OraSure Technologies, Inc.

Total revenue in Q2 was $30.6 million, up 9.7% sequentially and above guidance. Diagnostic products revenue was $19.4 million, up 14.7% sequentially, and Sample Management Solutions revenue was $9.9 million, up 9% sequentially. GAAP gross margin was 43.5%, up 120 basis points sequentially from 42.3%, and non-GAAP gross margin was 44.2% versus 43.4% in Q1. GAAP operating income was $5.4 million, non-GAAP operating loss was $14.7 million, operating cash flow was negative $9.9 million, and the company ended with $161 million of cash and cash equivalents and zero debt. For Q3, management guided revenue to $29.5 million to $32.5 million and said gross margin should be similar to Q2.

Carrie Eglinton Manner framed Q2 as another step in OraSure’s multiyear transformation, emphasizing that the company is moving from restructuring to execution against a more focused growth strategy. She highlighted FDA clearance for Colli-Pee, EUA for OraQuick Ebola 2.0, strengthening international diagnostics, and sequential improvement in sample management solutions. Her tone was confident overall, but candid about disappointment that IntelliQ CT/NG will not clear in 2026 after the submission was withdrawn and resubmission work begins.

Kenneth McGrath said Q2 gross margin expanded to 43.5% GAAP and 44.2% non-GAAP, driven by lower scrap and operational efficiencies, partly offset by revenue mix. He noted Q2 operating expenses included R&D of $9.4 million, sales and marketing of $6.6 million, and G&A of $14.4 million, with G&A expected to normalize in Q3 as nonrecurring activism-related costs wind down. He also said cash was $161 million with zero debt, the company repurchased 647 thousand shares for $2 million in the quarter, and buybacks were paused to preserve balance sheet flexibility for launch-related investment.

The main analyst focus was the IntelliQ CT/NG delay: when resubmission and approval could happen, and whether the delay would change costs or cash flow. Management said they will resubmit after incorporating FDA feedback, but did not give timing; they stressed the delay does not change the 2026 growth outlook or the path to operating cash flow breakeven entering 2027. Kenneth added that any incremental spending would be offset by reduced milestone payments, and that the delay would not incrementally increase overall cash flow from operations usage. The analyst also asked about sample management demand, and Carrie said advanced genetic testing labs are showing a fairly consistent recovery, alongside some improvement in microbiome collection.