Agilyx: L9M revenue down y/y, but continued improvement in gross profit contribution and business model repositioning in place - Nordea

Agilyx released a Q3 update this morning, with the focus being on the company’s recent repositioning of its business model. Revenues for the first 9 months came in at USD 10.9m, 14% down y/y, driven by customer facility maintenance affecting the Cyclyx side of the business in 2023. Down the P&L, the company noted continued improvement to gross margin contribution, while a reduction in headcount has resulted in a lower opex base (currently running at around USD 0.6m per month vs. USD 1.8m in H1 2023) which combined with the recent capital raise results in a fully funded business through 2024 (net cash of USD 8.2m in September, which was followed by a USD 20m capital raise in October). Away from the numbers, the company highlighted the recent changes to its business model; on the Agilyx side, the company will focus on waste-to-product applications whereby they are unique (asset-light model set to continue), while on the Cyclyx side the new business model will target construction of sequential cyclyx circularity centres (CCCs) with the first operational next year. Elsewhere, the company confirmed that the first customer plant, Toyo Styrene, remains on track for commissioning in Q1 2024, while the company has repaid their USD 5m bond thus leaving them debt-free.

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