23andMe (ME) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue rose 35% year-over-year to $60.3M, mainly from a $19.3M GSK data license; net loss narrowed to $53.0M from $278.0M, with a 40% workforce reduction and closure of the Therapeutics segment.

• Gross margin improved to 66% from 45% year-over-year, reflecting a higher research services mix.

• Substantial doubt exists about the ability to continue as a going concern due to ongoing losses and low cash reserves; additional capital is needed.

• Settlement of a $30M class action related to a 2023 cyber incident was preliminarily approved, with $19.8M in related net expenses recognized YTD.

• Appointed three independent directors to restore Nasdaq compliance.

Financial highlights

• Q3 FY2025 revenue: $60.3M (+35% YoY); Consumer Services revenue: $39.6M (down 8% YoY); nine months: $144.7M (-7% YoY).

• Net loss Q3: $53.0M (vs. $278.0M prior year); net loss from continuing operations: $26.8M (vs. $259.7M prior year).

• Adjusted EBITDA loss: $13.0M in Q3, improved from $32.5M loss prior year.

• Cash and equivalents: $79.4M at Dec 31, 2024, down from $216.5M at Mar 31, 2024.

• No debt on balance sheet as of Dec 31, 2024.

Outlook and guidance

• Substantial doubt remains about ability to continue as a going concern for the next 12 months without new funding.

• Management is pursuing additional capital, further cost reductions, and lease terminations.

• Strategic alternatives, including sale or business combination, are being explored.

• No formal revenue or earnings guidance provided.