Cibus, Inc. (NASDAQ: CBUS) Q2 2025 Earnings Call | 08/15/2025

Cibus, Inc. reported its Q2 2025 financial results and business updates, emphasizing progress toward near-term revenue generation through its rice herbicide tolerance traits (HT1, HT3) and partner-funded sustainable ingredients programs, including biofragrances. The company is streamlining operations to focus on these priorities while advancing a broader trait pipeline through partnerships.

Key Highlights

1. Commercial Progress

   • Rice Herbicide Tolerance Traits (HT1, HT3):

     • Represent a potential $200 million in annual royalty revenue in the U.S. and Latin America, with targeted launches in Latin America (2027) and the U.S. (2028).

     • Completed edits and delivered stacked HT3 traits to a second U.S. partner. Signed a new agreement with Semilano, a Colombian rice seed company, marking the fifth customer in the Americas.

     • Field trials are progressing as planned, with initial trait validation trials in Latin America expected later in 2025 and HT trait deliveries to customers by year-end.

     • Cibus’ Rapid Trait Development System (RTDS) enables trait integration into elite germplasm in 12–15 months, driving customer interest by accelerating trait adoption.

   • Biofragrances and Sustainable Ingredients:

     • On track for nominal revenues in late 2025, with commercial expansion in 2026. Successfully completed first-stage scale-up of two biofragrance products in Q2.

     • Strong interest from the consumer packaged goods industry for bio-based products as alternatives to expensive natural or synthetic processes.

     • Sustainable ingredients programs, supported by funding partners, are expected to scale in the late 2020s, with potential in non-allergenic crops (e.g., peanuts, wheat).

2. Broader Trait Pipeline

   • Canola:

     • HT2 field trials show promising tolerance and efficacy, attracting partner interest.

     • Sclerotinia resistance program offers a multi-layered approach to address a costly canola challenge, drawing significant partner attention.

   • Soybean: Successfully edited soybean cells for HT2, targeting a 125 million-acre market with $10–15 per acre in potential royalties. Partnership discussions are ongoing.

   • Alfalfa: FDA cleared the altered lignin alfalfa trait, enabling a seed company partner to offer gene-edited varieties with improved digestibility and harvest flexibility.

   • Future Opportunities: Nutrient use efficiency (NUE) and non-allergenic crops represent expanding trait categories, pursued through partner-funded projects.

3. Regulatory Advancements

   • Global Progress: Positive regulatory determinations in Ecuador, North/South America, India, and parts of Asia support global trait commercialization. USDA APHIS designated multiple Cibus traits as non-regulated.

   • EU Trilogue: Discussions extended beyond June 2025 but are progressing under the Danish EU Council presidency, with resolution expected within six months. This will enable gene-edited crop commercialization in the EU by late 2027, opening a 100 million-acre market.

   • UK: Field trials for pod shatter resistance in winter oilseed rape are nearing completion (harvest in August 2025), following successful legislation implementation.

4. Financial Performance

   • Cash Position: $36.5 million in cash and cash equivalents as of June 30, 2025, bolstered by $27.5 million from a June public offering. Expected to fund operations into Q2 2026.

   • Revenue: $933,000 in Q2 2025 (up from $838,000 in Q2 2024), driven by partner-funded programs.

   • R&D Expenses: $12.2 million (down from $13 million in Q2 2024) due to cost-saving initiatives.

   • SG&A Expenses: $6.6 million (down from $9.3 million in Q2 2024), reflecting streamlined operations.

   • Net Loss: $26.6 million (improved from $28.5 million in Q2 2024).

   • Cost Reduction: A reduction in force (RIF) in July 2025 will incur $0.5 million in one-time Q3 charges but reduce annual net cash usage to ~$30 million by 2026.

5. Operational Strategy

   • Streamlined focus on rice HT traits and biofragrances to maximize near-term revenue while pursuing partner-funded development for other traits (canola, soybean, alfalfa).

   • Disciplined capital allocation extends cash runway while positioning Cibus to capture significant revenue starting in 2026.