Precigen Revenue Plunges 43% Amid Continued R&D Focus

TL;DR

**PGEN's revenue cratered 43%, signaling deep trouble for this cash-burning biotech; stay away until they show a path to profitability.**

AI Summary

PRECIGEN, INC. reported a significant decrease in total revenue for the three months ended June 30, 2025, falling to $1.2 million from $2.1 million in the prior-year period, representing a 42.9% decline. For the six months ended June 30, 2025, total revenue also decreased to $2.4 million from $4.1 million, a 41.5% reduction. Product revenue for the quarter dropped from $1.8 million to $1.0 million, while service revenue decreased from $0.3 million to $0.2 million. The company continues to operate at a net loss, reflecting its status as a clinical-stage biotechnology firm with substantial R&D expenses. Key business changes include a continued focus on its oncology pipeline, with no major new revenue streams identified in this period. Risks remain high due to the inherent uncertainties of drug development, regulatory approvals, and the need for significant capital to fund operations. The strategic outlook emphasizes advancing its therapeutic candidates, though specific milestones or timelines for profitability are not detailed in the provided data.

Why It Matters

This substantial revenue decline signals ongoing challenges for Precigen, a clinical-stage biotech, impacting investor confidence and potentially future funding rounds. For employees, it could indicate a need for cost-cutting measures or a slower pace of growth. Customers, primarily partners or research institutions, might see a shift in the company's focus or capacity. In the broader market, this highlights the volatile nature of early-stage biotechnology investments, where R&D costs often far outstrip early commercialization efforts, putting pressure on smaller players to secure capital against larger, more diversified competitors.

Risk Assessment

Risk Level: high — The risk level is high due to a significant 42.9% decrease in total revenue for the quarter ended June 30, 2025, falling to $1.2 million from $2.1 million. This substantial decline, coupled with the company's status as a clinical-stage biotechnology firm, indicates ongoing reliance on external funding and high burn rates without clear near-term profitability.

Analyst Insight

Investors should exercise extreme caution and consider avoiding PGEN given the sharp revenue decline and lack of profitability. Monitor future filings for any signs of successful clinical trial progression or new strategic partnerships that could provide a clearer path to commercialization and revenue growth.

Financial Highlights

revenue

$1.2M

revenue Growth

-42.9%

Revenue Breakdown

Key Numbers

• $1.2M — Total Revenue (Q2 2025) (Decreased 42.9% from $2.1M in Q2 2024)
• $2.4M — Total Revenue (YTD 2025) (Decreased 41.5% from $4.1M in YTD 2024)
• 42.9% — Quarterly Revenue Decrease (Significant year-over-year decline for Q2 2025)
• 41.5% — Year-to-Date Revenue Decrease (Substantial decline for the first six months of 2025)
• $1.0M — Product Revenue (Q2 2025) (Down from $1.8M in Q2 2024)
• $0.2M — Service Revenue (Q2 2025) (Down from $0.3M in Q2 2024)

Key Players & Entities

• PRECIGEN, INC. (company) — filer of the 10-Q
• $1.2 million (dollar_amount) — total revenue for Q2 2025
• $2.1 million (dollar_amount) — total revenue for Q2 2024
• 42.9% (percentage) — decrease in total revenue Q2 2025 vs Q2 2024
• $2.4 million (dollar_amount) — total revenue for six months ended June 30, 2025
• $4.1 million (dollar_amount) — total revenue for six months ended June 30, 2024
• 41.5% (percentage) — decrease in total revenue for six months ended June 30, 2025 vs 2024
• $1.0 million (dollar_amount) — product revenue for Q2 2025
• $1.8 million (dollar_amount) — product revenue for Q2 2024
• $0.2 million (dollar_amount) — service revenue for Q2 2025

FAQ

Risk Factors

• Sustained Net Losses [high — financial]: The company continues to operate at a net loss, typical for a clinical-stage biotechnology firm. This necessitates significant ongoing capital to fund research and development and general operations, posing a financial risk.
• Drug Development Uncertainty [high — regulatory]: As a clinical-stage biotechnology company, PRECIGEN, INC. faces inherent uncertainties in drug development, including the success of clinical trials and the lengthy process of obtaining regulatory approvals.
• Dependence on Future Funding [high — financial]: The company's ability to continue as a going concern is dependent on its ability to secure additional financing. The substantial R&D expenses require significant capital, and failure to secure this funding poses a material risk.
• Competitive Landscape [medium — market]: The biotechnology sector is highly competitive, with numerous companies developing therapies in similar areas, particularly oncology. This competition can impact market penetration and pricing power.

Industry Context

PRECIGEN, INC. operates in the highly competitive pharmaceutical preparations sector, specifically focusing on biotechnology and drug development. The industry is characterized by long development cycles, significant capital requirements for research and development, and stringent regulatory oversight from bodies like the FDA. Success is heavily dependent on innovation, clinical trial outcomes, and securing intellectual property.

Regulatory Implications

As a clinical-stage biotechnology company, PRECIGEN, INC. is subject to rigorous regulatory scrutiny. The success of its therapeutic candidates hinges on navigating complex FDA approval processes, which involve extensive clinical trials and data submission. Any delays or failures in these regulatory pathways pose significant risks to the company's future revenue and viability.

What Investors Should Do

1. Monitor R&D Pipeline Progress
2. Assess Funding Needs and Sources
3. Evaluate Competitive Positioning

Glossary

Clinical-stage biotechnology firm

A company focused on developing new drugs or therapies that are currently undergoing human testing (clinical trials) to assess safety and efficacy. (Explains PRECIGEN, INC.'s business model and why it incurs substantial R&D expenses and operates at a net loss.)

R&D expenses

Research and Development expenses, which are costs incurred by a company in the process of developing new products or services, or improving existing ones. (A primary driver of PRECIGEN, INC.'s operating costs and net losses, characteristic of its stage of development.)

Going concern

A business assumption that a company will continue to operate for the foreseeable future, without the intention or need for liquidation or to otherwise cease trading. (Highlights the financial risk if the company cannot secure sufficient funding to sustain its operations.)

Year-Over-Year Comparison

PRECIGEN, INC. reported a significant year-over-year decline in revenue for the second quarter of 2025, with total revenue falling 42.9% to $1.2 million from $2.1 million in Q2 2024. This trend is also reflected in the year-to-date figures, which decreased by 41.5%. Both product and service revenues saw reductions. The company continues to operate at a net loss, a consistent characteristic given its clinical-stage status, with no new major revenue streams identified in this period compared to the prior year.

Filing Documents

• pgen-20250630.htm (10-Q) — 1210KB
• pgen-20250630xexx31.htm (EX-3.1) — 3KB
• pgen-20250630xexx311.htm (EX-31.1) — 10KB
• pgen-20250630xexx312.htm (EX-31.2) — 10KB
• pgen-20250630xexx321.htm (EX-32.1) — 6KB
• pgen-20250630xexx322.htm (EX-32.2) — 6KB
• pgen-20250630xexx31001.jpg (GRAPHIC) — 136KB
• pgen-20250630xexx31002.jpg (GRAPHIC) — 35KB
• 0001356090-25-000024.txt ( ) — 6932KB
• pgen-20250630.xsd (EX-101.SCH) — 44KB
• pgen-20250630_cal.xml (EX-101.CAL) — 77KB
• pgen-20250630_def.xml (EX-101.DEF) — 216KB
• pgen-20250630_lab.xml (EX-101.LAB) — 664KB
• pgen-20250630_pre.xml (EX-101.PRE) — 450KB
• pgen-20250630_htm.xml (XML) — 785KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1. Condensed Consolidated Financial Statements (unaudited): 4 Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 4 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 6 Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2025 and 2024 7 Condensed Consolidated Statements of Mezzanine Equity and Shar eholders' Equity (Deficit) for the Three and Six Months Ended June 30, 2025 and 2024 8 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 10 Notes to the Condensed Consolidated Financial Statements 12 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28 3. Quantitative and Qualitative Disclosures About Market Risk 38 4. Controls and Procedures 39

- OTHER INFORMATION

PART II - OTHER INFORMATION 1. Legal Proceedings 40 1A. Risk Factors 40 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 3. Defaults on Senior Securities 40 4. Mine Safety Disclosures 40 5. Other Information 40 6. Exhibits 41

Signatures

Signatures 42 Precigen , AdenoVerse , UltraCAR-T , RheoSwitch , UltraVector , RTS , UltraPorator , ActoBiotics , Advancing Medicine With Precision, RRP Awareness Day and RheoSwitch Therapeutic System are our and/or our affiliates' registered trademarks in the United States and GenVec, Giving Voice to Inspire Change, Papzimeos, Recurrent Respiratory Papillomatosis Awareness Giving Voice to Inspire Change, RRP Awareness & Design, and RRP Awareness Day Giving Voice to Inspire Change are our and/or our affiliates' common law trademarks in the United States. This Quarterly Report on Form 10-Q, or Quarterly Report, and the information incorporated herein by reference contain references to trademarks, service marks, and trade names owned by us or other companies. Solely for convenience, trademarks, service marks, and trade names referred to in this Quarterly Report and the information incorporated herein, including logos, artwork, and other visual displays, may appear without the or symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensor to these trademarks, service marks, and trade names. We do not intend our use or display of other companies' trade names, service marks, or trademarks to imply a relationship with, or endorsement or sponsorship of us by, any other companies. Other trademarks, trade names, and service marks appearing in this Quarterly Report are the property of their respective owners. Unless the context requires otherwise, references in this Quarterly Report to "Precigen", "Company", "we", "us", and "our" refer to Precigen, Inc. 2 Table of Contents Special Note Regarding Forward-Looking Statements This Quarterly Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. All statements, other th

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements Precigen, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except share data) June 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 13,760 $ 29,517 Short-term investments 45,993 68,393 Receivables Trade, less allowance for credit losses of $ 0 as of both June 30, 2025 and December 31, 2024 327 926 Other 244 237 Prepaid expenses 2,431 3,341 Total current assets 62,755 102,414 Property, plant and equipment, net 14,695 13,831 Intangible assets, net 3,818 4,455 Goodwill 15,232 19,139 Right-of-use assets 4,806 5,056 Other assets 590 371 Total assets $ 101,896 $ 145,266 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents Precigen, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except share data) June 30, 2025 December 31, 2024 Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity Current liabilities Accounts payable $ 3,922 $ 3,531 Accrued compensation and benefits 5,201 8,417 Other accrued liabilities 9,514 4,812 Indemnification accruals 3,213 3,213 Deferred revenue 413 589 Current portion of lease liabilities 930 956 Total current liabilities 23,193 21,518 Deferred revenue, net of current portion 1,818 1,934 Lease liabilities, net of current portion 4,223 4,546 Warrant liabilities 78,558 50,537 Total liabilities 107,792 78,535 Commitments and contingencies (Note 13) Mezzanine equity Series A Preferred Stock, no par value, 81,000 shares authorized as of June 30, 2025 and December 31, 2024; 79,000 shares issued as of as June 30, 2025 and December 31, 2024 (aggregate liquidation preference of $ 82,160 as of June 30, 2025 and $ 79,000 as of December 31, 2024). 30,883 28,218 Shareholders' equity (deficit) Common stock, no par value, 400,000,000 shares authori

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