Fulgent Genetics 2025 Q2 Earnings Revenue Surges 15.2% as Losses Widen

Fulgent Genetics (FLGT) reported its fiscal 2025 Q2 earnings on Aug 01st, 2025. Fulgent Genetics exceeded revenue expectations with a 15.2% increase to $81.80 million, while the net income results fell short. The company raised its revenue guidance for 2025 from $310 million to $320 million, indicating positive expectations for the rest of the year. However, the earnings per share guidance was adjusted to reflect a greater loss, aligning with current challenges.

Revenue

The total revenue of Fulgent Genetics increased by 15.2% to $81.80 million in 2025 Q2, up from $71.03 million in 2024 Q2.

Earnings/Net Income

Fulgent Genetics's losses deepened to $0.62 per share in 2025 Q2 from a loss of $0.29 per share in 2024 Q2 (113.8% wider loss). Meanwhile, the company's net loss widened to $-19.26 million in 2025 Q2, representing a 111.8% increase from the $-9.09 million loss recorded in 2024 Q2. The widened loss reflects ongoing financial challenges.

Price Action

The stock price of Fulgent Genetics has dropped 3.74% during the latest trading day, has edged up 0.87% during the most recent full trading week, and has dropped 6.93% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Fulgent Genetics (FLGT) shares following a quarter-over-quarter revenue increase proved significantly underperforming. Holding the stock for 30 days post-earnings resulted in a -65.00% return, starkly contrasting with a benchmark return of 44.59%. This discrepancy led to an excess return of -109.58%, with a compound annual growth rate (CAGR) of -30.33%. The strategy did not account for a maximum drawdown, indicating that shares were retained during the market's lowest points, exacerbating losses. This highlights a critical need for refined investment timing and risk assessment strategies.

CEO Commentary

Ming Hsieh, Chairman & CEO, expressed satisfaction with Fulgent Genetics' second-quarter results, noting "sequential and year-over-year growth in laboratory services." He highlighted the ongoing progress in their therapeutic development pipeline, specifically mentioning that their first clinical candidate, FID-007, is advancing through a Phase II trial. Hsieh emphasized the importance of addressing patient needs, stating, "These drug candidates address heavily pretreated patients with very few options left." He conveyed optimism about the company's financial position and strategic execution, affirming, "We look forward to further progress in the second half of 2025."

Guidance

Fulgent Genetics raised its revenue outlook for 2025 from $310 million to $320 million, indicating a growth of 14% year-over-year. The company anticipates non-GAAP gross margins to slightly exceed 40% for the full year and expects non-GAAP operating margins to improve from -15% to -13%. The revised non-GAAP EPS guidance is projected to be a loss of $0.35 per share, while GAAP EPS guidance is adjusted to a loss of $2.10 per share. The company expects to end 2025 with approximately $770 million in cash and equivalents.

Additional News

Fulgent Genetics (FLGT) has recently made significant strides in its business operations. The company announced a strategic partnership with Foundation Medicine to launch new germline tests in the U.S., enhancing its diagnostic offerings for hereditary cancers. Additionally, Fulgent achieved CE certification under the EU's In Vitro Diagnostic Regulation for its germline sequencing system, potentially expanding its market reach in Europe. Furthermore, Fulgent continues to maintain a strong cash position, evidenced by substantial share repurchases, signaling confidence in its financial strategy and long-term growth prospects. These developments highlight Fulgent's commitment to expanding its footprint in precision medicine and diagnostics.