Bioceres Crop Solutions (NASDAQ:BIOX) reported lower fiscal third-quarter 2026 revenue and gross profit as management described the period as one of transition, operational refocusing and continued uncertainty tied to litigation involving ProFarm Group.
Chief Executive Officer Federico Trucco said the quarter is historically the company’s weakest from a baseline business perspective, but noted that this year’s results also lacked the intellectual property rights and commercial arrangement profits that helped offset operating losses in the same period over the past three years.
Revenue declines as seed transition weighs on results
Chief Financial Officer Ezequiel Simmermacher said fiscal third-quarter revenue from continuing operations was $39.4 million, down 23% from the prior-year period. He said the company’s financial results have been recast to exclude the ProFarm Group business, which is now classified as discontinued operations.
Simmermacher said the quarter reflected both softer market conditions in certain product categories and the effects of Bioceres’ ongoing portfolio transition.
- Crop Protection revenue was $24.6 million, down 18% year over year, driven by softer demand and competitive pressure, particularly in adjuvants and third-party products in Argentina.
- Seed and Integrated Products revenue declined 71%, continuing a trend as the company phases out downstream seed and grain sales and shifts toward a more asset-light, lower working capital model.
- Crop Nutrition revenue rose 15% to $11.6 million, supported by microbial fertilizers and stronger demand amid global supply and pricing uncertainty linked to geopolitical tensions.
Gross profit fell 30% to $12.7 million from $18.1 million a year earlier. Overall gross margin declined to 32% from 35%. Simmermacher said Crop Protection margins were generally stable, though the segment margin declined to 35% from 37% due to a lower contribution from adjuvants. Seed and Integrated Products gross margin improved to 30% from 19%, reflecting a more favorable mix with a higher contribution from seed treatment packs.
In Crop Nutrition, gross profit declined 38% despite higher revenue. Simmermacher attributed the drop mainly to an obsolescence adjustment related to inoculants following an updated inventory assessment, saying underlying profitability in that business was broadly stable excluding the adjustment.
Adjusted EBITDA turns negative
Adjusted EBITDA was negative $0.6 million, compared with positive $9.1 million in the prior-year quarter. Simmermacher said the comparison was affected by two non-recurring items: roughly $7.7 million of prior-year other income tied to contractual obligation changes and intellectual property arrangements in Seeds, and the current-quarter inoculant obsolescence adjustment.
Beyond those items, he said operating performance reflected lower gross profit in parts of the business, particularly Crop Protection. The impact was partially offset by cost control and organizational streamlining efforts, as well as improved joint venture results.
ProFarm foreclosure drives discontinued operations treatment
General Counsel Jose Roque provided an update on litigation related to secured notes issued under August 2022 note purchase agreements. Roque said four holders of the notes filed a lawsuit in New York in November 2025 against Bioceres and certain guarantor affiliates, alleging defaults and seeking payment of amounts they claim became immediately due.
Roque said the company “strongly disputes” the allegations and has asserted counterclaims against the plaintiffs and third-party individuals. He said Bioceres maintains that each alleged default depends on contested facts and that the company acted in good faith under active board supervision to manage liquidity and preserve enterprise value.
As part of the litigation, noteholders conducted a foreclosure auction on Jan. 20, 2026, involving ProFarm Group collateral. Roque said a noteholder-affiliated entity was the only qualified bidder and acquired the assets through a $50 million credit bid. He said Bioceres believes the foreclosure was conducted in a commercially unreasonable manner and is challenging the process through counterclaims.
Simmermacher said the ProFarm business was classified as discontinued operations, with assets and liabilities reclassified accordingly. The company recognized a non-cash impairment and loss in the second quarter of fiscal 2026. Approximately $194 million of net assets associated with ProFarm were derecognized or reclassified, and after considering the $50 million credit bid, the accumulated non-cash loss was approximately $179 million.
Debt remains stable, but liquidity remains a focus
As of March 31, 2026, total financial debt was approximately $229 million, while cash, cash equivalents and short-term investments totaled approximately $14 million. Net financial debt was approximately $214 million, broadly stable from the prior quarter.
Simmermacher said substantially all debt related to the noteholder situation is classified as short-term on the balance sheet following the acceleration notice, though the company disputes both the acceleration and the commercial reasonableness of the ProFarm foreclosure auction.
Management said it continues to evaluate alternatives and maintain dialogue with stakeholders where appropriate. The company is also advancing a reprofiling process for debt obligations in Argentina, including voluntary maturity extensions, discussions with bondholders and coordination with banking partners.
During the question-and-answer session, Brookline Capital Markets analyst Kemp Dolliver asked about collections and receivables. Trucco said the company is emphasizing receivables reduction and collections to prioritize liquidity and working capital discipline. Simmermacher said Bioceres has been offering customers incentives to advance receivables and is seeking shorter sales terms more in line with industry practices.
Trucco said the company remains focused on simplifying the organization, improving operational efficiency, strengthening working capital management and conducting a strategic review of continuing operations. “Our priority remains clear: stabilizing the business, preserving the value of our core operations, and positioning the company for a more resilient and sustainable future,” he said.
About Bioceres Crop Solutions (NASDAQ:BIOX)
Bioceres Crop Solutions Corp. is an agricultural biotechnology company focused on developing, manufacturing and commercializing a range of crop inputs designed to enhance yields and improve sustainability. The company’s portfolio includes biological seed treatments, inoculants for nitrogen fixation, specialty fertilizers and proprietary biopesticides, which are formulated to support plant health and resilience under varying environmental conditions.
Among its flagship offerings is the HB4 drought-tolerant wheat technology, the first genetically modified wheat developed to withstand water stress, which has received regulatory approval in several markets.
