Fulgent Genetics Reports 14% Revenue Growth to $73.5 Million in Q1 2025

Fulgent Genetics, Inc. reported a revenue increase of 14% for the first quarter of 2025, reaching $73.5 million compared to $64.5 million in the same period of 2024. The growth was primarily driven by a $6.7 million increase in precision diagnostics, a $2.2 million rise in anatomic pathology, and a $1.4 million boost in BioPharma services. However, this was partially offset by a $1.3 million decline in COVID-19 testing revenue. The company's gross profit also saw a significant increase, rising 28% to $28.3 million, with gross margins improving from 34% to 39% due to optimized cost structures.

Operating expenses for the quarter increased by 10% to $48.1 million, influenced by higher general and administrative costs, which rose by 18% to $25.3 million. Research and development expenses also increased by 8% to $12.4 million, reflecting ongoing investments in therapeutic development. Despite the rise in expenses, Fulgent reported an operating loss of $19.8 million, an improvement from the $21.8 million loss recorded in the prior year. The net loss attributable to Fulgent was $11.5 million, or $(0.37) per share, compared to a net loss of $13.5 million, or $(0.45) per share, in the previous year.

In terms of operational metrics, Fulgent's cash and cash equivalents increased to $67.3 million as of March 31, 2025, up from $55.1 million at the end of 2024. The company also reported a total of $770.5 million in marketable securities, reflecting a strategic focus on maintaining liquidity. The total assets decreased slightly to $1.21 billion from $1.22 billion at the end of 2024, while total liabilities fell to $83.0 million from $90.8 million, indicating improved financial health.

Fulgent continues to focus on expanding its laboratory services and therapeutic development segments. The company is actively investing in clinical trials for its drug candidates, FID-007 and FID-022, which are expected to drive future growth. The company has also initiated a stock repurchase program, repurchasing 0.5 million shares at a cost of $7.9 million during the quarter, with approximately $141.8 million remaining available for future repurchases.

Looking ahead, Fulgent anticipates continued revenue growth driven by its precision diagnostics and anatomic pathology services, while also managing costs to improve profitability. The company remains committed to advancing its therapeutic development initiatives, although it acknowledges potential delays due to external factors, including regulatory timelines. Overall, Fulgent's strategic focus on expanding its service offerings and maintaining financial flexibility positions it for future growth in a competitive market.