Fulgent Cuts Outlook as Quarterly Loss Widens
The genetic-testing company cut the midpoint of its 2026 revenue forecast by $15 million.
Fulgent Genetics (FLGT), a genetic-testing company, reported second-quarter revenue growth as its net loss widened from both the prior quarter and a year earlier.
The results marked a divergence between sales and profitability. Revenue accelerated sequentially following the addition of Bako Diagnostics and StrataDx, while weaker margins and higher operating expenses deepened losses.
Revenue rose 4.4% from a year earlier to $85.4 million and increased 20.1% from $71.1 million in the first quarter. The GAAP net loss widened to $29.5 million, or $1.05 a share, from $19.0 million, or $0.62 a share, a year earlier. Fulgent had lost $24.8 million, or $0.80 a share, in the first quarter.
GAAP gross profit increased sequentially to $25.7 million, though gross margin held roughly flat at 30.1%. The margin was 42.1% a year earlier. Operating expenses rose to $61.8 million from $54.1 million over the same period, pushing the operating loss to $36.1 million from $19.7 million.
Bako and StrataDx, acquired in March for about $56.9 million in cash, joined Fulgent's platform during the quarter. The businesses nearly doubled its pathology sales-force headcount and added dermatopathology laboratories in Georgia and Massachusetts.
Fulgent now expects 2026 revenue of $330 million to $340 million, down from its previous forecast of about $350 million. Delays in a billing-system transition reduced collection rates. The company also expects a non-GAAP loss of $63 million to $67 million, compared with its earlier projection of about $46 million, and a loss of $2.22 to $2.35 a share versus $1.59 previously.
The company repurchased about 1.5 million shares for $23.8 million during the quarter, bringing first-half purchases to 4.1 million shares for $63.9 million. Cash, restricted cash and marketable securities declined sequentially to $551.5 million, excluding an anticipated tax refund of roughly $106 million, while Fulgent's year-end cash and investments forecast fell to about $610 million from $636 million.