Fulgent Genetics Reports $71.1 Million Revenue in Q1 2026, Acquires Bako Diagnostics

Fulgent Genetics, Inc. reported a revenue of $71.1 million for the first quarter of 2026, a decrease of 3% from $73.5 million in the same period of the previous year. The decline was primarily attributed to a $3.9 million drop in precision diagnostics revenue, driven by a significant customer transitioning to in-house testing. The company’s gross profit also fell by 24% to $21.5 million, resulting in a gross margin of 30%, down from 39% in the prior year. Operating expenses increased by 17% to $56.1 million, leading to an operating loss of $34.6 million, compared to a loss of $19.8 million in the first quarter of 2025.

In terms of strategic developments, Fulgent completed the acquisition of Bako Diagnostics on March 17, 2026, for approximately $55.7 million. This acquisition is expected to enhance Fulgent's laboratory services by adding new products and expanding its client base. The financial results from Bako were only partially included in the first quarter results, reflecting about two weeks of operations. The company also reported an increase in research and development expenses, which rose by 14% to $14.2 million, as it continues to invest in its therapeutic development segment.

Fulgent's customer base remains concentrated, with one laboratory customer accounting for 15% of total revenue in the first quarter of 2026, down from 24% in the previous year. The company is focusing on diversifying its customer base to mitigate risks associated with revenue concentration. Additionally, the company reported a net loss attributable to Fulgent of $24.8 million, or $(0.80) per share, compared to a net loss of $11.5 million, or $(0.37) per share, in the prior year.

Operationally, Fulgent's cash and cash equivalents decreased to $23.4 million as of March 31, 2026, down from $50.3 million at the end of 2025. The company generated $7.1 million in cash from operating activities during the first quarter, a significant improvement from the $4.4 million used in the same period last year. However, cash used in financing activities increased to $44.8 million, primarily due to stock repurchases totaling $40.1 million.

Looking ahead, Fulgent anticipates that the integration of Bako will positively impact its financial performance in subsequent quarters. The company aims to enhance its laboratory services and expand its market presence while continuing to invest in research and development for its therapeutic candidates. Despite the challenges faced in the first quarter, Fulgent remains focused on improving profitability and operational efficiency.