Fulgent Genetics (FLGT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $85.4 million, up 4% year-over-year and 20% sequentially, driven by acquisitions (Bako, StrataDx) and growth in anatomic pathology and BioPharma services, partially offset by declines in precision diagnostics due to a major customer internalizing testing.

• Therapeutic pipeline advanced with positive Phase 2 data for FID-007 and ongoing development of FID-022, leveraging proprietary technology platforms.

• AI and digital pathology innovations expanded, including new platforms for biomarker quantification and efficiency improvements.

• Operational challenges from the transition to a new billing and revenue cycle management system led to lower collection rates, delayed revenue recognition, and margin pressure.

• Net loss attributable to shareholders was $29.5 million ($1.05 per share GAAP; $0.58 per share non-GAAP), with adjusted EBITDA loss of $17.1 million.

Financial highlights

• GAAP gross margin was 30.1% (down from 42% prior year), non-GAAP gross margin 31.3% for Q2; gross profit was $25.7 million.

• GAAP operating expenses were $61.8 million, up from $56.1 million in Q1, including a $2.2 million impairment charge.

• Cash, equivalents, and marketable securities totaled $551.5 million at quarter end.

• Repurchased 4.1 million shares for $63.9 million in H1 2026; $75.8 million remains authorized for future repurchases.

• Interest income for the quarter was $6.4 million.

Outlook and guidance

• Full-year 2026 revenue guidance revised to $330–$340 million, reflecting lower collection rates and customer transition impacts.

• Non-GAAP EPS loss forecasted at $2.22–$2.35 per share for 2026.

• Projected year-end cash, cash equivalents, and investments of $610 million, assuming receipt of $106.1 million in tax refunds.

• R&D expenses expected to rise as clinical trials for FID-007 and FID-022 progress.

• Focus remains on expanding the customer base, integrating acquisitions, and resolving billing system issues to improve collections and margins.