Fulgent Genetics, Inc.

Revenue in Q2 2026 was $85.4 million, compared with $71.1 million in Q1 2026; Brandon said this was up 4% year over year and 20% sequentially. Precision Diagnostics was $41.5 million, down 13% year over year but up 3% sequentially; Anatomic Pathology was $37.5 million, up 33% year over year and 50% sequentially; BioPharma Services was $6.4 million, up 3% year over year and 11% sequentially. GAAP gross margin was 30.1% and non-GAAP gross margin was 31.3%; GAAP operating margin was minus 42.3% and non-GAAP operating margin was minus 26.2%; GAAP loss was $29.5 million, or $1.05 per share, and non-GAAP loss was approximately $16.2 million, or $0.58 per share. For 2026, management now expects total revenue of $330 million to $340 million, non-GAAP gross margin in the mid-30% range, non-GAAP operating margin in the mid-minus 20% range, and non-GAAP EPS loss of $2.22 to $2.35 per share.

Ming Hsieh emphasized momentum in the therapeutic development business, especially FID-007, which showed encouraging Phase II activity in recurrent or metastatic head and neck squamous cell carcinoma and is headed to an FDA end-of-Phase II meeting later this summer. He also highlighted FID-022 progressing into Phase I dose escalation and framed both programs as built on Fulgent’s proprietary CleanChemo platform. On the lab side, he acknowledged that the billing and revenue cycle management transition is creating revenue recognition and collection issues, but said fixing that operational problem is the top priority.

Paul Kim said Q2 revenue of $85.4 million included $16.9 million from Bako Diagnostics and StrataDX, while gross margin compression was driven by fixed costs over a lower revenue base because of the lower collection rate. He detailed Q2 GAAP operating expenses of $61.8 million, non-GAAP operating expenses of $49.2 million, a GAAP loss of $29.5 million, non-GAAP loss of about $16.2 million, and adjusted EBITDA loss of about $17.1 million. He also noted cash and equivalents, restricted cash, and marketable securities of about $551.5 million, with the quarter-over-quarter decline driven by $23.8 million of buybacks, a $13.5 million legal settlement payment, and $14.1 million of cash used in operations and CapEx; he said the company still expects about $610 million of year-end cash assuming $12 million of CapEx and $26 million of therapeutic development spend.

Analysts focused on the revenue cycle management transition, asking what specifically was broken in the final phase, how long it will take to fix, and whether delayed collections are recoverable. Brandon said the issue was that certain features and customizations from the prior billing system did not carry over, and management expects to get back to historical collection rates in the coming quarters. On the large carrier screening customer moving in-house, management said the transition is nearly complete, with only a small amount of revenue still expected in the back half of the year.