Co‑Diagnostics reported its third‑quarter 2025 results on November 13, 2025, with total revenue of $100,000—an 83% year‑over‑year decline from $600,000 in Q3 2024—and a net loss of $5.89 million, or $0.16 per share. The company’s earnings per share beat the consensus estimate of $-0.19, a margin that reflects disciplined cost management amid a steep revenue drop. However, revenue fell far short of the $300,000 consensus estimate, underscoring a significant shortfall in product sales.
Revenue for the quarter was driven almost entirely by product sales, with no grant revenue to offset the decline. The 83% YoY drop is largely attributable to the timing of grant revenue recognition and a reduction in legacy lab‑based PCR test sales. Sequentially, revenue fell 50% from $200,000 in Q2 2025, indicating a continuing downward trend as the company transitions away from its legacy product line.
Operating expenses totaled $7.13 million, with research and development costs of $4.48 million and sales and marketing expenses of $0.57 million. The company maintained a tight expense profile, but the high R&D spend reflects ongoing investment in the Co‑Dx PCR platform. Operating margin contracted from 10.2% in the prior year to 9.9% in Q3 2025, a compression driven by the revenue decline and the need to fund platform development.
Cash and cash equivalents stood at $11.44 million, while marketable securities were reported at $26.81 million, giving the company $21.5 million in liquid assets. The liquidity position supports continued investment in the Co‑Dx platform and associated pipeline tests, but also highlights the need for additional financing to bridge the gap between current cash flow and future capital requirements.
Management emphasized the strategic shift toward the portable Co‑Dx PCR platform, international joint ventures in Saudi Arabia and India, and the launch of an AI business unit. CEO Dwight Egan noted that the company is focused on meeting 2025 development milestones and securing additional funding through equity and debt offerings. The company did not provide explicit guidance for the next quarter, leaving investors uncertain about near‑term revenue recovery.
Investors reacted negatively to the earnings, citing the revenue miss as the primary concern. While the company beat EPS expectations, the sharp decline in top line and lack of forward guidance dampened confidence in the company’s ability to achieve profitability in the near term. The market’s focus on revenue recovery reflects the broader challenge of transitioning from legacy products to a new, high‑investment platform.
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