Enzo Biochem Reports Revenue Decline and Operating Loss in Q2 Fiscal 2025

Enzo Biochem, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a decline in revenue and an operating loss. For the three months ended January 31, 2025, the company generated revenues of $7.3 million, a decrease of 14% from $8.6 million in the same period last year. The six-month revenue also fell to $13.5 million from $16.4 million, marking a 17% decline. The operating loss for the quarter was $1.6 million, an improvement from a loss of $2.2 million in the prior year, while the six-month operating loss narrowed to $5.2 million from $7.7 million.

The decrease in revenue was attributed to declining market demand, particularly in international markets, and the timing of large order fulfillments. Despite the drop in revenue, the cost of revenues also decreased, leading to a gross profit margin improvement to approximately 52% in the latest quarter, up from 49% a year earlier. The company reported a reduction in operating costs, with selling, general, and administrative expenses down by 10% to $4.6 million for the quarter, reflecting lower headcount and reduced travel expenses.

Enzo Biochem has undergone significant strategic changes, including the sale of its clinical services business to Labcorp for $113.25 million in cash, completed in July 2023. This divestiture has allowed the company to focus on its core life sciences division, which specializes in labeling and detection technologies. The company also reported a release of $5 million from escrow related to this transaction, contributing to its cash position of $40.3 million as of January 31, 2025, down from $52.3 million at the end of July 2024.

Operationally, Enzo Biochem's customer base has been affected by broader market conditions, with revenues from the U.S. declining to $4.8 million from $5.2 million year-over-year. The company continues to explore strategic alternatives to enhance shareholder value, including potential acquisitions and joint ventures. Looking ahead, Enzo Biochem aims to improve its market position and profitability while managing its operational costs effectively. The company has submitted a plan to the New York Stock Exchange to address compliance issues related to market capitalization and stock price, as it seeks to maintain its listing status.