Evogene Q2 2026 Earnings: Net Loss Narrows Despite Lower Revenue

Evogene Ltd. (NASDAQ: EVGN) reported Q2 2026 revenue of approximately $0.35 million, down from $0.53 million a year earlier, while basic and diluted loss per share narrowed to $0.14 from $0.62. Net loss fell to $1.77 million, but operating loss was nearly unchanged because lower operating expenses were largely offset by weaker gross profit. The quarter also reflected the wind-down of non-core operations and continued investment in Evogene’s AI-driven computational chemistry platform.

Core Earnings Data

Revenue declined about 35% year over year, mainly because Evogene’s agreement with Bayer through AgPlenus concluded in May 2026. Gross profit fell more sharply as cost of revenue increased to $0.21 million from $0.14 million despite the lower sales base.

Operating expenses decreased about 10%, led by lower research and development spending at Casterra. However, most of that benefit was absorbed by the reduction in gross profit, leaving the operating loss only modestly lower.

All figures are in U.S. dollars. The 2025 comparative results were reclassified to reflect operations now reported as discontinued.

Pharmaceutical Programs Expanded as Non-Core Activities Wound Down

Evogene added four drug-development collaborations since the beginning of 2026, bringing its total number of active collaborations to six. Two programs completed the initial Hit Identification stage of the company’s ChemPass AI discovery process and are moving toward subsequent development stages. Evogene said it retains commercial rights to discoveries produced through these programs, although no related future revenue was quantified.

The company’s internal drug-discovery program completed Hit-to-Lead work and entered Lead Optimization. In agriculture, its crop-protection program targeting the fungal disease Septoria is approaching the completion of Lead Optimization, with synthesized molecules undergoing biological testing ahead of greenhouse and field trials.

Evogene also continued to expand ChemPass AI. Autonomous AI agents were integrated into its workflow in June. In subsequent updates, the company announced an Antifungal Potency Predictor in July and said its searchable virtual chemical space had expanded from approximately 36 billion to 110 billion molecules by August.

At the same time, Evogene further reduced its non-core operations. Lavie Bio is no longer operating after most of its assets were sold to ICL, while Biomica stopped ongoing operations following the licensing of BMC128 to Lishan Pharmaceuticals. Biomica’s results were classified as discontinued operations beginning in Q2 2026. Casterra has also narrowed its activities and now operates exclusively in Brazil.

Net Loss Narrowed Mainly Below the Operating Line

The quarter’s net-loss improvement was substantially larger than the change in core operating performance. Gross profit declined by $0.26 million, almost offsetting the $0.31 million reduction in operating expenses. As a result, operating loss narrowed by only $49,000.

The larger bottom-line improvement came from financing and discontinued operations. Evogene recorded $0.97 million of net financing income in Q2 2026, compared with $0.33 million of net financing expense a year earlier. The company attributed the change mainly to the accounting and revaluation of warrants. Loss from discontinued operations also fell to $0.18 million from $1.67 million as spending at Lavie Bio and Biomica declined.

These factors helped continuing-operations loss narrow to $1.59 million from $3.01 million and total net loss fall by approximately $2.91 million. The results therefore show significant progress at the net-income level, but only limited improvement in operating loss.

Cash Flow and Balance Sheet

Consolidated operating cash use decreased to $1.97 million in Q2 from $2.30 million a year earlier. The composition was less favorable for the continuing business: cash used in continuing operating activities rose to $1.93 million from $1.15 million, while cash used by discontinued operations fell to $46,000 from $1.15 million.

For the first six months of 2026, net operating cash outflow was $4.93 million, compared with $7.48 million in the prior-year period. Cash and cash equivalents ended June at $9.32 million, down from $12.96 million at the end of 2025. Evogene also reported raising approximately $11.1 million in new capital since the beginning of 2025.

2026 Cash Usage Guidance

Evogene expects full-year 2026 cash usage of approximately $8.5 million to $9.5 million. That would be about 34% to 41% lower than the roughly $14.4 million used in 2025, reflecting workforce reductions, portfolio changes, and lower operating expenses.

The company is targeting further reductions in 2027 but did not provide a quantitative target. Its workforce declined from 117 employees in December 2024 to 38 in August 2026 as resources were concentrated on computational chemistry and selected pharmaceutical and agricultural programs.

Risks Investors Should Monitor

• A small and declining revenue base: Quarterly revenue fell about 35%, with the decrease tied mainly to the conclusion of the AgPlenus agreement with Bayer. First-half revenue was also affected by lower Casterra seed sales compared with 2025.
• Higher cash use in continuing operations: Consolidated operating cash outflow improved, but cash used by continuing operations increased year over year. Further progress depends on the company delivering its planned cost reductions while advancing core programs.
• Early-stage commercialization: Evogene has expanded its collaborations and advanced several discovery programs, but the programs remain in development stages. The timing and amount of any future commercial revenue were not provided.
• Warrant-related accounting volatility: Warrant inducement expenses and liability revaluations produced substantial financing gains and expenses during the first half. These non-operating movements can create significant period-to-period changes in reported net loss.

Conclusion

Evogene’s Q2 2026 net loss narrowed considerably as financing results improved and losses from discontinued operations declined. Core operating progress was more limited: revenue and gross profit fell, largely offsetting lower expenses. The next points to monitor are cash use in the continuing business, advancement of the six pharmaceutical collaborations and internal pipeline, and whether the narrower operating structure can support the company’s 2026 cash-usage target.

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