23andMe Holding Co.

Revenue was $44 million, down approximately 12% year over year. Gross profit was $22 million, up 3% year over year. Net loss was $59 million versus $75 million a year ago, and adjusted EBITDA loss was $33 million versus $45 million a year ago. Operating expenses were $84 million, compared with $101 million in the prior-year quarter. Cash and cash equivalents were $127 million at quarter end, down from $216 million as of March 31, 2024. Management did not provide next-quarter or full-year revenue/EPS guidance, but said the restructuring is expected to cut annualized costs by at least $35 million and create about $12 million of one-time costs.

Anne Wojcicki framed the quarter around regaining compliance, becoming more sustainable, and sharpening the business toward subscriptions and the database opportunity. She said the company reconstituted the board, completed the reverse split, and is now focused on either shutting down or out-licensing therapeutics while cutting costs. Her tone was defensive but forward-looking, emphasizing recurring revenue, customer subscriptions, and the value of 23andMe’s genetics platform for pharma and clinical trials.

Joe Selsavage said the quarter showed progress toward a cash flow positive consumer business, with gross profit up 3% and losses narrowing. He attributed the revenue decline to lower PGS kit sales, telehealth orders, and research services after the GSK exclusive discovery term ended, while membership revenue helped offset the weakness. He highlighted operating expense reduction to $84 million, cash of $127 million, the going concern disclosure, and said the restructuring should produce at least $35 million in annualized savings, offset by about $12 million in severance and transition costs.

In Q&A, investors asked about the plan for recovery, the reverse stock split, profitability, and 2025 goals. Management said the recovery plan is built around regaining compliance, reducing costs, deprioritizing therapeutics, growing subscriptions, and expanding the database business and pharma collaboration opportunities. On profitability, Joe emphasized recurring subscription revenue, research partnerships, and lower costs from headcount reductions and the pause in therapeutic assets. Anne said 2025 priorities are subscription growth, database products for industry use, and out-licensing therapeutic programs.