Research Reports

Key takeaways

Revenue reached $1.9M, reflecting initial post-launch sales of VIZZ in the first quarter following FDA approval.

Gross profit was $825.0K, achieving a 43.4% gross margin enabled by zero-cost inventory from pre-approval expensing.

Operating income was -$44.1M, a -160.7% change YoY, driven by elevated expenses post-FDA approval of VIZZ.

Net income was -$41.5M (-183.8% YoY) with diluted EPS of -$1.32 (-149.1% YoY).

Free cash flow was -$33.6M, reflecting cash used in operating activities of -$33.6M from net losses offset by non-cash adjustments and working capital changes.

Research and development costs decreased relative to Q1 2025 primarily due to FDA approval of VIZZ.

Full analysis

Operating income deteriorated to -$44.1 million from -$16.9 million in Q1 2025, a -160.7% change, while net income widened to -$41.5 million (-183.8% YoY) and diluted EPS fell to -$1.32 from -$0.53 (-149.1% YoY). These results stem from the company's transition to commercialization, where expenses have surged due to the recent launch of a direct-to-consumer marketing campaign and sales force expansion. Research and development costs decreased relative to the prior year primarily because FDA approval shifted certain manufacturing and medical costs out of R&D, though overall losses reflect the pre-profitability investments needed to build market presence.

Looking forward, cost of sales per unit for VIZZ is expected to rise after zero-cost inventory depletes during 2026, and SG&A expenses are anticipated to continue increasing due to ongoing DTC efforts and sales force growth. This positions LENZ in a high-investment phase to drive adoption, though it continues to adversely affect working capital and the path to profitability.

LENZ · LENZ Therapeutics, Inc.

Summary

Key takeaways

Full analysis