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Codexis (CDXS)
NASDAQ:CDXS
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Codexis (CDXS) AI Stock Analysis

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CDXS

Codexis

(NASDAQ:CDXS)

Rating:46Neutral
Price Target:
$2.50
▼(-6.37% Downside)
Codexis faces substantial financial challenges, with weak profitability and cash flow metrics being the most significant factors. While the earnings call provided some positive insights, including revenue growth and improved margins, the overall financial instability and bearish technical indicators weigh heavily on the stock's score. The valuation remains unattractive due to ongoing losses and the absence of dividends.
Positive Factors
Financial Performance
Codexis reported better-than-expected financial results for 2Q25, including revenues of $15.3 million, up from $8.0 million in the previous year period, and a reduced net loss of $13.3 million or ($0.16) per share versus a net loss of $22.8 million or ($0.32) per share in 2Q24.
Partnerships and Collaborations
Codexis related that it now has over 30 engagements with ECO Synthesis partners at present, up from 5-10 at the start of the year, and the company expects to achieve pilot scale production of GLP-grade siRNA material using the ECO Synthesis Innovation Lab by the end of the year.
Negative Factors
Revenue Expectations
Revenues of $7.5M were 56% lower year-over-year, missing expectations by $2.2M.
Stock Rating
Analyst maintains a Hold rating on CDXS shares as the Company transitions to new products and services and due to the extended period of time before the company's long-range projects mature and begin to create more positive growth metrics.

Codexis (CDXS) vs. SPDR S&P 500 ETF (SPY)

Codexis Business Overview & Revenue Model

Company DescriptionCodexis, Inc. discovers, develops, and sells enzymes and other proteins. It offers biocatalyst products and services; intermediate chemicals products that are used for further chemical processing; and Codex biocatalyst panels and kits that enable customers to perform chemistry screening. The company also provides biocatalyst screening and protein engineering services. In addition, it offers CodeEvolver protein engineering technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes. The company's platform is also used to discover novel biotherapeutic drug candidates for targeted human diseases, as well as for molecular biology and in vitro diagnostic enzymes. It sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe. The company was incorporated in 2002 and is headquartered in Redwood City, California.
How the Company Makes MoneyCodexis generates revenue primarily through the sale of its engineered enzymes and related products, as well as through collaboration agreements and licenses with pharmaceutical and industrial partners. The company's revenue model includes upfront payments, milestone payments, and royalties from product sales associated with its partnerships. Significant collaborations with major pharmaceutical companies contribute to its earnings by allowing Codexis to leverage its technology to enhance drug development processes. Additionally, the company may receive funding through grants and contracts aimed at advancing its research and development efforts.

Codexis Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Codexis, with significant revenue growth, improved margins, and strong demand for the ECO Synthesis platform. However, the company faces challenges in revenue predictability and increased R&D expenses.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Codexis reported Q2 2025 revenue of $15.3 million, up from $8 million in Q2 2024. Operating loss was halved compared to Q2 2024, with a net loss of $13.3 million compared to $23.8 million the previous year.
Improved Product Gross Margin
Product gross margin increased to 72% in Q2 2025 from 45% in Q2 2024, driven by a shift to more profitable products.
ECO Synthesis Platform Demand
The ECO Synthesis platform has over 30 ongoing customer engagements, with expectations of adding several new ligase customers by year-end.
Strong Cash Position
Codexis ended the quarter with $66.3 million in cash, cash equivalents, and investments, expected to fund operations through Q1 2027.
Negative Updates
Revenue Variability
The company experiences variability in revenue due to the unpredictability of Pharma Biocatalysis customers' manufacturing schedules.
Increased R&D Expenses
R&D expenses rose to $13.8 million in Q2 2025 from $11.4 million the previous year, driven by higher headcount and internal reclassification.
Company Guidance
During the Codexis Second Quarter 2025 Earnings Conference Call, the company provided various metrics and guidance reflecting its performance and future outlook. Codexis reported a significant increase in revenue, reaching $15.3 million in Q2 2025, up from $8 million in Q2 2024, driven primarily by increased orders in the Pharma Biocatalysis business. The company's product gross margin improved to 72%, compared to 45% in the previous year, due to a shift towards more profitable products. Operating expenses for research and development increased to $13.8 million, while selling, general, and administrative expenses decreased to $12.39 million. Despite a net loss of $13.3 million, Codexis maintained a strong cash position with $66.3 million, expected to fund operations through Q1 2027. The company reiterated its 2025 revenue guidance of $64 million to $68 million, emphasizing the anticipated growth from its ECO Synthesis platform, which has over 30 ongoing customer engagements and significant interest, particularly in the ligase segment. Codexis is exploring options to expand its production capacity to meet growing demand and is focusing on securing early-phase projects for long-term value creation.

Codexis Financial Statement Overview

Summary
Codexis is facing significant financial challenges, with declining revenues, persistent losses, and increasing leverage. The company's profitability and cash flow metrics indicate operational inefficiencies and financial instability. While there are some minor improvements in certain areas, the overall financial health remains weak.
Income Statement
35
Negative
Codexis has experienced a decline in revenue over the past few years, with a notable drop in 2023. The company has consistently reported negative net profit margins, indicating ongoing profitability challenges. While there was a slight improvement in gross profit margin in the TTM period, the EBIT and EBITDA margins remain negative, reflecting operational inefficiencies.
Balance Sheet
40
Negative
The company's debt-to-equity ratio has increased significantly in the TTM period, suggesting a higher reliance on debt financing. Return on equity is negative, indicating that the company is not generating profits from shareholders' equity. The equity ratio has also decreased, pointing to a weakened financial position.
Cash Flow
30
Negative
Codexis has faced challenges with negative operating and free cash flows, although there was a slight improvement in free cash flow growth in the TTM period. The operating cash flow to net income ratio remains negative, highlighting cash flow issues. The free cash flow to net income ratio is positive, but this is due to both metrics being negative.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue57.16M59.34M70.14M138.59M104.75M69.06M
Gross Profit44.36M43.06M57.33M100.56M82.55M55.31M
EBITDA-53.60M-58.52M-49.28M-23.07M-16.75M-19.37M
Net Income-64.98M-65.28M-76.24M-33.59M-21.28M-24.01M
Balance Sheet
Total Assets138.25M149.01M136.56M250.39M246.38M221.65M
Cash, Cash Equivalents and Short-Term Investments66.33M73.46M65.12M113.98M116.80M150.12M
Total Debt68.98M59.90M16.02M43.64M47.65M24.95M
Total Liabilities82.61M82.08M49.95M105.60M81.99M51.54M
Stockholders Equity55.63M66.93M86.61M144.80M164.39M170.10M
Cash Flow
Free Cash Flow-67.77M-53.72M-57.06M2.98M-28.09M-20.21M
Operating Cash Flow-61.22M-49.41M-52.64M11.28M-14.27M-16.46M
Investing Cash Flow10.07M-56.98M-4.86M-13.58M-21.42M-5.75M
Financing Cash Flow59.30M60.52M8.17M-575.00K3.77M80.81M

Codexis Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.67
Price Trends
50DMA
2.78
Negative
100DMA
2.56
Positive
200DMA
3.36
Negative
Market Momentum
MACD
-0.02
Positive
RSI
42.80
Neutral
STOCH
3.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDXS, the sentiment is Negative. The current price of 2.67 is below the 20-day moving average (MA) of 2.84, below the 50-day MA of 2.78, and below the 200-day MA of 3.36, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 3.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDXS.

Codexis Risk Analysis

Codexis disclosed 50 risk factors in its most recent earnings report. Codexis reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Codexis Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$312.61M322.49%-31.30%36.26%
51
Neutral
$7.83B-0.18-40.10%2.29%21.46%-2.03%
48
Neutral
$174.38M-150.12%10.63%
47
Neutral
$289.66M-32.38%23.24%
46
Neutral
$137.11M-97.49%-100.00%62.82%
46
Neutral
$237.40M-111.00%-6.12%24.99%
45
Neutral
$634.46M-35.02%20.37%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CDXS
Codexis
2.72
-0.18
-6.21%
FHTX
Foghorn Therapeutics
5.41
-2.48
-31.43%
IKT
Inhibikase Therapeutics
1.79
0.40
28.78%
AVIR
Atea Pharmaceuticals
3.60
-0.18
-4.76%
TERN
Terns Pharmaceuticals
7.07
-0.61
-7.94%
NVCT
Nuvectis Pharma
6.65
-0.14
-2.06%

Codexis Corporate Events

Executive/Board ChangesShareholder Meetings
Codexis Stockholders Approve Key Proposals at Annual Meeting
Neutral
Jun 11, 2025

Codexis recently held its Annual Meeting where stockholders voted on several key proposals. David V. Smith and Dennis P. Wolf were elected as directors for a term expiring in 2028. Stockholders also ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved executive compensation on a non-binding basis, and approved an amendment to the 2019 Incentive Award Plan.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025