Codexis Inc (NASDAQ:CDXS) Plummets After Q3 2025 Revenue and Earnings Miss
By Mill Chart
Last update: Nov 7, 2025
Codexis Inc (NASDAQ:CDXS) reported financial results for the third quarter of 2025 that fell significantly short of Wall Street's expectations, triggering a sharp decline in its stock price during after-hours trading.
Third Quarter Financial Results Versus Estimates
The company's reported financials for Q3 2025 missed analyst consensus estimates on both the top and bottom lines. The performance highlights a challenging quarter for the enzyme engineering firm.
- Revenue: The company reported revenue of $8.6 million, which was substantially below the analyst estimate of approximately $18.9 million.
- Earnings Per Share (EPS): The non-GAAP EPS came in at -$0.22, a steeper loss than the estimated -$0.15.
The magnitude of the revenue miss, coming in at less than half of what was anticipated, appears to be the primary driver behind the negative market reaction.
Market Reaction and Recent Performance
The immediate market response to the earnings release was decisively negative. Following the announcement, the stock dropped over 21% in after-market trading. This sharp decline erases much of the stock's relative stability over recent weeks, where it had seen modest declines but nothing of this scale. The severe after-hours sell-off suggests investors were caught off guard by the extent of the earnings and revenue shortfall.
Key Announcements from the Quarter
Amid the disappointing financial figures, the company's press release highlighted several strategic developments. The most significant announcement was the signing of a $37.8 million Supply Assurance Agreement with Merck. This multi-year agreement represents a substantial future revenue stream and a validation of Codexis's technology platform for pharmaceutical manufacturing. Additionally, the company has implemented organizational changes designed to streamline its operations and reduce expenses, a move likely aimed at extending its cash runway and improving its path to profitability.
Forward-Looking Estimates
With the Q3 results now public, investor attention will shift to the company's ability to meet future targets. Analyst estimates for the upcoming periods provide a benchmark for performance.
- Q4 2025 Estimates: Analysts are projecting a revenue of $24.8 million and a non-GAAP EPS of -$0.11.
- Full-Year 2025 Estimates: For the entire year, the consensus sales estimate stands at $67.0 million, with an expected non-GAAP EPS of -$0.67.
The newly signed Merck agreement may contribute positively to these future quarters, but the significant Q3 miss raises questions about the near-term predictability of the company's revenue streams.
For a detailed breakdown of historical earnings, future estimates, and analyst revisions, you can review the data on the Codexis earnings estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an offer to solicit any transaction. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
