OraSure Technologies (OSUR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 45% year-over-year to $29.9 million, mainly due to a 98% drop in COVID-19 diagnostics and business exits, while core revenue and diagnostics showed resilience and customer preference for differentiated products.

• Progress made on innovation roadmap, including Sherlock Biosciences integration, new product milestones, and operational efficiencies.

• Manufacturing insourcing for SMS products to Pennsylvania is ahead of schedule, expected to be substantially complete by end of Q2.

• Board authorized a $40 million stock repurchase program to deliver shareholder value, to be executed over two years.

• Renewed agreements with key customers, including Myriad Genetics and Fulgent Genetics, reinforcing product reliability and loyalty.

Financial highlights

• Q1 total revenue was $29.9M; core revenue (excluding COVID-19 and exited businesses) was $29.5M, down 2% year-over-year; Diagnostics revenue grew 8% to $17.7M, SMS revenue declined 16% to $9.1M.

• GAAP gross margin was 41.1% (down from 44.5%); non-GAAP gross margin was 41.7% (down from 45.2%).

• GAAP operating loss was $17.8M (up from $7.1M); non-GAAP operating loss was $15.3M (vs. $0.3M prior year); net loss was $16.0M.

• Cash and equivalents were $248M at quarter end; operating cash flow was negative $19.7M, reflecting innovation investments and seasonal outflows.

• Working capital stood at $288.4M at quarter-end.

Outlook and guidance

• Q2 2025 total revenue guidance: $28.5M–$32.5M; core revenue: $28M–$32M; COVID-19 and Risk Assessment testing projected at ~$0.5M.

• Q2 guidance assumes continued disruption from a major consumer genomics customer and ongoing funding uncertainty in testing programs and research budgets.

• Gross margin expected to be flat to slightly up in Q2, with expansion in the second half of 2025 driven by volume growth and operating efficiencies.

• Q2 core operating expenses expected in the low $20M range, plus $10M in innovation investments (including $7–$8M for Sherlock).

• Cash reserves expected to fund operations and capital needs for at least the next twelve months.