Fulgent Genetics Q2 Revenue Misses, Guidance Slashed as Gross Margin Halves

summarizeSummary

Fulgent Genetics missed Q2 expectations, slashed full-year guidance, and reported a sharp gross margin decline. The stock, already near a 52-week low, faces further pressure as operational challenges mount.

check_boxKey Events · Earnings and Guidance · FLGT

• Q2 Revenue Misses Expectations

  Revenue of $85.4 million grew only 4% year-over-year, far below the trajectory needed to meet prior guidance. Sequential growth of 20.1% was overshadowed by the annual shortfall.

• Gross Margin Collapses to 30.1%

  GAAP gross margin fell to 30.1% from 42.1% a year ago, driven by higher costs and billing system transition issues. Non-GAAP gross margin also dropped sharply to 31.3% from 44.2%.

• Full-Year Guidance Slashed

  Management cut 2026 revenue guidance to $330–$340 million, down from prior expectations, citing processing delays from a revenue cycle management system transition. Non-GAAP loss per share is now expected to be $2.22–$2.35.

• Operating Loss Nearly Doubles

  GAAP operating loss widened to $36.1 million from $19.7 million in Q2 2025, as operating expenses grew 14% while gross profit declined 25%.

auto_awesomeAnalysis · FLGT · Industrial Applications And Services

Fulgent Genetics reported Q2 2026 revenue of $85.4 million, a 4% year-over-year increase but well below the pace needed to hit prior guidance. Gross margin collapsed to 30.1% from 42.1% a year ago, driven by higher costs and billing system transition issues. The company slashed full-year revenue guidance to $330–$340 million, implying a sharp second-half deceleration. Operating loss nearly doubled to $36.1 million. The stock is trading near its 52-week low, and these results confirm deepening operational problems. The company bought back 1.5 million shares for $23.8 million, but that did little to offset the negative earnings surprise.