OraSure Core Sales Hold After Two-Quarter Slide
Second-quarter revenue of $30.6 million rose 9.7% from the prior quarter and sat above the company's guidance range.
OraSure Technologies (OSUR), a maker of point-of-need and home diagnostic tests and sample management solutions, reported second-quarter net revenues of $30.6 million, up 9.7% from the prior quarter and above its guidance range, after a 7% year-over-year decline in the first quarter and a 29% year-over-year decline in the fourth quarter of 2025.
President and CEO Carrie Eglinton Manner said the results showed continued progress on a return-to-growth trajectory. Core business revenues, which exclude COVID-19 and Risk Assessment Testing, were $30.6 million and remained largely flat year over year.
Diagnostics was the inflection. Segment revenue increased 1% year over year to $19.4 million, reversing a 5% year-over-year decline in the first quarter and a 20% year-over-year decline in the fourth quarter of 2025. The company attributed the second-quarter increase to higher syphilis revenues and the addition of BioMedomics’ Sickle SCAN sales. Sample Management Solutions revenues were $9.9 million, flat year over year after a 0.6% year-over-year decline in the first quarter and a 39% year-over-year decline in the fourth quarter of 2025. Other products and services contributed $0.5 million. COVID-19 diagnostics were $1,000 and Risk Assessment Testing was zero.
GAAP gross margin expanded to 43.5% from 42.3% in the first quarter and 41.0% in the fourth quarter of 2025. Non-GAAP gross margin was 44.2%. Gross profit was $13.3 million.
GAAP operating results swung to income of $5.4 million, or a 17.8% margin, from an operating loss of $23.3 million in the first quarter and $20.1 million in the fourth quarter of 2025. During the second quarter the company recorded a $22.6 million reduction in its contingent consideration liability after updating its submission plan to incorporate FDA feedback on the CT/NG test on the Sherlock platform. Non-GAAP operating loss was $14.7 million.
GAAP net income was $6.2 million, or $0.09 a share, versus a $22.4 million net loss in the first quarter and a $19.3 million net loss in the fourth quarter of 2025. Non-GAAP net loss was $13.8 million, or $0.20 a share. Research and development expense was $9.4 million, sales and marketing $6.6 million, and general and administrative $14.4 million.
In June the company received FDA clearance of its Colli-Pee Dx urine collection kit for use with Roche’s STI tests for Chlamydia trachomatis, Neisseria gonorrhoeae, Trichomonas vaginalis, and Mycoplasma genitalium. In July it received Emergency Use Authorization for the OraQuick Ebola 2.0 Rapid Antigen Test. It also elected to withdraw the current InteliQuick CT/NG Sherlock submission and said it plans to pursue a future submission after constructive interactions with the FDA.
Cash and cash equivalents were $161 million as of June 30, 2026, down from $177 million at March 31. The company repurchased about $2 million of common stock in the quarter, bringing total repurchases to about $22 million, or 7.7 million shares, of a $40 million authorization, which it said represented over 10% of outstanding shares.
The company is guiding third-quarter 2026 total revenues of $29.5 million to $32.5 million.