OraSure (OSUR) Q2 Revenue Falls 43%

Core Insights - OraSure Technologies reported Q2 2025 GAAP revenue of $31.2 million, slightly exceeding Wall Street's estimate of $30.36 million, but reflecting a 43% decline from the previous year [1][2] - Non-GAAP EPS was $(0.19), an improvement over the consensus estimate of $(0.21), but still indicative of ongoing financial pressures as the company transitions from pandemic-driven revenue peaks [1][2] Financial Performance - GAAP revenue decreased by 43% year-over-year from $54.3 million in Q2 2024 [2] - Core business revenue was $30.8 million, down 5% from $32.3 million in Q2 2024 [2] - Gross margin (Non-GAAP) was 43.2%, down from 47.4% in the prior year [2] - Operating loss (Non-GAAP) was $(13.2) million, compared to a profit of $3.3 million a year ago [2][7] Business Overview - OraSure Technologies specializes in rapid diagnostic tests and sample collection devices, including the OraQuick® In-Home HIV test and tools for consumer genomics [3] - The company is focusing on innovation and expanding its diagnostic platform, particularly in molecular diagnostics for sexually transmitted infections [4] Operational Developments - The company experienced a significant decline in overall revenue due to the end of COVID-19-related sales, which fell to near zero [5] - Revenue from the core diagnostics portfolio increased by 3% to $19.2 million, while sample management solutions fell by 22% to $9.9 million [6] Strategic Initiatives - OraSure is investing in new product development and clinical trials, with R&D expenses up 73% compared to the prior year [7] - The company initiated a $40 million share repurchase plan, spending $5 million to buy back 1.8 million shares [8] Cash and Liquidity - At the end of the quarter, the company had $234.6 million in cash and equivalents, but reported negative operating cash flow of $30 million for the first half of 2025 [9] - Management emphasized prudent capital allocation to maintain investment in key growth programs [9] Future Outlook - Management projects GAAP sales in the range of $27 million to $30 million for the upcoming quarters, with no expected revenue bounce from COVID-19 testing [11] - The end of the CDC's Together Take Me Home HIV testing initiative is anticipated to impact future revenue negatively [12]