Precigen, Inc.

Total revenue was $55 million, including $53.1 million from PAPZIMEOS, versus $21.6 million of PAPZIMEOS revenue in Q1, implying more than 145% quarter-over-quarter revenue growth. Gross margin was $52.2 million, or 95%, with cost of products and services of $2.8 million. R&D expense was $7.3 million, down $4.2 million year over year, while SG&A was $22.2 million, up $6.1 million year over year. Operating income was $22.6 million, and net income was $20.1 million, or $0.05 per diluted share. On the balance sheet, the company ended Q2 with $38.7 million in cash, cash equivalents and investments, plus $71.9 million in trade accounts receivable. Management said current cash plus receivable collections should fund operations through cash-flow breakeven by the end of 2026.

Helen Sabzevari framed PAPZIMEOS as the first and only approved therapy and new first-line standard of care for adult RRP, emphasizing that the broad label is allowing use earlier in the disease course rather than only in severe cases. Her tone was highly confident, pointing to broadening access, physician adoption, durable responses, and 7-year market exclusivity through August 2032 as evidence of a durable multi-year commercial opportunity. She also reiterated that the company believes RRP has blockbuster potential and said the success of PAPZIMEOS validates the broader AdenoVerse platform.

Harry Thomasian focused on the sharp improvement in profitability and cash generation. He said total revenue was $55 million, gross margin was 95%, operating income was $22.6 million, and net income was $20.1 million, with PAPZIMEOS driving the company into profitability for both the quarter and the six months ended June 30. He also said Q2 was the first quarter with cash proceeds from PAPZIMEOS receivables, ended with $38.7 million in cash and investments and $71.9 million in receivables, and expects gross margin to settle in the high 80%s to low 90%s after prelaunch inventory is sold through, likely in Q3.

Analysts focused on whether the Q2 surge could continue into Q3, how much demand was coming from the company’s hub versus outside it, and whether the permanent J-code had meaningfully changed the launch cadence. Management said growth will continue but the rate will be known by the end of Q3, and they stressed that a significant share of patients are coming from non-hub institutions as well as hub-registered sites. They also said the J-code has helped some institutions that were waiting to start, and that the next few quarters should still be driven primarily by new demand rather than just carryover doses.