Fulgent Genetics reported a mixed fourth quarter with revenue growth driven by its laboratory services business, while facing a GAAP net loss. The company highlighted strategic investments in AI and digital pathology, alongside progress in its therapeutic development pipeline. Management anticipates challenges in 2026 due to a major customer bringing work in-house, but expects acquisitions and strategic initiatives to mitigate this impact.
Revenue grew 9% year-over-year to $83.3 million in Q4 2025.
positiveFull year 2025 revenue grew 14% year-over-year to $322.7 million.
positiveNon-GAAP income was $5.2 million, or $0.16 per share, in Q4 2025, an improvement from $1.163 million in Q4 2024.
positiveNon-GAAP gross margin improved to 41.0% in Q4 2025 from 39.1% in Q4 2024.
positiveReported a GAAP net loss of $23.4 million, or ($0.76) per share, in Q4 2025, compared to a loss of $5.888 million, or ($0.19) per share, in Q4 2024.
negativeAdjusted EBITDA was a loss of $4.5 million in Q4 2025, compared to a positive $0.774 million in Q4 2024.
negativeFull year 2025 Adjusted EBITDA was a loss of $9.4 million, compared to a loss of $2.8 million in 2024.
negativeNon-GAAP operating margin was -10.7% in Q4 2025, a significant deterioration from -4.9% in Q4 2024.
negativeFull year 2026 revenue guidance of approximately $350.0 million is expected to be impacted by a largest customer moving significant volume in-house.
attentionFull year 2026 Non-GAAP loss per share guidance of approximately ($1.45) indicates continued profitability challenges.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Progress made in 2025 on strategic and product innovation roadmap.
Laboratory services business sustained momentum, benefiting from investments in AI and digital pathology.
Accelerated progress on therapeutic development pipeline for clinical candidates.
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