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CI

Cibus, Inc. (CBUS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $0.933M and diluted EPS was -$0.61; both missed S&P Global consensus (Revenue: $1.146M*, EPS: -$0.517*) as the company remains pre-commercial with nominal partner-funded revenues .
  • Management reaffirmed commercialization timelines for Rice HT1/HT3 (Latin America initial launch 2027; U.S. 2028) and expects biofragrance nominal revenues in 2025 with commercial ramp in 2026 .
  • Operational focus streamlined to Rice herbicide tolerance and partner-funded/supported programs; annual net cash usage targeted to ~$30M by 2026 and cash runway extended into Q2 2026 following a $27.5M June offering .
  • Regulatory tailwinds continued: Ecuador equivalence for HT1/HT3 Rice traits, USDA-APHIS “not regulated” for Canola HT2, and EU NGT trialogue advancing with expected final text in the next six months; management views EU momentum as a major catalyst .
  • New collaboration in Rice with Colombian seed company Semillano and delivery of HT3 lines to an existing U.S. customer reinforce customer engagement ahead of 2027–2028 launches .

What Went Well and What Went Wrong

What Went Well

  • Signed a new Rice collaboration with Semillano (Colombia) and delivered HT3 lines to an existing U.S. Rice customer, building momentum toward commercial validation trials later in 2025 .
  • Regulatory progress: Ecuador determined HT1/HT3 Rice traits are equivalent to conventional breeding; USDA-APHIS designated Canola HT2 “not regulated”; California authorized gene-edited Rice field research .
  • Management reiterated cost discipline and runway: cash of $36.5M at quarter-end and net cash usage targeted to ~$30M by 2026, aided by June equity raise of $27.5M .
  • Quote: “We remain laser-focused on our core priorities: advancing our Rice herbicide tolerance traits and our partner-funded and/or supported sustainable ingredients program” — Interim CEO Peter Beetham .

What Went Wrong

  • Missed consensus on revenue and EPS given limited scale of current partner-funded revenues and a still pre-commercial profile (Revenue $0.933M vs $1.146M*; EPS -$0.61 vs -$0.517*) .
  • Net loss remained substantial at -$26.6M; royalty liability interest expense persisted at -$8.7M, highlighting a high fixed-cost burden pre-commercialization .
  • Non-operating income turned nominal versus prior year due to warrant fair value adjustments; SG&A and R&D, while lower YoY from cost actions, still outweighed nominal revenues .
  • Analysts pressed on EU timing and cash burn trajectory, with management indicating one-time RIF charges (~$0.5M) in Q3 and an early-2026 target for reaching ~$30M net annual cash usage .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$0.838 $1.034 $0.933
Net Loss ($USD Millions)$(28.478) $(49.392) $(26.558)
Diluted EPS ($USD)$(1.14) $(1.34) $(0.61)
R&D Expense ($USD Millions)$12.993 $11.799 $12.228
SG&A Expense ($USD Millions)$9.327 $9.856 $6.651
Cash and Equivalents ($USD Millions)—$23.587 $36.463

Estimates comparison (S&P Global consensus vs actuals):

MetricConsensus (Q2 2025)*Actual (Q2 2025)Surprise vs Consensus*
Revenue ($USD Millions)$1.146*$0.933 Miss: -$0.213M (-18.6%)*
Diluted EPS ($USD)$(0.517)*$(0.61) Miss: -$0.093*

Values with asterisks retrieved from S&P Global. Surprise values computed from S&P Global consensus and reported actuals.

KPIs and operating drivers:

KPIQ2 2024Q1 2025Q2 2025
Royalty Liability Interest Expense - Related Parties ($USD Millions)$8.749 $8.377 $8.668
Non-operating (Expense) Income, Net ($USD Millions)$1.580 $0.439 ~$0.000
Weighted Avg Shares (Class A)21.852M 35.053M 41.619M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayFunding horizonInto late Q3 2025 (4Q24/1Q25 commentary) Into Q2 2026 Raised/extended
Net Annual Cash Usage2026~20% monthly cash use reduction by early 2025 (run-rate context) Reduce net annual cash usage to ~$30M by 2026 Introduced explicit target
Biofragrance Revenues2025–2026Nominal revenues in 2025; commercialization plans underway Nominal revenues in 2025; commercial ramp in 2026 (initial material handoffs 2025, royalties from 2026) Maintained timing; clarified ramp
Rice HT1/HT3 LaunchLATAM 2027; U.S. 2028Targeted LATAM 2027–2028; U.S. 2028 Confirmed: LATAM initial 2027; U.S. 2028; India/Asia (ex-China) 2030 Maintained; added regional timing detail
EU NGT Legislation2025–2026Trialogue starting (Council mandate) Expect resolution within ~6 months; commercialization ~2 years post-final text (seed variety registration) Timeline refined
RIF One-time ChargesQ3 2025—~$0.5M one-time charges expected in Q3 2025 New disclosure

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Rice HT1/HT3 commercializationAgreements with 4 seed companies; field trials incl. stacked traits; timelines outlined Added Semillano collaboration; delivered HT3 lines to U.S. customer; first LATAM validation trials expected in late 2025 Accelerating customer engagement
Biofragrance programPartner-funded efforts; nominal revenues expected 2025 First-stage scale-up completed; nominal revenues 2025, royalty model in 2026 with one anchor customer Moving toward initial revenue
EU regulatory (NGT)Council mandate enabling trialogue Expect final text within 6 months; post-text implementation ~2 years; field trials in EU likely next year Visibility improving; catalyst nearing
Canola HT2 & SclerotiniaPositive greenhouse/field results; multi-MOA approach; USDA-APHIS not regulated for some traits HT2 field trials positive; continued multi-MOA progress; partner interest growing Validating efficacy; partner pipeline
Cost discipline & runway20% monthly cash use reduction targeted early 2025; cash sufficiency late Q3 2025 RIF in July; runway into Q2 2026; net annual cash usage target ~$30M by 2026 Improved runway and targets
Soybean platformSingle-cell edits achieved; 125M accessible acres; royalties $10–$15/acre discussed Further platform build; multi-trait applicability; ongoing partner discussions Foundational progress; partner-led path

Management Commentary

  • “Our Rice traits are progressing on schedule toward targeted initial launches in Latin America beginning in 2027 and expanding to the United States in 2028… These focused efforts, combined with our cost streamlining initiatives… are expected to reduce our annualized cash usage to approximately $30 million by 2026” — Peter Beetham .
  • “Revenue for the second quarter was $933,000… R&D… $12.2 million… SG&A… $6.6 million… Net loss… $26.6 million… We expect this RIF to result in related one time charges of approximately $500,000 in the third quarter” — Carlo Broos .
  • “Recently, we signed an agreement with Semilano… marking our fifth customer in The Americas… we expect to initiate our first trait validation trials in Latin America later this year” — Peter Beetham .
  • “We remain on track for nominal revenues from our biofragrance products beginning later this year, with targeted commercial expansion ramping in 2026” — Peter Beetham .

Q&A Highlights

  • EU NGT timing: Management expects final text within ~6 months; implementation and commercialization in EU to follow ~2 years later, with gene-edited field trials likely to begin next year .
  • Cash burn and RIF: One-time ~$0.5M charge in Q3; target net annual cash usage ~$30M by 2026, with runway extended into Q2 2026 post offering .
  • Biofragrance revenue path: Nominal 2025 revenues from material handoffs; royalty model begins in 2026, initially centered on a single anchor customer, with expansion opportunities later .
  • Canola programs: HT2 field trials showing promising results and multi-MOA Sclerotinia resistance continues to attract partner interest .
  • Differentiation of RTDS: Single-cell, non-transgenic edits enabling complex trait stacking and regulatory advantages; management emphasized “no one else does what we do” .

Estimates Context

  • Q2 2025 results missed S&P Global consensus: Revenue $0.933M vs $1.146M* and EPS -$0.61 vs -$0.517*; ongoing pre-commercial status and measured partner-funded activity likely underpin the gap while timelines to initial royalties (biofragrance 2026; Rice 2027/2028) were reaffirmed .
  • Near-term estimate revisions may need to reflect continued nominal revenue profiles in 2025 and the shift of meaningful royalties into 2026–2028, alongside lower OpEx from streamlining and RIF .

Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • Pre-commercial earnings profile continues; expect nominal revenues in 2025 and more visible royalty ramp in 2026 (biofragrance) and 2027–2028 (Rice), which should reshape the P&L trajectory over time .
  • The extended runway (into Q2 2026) and targeted ~$30M net cash usage by 2026 reduce financing risk in the near term, improving execution capacity through initial revenue milestones .
  • EU NGT progress is a structural catalyst; final text within ~6 months and subsequent implementation could unlock a large greenfield trait market in Europe and harmonize global trade/cultivation acceptance .
  • Customer traction is building (Semillano, multiple Rice and Canola partners), with tangible deliverables (HT3 lines delivered, validation trials planned), de-risking commercialization steps ahead of 2027–2028 .
  • For trading: near-term print risks remain given small revenue base; stock likely more sensitive to regulatory milestones, partnership announcements, and cost execution than quarterly revenue variance.
  • Medium term: thesis centers on RTDS/Trait Machine differentiation, multi-crop pipeline optionality (Canola, Soybean, Wheat), and royalty scalability across large acreage crops, contingent on partner-led commercialization .
  • Watch Q3 updates: RIF charges, EU progress, LATAM validation trials commencement, and any incremental biofragrance customer developments for de-risking 2026 revenue ramp .