Bioceres Crop Solutions Corp. (NASDAQ:BIOX) posted second-quarter revenue of $74.7 million, well below analyst expectations of $111.68 million, as the agricultural technology group struggled with weak market conditions. Revenue dropped 40% year-on-year, weighed down by softer demand in Argentina and a decline in HB4-related sales.
The company reported an operating loss of $14.9 million for the quarter, alongside a net loss of $48.0 million, widening sharply from a $1.0 million net loss in the same period last year. Adjusted EBITDA came in at negative $4.5 million. Despite the disappointing performance, shares edged up 0.37% in the wake of the results.
For fiscal year 2025, Bioceres booked total revenue of $335.3 million, down 28% from the prior year. Gross margin held relatively steady at 39.3%, supported by a stronger mix of proprietary, higher-value products.
“We are reporting a disappointing final quarter to an extremely challenging fiscal year,” said Federico Trucco, Bioceres’ Chief Executive Officer. “Our results this quarter were significantly impacted by the shift in our seed business strategy, which alone accounted for close to half of the gross margin decline.”
In response to the pressures, Bioceres has moved to accelerate cost-cutting, aiming to trim operating expenses by 10–12%. The company also halved its incremental capital expenditure and R&D budget, lowering it from nearly 6% of sales to between 2.5% and 3% for fiscal 2026 and 2027.
Despite profitability challenges, Bioceres highlighted solid cash flow, with operating cash flow reaching $29.9 million in the fourth quarter and $53.0 million for the full year — a 27% increase compared with fiscal 2024.
Management cited a series of headwinds in Argentina as key reasons for the weak performance, including one-off sales in the prior year tied to peso devaluation, deteriorating farm economics, and tighter financing conditions in the agricultural sector.
Bioceres Crop Solutions stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.