CODX — Q2 2026 Financial Report Analysis

A research-stage company with a $3.6 million cash cushion and a $2.5 million monthly burn

Co-Diagnostics sold $166,131 of PCR test kits in the second quarter of 2026 (April–June) — about 2% more than the $162,910 it sold a year earlier — while spending $6.3 million to run the business. The net loss was $6.3 million, smaller than last year's $7.7 million because the company cut legal, staff and stock-based pay costs. But the number that matters most is on the balance sheet: cash fell to $3.6 million at June 30 from $11.9 million at the start of the year, and management's own assessment in the 10-Q says there is "substantial doubt" about its ability to keep operating for the next 12 months without raising more money. Everything now rides on a new point-of-care PCR device that the FDA has not yet cleared.

At a glance

• $0.17 million in quarterly revenue vs $6.3 million in operating costs — the company spends roughly $38 for every $1 of sales; it is effectively a pre-revenue research company, not the pandemic test seller it was in 2020–21.
• $15.0 million of cash used by operations in six months — about $2.5 million a month, against $3.6 million of cash on hand at June 30.
• Shares outstanding roughly tripled in seven months (2.10 million at Dec 31, 2025 to 6.25 million on Aug 11, 2026, after a 1-for-30 reverse split on Jan 1) — the company is paying its bills largely by selling new shares.

From $98 million to under $1 million: the post-COVID collapse

Co-Diagnostics designs PCR tests — the lab method that detects a virus's or bacterium's genetic material — using a patented primer design it calls Co-Primers. Its Logix Smart COVID-19 test turned a tiny company into a highly profitable one for two years. Annual revenue from its 10-K filings:

Revenue is now back below where it was before the pandemic, while annual losses in 2023–2025 ran six to eight times larger than in 2019, because the company has kept a full research program running on the cash it earned from COVID tests. That cash is nearly gone: the accumulated deficit — total losses since founding, net of profits — reached $95.8 million at June 30.

Q2 2026 results

Operating margin is not shown as a percentage because the operating loss is about 37 times revenue, which makes the ratio meaningless.

Revenue. Management's own discussion says only that revenue was "$0.2 million" in both quarters — it gives no product-level explanation. The geography note does show a shift: US sales fell to $105,386 from $162,910 (-35%), while sales outside the US went from zero to $60,745. Sales are also concentrated — one customer accounted for about 37% of second-quarter revenue. At this size, a single order moves the growth rate by double digits, so the +2% (and the +46% for the first six months, $312,084 vs $213,187) says little about demand.

Costs. Operating expenses fell $1.9 million. The 10-Q attributes the drop "primarily" to lower legal and professional fees and lower personnel and stock-based compensation costs, "partially offset by increased expense related to clinical trials for the Co-Dx PCR platform." Stock-based compensation for the half year fell to $0.43 million from $1.46 million. Second-quarter spending was also well below the first quarter's $9.16 million (Q1 R&D was $5.93 million vs $4.15 million in Q2), consistent with clinical studies for the new device winding down ahead of the FDA filing.

Other income disappeared. A year ago, the company still held marketable securities and booked $0.34 million of realized investment gains in Q2 (and $0.64 million in H1 2025), plus a $0.73 million H1 gain from re-measuring acquisition-related liabilities. Those investments have all been sold and spent. That is why the six-month net loss ($15.4 million) was slightly larger than a year ago ($15.3 million) even though operating expenses fell — last year's loss was cushioned by one-off gains that no longer exist.

What the headline numbers hide

• The "smaller loss" is not a turnaround. The improvement came entirely from spending less, not from selling more: revenue covers under 3% of operating costs. And six-month operating cash burn ($15.0 million) is close to the $15.4 million net loss — there is no large non-cash charge flattering the cash picture.
• Loss per share fell from $7.00 to $1.46 almost entirely because of dilution. The weighted average share count rose to 4.31 million from 1.10 million (both restated for the 1-for-30 reverse split). The net loss shrank 19%; the loss per share shrank 79%. The difference is new shares, which spread the same losses across more owners rather than reducing them.
• Going-concern warning. Note 1 states that "substantial doubt exists about the Company's ability to continue as a going concern for 12 months" from the filing date, because management's plans depend on raising capital, which it cannot treat as probable. At the H1 burn rate, June 30 cash covered under two months of operations.
• How it is being funded. In the first half the company raised $4.33 million net from at-the-market share sales (selling stock gradually into the market) and $2.74 million net from a May 2026 private placement priced at $1.821 per share with warrants attached. In July, holders exercised 1.70 million warrants for about $2.67 million gross, in exchange for 3.40 million new warrants at $1.56 (exercisable only if shareholders approve). A new ATM program allows up to about $7.9 million more. Each of these adds shares.
• Old buybacks vs new issuance. The company still holds 161,623 treasury shares that cost $15.6 million when it bought back stock in 2022 — roughly $96 per share on a post-split basis. It is now issuing shares at under $2. In hindsight, about $15.6 million of the COVID windfall that could have extended the runway went to repurchases at far higher prices.
• Book value leans on one intangible asset. Of $16.6 million in total assets, $7.2 million is in-process research and development (an intangible from past acquisitions, valued on the assumption the technology reaches market). Stockholders' equity is $12.7 million; without that intangible it would be $5.5 million. If the platform stalls, that asset is at risk of a write-down.
• Gross margin is erratic, not deteriorating per se. Six-month gross margin fell to 23.4% from 74.8%, because first-quarter cost of revenue ($0.19 million) exceeded first-quarter revenue ($0.15 million). The filing ties cost-of-revenue swings to adjustments in reserves for slow-moving or obsolete inventory — leftover stock rather than the economics of new sales.
• Lawsuit settlement pending. On July 28, 2026, the parties to the Stadium Capital securities class action (which alleges the company overstated demand for its COVID test) signed a binding term sheet for a $6.5 million settlement, with no admission of wrongdoing, subject to court approval. The 10-Q does not say how much of that, if any, would come from the company's own cash rather than insurance — a material question for a company with $3.6 million in the bank.

Takeaway: Co-Diagnostics is no longer a diagnostics seller in any financial sense — it is a single-product development bet on FDA clearance of its Co-Dx PCR Pro device, funded by issuing shares at a pace that roughly tripled the share count in seven months, with a formal going-concern warning and under two months of cash at June 30.

What comes next

• The FDA decision is the whole story. The company submitted a combined 510(k) and CLIA Waiver application (the clearance that would let non-lab settings such as clinics run the test) in August 2026 for its Flu A/B and RSV multiplex test on the Co-Dx PCR Pro instrument. It had earlier withdrawn a COVID-19 510(k) for the same device after FDA questions about how it detects degradation of a test component over shelf life. Management gives no revenue guidance and no timing for an FDA decision.
• Other pipeline: its Indian joint venture CoSara began clinical studies of a tuberculosis test on the PCR Pro in July 2026, and a 2025 joint venture in Saudi Arabia (CoMira) holds rights to the platform across the Middle East and North Africa. Neither produces meaningful revenue today; the company recorded $65,518 of losses from its joint ventures in H1.
• Our read: With R&D spending stepping down after the clinical studies, quarterly burn may ease from the first half's pace, but even at the Q2 operating-expense level of $6.3 million, the company needs fresh capital every quarter. Expect more ATM sales and warrant-driven issuance, and watch three things in the Q3 10-Q (likely mid-November): cash at September 30 against the July warrant proceeds, whether the going-concern language persists, and any FDA feedback on the August submission. Until a cleared product generates sales, revenue figures in the low hundreds of thousands are noise rather than signal.