Fulgent Genetics, Inc. (NASDAQ: FLGT) reported fourth‑quarter revenue of $83.3 million, slightly below the consensus estimate of $85.4 million, and a non‑GAAP earnings per share of $0.16, a beat of $0.13 over the $0.03 estimate. Full‑year 2025 revenue totaled $322.7 million, up 14 % year‑over‑year, and the company posted a full‑year non‑GAAP EPS of $0.42, a significant improvement over the prior year’s loss. Cash and equivalents at year‑end 2025 were $705.5 million, excluding an anticipated tax refund of $106.3 million, and the company remains well‑capitalized for future initiatives.
The fourth‑quarter revenue miss was driven by the loss of the company’s largest customer, which shifted a substantial portion of its testing volume in‑house. This customer accounted for roughly 22 % of 2025 revenue, creating a sharp decline in the laboratory services segment. Despite the revenue shortfall, Fulgent’s EPS beat was largely attributable to disciplined cost management and a favorable mix shift toward higher‑margin specialty testing, which helped offset the revenue decline and maintain a non‑GAAP gross margin of 41 % in Q4, down from 44.2 % in the prior year’s quarter.
Full‑year results reflected continued momentum in the laboratory services business, with revenue growth driven by new client acquisitions and expansion of existing contracts. The therapeutic development pipeline also progressed, with FID‑007 advancing through Phase II and FID‑022 entering Phase I, adding future growth potential. The company’s margin profile improved, with a full‑year non‑GAAP gross margin rising to 41 % from 38 % in 2024, reflecting better pricing power and scale. The strong EPS performance underscores effective execution across both core and pipeline segments.
Management guided for 2026 revenue of approximately $350 million and a non‑GAAP loss of about ($1.45) per share, citing the impact of the largest customer’s volume shift. Cash expenditures are expected to vary due to the $250 million share repurchase program, the anticipated acquisition of Bako and StrataDx for $55.5 million, and therapeutic development spending of roughly $26 million. The company’s cash position remains robust, with $139.6 million of the repurchase program still available as of December 31 2025, providing flexibility to navigate near‑term headwinds while pursuing growth initiatives.
Investors reacted negatively to the earnings release, citing the concentration risk posed by the loss of the largest customer and the resulting revenue visibility concerns. The market’s focus on these headwinds highlights the importance of diversifying the client base and the need for continued investment in AI‑driven pathology solutions to sustain long‑term growth.
"I am pleased with the progress we made in 2025 as we delivered on our strategic and product innovation roadmap. The laboratory services business sustained momentum..." – Ming Hsieh, Chairman and CEO
"With the addition of Bako and StrataDx, we will be able to broaden our capabilities in the pathology testing market and further leverage our investments in AI to improve efficiency and quality, which will drive continued momentum in our laboratory services business." – Ming Hsieh, Chairman and CEO
"As we look to 2026, our revenue guidance reflects the impact of our largest customer moving a significant volume of its work in-house, but we believe the strategic initiatives we have made coupled with potential contribution from the acquisition of Bako and Strata Dx will help partially or fully offset this impact in the second half of the year. We have a strong cash position, and believe we are well positioned for longer term growth." – Paul Kim, Chief Financial Officer
"The anticipated spend for the therapeutic development business is approximately $26 million in 2026 as we continue advancing clinical trials for FID‑002 and FID‑007. We will continue to invest in business expansion, further improving our laboratory operations and upgrading laboratory facilities. We believe that our foundational technology platform supports a strong long‑term margin." – Paul Kim, Chief Financial Officer
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