Fulgent Genetics (FLGT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $71.1 million, down 3.2% year-over-year, mainly due to a major customer transitioning testing in-house.

• Acquisitions of Bako Diagnostics and StrataDX completed, contributing $2.6 million to Q1 revenue and expanding the pathology sales team and product offerings.

• Therapeutic development pipeline advanced, with FID-007 in Phase II and FID-022 in Phase I, and FID-007 showing promising preliminary efficacy and safety data.

• AI and digital pathology investments accelerated, with near 100% digital case coverage and new AI tools launched.

• Net loss attributable to shareholders widened to $24.8 million, with non-GAAP net loss at $11 million.

Financial highlights

• Q1 2026 revenue: $71.1 million (down 3.2% YoY); LTM revenue: $320.3 million (up 10% YoY).

• GAAP gross margin: 30.2%; non-GAAP gross margin: 32.3%.

• GAAP operating loss: $34.6 million; non-GAAP operating loss: $19.7 million.

• GAAP net loss: $24.8 million; non-GAAP net loss: $11 million ($0.36/share).

• Cash, equivalents, and marketable securities: $604.7 million at quarter end.

Outlook and guidance

• 2026 revenue guidance reiterated at $350 million (8–8.5% YoY growth), with Precision Diagnostics at $168 million, Anatomic Pathology at $162 million, and Biopharma Services at $20 million.

• Non-GAAP EPS guidance for 2026: $(1.59); non-GAAP gross margin guidance: ~39%, improving to ~42% by year-end.

• Year-end cash expected at $636 million, assuming $106 million tax refund is received.

• Gross margins anticipated to improve in the second half of 2026.