23andMe (ME) Q1 2026 earnings summary

Executive summary

• Filed for Chapter 11 bankruptcy on March 23, 2025; sold substantially all assets to TTAM Research Institute for $305M, closing July 14, 2025.

• Direct-to-consumer genetic testing and research services businesses ceased; only telehealth (Lemonaid Health) operations remain, with plans to sell and wind down.

• All outstanding DIP financing repaid and ATM equity program terminated post-transaction.

• Substantial doubt exists about ability to continue as a going concern due to asset sale and bankruptcy wind-down.

Financial highlights

• Q1 FY26 revenue fell 37% year-over-year to $25.4M, driven by a $15.2M drop in PGS kit sales.

• Gross profit decreased 34% to $13.5M; gross margin improved to 53% from 51% year-over-year.

• Net loss from continuing operations improved to $23.8M from $55.0M year-over-year.

• Adjusted EBITDA from continuing operations was $(10.7)M, a 55% improvement year-over-year.

• Operating expenses down 43% year-over-year, reflecting workforce reductions and cost controls.

Outlook and guidance

• No revenue-generating activities expected beyond Lemonaid Health; company plans to sell Lemonaid and fully wind down.

• Distribution of asset sale proceeds to stakeholders pending outcome of Chapter 11 proceedings.