23andMe Reports 37% Revenue Decline and $23.8 Million Net Loss in Latest Quarter

23andMe Holding Co. reported a significant decline in financial performance for the three months ending June 30, 2025, as detailed in its latest 10-Q filing. The company generated total revenue of $25.4 million, a decrease of 37% from $40.4 million in the same period last year. This decline was primarily driven by a 41% drop in service revenue, which fell to $20.6 million from $34.7 million, largely due to reduced sales of its Personal Genome Service (PGS) kits. Product revenue also decreased by 16%, totaling $4.8 million compared to $5.7 million in the prior year.

In terms of profitability, 23andMe reported a net loss of $23.8 million, a notable improvement from a net loss of $69.4 million in the previous year, reflecting a 66% reduction in losses. The company attributed this improvement to a significant reduction in operating expenses, which decreased by 43% to $44.2 million from $77.9 million. This reduction was driven by cuts in research and development, sales and marketing, and general and administrative expenses, as the company continues to streamline operations amid ongoing restructuring efforts following its Chapter 11 bankruptcy filing in March 2025.

Strategically, 23andMe has undergone significant changes, including the sale of substantially all its assets to the 23andMe Research Institute for $305 million in cash, completed on July 14, 2025. This transaction effectively removed the PGS and research services from its operations, leaving the company focused on its telehealth business through Lemonaid Health. The company plans to wind down its remaining operations, with expectations of ceasing to exist following the distribution of remaining assets.

Operationally, the company reported a customer base of approximately 14 million PGS customers as of June 30, 2025, a slight decrease from 14.4 million in March 2025. The number of consenting customers, who allow their data to be used for research, remained high at over 80%. The company also noted a decrease in telehealth service revenue, which accounted for 22% of total revenue, up from 17% in the previous year, indicating a shift in focus towards telehealth services.

Looking ahead, 23andMe's outlook remains uncertain as it navigates the complexities of its Chapter 11 proceedings and the wind-down of its operations. The company has indicated that it does not expect to engage in any revenue-generating activities beyond its telehealth services. The realization of its assets and the settlement of liabilities are subject to the outcomes of the ongoing bankruptcy process, which may lead to further adjustments in its financial statements.