This article first appeared on GuruFocus. • Revenue: $71.1 million in Q1 2026, a decrease of 3.6% year-over-year and 14.6% quarter-over-quarter. • Biopharma Services Revenue: $5.8 million, an increase of 43.2% year-over-year, but down 28.0% sequentially. • Gross Margin: GAAP gross margin at 30.2% and non-GAAP gross margin at 32.3% for Q1 2026. • Operating […]
This article first appeared on GuruFocus.
• Revenue: $71.1 million in Q1 2026, a decrease of 3.6% year-over-year and 14.6% quarter-over-quarter.
• Biopharma Services Revenue: $5.8 million, an increase of 43.2% year-over-year, but down 28.0% sequentially.
• Gross Margin: GAAP gross margin at 30.2% and non-GAAP gross margin at 32.3% for Q1 2026.
• Operating Expenses: GAAP operating expenses were $56.1 million, down from $68.8 million in the prior quarter.
• GAAP Loss: $24.8 million, with a GAAP loss of $0.08 per share.
• Cash Position: Ended Q1 2026 with approximately $604.7 million in cash, cash equivalents, restricted cash, and marketable securities.
• Stock Repurchase: Repurchased 2.6 million shares in Q1 2026, with an additional 0.5 million shares repurchased in the current quarter.
• Non-GAAP EPS Guidance: Expected to decrease by $0.14 to a loss of $1.59 per share for the full year 2026.
• Is FLGT fairly valued? Test your thesis with our free DCF calculator. For the complete transcript of the earnings call, please refer to the full earnings call transcript.
• Fulgent Genetics Inc (NASDAQ:FLGT) successfully completed the acquisition of Bako Diagnostics and StrataDx, which contributed positively to their first-quarter results.
• The company is seeing accelerated progress in its therapeutic development pipeline, particularly with its clinical candidate FID-007 advancing through Phase 2 trials.
• Fulgent Genetics Inc (NASDAQ:FLGT) has integrated Illumina’s TruPath Genome, enhancing their whole genome test capabilities and targeting complex variant classes.
• The company received MolDX approval and pricing for their PGx test, aligning with recent ASCO recommendations for pharmacogenomic testing.
• Fulgent Genetics Inc (NASDAQ:FLGT) is in a strong financial position, with a significant cash reserve and ongoing stock repurchase program, indicating confidence in their strategy and value.
• Revenue for the first-quarter of 2026 decreased by 3.6% year-over-year and 14.6% quarter-over-quarter, primarily due to a reduction in sales to their largest customer.
• The company’s GAAP gross margin declined to 30.2%, reflecting fixed costs over a lower revenue base.
• Fulgent Genetics Inc (NASDAQ:FLGT) reported a GAAP loss of $24.8 million for the current quarter, an increase from the prior quarter.
• The company experienced delays in receiving a $106 million federal income tax refund, impacting their cash flow.
Q: Excluding the impact of the largest customer, what is the underlying business growth for the remainder of the portfolio? A: Paul Kim, CFO: The impact from the largest customer was significant, but if you strip that away, the underlying Precision Diagnostics business shows growth consistent with your calculations, indicating growth in this area for the year. Q: Why was the gross margin in Q1 lower than the initial target of 37%, and how confident are you in reaching 40% in the second half? A: Paul Kim, CFO: The lower gross margins were due to lower-than-anticipated revenues, primarily from reduced volumes from our largest customer and timing impacts from claims processing backlog. We expect normalization in the coming quarters, which should improve gross margins. Q: What was the contribution from StrataDx and Bako in Q1, and what should Q2 look like? A: Paul Kim, CFO: The contribution from Bako in Q1 was $2.6 million. Q2 should be higher due to the full quarter contribution from Bako and StrataDx, with targets in excess of $90 million per quarter in revenues. Q: What are the key product segments driving growth in Precision Diagnostics? A: Brandon Perthuis, CCO: We benefit from a diverse portfolio of 22,000 genetic tests. Significant momentum is seen in rare disease with exomes and genomes, and our whole exome now includes long reads, short reads, and full RNA-seq analysis. We also see growth in oncology and pharmacogenetic testing. Q: Regarding FID-007, what should we look for at the ASCO presentation, and what are the plans for commercialization? A: Ming Hsieh, CEO: We are excited about the ASCO presentation, which highlights our strong clinical trial results. We are open to collaborations with potential partners but aim to do so from a position of strength. We have the cash to proceed independently but are also seeking meaningful partnerships. For the complete transcript of the earnings call, please refer to the full earnings call transcript.…Read more by GuruFocus News