Bionano Genomics Reports Mixed Earnings Call with Revenue Challenges Amid Strategic Shifts

Bionano Genomics' Q1 earnings call highlights a mixed sentiment with cost management and strategic shifts improving gross margin and operating expenses, but revenue and flowcell sales decline. The company achieved a 46% gross margin, a 66% decrease in GAAP operating expenses, and expanded its OGM system installed base to 379 units. However, total revenue decreased by 26% and flowcell sales declined by 15%. Bionano is focusing on existing users and reported 95 academic and clinical publications. Global trade uncertainties impacted business operations.

Bionano Genomics (NASDAQ: BNGO) reported its first-quarter 2025 financial results, revealing a mixed performance with notable improvements in gross margin and operating expenses, but a decline in revenue and flowcell sales. The company reported total revenue of $6.5 million, a 26% decrease from the previous year's $8.8 million. Despite this revenue decline, Bionano achieved a 46% gross margin, up from 32% in the same period last year. This improvement was driven by strategic shifts and operational efficiencies, including a focus on routine users of optical genome mapping (OGM) systems [1].

Operating expenses decreased significantly by 66% to $11.4 million, primarily through headcount reductions and portfolio restructuring. The installed base of OGM systems grew to 379 units, a 9% increase year-over-year, with 9 new installations in Q1. The company also raised additional capital through a $10 million Registered Direct Offering and $3.2 million in ATM sales, bolstering its cash position to $29.2 million [1].

Bionano's strategic pivot toward routine users of OGM technology is showing early traction. While total flowcell sales decreased by 15% year-over-year, sales to existing customers actually increased by 1% when adjusting for new customer acquisition. Notably, 82% of flowcells sold went to routine users, suggesting a stable core customer base. The company expects to install 15-20 new OGM systems and project full-year 2025 revenue of $26.0-30.0 million [1].

The company's OGM technology continues to gain scientific credibility through multiple peer-reviewed publications in Q1 2025. Highlighting the technology's clinical utility, several studies demonstrated its accuracy and cost-effectiveness in diagnosing various genetic disorders and hematologic malignancies. These publications collectively strengthen OGM's value proposition in cytogenomics, particularly for hematological malignancies [1].

Bionano's Q1 2025 results reflect a company in transition, with some encouraging signs amid challenges. Revenue declined by 26% year-over-year, primarily due to the discontinuation of clinical services and lower instrument sales. However, the company's improved cash burn rate, gross margin expansion, and focus on high-value customers present a more sustainable operational model. The ongoing revenue challenges suggest that the transformation remains a work in progress, but the growing body of research supports the technology's clinical utility.

The company will host a conference call today, May 14, 2025, at 4:30 PM ET to discuss its Q1 2025 results in more detail. Investors and financial professionals are encouraged to participate and gain further insights into Bionano's strategic shifts and future prospects.

References:
[1] https://www.stocktitan.net/news/BNGO/bionano-reports-first-quarter-2025-results-and-highlights-recent-qz75nzggwy2n.html