Release Date: August 01, 2025

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

  • Fulgent Genetics Inc (NASDAQ:FLGT) reported a 16% year-over-year increase in core revenue, reaching $81.7 million.

  • The company launched a new whole genome sequencing service with enhanced features, improving accuracy and variant calling.

  • Fulgent Genetics Inc (NASDAQ:FLGT) received a CE mark for its Fulgen exome and Fulgen Pipeline Manager, expanding its market reach in Europe.

  • The company executed over 20 new managed care agreements, adding over 35 million new covered lives to its in-network contracts.

  • Fulgent Genetics Inc (NASDAQ:FLGT) increased its annual revenue guidance for 2025, reflecting strong business performance and growth expectations.

  • The company’s GAAP loss for the quarter was $19 million, including a one-time non-cash charge related to a $9.9 million impairment.

  • Operating expenses increased due to higher R&D spending and expanded sales and marketing costs.

  • The revenue from COVID-19 testing was negligible, indicating a decline in this segment.

  • Despite the positive revenue growth, the adjusted EBITDA loss for the second quarter was approximately $3 million.

  • The company anticipates a GAAP EPS loss of $2.10 per share for the full year 2025, reflecting ongoing financial challenges.

Q: Can you elaborate on the $10 million increase in full-year guidance and the factors contributing to the $7 million increase in precision diagnostics? A: (Brandon Perthhews, Chief Commercial Officer) The $7 million improvement in precision diagnostics is partly due to our strong relationship with the VA, which is expanding. Although the revenue from our partnership with Foundation Medicine was not material this quarter, we anticipate growth in this area. Overall, the precision diagnostics business performed well across various areas, including hereditary cancer and expanded carrier screening.

Q: Regarding the strong performance in anatomic pathology (AP), were there any one-time events, and what should we expect for the second half of the year? A: (Brandon Perthhews, Chief Commercial Officer) There were no one-time events; the growth in AP is organic, driven by improved sales leadership and an expanded sales team. We expect continued growth, although there might be some seasonality in the second half of the year.

Q: Can you provide more details on the gross margin improvement and any one-time adjustments? A: (Paul Kim, Chief Financial Officer) The gross margin improvement was partly due to a one-time accounting adjustment, but also reflects the strength and efficiency of our laboratory services business. About half of the increase was due to the one-time adjustment.

Story Continues

Q: How are you planning to capitalize on the American Academy of Pediatrics’ endorsement of exome and genome sequencing? A: (Brandon Perthhews, Chief Commercial Officer) We see growing momentum for exome and genome sequencing as frontline tests. We plan to expand our sales team to target pediatric markets, focusing on children’s hospitals and academic medical centers. Our new whole genome service with RNA integration is showing improved diagnostic yields, which we believe will drive further growth.

Q: What are the expectations for the enrollment and readout timelines for the FID07 clinical trial? A: (Ming Shy, Chief Executive Officer) We expect to accelerate enrollment in the second half of 2025 by broadening the patient pool. The readout is anticipated in 2026, and we are optimistic about the positive signs in the head and neck cancer treatment area.

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

This article first appeared on GuruFocus.