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Yahoo
02-08-2025
- Business
- Yahoo
Why Fulgent Genetics Stock Was Crushing It on Friday
Key Points The company posted an unexpected profit in its latest reported quarter. That was accompanied by a double-digit improvement in revenue. 10 stocks we like better than Fulgent Genetics › Friday's stock market was generally a gloomy place, but apparently someone forgot to tell Fulgent Genetics (NASDAQ: FLGT). The company's shares were soaring in late-session action, with a very healthy rise of more than 8%. At that point, the bellwether S&P 500 index was mired in a funk with a nearly 2% decline. Fulgent's latest earnings release was a major reason for this dichotomy. A surprise on the bottom line That morning, before market open, Fulgent unveiled its second-quarter results. The genetic testing specialist posted revenue just shy of $82 million, a figure that was more than 15% higher year over year. Non-GAAP (adjusted) net income went the opposite way with a steep (56%) decrease to slightly over $2 million ($0.07 per share). Yet the analysts tracking the stock were, as a group, expecting worse. In fact, they were modeling an adjusted bottom-line loss of $0.18 per share on revenue of only $76 million. In its earnings release, Fulgent credited diversification for the better-than-expected results. It quoted CEO Ming Hsieh as saying that throughout the first half of this year, "we made good progress in growing revenue for our laboratory services business and in advancing our clinical trials for the therapeutic development business." The kind of adjustment investors love Fulgent also raised its revenue and adjusted bottom-line guidance for full-year 2025. Management now anticipates the company will book "core" revenue -- that is, revenue minus the take from COVID testing products and services -- of roughly $320 million and an adjusted net loss of $0.35 per share. Those numbers top the average pundit projections of $0.55 for net loss and under $311 million for revenue. Do the experts think Fulgent Genetics is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Fulgent Genetics make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,036% vs. just 181% for the S&P — that is beating the market by 855.09%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fulgent Genetics. The Motley Fool has a disclosure policy. Why Fulgent Genetics Stock Was Crushing It on Friday was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
01-08-2025
- Business
- Globe and Mail
Fulgent Reports Second Quarter 2025 Financial Results
Fulgent Genetics, Inc. (NASDAQ: FLGT) ('Fulgent,' or the 'Company'), a technology-based company with a well-established laboratory services business and a therapeutic development business, today announced financial results for its second quarter ended June 30, 2025. Second Quarter 2025 Results: Total Revenue of $81.8 million Core Revenue 1 grew 16% year-over-year to $81.7 million GAAP loss of $19.0 million, or ($0.62) per share Non-GAAP income of $2.1 million, or $0.07 per share Adjusted EBITDA loss of $3.0 million Repurchased approximately 130,000 shares at a cost of $2.2 million, and a cumulative total of $110.4 million in share repurchases since the plan's inception in March 2022. Note: 1) Core Revenue is revenue calculated in accordance with GAAP minus revenue from COVID-19 testing products and services including COVID-19 NGS testing revenue, each as calculated in accordance with GAAP. Non-GAAP income (loss), non-GAAP income (loss) per share, adjusted EBITDA income (loss), non-GAAP gross profit and margin, and non-GAAP operating income (loss) and margin, are described below under 'Note Regarding Non-GAAP Financial Measures' and are reconciled to the most directly comparable GAAP financial measure, GAAP income (loss), GAAP gross profit and margin, and GAAP operating income (loss) and margin, in the accompanying tables. Ming Hsieh, Chairperson of the Board of Directors and Chief Executive Officer, said, 'In the first half of the year, we made good progress in growing revenue for our Laboratory Services business and in advancing our clinical trials for the Therapeutic Development business. I am pleased with the second quarter results and look forward to continued progress in the balance of 2025.' Paul Kim, Chief Financial Officer, said, 'We are pleased to be raising our top and non-GAAP bottom-line guidance at the halfway point of 2025, reflecting good momentum and the hard work of our employees as we continue to grow our core business. We look forward to a strong second half of the year.' Outlook: For the full year 2025, Fulgent now expects: Core Revenue of approximately $320.0 million GAAP loss of approximately ($2.10) per share Non-GAAP loss of approximately ($0.35) per share Cash, cash equivalents, restricted cash, and investments in marketable securities of approximately $770.0 million as of December 31, 2025* *Cash expenditures may be higher or lower than currently estimated due to a variety of factors and circumstances, including as a result of the Company's ongoing stock repurchase program or other expenditures outside the ordinary course of business, including M&A. Conference Call Information Fulgent will host a conference call for the investment community today at 8:30 AM ET (5:30 AM PT) to discuss its second quarter 2025 results. The call may be accessed through a live audio webcast in the Investor Relations section of the Company's website, An audio replay will be available at the same location. Note Regarding Non-GAAP Financial Measures Certain information set forth in this press release and/or to be discussed on the Company's earnings call, including non-GAAP income (loss), non-GAAP income (loss) per share, adjusted EBITDA income (loss), non-GAAP gross profit and margin, and non-GAAP operating income (loss) and margin, are non-GAAP financial measures. Fulgent believes this information is useful to investors because it provides a basis for measuring the performance of the Company's business, excluding certain income or expense items that management believes are not directly attributable to the Company's operating results. Fulgent defines non-GAAP income (loss) as net income (loss) calculated in accordance with accounting principles generally accepted in the United States of America, or GAAP, plus amortization of intangible assets, plus equity-based compensation expenses, plus impairment loss of investments, plus or minus the non-GAAP tax effect, and plus or minus other charges or gains, as identified, that management believes are not representative of the Company's operations. The non-GAAP tax effect was calculated by excluding from the GAAP provision the impact of the amortization of intangible assets, equity-based compensation expenses, and impairment loss of investments. Fulgent defines adjusted EBITDA income (loss) as GAAP income (loss) plus or minus interest (expense) income, plus or minus provisions (benefits) for income taxes, plus equity-based compensation expenses, plus insurance expense related to transferable tax credits, plus depreciation and amortization, plus impairment loss of investments, and plus or minus other charges or gains, as identified, that management believes are not representative of the Company's operations. Fulgent defines non-GAAP gross profit as gross profit calculated in accordance with GAAP plus equity-based compensation included in cost of revenue as shown in the table below. Fulgent defines non-GAAP gross margin by taking non-GAAP gross profit and dividing it by GAAP revenue. Fulgent defines non-GAAP operating profit (loss) by taking GAAP operating profit (loss) and adding equity-based compensation and amortization of intangible assets. Non-GAAP operating margin is calculated by taking non-GAAP operating profit (loss) and dividing it by GAAP revenue. Fulgent may continue to incur expenses similar to the items added to or subtracted from GAAP income (loss) to calculate non-GAAP income (loss) and adjusted EBITDA income (loss); accordingly, the exclusion of these items in the presentation of these non-GAAP financial measures should not be construed as an implication that these items are unusual, infrequent or non-recurring. Management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measure of net income (loss), gross profit and margin, and operating income (loss) and margin, in evaluating the Company's operating performance. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in conformity with GAAP, and non-GAAP financial measures as reported by Fulgent may not be comparable to similarly titled metrics reported by other companies. The Company does not provide reconciliations of forward-looking non-GAAP measures to GAAP measures, due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, particularly items related to equity-based compensation, tax effects and potential impairments, among other items, which could be material. Reconciling such items would require unreasonable efforts. Because of the inherent uncertainty associated with the Company's ability to project these future items, it is also unable to predict their probable significance. About Fulgent Fulgent is a technology-based company with a well-established laboratory services business and a therapeutic development business. Fulgent's laboratory services business includes technical laboratory and testing services and professional interpretation of laboratory results by licensed physicians. Fulgent's therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The Company aims to transform from a diagnostic business into a fully integrated precision medicine company. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements in this press release include statements about, among other things: future performance; guidance, including guidance regarding expected quarterly and annual financial results, core revenues, GAAP loss, non-GAAP loss, and cash, cash equivalents, restricted cash, and investments in marketable securities; evaluations and judgments regarding the stability of certain revenue sources, the Company's cash position and sufficiency of its resources, momentum, trajectory, vision, future opportunities and future growth of the Company's testing and laboratory services, technologies and expansion; the Company's research and development efforts, including any implications that the results of earlier clinical trials will be representative or consistent with later clinical trials, the expected timing of enrollment and regulatory filings for these trials and the availability of data or results of these trials, including any implication that interim or preliminary data will be representative of final data; the Company's identification and evaluation of opportunities and its ability to capitalize on opportunities, capture market share, or expand its presence in certain markets; and the Company's ability to continue to grow its business. Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company's future performance, and they are based on management's current assumptions, expectations, and beliefs concerning future developments and their potential effect on the Company's business. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. These risks and uncertainties include, among others: the market potential for, and the rate and degree of market adoption of, the Company's tests; its ability to maintain turnaround times and otherwise keep pace with rapidly changing technology; the Company's ability to maintain the low internal costs of its business model; the Company's ability to maintain an acceptable margin; risks related to volatility in the Company's results, which can fluctuate significantly from period to period; risks associated with the composition of the Company's customer base, which can fluctuate from period to period and can be comprised of a small number of customers that account for a significant portion of the Company's revenue; the Company's level of success in obtaining coverage and adequate reimbursement and collectability levels from third-party payors for its tests and testing services; the Company's level of success in establishing and obtaining the intended benefits from partnerships, strategic investments, joint ventures, acquisitions, or other relationships; the success of the Company's development efforts, including the Company's ability to progress its candidates through clinical trials on the timelines expected; the Company's compliance with the various evolving and complex laws and regulations applicable to its business and its industry; and the Company's ability to protect its proprietary technology and intellectual property. As a result of these risks and uncertainties, forward-looking statements should not be relied on or viewed as predictions of future events. The forward-looking statements made in this press release speak only as of the date of this press release, and the Company assumes no obligation to update publicly any such forward-looking statements to reflect actual results or to changes in expectations, except as otherwise required by law. The Company's reports filed with the U.S. Securities and Exchange Commission, or the SEC, including its annual report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 28, 2025, and the other reports it files from time to time, including subsequently filed annual, quarterly and current reports, are made available on the Company's website upon their filing with the SEC. These reports contain more information about the Company, its business and the risks affecting its business, as well as its results of operations for the periods covered by the financial results included in this press release. FULGENT GENETICS, INC. Condensed Consolidated Statement of Operations Data Three and Six Months Ended June 30, 2025, and 2024 (in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 81,803 $ 71,028 $ 155,266 $ 135,513 Cost of revenue (1) 47,368 44,537 92,485 86,918 Gross profit 34,435 26,491 62,781 48,595 Operating expenses Research and development (1) 13,480 13,486 25,875 24,920 Selling and marketing (1) 12,286 8,595 20,751 17,584 General and administrative (1) 26,392 21,326 51,683 42,815 Amortization of intangible assets 1,990 1,990 3,980 3,980 Total operating expenses 54,148 45,397 102,289 89,299 Operating loss (19,713 ) (18,906 ) (39,508 ) (40,704 ) Interest income 8,091 7,706 16,109 15,091 Interest expense (17 ) (25 ) (31 ) 224 Impairment loss (9,926 ) — (9,926 ) — Other income, net 46 11 114 2 Total other (expense) income, net (1,806 ) 7,692 6,266 15,317 Loss before income taxes (21,519 ) (11,214 ) (33,242 ) (25,387 ) Benefit from income taxes (2,263 ) (2,124 ) (2,087 ) (2,451 ) Net loss from consolidated operations (19,256 ) (9,090 ) (31,155 ) (22,936 ) Net loss attributable to noncontrolling interests 299 380 668 764 Net loss attributable to Fulgent $ (18,957 ) $ (8,710 ) $ (30,487 ) $ (22,172 ) Net loss per common share attributable to Fulgent: Basic $ (0.62 ) $ (0.29 ) $ (0.99 ) $ (0.74 ) Diluted $ (0.62 ) $ (0.29 ) $ (0.99 ) $ (0.74 ) Weighted-average common shares: Basic 30,544 30,098 30,687 29,933 Diluted 30,544 30,098 30,687 29,933 (1) Equity-based compensation expense was allocated as follows: Cost of revenue $ 1,737 $ 1,999 $ 3,517 $ 4,008 Research and development 3,339 4,136 6,813 7,980 Selling and marketing 711 1,002 1,601 2,052 General and administrative 4,252 4,498 8,658 9,113 Total equity-based compensation expense $ 10,039 $ 11,635 $ 20,589 $ 23,153 FULGENT GENETICS, INC. Non-GAAP Income (Loss) Reconciliation Three and Six Months Ended June 30, 2025, and 2024 (in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss attributable to Fulgent $ (18,957 ) $ (8,710 ) $ (30,487 ) $ (22,172 ) Amortization of intangible assets 1,990 1,990 3,980 3,980 Equity-based compensation expense 10,039 11,635 20,589 23,153 Impairment loss (1) 9,926 — 9,926 — Non-GAAP tax effect (919 ) (224 ) (763 ) (539 ) Non-GAAP income (loss) attributable to Fulgent $ 2,079 $ 4,691 $ 3,245 $ 4,422 Net loss per common share attributable to Fulgent: Diluted $ (0.62 ) $ (0.29 ) $ (0.99 ) $ (0.74 ) Non-GAAP income (loss) per common share attributable to Fulgent: Basic $ 0.07 $ 0.16 $ 0.11 $ 0.15 Diluted $ 0.07 $ 0.15 $ 0.11 $ 0.15 Weighted average common shares: Basic 30,544 30,098 30,687 29,933 Diluted 30,724 30,371 30,797 30,271 (1) Consists of a one-time, non-cash charge related to impairment of a prior investment. FULGENT GENETICS, INC. Non-GAAP Adjusted EBITDA Reconciliation Three and Six Months Ended June 30, 2025, and 2024 (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss attributable to Fulgent $ (18,957 ) $ (8,710 ) $ (30,487 ) $ (22,172 ) Interest income, net (8,074 ) (7,681 ) (16,078 ) (15,315 ) Benefit from income taxes (2,263 ) (2,124 ) (2,087 ) (2,451 ) Equity-based compensation expense 10,039 11,635 20,589 23,153 Insurance expense related to transferable tax credits 283 — 283 — Depreciation and amortization 6,054 6,153 11,973 12,816 Impairment loss 9,926 — 9,926 — Adjusted EBITDA $ (2,992 ) $ (727 ) $ (5,881 ) $ (3,969 ) FULGENT GENETICS, INC. Non-GAAP Operating Margin Three and Six Months Ended June 30, 2025, and 2024 (in thousands, except percentages) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 81,803 $ 71,028 $ 155,266 $ 135,513 Cost of revenue 47,368 44,537 92,485 86,918 Gross profit 34,435 26,491 62,781 48,595 Gross margin 42.1 % 37.3 % 40.4 % 35.9 % Equity-based compensation included in cost of revenue 1,737 1,999 3,517 4,008 Non-GAAP gross profit 36,172 28,490 66,298 52,603 Non-GAAP gross margin 44.2 % 40.1 % 42.7 % 38.8 % Operating expenses 54,148 45,397 102,289 89,299 Equity-based compensation included in operating expenses 8,302 9,636 17,072 19,145 Amortization of intangible assets 1,990 1,990 3,980 3,980 Non-GAAP operating expenses 43,856 33,771 81,237 66,174 Non-GAAP operating loss $ (7,684 ) $ (5,281 ) $ (14,939 ) $ (13,571 ) Non-GAAP operating margin -9.4 % -7.4 % -9.6 % -10.0 %
Yahoo
21-04-2025
- Business
- Yahoo
Fulgent Genetics Inc (FLGT) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amid ...
Full Year Core Revenue: $281.2 million, a growth of 7% compared to 2023. Fourth Quarter Revenue: $76.2 million, up from $70.5 million in Q4 2023. GAAP Loss for 2024: $42.7 million or $1.41 per share. Non-GAAP Income for 2024: $15 million or $0.49 per share. Fourth Quarter GAAP Gross Margin: 41.8%. Fourth Quarter Non-GAAP Gross Margin: 44.2%. Fourth Quarter Adjusted EBITDA: $774,000. Fourth Quarter Non-GAAP Income: $1.2 million or $0.04 per share. Cash and Equivalents: $828.6 million at year-end. 2025 Core Revenue Guidance: Approximately $310 million, representing 10% growth year-over-year. 2025 Expected Non-GAAP Gross Margin: Slightly exceed 40%. 2025 Expected Non-GAAP Operating Margin: Approximately minus 15%. 2025 Expected GAAP EPS: Loss of approximately $1.95 per share. 2025 Expected Non-GAAP Loss: $0.65 per share. 2025 Expected Cash Position: Approximately $780 million. Warning! GuruFocus has detected 3 Warning Signs with FLGT. Release Date: February 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Fulgent Genetics Inc (NASDAQ:FLGT) reported a 14% year-over-year growth in the fourth quarter and slightly exceeded their annual core revenue guidance of $280 million. The company has shown growth in its laboratory service business and has good momentum going into 2025. Fulgent Genetics Inc (NASDAQ:FLGT) has made significant advancements in therapeutic development, including the initiation of Phase 2 clinical trials for FID-007 and the clearance of an investigational new drug application for FID-022. The company has launched new products, such as the exome and genome RISE, which could potentially increase diagnostic yield by as much as 30%. Fulgent Genetics Inc (NASDAQ:FLGT) has formed a new partnership with Foundation Medicine, which is expected to enhance their precision diagnostics offerings. The company reported a GAAP loss of $42.7 million for 2024, translating to a loss of $1.41 per share. Fulgent Genetics Inc (NASDAQ:FLGT) expects a non-GAAP operating margin of approximately minus 15% for 2025 as they continue to invest in business growth. The company's biopharma services, while showing growth, still experience large swings quarter-to-quarter, indicating variability and potential instability. Fulgent Genetics Inc (NASDAQ:FLGT) anticipates a cash burn of approximately $25 million for their therapeutics development business in 2025. The company has not included potential revenue from new partnerships, such as with Foundation Medicine, in their 2025 guidance, indicating uncertainty in realizing these opportunities. Q: What are the key milestones for FID-007, and do you see head and neck cancer as the biggest opportunity? A: Ming Hsieh, CEO, explained that the clinical trial for FID-007 is expected to enroll 46 patients, with costs around $10 million. Preliminary results are promising, and further data will be presented at the ASCO meeting. While head and neck cancer is a significant opportunity, they are also exploring other indications. Q: Was there any one-time event contributing to the 14% year-over-year growth in Q4, and why is there a slowdown expected in 2025? A: Brandon Perthuis, CCO, clarified that the growth was due to market share gains rather than one-time events. The expected slowdown in Q1 2025 is due to seasonality, such as healthcare benefits resetting and adverse weather events, not macro issues. Q: Can you elaborate on the revised plan that led to 9% sequential growth in anatomic pathology? A: Brandon Perthuis, CCO, stated that the revised plan focused on targeting the dermatopathology market due to national issues with turnaround times. Their team delivered faster results, capturing significant market share. They plan to continue scaling the sales team to maintain momentum. Q: With the strong Q4 performance, is there potential upside to the 2025 guidance, especially with new wins like VA and Foundation Medicine? A: Brandon Perthuis, CCO, mentioned that while the guidance is based on clear visibility, new partnerships like Foundation Medicine are not yet fully baked into the numbers. There is potential upside as these partnerships develop and contribute to revenue. Q: How should we think about the cash utilization for clinical trials and pharma efforts in 2025? A: Ming Hsieh, CEO, indicated that the expected cash burn for the therapeutics development business is around $25 million for 2025. They are efficiently using funds to develop critical drugs, with promising results expected to be published at ASCO. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
