Fulgent Genetics(FLGT) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Second Quarter 2025 Financial Highlights Fulgent's Q2 2025 core revenue grew 16% to $81.7 million, with a GAAP net loss of $19.0 million and $777.5 million in cash and investments | Metric | Q2 2025 (Millions) | YoY Change | | :-------------------------------- | :------------------ | :--------- | | Core Revenue | $81.7 | +16% | | Total Revenue | $81.8 | - | | GAAP Gross Profit | $34.4 | - | | GAAP Gross Margin | 42.1% | - | | Non-GAAP Gross Profit | $36.2 | - | | Non-GAAP Gross Margin | 44.2% | - | | GAAP Net Loss | ($19.0) | - | | GAAP EPS | ($0.62) | - | | Non-GAAP Income | $2.1 | - | | Non-GAAP EPS | $0.07 | - | | Adjusted EBITDA Loss | ($3.0) | - | | Cash, Cash Equivalents, Restricted Cash, and Investments in Marketable Securities (End of Q2) | $777.5 | - | - Approximately 130,000 shares were repurchased for $2.2 million in Q2 2025, bringing the cumulative repurchase total to $110.4 million since the program's March 2022 inception[7] Management Commentary CEO Ming Hsieh noted strong progress in laboratory services and therapeutic development, with CFO Paul Kim raising full-year 2025 guidance - Significant progress was made in laboratory services revenue growth and clinical trial advancements within the therapeutic development business[6] - Revenue and non-GAAP net income guidance were raised mid-year 2025, reflecting positive momentum and employee efforts in core business growth[6] Full Year 2025 Outlook Fulgent's 2025 outlook projects core revenue of $320 million, GAAP loss per share of ($2.10), and $770 million in cash and investments | Metric | Full Year 2025 Guidance (Approximate) | | :-------------------------------------------------------------------------------- | :----------------------------------- | | Core Revenue | $320.0 million | | GAAP Loss per Share | ($2.10) | | Non-GAAP Loss per Share | ($0.35) | | Cash, Cash Equivalents, Restricted Cash, and Investments in Marketable Securities (as of Dec 31, 2025) | $770.0 million | Company Overview About Fulgent Fulgent is a technology-driven company with established laboratory services and therapeutic development, aiming for precision medicine integration - Fulgent operates established laboratory services and therapeutic development businesses[13] - The therapeutic development business focuses on developing drug candidates for various cancers using novel nano-encapsulation and targeted therapeutic platforms[13] - The company aims to transition from a diagnostics business to a fully integrated precision medicine company[13] Financial Statements Condensed Consolidated Balance Sheet Data Fulgent's total assets were $1,199.8 million as of June 30, 2025, with cash and equivalents at $87.9 million and marketable securities at $689.5 million | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $87,880 | $55,144 | +$32,736 | | Investments in marketable securities | $689,518 | $773,313 | -$83,795 | | Accounts receivable, net | $77,190 | $69,021 | +$8,169 | | Property, plant, and equipment, net | $110,223 | $105,549 | +$4,674 | | Other assets | $235,027 | $216,937 | +$18,090 | | Total assets | $1,199,838 | $1,219,964 | -$20,126 | | Accounts payable, accrued liabilities and other liabilities | $88,202 | $90,805 | -$2,603 | | Total stockholders' equity | $1,111,636 | $1,129,159 | -$17,523 | | Total liabilities & equity | $1,199,838 | $1,219,964 | -$20,126 | Condensed Consolidated Statement of Operations Data Q2 2025 revenue increased to $81.8 million, with gross profit at $34.4 million (42.1% margin), and net loss attributable to Fulgent at ($19.0) million | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Revenue | $81,803 | $71,028 | +15.2% | | Cost of revenue | $47,368 | $44,537 | +6.4% | | Gross profit | $34,435 | $26,491 | +29.9% | | Gross margin | 42.1% | 37.3% | +4.8 pp | | Total operating expenses | $54,148 | $45,397 | +19.3% | | Operating loss | ($19,713) | ($18,906) | +4.3% | | Impairment loss | ($9,926) | — | N/A | | Net loss attributable to Fulgent | ($18,957) | ($8,710) | +117.6% | | Basic Net loss per common share | ($0.62) | ($0.29) | +113.8% | | Metric (in thousands, except per share) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Revenue | $155,266 | $135,513 | +14.6% | | Cost of revenue | $92,485 | $86,918 | +6.4% | | Gross profit | $62,781 | $48,595 | +29.2% | | Gross margin | 40.4% | 35.9% | +4.5 pp | | Total operating expenses | $102,289 | $89,299 | +14.5% | | Operating loss | ($39,508) | ($40,704) | -2.9% | | Impairment loss | ($9,926) | — | N/A | | Net loss attributable to Fulgent | ($30,487) | ($22,172) | +37.5% | | Basic Net loss per common share | ($0.99) | ($0.74) | +33.8% | Non-GAAP Reconciliations Non-GAAP Income (Loss) Reconciliation Q2 2025 non-GAAP income was $2.1 million ($0.07 per share), down from $4.7 million in Q2 2024, adjusted for amortization, equity compensation, and impairment | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Net loss attributable to Fulgent (GAAP) | ($18,957) | ($8,710) | +117.6% | | Amortization of intangible assets | $1,990 | $1,990 | 0% | | Equity-based compensation expense | $10,039 | $11,635 | -13.7% | | Impairment loss | $9,926 | — | N/A | | Non-GAAP tax effect | ($919) | ($224) | +310.3% | | Non-GAAP income (loss) attributable to Fulgent | $2,079 | $4,691 | -55.7% | | Non-GAAP income (loss) per common share (Basic) | $0.07 | $0.16 | -56.3% | | Metric (in thousands, except per share) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :-------------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Net loss attributable to Fulgent (GAAP) | ($30,487) | ($22,172) | +37.5% | | Amortization of intangible assets | $3,980 | $3,980 | 0% | | Equity-based compensation expense | $20,589 | $23,153 | -11.1% | | Impairment loss | $9,926 | — | N/A | | Non-GAAP tax effect | ($763) | ($539) | +41.6% | | Non-GAAP income (loss) attributable to Fulgent | $3,245 | $4,422 | -26.6% | | Non-GAAP income (loss) per common share (Basic) | $0.11 | $0.15 | -26.7% | Non-GAAP Adjusted EBITDA Reconciliation Fulgent's Q2 2025 adjusted EBITDA loss was ($3.0) million, a significant increase from ($0.7) million in Q2 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | | Adjusted EBITDA | ($2,992) | ($727) | +311.6% | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | | Adjusted EBITDA | ($5,881) | ($3,969) | +48.2% | Non-GAAP Operating Margin Q2 2025 non-GAAP gross profit was $36.2 million (44.2% margin), with a non-GAAP operating loss of ($7.7) million and -9.4% margin | Metric (in thousands, except percentages) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :---------------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Non-GAAP gross profit | $36,172 | $28,490 | +27.0% | | Non-GAAP gross margin | 44.2% | 40.1% | +4.1 pp | | Non-GAAP operating loss | ($7,684) | ($5,281) | +45.5% | | Non-GAAP operating margin | -9.4% | -7.4% | -2.0 pp | | Metric (in thousands, except percentages) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :---------------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Non-GAAP gross profit | $66,298 | $52,603 | +26.0% | | Non-GAAP gross margin | 42.7% | 38.8% | +3.9 pp | | Non-GAAP operating loss | ($14,939) | ($13,571) | +10.1% | | Non-GAAP operating margin | -9.6% | -10.0% | +0.4 pp | Additional Information Note Regarding Non-GAAP Financial Measures This section defines Fulgent's non-GAAP financial measures, explaining their use to clarify business performance by excluding non-core items, and noting limitations - Non-GAAP financial measures (income/loss, EPS, Adjusted EBITDA, gross profit/margin, operating income/loss/margin) are utilized to assess business performance by excluding items not directly attributable to operating results[10] - Non-GAAP income (loss) is calculated by adjusting GAAP net income (loss) for amortization of intangible assets, equity-based compensation, impairment loss on investments, non-GAAP tax effects, and other expenses or benefits management deems unrepresentative of company operations[10] - The company does not provide a reconciliation of forward-looking non-GAAP measures to GAAP due to the inability to predict the amount and timing of certain items outside its control, particularly those related to equity-based compensation, tax effects, and potential impairments[12] Forward-Looking Statements Forward-looking statements are based on management assumptions and expectations, subject to risks that could cause actual results to differ materially - Forward-looking statements pertain to future events or circumstances, based on management's current assumptions, expectations, and beliefs regarding future developments and their potential impact on the company's business[14][15] - These statements are subject to various risks and uncertainties, including market potential for the company's tests, technological changes, reimbursement levels, success of development efforts, and regulatory compliance, which could cause actual results to differ materially from those described or implied in forward-looking statements[15][16] - The company undertakes no obligation to publicly update any such forward-looking statements to reflect actual results or changes in expectations, except as required by law[17] Conference Call Information & Investor Relations Fulgent held a Q2 2025 earnings call on August 1, 2025, accessible via webcast, with investor inquiries directed to Lauren Sloane - The Q2 2025 earnings conference call was held on August 1, 2025, at 8:30 AM ET, accessible via live audio webcast on the company's investor relations website[9] - Investor relations contact: Lauren Sloane of The Blueshirt Group[19]