Precigen reported total revenue of $2.92 million for the third quarter of 2025, a 68% increase from $1.73 million in the same period last year. The jump was driven by the recognition of deferred revenue from the termination of an exclusive channel collaboration agreement and a 2.0 million increase in product and service revenue tied to the launch of its first FDA‑approved therapy for adult recurrent respiratory papillomatosis (PAPZIMEOS). The company’s revenue beat consensus estimates of $0.5 million to $0.9 million by a margin of roughly 224%.
Net loss for the quarter widened to $325.3 million, or $(1.06) per share, compared with a $24 million loss, or $(0.09) per share, in Q3 2024. The larger loss is largely attributable to a $111.5 million non‑cash charge related to warrant liabilities and a $179.0 million deemed dividend on preferred stock, both of which are one‑time accounting items. When these charges are excluded, the loss attributable to common shareholders would have been $-0.11 million, indicating that operating performance was largely unchanged from the prior year.
Operating expenses rose to $37.40 million, up from $22.21 million in Q3 2024. The increase is driven by a $14.2 million rise in SG&A expenses, reflecting a 144% jump in commercial readiness costs as Precigen ramps up infrastructure for PAPZIMEOS. Research and development costs also climbed, but the bulk of the expense growth is linked to the company’s aggressive commercialization strategy.
Management emphasized that the launch of PAPZIMEOS is underway and that the company’s cash position of $123.6 million, bolstered by a new $100 million senior secured term loan, should fund operations through cash‑flow break‑even. President and CEO Helen Sabzevari highlighted the therapy’s unique market position and strong early demand, while CFO Harry Thomasian Jr. noted that the company is confident its current cash will support the launch and early growth.
Following the earnings announcement, Precigen’s shares fell 3.98% in after‑hours trading. The decline was driven by investor concern over the significant EPS miss, which, despite being largely driven by non‑cash items, outweighed the positive revenue surprise.
Looking ahead, Precigen remains focused on scaling PAPZIMEOS revenue to reach cash‑flow break‑even by the end of 2026. The company’s guidance signals confidence in the therapy’s commercial potential, but it also acknowledges the need to manage high operating expenses and the impact of one‑time accounting charges on short‑term profitability.
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