Financial Data and Key Metrics Changes - Revenue in Q3 2025 totaled $84.1 million, an increase from $81.8 million in Q2 2025, reflecting a year-over-year growth of 15% [16][19] - Non-GAAP gross margin was 44.3%, while GAAP gross margin was 42.2%, showing year-over-year improvement due to streamlined operations [16][19] - GAAP loss for the quarter was $6.6 million, an improvement from a loss of $19 million in the prior quarter [17][19] - Adjusted EBITDA for Q3 was approximately $0.7 million, compared to a loss of $3 million in Q2 2025 [17][19] Business Line Data and Key Metrics Changes - Laboratory services revenue reached nearly $84 million, with precision diagnostics up 7.3% sequentially and 16.4% year-over-year [11][19] - Biopharma revenue increased by 15.4% sequentially and 83.4% year-over-year [11][19] - Anatomic pathology revenue decreased by 7.6% sequentially but increased by 7.2% year-over-year due to timing of collections [11][19] Market Data and Key Metrics Changes - The company has begun to see minimal revenue from its therapeutic development business, primarily related to IP licensing royalties [16][19] - The introduction of new services, such as ultra-rapid whole genome sequencing, is expected to significantly improve patient outcomes in the NICU [12][19] Company Strategy and Development Direction - The company is focused on scaling efficiently and driving innovation across its service offerings, with a commitment to R&D spending [19][20] - The launch of new products, including an enhanced whole genome sequencing service and the expansion of the Beacon carrier screening service, is aimed at strengthening market position [12][13][19] - The company raised its full-year 2025 revenue outlook to $325 million, representing a growth of 15% year-over-year [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of both laboratory services and therapeutic development, raising the outlook for the remainder of 2025 [7][19] - The company anticipates continued improvement in operating margins driven by increased revenue and operational efficiencies [19][21] - Management highlighted the importance of AI technology in enhancing laboratory services efficiency and precision [10][19] Other Important Information - The company ended Q3 with approximately $787.7 million in cash and equivalents, with expectations to end 2025 with around $800 million [18][22] - The company has not repurchased any shares in Q3, with approximately $139.6 million remaining available for future repurchases [18][19] Q&A Session Summary Question: What is the ultimate operating margin target? - Management noted that gross margins were positively impacted by efficiencies and automation, with expectations for continued improvement in margins due to in-house AI technology development [24][25][27] Question: Can you elaborate on the timing issues in anatomic pathology? - Management confirmed that the decrease in revenue was due to timing issues related to collections, with improvements expected in the upcoming quarters [28][29] Question: How do new products support future growth? - Management expressed excitement about the launch of new products, particularly the ultra-rapid whole genome sequencing service, which is expected to penetrate the NICU market effectively [30][31] Question: What are the updates on FID-007 and its phase two trial? - Management expects to complete enrollment by the end of 2025 and present data at ESMO in 2026, with plans to move to phase three based on positive results [41][42][47]

Forward-Looking Statements and Market Data This presentation contains forward-looking statements, which are statements other than those of historical facts and which represent the estimates and expectations of Fulgent Genetics, Inc. (the "Company" or "Fulgent") about future events based on current views and assumptions. Examples of forward-looking statements made in this presentation include, among others, those related to long-term upside or value, management of risk, anticipated growth and positioning, ad ...

Revenue Growth - Revenue increased by $12.3 million, or 17%, from $71.7 million in Q3 2024 to $84.1 million in Q3 2025[145]. - Revenue from laboratory services reached $83.9 million in Q3 2025, up 17% from $71.7 million in Q3 2024, driven by increases in precision diagnostics, anatomic pathology, and BioPharma services[145][146]. - Precision diagnostics revenue grew by $7.2 million, or 16%, in Q3 2025 compared to Q3 2024, attributed to growth in reproductive health services[145][146][147]. - Total revenue for the nine months ended September 30, 2025, was $239.3 million, a 16% increase from $207.3 million in the same period of 2024[146]. - BioPharma services revenue surged by 83% in Q3 2025 compared to Q3 2024, reflecting the timing of service projects[145][147]. - Revenue from non-U.S. sources increased by $0.4 million, or 7%, from $6.0 million in Q3 2024 to $6.5 million in Q3 2025[152]. Profitability and Loss - Operating loss improved to $(15.4) million in Q3 2025, a 10% reduction from $(17.1) million in Q3 2024[144]. - Net loss attributable to Fulgent decreased by $8.0 million, or 55%, from $(14.6) million in Q3 2024 to $(6.6) million in Q3 2025[144]. - Gross profit increased by $8.7 million, or 33%, from $26.8 million in Q3 2024 to $35.5 million in Q3 2025, with gross margin improving from 37% to 42%[156]. Expenses - Consolidated cost of revenue increased by $3.6 million, or 8%, from $45.0 million in Q3 2024 to $48.6 million in Q3 2025, with cost of revenue as a percentage of revenue rising from 58% to 63%[153][155]. - Research and development expenses for the therapeutic development segment increased by $2.0 million, or 41%, from $4.8 million in Q3 2024 to $6.8 million in Q3 2025[161]. - Selling and marketing expenses increased by $2.5 million, or 28%, from $9.1 million in Q3 2024 to $11.6 million in Q3 2025[165]. - General and administrative expenses increased by $2.4 million, or 11%, from $21.0 million in Q3 2024 to $23.3 million in Q3 2025[167]. Cash Flow and Financial Position - Cash, cash equivalents, restricted cash, and marketable securities totaled $787.7 million as of September 30, 2025, down from $828.6 million at the end of 2024[175]. - Cash used in operating activities for the nine months ended September 30, 2025, was $23.5 million, compared to $4.0 million for the same period in 2024, primarily due to the purchase of Investment Tax Credits for $31.7 million[181]. - Cash provided by investing activities for the nine months ended September 30, 2025, was $100.2 million, mainly from $132.9 million in maturities of marketable securities and $3.8 million from the acquisition of ANP[183]. - Cash used in financing activities for the nine months ended September 30, 2025, was $14.3 million, primarily related to $10.9 million for the repurchase of common stock[185]. - As of September 30, 2025, approximately $139.6 million remained available for future repurchases of common stock under the stock repurchase program authorized in March 2022[188]. - Cash used in operating activities increased significantly due to fluctuations in cash receipts and payments, influenced by demand for tests and product mix[181]. - The company did not need to draw on any credit facilities due to a strong cash position as of September 30, 2025[187]. Future Expectations - The company expects approximately $106.7 million in refunds from the IRS related to tax credits, anticipated to be issued before the end of 2025[140]. - The company expects research and development expenses to continue increasing as clinical trials progress for FID-007, FID-022, and other preclinical studies[164]. - The company expects to incur more operating expenses in the coming quarters due to planned clinical trials for FID-007 and FID-022, impacting cash flow[181]. - The company may seek additional capital through securities offerings or collaborations, which could lead to dilution for existing stockholders[178]. - The company may incur substantial costs in pursuing future capital, including investment banking and legal fees, which could impact growth plans[179]. Revenue Concentration Risks - A single customer contributed $19.2 million, or 23%, of total revenue in Q3 2025, highlighting revenue concentration risks[149]. - The company is focusing on increasing its customer base to mitigate revenue concentration risks[149]. Tax and Interest - Interest income was $7.9 million and $24.0 million for Q3 and the nine months ended September 30, 2025, respectively[170]. - The effective tax rate was 9% and 7% for Q3 and the nine months ended September 30, 2025, compared to 21% and 14% for the same periods in 2024[171].

Financial Performance - Revenue for Q3 2025 was $84.1 million, representing a 17% year-over-year growth[5] - GAAP loss for Q3 2025 was $6.6 million, or ($0.21) per share; Non-GAAP income was $4.5 million, or $0.14 per share[6] - GAAP gross profit was $35.5 million, with a GAAP gross margin of 42.2%; Non-GAAP gross profit was $37.2 million, with a Non-GAAP gross margin of 44.3%[5] - Revenue for Q3 2025 was $84,069,000, a 17.1% increase from $71,743,000 in Q3 2024[20] - Gross profit for Q3 2025 was $35,512,000, compared to $26,771,000 in Q3 2024, resulting in a gross margin of 42.2% versus 37.3%[20][23] - Operating loss for Q3 2025 was $15,350,000, an improvement from a loss of $17,079,000 in Q3 2024[20] - Net loss attributable to Fulgent for Q3 2025 was $6,608,000, compared to $14,648,000 in Q3 2024[21] - Non-GAAP income attributable to Fulgent for Q3 2025 was $4,521,000, down from $9,438,000 in Q3 2024[21] - Non-GAAP adjusted EBITDA for Q3 2025 was $708,000, compared to $351,000 in Q3 2024[22] - Total operating expenses for Q3 2025 were $50,862,000, compared to $43,850,000 in Q3 2024[20] - Non-GAAP operating margin for Q3 2025 was -4.2%, improving from -5.8% in Q3 2024[23] Guidance and Future Expectations - Full year 2025 revenue guidance raised to $325.0 million[5] - Full year 2025 EPS guidance updated to a GAAP loss of approximately ($1.70) per share and Non-GAAP income of approximately $0.30 per share[5] - The company expects to receive approximately $106 million in tax refunds prior to December 31, 2025, which may be delayed due to the current government shutdown[7] Assets and Cash Position - Cash, cash equivalents, restricted cash, and investments in marketable securities totaled $787.7 million at the end of Q3 2025[5] - Total assets as of September 30, 2025, were $1,214.6 million, with total stockholders' equity of $1,120.8 million[19] Research and Development - The company is advancing clinical trials for FID-007 and FID-022, demonstrating progress in therapeutic development[4] - Research and development expenses for Q3 2025 were $13,860,000, up from $11,783,000 in Q3 2024[20] Business Transformation - The company aims to transform from a diagnostic business into a fully integrated precision medicine company[12] Selling and Marketing Expenses - Selling and marketing expenses for Q3 2025 increased to $11,642,000 from $9,124,000 in Q3 2024[20]

Core Insights - Fulgent Genetics, Inc. reported its third quarter 2025 financial results, showing continued growth in its laboratory services and therapeutic development businesses, with a notable focus on clinical trials for cancer treatments [2][4]. Financial Performance - Revenue for Q3 2025 was $84.1 million, representing a 17% increase year-over-year [5][6]. - The company reported a GAAP loss of $6.6 million, or ($0.21) per share, while non-GAAP income was $4.5 million, or $0.14 per share [5][6]. - Adjusted EBITDA for the quarter was $0.7 million [6]. - For the full year 2025, Fulgent raised its revenue guidance to $325.0 million [5]. Operational Highlights - The company is advancing its clinical trials, particularly with FID-007, which has shown meaningful efficacy in treating head and neck cancer patients [4]. - Fulgent has initiated phase one dosing escalation for FID-022, showcasing the capabilities of its nano delivery technology platform [4]. Outlook - Fulgent expects to close 2025 with a healthy balance sheet, projecting a GAAP loss of approximately ($1.70) per share and non-GAAP income of $0.30 per share for the year [5][7]. - The company ended Q3 2025 with $787.7 million in cash, cash equivalents, restricted cash, and investments in marketable securities [5].

Core Insights - Fulgent Genetics, Inc. announced preliminary clinical data from its ongoing phase 2 clinical trial for FID-007 in combination with cetuximab for the second-line treatment of recurrent or metastatic head and neck cancer [1] Group 1: Company Overview - Fulgent Genetics is a technology-based company with established businesses in clinical diagnostics and therapeutic development [1] Group 2: Clinical Trial Information - The preliminary data cutoff for the ongoing phase 2 clinical trial was September 25, 2025 [1]

Group 1 - Fulgent Genetics, Inc. announced preliminary clinical data from its ongoing phase 2 clinical trial for FID-007 in combination with cetuximab [1] - The trial focuses on the second-line treatment of patients with recurrent or metastatic head and neck cancer [1]

Company Overview - Fulgent Genetics, Inc. (NASDAQ: FLGT) is a leading provider of comprehensive genetic testing solutions, primarily serving healthcare providers, researchers, and individuals in the United States [1] - The company specializes in next-generation sequencing (NGS) technology, which enables advanced genetic analysis [1] Investment Analysis - The Stock Research Platform (SRP) is focused on identifying companies with strong balance sheets, sustainable growth pathways, and attractive valuations that present significant upside potential with limited downside risk [1] - The analysis reflects the author's personal opinions and is not intended as investment advice, emphasizing the importance of individual due diligence [1] Analyst Position - The analyst has a beneficial long position in the shares of FLGT, indicating confidence in the company's future performance [2]

Core Viewpoint - Fulgent Genetics reported better-than-expected Q2 2025 results, with significant revenue growth and a raised full-year revenue outlook, despite a wider GAAP loss due to a one-time impairment [1][11]. Financial Performance - Q2 2025 GAAP revenue was $81.8 million, exceeding the analyst consensus estimate of $76.2 million, representing a 15.2% year-over-year increase from $71.0 million in Q2 2024 [2]. - Non-GAAP earnings per share were $0.07, outperforming the anticipated $(0.18) loss, although this reflects a 53.3% decline from $0.15 in Q2 2024 [2]. - Non-GAAP gross margin improved to 44.2%, up from 40.1% in the prior year [2]. - Adjusted EBITDA was a loss of $3.0 million, widening from a loss of $0.7 million in the same period last year [2]. - Total liquidity was $777.5 million, supporting ongoing investments and potential share repurchases [10]. Business Segments - The Laboratory Services segment drove the majority of revenue, with core revenue reaching $81.7 million, up 16% year-over-year, primarily due to reproductive health diagnostics and strong legacy test volumes [5]. - The Therapeutic Development segment is advancing clinical trials for cancer drug candidates, with FID-007 in phase 2 and FID-022 entering phase 1, indicating long-term growth potential [7]. - The biopharma services division expanded its offerings, with revenue from anatomic pathology returning to year-over-year growth after investments in digital systems [8]. Strategic Initiatives - Significant investments in digital pathology and AI are enhancing productivity and improving turnaround times for laboratory workflows [6]. - The company is focusing on product innovation, expanding partnerships, and compliance with healthcare regulations to meet market demands [4]. Future Outlook - Management raised the FY2025 core revenue outlook to $320 million, citing strong order momentum and new client wins [11]. - The company expects a GAAP loss of approximately $(2.10) per share for FY2025, reflecting the one-time impairment, and a smaller non-GAAP loss of $(0.35) per share [11].

Core Insights - Fulgent Genetics experienced a significant stock price increase of over 8% following its second-quarter earnings release, contrasting with a nearly 2% decline in the S&P 500 index [1] Financial Performance - The company reported second-quarter revenue of nearly $82 million, representing a year-over-year increase of more than 15% [2] - Non-GAAP adjusted net income fell sharply by 56% to just over $2 million, equating to $0.07 per share [2] Analyst Expectations - Analysts had anticipated worse results, projecting an adjusted bottom-line loss of $0.18 per share on revenue of only $76 million [4] Strategic Progress - Fulgent attributed its better-than-expected results to diversification efforts, with CEO Ming Hsieh noting progress in growing revenue from laboratory services and advancing clinical trials for therapeutic development [4] Future Guidance - The company raised its revenue and adjusted bottom-line guidance for full-year 2025, now expecting "core" revenue of approximately $320 million and an adjusted net loss of $0.35 per share, surpassing analyst projections of a $0.55 net loss and revenue under $311 million [5]