Evogene Ltd. ((EVGN)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Evogene Ltd.’s recent earnings call paints a picture of a company in transition, focusing on strategic cost reductions and collaborations to leverage its AI technology across pharmaceutical and agriculture sectors. Despite notable revenue declines, the successful asset sales, reduced losses, and strategic initiatives with prominent partners like Google, Bayer, and Corteva suggest a cautiously optimistic future outlook. The sentiment expressed during the call was one of cautious optimism, balancing cost savings against revenue challenges.
Significant Cost Reduction
Evogene Ltd. has made substantial progress in reducing its operating expenses, which decreased to approximately $2.9 million in Q3 2025 from $6.6 million in the same period of 2024. This reduction is a key component of the company’s strategy to streamline operations and is expected to be maintained moving forward.
Income from Asset Sales
The sale of Lavie Bio’s assets and the MicroBoost AI for Ag tech-engine to ICL generated a significant income of approximately $7.9 million in Q3 2025. This move not only provided a financial boost but also aligns with Evogene’s strategic shift towards focusing on its core competencies.
Operating Loss Reduction
Evogene reported a total operating loss of approximately $8.8 million for the first nine months of 2025, a notable improvement from the $15.3 million loss in the same period of 2024. This reduction is primarily due to decreased operating expenses, showcasing the effectiveness of the company’s cost-cutting measures.
Net Income Improvement
The company achieved a net income of approximately $5.2 million in Q3 2025, a significant turnaround from the net loss of $8.2 million in the same period last year. This improvement is largely attributed to income from discontinued operations and decreased operating expenses.
Successful Strategic Collaborations
Evogene’s subsidiary, AgPlenus, has formed strategic collaborations with industry giants Bayer and Corteva. These partnerships focus on developing new herbicides with novel modes of action, highlighting Evogene’s commitment to innovation and collaboration in the agriculture sector.
Advancement in AI Technology
The company is enhancing its ChemPass AI through collaborations, such as the one with Google Cloud. This initiative aims to improve drug and ag-chemical development through advanced multiparameter optimization, underscoring Evogene’s dedication to leveraging AI for technological advancements.
Revenue Decline
Despite these positive developments, Evogene experienced a revenue decline, with revenues for the first nine months of 2025 at approximately $3.5 million, down from $4 million in the previous year. This decrease is primarily due to lower revenue from AgPlenus’ activities.
Reduction in Seed Sales
The company’s revenues for Q3 2025 were approximately $300,000, a decrease from approximately $1.7 million in the same period last year. This decline is mainly attributed to reduced seed sales generated by Casterra.
R&D and Sales Cuts
Research and development expenses for the first nine months of 2025 were approximately $5.9 million, down from $9.8 million in the same period of 2024. Additionally, sales and marketing expenses decreased to approximately $1.1 million from $1.6 million year-over-year, reflecting the company’s focus on cost efficiency.
Forward-Looking Guidance
During the earnings call, Evogene highlighted its strategic transition towards computational chemistry, with significant financial metrics underscoring this shift. The company reported a net income of approximately $5.2 million for Q3 2025, a significant improvement from the net loss of $8.2 million in the same period the previous year. This improvement was largely due to income from discontinued operations, decreased operating expenses, and increased financial income. The company’s cash and short-term bank deposit balance stood at approximately $16 million by the end of the third quarter, reflecting proceeds from asset sales.
In summary, Evogene Ltd.’s earnings call reflects a company in transition, with a focus on strategic cost reductions and collaborations to leverage its AI technology. While revenue challenges persist, the successful asset sales, reduced losses, and strategic partnerships with industry leaders suggest a cautiously optimistic outlook. The company’s commitment to innovation and cost efficiency positions it well for future growth.