10-Q · May 13, 2026
Precigen's Q1 2026 report shows a substantial turnaround with revenues exceeding $23 million driven by the recent commercial launch of Papzimeos, resulting in a significant net loss reduction of 85.4% compared to last…
Earnings analysis · 10-Q
PGEN earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Precigen's first meaningful commercial Papzimeos ramp transformed Q2 revenue to $54.978 million from $0.856 million a year earlier and generated $20.071 million of net income, or $0.05 diluted EPS. The resulting 94.9%…
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Precigen's first meaningful commercial Papzimeos ramp transformed Q2 revenue to $54.978 million from $0.856 million a year earlier and generated $20.071 million of net income, or $0.05 diluted EPS. The resulting 94.9% gross margin and 41.2% operating margin are strong, though management cautions that gross margin should normalize after approximately $9 million of pre-launch inventory is sold in Q3 2026. The principal counterweight is working capital: 127-day payment terms and launch-related receivables/inventory drove $61.636 million of six-month operating cash outflow despite reported profitability.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.05
What stood out
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Papzimeos drove $54.1M revenue increase
Q2 revenue rose to $54.978 million from $0.856 million in Q2 2025, an increase of $54.122 million. Product revenue was $53.262 million, with $53.1 million attributed to Papzimeos sales following its August 2025 approval and launch.
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Profitability inflection in Q2
Operating income was $22.642 million, versus an operating loss of $31.764 million a year earlier, producing a 41.2% operating margin. Net income was $20.071 million versus a $26.642 million loss, and diluted EPS was $0.05 versus a $0.09 loss.
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Initial gross margin reached 94.9%
Gross profit was $52.173 million on $54.978 million of revenue, equating to a 94.9% gross margin. Management expects normalized gross margins to stabilize in the high-80% to low-90% range once pre-launch inventory has been sold.
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R&D fell while commercial spending scaled
R&D expense declined $4.206 million, or 36.6%, to $7.282 million, while SG&A rose $6.116 million, or 37.9%, to $22.249 million as commercialization activities expanded. The expense mix reflects the shift from pre-approval manufacturing R&D to commercial inventory and selling costs.
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Management sees at least one year of runway
Cash, cash equivalents and investments totaled $38.7 million at June 30, 2026. Management believes this liquidity plus anticipated Papzimeos receivable collections will support operations for at least one year from the filing date.
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Exclusivity supports commercial opportunity
Papzimeos received seven years of orphan-drug exclusivity through August 14, 2032. Management estimates approximately 27,000 adult U.S. patients are living with recurrent respiratory papillomatosis.
What to watch
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Receivables drove substantial operating cash use
Operating cash flow was negative $61.636 million in the first six months of 2026 despite $12.142 million of net income, as working-capital changes consumed $83.2 million. Papzimeos customer payment terms are 127 days, increasing collections and liquidity risk during launch.
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Debt creates interest-rate and cash burden
Long-term debt totaled $93.9 million at June 30, 2026, and contractual cash interest payable was $35.024 million. A 100-basis-point increase in SOFR would raise annual interest expense by approximately $1.0 million.
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Revenue is concentrated in Papzimeos
Papzimeos represented $53.1 million of the company's $54.978 million Q2 revenue. Management expects the majority of foreseeable future revenue to come from Papzimeos, leaving results highly dependent on adoption, payer coverage, and collections for one product.
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Gross margin should normalize after Q3
Management expects to finish selling pre-launch inventory in Q3 2026 and says gross margins will decline from current levels as that inventory is exhausted, stabilizing only in the high-80% to low-90% range. Existing pre-launch inventory represents approximately $9 million of estimated future net revenue.
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Sustained cash generation remains unproven
The company reported an accumulated deficit of $2.3 billion as of June 30, 2026 and states it may need debt, royalty, equity, or strategic financing until it regularly generates positive operating cash flow. It also had $5.4 million of unincurred third-party R&D commitments.
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No risk-factor updates versus annual report
No material risk-factor additions or changes were reported versus the 2025 Annual Report. The filing explicitly states there were no additional material updates to risk factors.
Management's outlook
No numerical revenue or EPS guidance was provided in the 10-Q. Management expects Papzimeos gross margins to stabilize in the high-80% to low-90% range after pre-launch inventory is sold, which it expects to occur in Q3 2026; it also states existing liquidity plus anticipated Papzimeos receivable collections should fund operations for at least one year from the filing date.
Earlier filings 4
10-K · March 25, 2026
Precigen transitioned to a commercial-stage company after the FDA granted full approval to Papzimeos in August 2025 and saw a clear revenue and margin inflection in H2 2025. Revenue accelerated to multi‑million dollar…
10-Q · August 14, 2024
Precigen reported quarterly revenue of $717,000 for the three months ended June 30, 2024, a 59.4% decline versus $1,767,000 in Q2 2023, and GAAP net loss worsened to $(58,792,000) versus $(20,319,000) a year earlier.…
10-K · March 19, 2024
Precigen emphasizes its proprietary platforms (UltraCAR-T, AdenoVerse, ActoBiotics) and internal manufacturing capability (UltraPorator) while prioritizing disciplined portfolio management and rapid advancement of lead…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.