Bioceres Crop Solutions misses Q2 revenue estimates as sales drop 40%

ROSARIO, Argentina - Bioceres Crop Solutions Corp. (NASDAQ:BIOX) reported second quarter revenue of $74.7 million, falling significantly short of analyst expectations of $111.68 million as the agricultural technology company faced challenging market conditions. Revenue declined 40% YoY, reflecting weaker demand in Argentina and lower HB4-related sales.

The company posted a quarterly operating loss of $14.9 million and a net loss of $48.0 million, compared to a net loss of $1.0 million in the same quarter last year. Adjusted EBITDA was negative $4.5 million for the quarter. Bioceres shares showed a minimal reaction, trading up 0.37% following the results.

For the full fiscal year 2025, Bioceres reported total revenue of $335.3 million, down 28% from the previous year. Despite the revenue decline, the company maintained a relatively stable gross margin of 39.3% for the year, supported by higher-value proprietary 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 challenging environment, the company has accelerated adjustments to its cost structure, targeting operating expense savings of 10-12%. Bioceres has also reduced its incremental capital expenditure and R&D investment by 50%, lowering it from nearly 6% of sales to between 2.5% and 3% for fiscal years 2026 and 2027.

Despite the profitability challenges, Bioceres reported strong cash flow generation, with net cash flow from operating activities reaching $29.9 million in the fourth quarter and $53.0 million for the full year, representing a 27% YoY increase from fiscal year 2024.

The company attributed the disappointing results to several factors affecting the Argentine market, including extraordinary prior-year sales linked to peso devaluation, weaker on-farm economics, and tightening financing across the agricultural sector.

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