BillionToOne 2025 Q3 Earnings Swings to Profit as Net Income Surges 138.3%

BillionToOne (NASDAQ:BLLN) reported Q3 2025 earnings marked by a dramatic turnaround, with revenue surging 117% to $83.5 million and net income reaching $5.71 million—its highest in two years. While GAAP EPS of $0.10 fell short of the $0.16 consensus, revenue exceeded estimates by $0.6 million. The company raised full-year 2025 revenue guidance to $293–299 million and reaffirmed expectations of positive operating income for Q4 and the full year.

Revenue

Prenatal testing was the primary revenue driver, contributing $74.07 million, while oncology services added $8.69 million, and clinical trial support services accounted for $761,000. The prenatal segment saw 102% year-over-year growth, outpacing oncology’s 664% surge, which reflected strategic expansion in liquid biopsy offerings. Total test volumes rose 52%, driven by increased adoption of the UNITY prenatal test and oncology assays.

Earnings/Net Income

BillionToOne returned to profitability with EPS of $0.14 in Q3 2025, reversing a $1.47 loss in Q3 2024. Net income reached $5.71 million, a 138.3% improvement from a $14.9 million net loss. The turnaround reflects gross margin expansion to 70% and disciplined cost management, despite a higher proportion of lower-margin oncology revenue. The EPS performance underscores the company’s operational efficiency and pricing power.

Post-Earnings Price Action Review

Following the earnings release, BLLN shares edged up 1.67% in the latest trading day, 0.91% for the week, and 3.67% month-to-date. The stock’s post-earnings trajectory aligns with its broader 3.67% monthly gain, reflecting investor confidence in the company’s profitability shift. However, the $0.10 EPS miss by $0.22 tempered short-term momentum, while robust revenue growth and guidance upgrades reinforced long-term optimism. Analysts at JPMorgan and BTIG highlighted the stock’s potential, with price targets ranging from $110 to $160, though recent volatility suggests mixed sentiment ahead of Q4 results.

CEO Commentary

CEO Ozan Atay emphasized a 51% year-over-year test growth and 117% revenue increase, attributing success to geographic expansion and health system partnerships. The 70% gross margin, achieved despite oncology’s lower-margin impact, highlights the scalability of the SMNGS platform. Strategic priorities include Epic EMR integration to boost prenatal adoption and sales team expansion. Atay reiterated confidence in the $100B U.S. market opportunity and the company’s path to S&P 500 inclusion.

Guidance

BillionToOne projects full-year 2025 revenue of $293–299 million (92–96% growth) and Q4 revenue of $84–90 million (86–100% growth). The company anticipates positive GAAP operating income for both periods, with gross margins stabilizing in the high 60s to low 70s. Atay emphasized disciplined capital allocation and NorthStar Response expansion in 2026, underscoring a focus on sustainable growth.

Additional News

1. Board Expansion: BillionToOne appointed Anthony Pagano, Genmab’s CFO, to its board effective January 1, 2026, strengthening financial expertise amid its public market debut.

2. Analyst Coverage: JPMorgan lowered its price target to $145 from $150 but maintained an “overweight” rating, while Wells Fargo and William Blair initiated coverage with “equal weight” and “outperform” ratings, respectively.

3. Strategic Expansion: The company opened a second 90,000-square-foot lab in Union City, CA, to support growing demand for prenatal and oncology tests, complementing its Menlo Park facility.

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BillionToOne’s Q3 performance underscores its transition from a high-growth innovator to a profit-generating leader in molecular diagnostics. With a robust revenue model, expanding margins, and strategic partnerships, the company appears well-positioned to capitalize on its $100B market opportunity while navigating competitive and regulatory challenges.