Cibus (NASDAQ:CBUS) expects to need additional capital in the near term as it advances its bio-fragrance and rice trait programs toward commercialization, executives said on the company’s third-quarter 2026 earnings call.
The gene-editing company ended September with $10.7 million in cash and cash equivalents. CFO Carlo Broos said that, excluding potential financing transactions, existing cash is expected to fund planned operating expenses and capital expenditures into early in the first quarter of 2027.
Third-quarter revenue rose to $0.8 million from $0.6 million a year earlier, while the net loss narrowed to $21.9 million, or $0.29 per Class A share, from $24.3 million, or $0.44 per share.
Bio-Fragrances Shift to Direct Sales
Cibus has initiated the manufacturing process for anticipated production runs of its first two bio-fragrance ingredients, which its partner has approved for use in its products, said Co-Founder, President and COO Peter Beetham. The partner also requested larger quantities of two additional fragrances for product development.
The company now plans to sell the ingredients directly rather than collect royalties. Under that model, Cibus estimates the business could generate up to approximately $100 million in peak annual revenue when fully commercialized, assuming a portfolio of eight ingredients. Its earlier estimate was $20 million to $40 million under a royalty model.
CEO Craig Wichner said the partner is working on product formulations. Once an ingredient wins a place in a formulation, he said, the process would lead to a purchase order and revenue. He did not provide a specific revenue-ramp timeline in response to an analyst’s question about 2027.
Cibus plans to use contract manufacturing, which Broos said would not require capital expenditures by the company. He estimated gross margins could be around 50% and potentially rise to 70% with economies of scale.
Rice Trials Underway in Ecuador
Cibus is targeting an initial commercial launch of its herbicide-tolerance rice traits in Latin America as early as 2028. Beetham said validation trials in customers’ own varieties will be a key factor in determining the timing.
Earlier trials in Latin American rice varieties that did not belong to partner Interoc showed positive trait performance, Beetham said. Interoc planted its own edited varieties in Ecuador in late September, with results expected in the first quarter of 2027. The trials also provide data needed to expand herbicide labels to rice carrying the traits.
Cibus is working toward a definitive commercialization agreement with Interoc. Its planned royalty model would generate revenue based on acres planted with seeds carrying the traits. In the United States, current planning targets a 2029 or 2030 launch, tied to Albaugh’s herbicide registration, Beetham said.
The company has described an approximately $200 million annual addressable royalty opportunity across its rice trait portfolio, based on an estimated 5 million to 7 million peak addressable acres. Beetham said Latin America represents the bulk of that opportunity.
Cash Management and Pipeline Updates
Broos said cash used in operating activities during the first nine months of 2026 improved by approximately $7 million, or 19%, from the prior-year period. Third-quarter operating cash use was $9.3 million, and the company continues to expect to exit 2026 at an annualized net cash usage run rate of approximately $35 million.
Research and development expense fell to $7.9 million from $10.8 million in the year-earlier quarter, while selling, general and administrative expense rose to $5.4 million from $5.3 million. Broos cited workforce reductions, laboratory consolidation and lower spending on consultants and other costs among the company’s cost-saving measures.
The quarterly net loss included $9.8 million in non-cash royalty liability interest expense to related parties, up from $9 million a year earlier. Broos said the expense does not affect cash runway or operating cash usage.
Outside its two priority programs, Cibus began work on a partner-funded mustard trait program with Crystal Crop in India. In the United Kingdom, its light leaf spot resistance work remains on schedule, Beetham said. The company also received approval to plant its pod shatter reduction trait in England under precision-breeding rules.
Wichner said a review of the company’s programs and expenses reaffirmed its focus on Sustainable Ingredients and rice as the programs closest to revenue, while retaining targeted investment in longer-term opportunities.
About Cibus (NASDAQ:CBUS)
Cibus, Inc. (NASDAQ: CBUS) is an agricultural biotechnology company focused on developing gene-edited crop traits. Its technology is designed to improve the performance, resilience and sustainability of important crops by making targeted changes to plant genetics without introducing foreign DNA. The company’s proprietary Rapid Trait Development System (RTDS) supports the development of traits for crops including canola, rice, soybeans and wheat. Cibus has pursued applications such as herbicide tolerance, pod-shatter reduction and resistance to diseases and other environmental stresses, with the goal of helping growers improve yields, reduce crop losses and use agricultural inputs more efficiently.
