• Revenue: $73.5 million in Q1 2025, compared to $76.2 million in Q4 2024.
• GAAP Gross Margin: 38.6%.
• Non-GAAP Gross Margin: 41%.
• GAAP Operating Expenses: $48.1 million in Q1 2025.
• Non-GAAP Operating Expenses: $37.4 million.
• Adjusted EBITDA Loss: $2.9 million in Q1 2025.
• Non-GAAP Income: $1.2 million, or $0.04 per share.
• Stock Repurchase: 646,000 shares repurchased at a cost of $10.9 million in 2025.
• Cash Position: $814.6 million in cash, cash equivalents, restricted cash, and marketable securities.
• 2025 Revenue Outlook: Core revenue expected to be approximately $310 million, representing 10% growth year over year.
• 2025 Non-GAAP Gross Margin Outlook: Expected to slightly exceed 40% for the full year.
• 2025 Non-GAAP Operating Margin Outlook: Approximately minus 15% for the year.
• 2025 GAAP EPS Outlook: Expected loss of approximately $1.95 per share.
• 2025 Non-GAAP EPS Outlook: Expected loss of $0.65 per share.
• End of 2025 Cash Position Outlook: Expected to be approximately $770 million.

• Warning! GuruFocus has detected 3 Warning Signs with FLGT.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fulgent Genetics Inc (NASDAQ:FLGT) reported year-over-year growth in its Laboratory Services business, indicating strong momentum in 2025.
• The company's Therapeutic Development pipeline is progressing well, with FID-007 in Phase 2 trials and FID-022 set to begin Phase 1 trials soon.
• Precision Diagnostics saw a 17.8% year-over-year increase, driven by reproductive health services and Beacon Expanded Carrier Screening.
• The company has successfully onboarded new VA hospitals and is seeing significant usage, indicating potential upside from new initiatives.
• Fulgent Genetics Inc (NASDAQ:FLGT) has a strong cash position with approximately $814.6 million in cash, cash equivalents, and marketable securities, supporting future growth and strategic initiatives.

Negative Points

• Revenue for the first quarter of 2025 was $73.5 million, a decrease from $76.2 million in the fourth quarter of 2024.
• Non-GAAP operating margins decreased approximately 5 percentage points sequentially to a minus 10%, primarily due to lower revenue and gross margins.
• The BioPharma Services business experienced a 33.7% sequential decline, reflecting the variability and timing of contracts in this segment.
• The company expects a non-GAAP loss of $0.65 per share for the full year 2025, indicating ongoing financial challenges.
• Despite strong performance in certain areas, the company did not raise its full-year guidance, suggesting caution regarding future uncertainties.

Q & A Highlights

Q: Why didn't Fulgent Genetics raise its full-year guidance despite strong momentum in VA contracts and Foundation Medicine? A: Paul Kim, CFO, explained that the company wants to be more comfortable before adjusting the guidance. They prefer any adjustments to be considerable rather than minor. The EPS came in better than expected, but they are monitoring the impact of aggressive stock buybacks on EPS before making any changes.

Q: How much of the Q1 results in Precision Diagnostics came from new accounts versus existing business? A: Brandon Perthuis, CCO, noted that the strong performance was a mix of existing clients ordering more and new client wins. The company continues to gain market share, especially in reproductive health, and some new clients are still being onboarded, which takes time.

Q: What are the plans for capital deployment in 2025, including stock buybacks and M&A? A: Ming Hsieh, CEO, stated that the company is actively deploying capital for stock buybacks and evaluating potential M&A opportunities to enhance their distribution network and deploy technologies.

Q: What is the expected penetration rate for FID-107, and what is the market potential? A: Ming Hsieh, CEO, mentioned that FID-107 targets EGFR-positive patients and non-EGFR populations in head and neck cancer. The market is large, and the company is optimistic about the results and potential expansion to other options after Phase 2 trials.

Q: How is Fulgent Genetics planning to expand its sales and marketing efforts? A: Paul Kim, CFO, and Brandon Perthuis, CCO, explained that the company is actively hiring salespeople across all divisions, including pediatric and rare disease testing, reproductive health, and pathology. They believe their operational capabilities will support the success of the expanded sales team.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.