Fulgent Genetics Reports Q2 Earnings Amid Revenue Growth and Billing Transition Challenges
Fulgent Genetics (NASDAQ:FLGT) reported second-quarter revenue of $85.4 million, a sequential increase of 20% driven by contributions from Bako Diagnostics and StrataDx. However, the company faced challenges during its billing system transition that reduced collections, pressured gross margins, and led to a GAAP net loss of $29.5 million for Q2. The firm revised its full-year revenue guidance downward to between $330 million–$340 million from an initial target of $350 million due to weaker collection rates, slower new-business growth, and declining revenue from a major customer shifting testing in-house. Despite these issues, Fulgent ended the quarter with $551.5 million in cash and continued progress on integration efforts, AI pathology tools, and clinical development. GAAP gross margin for Q2 was 30.1%, down due to fixed costs being spread over a lower revenue base from reduced collections. Management expects margins to normalize as collection rates return to historical levels.
Tickers: $FLGT
Topics: financial_performance operational_challenges revenue_guidance