Evogene Q2 Loss Narrows As AI Transformation Drives Strategic Progress

(RTTNews) - Evogene Ltd. (EVGN) reported second-quarter and first-half 2026 financial results, highlighting continued progress in its transformation into a focused, AI-driven computational chemistry company serving the pharmaceutical and agricultural industries.

Over the past 18 months, Evogene has substantially streamlined its operations, cutting its workforce from 117 employees in December 2024 to 38 in August 2026, while reducing operating expenses and concentrating resources on opportunities with stronger commercial potential.

Evogene expects 2026 cash usage of approximately $8.5 million to $9.5 million, down from approximately $14.4 million in 2025 and $20.5 million in 2024. The company has also raised approximately $11.1 million in new capital since the beginning of 2025. ChemPass AI: Virtual Chemical Space Expands To 110 Billion Molecules

Evogene's core ChemPass AI platform continues to expand its computational capabilities.

The company has increased its virtual chemical space from approximately 36 billion to 110 billion molecules, significantly broadening the range of compounds that can be explored for potential drug and agricultural applications.

Following its second agreement with Google Cloud, Evogene integrated advanced autonomous AI Agents into its computational workflow in June.

These systems are designed to automate complex research activities that traditionally required weeks or months of specialized scientific work, potentially reducing them to minutes.

In July, the company also expanded its predictive AI capabilities with the Antifungal Potency Predictor (APP), designed to predict the activity of small molecules against fungal pathogens and complement target-level interaction models.

Pharma Pipeline Gains Momentum With Six Active Collaborations

Evogene's pharmaceutical division has established four new drug development collaborations since the beginning of 2026, bringing its total number of active collaborations with biotechnology companies and leading academic institutions to six.

Two of these programs have already completed the initial Hit Identification stage of the ChemPass AI computational discovery process, with validation results exceeding partner expectations.

The programs are now advancing toward subsequent development stages.

Evogene retains significant commercial rights to discoveries generated through these collaborations, providing potential future revenue opportunities as programs advance.

The company's internal drug discovery program has also progressed through the Hit-to-Lead stage and into Lead Optimization, where Evogene is generating proprietary molecules that could become candidates for future preclinical development.

Agriculture Program Advances Toward Field Testing

In agriculture, Evogene continues developing its crop protection program targeting Septoria, a major fungal disease.

The program is approaching completion of the Lead Optimization stage, with synthesized molecules undergoing advanced biological testing ahead of planned greenhouse and field trials.

The company is also pursuing strategic partnerships in agriculture while concentrating resources on its highest-value opportunities.

Portfolio Optimization

Evogene has streamlined several non-core activities as part of its strategic transformation.

Lavie Bio: No longer operational after selling most assets to ICL; two additional payments remain due through July 2027. Evogene received approximately $2.9 million from a Q2 dividend.

Biomica: Ceased operations after licensing BMC128 to Lishan Pharmaceuticals; Evogene received approximately $1.35 million from a Q2 dividend.

Casterra: Has scaled back operations and is now focused exclusively on Brazil.

Second Quarter 2026 Financial Results

Evogene reported approximately $0.3 million in revenue for Q2 2026, compared with approximately $0.5 million in Q2 2025.

R&D expenses were approximately $1.4 million in Q2 2026, down from $1.7 million in the year-ago quarter.

Sales and marketing expenses were approximately $0.3 million, compared with $0.4 million in Q2 2025.

Loss from discontinued operations declined to approximately $0.2 million, compared with $1.7 million in Q2 2025.

The company's net loss narrowed to approximately $1.8 million in Q2 2026, compared with approximately $4.7 million in the same period last year.

First-Half 2026 Financial Results

For the first half of 2026, Evogene reported approximately $0.7 million in revenue, compared with $2.9 million in the prior-year period.

R&D expenses declined to approximately $2.9 million, from $3.5 million in H1 2025, while sales and marketing expenses remained broadly unchanged at approximately $0.7 million.

Evogene recorded approximately $1.7 million in net financing expenses for H1 2026, compared with net financing income of $0.8 million in the year-ago period, primarily due to the accounting treatment and revaluation of warrants.

Loss from discontinued operations declined to approximately $0.5 million, compared with $3.6 million in H1 2025.

The company's net loss for the first half of 2026 was approximately $7.7 million, broadly unchanged from H1 2025.

Cash Position

As of June 30, 2026, Evogene held approximately $9.3 million in consolidated cash and cash equivalents. Cash usage during the second quarter was approximately $2.1 million.

The company expects its annual cash burn to decline further in 2026, reflecting its leaner operating structure and strategic focus on AI-driven computational chemistry.

With its expanding virtual chemical space, six active collaborations and advancing internal pharmaceutical and agricultural programs, Evogene is positioning ChemPass AI as the core engine of its future drug and crop protection discovery strategy.

EVGN has traded between $0.37 and $1.50 over the past year. Currently, EVGN is trading at $0.55, down 0.34%.