Fulgent Genetics (FLGT) Q4 2025 earnings summary

Executive summary

• Achieved full-year 2025 revenue of $322.7 million, up 14% year-over-year, with Q4 revenue at $83.3 million, a 9% increase year-over-year.

• Laboratory services, especially precision diagnostics and anatomic pathology, were key revenue drivers, supported by investments in AI and digital pathology.

• Therapeutic pipeline advanced: FID-007 completed Phase II enrollment and FID-022 progressed through Phase I.

• Announced acquisition of Bako Diagnostics and StrataDx for $55.5–$56 million, expected to close in March 2026, expanding anatomic pathology services.

• Proprietary technology and AI/ML analytics enabled rapid test development and operational efficiency.

Financial highlights

• Q4 2025 gross margin was 41% non-GAAP and 39.1% GAAP; full-year gross margin was 42.7% non-GAAP and 40.6% GAAP.

• Q4 GAAP loss was $23.4 million; adjusted EBITDA loss was $4.5 million.

• Full-year non-GAAP income was $13.2 million, or $0.42 per share; Q4 non-GAAP EPS was $0.16.

• Ended 2025 with $705.5 million in cash, cash equivalents, restricted cash, and marketable securities.

• Operating cash flow was $(102) million, impacted by a delayed $106 million federal tax refund.

Outlook and guidance

• 2026 revenue guidance is $350 million, up 8–8.5% year-over-year, with Bako and StrataDx expected to contribute $50–$56 million.

• Non-GAAP EPS guidance for 2026 is a loss of $1.45 per share.

• Anticipated 2026 year-end cash position of $685 million, assuming receipt of delayed $106 million tax refund and factoring in acquisitions.

• Non-GAAP gross margins expected slightly above 40% for 2026, with lower margins in H1 due to revenue mix.

• Non-GAAP operating margin projected to decrease to between -8% and -18% for 2026.