CDMOs, and has completed small-scale technology transfers into each partner’s facilities. One CDMO has completed its assessment and is now in negotiations with Codexis for a long-term commercial agreement. The other two partners are conducting evaluations and are at earlier stages.
Moore said the company’s focus is on industrializing ECO Synthesis and supporting customer adoption. Codexis currently produces material at the hundreds-of-grams scale and expects to reach approximately 500 grams of siRNA production through fragment ligation by the end of 2026. Before its GMP facility becomes operational, the company aims to reach kilogram-scale production.
The company is proceeding with plans to construct a GMP manufacturing facility that it expects will provide material for investigational new drug filings and clinical trials. Codexis said it plans to submit its building permit application shortly and has ordered manufacturing equipment. Construction is expected to begin after permit approval, with the project estimated to cost about $25 million.
Moore said Codexis believes its technology can ultimately be scaled further through partnerships. She cited the possibility that large cardiovascular siRNA trials could create constraints in current industry manufacturing capacity over the next several years, though the timing and extent of that demand depend on clinical trial outcomes.
Biocatalysis Business Shows Renewed Activity
Codexis said its small-molecule biocatalysis business remains stable and profitable. The company supports 14 commercially approved products dependent on its enzymes, including four products that received regulatory approvals in 2026. Another product received a label expansion that significantly increased its market potential, Jimenez said.
The company also reported 15 biocatalysis programs in Phase II or Phase III clinical development, with data readouts anticipated from seven clinical trials during the next two years. Erbez said the business had seen few approvals over the prior two years but is now beginning to benefit from maturation of its pipeline.
While noting that customer purchasing patterns can be uneven because some customers stockpile products and others use steadier manufacturing schedules, Erbez said Codexis is seeing positive trends. She said the company has historically expected the business to grow at a high-single-digit rate over five to seven years as additional programs receive approval.
Financing Extends Cash Runway
Research and development expense declined to $11.7 million from $13.8 million in the prior-year quarter, while selling, general and administrative expense fell to $10.9 million from $12.3 million. Erbez attributed the decreases primarily to lower employee-related costs, reduced spending on outside services and lab supplies, lower stock-based compensation, and reduced headcount.
Codexis ended the second quarter with $54.9 million in cash equivalents and short-term investments, down from $78.2 million at the end of 2025. Following the quarter’s close, the company completed an equity financing that generated approximately $25 million in net proceeds, producing a pro forma cash balance of roughly $79.8 million.
Erbez said current cash is expected to fund planned operations and capital expenditures through 2028, including expenses associated with building the GMP facility. Moore said the company’s remaining 2026 priorities include beginning facility construction, advancing toward 500-gram pilot-scale production, expanding a CDMO scale-up partnership, securing an ECO Synthesis raw-material supply chain, and meeting its revenue and margin objectives.
About Codexis (NASDAQ:CDXS)
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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